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CEP discussion paper
Do Organisational Climate and Strategic Orientation Moderate the Relationship Between Human Resource Management Practices and Productivity?
Andrew Neal, M Patterson and M West March 2004
Paper No' CEPDP0624:
Full Paper (pdf)

JEL Classification: M11; M12; J5; J24

Tags: human resource management; organisational structure; organisational climate; productivity

Contingency formulations of Human Resource Management (HRM) theory suggest that the effectiveness of HRM practices should vary across firms. This study examined whether the relationship between HRM practices and productivity in manufacturing companies is contingent upon organizational climate and strategic orientation. Information on HRM, organizational structure, and competitive strategy was collected by interviewing senior managers, whilst organizational climate was assessed via employee surveys. Although organizational climate and HRM practices were both positively associated with subsequent productivity, the relationship between HRM practices and subsequent productivity was stronger for firms with a poor climate.