The glue that binds : workplace climate, human resource systems and performance

There is now a substantial body of research examining the relationship between human resources (HR) and organisational performance. During the last decade, this research has focused on the impacts of ‘bundles’ of HR practices. While researchers have consistently found a significant relationship between HR systems and performance, the mechanisms that give rise to this relationship remain poorly conceptualised. Building on the work of Barney (1998), Ferris et al. (1998) and Bowen and Ostroff (2004) we suggest the social context in which such practices are implemented provide the basis for specifying these transmission mechanisms. Workplace climate provides a key social context that induces high levels of effort and dynamic efficiency. Using a large sample we find workplace climate significantly influences the relationship between HR systems and performance.<br />