HRM and Firm Productivity: Does Industry Matter?

Recent years have witnessed burgeoning interest in the degree to which human resource systems contribute to organizational effectiveness. We argue that extant research has not fully considered important contextual conditions which moderate the efficacy of these practices. Specifically, we invoke a contingency perspective in proposing that industry characteristics affect the relative importance and value of high performance work practices (HPWPs). We test this proposition on a sample of non-diversified manufacturing firms. After controlling for the influence of a number of other factors, study findings support the argument that industry characteristics moderate the influence of HPWPs on firm productivity. Specifically, the impact of a system of HPWPs on firm productivity is significantly influenced by the industry conditions of capital intensity, growth and differentiation.

Labor-Management Cooperation

[Excerpt] In analyzing labor-management cooperation, it is important to be clear on what it is not. It is not an absence of strikes or conflict. Cooperation is not synonymous with industrial peace. Cooperation may take place even when bargaining leads to work stoppages; conversely, the mere absence of strikes is no evidence that there is labor-management cooperation. In the current period, there is a tendency to equate concessionary bargaining with labor-management cooperation. Demand for and acceptance of "givebacks" reflect economic pressures and relative bargaining strength and ought not to be interpreted as evidence of a cooperative relationship.