Next Generation SHRM Research: From Covariation to Causation

[Excerpt] In response to the longstanding and repeated criticisms that HR does not add value to organizations, the past 10 years has seen a burgeoning of research attempting to demonstrate that progressive HR practices result in higher organizational performance. Huselid’s (1995)groundbreaking study demonstrated that a set of HR practices he referred to as High Performance Work Systems (HPWS) were related to accounting profits and market value of firms. Since then, a number of studies have shown similar positive relationships between HR practices and various measures of firm performance. While the studies comprising what I refer to as “first generation SHRM research” have added to what is becoming a more convincing body of evidence of the positive relationship between HR and performance, this body tends to lack sufficient data to demonstrate that the relationship is actually causal in the sense that HR practices, when instituted, lead to higher performance. This next generation of SHRM research will begin (and, in fact has begun) to focus on designing more rigorous tests of the hypothesis that employing progressive HRM systems actually results in higher organizational performance. This generation of research will focus on two aspects: demonstrating the HRM value chain, and proving causality as opposed to merely covariation.

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.

100 Years of U.S. Consumer Spending: Data for the Nation, New York City, and Boston

[From Preface] The Consumer Expenditure Survey is among the oldest publications of the Bureau of Labor Statistics. With information on the expenditures, incomes, and demographic characteristics of households, the survey documents the spending patterns and economic status of American families. This report offers a new approach to the use of Consumer Expenditure Survey data. Normally, the survey presents an indepth look at American households at a specific point in time, the reference period being a calendar year. Here, the authors use consumer expenditure data longitudinally and draw on information from decennial census reports to present a 100-year history of significant changes in consumer spending, economic status, and family demographics in the country as a whole, as well as in New York City and Boston.

Martha Smith

[Excerpt] Martha Smith said goodbye to her long withstanding career as Associate Director of ILR’s Office of Career Services. Smith earned a B.S. in Business Administration from California State University, Hayward in 1969. In 1976, she came to Ithaca when her husband was a Ph.D. student at Cornell, and in 1978 Smith became a temporary assistant to Professor Larry Williams. Shortly after, Smith was offered a permanent position in the Office of Career Services where she advised and befriended students for over 26 years. After retiring, Smith plans to devote more time to her community and her church. When reflecting upon her career of assisting and nurturing in the development of ILR students, Smith said, "They come in as caterpillars; they evolve, and then they leave as butterflies. They have to learn to be students, it isn’t always easy Martha Smith but they always manage. As they open up we all learn that we are more alike than we are different and together we learn to appreciate the likenesses and the differences."