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Individual Human Resources Practices Affecting Firm Performance PowerPoint Presentation
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Individual Human Resources Practices Affecting Firm Performance - PowerPoint PPT Presentation


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Individual Human Resources Practices Affecting Firm Performance. HR Practices. Positive Performance Effects. Compensation. Productivity (lagged), growth. Broad-based stock options. Performance relative to industry (P), sales and customer satisfaction (in upscale markets).

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slide1

Individual Human Resources Practices

Affecting Firm Performance

HR Practices

Positive Performance Effects

Compensation

Productivity (lagged), growth

Broad-based stock options

Performance relative to industry (P), sales and customer satisfaction (in upscale markets)

Incentive-based compensation

Profit sharing

ROA, ROE, shareholder returns, survival

Diversity

Minority hiring during downturns

Shareholder returns

Employment

Countercyclical hiring

Shareholder returns

Downsizing (employment and assets)

ROA

Early retirement programs

Shareholder returns (with good returns prior to announcement)

Employment security

ROA

Human resource outsourcing

Financial performance (P), innovation (P)

slide2

Individual Human Resources Practices

Affecting Firm Performance

HR Practices

Positive Performance Effects

Industrial Relations

Shareholder returns

Decertification elections (union retained)

Productivity

Positive labor relations (unionism)

Strikes (11-29 days)

Shareholder returns

Internal Labor Market

Internal career opportunities

ROA (prospectors), ROE (prospectors)

Motivation

Decentralized decision making

Operational outcomes (P)

Open-book management

Numerous reports of goals obtained (A)

Participative decision making

ROA (defenders), ROE (defenders)

High-performance work teams

Quality, labor productivity

Reduced status differentials

High-performance firm adoptions (A)

slide3

Individual Human Resources Practices

Affecting Firm Performance

HR Practices

Positive Performance Effects

Performance Management

Results-oriented appraisals

ROA

Staffing

Cognitive tests

Profit, sales growth, overall performance

Selectivity

Performance relative to industry (P)

Succession of “outsider” CEOs

ROA (with low firm diversification)

Structured interviews

Profit, profit growth

Profit, profit growth, overall performance

Validation studies

Profit, overall performance

WABs and BIBs

Sales growth

Yield analysis of recruiting sources

Training

Training

Performance relative to industry (P), productivity

challenges of a diverse workplace
Challenges of a Diverse Workplace
  • Impact on Work Groups
    • More creativity and innovation
    • Less Cohesion
    • Potential increase in conflict
  • Impact on the individual employee
    • Bias in evaluation
    • More difficulty in developing and maintaining professional relationships
    • Less satisfaction with the job
    • Higher rates of turnover