Human resource management systems and organizational performance: an analysis of the Spanish manufacturing industry

Abstract

This study analyses the relationship between human resource management systems and firm performance, using the Miles and Snow’s typology (1984). The hypotheses set forth to this respect are tested in a sample of 120 firms belonging to the Spanish manufacturing industry. The results obtained indicate that a ‘make’, or internal, human resource system exercises a positive effect on employee turnover and overall firm performance. However, the compensation practices associated with this system produce a negative effect on the firm’s productivity. Moreover, the hypothesis that the influence of human resource systems on firm performance is contingent on organizational strategy receives limited support.

Keywords:

• Human resource systems
• organizational strategy
• firm performance
• Spanish manufacturing industry