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Dolan, Simon L.
Mach, Mercè
Sierra Olivera, Vicenta
Year of Publication: 
[Journal:] Management Revue [ISSN:] 1861-9916 [Volume:] 16 [Year:] 2005 [Issue:] 2 [Pages:] 272-290
The objective in this study was to examine whether a firm's economic/financial success can be associated with the application of certain HRM policies, practices and strategies. In this empirical study, an extended rationale borrowed from a configurational conceptual model was used in order to examine the multiple linkages and architecture between certain HR policies and practices, HR Department characteristics as well as some organizational characteristics, and the overall economic/financial performance of the firm. Employing a series of ANOVAs and classification and regression tree analyses, results show that HRM policies and practices play an important role in predicting the economic/financial success of the firm in the intermediate range. In relative terms and within the tree architectural structure, the HR variables explain significant variance, more than HR Department or organizational characteristics. Controlling for size and economic sector, results show that the HR function within certain configurations plays an important strategic and operational role in adding value to the firm's bottom line; in contrast, when some HR policies and practices are absent or poorly implemented, the detrimental consequences to the firm's economic/financial performance can be observed.
firm performance
configurational analysis
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