Friday, March 1, 2013

Proposal

The impact of HR practices on the
performance of line of credit units
Patrick M. Wright, Cornell University
timothy M. Gardner, Brigham Young University
Lisa M. Moynihan, London Business School
Human Resource attention Journal, Vol 13 No 3, 2003, pages 21-36
This article examines the impact of HR practices and organisational commitment
on the operating performance and pro?tability of business units. Using a predictive
design with a sample of 50 autonomous business units within the same corporation,
the article reveals that both organisational commitment and HR practices are
significantly related to operational measures of performance, as well as operating
expenses and pre-tax pro?ts.
Contact: Patrick M. Wright, Department of Human Resource Studies, School
of industrial and Labor Relations, Cornell University, Ithaca, NY 14853-3901.
Email: pmw6@cornell.edu

irms ease up increasingly recognised the authorisation for their people to be a source of
competitive service (Pfeffer, 1994). Creating competitive advantage through with(predicate)
people requires careful attention to the practices that topper leverage these assets.
This change in the mindset of executive decision-makers has spurred an increasing
ashes of academic research attempting to reveal a relationship mingled with a ?rms HR
practices and its performance.

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Much of this research has demonstrated statistically significant relationships
between measures of HR practices and firm profitability (Delery and Doty, 1996;
Guthrie, 2001; Huselid, 1995). slice these studies have been useful for demonstrating
the potential value created through HR practices, they have revealed very little
regarding the processes through which this value is created (Wright and Gardner,
2002). Some authors have referred to this as the black box problem, noting that the
conceptual development of the mediating mechanisms through which HRM has an
impact on pro?tability has thus far eluded data-based testing (eg Purcell et al, 2003).
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