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Do organizational climate and competitive strategy moderate the relationship between Human Resource Management and productivity?

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<mark>Journal publication date</mark>2005
<mark>Journal</mark>Journal of Management
Issue number4
Volume31
Number of pages21
Pages (from-to)492-512
<mark>State</mark>Published
<mark>Original language</mark>English

Abstract

This study examined whether the effectiveness of human resource management (HRM) practices is contingent on organizational climate and competitive strategy. The concepts of internal and external fit suggest that the positive relationship between HRM and subsequent productivity will be stronger for firms with a positive organizational climate and for firms using differentiation strategies. Resource allocation theories of motivation, on the other hand, predict that the relationship between HRM and productivity will be stronger for firms with a poor climate because employees working in these firms should have the greatest amount of spare capacity. The results supported the resource allocation argument.