THE RELATIONSHIP BETWEEN HR PRACTICES AND FIRM PERFORMANCE: EXAMINING CAUSAL ORDER

ALLEN, MATHEW R.; WRIGHT, PATRICK M.; GARDNER, TIMOTHY M.; MOYNIHAN, LISA M.

doi:10.1111/j.1744-6570.2005.00487.x

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THE RELATIONSHIP BETWEEN HR PRACTICES AND FIRM PERFORMANCE: EXAMINING CAUSAL ORDER

Author(s): PATRICK M. WRIGHT , TIMOTHY M. GARDNER , LISA M. MOYNIHAN , MATHEW R. ALLEN

Publication date Created: June 2005

Publication date (Print): June 2005

Journal: Personnel Psychology

Publisher: Wiley-Blackwell

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Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: a meta-analysis.

K Harter, Alexander F. Schmidt, Mark T. Hayes (2002)

Based on 7,939 business units in 36 companies, this study used meta-analysis to examine the relationship at the business-unit level between employee satisfaction-engagement and the business-unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents. Generalizable relationships large enough to have substantial practical value were found between unit-level employee satisfaction-engagement and these business-unit outcomes. One implication is that changes in management practices that increase employee satisfaction may increase business-unit outcomes, including profit.