Online from: 1988
|Title:||The effects of human resource management on small firms' productivity and employees' wages|
|Author(s):||de Grip A, Sieben I|
|Journal:||Applied Economics, 20 May 2005, Volume: 37 Issue: 9 pp.1047-1054 (8 pages)|
|Keywords:||Netherlands, Performance Related Pay, Pharmaceutical Industry, Productivity, Remuneration, Retail Trade, Small To Medium-sized Enterprises|
|Article type:||Research paper|
|Reference:||34AP910 (Permanent URL)|
Design/methodology/approach - takes the productivity of pharmacies (number of prescriptions supplied) among 549 pharmacies in the Netherlands in November 2001. Looks at the incidence of high-performing assistants, their pay, company recruitment policy, training levels, incidence of performance related pay, technical systems and firm characteristics, for example. Analyses using seemingly unrelated regression equations (SURE) methodology.
Findings - that productivity is related to computer skills, but pay is related to pharmaceutical skills, which do not improve productivity. Notes that performance evaluation interviews lead to better pay but not to better performance, while paying new recruits more, or taking on temporary staff, do not improve performance either. Adds that older and more experienced staff are paid more, but do not add to productivity.
Research limitations/implications - calls for more research into human resources in small- to medium-sized enterprises. Does not suggest any solutions (Anglo-Saxon or otherwise).
Originality/value - presents a system of rewards that bears a negative relationship to productivity, being driven by standard employment and pay conditions, when employers do not understand productivity drivers.