Online from: 1988
|Title:||Financial performance and the long-term link with HR practices, work climate and job stress|
|Author(s):||Van Veldhoven M|
|Journal:||Human Resource Management Journal, 2005, Volume: 15 Issue: 4 pp.30-53 (24 pages)|
|Keywords:||Career Development, Financial Performance, Financial Services, Human Resource Management, Job Security, Leadership, Netherlands, Stress|
|Article type:||Research paper|
|Reference:||35AA363 (Permanent URL)|
Design/methodology/approach - Based on survey data gathered from a large Dutch financial services organization, looks at employees' perceptions of eight aspects of working in the organization - people-oriented leadership, the level of co-operation between departments, pay, work speed and quantity, career opportunities, job security, organizational commitment and job strain. Assesses how their perception of these related to the financial performance of the organization's business units and vice versa, how financial performance affected evaluations of work climate, human resource practices and job stress.
Findings - Finds that the business units' financial performance were systematically related to the employees' perceptions of human resource practices, work climate and job stress. Reports that the study found causation and reverse causation, suggesting a more dynamic relationship between financial performance and work climate, human resource management practices and job stress than has been suggested. In relation to human resource management practices, reports that only perceived job security had a positive impact on financial performance; in relation to work practices, reports that high people-oriented leadership had a negative impact on financial performance; and in relation to job stress, reports that increased work pressure and work intensity predicted poor financial performance.
Research limitations/implications - Describes the methods used in the research and discusses the limitations.
Originality/value - Studies how human resource management affects financial performance.