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Edgar Allan Poe/Sullivan's Island Library
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West Ashley Library
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Wando Mount Pleasant Library
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The Relationship Between Human Resource Investments and Organizational Performance: A Firm-Level Examination of Equilibrium Theory.
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- Author(s): Subramony, Mahesh1 ; Krause, Nicole1; Norton, Jacqueline1; Burns, Gary N.1
- Source:
Journal of Applied Psychology. Jul2008, Vol. 93 Issue 4, p778-788. 11p.- Subject Terms:
*HUMAN capital; *HUMAN resources departments; *JOB performance; *EMPLOYEE attitudes; *LABOR incentives; *WAGES; *ORGANIZATIONAL behavior; *TASK performance; *ORGANIZATIONAL effectiveness; *CUSTOMER satisfaction; *ORGANIZATIONAL commitment; INCENTIVE (Psychology); APPLIED psychology; MOTIVATION (Psychology) - Source:
- Additional Information
- Abstract: It is commonly believed that human resource investments can yield positive performance-related outcomes for organizations. Utilizing the theory of organizational equilibrium (H. A. Simon, D. W. Smithburg, & V. A. Thompson, 1950; J. G. March & H. A. Simon, 1958), the authors proposed that organizational inducements in the form of competitive pay will lead to 2 firm-level performance outcomes--labor productivity and customer satisfaction--and that financially successful organizations would be more likely to provide these inducements to their employees. To test their hypotheses, the authors gathered employee-survey and objective performance data from a sample of 126 large publicly traded U.S. organizations over a period of 3 years. Results indicated that (a) firm-level financial performance (net income) predicted employees' shared perceptions of competitive pay, (b) shared pay perceptions predicted future labor productivity, and (c) the relationship between shared pay perceptions and customer satisfaction was fully mediated by employee morale. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Journal of Applied Psychology is the property of American Psychological Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Abstract:
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