Journal of Spirituality, Leadership and Management
Volume 2: 2003
High-value human resource management practices and organisational performance: An exploratory study
Dr David Gadenne and Terry Waters-Marsh
Central Queensland University
This paper investigates the relative importance and effectiveness of “high value” human resource management (HRM) practices used by Australian listed companies. The preliminary findings indicate that the most effective high-value HRM practices involved those dealing with internal promotion on the basis of merit, employee participation in decisions and information sharing, a cooperative and trustful climate, extensiveness in the employee selection process, opportunity and variety in employee training, and individual compensation schemes. This appears to fit with current HRM thinking which emphasises merit-based schemes, and employee participation in decision-making within the context of HRM leadership that emphasises values directed toward development of others rather than self-serving management and stakeholder objectives.
The study also found that employee appraisal systems and training were correlated with both return on investment and lower turnover, whereas communication and long- term focus, and equity and fairness in selection and promotion were correlated with lower turnover.
The results suggest that businesses which emphasise these high-value HRM practices are more likely to improve organisational performance. This may have implications for transformational leadership approaches to HRM that endeavour to improve performance through creating a culture that is conducive to spiritual growth based on appropriate individual and collective “corporate family” values, attitudes and beliefs.