Human Resource Management, Corporate Performance and Employee Wellbeing: Building the Worker into HRM

Abstract

Two main approaches to human resource management (HRM) are identified: one focusing on the organisational concern for the relationship between HRM and performance, the other mounting a critique of HRM. It is argued that both pay lip service to, but largely neglect worker reactions to HRM. The case is made for building the worker into the analysis of HRM, on the one hand, by incorporating worker attitudes and behaviour in the study of the HRM-performance relationship, and on the other, by paying serious attention to the association between HRM and worker-related outcomes. Evidence is presented to suggest that worker attitudes and behaviour mediate the HRM-performance relationship and that certain HR practices are associated with higher work and life satisfaction. These practices include job design, direct participation and information provision that are associated with higher performance; but work satisfaction is also associated with equal opportunities, family-friendly and anti-harassment practices. It is suggested that a more worker-friendly HRM can best be applied in the context of a partnership or mutual gains framework.