theoretical challenges. This can be found elsewhere, for example in Wright
and Gardner ( 2003 ) and Wall and Wood ( 2005 ), nor to summarize the evidence:
Boselie et al. ( 2005 ) have done an excellent job here. Rather, we pose more
fundamental questions such as what is meant by performance, how an HR system
is to be conWgured, how the causal chain between HR practices and performance
outcomes is to be modeled, and what this means for research in the area.
Most importantly, it challenges what we mean by Human Resource Management.
What should be included and what aspects of organizational life are beyond
the scope of the subject? Recent research is reviewed to argue that culture,
leadership, line manager behavior, and operational management all need to fall
within our area of interest. Before getting into the substance of these points, it
is necessary to say something about the type of problems that have bedeviled
research in the area.
26.2 Problems of Method
.........................................................................................................................................................................................
Wright and Gardner ( 2003 : 312 ) summarize these problems:
While evidence mounts that HR practices are at least weakly related toWrm performance,
signiWcant methodological and theoretical challenges exist... Methodologically, there is
no consensus regarding which practices constitute a theoretically complete set of HR
practices; how to conceptually categorize these practices; the relevance of business strategy;
the appropriate level of analysis; or how HR performance andWrm performance are to be
measured... Theoretically, no consensus exists regarding the mechanism by which HR
practices might impact onWrm outcomes.
Many, if not most, studies have used postal surveys sent to single responders
such as a senior HR manager. They are asked from a predetermined list of HR
practices to indicate which are in use and, often but not always, to estimate the
proportion of employees covered by each practice. Often the same respondent is
asked to estimate the productivity, performance, or proWtability of theirWrm
relative to others in their sector. Alternatively, published accounting data is used.
Statistical techniques of varying degrees of sophistication are then used to explore
the nature of the relationship between the two sets of variables. One of the earliest
studies here and the most notable was that of Huselid ( 1995 ) and few subsequently
have reached his level of sophistication. The general conclusion is that there is a
clear observable relationship between the adoption of HR practices and perform-
ance outcomes with generally the greater the number of practices in place, the
stronger the positive relationship. Gerhart ( 2005 : 175 ) summarizes some of the
evidence:
534 john purcell and nicholas kinnie