chapter 26
....................................................................................................................................................HRM AND
BUSINESS
PERFORMANCE
....................................................................................................................................john purcell
nicholas kinnie
26.1 Introduction
.........................................................................................................................................................................................
Thesearch for causal links between strategic HRM and business performance
has dominated both academic and practitioner debate for over two decades.
Boselie et al. ( 2005 ) found 104 research papers published in reputable academic
journals over a ten-year period up to the end of 2003. A continuing stream has
Xowed since then. This focus on one issue in HRM has led it to be described as ‘the
HRM Holy Grail.’ If an unambiguous causal connection can be established between
HRM practices and organizational performance then it will have signiWcant and
positive implications for the subject. The practitioner’s search for legitimacy and a
place at the board table will be enhanced. In business schools, HRM academics will
be on a par with colleagues inWnance rather than being the poor relations, as is too
often the case.
Unfortunately, this state of nirvana remains a long way oV. Numerous review
papers (at least eleven have been published since 2000 ) have found thisWeld of
research often wanting in terms of method, theory, and the speciWcation of HR
practices to be used when establishing a relationship with performance outcomes.
The function of this chapter is not to review all of the methodological and