Section Five
Mark Huselid has performed one of the most
comprehensive studies of the financial effects of such systems.
His study, which has been received with great interest by both
academicians and practitioners, examined data from over 825
firms. The results of this study warrant substantial confidence
as the study employed a comprehensive set of variables that
controlled for various influences on firm performance. The
study examined two separate systems of highly intercorrelated
practices, the first being employee skills and organizational
structures and the second being employee motivation and
hiring selectivity. This skills system included the following
practices:
- Information sharing
- Use of formal job analysis
- Promotion from within
- Use of attitude surveys of the workforce
- Use of quality of work life programs
- Profit sharing or gain sharing
- Employee training
- Employee access to grievance procedures
- Use of selection tests