Strategic Human Resource Management

Section Five

of human resource practices were found to be associated with
higher labor productivity and lower scrap rates.^115

Another manufacturing study by John McDuffie addressed
the issue by examining the impact of systems of human
resource practices in automobile manufacturing in several
countries. The study proposed that positive performance effects
would occur only if innovative human resource practices are
integrated with or are compatible with the firm’s production
strategy. More specifically, the premise was that performance
gains would occur only if the discretionary effort and motivation
produced by such innovative practices were channeled by the
production strategy into greater performance. The study
analyzed the performance effects of an index for human
resource systems based on the following measures:

1. Hiring criteria emphasizing receptiveness to new
   learning and interpersonal skills


2. The degree to which individual compensation was
   contingent on performance of the firm


3. The extent of status differentials between management
   and workers


4. The extent of training provided to new employees


5. The extent of ongoing training provided for experienced
   employees^116