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Jun 2010

Human resource policies, accounting and organisational performance

This project examined the relationship between human resource management (HRM), management accounting and organisational performance in six case study companies (two in Canada, two in Japan and two in the UK) and in 100 telephone interviews (40 in Japan, 30 in Canada and 30 in the UK).

The companies studied in this project made great efforts to link specific HR policies with organisational performance. In all six cases, HR managers and management accountants were working closely together to develop strategic plans and annual budgets. In four of the cases, they also developed performance related bonus schemes in close collaboration and were involved in frequent communication on decision making. Through interviews with executives in each of the six cases, the researchers found five areas of HR policy that were cited as having an impact on organisational performance, namely: recruitment, training, job for life, teamwork and organizational culture.

In all six cases the interviewees emphatically endorsed the positive effect that training had on organisational performance, albeit that this effect came with a time lag.

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Human resource policies, accounting and organisational performance