The Impact of Different HRM Regimes on Labour Productivity: National Results and a Regional Perspective

This paper uses AWIRS 95 and IRWIRS 96-7 data to test whether workplaces which used ‘soft’ versus ‘hard’ Human Resource Management (HRM) policies an practices experienced significant differences in labour productivity improvements. Generally, the results support the proposition that management attitudes, policies and practices which aim to develop workforce skills, commitment and motivation were positively associated with improvements in labour productivity. Very few ‘hard’ practices other than performance pay had the same effect. EEO/AA and maternity leave policies were strongly correlated with improved productivity.