HRM work leads to higher profits

first_imgRelated posts:No related photos. Previous Article Next Article A two-year research project by King’s College, London, has found thatbusinesses which show a high commitment to human resources management (HRM)benefit from increased productivity and profitability. The project also discovered that effective HRM brings high staffsatisfaction levels and well-being. More than 600 senior HR managers and 460CEOs were interviewed from a range of companies with more than 50 employees forthe Future of Work Pro- gramme, which was sponsored by the Economic and SocialResearch Council and the CIPD. David Guest, professor of organisational psychology and human resourcesmanagement at Kings College, claims the findings show that the number of HRMpractices adopted by companies in 1999 is linked to their financial performancein the same year. Prof Guest said, “Most UK employers are still not doing HRM properly.The best way to improve productivity is to encourage more companies to do moreHRM. “HR departments are seen by CEOs to be doing traditional things.” HRM work leads to higher profitsOn 26 Jun 2001 in Personnel Today Comments are closed. last_img