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Human capital measures, strategy, and performance : HR managers' perceptions

Author

Listed:
  • Stephen Gates

    (EM - EMLyon Business School)

  • Pascal Langevin

Abstract

The purpose of this paper is to report the results of a survey and interviews with human resource (HR) professionals to identify and better understand their perceptions and expectations of human capital measures' (HCM) content, links to strategy, and impact on performance. This paper relies on a quantitative analysis of survey questionnaires collected from 104 HR executives, as well as on a qualitative investigation using six interviews. Two types of HCM are derived using principal component analysis. One factor measures employees' work efficiency and cost consciousness (efficiency indicators), whereas the second factor measures employees' entrepreneurial and innovative capabilities (innovation indicators). The results confirm the following hypotheses: first, according to HR managers, the more advanced a company is in the development of HCM, the higher the company's performance; and second, in companies following a differentiation strategy, HR managers are interested in innovation indicators, while in those following a cost reduction strategy, HR managers are interested in efficiency indicators.

Suggested Citation

  • Stephen Gates & Pascal Langevin, 2010. "Human capital measures, strategy, and performance : HR managers' perceptions," Post-Print hal-02276733, HAL.
    • Handle: RePEc:hal:journl:hal-02276733
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    Cited by:

    1. Galyna Boikivska & Roksolana Vynnychuk & Oksana Povstyn & Halyna Yurkevich & Zoriana Gontar, 2021. "Cognitive Aspects in the Process of Human Capital Management in Conditions of Post-Pandemic Social Constructivism," Postmodern Openings, Editura Lumen, Department of Economics, vol. 12(1), pages 296-307, March.
    2. Amalou-Döpke, Linda & Süß, Stefan, 2014. "HR measurement as an instrument of the HR department in its exchange relationship with top management: A qualitative study based on resource dependence theory," Scandinavian Journal of Management, Elsevier, vol. 30(4), pages 444-460.
    3. Samson, Kelly & Bhanugopan, Ramudu, 2022. "Strategic human capital analytics and organisation performance: The mediating effects of managerial decision-making," Journal of Business Research, Elsevier, vol. 144(C), pages 637-649.
    4. Jian Xu & Yue Shang & Weizhen Yu & Feng Liu, 2019. "Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    5. Kuipers, Ben S. & Giurge, Laura M., 2017. "Does alignment matter? The performance implications of HR roles connected to organizational strategy," LSE Research Online Documents on Economics 115318, London School of Economics and Political Science, LSE Library.
    6. Marko Slavković & Jasmina Ognjanović & Marijana Bugarčić, 2023. "Sustainability of Human Capital Efficiency in the Hotel Industry: Panel Data Evidence," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    7. Finch, John & Wagner, Beverly & Hynes, Niki, 2012. "Resources prospectively: How actors mobilize resources in business settings," Journal of Business Research, Elsevier, vol. 65(2), pages 164-174.
    8. Corinne Ollier Bessieux & Emmanuelle Negre & Marie-Anne Verdier, 2022. "Moving from Accounting for People to Accounting with People: A Critical Analysis of the Literature and Avenues for Research," Post-Print hal-03889478, HAL.
    9. Goretzki, Lukas & Reuter, Marek & Sandberg, Joanna & Thulin, Gabriella, 2022. "Making sense of employee satisfaction measurement – A technological frames of reference perspective," The British Accounting Review, Elsevier, vol. 54(1).

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