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Human Resource Management, Institutionalization and Organizational Performance: A Comparison of Hospitals, Hotels and Local Governments

• Tags:
• resource,
• human,
• sectors,
• resource management

Overview The relationship between Human Resource Management (HRM) and firm performance has been a hotly debated topic over the last decade. This paper studies the recent empirical data on the effectiveness of human resource management in the Netherlands, using Control versus Commitment HR Theory (Walton, 1985; Arthur, 1994) in combination with New Institutionalism (Dimaggio and Powell, 1983). It includes three different Dutch sectors/branches of industry i.e. Health care, Local Government and Tourism. Empirical results suggest that the effect of HRM is lower in highly institutionalised sectors (hospitals and local governments) than in a less institutionalised sector like hotels.

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