Does Human Resource Management Help a Company’s Financial Operating Result?

Rob. C. H. van Otterlo

Faculty of Law, University of Amsterdam, Amsterdam, Netherlands..

DOI: 10.4236/jssm.2013.65031                

Abstract

Human Resource Management (HRM) is widely believed to have a positive effect on the performance of company. However, empirical proof of this is hard to come by. In this study, we try to establish a linkage between HRM and financial output of two case studies in the profit sector. To do this, we have developed a performance measurement system that is tailored to the specific needs of measuring HRM-performance in for-profit of company. Although we do not try to generalize the outcome of this study, it looks promising in the way that more case studies should be conducted using this specific performance measurement system. If nothing else, management and controllers could use the system to evaluate the performance of their HRM-tools.

Keywords

HRM; Return on Investment; Finance

Conflicts of Interest

The authors declare no conflicts of interest.

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