The<scp>HR</scp>–performance link using two differently measured<scp>HR</scp>practices

Abstract

Previous studies have supported the association between high‐performance work systems and firm performance; however, HR practices were measured in various ways. This study demonstrates the relationships between three aspects of high‐performance work systems (ability‐enhancing, motivation‐enhancing, and opportunity‐enhancing HR practices) and performance of a firm (financial performance and job satisfaction of employees) among S outh K orean firms. In addition, this study compares the relative predictive power of two measures of HR practices (the perceived presence and the perceived effectiveness). The findings reveal that the effectiveness measure accounts for more of the variance in financial performance and employee job satisfaction than the presence measure.