April 21, 2010

Believable or Biased? Overestimating the Impact of HR Practices on Firm Performance


· HR and line managers intrinsically believe that high-performing companies have more progressive HR practices and effective HR functions. Likewise, they assume less successful companies have less effective HR functions.

· Experienced people (such as senior executives with long tenure) are more likely to hold personal beliefs about the impact of HR practices on performance (i.e., implicit performance theories) than are less experienced people (such as graduate students).

· These beliefs are likely to result in research that overestimates the impact of HR on firm performance.

Recommended Citation
Center for Advanced Human Resource Studies. (2010, April). Believable or biased? Overestimating the impact of HR practices on firm performance (CAHRS Research Link No. 7). Ithaca, NY: Cornell University, ILR School.

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