Do HR competencies enable organisations to perform more effectively? An empirical study of HR competencies and organisational performance in Danish companies

Castro Christiansen, L. and Higgs, M. (2006) Do HR competencies enable organisations to perform more effectively? An empirical study of HR competencies and organisational performance in Danish companies (Henley Working Paper Series, HWP 0606) Henley, UK. Henley Business School, University of Reading

Abstract

This study examines the relationship of the alignment of HR strategy and business strategy and organisational performance in Danish companies and whether HR competencies as enablers of alignment are associated with higher organisational performance.

Using an exploratory approach and the resource-based view of the firm (Barney, 1991), the data show that there is a positive relationship between the alignment of HR strategy and business strategy and organisational performance. Furthermore, the data show that HR competencies shared by HR executives and line and senior managers, as enablers of alignment, contribute to organisational performance. Becker, Huselid, and Ulrich’s (2001) theory of HR competencies corresponding to Ulrich’s (1998; Ulrich and Brockbank, 2005) strategic partner role proposed that specifically business-related HR competencies, as enablers of alignment, had the greatest performance impact followed by professional HR competencies.

Data was collected from 63 HR and 93 non-HR Danish executives from the corporate, business, and functional strategy levels. Biases were examined, but were not found. The empirical investigation involved the use of Pearson product-moment correlation analysis, Exploratory Factor Analysis, and Multiple Regression. The paper considers the implication of the findings together with a discussion of limitations and areas for further research.

This record has no associated files available for download.

Contributors

Author: M. Higgs

Download statistics