The effect of human resource management practices on the perceptions of organizational and market performance of the firm

The purpose of our study is to extend the emerging empirical literature on the firm-level impact of human resource management practices. Results based on a national sample of organizations from private and public sectors in Israel indicate that these practices have a significant impact on both the perceived organizational and market performance of the organization. The single independent variable found to be statistically significant in affecting perceived organizational performance was training practices. In the case of perceived market performance, we found that, in addition to training practices, employee selection practices also significantly affected the perceived market performance.1 © 1999 John Wiley & Sons, Inc.