HR systems, HR departments, and perceived establishment labor productivity

This study examines how an HR department moderates the effects of high‐performance work systems (HPWSs) on perceived establishment performance. Using a representative sample of 125 small and medium‐sized establishments from the 2002 National Organizations Survey, our results indicate a positive interaction between HPWSs and the existence of an establishment HR department with respect to perceived establishment labor productivity. Implications for future strategic HRM research are discussed.