Big hat, no cattle? The relationship between use of high-performance work systems and managerial perceptions of HR departments

Abstract

This study examines the relationship between the use of high-performance work systems (HPWS) and managers' perceptions of the strategic value of their HR departments. On the basis of survey responses from 132 firms, we match HR managers' descriptions of human resource practices with the evaluations of HR departments provided by firms' general managers. Results indicate that managers' assessments of the strategic value of their firms' HR departments are significantly influenced by relative HPWS use. When HR managers report higher utilization of high-performance HR practices, managers perceive their HR departments as having more strategic value. We also find that this relationship is mediated by workforce human capital and social capital.