Personnel department expenditures and labor productivity Summary

Empirical evidence relating personnel department budgets to desired organizational outcomes remains sketchy and inconclusive. An analysis was conducted of the relationship between previous year's personnel department expenditures and total annual output, for 11 large railroads over a six-year p...

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Bibliographic Details
Published inJournal of organizational behavior Vol. 16; no. 2; p. 183
Main Authors Eastwood, Karen, Rudin, Joel P, TEN PAO LEE
Format Journal Article
LanguageEnglish
Published Chichester Wiley Periodicals Inc 01.03.1995
Subjects
Budgets
Departments
Employees
Expenditures
Human resource management
Hypotheses
Labor productivity
Organizational change
Production functions
Railroads
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Summary:Empirical evidence relating personnel department budgets to desired organizational outcomes remains sketchy and inconclusive. An analysis was conducted of the relationship between previous year's personnel department expenditures and total annual output, for 11 large railroads over a six-year period. There was a significant partial correlation between these two variables. However, after controlling for total assets and workforce size, a regression analysis indicated that individual railroads were unable to adjust their personnel department expenditures over time to maximize productivity. Implications for research and practice are discussed.
ISSN:0894-3796
1099-1379