The impact of HR practices on the performance of business units


Contact: Patrick M. Wright, Department of Human Resource Studies, School of Industrial and Labor Relations, Cornell University, Ithaca, NY 14853-3901. Email:


This article examines the impact of HR practices and organisational commitment on the operating performance and profitability of business units. Using a predictive design with a sample of 50 autonomous business units within the same corporation, the article reveals that both organisational commitment and HR practices are significantly related to operational measures of performance, as well as operating expenses and pre-tax profits.