Impact of Strategy, Human Resource Management, Budgeting and Participation on Return on Assets
Journal of Human Resource Costing & Accounting
ISSN: 1401-338X
Article publication date: 1 February 2000
Abstract
This study looked at the impact on return‐on‐assets (ROA) of aligning budgeting and human resource management (HRM) practices with strategy. A Lisrel model was tested on 79 large Canadian and U.S. firms. Although HR policy alignment was positively associated with ROA, budgetary alignment was only positively associated with ROA in conjunction with process participation. That is, organisations performed best when the budgets were aligned with the mission of the organisation and numerous levels of the organisation had the opportunity to participate in strategy formation. Furthermore, aligned budgets did not ameliorate the negative affects of implementing a non‐participatory process of strategy formation.
Citation
PARKINSON, J. and TAGGAR, S. (2000), "Impact of Strategy, Human Resource Management, Budgeting and Participation on Return on Assets", Journal of Human Resource Costing & Accounting, Vol. 5 No. 2, pp. 45-61. https://doi.org/10.1108/eb029068
Publisher
:MCB UP Ltd
Copyright © 2000, MCB UP Limited