This study examines two alternative views-universal and contingency-of
the human resources (HR)-performance relationship in manufacturing se
ttings, Results from a survey of 97 plants primarily support a conting
ency approach to human resource management (HRM), An HR system focused
on human capital enhancement was directly related to multiple dimensi
ons of operational performance (i.e., employee productivity, machine e
fficiency, and customer alignment), but subsequent analysis revealed t
hat this main effect was predominately the result of linking human-cap
ital-enhancing HR systems with a quality manufacturing strategy, Other
manufacturing strategies also moderated the HR-performance relationsh
ip.