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Strategy, core competence, and HR involvement as determinants of HR effectiveness and refinery performance

This study examined the impact strategy, core competence, and involvement of HR executives in strategic decision making on the refinery managers' evaluation of the effectiveness of HR and refinery performance among 86 U.S. petro-chemical refineries. Survey results indicated that higher involvement of HR in organizational strategy was strongly related to perceptions of HR effectiveness, and that the relationship was strongest to the extent that refineries pursued a product innovation strategy and viewed skilled employees as their core competence. HR involvement was unrelated to refinery performance, but was actually negatively related to the extent that refineries emphasized efficient production as their core competence.