5.2. Testing for external fit
Table 3 reports the results of ordered probit analyses computed to test for
the effectiveness of HRM on HR outcomes within a ‘quality-enhancer’ and a ‘cost-reducer’ business strategy environment. In relation to HR outcome variables
measured, the results indicated that the level of HRM exhibited by hotels did not
have a strong and positive effect on HR outcome variables for the sample of hotels
employing either a ‘quality-enhancer’ or ‘cost-reducer’ business strategy. Thus, the
analyses of results did not demonstrate that HRM is effective in determining the
levels of HR outcomes only in a ‘quality-enhancer’ environment, but suggested that
HRM was not effective in either a ‘quality-enhancer’ or ‘cost-reducer’ business
strategy environment in predicting HR outcomes. These results provided no support
for the importance of external fit in achieving HR outcomes.