Publication Date

July 1997


This study examined the impact of Human Resource (HR) practices (selection, training, compensation, and appraisal) and participation on the financial performance of U.S. petrochemical refineries. Survey results from HR and Operations respondents indicated that appraisal and training were significantly related to workforce skills and that training and compensation were marginally related to workforce motivation. In addition, only training was significantly related to refinery performance, although the relationship was negative. However, selection, compensation, and appraisal interacted with participation in determining refinery financial performance such that each of these practices were strongly positively related to financial performance only under highly participative systems. Implications are discussed.


Suggested Citation
Wright, P. M., McCormick, B., Sherman, W. S. & McMahan, G. C. (1997). The role of human resource practices in Petro-Chemical Refinery performance (CAHRS Working Paper #97-12). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.