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This study first examines the association between the effectiveness of high-performance work systems (HPWS) and two types of firm performance (the financial performance and productivity of a firm) in Korea and then compares the relative predictive power between employee responses and manager responses. The results indicate that the effectiveness of HPWS has a statistically significant positive effect on firm performance and that employee perception of the effectiveness of human resource (HR) practices explains more variance in the financial performance and productivity of firms than does managers' corresponding perception. This study highlights the importance of a firm's employees as a source of HR information.
