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Predicting business unit performance using employee surveys: Monitoring HRM-related changes
Abstract
Organisations are increasingly using strategy tools such as workforce scorecards to keep track of human resource management related change processes that have been implemented and the effects of these on business unit performance. However, in this area, the challenge of finding appropriate indicators, establishing temporal relationships and providing useful management information still remains. Using longitudinal archival data from 171 branches of a large financial service organisation, this study examines to what extent employee surveys can serve as a predictor of better financial performance at the branch level. Results from a series of models in AMOS (Analysis of Moment Structures) showed that a significant part of branch profits could be predicted using employee surveys after correcting for prior profits. Based on extrapolation to all branches of this organisation, the changes in employee survey scores predict higher yearly profits of 178 million euros (17.9 per cent of the total yearly profits) across the entire company. Implications for research and practice are discussed.
... Delaney and Huselid (1996), Pfeffer (1998), Van De Voorde, et al. (2010) found a positive relationship between HRM practices and OP. In particular, Pfeffer's (1998) research showed organizations that practice employment security, selective hiring, self-managed teams, decentralization, performance-based pay and reward and extensive training highly increase OP and IJP. ...
... Furthermore, training, job security and career management had significant and positive association with OP. The rest of HRM practices had no significant and Turkey should consider the followings which were supported by some prior researches (McDuffie and Krafcik, 1992;Arthur, 1994;Ichniowski et al., 1994;Huselid, 1995;Delaney and Huselid, 1996;Delery and Doty, 1996;Pfeffer, 1998;Wright and Edwards, 1998;Bartel, 2000;Guest, 2002;Cho et al., 2006;Procter and Burridge, 2008;Collins et al., 2010;van De Voorde, 2010;Parka and Kruse, 2014;von Bonsdorff, 2015;and Guest, 2017) when they formulate their future strategies concerning HRM, OP and IJP relationships: ...
Purpose—This study aimed to investigate the influences of human resource management (HRM) practices on organizational commitment (OC), individual job performance (IJP) and organizational performance (OP) and the effects of OC on IJP and OP at travel agencies in Iran and Turkey. Given research site observation, improving HRM practices fostering OC, IJP and OP was essential to high service quality in hospitality industry.
Design, methodology, approach—Data were collected through a survey based on interview and email from 440 employees working at travel agencies in both countries. Analysis methodology included demographic statistics, descriptive statistics, factor analysis, reliability analysis, correlation analysis and multiple regression analysis.
Findings—Only reward (RE), teamwork (TW), job description (JD), delegation (DL) and career management (CM) influenced AC; JD and CM affected CC; and recruitment and selection (RS), RE, salary and wage (SW), TW, DL, job security (JS) and CM influenced NC significantly and positively. Likewise, only RS, TR, SW, TW, DL and CM affected IJP; and TR, JS and CM affected OP significantly and positively. Finally, AC, CC and NC influenced IJP and only AC and CC impacted OP significantly and positively.
Research limitations/implications—Sample and number of respondents were limited. Generalization of findings was not possible. Email respondents raised the problem of who filled the form. Scales did not include personality traits, socio-cultural features and economic conditions which should be explored. However, the research provided recommendations to travel agencies in both countries.
Originality/value—This study filled the gap in hospitality industry in Iran and Turkey where researches into wide-ranging HRM practices—OC—IJP—OP links were few and far between.
Keywords—Human resource management practices, organizational commitment, individual job performance, organizational performance, travel agency
... En revanche, la satisfaction des clients en T1 n'a eu aucun effet sur les résultats RH en T2. Une autre recherche de Van de Voorde et al. (2010) aboutit à la même conclusion. Les auteurs n'ont constaté aucun effet de la productivité sur les pratiques de GRH sélectionnées, sauf pour la sécurité de l'emploi. ...
... Les auteurs n'ont constaté aucun effet de la productivité sur les pratiques de GRH sélectionnées, sauf pour la sécurité de l'emploi. Selon Van de Voorde et al. (2010), « Results from a series of models in AMOS (Analysis of Moment Structures) showed that a significant part of branch profits could be predicted using employee surveys after correcting for prior profits. Based on extrapolation to all branches of this organisation, the changes in employee survey scores predict higher yearly profits of 178 million euros (17.9 per cent of the total yearly profits) across the entire company ». ...
L�objectif est ici d�examiner la contribution de la mobilisation des ressources humaines au developpement de l�innovation dans les petites et moyennes entreprises francaises. La mobilisation des ressources humaines est mesuree par un indice additif de pratiques dites mobilisatrices. L�innovation etudiee concerne l�introduction d�un nouveau produit. Les resultats de cette recherche rapportent des associations simultanees et longitudinales entre l�indice de pratiques mobilisatrices et l�innovation dans un echantillon de 275 PME francaises. En plus de ces associations, la causalite inversee a ete testee en controlant l�effet de l�innovation passee. Cette derniere ne conduit pas a l�effritement des associations constatees entre l�innovation actuelle et l�indice des pratiques mobilisatrices.
... In this direction, it should note the scientific heritage of such researchers as: A. Shamsuzzoha, P. Helo, M. Sandhu [21], E.-S. Borges [29], L. Kren J. L. Kerr [30], R. Gilsing et al. [31], S. Galletta, S. Mazzù, V. Naciti [32], A. Ba [33], J. P. Katz et al. [34], T. Miksa et al. [35]; ...
The study’s goal is to develop a set of recommendations for forming the system of monitoring the business-structure activities in the circular economy development. To achieve this objective, the structural components of the system of monitoring the business-structures are identified; the adjustment vectors of the system of monitoring the business-structure activity are identified by taking into account the circular economy priorities; the solution is chosen to improve the system of monitoring the business-structure activity in the circular economy development; a model of information and analytical support for the process of forming the system of monitoring business-structure activity in the circular economy development is made up. The management mechanism to choose solutions from improving the system of monitoring the business-structures activities in the circular economy development is developed. Unlike existing ones, it is based on taking into account the relative importance of the factors that affect the formation of the system of monitoring, the links between them, and the factors' priority, which allows selecting from numerous alternative solutions those that have the greatest potential to improve the system of monitoring and establish the possible solutions' implementation sequence. In addition, a model of information and analytical support for the process of forming the system of monitoring the business-structure activity in the circular economy development is proposed. It differs from the existing ones in that it takes into account the mutual influence of the signs and conditions to improve the system of monitoring in relation to the development object, and makes it possible to increase the level of the information content of monitoring subjects when making corrective management decisions. Keywords: system, development, business-structure, circular economy, sustainable development, function, factor.
... Graphical presentation of the relationship among variables affecting lecturer performance is presented in the following Figure 2. Consequently, the model was respecified by performing a competing model strategy (Hair et al., 2006). In order to obtain more parsiomonious and clearer model, non-significant effects (p > 0.05) were excluded from the initial model (Voorde et al., 2010). By deleting the path arrow representing Based on the path analysis, direct and indirect effect as well as total effect can be identified. ...
The dataset showed in this manuscript belongs to the investigation of determinant of lecturer performance in Indonesia. Semi-closed questionnaires were administered to collect data and 750 questionnaires were distributed by using snowball-sampling method to lecturers, peers, and students in the public and private universities in Indonesia. About 347 questionnaires were returned and could be further analyzed. Respondents were required to indicate their level of agreement on various items with a five-point scale. Exploratory factor analysis was used to test the item validity and Cronbach's Alpha test was employed to examine the instrument reliability. Besides, path analysis was also employed to test research hypotheses. Lecturer performance is an endless issue in education and the data can be used to explore the lecturer performance. Besides, it may also be used in developing an appraisal model of teacher performance other education levels as well.
... Another benefit of teaming up with other analytical teams is that people analytics can benefit from their data definitions and data (Rasmussen and Ulrich, 2015), which can also increase the credibility of the findings of a people analytics team (Guenole et al., 2017). By teaming up with financial analytics, for instance, a people analytics team can link profitability to employee survey data, which in turn can potentially help HR to make a stronger case for investing in new HR initiatives, as illustrated by the case study of Van De Voorde et al. (2010). ...
Purpose
The purpose of this paper is to explore the key ingredients that people analytics teams require to contribute to organizational performance. As the information that is currently available is fragmented, it is difficult for organizations to understand what it takes to execute people analytics successfully.
Design/methodology/approach
To identify the key ingredients, a narrative literature review was conducted using both traditional people analytics and broader business intelligence literature. The findings were summarized in the People Analytics Effectiveness Wheel.
Findings
The People Analytics Effectiveness Wheel identifies four categories of ingredients that a people analytics team requires to be effective. These are enabling resources, products, stakeholder management and governance structure. Under each category, multiple sub-themes are discussed, such as data and infrastructure; senior management support; and knowledge, skills, abilities and other characteristics (KSAOs) (enablers).
Practical implications
Many organizations are still trying to set up their people analytics teams, and many others are struggling to improve decision-making by using people analytics. For these companies, this paper provides a comprehensive overview of the current literature and describes what it takes to contribute to organizational performance using people analytics.
Originality/value
This paper is designed to provide organizations and researchers with a comprehensive understanding of what it takes to execute people analytics successfully. By using the People Analytics Effectiveness Wheel as a guideline, scholars are now better equipped to research the processes that are required for the ingredients to be truly effective.
... p = 0.039). The negative value implies that HRM problems lead to reduce business performance which can be advocated with previous studies [44]. ...
With the recent increase in the complexity of food industries, numerous issues including rapid changes in taste and demand for food supplies are on the rise, particularly in developing countries. Aim: This research study was aimed at investigating supply chain management issues in food processing industries and influence of these factors on business performances. Methods: Research data from respondents was collected using online social platforms and Statistical Package for Social Sciences (SPSS) was employed to analyses the data. Results : Research findings indicated that factors including human resource management, technology, facility issues, and customer relations negatively influence business performance. Conclusion : Findings also reflect that human resource management issues represent a significant driver for improving performance of the food industries. This research study offers insight regarding barriers and drivers influencing the operations of food processing industries and what measures should be taken accordingly.
... Andersen, Boesen, and Pedersen 2016) and to get a better understanding of the whole value chain from intended, actual to perceived HRM practices in line with the HR process model by Wright and Nishii (2013). The HRM and performance study by Van der Voorde, Paauwe, and Van Veldhoven (2010) is a good example of private sector research using advanced methods and techniques that have not been picked up in public sector research probably partly because of lacking access to data and partly because of challenges in defining public sector performance in terms of objective data (see also Vermeeren, Kuipers, and Steijn 2014). ...
This overview paper focuses on the increased popularity of human resource management (HRM) in public management and public administration research. This is reflected in empirical articles published in scientific journals linked to HRM, public management and public administration in the period 2000–2016. The findings of the paper show some cross-fertilization between the different disciplines and the lack of it in some areas. The outcomes also provide input for a future research agenda including alternative theories, models, methods and research techniques for rigour and relevant HRM research in the public sector domain.
... They provide an important opportunity but also cause significant challenges for training and organizational performance researchers. The challenge is to collect data on organizational performance sometime after the collection of data on training (Van de Voorde, Paauwe, & Van Veldhoven, 2010) and to collect measures of training and organizational performance at Times 1, 2, and 3. This will allow researchers to make inferences about causality and reverse causality. ...
We review the methodological rigor of empirical quantitative studies that have investigated the training and organisational performance relationship. Through a content analysis of 219 studies published in quality journals, we reveal significant validity threats (internal, external construct and statistical conclusion validity) that raise questions about the methodological rigor of the field. Our findings suggest that the time is appropriate for a renewed methodological endeavour to understanding the relationship between training and organisational performance. We make specific recommendations to enhance methodological rigor and generate research finding will enhance operationalisation of theory, help researchers to make inferences about causality and inform the decision making of HRD practitioners.
... In order to live in a vibrant, aggressive, demanding and often ruthless business milieu, organisations deliberately continue to follow compound goals. According to Guest (2014) and Van De Voorde et al. (2010), the pursuit of a multiplicity of goals in a volatile environment enables organisations to balance and harmonise competing interests, spread risks associated with performance through diversification and favourably compete. Lange et al. (2011) assert that for organisations to be competitive and build a good image, they require strategic goals. ...
Purpose
The purpose of this paper is to investigate the relationship between stewardship behaviour and perceived goal congruence. Using local governments, the paper introduces collectivism as a moderating variable to ascertain whether the mixed views in the stewardship behaviour-perceived goal congruence nexus is due to variations in collectivism.
Design/methodology/approach
The paper espouses a cross-sectional descriptive and analytical design. The authors use structural equation modelling to investigate hypotheses. Using proportionate and simple random sampling procedures, a sample of 310 respondents were drawn from local governments in Uganda of which a response rate of 72.6 per cent was obtained.
Findings
The findings show that stewardship behaviour and collectivism are significant predictors of perceived goal congruence. Furthermore, the magnitude effect of stewardship behaviour on perceived goal congruence depends on collectivism; implying that the assumption of non-additivity is met.
Research limitations/implications
Only a single research methodological approach was employed and future research through interviews could be undertaken to triangulate.
Practical implications
Variations that occur in stewardship behaviour create variations in goal congruence in local governments. It is confirmed that collectivism technically strengthens the link between stewardship behaviour and perceived goal congruence: suggesting that indeed collectivism could establish a maximal impact on the stewardship behaviour—perceived goal congruence link.
Originality/value
This is one of the few studies that focus on testing the interactive effects of collectivism on the relationship between stewardship behaviour and perceived goal congruence in local governments in Uganda.
... To this end, scholars have studied the role of the HR function, 'fit' between SHRM, and a range of contextual factors which include the external environment (market and institutions), internal structures and processes, and an organization's administrative heritage. Empirical evidence convincingly demonstrates the added value of SHRM for organizational performance in terms of increased productivity, higher profitability, and lower employee turnover rates (Arthur, 1994;Combs, Liu, Hall, & Ketchen, 2006;Van De Voorde, Paauwe, & Van Veldhoven, 2010). However, almost without exception, SHRM research has relied on evidence from private sector organizations. ...
... Similar results were also obtained in a study by Paul and Anantharaman (2003) who concluded that increasing problems in human resources management can negatively affect business performance across different industries. Moreover, another study by Van de Voorde, Paauwe and Van Veldhoven (2010) concluded that there is a negative relationship between human resource problems and business performance. This confirms that problems in human resource management can be detrimental to the success of a business. ...
Orientation: In emerging economies such as South Africa, the implementation of supply chain management is characterised by significant problems. Despite its continued growth and importance to the economy, the food processing industry in the country remains vulnerable to these problems, which threaten its viability.
Motivation for the study: The aim of this study was to investigate supply chain management problems in the food processing industry and their influence on business performance. The study was motivated by the need to use supply chain management practices as a tool to improve business performance in the food processing industry.
Research design, approach and method: A questionnaire was distributed to a sample of 303 supply chain professionals working in the food processing industry in Gauteng Province. The collected data were analysed by using descriptive statistics, factor analysis, Pearson correlations and regression analysis.
Main findings: Supply chain management problems were identified in seven areas, namely human resource management, technology, facilities, supplier relationship management, customer relationship management, regulatory factors and logistics and transportation. Except for regulatory factors, all supply chain management problems negatively predicted business performance.
Contribution or value-add: Practically, the study enables supply chain professionals in the food processing industry to understand the sources of problems and use this information to develop solutions for the improvement of business performance. Theoretically, the study endorses the view that part of the key to resolving business performance complications in the food processing industry involves streamlining supply chain management by resolving its identifiable problems.
... Yine İKY ile ilgili son yıllarda yapılan araştırmalar incelendiğinde; (Pfeffer, 1994;Armstrong, 2008;Porter, 1985;Wernerfelt, 1984;Lado & Wilson, 1994;Fitz-enz, 2000;Dyer & Reeves, 1995;Collins & Clark, 2003;Voorde, Paauwe, & Van Veldhoven, 2010) diğer üretim faktörlerinde yapılan iyileştirmelere karşın üretim faaliyetlerinde görülen verimlilikteki düşmenin en önemli nedeni olarak insan gücünün etkin kullanılmaması gösterilmektedir. Örgütlerde insan kaynağı, yönetilmesi en güç olan ancak iyi yönetildiği takdirde önemli bir rekabet aracı olabilecek bir faktördür (Voorde, Paauwe, & Van Veldhoven, 2010, s. 44;Sun, Aryee, & Law., 2007;Arthur, 1994). ...
Yapılan araştırmalarda, her geçen gün insan kaynakları yönetiminde yeni yaklaşımların ortaya çıktığını ve hep
daha iyisini yapabilmek adına bir takım girişimlerde bulunulduğu görülmektedir. Bu çalışmada, insan kaynakları
yönetiminde hali hazırda bazı firmalarda kullanılmakta olan henüz çok fazla yaygınlaşmamış olan bir yaklaşım
olan insan kaynakları yönetiminde burçların kullanılması ele alınmaktadır. Buradan hareketle çalışmanın amacı,
insan kaynakları yöneticilerinin çalışanların burçlarına ve astrolojiye yönelik tutumlarının ölçülmesidir.
Araştırmanın evreni İstanbul ilinde bulunan insan kaynakları departmanlarında çalışanlardan oluşmaktadır.
Çalışma grubu araştırmayı temsil edebilecek kişilerden seçilmiştir. Veri toplama yönteminde nicel araştırma
yöntemi kullanılmıştır.
Alan yazın incelendiğinde konu ile ilgili yerli ve yabancı bir çalışmanın daha önce yapılmamış olması çalışmanın
önemini ortaya koymaktadır.
Araştırma bulgularına göre insan kaynakları yöneticilerinin burçlara ve astrolojiye yönelik tutum düzeyleri yüksek
bulunmuştur.
Araştırma sonuçlarının insan kaynakları yöneticilerine ve bu konu ile ilgili araştırma yapmak isteyenlere örnek
olacağı değerlendirilmektedir.
In the researches, it is seen that new approaches are emerging day by day in the human resource management
and some attempts have been made in order to be able to do better. This study deals with the use of Zodiac in
human resources management, an approach that has not yet become widespread, which is currently being used
by some firms in human resource management. The aim of the study is to measure the attitudes of human
resources managers towards the workers' signs and astrology.
The universe of the research consists of people working in the human resources departments in Istanbul. The
study group was selected from those who could represent the survey. Quantitative research method was used
in data collection method.
The field reveals the importance of studying whether the local and foreign studies related to the subject have
not been done before.
According to research findings, human resource managers' attitudes towards horoscopes and astrology were
found high.
It is evaluated that the results of the research will be an example to human resources managers and those who
want to do research about this subject.
... Collins & Smith, 2006). In keeping with the longitudinal design advocated in research on the impact of HRM on firm performance (e.g., Boxall & Steeneveld, 1999;Cappelli & Neumark, 2001;Ichniowski, Shaw, & Prennushi, 1997;van de Voorde, Paauwe, & van Veldhoven, 2010;Wright, Gardner, Moynihan, & Allen, 2005;Youndt et al., 1996) the present study assesses HPWS and resources at one time and uses and firm performance at a second point in time, using what Wright et al. (2005) describe as one of the best "predictive" designs (p. 415). ...
Professional service firms (PSFs) play an important role in the knowledge-based economy. Their success is highly dependent on their people, the knowledge resources they possess and how they use these resources. However, how to systematically manage human resources to attain high performance is not fully understood. This study addresses this issue by investigating the linkage mechanisms through which high performance work systems (HPWS), influences the performance of PSFs. We integrate resource-based and dynamic capability theories in order to identify and investigate two intervening mechanisms that link HR practices to firm performance. The first mechanism is the intellectual capital resources comprising the human, social and organizational capital that HPWS create. The second mechanism is the uses to which both HPWS and resources can be applied, operationalized as organizational ambidexterity, the simultaneous exploitation of existing knowledge and exploration of new knowledge. These mechanisms are hypothesized to link HPWS to firm performance in the form of a practices-resources-uses-performance linkage model. Results from a longitudinal study of 93 accounting firms support this linkage model.
... There is also no convincing theory or strong empirical evidence on the possible time-lag between an HRM intervention and its effect on firm performance. The few studies that take a longitudinal perspective (Paauwe, 1989;d'Arcimoles, 1997;Guest, Michie, Conway & Sheehan, 2003;Van Veldhoven, 2005; Van de Voorde, Paauwe & Van Veldhoven, 2010) suggest that the majority of HRM interventions have a time-lagged effect, sometimes up to three years before generating effects. Some HRM practices (such as individual performancerelated pay) might have a direct, short-term effect on firm performance (such as productivity), but the effect of most practices (such as training and development, participation, teamwork) will probably take longer, or will potentially never be directly observed. ...
... Collins & Smith, 2006). In keeping with the longitudinal design advocated in research on the impact of HRM on firm performance (e.g., Boxall & Steeneveld, 1999; Cappelli & Neumark, 2001; Ichniowski, Shaw, & Prennushi, 1997; van de Voorde, Paauwe, & van Veldhoven, 2010; Wright, Gardner, Moynihan, & Allen, 2005; Youndt et al., 1996) the present study assesses HPWS and resources at one time and uses and firm performance at a second point in time, using what Wright et al. (2005) describe as one of the best " predictive " designs (p. 415). ...
Professional service fi rms (PSFs) play an important role in the knowledge-based economy. Their success is highly dependent on their people, the knowledge resources they possess, and how they use these resources. However, how to systematically manage human resources to attain high performance is not fully understood. This study addresses this issue by investigating the linkage mechanisms through which high-performance work systems (HPWS) infl uence the performance of PSFs. We integrate resource-based and dynamic capability theories in order to identify and investigate two intervening mechanisms that link HR practices to fi rm performance. The fi rst mechanism is the intellectual capital resources comprising the human, social, and organizational capital that HPWS create. The second mechanism is the uses to which both HPWS and resources can be applied, operationalized as organizational ambidexterity, the simultaneous exploitation of existing knowledge and exploration of new knowledge. These mechanisms are hypothesized to link HPWS to fi rm performance in the form of a practices-resources-uses-performance linkage model. Results from a longitudinal study of 93 accounting fi rms support this linkage model.
... Many specific problems in workforce analytics have been investigated; e.g., optimal team formation for which a range of techniques from operations research to constraint programming and stochastic networks have been used [12], [18], [9], [7]. Another important problem in workforce analytics is analysis of employee satisfaction surveys; see [13] and [21]. There is work on various other problems in workforce analytics; e.g., see [10] for optimal call routing in support services. ...
Talent Acquisition (TA) is an important function within HR, responsible to recruit high quality people through various sources for given job positions under stringent deadlines and cost constraints. Given the importance of TA in the overall successful operations and growth of any organization, in this paper we propose a system called iTAG to analyze past TA data using statistical analysis techniques and to discover novel patterns/insights and actionable knowledge which can help in improving the cost, efficiency and quality of recruitments. iTAG is a domain-driven analytics system to answer specific business questions in TA pertaining to cost, efficiency and quality issues in TA business processes. We outline the iTAG functionality related to TA cost minimization, predictive models for candidate selection and offer acceptance by selected candidates, root cause analysis for offer decline, as well as several innovative as-is state descriptions (e.g., candidate subgroups having unusually high decline ratios). We illustrate the approaches through a real-life dataset.
... From the 1990s onwards the HRM and performance debate has resulted in hundreds of conceptual and empirical articles. Several studies have demonstrated the added value of HRM for organizational performance in terms of increased productivity, higher profitability and lower employee turnover rates (Arthur, 1994;Combs, Liu, Hall, & Ketchen, 2006;Van De Voorde, Paauwe, & Van Veldhoven, 2010). However, strategic human resource management (SHRM) research has been dominated by studies in private sector organizations, with the public sector largely ignored. ...
From the 1990s onwards the HRM and performance debate has resulted in hundreds of conceptual and empirical articles. Several studies have demonstrated the added value of HRM for organizational performance in terms of increased productivity, higher profitability and lower employee turnover rates (Arthur, 1994; Combs, Liu, Hall and Ketchen, 2006; Van De Voorde, Paauwe and Van Veldhoven, 2010). However, strategic human resource management (SHRM) research has been dominated by studies in private sector organizations, with the public sector largely ignored. As public organizations are now placed under increased pressure to provide citizens and service users with efficient and effective services, along with demonstrating value for money, scholars have begun to address the imbalance of public sector research by testing the effects of strategic HRM in public organizations. Private sector models have been applied in various forms to public sector organizations, as evident from shifts towards new public management initiatives (Bach and Kessler, 2007). In many countries, health care organizations, for example, are under pressure to improve service quality and safety, while at the same time optimize efficiency levels and patient well-being (Veld, Paauwe and Boselie, 2010). Similar pressures have been applied to governments at all levels, along with different types of public bodies, such as schools and universities, military defenses, museums, courts, police and international organizations (for example the UN and EU organizations) (Decramer, Smolders and Vanderstraeten, 2013).
... A grande volatilidade dos mercados a que muitas empresas estão sujeitas obriga a que cada vez mais as mesmas procurem melhorar a sua prestação nos negócios, apostando para isso nos seus colaboradores como fonte sustentável de vantagem competitiva (Van De Voorde et al. 2010). ...
... It can be stated that, effective human resource activities increases organizational performance is empirically verified by Voorde, De, Paauwe, Veldhoven, (2010) and Cappelli, Peter, Hefter, Anne, (1996). Therefore it can be stated that HRM functions are effectively contribute to the goodness of the organization and to overcome challenges listed above. ...
... In keeping with the longitudinal design advocated in research on the impact of HRM on firm performance (e.g. Boxall & Steeneveld, 1999;Cappelli & Neumark, 2001;Ichniowski et al., 1997;van de Voorde, Paauwe, & van Veldhoven, 2010;Wright, Gardner, Moynihan, & Allen, 2005;Youndt et al., 1996) the present study assesses HPWS and resources at one time and uses and firm performance at a second point in time, using what Wright et al. (2005) describe as one of the best "predictive" designs (p. 415). ...
This longitudinal study of professional service firms (PSFs) examines the linkage mechanisms through which high performance work systems (HPWS) influence firm performance. Two intervening mechanisms are theorized and examined. They are: (1) the resources that HPWS create, and (2) the uses to which both HPWS and these resources can be put. The resources we investigate are human, social and organizational capital, all of particular importance in knowledge-based professional service firms. The two uses which the resources facilitate and enable are the exploitation of the firm’s current capabilities and client base and the exploration of new alternative opportunities. We thus theorize a linkage model that incorporates HPWS-resources-uses-performance. Results from 93 Irish accounting firms support the mediation mechanisms in our linkage model wherein resources and the uses made of them link HPWS to firm performance. Implications are presented for theory and practice.
... Studies have shown a positive influence by HRM practices on company's performance. (Tenbrunsel at-al 1996); (Delery & D.H. 1996); (Guest, 1997); (Huselid, 1995); ; (Ichniowski at-al, 1997); (De Kok & L.M. 2001); (Litz & A. C. 2000); (MacDuffie 1995); (Schulze at-al, 2001); (Schulze at-al, 2003); (Welbourne & Andrews 1996); (Wynarczyk at-al, 1993); (Arthur, 1994); (Ngo at-al, 1998); (Bae & Lawler, 1998) ; (Fey & Bjorkman, 2001); (Becker & Gerhart, 1996) ; (Becker & Huselid, 1997); (Gratton at-al, 1999); (Becker & Huselid, 1998); (Paauwe, 2009); (Nishii & Wright, 2008); (Guest at-al, 2003); (D'Annunzio-Green, 2002); (Richardson & Thompson, 1999); (Voorde at-al, 2010). ...
Human resources have been regarded as the most important asset for any organization because of its essential part in achieving the sustainable competitive advantage and survival. Managing human resources is very challenging and requires an effective bundle of practices that contribute to attaining the organizational goals. This study tries to confirm the importance of HRM practices in small businesses which came to play a vital role in the economies of the world, through clarifying the influence of HRM practices on the organizational performance, using a mediating variable (employees’ outcomes). Also the study attempts to highlight the key role of governmental support from view point of small businesses, through verifying the significant relationship between governmental support and the organizational performance. It was hypothesized that HRM practices will be positively related to the organizational performance (financial & operational), and that employees’ outcomes would serve as a mediator in the relationship between HRM practices and performance. Also it was hypothesized that the governmental support will be positively related to organizational performance. Structural Equation Modelling (SEM) with Amos has been applied in this research. The research sample consist (265) small manufacturing businesses in Malaysia. The statistical results showed significant relationships in direct and indirect models of study, and partially mediated in mediation models.
DOI: 10.5901/mjss.2015.v6n1p97
... However, it should be noted that some of these data collection procedures may entail ethical challenges (Cowie et al., 2002). With respect to the measurement of the job characteristics, company records are valuable to achieve triangulation (Voorde, van de Paauwe, & van Veldhoven, 2010). However, some of these methods may be difficult to employ because an organization's willingness to grant access is likely to be low. ...
... In brief, these include identifying the target employee group in any study (rather than assuming that all employees in an organization are subject to the same HR system), gathering multiple responses from well-informed managers on their particular theory of HRM for this group, obtaining data from employees on their perceptions of, and responses, to management goals, practices and behaviours, locating proximal outcome measures that are not provided by the source(s) used for the independent variables and that are measured subsequent to them, and building longitudinal data sets, wherever possible (e.g. Gerhart 2007;Lepak et al. 2006 Nishii andWright 2008;Paauwe 2009;Van de Voorde, Paauwe and Van Veldhoven 2010;Wall and Wood 2005;Wright et al. 2005). As a result of these sorts of critical reflections on methods, the standard for what constitutes good data in any study of HR strategy and outcomes has risen, and this is a good thing. ...
This article argues that there are two lines of analysis in the high-performance work systems literature that are important for HR researchers and strategists. The first involves mapping the diversity that exists in work systems, and understanding which ones perform in which contexts and why. This line of analysis is most relevant where there are serious misfits between a firm's models of HRM and its strategic context. The second line of analysis can help to enhance performance in any firm. It involves analysing the chain of links inside the ‘black box’ of HRM, asking how managers envisage HRM, how they interpret and enact it, how it affects the psychological and social climates inside the organization, and for whom it performs. Following these lines of analysis, and improving our research methods, will make our discipline more relevant to the larger debate around economic and employee well-being in our societies.
... However, it should be noted that some of these data collection procedures may entail ethical challenges (Cowie et al., 2002). With respect to the measurement of the job characteristics, company records are valuable to achieve triangulation (Voorde, van de Paauwe, & van Veldhoven, 2010). However, some of these methods may be difficult to employ because an organization's willingness to grant access is likely to be low. ...
... Company records (Voorde, van de Paauwe, & van Veldhoven, 2010) and medical data (Hansen, et al., 2010;Hansen, et al., 2006) are valuable to achieve triangulation. However, some of these methods may be difficult to employ, as organisations' willingness to grant access to strategic sensitive data will be low. ...
This thesis aims to contribute to the feasibility of the risk control cycle by focusing on the
very first step of risk control, which is the identification of the hazard and its antecedents in
order to obtain a trustworthy benchmark or reference point. This is a condition sine qua non
for the next steps in the control cycle, i.e. the assessment of risk, the design of control
measures and the evaluation of intervention strategies to counteract workplace bullying. In
particular, identifying the targets of severe bullying, assessing risk groups and mapping job
characteristics associated with severe bullying are central to achieving this aim, and they are
therefore the focus of this thesis, which consists of four studies.
Purpose: Aligning employees' goals with organizational goals is an overarching objective of an organization to increase employees' outcomes and, ultimately, the firm’s performance. Employees' perceived goal congruence is proposed to be an important mediator of the effect of
high-performance work systems (HPWS) on organizational citizenship behaviors (OCB). We proposed and tested a moderated mediation model that depicted how servant leadership increased or restrained these effects.
Design/methodology/approach - This study used data from 56 managers and 322 employees working in Bangladeshi organizations. The study conducted cross-level analyses using hierarchical linear modeling (HLM) to examine the hypothetical relationships among variables.
Findings - This study revealed that employees' perceived goal congruence mediated the influence of HPWS on OCB. Consistent with the moderated mediation prediction, employee perceived goal congruence mediated the relationship between HPWS and OCB when servant
leadership is high.
Originality/value - This study examined how and when HPWS affects OCB by incorporating perceived goal congruence and servant leadership as mediating and moderating variables, respectively.
Yapılan araştırmalarda, her geçen gün insan kaynakları yönetiminde yeni yaklaşımların ortaya çıktığını ve hep daha iyisini yapabilmek adına bir takım girişimlerde bulunulduğu görülmektedir. Bu çalışmada, insan kaynakları yönetiminde hali hazırda bazı firmalarda kullanılmakta olan henüz çok fazla yaygınlaşmamış olan bir yaklaşım olan insan kaynakları yönetiminde burçların kullanılması ele alınmaktadır. Buradan hareketle çalışmanın amacı, insan kaynakları yöneticilerinin çalışanların burçlarına ve astrolojiye yönelik tutumlarının ölçülmesidir. Araştırmanın evreni İstanbul ilinde bulunan insan kaynakları departmanlarında çalışanlardan oluşmaktadır. Çalışma grubu araştırmayı temsil edebilecek kişilerden seçilmiştir. Veri toplama yönteminde nicel araştırma yöntemi kullanılmıştır. Alan yazın incelendiğinde konu ile ilgili yerli ve yabancı bir çalışmanın daha önce yapılmamış olması çalışmanın önemini ortaya koymaktadır. Araştırma bulgularına göre insan kaynakları yöneticilerinin burçlara ve astrolojiye yönelik tutum düzeyleri yüksek bulunmuştur. Araştırma sonuçlarının insan kaynakları yöneticilerine ve bu konu ile ilgili araştırma yapmak isteyenlere örnek olacağı değerlendirilmektedir. A NEW APPROACH TO HUMAN RESOURCES MANAGEMENT: MEASURING ATTITUDES TOWARDS ZODIAC ABSTRACT In the researches, it is seen that new approaches are emerging day by day in the human resource management and some attempts have been made in order to be able to do better. This study deals with the use of Zodiac in human resources management, an approach that has not yet become widespread, which is currently being used by some firms in human resource management. The aim of the study is to measure the attitudes of human resources managers towards the workers' signs and astrology. The universe of the research consists of people working in the human resources departments in Istanbul. The study group was selected from those who could represent the survey. Quantitative research method was used in data collection method. The field reveals the importance of studying whether the local and foreign studies related to the subject have not been done before. According to research findings, human resource managers' attitudes towards horoscopes and astrology were found high. It is evaluated that the results of the research will be an example to human resources managers and those who want to do research about this subject.
Most of the public managers are of the firm belief that extrinsic monetary rewards predominantly contribute to employee productivity and that the motivational strategies shall be aligned to sustain extrinsic motivation (EM) rather than intrinsic motivation (IM). A substantial body of literature on motivation does not endorse this perspective. A relook of the present motivational strategies in central public sector enterprises (CPSEs) in India and an evaluation of the suitability of these strategies as drivers of agility are quite appropriate at this juncture. The purpose of this article is to examine the effects of IM and EM on work performance (WP) in CPSEs, in the context of workforce agility. This article also analyses the relationship between EM and IM in public sector settings. Data collected from 371 employees of five selected CPSEs were analysed. We found that the effect of IM on WP is stronger than the effect of EM on WP in CPSEs. We also found that EM influences IM positively. The study offers insights to public managers to review the existing motivation strategies and to focus on enhancing the IM for an inevitable agile transformation.
With the growing number of studies investigating employee perceptions of HR practices, the field of SHRM is challenged with monitoring how cumulative insights develop. This paper presents a systematic review on employee perceptions of HR practices in terms of 1) how they are examined (as an antecedent, mediator, or outcome), 2) the theoretical perspectives that explain this construct, and 3) the type of conceptualizations of employee perceptions of HRM that have been used in the extant SHRM research. The findings illustrate how scattered current approaches are in terms of how employee perceptions of HRM have been examined. In addition, a range of theoretical frameworks that advocate and support the employee perspective on HRM have been used, showing that a single perspective on employee perceptions of HRM seems infeasible. Finally, a variety of descriptive and evaluative conceptualizations have been used. Recommendations and avenues for future research to gain a more comprehensive understanding of employee perceptions of HRM are provided.
Human resource management (HRM), or the management of people in organisations, can contribute to achieving organisational goals. These goals are strongly related and partly dependent on challenges. This chapter provides an overview of the potential contribution of HRM to performance. There are three leading guidelines for the discussion presented here. First, why does HRM potentially contribute to performance? The resource-based view, the VRIO framework and the human capital theory provide frameworks for answering the ‘why’ question. The second guideline or question in this chapter was does HRM contribute to performance? The empirical evidence shows the added value of people management. Simply applying ‘best practice’ is not likely to solve major organisational issues. In theory, HRM practices affect employee outcomes such as satisfaction and motivation. The third question of the chapter was very much focused on under which conditions HRM contributes to performance. Contextual notions are important for getting a full understanding of HRM and performance. The internal and external organisational context is significant in the shaping of human resource management in the organisation and the potential added value of HRM to performance.
This study examines the use of the cost/benefit argument by human resources professionals in municipal sector organizations. The analysis compares their approach to the social influence exercised by line managers. Drawing from critical incidents generated from in-depth interviews, the results suggest that human resources professionals and line managers use the cost/benefit argument in much the same way with greater use of the weak form. Both groups exert influence through rational persuasion in the form of ‘light’ financial arguments. A second wave of data collection was initiated to add the perspective of city managers relative to the use of this form of rational persuasion by human resources professionals and public works managers. Content analysis of the interviews conducted with city managers was revealing of different views of the public works and human resources departments, suggesting that the use of the stronger form of the cost/benefit argument by human resources professionals may actually be associated with lower influence capability.
Purpose
Addressing the continuing productivity challenge, the purpose of this paper is to analyze data from the National Health Service on employee involvement (EI) in order to gain critical insights into how employees’ shared perception of EI in organizational decision making (i.e. EI climate) might address two persistent issues: how to enhance positive staff attitudes and improve organizational performance. In doing so, the authors respond to recent calls for more multilevel research and extend previous research on EI climate by attending to both EI climate level and EI climate strength.
Design/methodology/approach
Data from 4,702 employees nested in 33 UK hospitals were used to test the moderating role of EI climate strength in the cross-level EI climate level employee level-attitudes relationship and in the organizational-level EI climate-organizational effectiveness relationship.
Findings
The results of the multilevel analyses showed that EI climate level was positively associated with individual-level employee attitudes (i.e. job satisfaction, organizational commitment). Further the results of the hierarchical regression analysis and the ordinal logistic regression analysis showed that EI climate level was also related to organizational effectiveness (i.e. lower outpatient waiting times, higher performance quality). In addition, both analyses demonstrated the moderating role of EI climate strength, in that the positive impact of EI climate level on employee attitudes and organizational effectiveness was more marked in the presence of a strong climate compared to a weak EI climate.
Practical implications
By creating and maintaining a positive and strong climate for involvement, hospital managers can tackle the productivity challenge that UK hospitals and health care institutions more generally are currently facing while improving the attitudes of their employees who are critical in the transformative process and ultimately underpin the organizational success.
Originality/value
This is the first study which provides evidence that favorable and consistent collective recognition of EI opportunities by staff contributes to enhance both employee attitudes and hospital performance. Results highlight the role of EI climate strength and underscore its importance in future research and practice.
Human resource management is often cited as a variable that positively influences the performance of organizations. Arguments and theoretical proposals of similar content have increased in the literature, yet there is very little research that sheds light on this relationship in Brazilian companies. Accordingly, a survey was conducted in order to check empirically whether the human resource management positively influences the operational performance of companies in the Brazilian automotive industry focusing on the segment of automotive parts and components. Methodologically, a survey of 75 companies in the sector aforementioned was carried out; the data were analyzed using Structural Equation Modeling, a second-generation multivariate analysis. The main hypothesis was confirmed indicating that human resource management is indeed positively related to the operational performance of the companies studied.
The aim of this study was to explore the differences and similarities in the utilization of high-performance work systems (HPWS) in Chinese and Irish professional service firms (PSFs). Using data collected from 112 Chinese and 120 Irish accounting firms, we found that Chinese PSFs demonstrate higher scores in selective recruitment and contingent remuneration, while Irish PSFs show higher scores in performance management and training. Chinese and Irish PSFs employed similar levels of information sharing and participation and had similar scores on an overall HPWS index. Consistent results were found for the positive relationship between HPWS and organizational performance in both Chinese and Irish PSFs despite their different utilization of HPWS elements. This cross-national study provides insights into the differences between eastern and western approaches in managing human resources in the professional service context and demonstrates the potential value of using HPWS to improve performance in PSFs.
With data collected from 632 manufacturing firms in South Korea, we investigated (1) the relationship between high-performance work systems (HPWSs) and firm performance, and (2) the moderating effect of the human resource (HR) function’s influence on the relationship between HPWSs and firm performance. Our findings showed the existence of both the main effect of HPWSs, supporting the universalistic perspective, and the moderating effect of the HR function’s influence, supporting the contingency perspective. Based on the findings, we concluded that HPWSs can be regarded as universal or best practices; at the same time, the presence of an influential HR function may intensify the effect of HPWSs on firm performance. This study contributes to the debate over the respective merits of the universalistic and contingency perspectives by showing that the two perspectives are not necessarily incompatible; rather, they can be complementary.
Talent Acquisition (TA) is an important function within HR, responsible for recruiting high quality people for given job positions through various sources under stringent deadlines and cost constraints. Given the importance of TA in the overall successful operations and growth of any organization, in this paper we identify specific " business questions " focused on analyzing various aspects of the TA processes, analyze past TA data using statistical analysis techniques and to discover novel patterns/insights and actionable knowledge which can help in improving the cost, efficiency and quality of recruitments. Our predictive analytics is mainly related to various durations and delays in TA, candidate selection or rejection, offer acceptance by selected candidates, root cause analysis for offer decline. We also use the data-mining technique of subgroup discovery to identify interesting patterns (e.g., candidate subgroups having unusually high decline ratios). We illustrate the approaches through a real-life dataset.
Purpose
– The purpose of this paper is to better understand the indirect link between high-performance work systems (HPWSs) and firm performance in Chinese professional service firms (PSFs) by investigating the mediating role of organizational ambidexterity, i.e. a firm’s capability to simultaneously explore new ideas and exploit existing resources.
Design/methodology/approach
– Data were collected from 120 Chinese accounting firms. The authors used hierarchical and polynomial regression analyses to test their hypotheses.
Findings
– The proposed positive link between the HPWS and organizational ambidexterity was found. Further, the results showed a non-linear relationship between organizational ambidexterity and organizational performance.
Research limitations/implications
– The present study is limited in terms of small sample size, single industry and self-report data.
Practical implications
– Firms which reported a higher level of HPWS demonstrated better performance due to their organizational capability to explore new ideas and exploit existing resources. In the Chinese context, firms that had high levels of exploration (exploring new resources) and exploitation (exploiting existing resources) or that had a high level of exploration experienced higher performance. The authors can conclude from these findings that without exploration, organizational success is difficult to achieve for PSFs.
Originality/value
– This is the first study examining the underlying mechanism of organizational ambidexterity in the indirect relationship between HPWS and firm performance in Chinese PSFs. It advances the authors understanding of HPWS and firm performance relationship in an Eastern country and an emerging context of PSFs. This is also the first study to use polynomial regression to operationalize organizational ambidexterity.
Professor Bruce Kaufman's look back at two seminal books published at the beginning of the strategic HRM field and examination of two recent books to trace the evolution of the field identifies some issues, but ones with which the field has dealt for a number of years. His choice of our book HRM and Performance provided the wrong target, and consequently his analysis seemed to miss the mark. © 2015 Wiley Periodicals, Inc.
The practices and problems
of performance management and
measurement in HR departments
The ways in which human resource management
and human resource (HR) departments can add
strategic value to organizational performance is
a topic of lively discussion in the literature on
strategic human resource management. The expectations
of shareholders as primary stakeholders
have been emphasized throughout the evolution
of strategic human resource management.
Therefore, the effectiveness of HR departments
has mainly been considered from this perspective.
The present study focuses on evaluating
performance management and measurement
in HR departments by considering the expectations
of stakeholders. According to the research
results, there clearly is a need for a multidimensional
model to evaluate the effectiveness of HR
departments. Since there are many perspectives,
practices, problems, and stakeholders related to
the performance management of HR departments,
there are also varied evaluation styles.
Thus, the assessment practices are also diverse
in terms of methods and measurement tools.
The practical results of this study indicate that
performance management and measurement in
HR departments require a broader stakeholder
perspective. Furthermore, the study emphasizes
the importance of developing relevant and
meaningful models for measuring the performance
of HR departments while acknowledging
that the actual metrics used may vary from
business to business.
Human resource management is an essential part of every project manager's responsibilities. The purpose of this research is to examine the factors to improve the human resource productivity and performance of the employees working under a project. The major factors affecting in human resources productivity are: effective communication between the employees and teams, innovation and creativity opportunities, employee facilities, performance assessment, reasonable payment, employee attitude to the work, professional factors, effective management, training, location and political factors and human resource availability. The effective management and leadership factor will have the most effect on human resources productivity in a project.
Purpose
The purpose of this study is to investigate the impact of an integrated HRM system (content, process and climate) on employee reactions (motivation, commitment, work engagement, and organizational citizenship behaviour (OCB)), through the mediating role of organizational justice (distributive, procedural and interactional) and organizational trust (integrity, competence and dependability), which has not been fully studied in the past.
Design/methodology/approach
The study is based on a national sample of 133 organizations from the public and private sectors in Greece and on data obtained from 1,061 employees. The statistical method employed is structural equation modelling.
Findings
The findings of the study suggest that the HRM process has a higher impact on employee reactions than HRM content. Additionally, the findings support the idea that procedural and distributive justice are related more to trust dependability and integrity, and that procedural justice is a better predictor of employee reactions than distributive justice.
Research limitations/implications
The study does not allow for dynamic causal inferences because the data was collected using a questionnaire at a single point in time. Furthermore, the findings of the study may not generalize across borders, because the study was applied in the Greek context, which has different labour relations with respect to other countries.
Practical implications
The study has clear implications for both managers and decision makers, because it suggests that employees are more committed and satisfied when the HRM system is more consistent and distinctive, more rewarding and provides opportunities for training.
Originality/value
The theoretical significance of the study is important, because it suggests that both the content and the process of HR practices, as perceived by employees, strongly influence employees' reactions, such as motivation, commitment, work engagement and organizational citizenship behaviour OCB.
Contemporary organizations increasingly recognize human resource (HR) capabilities as a source of sustained competitive advantage; about 80% of an organization's value is attributable to intangible assets, including human assets and capital. Some scholars consider effective human resource management (HRM) the single most important factor affecting organizational performance. This study examined (1) the extent to which HRM strategies were included in organizational strategic planning and (2) the association between the involvement of senior HR professionals in strategic planning and the use of innovative HR practices in U.S. hospitals employing strategic HRM theory. A survey was administered to 168 chief executive officers and HR executives from 85 hospitals during spring 2005. Binary logistic regression was conducted to determine whether HRM involvement was associated with the use of innovative HRM strategies in the hospitals. We found significant associations between HRM strategy inclusion in the strategic planning process and senior HR professionals' involvement in organizational strategic planning and in three innovative HR activities: finding talent in advance for key job openings (odds ratio [OR] = 4.61, 95% confidence interval [CI]: 1.10-7.38), stressing organizational culture and values in the selection process (OR = 3.97, 95% CI: 1.01-3.97), and basing individual or team compensation on goal-oriented results (OR = 6.17, 95% CI: 1.17-3.37). Our data indicate that innovative HR practices were underused in some U.S. hospitals despite their potential to improve overall hospital performance. Hospitals that emphasized effective HRM were more likely to use some of the innovative HR approaches. In this article, we discuss this research and the practical implications of the findings.
This article focuses on methodology in the literature on human resources (HR) management and performance. Whenever a theoretical model of HR and performance is tested and estimated using empirical data, a binary decision regarding whether the model is supported (yes or no) is typically made. If support is found, it is either because the model is correct or the method is wrong (i.e. a false positive, or Type I, error of inference). If support is not found, it is either because the model is wrong or the method is wrong (i.e. a false negative, or Type II, error of inference). The article hopes to help readers to better evaluate the contribution of published research on HR and performance. Second, it hopes to help authors in preparing their work for publication and avoid problems that may otherwise lengthen the review process or adversely affect the publication decision.
It is often assumed that research over the last decade has established an effect of human resource management (HRM) practices on organizational performance. Our critical assessment of existing studies finds that, although collectively they have opened up a promising line of inquiry, their methodological limitations make such a conclusion premature. We argue that future progress depends on using stronger research methods and design that, in turn, will require large-scale long-term research at a level of magnitude that probably can only be achieved through partnerships between research, practitioner and government communities. We conclude that progress so far justifies investment in such big science.
We evaluated the impact of human resource (HR) managers' capabili- ties on HR management effectiveness and the latter's impact on corpo- rate financial performance. For 293 U.S. firms, effectiveness was asso- ciated with capabilities and attributes of HR staff. We also found rela- tionships between HR management effectiveness and productivity, cash flow, and market value. Findings were consistent across market and accounting measures of performance and with corrections for biases.
I explore the promise organization research offers for improved management practice and how, at present, it falls short. Using evidence-based medicine as an exemplar, I identify ways of closing the prevailing "research-practice gap", the failure of or-ganizations and managers to base practices on best available evidence. I close with guidance for researchers, educators, and managers for translating the principles governing human behavior and organizational processes into more effective manage-ment practice.
Although there is growing evidence that high performance work practices (HPWPs) affect organizational performance, varying sample characteristics, research designs, practices examined, and organizational performance measures used has led extant findings to vary dramatically, making the size of the overall effect difficult to estimate. We use meta-analysis to estimate the effect size and test whether effects are larger for (a) HPWP systems versus individual practices, (b) operational versus financial performance measures, and (c) manufacturing versus service organizations. Statistical aggregation of 92 studies reveals an overall correlation that we estimate at .20. Also, the relationship is stronger when researchers examine systems of HPWPs and among manufacturers, but it appears invariant across performance measures. We use our findings as a basis to offer 4 suggestions intended to shape research practices such that future meta-analyses might answer today's emerging questions.
We describe why human resource management (HRM) decisions are likely to have an important and unique influence on organizational performance. Our hope is that this research forum will help advance research on the link between HRM and organizational performance. We identify key unresolved questions in need of future study and make several suggestions intended to help researchers studying these questions build a more cumulative body of knowledge that will have key implications for both theory and practice.
The relationship between HRM and firm performance has been a hotly debated topic over the last decade, with the great bulk of the primary scientific research coming from the USA and, to a lesser extent, the UK. We start with an overview of this research to give a frame of reference to compare the findings from the Netherlands. By comparing the results of research in the Netherlands with those in the USA and the UK we hope to reveal the secret of achieving 'competitive advantage through people' (Pfeffer, 1994) in the Netherlands. The comparison may further allow us to supplement resource-based approaches with a more institutional perspective.
Presents methods for assessing agreement among the judgments made by a single group of judges on a single variable in regard to a single target. For example, the group of judges could be editorial consultants, members of an assessment center, or members of a team. The single target could be a manuscript, a lower level manager, or a team. The variable on which the target is judged could be overall publishability in the case of the manuscript, managerial potential for the lower level manager, or a team cooperativeness for the team. The methods presented are based on new procedures for estimating interrater reliability. For such situations, these procedures furnish more accurate and interpretable estimates of agreement than estimates provided by procedures commonly used to estimate agreement, consistency, or interrater reliability. The proposed methods include processes for controlling for the spurious influences of response biases (e.g., positive leniency and social desirability) on estimates of interrater reliability. (49 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This paper comprehensively examined the linkages between systems of High Performance Work Practices and firm performance. Results based on a national sample of nearly one thousand firms indicate that these practices have an economically and statistically significant impact on both intermediate outcomes (turnover and productivity) and short- and long-term measures of corporate financial performance. Support for the predictions that the impact of High Performance Work Practices is in part contingent on their interrelationships and links with competitive strategy was limited.
[Excerpt] Strategic human resource management refers to the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals (Wright & McMahan, 1992). It involves all of the activities that are implemented by an organization to affect the behavior of individuals in an effort to implement the strategic needs of a business. Over the last decade or so, the field of strategic human resource management has witnessed a progression through a number of stages, including a) initial excitement and energy around the convincing argument that HR practices should be considered as a system that, when implemented appropriately, can enhance organizational performance; b) empirical tests of this argument, and c) critiques of the growing field accompanied by propositions for how thinking on the topic can be expanded and improved. Of the critiques that have been levied at the field, the most common contend that the “black box” through which HRM practices are thought to impact organizational performance remains insufficiently specified. Less common, but no less valuable, are critiques surrounding the conceptualization and measurement of fit or alignment, and the need to identify the boundary conditions that influence the effectiveness of “high performance” HRM systems. Even more critiques and proposed theoretical extensions to the field are likely, as it is through such endeavors that we will improve upon and advance our science (cf. Reichers & Schneider, 1990).In this chapter, we introduce and discuss another potential critique of the SHRM field, and, in so doing, hope to illuminate a number of important research questions for the future. In particular, we are concerned with the lack of attention which has been paid to variability within SHRM research. By variability we mean variability at all relevant levels of analysis, but particularly variability within organizations (i.e., individual and group levels). It is our contention that by failing to examine the potential role of variability in SHRM research, we miss a very interesting and important part of the picture.
Much progress has been made with regard to theory building and application in the field of Strategic Human Resource Management (HRM) since Wright and McMahan?s (1992) critical review. While researchers have increasingly investigated the impact of HR on economic success within the Resource Based view of the firm, and have developed more middle level theories regarding the processes through which HR impacts firm performance, much work still needs to be done. This paper examines how future theorizing in SHRM should explore the concepts of time, cause, and individuals. Such consideration will drive more longitudinal research, more complex causal models, and consideration of multi-level phenomena.
In 1996, Becker and Gerhart noted that much of the work on human resources (HR) and performance had traditionally been conducted at the individual level of analysis. However, in the 1990s, empirical research on HR and performance increasingly moved to the plant/unit and firm level of analysis with a new emphasis on understanding how HR practices influence business performance at these higher levels. In the present article, I describe the empirical findings of this evolving literature, unanswered questions, and an approach to the issue that differs from what has come to be the typical approach over the past 10 years or so.
Employee attitude data from 35 companies over 8 years were analyzed at the organizational level of analysis against financial (return on assets; ROA) and market performance (earnings per share: EPS) data using lagged analyses permitting exploration of priority in likely causal ordering. Analyses revealed statistically significant and stable relationships across various time lags for 3 of 7 scales. Overall Job Satisfaction and Satisfaction With Security were predicted by ROA and EPS more strongly than the reverse (although some of the reverse relationships were also significant); Satisfaction With Pay suggested a more reciprocal relationship with ROA and EPS. The discussion of results provides a preliminary framework for understanding issues surrounding employee attitudes, high-performance work practices, and organizational financial and market performance.
The paper decomposes GDP both in terms of level per capita and growth rate, so as to identify the sources of income differences and of economic growth for all EU27 member states. This accounting approach has multiple advantages, although a number of substantial caveats should be borne in mind when interpreting the results. In particular, the detailed accounting approach helps distinguish exogenous from policy-influenced growth drivers. The combination of lower per-hour productivity and lower labour utilisation is the cause of relatively low per capita GDP in euro area and EU15 countries, while weak productivity remains the main concern in the new member states. GDP growth rate has been broken down into 12 items, including an indicator of labour quality, based upon the composition of employment by educational attainment.
Studies of how different work practices affect organizational performance have suffered from methodological problems. Especially intractable has been the difficulty of establishing whether observed links are causal or merely reflect pre-existing differences among firms. This analysis uses a national probability sample of establishments, measures of work practices and performance that are comparable across organizations, and, most important, a unique longitudinal design incorporating data from a period prior to the advent of high-performance work practices. The conclusion most strongly supported by the evidence is that work practices transferring power to employees, often described as 'high-performance' practices, raise labor costs per employee, suggesting that they may raise employee compensation. Higher compensation is a cost to employers, although some statistically weak evidence points to these practices raising productivity. The authors find little effect of high-performance work practices on overall labor efficiency, which they measure as the output per dollar spent on labor. (Author's abstract.)
The relationship between HRM and performance was explored in 366 UK companies using objective and subjective performance measures and cross-sectional and longitudinal data. Using objective measures of performance, greater use of HRM is associated with lower labour turnover and higher profit per employee but not higher productivity. After controlling for previous years' performance, the association ceases to be significant. Using subjective performance estimates, there is a strong association between HRM and both productivity and financial performance. The study therefore confirms the association between HRM and performance but fails to show that HRM causes higher performance. Copyright Blackwell Publishing Ltd/London School of Economics 2003..
Human resource management (HRM), the management of work and people towards desired ends, is a fundamental activity in any organization in which human beings are employed. It is not something whose existence needs to be elaborately justified: HRM is an inevitable consequence of starting and growing an organization. This article focuses on the scope of HRM and its major subfields. For example, Micro HRM ('MHRM') covers the subfunctions of HR policy and practice.
Many talk about measuring human resources (HR), but get lost because the issues are confusing. What to measure? How to measure it? When to measure? Where to measure? These questions make measurement of HR difficult. This article reviews the history of HR measurement; summarizes how HR measures may be done for professionals, prac- tices, and functions; and offers specific guidelines for improving HR measures. © 1997 John Wiley & Sons, Inc.
Recent evidence has suggested that attitudes-organizational effectiveness relations may exist. Relations between employee attitudes, organizational unit performance, customer satisfaction, and turnover were examined at the branch level for a large automobile finance company. Using data from 142 branches in 2 consecutive years, several significant relations between attitude factors and performance were observed. In addition, causal analyses conducted at the branch level suggested that customer satisfaction led to employee attitudes, rather than the opposite. Additional analyses to explain this result suggested that economic conditions and related factors might be the causal mechanism at the aggregated level. Other potential interpretations of these findings and caveats about generalizing organizational-level findings to the individual level are discussed.
Research exploring the relationship between human resource management (HRM) and outcomes such as corporate performance encounters a range of significant practical difficulties. Using two surveys as illustrative cases, this paper examines the practical challenges of operationalizing and measuring HRM, measuring the various outcomes and assessing the relationship between HRM and corporate performance. Despite the problems, it is suggested that significant progress has been made. While possible solutions to some of the problems are put forward, it is argued that a key requirement remains more clearly specified theory, particularly theory about the nature of HRM.
This research focuses on the strategic alignment of a firm's human resources. Specifically, I investigate employee ‘line of sight’ to an organization's strategic objectives. Line of sight is conceptualized as an employee's understanding of an organization's objectives and how to contribute to those objectives. Line of sight was expected to vary across individual characteristics (e.g. hierarchical level, tenure) and relate to important work outcomes (e.g. work attitudes, turnover). Results of a field study confirmed many of the hypotheses, supporting the importance of this construct to research and practice.
Are there concrete examples of how the “soft” HR factors can be made tangible and, what's more, meaningful to the business? In this article we give an answer to this frequently asked question. We show how Deutsche Bank's HR function consistently developed the range of employee surveying instruments to become pivotal to the Group's success. This is part of a wider effort in recent years to achieve a change of direction for the HR function, making it a strategic partner to the business. © 2002 Wiley Periodicals, Inc.
This article reviews progress in the search for a 'bundle' of HR practices, using the work of MacDuffie as a starting point for the analysis of the concept of a bundle. The different methods by which bundles might be identified are reviewed and sequential tree analysis is presented as a possible alternative approach. It is then tested alongside factor analysis and regression on accounts of HR practices and aspects of performance provided by a sample of 1,308 managers. The results show that sequential tree analysis does identify a relatively parsimonious set of practices; these overlap partly with those identified in factor analysis and more extensively with those occurring in regression analysis but are more interpretable and therefore potentially more useful for policy-makers.
In tracing the history of human resource accounting, most reviewers would agree that the topic is now experiencing something of a revival. This research set out to explore why HR accounting is regarded as important, to whom it is important and its links with organisational and HR strategies. We used a survey-questionnaire approach to gather data. A scale was developed measuring the extent to which respondents thought each item reflected their organisation's view on the importance of measuring of human resources. Component analysis revealed two reasons why measuring human resources is perceived as being important. The first illustrates the view that 'measurement reflects the strategic and competitive importance of human resources', while the second suggests that, 'to earn credibility, HRM must be expressed in financial terms'. Further analysis highlighted the importance of senior management and financial managers' support for measuring human resources and drew attention to what may appear to be a 'hard view' of HRM held by HR managers in relation to why they consider this important.
There is a growing body of evidence supporting an association between what are termed high performance or high commitment human resource management (HRM) practices and various measures of organizational performance. However, it is not clear why this association exists. This paper argues that to provide a convincing explanation of this association we need to improve our theoretical and analytic frameworks in three key areas. These are the nature of HRM, and especially the rationale for the specific lists of HR practices; the nature of organizational performance; and the linkage between HRM and performance. A model is presented within which to explore these linkages. The existing literature on HRM and performance is reviewed in the light of this analysis to identify key gaps in knowledge and help to focus further the research priorities.
Describes the Job Diagnostic Survey (JDS) which is intended to (a) diagnose existing jobs to determine whether (and how) they might be redesigned to improve employee motivation and productivity and (b) evaluate the effects of job changes on employees. The instrument is based on a specific theory of how job design affects work motivation, and provides measures of (a) objective job dimensions, (b) individual psychological states resulting from these dimensions, (c) affective reactions of employees to the job and work setting, and (d) individual growth need strength (interpreted as the readiness of individuals to respond to "enriched" jobs). Reliability and validity data are summarized for 658 employees on 62 different jobs in 7 organizations who responded to a revised version of the instrument. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
For each of three 1-year time periods, we examined the relationship between changes in the team leadership of branch managers (as measured by employee ratings) and concomitant changes in customer satisfaction for branches of a regional bank. Specifically, for the time period 2001–2002, we examined concomitant changes in team leadership and customer service satisfaction with 68 branch managers; between 2002–2003 and 2003–2004 we examined these relationships for 46 and 40 of the remaining 68 branch managers, respectively. We expected that improvements (declines) in team leadership ratings would be accompanied by concomitant changes (i.e., improvement or decline) in customer satisfaction ratings. We found that, in 2 of the 3 time periods we examined, improvements (declines) in team leadership were related to improvements (declines) in customer satisfaction. We interpret these findings using the service climate literature.
This article discusses the numerous pitfalls and measurement biases that need to be considered in building effective measurement systems to assess human resources. It presents arguments that there is little convincing evidence that existing measurement practices do very well in dealing with these issues and much to suggest they do not. One further issue is raised which potentially dwarfs the other concerns: the politics of the measurement process and its likely effect on the human resource function. An alternative perspective is also offered to that traditionally advanced by, for example, finance, which sees the firm as a portfolio of assets to be bought and sold. © 1997 John Wiley & Sons, Inc.
Our earlier article in Personnel Psychology demonstrated how general-izability theory could be used to obtain improved reliability estimates in the human resource (HR) and firm performance literature and that correcting for unreliability using these estimates had important implications for the magnitude of the HR and firm performance relationship. In their comment, Huselid and Becker both raise criticisms specific to our study and broad issues for the field to consider. In our present article, we argue, using empirical evidence whenever possible, that the issues and criticisms raised by Huselid and Becker do not change our original conclusions. We also provide new evidence on how the reliability of HR-related measures may differ at different levels of analysis. Finally, we build on Huselid and Becker's helpful discussion of broad research design and strategy issues in the HR and firm performance literature in an effort to help researchers make better informed choices regarding their own research designs and strategies in the area.
Readers who want a less mathematical alternative to the EQS manual will find exactly what they're looking for in this practical text. Written specifically for those with little to no knowledge of structural equation modeling (SEM) or EQS, the author's goal is to provide a non-mathematical introduction to the basic concepts of SEM by applying these principles to EQS, Version 6.1. The book clearly demonstrates a wide variety of SEM/EQS applications that include confirmatory factor analytic and full latent variable models.
The last decade of empirical research on the added value of HRM, also known as the ‘HRM and performance’ debate, demonstrates evidence that HRM does matter (Huselid, 1995; Guest et al, 2003; Wright et al, 2003). Unfortunately, the relationships are often statistically weak and the remlts ambiguous. This article reviews and attempts to extend the theoretical and methodological issues in this debate. Its aim is to build an agenda for future research in this area. A brief overview of achievements to date is followed by the theoretical and methodological issues related to what constitutes HRM, what is meant by the concept of perfomzance and the nature ofthe link between these two. In the final section, it is argued that research designs should start from a multi-dimensional concept of performance, including the perceptions ofemployees; and build on the premise of HR systems as an enabling device for a whole range of strategic options. This implies a reversal of the strategy-HRM linkage.
This is an overview of what the authors believe to be every empirical research article into the linkages between HRM and performance published in pre-eminent international refereed journals between 1994 and 2003. The analysis covers the design of the study, including the primary level of analysis and the identity of the respondents; the dominant theoretical framework(s) informing the article; how HRM is conceived and operationalised; how performance is conceived and operationalised; and which control and/or contingency variables are incorporated. Finally, the article examines how each study depicts the so-called ‘black box’ stage between HRM and performance. It reports wide disparities in the treatment of these components, but also some welcome commonalities and indicative trends that point towards a gradual convergence on how future research into this complex relationship might usefully be conducted. The findings are compared with previous reviews of the literature. The analysis should illuminate the ongoing debate about the linkages between HRM and performance, and prove valuable for future research designs.
The notion of a high-performance work system (HPWS) constitutes a claim that there exists a system of work practices for core workers in an organisation that leads in some way to superior performance. In this article, we dissect this fuzzy notion and examine its companion terminology: high-involvement work systems and high-commitment management. We argue that a focus on the high-involvement stream usefully grounds HPWS studies in an important area of workplace change in the current context and takes us away from eclectic and contentious selections of ‘best practices’. We review research models and findings in this stream. The path to better research lies in examining the underpinning processes experienced by workers when management seeks to pursue high-involvement systems, and charting their links to employee and operational outcomes.
This paper presents a framework for organizational analysis. The empirically derived approach does not emerge from the observation of actual organizations, but from the ordering, through multivariate techniques, of criteria that organizational theorists and researchers use to evaluate the performance of organizations.
In a two-stage study, organizational theorists and researchers were impaneled to make judgments about the similarity of commonly used effectiveness criteria. The model derived from the second group closely replicated the first, and in convergence suggested that three value dimensions (control-flexibility, internal-external, and means-ends) underlie conceptualizations of organizational effectiveness.
When these value dimensions are juxtaposed, a spatial model emerges. The model serves a number of important functions. It organizes the organizational effectiveness literature, indicates which concepts are most central to the construct of organizational effectiveness, makes clear the values in which the concepts are embedded, demonstrates that the effectiveness literature and the general literature on organizational analysis are analogues of one another, and provides an overarching framework to guide subsequent efforts at organizational assessment.
This Study addresses the issue of whether positive employee attitudes and behaviors influence business outcomes or whether positive business outcomes influence positive employee attitudes and behaviors. We hypothesize that employee satisfaction, organizational citizenship behavior, and employee turnover influence profitability and customer satisfaction. Data were gathered from the units of a regional restaurant chain via employee surveys, manager surveys, customer surveys, and organizational records. Cross-lagged regression analyses show that employee attitudes and behaviors at Time 1 are related to organizational effectiveness at Time 2. Additional cross-lagged regression analyses show no significant relationship between organizational effectiveness at Time 1 and the employee attitudes and behaviors at Time 2. These results add to the evidence that HR outcomes influence business outcomes, rather than the other way around. [ABSTRACT FROM AUTHOR] Copyright of Personnel Psychology is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
A great gap to be filled -- People drive value -- Measuring human capital -- The worth of people as assets -- Capability and potential -- Maximizing human capital -- Motivation and commitment -- Innovation and learning -- The value that people create -- Mergers, acquisitions and alliances -- Telling the world
This title adopts a broad perspective that takes into account not only the strategic dimension of human resources management (HRM), but the professional and societal dimension. It combines academic research with a focus on practical conclusions and recommendations.
The construct of Human Resource (HR) Attributions is introduced. We argue that the attributions that employees make about the reasons why management adopts the HR practices that it does have consequences for their attitudes and behaviors, and ultimately, unit performance. Drawing on the strategic HR literature, we propose a typology of five HR-Attribution dimensions. Utilizing data collected from a service firm, we show that employees make varying attributions for the same HR practices, and that these attributions are differentially associated with commitment and satisfaction. In turn, we show that these attitudes become shared within units and that they are related to unit-level organizational citizenship behaviors and customer satisfaction. Findings and implications are discussed.
Significant research attention has been devoted to examining the relationship between HR practices and firm performance, and the research support has assumed HR as the causal variable. Using data from 45 business units (with 62 data points), this study examines how measures of HR practices correlate with past, concurrent, and future operational performance measures. The results indicate that correlations with performance measures at all three times are both high and invariant, and that controlling for past or concurrent performance virtually eliminates the correlation of HR with future performance. Implications are discussed.
Full-text of this article is not available in this e-prints service. This article was originally published [following peer-review] in Journal of organizational behavior, published by and copyright John Wiley. This paper describes the development and validation of a multidimensional measure of organizational climate, the Organizational Climate Measure (OCM), based upon Quinn and Rohrbaugh's Competing Values model. A sample of 6869 employees across 55 manufacturing organizations completed the questionnaire. The 17 scales contained within the measure had acceptable levels of reliability and were factorially distinct. Concurrent validity was measured by correlating employees' ratings with managers' and interviewers' descriptions of managerial practices and organizational characteristics. Predictive validity was established using measures of productivity and innovation. The OCM also discriminated effectively between organizations, demonstrating good discriminant validity. The measure offers researchers a relatively comprehensive and flexible approach to the assessment of organizational members' experience and promises applied and theoretical benefits.
The Workforce Scorecard, Managing Human Capital to Execute Strategy
- M A Huselid
- B E Becker
- R W Beatty
Huselid, M.A., Becker, B.E. and Beatty, R.W. (2005). The Workforce Scorecard, Managing Human Capital
to Execute Strategy, Boston, MA: Harvard Business School Publishing Corporation.
AMOS (Version 6.0) [Computer program]
- J Arbuckle
Arbuckle, J. (2005). AMOS (Version 6.0) [Computer program]. Chicago, IL: SPSS.