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Effects of Human Resource Systems on Manufacturing Performance and Turnover
... To construct the integrated dataset for the present study, variables were generated using three sub-datasets. First, following previous studies (Huselid 1995;Choi et al. 2021;Arthur 1994), employee turnover rate and firm sales were used as the outcome variables. The employee turnover rate was calculated by dividing the number of employees who left the firm by the total number of employees each year. ...
... For employee turnover, 7 variables are included in the top 12 important variables. The results are consistent with those of previous studies that showed HR practices and implementation matter (Huselid 1995;Jiang et al. 2012;Combs et al. 2006;Arthur 1994). Although causality analysis unveiled the relative importance of all the independent variables, it did not provide information on their directions of effects. ...
... They are also the 4th and 13th important variables in predicting employee turnover. Previous studies have suggested that training and development increase firm performance and decrease turnover intention (Arthur 1994;Shuck et al. 2014). However, our results showed that the effects are more complex than previously suggested. ...
An organization’s human resource management practices are essential for its competitive advantage. This study specifically examined human resource (HR) practices that predict corporate performance (employee turnover and firm sales) based on a backpropagation neural network (BPN)-based causality analysis. This study aims to test how to optimize human resource practices to improve organizational performance. This study elucidated the effect of HR practices and organizational-level factors on predicting employee turnover and firm sales. The BPN-based causality analysis revealed the relative importance of explanatory variables on firm performance. To test the model, it employed the Human Capital Corporate Panel open data on Korean companies’ HR practices and other characteristics. The analysis identifies causal relationships between specific HR practices and firm performance. The results show that compensation-related HR practices are most influential in predicting firm sales and employee turnover. Moreover, training-related HR practices were modest, and talent acquisition and performance management practices had relatively weak effects on the two outcomes. The study provides insights into how human resource practices can be optimized to improve firm performance and enhance organizational effectiveness. The findings of this study contribute to the growing body of research on the use of machine learning in HR management and suggest practical implications for managers’ insights to optimize HR practices.
... However, despite the growing body of literature on HRM systems, several gaps and inconsistencies persist. For instance, while some studies focus on the role of specific HRM practices such as training and development (Arthur, 1994), others explore the broader implications of HRM systems on firm performance (Delery & Doty, 1996). Additionally, variations in the conceptualization and operationalization of HRM systems pose challenges for comparative analysis and generalization across studies. ...
... Numerous studies have investigated the relationship between specific HRM practices and firm performance. For instance, Arthur (1994) found that investments in training and development positively influence manufacturing performance and reduce turnover rates. Similarly, Delery and Doty (1996) explored different modes of theorizing in SHRM and highlighted the importance of aligning HRM practices with organizational strategies for enhanced performance outcomes. ...
... For instance, Guest (2017) argued that HRM practices aimed at enhancing employee well-being, such as work-life balance initiatives and employee development programs, contribute to improved job satisfaction, engagement, and ultimately, organizational performance. Similarly, Arthur (1994) found that HRM practices focusing on employee training and development positively influence manufacturing performance and reduce turnover rates. ...
This systematic literature review examines the intricacies of Human Resource Management (HRM) systems and their measurement, synthesizing empirical evidence to provide insights into their effectiveness and implications for organizational performance. The review highlights the diversity in HRM measurement approaches, ranging from comprehensive scales to specific dimensions, underscoring the need for standardized tools to facilitate comparability across studies. Findings reveal positive associations between high-performance HRM practices and organizational performance outcomes, though the strength of these relationships varies across contexts. Contextual factors such as industry type, organizational size, and environmental dynamism moderate the effectiveness of HRM systems, emphasizing the importance of considering organizational and environmental factors in HRM research. Moreover, the review identifies employee perceptions and behaviors as critical mediators in the HRM-performance relationship, highlighting the importance of aligning HRM practices with employee needs and values. Methodological challenges, including reliance on cross-sectional data and difficulties in establishing causality, necessitate methodological rigor and innovative research designs to advance our understanding of HRM systems. Overall, this study contributes to the broader discourse on HRM systems by offering insights for scholars, practitioners, and policymakers seeking to optimize organizational performance through effective human capital management.
... The HRM literature tries to identify "systems", "bundles" or "configurations" of HRM practices (Verburg et al., 2007). Various latent dimensions of HRM practices have been identified (Arthur, 1994;Bae et al., 1998;Gooderham et al., 2008), but two of them are prevalent: ...
... In the vein that Neal and Griffin (2006) define the climate for safety concept, and in accordance to the psychological climate theory ( James et al., 2008), we delineate the HRM climate as individuals' interpretations of policies, procedures and practices related to the human resource management system. The two dimensions of HRM systems, "structure" and "collaboration" (Arthur, 1994) are by definition similar to two dimensions of psychological and organisational climate: the structure and the support dimension (Van Muijen et al., 1999), and are expected in this study as two HRM climate dimensions. ...
... The second factor (15.5 per cent of explained variance) includes the following practices: HR planning, selection criteria, performance appraisal, performance feedback, performancecontingency rewards and regular meetings with a superior. According to the previous typologies of HRM practices (Arthur, 1994) the first factor was defined as "collaboration" and the second one as "structure". ...
... Si tales prácticas existen, éstas podrían considerarse como las «mejores prácticas de RRHH» y, por tanto, deberían considerarse como principios de gestión de personal aplicables a todas las empresas. Dichas prácticas han recibido diferentes denominaciones en la investigación realizada, «prácticas de trabajo de alto rendimiento» (HUSELID, 1995), «prácticas progresivas de RRHH» (ICHNIOWSKI et al., 1995;DELANEY y HUSELID, 1996), «prácticas de trabajo innovadoras» (OSTERMAN, 1994;ICHNIOWSKI et al., 1997) o «sistema de compromiso» (BEER et al., 1984;MILES y SNOW, 1984;ARTHUR, 1994). Estas investigaciones se basan en los trabajos teóricos de WALTON (1985) y PFEFFER (1994). ...
... Un resumen de los mismos se recoge en la tabla 3. De nuevo la característica que se destaca de la investigación realizada es la heterogeneidad entre los tra- bajos. Unos examinan los posibles efectos de un determinado sistema, más innovador o progresista, en los resultados organizacionales (HUSELID, 1995;MACDUFFIE, 1995;ICHNIOWSKI et al., 1997), otros comparan el efecto sobre dichos resultados de dos sistemas de RRHH, denominados respectivamente de control o administrativo y de compromiso o estimulador del capital humano (ARTHUR 1994;YOUNDT et al., 1996). Y también los hay que crean sus propias combinaciones de prácticas de RRHH (HUSELID, 1995;HUSELID, et al., 1997;DE SAÁ PÉREZ, 2000). ...
... Fomento de la participación (Walton, 1985;Pfeffer, 1994 y 98;ARTHUR, 1994;HUSELID, 1995;McDuffie, 1995;ICHNIOWSKI et al., 1995 ;DELANEY y HUSELID, 1996;DELERY y DOTY, 1996) En segundo lugar, fue necesario determinar el método a emplear para la medición del sistema. Como señalan DELERY y DOTY (1996) en la literatura falta una medida de sistema de RRHH aceptada por todos. ...
2.º Premio Estudios Financieros 2000Modalidad: Recursos Humanos Desde que surge el enfoque estratégico de recursos humanos en los años ochenta, se ha tratado de investigar empíricamente la relación existente entre las prácticas de gestión de recursos humanos y los resultados de la empresa. Los estudios realizados se han centrado, básicamente, en el ámbito norteamericano y han adoptado diferentes perspectivas de análisis, lo que dificulta extraer conclusiones generalizables de los mismos. Este trabajo estudia dicha relación desde las cuatro principales perspectivas de análisis identificadas en la revisión de la literatura y para una muestra de empresas españolas. Los resultados obtenidos proporcionan evidencia de que el desarrollo de las denominadas prácticas universalistas de gestión de recursos humanos influye de forma positiva en los resultados obtenidos por la empresa. Particularmente, los resultados mejoran cuando se implantan sistemas de prácticas de recursos humanos consistentes entre sí, más que cuando se ponen en marcha prácticas aisladas, e independientemente de su adecuación a la estrategia adoptada por la empresa. Las implicaciones de estos resultados para futuras investigaciones se comentan al final del trabajo.
... De este modo, la dirección de recursos humanos (en adelante, DRH) asume una importancia crucial, al más alto nivel estratégico 1 . En este sentido, constatamos la abundancia de estudios empíricos que abordan la conexión entre DRH y resultados organizativos (ARTHUR, 1994;BECKER y GERHART, 1996;DELANEY y HUSELID, 1996;DELERY y DOTY, 1996;HUSELID, 1995;LADO y WILSON, 1994;WEST y PATTERSON, 1999). En concreto, consideramos sumamente interesante la defensa de los llamados sistemas de DRH de alta implicación, que persiguen el compromiso activo, motivación intrínseca y participación de todos los empleados hacia la consecución de los objetivos organizativos (ARTHUR, 1994;BENKHOFF, 1997;LAWLER, 1988LAWLER, , 1990LAWLER, , 1991WOOD y MENEZES, 1998). ...
... En este sentido, constatamos la abundancia de estudios empíricos que abordan la conexión entre DRH y resultados organizativos (ARTHUR, 1994;BECKER y GERHART, 1996;DELANEY y HUSELID, 1996;DELERY y DOTY, 1996;HUSELID, 1995;LADO y WILSON, 1994;WEST y PATTERSON, 1999). En concreto, consideramos sumamente interesante la defensa de los llamados sistemas de DRH de alta implicación, que persiguen el compromiso activo, motivación intrínseca y participación de todos los empleados hacia la consecución de los objetivos organizativos (ARTHUR, 1994;BENKHOFF, 1997;LAWLER, 1988LAWLER, , 1990LAWLER, , 1991WOOD y MENEZES, 1998). En cuanto a la relación entre DRH y AO, destacamos la existencia de importantes trabajos que tratan de modo explícito la conexión entre dichos campos (BARRIE y PACE, 1997;KAMOCHE y MUELLER, 1998;MCGILL, SLOCUM y LEI, 1992;WINTER, SARROS y TANEWSKI, 1997). ...
... Se debe desterrar la errónea ecuación entre paga y coste laboral, que por desgracia conlleva con frecuencia la alimentación de un círculo vicioso entre insatisfacción laboral y disminución de la productividad. Es importante la superación de la barrera que -a modo de prerrequisito-supone un mínimo nivel higiénico en el salario para que cualquier otra práctica centrada en la búsqueda de motivación de carácter más avanzado -en especial de carácter intrínseco-pueda tener éxito (ARTHUR, 1994;CAPPELLI y CROCKER-HEFTER, 1996;PFEFFER, 1994PFEFFER, , 1998a. ...
La globalización económica imperante ofrece grandes oportunidades para el desarrollo empresarial. No obstante, el inevitable endurecimiento de la competencia, entre otras potenciales adversidades de un entorno turbulento, puede originar importantes amenazas para la empresa española. En este contexto, resulta imprescindible la adopción de una actitud estratégica como base fundamental de la moderna dirección de empresas. Consiguientemente, en línea con el creciente consenso al respecto, la adecuada gestión de las personas, así como del conocimiento, aparecen como dos de las cuestiones clave para el desarrollo y la competitividad empresarial. Como resultado de todo ello se ha visto incrementado de modo importante el interés por el estudio del aprendizaje organizativo (AO) como factor fundamental en la estrategia. Así, el AO, como proceso generador de conocimiento en la organización, resulta clave para entender la dinámica de ajuste organizativo sostenible a las características de un entorno altamente dinámico y complejo. En este trabajo ofrecemos una revisión bibliográfica simultáneamente sintética y exhaustiva del concepto de AO, identificando desde una perspectiva estratégica un conjunto de elementos clave -estímulo, cambio, adaptación, resultados y desaprendizaje- que nos sirven de guía para el análisis del mismo. Teniendo en cuenta la diferencia entre las corrientes descriptiva y prescriptiva del AO, proponemos asimismo una definición del término a la vez integradora de la literatura existente y orientada a resultar útil para la dirección estratégica de la empresa. De este modo, el objetivo general del trabajo consiste en ilustrar la relevante interconexión del AO con la eficaz implantación de prácticas de dirección de recursos humanos (DRH) de alta implicación -es decir, centradas en la búsqueda del máximo compromiso y motivación intrínseca de la personas-, impulsándose así una auténtica traducción de prácticas de DRH en mejora de resultados organizativos. En concreto, se propone la aplicación de un sistema de cuatro prácticas de DRH: contratación rigurosa y selectiva, retribución por conocimiento y habilidades, comunicación avanzada y empowerment -delegación generosa de responsabilidades-. Asimismo, se plantea un modelo de integración de DRH con AO, cuyo eje central es la consecución del cambio efectivo de conducta organizativa como manifestación de la puesta en práctica apropiada del cambio organizativo requerido.
... For measuring CPA (13) and TAD (4) we adapted scale items from Arthur (1994) and Subramaniam et al. (2011). The scales for EWP (7) and GRH (4) were adapted from Bhatti and Qureshi (2007) and (Koch and McGrath, 1996), respectively. ...
... The scales for JS (9) and HAS (3) were taken from Macdonald and Maclntyre (1997). ER (9) scale was adapted from Mobley et al. (1978) (Table 3) Arthur (1994) and Subramaniam et al. (2011) CPA1 Performance is appraised regularly CPA2 ...
... Salary is fair considering what others are paid Training and development Arthur (1994) and Subramaniam et al. (2011) TAD1 Training programs are well structured and widely shared TAD2 ...
Purpose
This study is the maiden attempt to understand the effect of specific human resource practices (HRPs) on employee retention (ER) with the mediation of job satisfaction (JS) and moderation of work experience (WE) and job hopping (JH) in the context of the textile industry.
Design/methodology/approach
This study adopted a quantitative methodology and applied quota sampling to gather data from employees ( n = 365) of leading textile companies in India. The conceptual model and hypotheses were tested with the help of Partial Least Squares-Structural Equation Modelling (PLS-SEM).
Findings
The findings of a path analysis revealed that compensation and performance appraisal (CPA) have the highest impact on JS followed by employee work participation (EWP). On the other hand, EWP had the highest impact on ER followed by grievance handling (GRH). The study revealed that JS significantly mediates between HRPs like CPA and ER. During Multi-group analysis (MGA) it was found that the importance of EWP and health and safety (HAS) was more in employee groups with higher WE, but it was the opposite in the case of CPA. In the case of JH behavior, the study observed that EWP leads to JS in loyal employees. Similarly, JS led to ER, and the effect was more pronounced for loyal employees.
Originality/value
In the context of the Indian textile industry, this work is the first attempt to comprehend how HRPs affect ER. Secondly, it confirmed that JS is not a guaranteed mediator between HRPs and ER, it could act as an insignificant, partial or full mediator. Additionally, this study establishes the moderating effects of WE and JH in the model through multigroup analysis.
... A expressão "práticas de gestão de pessoas de alto desempenho", empregada recorrentemente na literatura, remete a um conjunto de práticas que possuem como finalidade aperfeiçoar os conhecimentos, as habilidades e a capacidade dos funcionários de determinada organização de entregarem resultados superiores (Huselid, 1995), ao mesmo tempo em que incentivam o envolvimento de todos no ambiente de trabalho e a identificação com os objetivos do negócio (Wood & Menezes, 1998), contribuindo, por conseguinte, para a melhoria do desempenho organizacional (Arthur, 1994). ...
... Entre essas práticas, têm-se o treinamento contínuo e em alto nível dos funcionários (Huselid, 1995;Wood & Menezes, 1998;Bashir et al., 2012;Escribá-Carda et al., 2017;Afsar et al., 2018); a vinculação das promoções e remuneração às avaliações de desempenho (Huselid, 1995;Wood & Menezes, 1998;Gupta & Singh, 2010;Escribá-Carda et al., 2017;Afsar et al., 2018); a criação de planos de carreira alinhados às expectativas dos funcionários (Wood & Menezes, 1998;Escribá-Carda et al., 2017); a instituição de mecanismos formais para os empregados reportarem eventuais queixas e o estabelecimentos de procedimentos transparentes e justos para lidar com elas (Gupta & Singh, 2010); a concessão de feedback periodicamente (Rehman et al., 2019); a comunicação clara dos objetivos e metas organizacionais (Gupta & Singh, 2010); a descentralização da tomada de decisão (Arthur, 1994;Bashir et al., 2012;Rehman et al., 2019); e o estímulo ao trabalho em equipe (Wood & Menezes, 1998;Bashir et al., 2012). ...
... Quando combinadas, essas práticas podem levar à redução dos níveis de rotatividade (Arthur, 1994;Luna-Arocas & Camps, 2008) e absenteísmo da organização (Escribá-Carda et al., 2017), e ao aumento da produtividade (Oliveira & Silva, 2015;Escribá-Carda et al., 2017), da motivação (Lepak et al., 2006;Oliveira & Silva, 2015) e do envolvimento dos funcionários (Karatepe, 2013;Oliveira & Silva, 2015), além de favorecerem a criação de um ambiente de trabalho no qual a satisfação individual tende a ser maior (Luna-Arocas & Camps, 2008). ...
Esta pesquisa teve como objetivo analisar a relação entre as práticas de gestão de pessoas de alto desempenho, o clima de inovação e o bullying no ambiente de trabalho no setor de tecnologia da informação (TI). Os dados foram coletados utilizando o método survey online e analisados por meio da técnica de Modelagem de Equações Estruturais. A amostra foi composta por 336 profissionais do setor de TI. Examinando os resultados obtidos, verificou-se que as práticas de gestão de pessoas de alto desempenho contribuem para fortalecer o clima de inovação e reduzir o bullying nas empresas de tecnologia.
... Numerous researches have contributed to the view that Human Resource (HR) practices are positively related to performance in the past two decades (Arthur, 1994;Huselid, 1995). Nevertheless, the mechanism of how HR practices antecede the organizational outcomes remains unclear (Hanci-Donmez & Karacay, 2019;Savaneviciene & Stankeviciute, 2010) since most of the previous studies did not discuss any mediators to elucidate the linkage between HR practices and organizational performance (Becker & Gerhart, 1996;Harney & Jordan, 2008;Sobaih et al., 2019). ...
... One of the prime focuses of the conducted studies about SHRM is to examine the effect of SHRM practices on a firm's performance (Boxall & Macky, 2007). While since the past two decades, numerous researchers have contributed to the view that Human Resource (HR) practices are positively related to performance (Arthur, 1994;Huselid, 1995), the mechanism of how HR practices antecede the organizational outcomes remains unclear (Hanci-Donmez & Karacay, 2019;Savaneviciene & Stankeviciute, 2010). Most of the previous studies did not discuss any mediators to elucidate the linkage between HR practices and organizational performance (Becker & Gerhart, 1996;Harney & Jordan, 2008;Sobaih et al., 2019). ...
Purpose: The main intention of this study is to better comprehend the potential of rewards, entrepreneurial orientation (EO), and their impact on the performance of Indonesian manufacturing firms transforming into Industry 4.0. Design/methodology/approach: This study achieved its objectives by conceptual analysis of the rewards relationship with the performance of an organization, expectancy theory, resource-based view (RBV) theory, and extant literature. Findings: This study indicates that a comprehensive rewards policy alone is insufficient to improve the performance of the Indonesian manufacturing industry. The fully mediating models hypothesised with the application of expectancy theory and RBV models suggested that the dimensions of EO have significant impacts on improving the performance of the manufacturing firm. Practical Implications: This study measures the adoption of EO as a mediator in examining the mechanism of rewards management to improve the performance of the manufacturing industry underpinned by the expectancy and RBV theories. Originality/Value: The originality of this study is to demonstrate that the implementation of rewards management in the Indonesian manufacturing firm can be enhanced using a proper mechanism, to improve better firm's performance.
... A study by Macduffie (1995), on 62 universal automotive assembly plants and Ichniowski, Shaw and Prennushi (1997) on 36 steel finishing lines owned by 17 companies in the U.S. discovered that a "bundle" or "systems" of HR practices were related to productivity and quality. Moreover, numerous studies have shown the relationship between HRM practices and employee retention (Arthur, 1994;Guthrie, 2001), HRM practices and accounting profits among banks (Delery & Doty, 1996), HRM practices relate to operational performance among manufacturing plants (Ahmad & Schroeder, 2003;Youndt et al., 1996), and HRM practices relate to organizational effectiveness as well (G. R. Ferris et al., 1998;Stavrou-Costea, 2005). ...
... A study by Macduffie (1995), on 62 universal automotive assembly plants and Ichniowski, Shaw and Prennushi (1997) on 36 steel finishing lines owned by 17 companies in the U.S. discovered that a "bundle" or "systems" of HR practices were related to productivity and quality. Moreover, numerous studies have shown the relationship between HRM practices and employee retention (Arthur, 1994;Guthrie, 2001), HRM practices and accounting profits among banks (Delery & Doty, 1996), HRM practices relate to operational performance among manufacturing plants (Ahmad & Schroeder, 2003;Youndt et al., 1996), and HRM practices relate to organizational effectiveness as well (Ferris et al., 1998;Stavrou-Costea, 2005). ...
... Similarly, other researchers were of the opinion that better level of employee job performance can be achieved through mixed HRM practices than those of individual practices (Arthur, 1994;Baron & Kerps, 1999;Huselid, 1995;& MacDuffie, 1995). That means, specific HRM practices implied high level employees' performance in the organizations. ...
Organizations can adopt various training practices to enhance employees’ job performance as well as motivate them to work harder towards achieving the set targets. The way organization trains employees can influence its performance. This study focuses on Impact of training on Employees’ Job Performance: A study of Federal Medical Centre, Keffi, Nasarawa State. The sample size is 273 employees of the Medical Centre. The study employed descriptive research design, while product moment Pearson’s correlational technique was used to test the stated hypotheses. The data analyzed were presented in the form of frequency distribution tables, bar charts and percentages. Findings from the study revealed that training has positive and significant correlation on employees’ job performance. Career development training was also found to have a significant correlation with employee job effectiveness. The study thus recommends that employees with similar task should have a specific training that suites their jobs; Qualified employees should be engaged in training programme so as to be more committed to the organization with less consideration of leaving the organization; and the Management of the Medical Centre should ensure adequate budget for training activities.
... It is well known that HR practices are designed to encourage productive behaviors from employees (Becker & Huselid, 1998), and enhance employees' skills, motivations, and opportunities to perform (Jiang et al., 2012). These practices are broadly viewed as being performance-based (Becker & Huselid, 1998) and commitment-based (Arthur, 1992(Arthur, , 1994 HR systems 1 , and they have longstanding associations with important work outcomes such as affective commitment (Kehoe & Wright, 2013) and performance (Collins & Smith, 2006), respectively. In the present study, we focus on employees' HR practice perceptions, as opposed to management-based ones, since there can be a discrepancy between what a manager believes is being implemented by an organization and what the employee actually experiences (Laguerre, 2022;Piening et al., 2014). ...
Self-determination theory (SDT) is widely used in human resource (HR) practice studies to explain how HR practices impact work outcomes. However, there is little empirical evidence establishing the complete SDT mediational process in the HR domain, which entails basic psychological needs and motivation acting as mediators of relations between HR practices and work outcomes. The present study addresses this issue with a mixed methods approach. Using an item classification task with subject matter experts (N = 48), HR practices were classified as autonomy-, competence-, and relatedness-supportive. Based on this scheme, we tested an SDT-based conceptual model in a three-wave sample of working adults (N = 818). Results from Multilevel Structural Equation Modeling (MSEM) support the hypothesized model: basic psychological need satisfaction and autonomous motivation mediate the relationship between HR practice perceptions and work outcomes (performance, thriving, affective organizational commitment, and turnover intentions). Autonomy-supportive practices had a positive effect on autonomy need satisfaction, while competence-supportive practices had positive associations with all three basic psychological needs. Counterintuitively, relatedness-supportive practices had negative effects on autonomy and competence need satisfaction, and the relationship between relatedness-supportive practices and autonomy need satisfaction was moderated by chronological age. We discuss our findings in the context of prominent HR studies that utilize SDT and offer a supplemental age-inclusive HR practice scheme for HR managers interested in understanding the benefits of supporting basic psychological needs from both a motivation and workforce retention standpoint.
... Hence, resources, capabilities and competencies in possession of an organization are to be harnessed toward enviable performance of an organization. HRM systems that successfully develop and engage employees to participate in company's activities are likely to enhance the value and rareness of company's human assets (Arthur, 1994). ...
The research work is aimed at examining the 'Implication of Strategic Human Resources Management on Organizational performance' in selected companies across diff erent industries in Lagos State. The goal of this study is to establish the relevance of performance of organization to its stakeholders and how it can be made possible through various strategies at the disposal of human resources experts. The study adopts quantitative and qualitative (mixed method) approach as its research design. Questionnaire was used in the collection of data. The statistical tools used in analyzing the data were simple percentage and correlation analysis. It is revealed that there is significant relationship between strategic human resources and organizational performance. Also, it is found that, careful implementation of human resources strategies lead to improved profitability, liquidity, activity, and leverage ratios respectively. The recommendation to decision makers includes ensuring conducive environment and diligence in implementation of strategies, giving room for flexibility and subordinate participation.
... instead, it cooperates with all other departments for a hotel's business and strategic initiatives, and produces desired employee behaviors through such cooperation (Arthur, 1994;Huselid, 1995). King and Grace (2008) conducted qualitative interviews with employees to understand how employees acquire their organization's brand promise. ...
... De hecho, su misma puesta en marcha parece tener un efecto positivo sobre la valoración que hacen los ejecutivos de estos planes. A su vez, parece conveniente acompañar el proceso de implementación de los PCP con otras prácticas de RRHH congruentes con esta medida, bajo el marco de una configuración de prácticas de RRHH de compromiso (Arthur, 1994;Whitener, 2001;Wood and de Menezes, 1998). Entre ellas se destacan acciones tales como la formación financiera, las medidas destinadas a fomentar la cultura de la previsión y el ahorro, la asesoría y el acompañamiento en la etapa de preparación del retiro. ...
Objetivo. Explorar el rol de los planes complementarios de pensiones como práctica de atracción y retención de talento directivo en las empresas multinacionales y multilatinas. Un tema directamente conectado con las tasas de cobertura que ofrecen los sistemas públicos y privados de pensiones dentro del pilar obligatorio, en estos momentos en descenso. Metodología. Para analizar estas cuestiones se realizó un análisis cualitativo a través de entrevistas en profundidad a altos ejecutivos y expertos internacionales, además del análisis de documentación interna de diversas empresas e información de fuentes secundarias. Resultados. Los resultados obtenidos permiten plantear una serie de proposiciones relacionadas con los modelos de los planes complementarios de pensiones más apropiados y el conjunto de prácticas de RRHH, internamente consistentes con ellos para hacerlos una herramienta retributiva atractiva y eficaz, al mismo tiempo que garantizan los intereses de los diversos stakeholders. Conclusiones. El modelo de plan implementado tiene una influencia esencial en su éxito como mecanismo de atracción, retención y motivación de talento directivo, así como a la hora de proteger los intereses de los stakeholders. Su éxito también depende de la articulación de medidas complementarias y congruentes con la adopción del mismo. No obstante, la actuación de los Estados tanto en materia regulatoriacomo a la hora de crear consciencia pensional y cultura del ahorro condicionan enormemente su eficacia.
... Research scholars have identified various HR practices, including reward and recognition, supervisor support, work environment, training and development, and job security, as instrumental in reducing absenteeism and turnover rates, ultimately leading to improved job performance and employee retention (Meyer and Allen, 1991;Snell and Dean, 1992;Arthur, 1994;MacDuffie, 1995;Delaney and Huselid, 1996;Ichniowski, Shaw, and Prennushi, 1997). ...
This study focuses on employee retention in development banks of Nepal, addressing the challenge posed by increased talent mobility due to globalization. It aims to identify factors influencing retention and understand employees' perceptions of retention practices. The study explores the relationship between leadership approach, salary, learning opportunities, employee satisfaction, and retention. Retaining key employees is crucial for organizational stability and growth, especially in development banks, which play a vital role in Nepal's economic development. The research includes 388 permanent employees, primarily aged 20-29, with a higher male representation. Data is collected through questionnaires and interviews. The analysis involves descriptive and inferential statistical tools, revealing that leadership, salary, learning opportunities, and employee satisfaction positively impact retention. However, the study's limited scope and Nepal-specific context might limit the findings' applicability globally. Moreover, the sample size and data collection methods could influence generalizability. Thus, this research sheds light on employee retention factors in Nepalese development banks, guiding the formulation of effective retention policies.
... One of the key issues in management science and business practice is the relationship between HRM practices and company performance, which has been a subject of research interest for several decades (Arthur, 1994;Pattnaik, Sahoo, 2020). During this time, much empirical evidence was provided for the existence of statistically significant relationships between these variables (Huselid et al., 1997;Ferguson, Reio, 2010;Bučiūnienė, Kazlauskaitė, 2012;Furusawa, Brewster, 2016;Stor, 2021;Zhao et al., 2022;Chawla et al., 2023), with some considering HRM as a set of specific subfunctions (Budhwar et al., 2009) and others focusing on individual HRM subfunctions (Sheehan, 2014;Wood, 2021). ...
... I-HRM stimulate the advancement of existing HR policies as well as revisiting and adoption of the latest or new practices, process and work methods. The term is interchangeably used in literature by the previous scholar such as 'innovative HRM practices' (Arthur, 1994); progressive HRM (Huselid, 1995); quality HR (Huselid, 1994); high commitment practices (Pfeffer, 1994). Innovative/progressive HRM is like all other forms of administrative innovations. ...
In the contemporary age of global business, human resources outsourcing has received enormous attention. The academic research on this area in the context of Bangladesh was scanty despite a good number of private sector organization are doing outsourcing. Following this lead, the prime thrust of this research was to evaluate the relationship between HR cost efficacy, innovative HRM practices and human resources outsourcing and impact under the lens of transactional cost of economy and RBV theory. The judgmental purposive sampling method was applied to set sample and close ended questionnaire was employed to collect primary data from 115 respondents of private sector of Bangladesh. The partial least square based structural equation modeling was used to attain the objectives and the SMART PLS 4.0 was used to analyse data. The exciting findings concluded that there was a strong association between HR cost efficacy, innovative HRM practices and human resources outsourcing and a significant impact between the latent variables. Finally, implications and future directions were articulated for the practitioners, readers, and stakeholders.
... Individual level rewards and appraisal practices are an essential element of such an approach and it is hardly surprising, then, that they figure prominently within empirical research targeting the link between HRM and firm performance. Some of those macro-level studies have been highly cited and include, either as single practices or as components of HRM systems, individual level rewards (Arthur, 1994;Batt, 2002;Delaney & Huselid, 1996;MacDuffie, 1995); performance appraisals (e.g. Delery & Doty, 1996;Huselid et al., 1997;Snell & Dean, 1992); or both (e.g. ...
In recent years, scholars and practitioners have increasingly recognized that human resource management (HRM) has paid insufficient attention to the impact of context. While research has been devoted to examining the impact of national context on HRM systems, this literature has been largely separate from that focused on other levels of context affecting organizational choices in HRM strategies, such as the impact of the organizational environment, industry sector, occupation, or workforce characteristics. In addition, research has tended to consider elements of context in isolation rather than considering its impact at different levels. The goal of The Oxford Handbook of Contextual Approaches to Human Resource Management is to provide a more holistic approach to developing a contextual understanding of HRM. This handbook offers a comprehensive understanding of the influence of contextual characteristics on the design and implementation of HRM systems. Rather than focusing on a single level or approach to examining context, the handbook provides both conceptual and empirical analyses of different elements of context using a range of lenses and measures. To explore the influence of contextual factors at multiple levels, the volume assembles a range of detailed conceptual and empirical accounts of how context affects the design, implementation, and impact of HRM activities.
... The information flow theory within financial geography suggests that externalities and information asymmetries drive the concentration of the financial services industry in one particular area to minimize information costs [36,37]. Additionally, the industrial agglomeration theory by the neoclassical economist Marshall posits that external economies and economies of scale contribute to the agglomeration of the financial industry [38,39]. A prime example of this phenomenon is the international financial center in London, and China exhibits notable instances of financial agglomeration in cities such as Shanghai. ...
Reducing carbon emissions is a crucial measure for achieving sustainable development. The financial industry exhibits remarkable spatial agglomeration characteristics, which play a pivotal role in advancing carbon emission reduction and facilitating energy transformation. Using panel data from 41 cities in the Yangtze River Delta from 2008 to 2019, this study employed a spatial econometrics model to investigate the impacts and spatial spillover effects from the development of financial agglomeration on carbon emissions and the associated underlying mechanisms. The research shows that (1) there is an uneven spatial distribution of carbon emissions and financial development within the Yangtze River Delta region of China; (2) an inverted U-shaped relationship exists between financial agglomeration and carbon emissions, and only Shanghai’s level of financial agglomeration exceeds the extremum point; (3) financial agglomeration shows a negative spatial spillover effect on carbon emissions; and (4) financial agglomeration can promote industrial movement toward reducing carbon emissions. The study suggests some strategies for carbon reduction in China.
... The bundle of practices specifically designed to do so are labelled in the literature as HCWPs (Gould-Williams, 2004;Than et al., 2023). Not only are HCWPs capable of developing employee commitment, but they can also craft employee behaviours by developing desired forms of psychological contracts between them and their workplace (Arthur, 1994;Iles et al., 1990). HRM practices have also been identified as driving significant organisational outcomes such as innovation (Barba-Arag on and Jim enez-Jim enez, 2020); this is because HCWPs' synergic effect produces higher levels of motivation and positive behaviours at work (Than et al., 2023). ...
Purpose
Building on social exchange theory (SET), the main aim of this paper is to empirically study the impact of high-commitment work practices (HCWPs) systems on radical innovation. Additionally, the paper examines the mediating roles of employee innovative work behaviour (IWB) and knowledge sharing (KS) in the relationship between HCWPs and radical innovation.
Design/methodology/approach
Using a survey questionnaire, data were collected from employees working in pharmaceutical, manufacturing and technological industries in Jordan. A total of 408 employees participated in the study. Structural equation modelling (SEM) using AMOS v28 was employed to test the research hypotheses.
Findings
This research found that HCWPs in the form of a bundle of human resource management (HRM) practices are significant for employee IWB and KS. However, similar to previous studies, this paper failed to find a direct significant impact for HCWPs on radical innovation. Rather, the impact was mediated by employee IWB. Additionally, this paper found that HCWPs are significant for KS and that KS is significant for employee IWB.
Originality/value
Distinctively, this paper considered the mediating effect of employee IWB on radical innovation. Extant research treated IWB as a consequence of organisational arrangements such as HRM practices; this paper considered IWB as a foundation and source for other significant organisational outcomes, namely radical innovation. Additionally, the paper considered employees' perspectives in studying the relationship between HRM, KS, IWB and radical innovation.
... one of the most recent sub-traditions of HRM focused on the work place of HR policy in the decade of the 1980s, while offering various HRM framework and strategy typologies (e.g. Arthur, 1992Arthur, , 1994Miles & Snow, 1984;Wright & Snell, 1991). "People Management" is traditionally strives to accomplish strategic goals by developing innovative approaches to support company mission, the employees and various departments by increasing employee effectiveness and capabilities (Fombrun, Tichy&Devanna, 1984). ...
This paper analyzes human resource management techniques, including human resource outsourcing, and the size of the human resources organization. One of HRM techniques is defined as "facilitation," "accumulation," and "utilization." To meet the needs of HR outsourcing, the data for the report was compiled from feedback from 232 entities, which included 113 organizations participating in the outsourcing process. The results indicate that companies focus on outsourced HR functions while they have an emphasis on employee empowerment and performance improvement through facilitative management strategies. Concurrently, companies use HR contracting, which often leads to a decrease in the scale of the HR staff. Therefore, it is of critical importance that the organisations conduct thorough and thoughtful exploration of outsourcing of HR within their organizations. The level of HR functions within the company is anticipated to be significantly diminished if HRM strategy is pursued as an Outsourcing helps their consideration of HR departments to get ahead of HRM strategies.
... Their study revealed that hotels would prefer to make use of commitment-based practices for full-time employees and control-based systems for parttime employees, leading to a binary HR system with a commitment-oriented system and a control-oriented system. For Arthur (1994), control-based systems are designed to impact a minimum of the labor process, with little training and low interdependence. Workers are sometimes viewed as replaceable commodities. ...
As part of their human resources strategy, hotels utilize full-time and part-time employees in operations. There are significant differences in how two different types of employees are managed and handled in the hotel industry. The case study discusses the challenging situation of part-time employees in the hotel industry. Part-time employees are subject to low levels of motivation, engagement, and commitment at this hotel. Previous managers have not been proactive at tackling issues related to part-time employment, and strategies are required to remediate the problem. The solutions may be part of a comprehensive blueprint aimed at improving part-time employees’ conditions.
... Strong organizational cultures can stimulate employee performance by promoting self-esteem and ethical behaviour and reducing stress (Saffold, 1988). In general, employee commitment strongly influences organizational performance, so managers know that organizational performance can be improved by increasing employee commitment (Arthur, 1994). ...
This study aims to identify and characterize the culture of the largest exporters without the Balanced Scorecard (BSC) and with the BSC implemented. In addition, it confirms whether there are different characteristics in the type of organizational culture of the largest exporters without the BSC and with the BSC. To achieve this objective, data were collected through questionnaires sent to the 250 largest exporters in Portugal. Multivariate statistical techniques were used to validate the research hypotheses. This research shows that the Adhocracy (turbulent management) culture type prevails in organizations without BSC, while the Market (productivity) culture type prevails in organizations with BSC. The study is based on the characterization of the culture type of the organizations. This characterization is significant because organizational culture shapes and differentiates organizations’ actions, goal definitions, and strategic objectives, which can affect organizational performance. Although recent literature has addressed organizational culture and performance monitoring in isolation, not many studies have been found that link the topics of organizational culture, BSC, and performance.
... Second, this study is restricted to pharmaceutical companies. Hence, studies can be expanded to include more sectors in the future (Arthur, 1994). Third, the scope of the research was limited to Bangladeshi organizations or Bangladeshi management styles only. ...
Purpose: In today's competitive business landscape, companies are driven to innovate by external pressures. Adjusting HR practices and involving employees becomes crucial for successful innovation. This study explores the HR Innovation Lab's efficacies in enhancing human resources, promoting innovative HR practices, and driving success through innovation, as perceived by HR professionals.
Research Aim: This research assesses the potential impact of the HR Innovation Lab on improving human resources, encouraging creative HR practices, and achieving innovation-driven success. Insights from HR professionals illuminate the Lab's contributions in these dimensions.
Methodology: A cross-sectional study gathered data from 120 out of 210 HR professionals in six different pharmaceutical companies in Dhaka. Introducing the HR Innovation Lab concept during surveys, a simple random sampling method was used. Analysis utilized Pearson’s correlation, regression, and Cronbach’s Alpha testing.
Findings: Analysis revealed employees perceive the HR Innovation Lab as a valuable tool for personal growth, innovative HR practices, and overall organizational success. Positive correlations and regression outcomes suggest the Lab positively affects individuals, maintains balanced HR eco-system, and drives innovation success.
Originality: This study enriches existing knowledge by highlighting the HR Innovation Lab's potential to enhance human resources, promote innovative HR practices, and achieve innovation success. Positive HR professional feedback underscores the Lab's unique role in addressing innovation demands for a competitive edge.
In conclusion, this study offers actionable insights for companies seeking innovation and a competitive edge through an HR innovation lab, fostering success through organizational innovation.
... Many studies report that HRM practices are highly essential for retaining employees at work. Employee retention and HRM systems have a close relationship, according to Arthur (1994). Employee relations are a functional component of HRM that includes job analysis and design, recruiting and selection, training and development, performance management, pay structure/incentives/benefits, and performance management (De Cieri & Kramar, 2008). ...
The purpose of this study is to examine the relationship between HRM practices and employee retention in bank and financial institutions (BFIs) of Nepal. Recruitment and selection, training and development, promotion opportunities, and compensation practices are the four HRM practices examined in this study. A questionnaire with a five-point Likert scale is used for collecting data. 135 completed questionnaires were returned out of the 205 that were distributed, representing a 65.85% response rate. The results show that selection and recruitment have no significant relationship with employee retention. The findings also indicate that there is little to no relationship between training and development and employee retention. There is a strong positive association between employee retention and other aspects of HRM practices like promotion opportunities and compensation practices. Therefore, Nepalese BFIs need to provide timely promotion opportunities and fair compensation practices so that they can retain talented employees in their organizations. Moreover, to meet the challenge of gaining a competitive edge, today’s organizations must create a workplace that encourages performance, productivity, and retention.
... Over the past few decades, SHRM researchers have proven why and how HRM systems contribute to organizational outcomes (Jiang et al., 2013;Jiang & Messersmith, 2018). Whereas early studies corroborated the positive HPWSefirm performance relationship per se (Arthur, 1994;Huselid, 1995), current studies have expanded our understanding of the underlying mechanisms by further elaborating on the mediating paths in the HPWSeorganizational outcomes relationship. As a result, our knowledge of mediating mechanisms has been advanceddHPWS enhances employees' competencies (e.g., Takeuchi et al., 2007), motivations (e.g., Kehoe & Wright, 2013), and organizational citizen behaviors (e.g., Gong et al., 2010) as well as social capital and internal trust among the employees (e.g. ...
... It is in line with Daily, et al. [11] in their study who finds out the role of teamwork in successful employee involvement. The research findings of Arthur [4] show that practices that develop employee commitment produced higher productivity than practices that were more controloriented. Applying quality planning, quality control, and quality improvement in COVID-19 pandemic faced some obstacles dealing with massive changes and uncertain condition. ...
TQM can be applied in education for enhancing the quality of educational services. This study aims to analyse school quality management regarding how the Juran Trilogy is applied at schools in East Java, Indonesia. It addresses planning, control, and improvement in quality management. This study uses a qualitative design with triangulation approach. Results show that schools plan education services in accordance with student needs, government policy, and stakeholder’s expectation. In monitoring and evaluating the programs, measurements are used using appropriate methods and periods, then the actual are analysed. In quality improvement, schools take innovations and changes for better improvements. The results of this study indicate that schools can provide good quality education services by using the Juran Trilogy as a quality management tool. However, it is required further studies due to limitations of this research.
... Effective selection and recruitment practices were found to have positive relationship on top-class performance according to Harel and Tzafrir (1996) and Delaney & Huselid (1996). Authors like Arthur (1994), Huselid (1996) found effective recruitment practices have positive influence on training and development. The HR systems could significantly improve the performance of organizations when they are aligned with the right type of production strategy (Youndt et al). ...
... The importance of the global or overall HRM system is emphasized because it is believed to be systematic and interrelated influence of HRM policies and practices that provide their inimitability, and therefore provides a strategic lever for the firm that is internally consistent and externally aligned (with the competitive strategy). Work systems are generally thought to include rigorous recruitment and selection procedures, performance contingent incentive compensation systems, management development and training activities linked to the needs of the business, and significant commitment to employee involvement (Arthur, 1994;Pfeffer, 1994). ...
... Employees Performance Huselid (1995) extensive research encompassing 968 US companies, conducted through questionnaires, unveils a compelling linkage between employee motivation and performance outcomes. Complementing this, Arthur (1994) study delving into labour efficiency underscores that enterprises adopting high-commitment strategies significantly manifest elevated performance levels. This convergence of findings substantiates the assertion that employee performance constitutes a pivotal determinant of overall productivity. ...
This study delves into the intricate relationship between monetary incentives and workers' performance within the context of the Nigerian Automobile Industry. The objective is to discern the impact of various monetary incentive factors on employee performance while also investigating potential areas for enhancement. Through a meticulous examination of 120 completed questionnaires, the study identifies prevailing trends and disparities in the perception of monetary incentives among industry workers. The findings unveil a nuanced understanding of employees' familiarity with the elements and factors of monetary incentives, highlighting their comprehension of how these variables intertwine with their workplace performance. A critical observation is made concerning the incongruence between the societal image associated with workers within the Automobile Industry and the current salary structures. It becomes evident that salary adjustments are not conducted in alignment with the benchmarks established by the Salaries and Wages Commission. A compelling revelation surfaces as the study underscores the paramount influence of Bonus payments and pay raises on employees' motivation and job satisfaction. These two factors emerge as significant determinants of enhanced performance, with most workers acknowledging their pivotal role. In contrast, the practice of Profit Sharing within the industry is not commonplace, and concerns regarding transparency shadow instances that do exist. This unveils a compelling demand for a more open and equitable Profit-Sharing system capable of invigorating workers' enthusiasm. Moreover, the study illuminates the inadequacies of the Retirement Benefits framework, indicating a palpable need for its augmentation to elevate employee contentment and performance. The research substantiates the hypothesis that monetary Incentives encompassing Salary, Bonus, pay rate, profit-sharing, and Retirement Benefits significantly influence workers' performance within the Nigerian Automobile Industry. In conclusion, the study proffers strategic recommendations to fortify the bond between monetary incentives and employee performance. Embracing transparency, ensuring timely salary reviews and bonus disbursements, implementing performance-based pay rise policies, enhancing retirement benefits, and upholding transparency in monetary incentive processes are identified as pivotal actions that can stimulate heightened motivation, job satisfaction, and ultimately, superior performance within the Nigerian Automobile Industry. Keywords: Monetary Incentives, Employee Performance, Nigerian Automobile Industry, Job Satisfaction, Intrinsic Motivation, Career Development, Human Resources Management, Pay Rise.
The main objective of this investigation was to study the effect of organizational competency
development practices on turnover intentions and whether affective commitment explains this
relationship. Another of the study’s objectives was to test whether these relationships vary according
to the generation to which the participant belongs. The study sample consisted of 2123 participants
working in Portuguese organizations. The results indicate that organizational competency development
practices (training, individualized support, and functional rotation) negatively and significantly
affect turnover intentions and that affective commitment mediates this relationship. However, these
relationships vary according to the participant’s generation. For Generation Y and Generation X,
this mediating effect is found in all dimensions of organizational competency development practices.
For the baby boomer generation, there is only a mediating effect of affective commitment in the
relationship between individualized support and turnover intentions. These results indicate that human
resources should consider the generation to which the participant belongs when implementing
competency development practices.
The purpose of this study was to examine empirically if there are differences in the way that HRM practices are performed in the private and public sectors of the economy. The theoretical base of this investigation is anchored on the proposition that some HR practices are always better than others and that all organizations should adopt these “high performance work practices.” In recent years, organizations in the public and private sectors have witnessed many changes in their environment. These pressures have pushed organizations from both sectors to continuously improve their performance. The authors focused on the macro-level of the organization and its productivity. A total of 102 questionnaires were completed and returned by human resource VPs, representing 44 percent of the firms contacted.
The hypotheses were tested using data describing human resource management operation. The authors found that public sector management emphasizes those HRM domains that deal with employee selection and grievance procedures because of the sector's high level of unionization. On the other hand, private sector management emphasizes employee growth and pay for performance. Nevertheless, the authors also found evidence that the public sector is “moving” closer and closer to the private sector model by adopting “high performance work practices” in order to overcome the turbulent environment and public demand.
The COVID-19 pandemic has exacerbated the challenge of differentiating between work and personal life, underscoring the significance of attaining work-life balance (WLB). We conducted a study to examine the influence of enhanced job design on work-life balance (WLB). This involved polling a total of 436 employed individuals and gathering input from employees, their families, and supervisors. In addition, we examined how the ratification mandated by the constitution and individual traits like as proactive self-identity and resilience contribute to enhancing this connection, depending on the JD-C (Job Demand-Control) model. Furthermore, we conducted more detailed research to pinpoint the essential components of job-enriched design, which play a crucial role in predicting both personal and professional outcomes in our 3-way interaction models. Our research provides insight into how to enhance work-life balance (WLB) in response to evolving work dynamics, with implications for theoretical models and practical applications.
What are useful ways to characterize varying employment systems? This article returns to an older idea, Internal Labor Markets (ILMs). The traditional assumption characterized ILMs as the core of the labor market but current thinking argues that ILMs have frayed. Little direct measurement has been carried out, however, and both viewpoints have relied on proxies or case studies. The author utilizes a new survey of employed US workers to provide an estimate of the incidence of ILMs and finds that between 25 and 40% percent of adult workers are in ILMs. The article then elaborates theory regarding the practices of ILMs, a theory grounded in the idea of complementary bundles of human resource practices, and asks what are the correlates of being in an ILM. Findings show that although wages in ILMs are no higher than non-ILM wages, ILMs are positively associated with other aspects of job quality and attitudes across the board.
Scholars and practitioners alike have argued that performance review is prone to destructive effects and negative outcomes in progressive work organizations with a total quality management (TQM) orientation. Despite its pervasive use and significant consequences at individual, team, and organizational levels across contemporary workplaces, it has remained inadequately explored for its current operational systems and their role in helping employees achieve job mastery and enabling organizations to attain desired quality outcomes. To address this lacuna, this study aims to explore how performance review systems can align with continuous quality improvement in contemporary workplaces that espouse a culture of continuous learning and quality improvement. Given the exploratory and broad scope of the research, it adopts a multiple case study design which offers benefits both in terms of process and outcomes. The findings are indicative of two different performance review systems with very different implications for managing employees and achieving quality outcomes in line with TQM: tactical system with a focus on employee obedience to rigid top‐down control system for achieving conformance quality measures, and a dynamic system with a focus on employee ownership of the quality process for achieving desired quality.
The study was carried out to assess the impact of human resource management practices on the performance of the Ghana Postal Services Company. The main objective of the study was to determine the major factors contributing to the inability of the company to meet the challenges of the global market competitiveness in the postal and communication industry. The study adopted a purely qualitative approach and used both primary and secondary data. The primary data were collected from management and clients of the company. The results indicated that human resource management practices have a significant effect on organizational performance. Thus, the contribution of this study is that human resource management practices will have a significant effect on organizational performance through positive HRM outcomes.
The rise in talent management complications led organizations to rely on the latest technologies to automate their routine HRM tasks through AI. This study proposed to examine fundamental aspects of AI in talent acquisition (cost-benefit, opportunities, and risk factors) from the context of strategic analysis and decision-making. 52 respondents from HRM and the information technology departments from fifteen large dairy enterprises, each with more than one thousand employees, were included in the focus group discussion. Both departments were included in the focus group discussion as they heavily employ AI in talent acquisition. The opinions were collected in multiple rounds based on the cost, benefit, opportunity, and risk criteria using the analytical hierarchy process, a multi-criteria decision-making framework. The findings demonstrated that most respondents opinioned AI supports talent acquisition with many opportunities (38.7%) that involve the identification of the best applicants (18.7%) and different benefits (33.2%) to the organization in the form of saving time and cost (16.1%) leading to higher efficacy. The study infers that the application of AI in HRM significantly contributes to talent acquisition, streamlining processes, improving efficiency, and enhancing decision-making. The study recommends that implementing AI in talent acquisition requires a strategic approach, and organizations need to consider factors such as data privacy, ethical use of AI, and ongoing training to ensure successful integration into their hiring processes. Additionally, regular monitoring and adjustments are essential to optimize the effectiveness of AI tools in talent acquisition. AcknowledgmentThe authors of this article would like to thank Prince Sultan University for its financial and academic support for this publication.
This study examines the impact of selected human resource management practices on organizational performance of public universities in Abia State. The selected HRMP employed in this study are compensation and Recruitment and selection. A survey research design was adopted for the study. Data was collected through copies of structured questionnaire. The data collected was analysed using ordinary least square regression analysis. The result reveals that there is a significant impact of recruitment and selection and compensation on organizational performance in public universities in Abia state. Based on the findings, it is recommended that HR expertise with the help of line managers (HODs) should be made to carry out these activities so that people with the appropriate skills, attitudes and knowledge are hired. This will ensure professionalism and institutionalism in the activities of public universities. Furthermore, the management/government should endeavor to link pay to performance. This type of compensation structure is known to ensure fairness, eliminate conflicts and tension and propel employees to higher performance.
The current study contributes to the ongoing discourse in the extant literature concerning the performance effects of the commitment-inducement and the compliance-enforcement approaches to the management of people and work. We expand on two research studies conducted in China to assess if the finding that commitment-inducement and compliance-enforcement result in higher organization financial and operational performance generalizes to corporate social responsibility performance and to countries and cultures across the globe. Using the current study’s large global multi-source sample, our findings illuminate that compliance-enforcement explained significant incremental variance in both organization financial and operational performance and organization corporate social responsibility performance beyond that of the commitment-inducement approach alone. Moreover, the highest levels of both performance outcomes were obtained by organizations that simultaneously used both commitment-inducement and compliance-enforcement; that is, hybrid governance. Compliance-enforcement was also found to have a more substantive relative effect on organization financial and operational performance while commitment-inducement was found to have a more substantive relative effect on organization corporate social responsibility performance. Furthermore, as hypothesized, at the between country-level, the relationship between the commitment-inducement approach of managing people and work and corporate social responsibility performance was found to be more negative both for a high individualism than a low individualism culture and for a high uncertainty avoidance than a low uncertainty avoidance culture, respectively. Whereas, the relationship between the compliance-enforcement approach and corporate social responsibility performance was found to be more positive for a high uncertainty avoidance than a low uncertainty avoidance culture. Finally, as hypothesized, at the between country-level, commitment-inducement and compliance-enforcement were found to be substitutes and have a negative synergistic effect on corporate social responsibility performance. Implications, limitations, and avenues for future research are discussed.
Purpose
On the basis of labor economics theories, this study examines how adjustment in human capital accounts for labor cost stickiness.
Design/methodology/approach
This study makes use of employee education level as a measure of the quality of human capital and relies on data from Chinese public firms to conduct the empirical test. This study focuses on two important components of labor cost changes: one corresponding to the adjustment in the number of employees (capacity adjustment) and another corresponding to the adjustment in the mix of employee education levels (quality adjustment).
Findings
This study reveals that labor cost changes driven by the adjustment of employee education level are sticky. This stickiness cannot be explained by the standard adjustment cost theory. This further shows that firms that actively adjust their employee quality during downturns experience improved future performance. The findings are robust to alternative measures and specifications.
Originality/value
This study provides new evidence for and insights into the cost behavior literature. Previous studies treat input resources in a homogenous way and focus on the effect of capacity adjustment. This study considers the heterogeneity of resources and examines three dimensions of salary cost adjustment: capacity, structure, and unit cost. In line with the economic theory of sticky costs proposed by Banker et al. (2013a), the study’s evidence sheds light on the additional underlying economic mechanisms driving cost stickiness behavior. Specifically, managers asymmetrically adjust both employee structure and average salaries, in addition to employee number. This study also adds to the existing knowledge of the consequences of managers' actions regarding cost behavior.
For too many businesses, employee performance leaves a lot to be desired. Either, it's not done at all or it's done poorly and leaves both parties unsatisfied. Used correctly, employee performance management is a powerful tool for engaging employees by linking their performance to organizational objectives so that ultimately everyone is focused on the success of the business. In addition, a well executed employee performance management process will identify an organization's up and coming talent, clarify training needs, shape succession plans and help make objective compensation and internal staffing decisions. When attempting to maximize productivity, improve performance and deliver business value, the place to start is getting your employees to set clear SMART objectives. Objectives serve as a way to keep employees on course and working toward an overarching company goal. They provide focus, direction, set expectations and also provide motivation for your workforce. Employees can only achieve and exceed expectations when they know exactly what is expected of them. What's more, when employees are confident of what is expected of them, they won't waste business time or energy worrying-allowing them to make most of their time and skills.
We examine the effect of unexpected defined benefit (DB) pension contributions on employee productivity. The Tax Cuts & Jobs Act (TCJA), implemented in the U.S. in 2017, decreased the corporate tax rate from 35 percent in 2017 to 21 percent in 2018. This change incentivized firms to increase DB pension contributions in 2017 . The TCJA provides an opportunity to study the motivation effect of unexpected employee benefits. We empirically find that resulting increases in DB pension contributions motivate employees to produce, and that labor intensity and length of operating cycle can enhance this association. We also find that general unexpected pension contributions have no pronounced effect on employee productivity. We further show that such a change in pension contributions does not significantly increase overproduction costs.
A distinction is drawn between the degree of relationship between two variables X and Y and the form of the relationship between the same variables. The correlation coefficient rxy is the index of degree of relationship, while the regression coefficient Byx is the index of the form of relationship. If both the form and degree are constant across values of some third variable Z, the X − Y relationship is constant or unconditional with regard to Z. If the degree of relationship varies with values of Z, Z is said to “moderate the degree” of the X − Y relationship. If the form of relationship varies with values of Z, Z is said to “moderate the form” of the relationship. The separate statistical tests which are required to test for each type of moderator variable are outlined. Hierarchical multiple regression is the appropriate method to test for different forms of relationship, but not for different degrees of relationship. The differing substantive implications and interpretation of the two types of moderated relationships are discussed. Finally, the effects of unreliability of measures on the power of tests to detect differing forms and degrees of relationships are outlined and demonstrated.
Studies of employee turnover are reviewed using meta-analytic techniques. The findings indicate that almost all of the 26 variables studied relate to turnover. The findings also indicate that study variables including population, nationality, and industry moderate relationships between many of the variables and turnover. It is suggested that future research on employee turnover: (1) report study variables, (2) continue model testing rather than simply correlating variables with turnover, and (3) incorporate study variables into future models. [ABSTRACT FROM AUTHOR] Copyright of Academy of Management Review is the property of Academy of Management 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.)
Introduction. Human resources management: moving toward a paradigm and obtaining advantage. Expanding the strategy-making concept. A profit generation theory of strategic human resource management. Human resources and the anatomy of strategic planning. Strategic staffing. Strategic implications of the performance evaluation process. Strategic reward systems. Strategic human resources development. Strategic industrial relations. Entrepreneurial links. International human resouces management. Planning for and managing mergers and acquisitions. Conclusions and planning for the future. References. Appendix.
[Excerpt] The current decade has brought yet another transformation in the practice and study of human resource management (HRM). The field, for better or for worse, has discovered, and indeed begun to embrace, a strategic perspective. The intellectual energy currently being invested in discussions of the nature, extent, and desirability of this development is a clear indication that something of significance is afoot. Understand it or not, believe in it or not, like it or not, strategy is well on its way to becoming an important paradigm behind much of what HR professionals do and think.
The negative impact of turnover is well documented in the literature. This paper examines turnover with a unique, positive focus. Turnover is reviewed, not only from the standpoint of the organizational theorist, but with economic, sociological, and psychological/social psychological perspectives. Often ignored benefits of turnover are noted.
This study tests the "strategic choice" proposition that variation in workplace industrial relations policies and practices is related to differences in business strategy. A cluster analysis of data from a 1988-89 questionnaire examining workplace industrial relations and business strategies in U.S. steel minimills suggests that the industrial relations systems of these mills can be broadly categorized as emphasizing either cost reduction or employee commitment; similarly, the business strategies of the mills appear to stress either the manufacture of a few products in large quantities at the lowest possible cost, or more flexible manufacturing, with products marketed on some basis other than cost. Further investigation shows a significant association between the type of workplace industrial relations system and the business strategy choices in these mills. (Abstract courtesy JSTOR.)
Up from the ashes: The rise of the steel minimill in the United States Decision-theoretic utility analysis applied to employee separations and acquisitions
- D F Barnett
- R W Crandall
Barnett, D. F., & Crandall, R. W. 1986. Up from the ashes: The rise of the steel minimill in the United States. Washington, DC: The Brookings Institution. Boudreau, J. W., & Berger, C. J. 1985. Decision-theoretic utility analysis applied to employee separations and acquisitions. Journal of Applied Psychology, 70: 581-612.
Integrating strategic human resources and strategic management Research frontiers in industrial relations and human resources: 165-192 Product quality improvement through employee participation: The effects of unionization and joint union-management administration
- P Cappelli
- H Singh
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