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The Impact of HR Practices on the Performance of Business Units
Abstract
This article examines the impact of HR practices and organisational commitment on the operating performance and profitability of business units. Using a predictive design with a sample of 50 autonomous business units within the same corporation, the article reveals that both organisational commitment and HR practices are significantly related to operational measures of performance, as well as operating expenses and pre-tax profits.
... Excellent HR departments must demonstrate impact of their practices on people results and report these results to key internal and external HR stakeholders. This criterion has three parts as follows (Wright et al., 2003;Saks, 2006;Storey et al., 2019;Ulrich et al., 2023): ...
... Excellent HR departments demonstrate impact of HR practices on the business results and report these results to key internal and external HR stakeholders. This criterion has two parts as follows (Fitz-enz and Davison, 2002;Wright et al., 2003;Storey et al., 2019;Ulrich et al., 2023): 2.4.2.1 HR financial results. Excellent HR departments focus on measuring financial impacts of HR practices and reporting its results to key internal and external HR stakeholders. ...
... To develop excellent HR results' constructs and items, effective HR results were reviewed in the literature (e.g. Wright et al., 2003;Fitz-enz and Davison, 2002;Saks, 2006). In general, this study theoretically contributes to identifying key enablers and results of an excellent HR department. ...
Purpose
The purpose of this paper is to develop a multistakeholder scale for assessing an excellent human resource (HR) function to demonstrate the extent to which it is focused on creating value from the perspective of its key internal and external stakeholders.
Design/methodology/approach
At the first stage, an in-depth literature review was conducted to extract the best practices for an excellent HR function. Then, to test the validation of the developed framework, it was sent to HR academics and practitioners in different countries. The survey responses were analyzed using the methods of the structural equation modeling (SEM) and confirmatory factorial analysis.
Findings
This study proposes an excellent HR multistakeholder assessment scale consisting of ten criteria based on the perceptions of internal and external HR stakeholders.
Research limitations/implications
This study suggests a framework for assessing overall HR excellence based on the perceptions of key internal and external HR stakeholders. In addition, it is recommended that future researchers empirically test the developed scale across various industries and firm sizes.
Practical implications
HR managers, by using this framework, could continuously assess their HR excellence and compare their HR excellence with other companies’ HR excellence in the industry and then plan for continuous improvement in different HR areas to improve their stakeholders’ experiences.
Originality/value
This paper identifies the enablers and results of an excellent HR department and designs a multistakeholder feedback scale to better understand key internal and external HR stakeholders’ perceptions.
... Wright et al. (36) point out that much of the research has demonstrated a statistically significant relationship between HRM practices and firm profitability. Purcell et al. (37) also notice that many previous studies have examined the link between HRM practices and have shown there is a positive connection, but none has explained the nature of this connection, i.e. how and why HRM practices influence performance seems to be compatible with that of Theriou and Chatzoglou (38), who argue thatdespite the quantity and variety of empirical studieslittle attention has been paid to the concept or understanding of the mechanisms through which HRM practices impact performance. ...
... The departments of sports institutions play an important role in developing the skills and abilities of their employees, both to benefit from their experiences and abilities in sports institutions and to achieve profits and competitive advantage (23). Sports institutions have failed to fulfill this role through the implementation of training courses that suit the actual needs of workers, especially in the educational and sports sectors (32,36,37). Table 4 shows that the percentage of the average response to the opinions of the research sample in the statements of the fourth axis, incentive systems and promotions associated with the development of economic and social resources, ranged between 58% and 66%. ...
... Experts, offices, and companies specialized in marketing, professionalism, and sports promotion are used in the development of marketing plans and programs that will be implemented on the ground. In addition, the privileges granted by the Ministry of Sports to companies working in the field of marketing, investment, and advertising are developed as an encouragement to these economic entities to continue and increase their number of employees (36,40). The discovery and innovation in advertising allow sports programs, facilities, and media centers disseminate information about the activities of the institution to the internal and external public, thereby increasing profits and competitive advantage. ...
... Wright et al. (36) point out that much of the research has demonstrated a statistically significant relationship between HRM practices and firm profitability. Purcell et al. (37) also notice that many previous studies have examined the link between HRM practices and have shown there is a positive connection, but none has explained the nature of this connection, i.e. how and why HRM practices influence performance seems to be compatible with that of Theriou and Chatzoglou (38), who argue thatdespite the quantity and variety of empirical studieslittle attention has been paid to the concept or understanding of the mechanisms through which HRM practices impact performance. ...
... The departments of sports institutions play an important role in developing the skills and abilities of their employees, both to benefit from their experiences and abilities in sports institutions and to achieve profits and competitive advantage (23). Sports institutions have failed to fulfill this role through the implementation of training courses that suit the actual needs of workers, especially in the educational and sports sectors (32,36,37). Table 4 shows that the percentage of the average response to the opinions of the research sample in the statements of the fourth axis, incentive systems and promotions associated with the development of economic and social resources, ranged between 58% and 66%. ...
... Experts, offices, and companies specialized in marketing, professionalism, and sports promotion are used in the development of marketing plans and programs that will be implemented on the ground. In addition, the privileges granted by the Ministry of Sports to companies working in the field of marketing, investment, and advertising are developed as an encouragement to these economic entities to continue and increase their number of employees (36,40). The discovery and innovation in advertising allow sports programs, facilities, and media centers disseminate information about the activities of the institution to the internal and external public, thereby increasing profits and competitive advantage. ...
Background. Sports institutions in developed countries have many resources that can be used to achieve a competitive advantage as well as a country's specific goal. The success of the establishment or institution depends to a large extent on the skill with which the workers of the administration perform. Objectives. The purpose of the study was in a vision for investment in human resources and their role in achieving a competitive advantage in sports institutions in the Kingdom of Saudi Arabia. Methods. We used the descriptive approach and We selected the research sample by the random class method from the number of sports institutions (25) and the number of individuals (228). Results. The results showed that the response Rate to the axes of the questionnaire on the reality of human resources investment to achieve a competitive advantage in sports institutions in the Kingdom of Saudi Arabia ranges between 58% and 71%. Current investment in human resources is limited in Saudi sports institutions. Conclusion. We also observed a lack of effective planning for human resources management, weak mechanisms to train human resources, and a lack of effective methods to develop administrative and organizational policies. Moreover, there is little evaluation and follow-up to measure the feasibility of organizational and economic financing, investment, and marketing to distinguish a sports institution from its peers. The lack of an approved system for the evaluation of this problem is observed for all employees of the institution based on scientific foundations. A lack of transparency and objectivity in evaluation leads to employee dissatisfaction, as well as a lack of participation of employees at the beginning of their opinion on the negative evaluation within the institution.
... More so, employees were cultured based on healthy competition among them at their workplace (x ̅ =2.99), extract the best out of each team member (x ̅ =2.97), limited concern about employees welfare by management (x ̅ =2.93) and frequent punishment of staff due to complicated laws, rules and regulations (x ̅ =2.92). This results is in line with the assertion of [21] who said that organizational culture is a form of cohesive effect on organization to generate a sense of loyalty among employees and turn recognizable organizational value to a social glue. The results of Chi-square and Pearson Product Moment Correlation Table 4 shows significant association/relationship existed with marital status (χ 2 =44.21, p≤0.05), educational status (χ 2 =71.03, p≤0.05) and employment status of employee (χ 2 =21.77, p≤0.05), age (r=0.079, ...
... p≤0.005) and organisational culture. The implication of this results is that irrespective of the age an educational status of the studied employees, adherence to the culture of the study area was the ultimate [21]. This results is in line with [14] who argue that bad and poor culture of the organization will lower the level of job satisfaction and reduce employees' productivity in an organization. ...
The study examined the influence of Human Resources functions on Organizational Culture in the Federal University of Agriculture, Abeokuta, Nigeria. Multistage sampling technique was used to select 146 respondents with the use of a well-structured questionnaire. Data collected were analysed using descriptive and inferential statistical tools. Results revealed the mean age of the respondents were 39.2 years, majority (58.9%) were males, 89.1% were married and mean income of the employees were #81,610 per month. Major human resources functions that influenced organizational culture identified were: recruitment and selection (x ̅ =3.67), performance appraisal (x ̅ =3.67), career planning (x ̅ =3.58), training and development (x ̅ =3.36) and compensation administration (x ̅ =3.25). Also, employees abide with the organisation culture based on the way they preserved and maintained by the employees (x ̅ =3.05) and code of conduct were adhered to in the studied organisation (x ̅ =3.05). More so, significant association existed between marital status (χ 2 =44.21, p≤0.05), educational status (χ 2 =71.03, p≤0.05), age (r=0.079, p≤0.005), years of working experience (r=0.031, p≤0.005), human resources strategies (r=0.389, p≤0.005) and organizational culture. The study concluded that employees adhere to the code and conduct of the organisation. Modernized equipment for effective job delivery is highly recommended.
... A welldesigned and broadly adopted training policy exists in the organization, and employees are regularly sponsored for training programs; adequate emphasis is there on developing managerial capabilities and competencies through training in the organization. Many researches depicted that training is conceptually and empirically linked to organizational performance and competitive advantage (Cutcher-Gershenfeld, 1991;Gerhart & Milkovich, 1990;Huselid, 1995;Huselid & Becker, 1996;Iqbal, Hussain, et al., 2013;Jüttner & Wehrli, 1994;MacDuffie, 1995;Wright et al., 2003). Thus it concludes that banks should give regular training as per need and focus on developing the skills, capabilities, and competencies of their employees so that there will be an improvement in the performance of employees. ...
... Through HRs and by adopting effective HR practices. Wright et al. (2003) showed that HR practices were strongly related to organizational commitment, while organizational commitment was weakly associated with quality and shrinkage but substantially connected to remuneration and productivity. Additionally, it showed how organizational commitment and HR practices were closely linked to operating costs and profitability, suggesting that companies that use progressive HR practices to manage their workforce may expect to do well operationally. ...
The current situation calls for effective Human Resource (HR) operations. In order to perform well and remain competitive, especially in service organizations, HR strategies must be given more attention due to ongoing changes in banking, the workplace, Reserve Bank of India (RBI) rules, and rising consumer wants and expectations. It has grown to be one of the most significant differentiators that has an impact on how competitive the Indian banking sector is. The study seeks to assess the current state of the Indian banks' HR system and its status as a competitive advantage. For the final study, a total of 600 replies from Indian banks were gathered. The methodology utilized in the study is partial least-squares structural equation modeling using the Chi-Square test and descriptive analysis, which is based on a large number of independent variables and one dependent variable. There are twelve HR system factors identified that lead to competitive advantage status. Further, these twelve factors collectively explained 63.59 percent of the total variance have been retrieved and all hypotheses lent good support to this study. By concentrating on the HR function, banks can not only survive in this cutthroat economic environment but also obtain a competitive advantage, according to the study's conclusions. There are intersectional variations in the HR systems used by banks and the competitive advantage status they have attained and it is needed to maintain fine-tuning.
Keywords: HRM function, HR practices, Bank financial, HR performance, HR system, Competitive advantage status
... Effective human resource management can increase work performance and capability of the organization to grow, prosper in the global markets, and achieve organizational goals (Alonazi, 2021;Phanwattana & U-on, 2017). Human resource management is the pattern of planned human resource deployments and activities intended to enable an organization achieve its goals (Wright and McMahan, 1992). ...
... Human resource management is the effective use of human resources to respond to the organizational strategic needs through an integration and implementation of planned human resource practices aligned with organizational strategy to gain competitive advantage and achieve organizational goals (Altarawneh and Aldehayyat, 2011;Chan and Mak, 2012;Wright and McMahan, 1992). ...
This research aims to analyze a relationship and an influence of human resource management on educational administration of Thai private universities in Bangkok. This study applied quantitative method. The samples used in this study were 356 employees working in Thai private universities in Bangkok and suburban areas. The instrument used to collect data was a research questionnaire. Statistics used in this study consisted of percentage, mean, standard deviation, Pearson Correlation and Structural Equation Modeling (SEM). The research results illustrated that human resource management was positively associated with educational administration of Thai private universities. Human resource management had an influence on educational administration of Thai private universities at the statistical significance of .01 level, which can be presented as follows: Training and development (= .87, p < .01), performance appraisal (= .75, p < .01), compensation and reward (= .94, p < .01), organization improvement (= .96, p < .01). This study recommended that human resource management principle should be applied in private universities to train, develop and extract talent, skill and knowledge of employees to work for increasing the effectiveness of educational administration of Thai private universities in four areas: teaching students, conducting research, providing academic service to the society and conserving art and culture.
... As práticas incluídas neste sistema remetem para o que alguns autores designam como Práticas de Trabalho de Elevado Desempenho (Timiyo, 2014;Wright et al., 2003). ...
Objective: To Identify and analyze the relationship between human resources management practices and the organizational commitment of workers at a Private Social Solidarity Institution. Theoretical Framework: It focuses on the study of high-performance work practices (Pfeffer, 1998; Becker et al., 2001) and Meyer and Allen (1991, 1997) organizational commitment model, based on three components, underlying three psychological states: affective, normative, and calculative. Method: A case study was carried out in a Private Social Solidarity Institution, based on a semi-directive interview with the person responsible for the institution and the application of a questionnaire survey on the components of organizational commitment (Nascimento et al., 2008) and on workers' perception of high-performance work practices (Esteves, 2008). The sample is mostly made up of female professionals, between 35 and 44 years old, with a degree or 12th year of scholarity, with functions in the area of education. Results and Discussion: It is concluded that human resources management practices are present in different ways in this organization and that workers are committed at different levels. At the same time, there is a correlation, sometimes statistically significant, between human resources practices and normative commitment and a low correlation, without statistical significance, between human resources practices and affective commitment. Research Implications: It allows the enrichment of knowledge of human resources management practices and organizational commitment, as well as the relationships they establish with each other in a particular context associated with social solidarity institutions, contributing to the design of management systems focused on organizational behavior. Originality/Value: It was the first study carried out in a national context on the two constructs in social solidarity institutions, contributing to increasing knowledge about the interrelationship between the two constructs by highlighting the importance of a relational and reflective approach to the importance of organizational behavior.
... SEM is a combination of multiple regression and factor analysis (Bacon et al., 1997), with increasing use in recent times because of its ability to solve modeling challenges (Hair et al., 2010). Wright et al. (2003) argue that SEM is appropriate to test the direct and indirect relationship of constructs, and since the study has a mediating variable, it was ideal to use SEM. Analysis of Moment Structures (AMOS) is software distributed by SPSS with a unique graphical user interface. ...
Purpose-This study aims to examine the influence of training and development (TAD), including performance appraisal (PFA), on the performance of microfinance institutions in a developing economy. Design/methodology/approach-A random sampling drew 100 microfinance institutions in Ghana's Greater Accra Region. Then, a purposive sampling approach selected a cross-section of employees in these institutions. Finally, the data were collected from a sample of 367 respondents, such as managers, utilizing a survey questionnaire. Structural equation modeling (SEM) was used to test hypothesized relationships. Findings-The study results indicate that PFA has a statistically significant positive relationship with organizational performance, and this relationship is partially mediated by job satisfaction (JBS). Interestingly, the TAD process does not have a statistically significant positive relationship with organizational performance when JBS is present in the model. In fact, JBS fully mediates the relationship between TAD and organizational performance. Research limitations/implications-The study is limited to microfinance in tiers two and three in Greater Accra city of Ghana and did not include the entire country. Although the city of Accra provides a generalized representation of the research, which can be replicated, some variables and results may be impacted if other tiers of microfinance organizations are incorporated. Practical implications-TAD, as well as PFA, enhance the performance of microfinance and can be utilized as tools for competitive advantage in small and medium-sized enterprises (SMEs) (e.g. microfinance institutions). The study accentuates the value of TAD, PFA and JBS in microfinance in a developing country like Ghana. Originality/value-This is an original study investigating the effect of TAD and PFA practices on the performance of SMEs in a developing country like Ghana. Also, the study analyses JBS as a mediation variable to performance using SEM, which advances the research methodology in this research field.
... A favourable image will have a positive impact in attracting potential employees Cassell et al. (2002). The biggest competitive advantage of SME and business organizations is retaining and attracting talent, organisations need to positively brand the transformational HR practices of their respective organizations through employer branding as per Wright et al. (2003) Employer branding attracts talent as well as boosts the reputation of the organization, the perception and imagery of the organization which plays a key role in talent retention. Validated by Ulrich D (2005). ...
Small Medium Enterprises (SME’s) unicorns impact the economic drive of India, yet Transformational HR practices to acquire, manage talent are inconsistent, casual, unofficial in SME’s.
This descriptive study on the case study method approach on 30 SMEs of Delhi / NCR, Mumbai, Udaipur, Bangalore, Pune aims to study Transformational HR practices, its possible corelation to business growth in SME. This study will support as reference point, model for SME’s, Unicorns for Transformational HR execution for business growth.
Keywords: TransformationalH.R.In SME, Unicorn, Employer Branding In SME, SMEHR
... The scales that underwent validation were used as a means of measuring seven IM dimensions. The internal communication (IC) had seven items, training and development (TD) had eight items, while reward and incentive (RI) systems contained seven items, all adapted from Wright et al. (2003). Employees' empowerment (EE) was Motamarri et al. (2020). ...
Purpose – The current study aims to examine if the internal marketing and employees’ personal traits can predict their green innovative behavior at the workplace.
Design/methodology/approach – A survey was conducted with 683 frontline employees working in four- and five-star hotels in Serbia. Zero-order bivariate correlations among variables and linear multiple regression were conducted to predict green innovative behavior based on internal marketing, personality traits and psychological capital. Binary genetic algorithms were used to segregate the subset of predictors that would be most suitable to describe variance in the outcome.
Findings – The results showed that internal communication, incentive and reward systems, work support, work environment, openness and creative self-efficacy were the most important predictors of almost all the phases of green innovative behavior.
Originality/value – The research showed that a multidimensional approach in analyzing green innovative behavior is necessary as some factors can be significant or not so significant predictors. Acknowledging that innovation is a multistage process, entailing distinct activities and requiring varied individual behaviors to accomplish each task, amplifies the importance of this inquiry. Employees’ personal characteristics have direct impact on green innovative behavior in hospitality. Further, the results gave an insight into the possible mix of elements of internal marketing that can be used for boosting employees’ green innovative behavior in hospitality. This is important as implementing effective internal marketing practices empowers organizations to motivate employees to invest discretionary efforts.
... Organizational commitment is important for the organization's competitive strategy and to achieve their operational goals (Becker & Huselid, 1998). Wright, Gardner and Moynihan (2003) examine the impact of HRM and employee commitment on the operating performance and profitability of business units that are significantly related to operational measures of performance, commitment as well as operating expenses. Research results indicate that employees' perceptions for HRM with high commitment at the job group level positively related job productivity, outcome and success; again affective organizational commitment partially mediated the HRM impact and organizational citizenship behavior and fully mediated the relationship (Kehoe & Wright, 2013). ...
The purpose of the paper was to investigate the effect of Human Resource Management (HRM) on Employee Commitment (EC) at the different educational organizations in Chittagong, Bangladesh. A purposive sampling technique was used to select the respondents by judgment and two eighty-one (281) applicable responses were utilized for result analyses to achieve the aims with a deductive approach and survey strategy. The findings from descriptive analyses with correlations between the variables and inferential statistics with linear regression, ANOVA and hypotheses testing indicated that there is a very crucial positive relationship as well as significant impact of HRM Practices on EC. The paper imparted with theoretical and practical implications, because it contributed in early literature's and the managers, employers, teachers & concerned authorities of various organizations can make decisions with recent knowledge for proper implementation to perform in the respective professional field. The identified future directions also have been speculated with several limitations.
... It raises a question on the integrated approach of transformational HR practices prevalent in small and medium enterprises in India. Ambule & Barro (1996) propose employer branding as the organization's efforts to promote itself as preferred employer supported by Banality (2011), Gamage (2015), Lumpkin & Jerome (2007) since there is correlation between hiring and the branding of the employer organization, Sees (2017) Cassell et al. (2002) Wright et al. (2003,which has mediating effect on its organisation performance, Joon & Mclean (2006) and differentiates amongst competitors, Smith, et al. (2001) to hire better talent, Fitz-Enzi(1990). This has impact on perception of organisation Ambler & Barrow (1996) and build employer brand and differentiate themselves from their competitors Backhaus & Teko (2004). ...
Small Medium Enterprises (SME’s) unicorns impact the economic drive of India, yet Transformational HR practices to acquire, manage talent are inconsistent, casual, unofficial in SME’s. This descriptive study on the case study method approach on 30 SMEs of Delhi / NCR, Mumbai, Udaipur, Bangalore, Pune aims to study Transformational HR practices, its possible corelation to business growth in SME. This study will support as reference point, model for SME’s, Unicorns for Transformational HR execution for business growth.
... In pursuance of these, researches investigate this at the micro and macro levels. Wright et al., (2003) examined the impact of human resource practices and organizational commitment on the operating performance and profitability of business units. Their study reveal that both organizational commitment and human resource practices (selection, training, pay for performance, participation) are significantly related to operational measures of performance, as well as operating expenses and pre-tax profits. ...
In 2010 the Central Bank of Nigeria (CBN) revealed that financial institutions in the country suffered from performance issues involving institutional factors mainly human resource failures which led to serious operational risks. This expose correlates the assertion of the Organisation for Economic Cooperation and Development (OECD) which identifies human capital as key to the determination of growth in an economy. The objective of this study is to investigate relationship between human resource development and performance of commercial banks using the panel data of 6 commercial banks in Nigeria from 2006 to 2011. Through the use of panel data analysis, the results show that appropriate salary and wage policies as well as training are significant human resource development elements which positively influences performance of commercial banks quoted in the Nigerian Stock Exchange. These findings imply that commercial banks should diversify their salary and wage remuneration strategies and also step up training within their respective structures so as to guarantee improved performance.
... Within this stream of management research, human resource systems are most commonly conceptualized as being composed of commitment-inducement practices (Wright & Essman, 2021). Such HR systems are postulated to augment the performance of organizations and their employees through increased employee motivation and organizational commitment (e.g., Huang et al., 2016;Miao et al., 2021;Kehoe & Wright, 2013;Ratten et al., 2020;Rubel et al., 2018;Takeuchi et al., 2018;Whitener, 2001;Wright & Essman, 2021;Wright et al., 2003). ...
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.
... Therefore, it is recommended to measure the effects of HRM on proximal indicators (Colakoglu et al., 2006). However, clarity is lacking regarding the functioning of the specific mechanism linking HRM and performance (Wright et al., 2003). This mechanism is called the black box (Boselie et al., 2005, p. 77). ...
The future of Dutch healthcare is a challenge that focuses on four aims: the ‘Quadruple Aim’. These aims concern: improving the quality and accessibility of care, enhancing patient experience, reducing healthcare costs and increasing the job satisfaction of healthcare professionals. Healthcare professionals play a major role in the realization of the first three aims. The pressure on healthcare and the scarce capacity forces us to treat this human capital with care. Satisfied employees are partly decisive for the success of an organization. At the same time, an organization expects optimal performance from its employees. This requires an active and involved attitude from the HRM department. The individual employee plays an intermediary role between HRM activities and organizational performance. In order to increase knowledge and understanding about this position, attention to the individual in the context of the organization is essential. In this article, the relationship between HRM, performance and well-being of employees and underlying theoretical explanation models are discussed. Recommendations were made on the contribution that HRM can make to the balance between employee and organizational interests.
... Therefore, it is recommended to measure the effects of HRM on proximal indicators (Colakoglu et al., 2006). However, clarity is lacking regarding the functioning of the specific mechanism linking HRM and performance (Wright et al., 2003). This mechanism is called the black box (Boselie et al., 2005, p. 77). ...
The future of Dutch healthcare is a challenge that focuses on four aims: the 'Quadruple Aim'. These aims concern: improving the quality and accessibility of care, enhancing patient experience, reducing healthcare costs and increasing the job satisfaction of healthcare professionals. Healthcare professionals play a major role in the realization of the first three aims. The pressure on healthcare and the scarce capacity forces us to treat this human capital with care. Satisfied employees are partly decisive for the success of an organization. At the same time, an organization expects optimal performance from its employees. This requires an active and involved attitude from the HRM department. The individual employee plays an intermediary role between HRM activities and organizational performance. In order to increase knowledge and understanding about this position, attention to the individual in the context of the organization is essential. In this article, the relationship between HRM, performance and well-being of employees and underlying theoretical explanation models are discussed. Recommendations were made on the contribution that HRM can make to the balance between employee and organizational interests.
... If we are to treat context in degrees of granularity, inter-firm and macro contexts are coarser by necessity. Work such as that of Wright et al. (2003), while attending to business units within the same firm, has emphasised contextual refinement of the macro level. Jarzabkowski (2004), within SAP scholarship, has indicated finer grain contexts exist and related them to the recursive and adaptive tendencies of doing strategic work. ...
This conceptual paper advocates for a Strategy as Practice (SAP) lens, which prioritises people and context, in future Human Resource Management (HRM) research related to strategy. The paper first provides a summary of what SAP intrinsically brings to the table and how it could provide an additive lens to better understand strategic issues within HRM. Incorporating the natural intersections between SAP, HR role theory, and Strategic Human Resource Management, we then highlight four distinct areas of enquiry which we believe could benefit from an SAP focus: 1/ being more strategic; 2/ strategy-making settings; 3/ incorporating multiple levels of analysis; and 4/ focusing on within-firm variability. In summary, this paper provides support and specific examples of where and how an SAP lens can provide a much needed refocus of attention away from just economic performance towards understanding humans' role in setting HRM initiatives and interpreting their outcomes.
... Similarly, the employee standpoint incorporates satisfaction levels of employees, the effectiveness of employees, staff turnover, degree of absenteeism, staff participation, and overall employee performance Venkatraman & Ramanujam, 1986). The operational angle embodies the scope of product/service defects, customer complaints, market share, and quality of products and services (Venkatraman & Ramanujam, 1986;Wright et al., 2003). Recently, researchers have also attempted to measure organizational performance using a balanced scorecard that Kaplan and Norton (2007) advanced, which evaluates performance within the purview of four dimensions: financial performance, customer service, social responsibility, and employee stewardship. ...
This study is an endeavour to assess the impact of different human resource management practices on the organizational performance of banks in India. Using a convenience sampling technique, a sample of 325 employees from four banks responded to a survey questionnaire. The psychometric properties of the constructs were established through confirmatory factor analysis, while structural equation modelling was utilized to examine the proposed hypotheses. The findings of the study confirmed a positive and significant influence of training and development, performance appraisal, and employee involvement on the performance of the banks under investigation. However, recruitment and selection indicated a positive but insignificant impact. The outcome of this research can assist policy and decision-makers in enhancing organizational performance by investing in appropriate human resource management practices. The study is equally significant for human resource professionals and practitioners to foster the professional development and advancement of their personnel.
... Initially, it was believed that it was not clear as to what effects determined the individual tools used in the HR function or whether success is determined by the overall construction of the human resource management (HRM) process in a particular company (Wright et al., 2003). Because of difficulties in formally assessing HR practices, some researchers even questioned whether they contribute to organizational outcomes or whether organizational success leads to increased investment in strengthening HR activities (Gerhart, 2005). ...
Objective: The article aims to identify the degree of interest and consider HR 4.0 issues in scientific research. This approach enables the analysis of the existing body of work to prepare for future empirical research by gathering relevant resources of knowledge available on this subject, as well as by varying research directions. Research Design & Methods: The study adopted formal approaches and systematic methods to locate, select, evaluate, summarise, and report the references collected in a literature review. Articles were analysed using the VOSviewer software (version 1.6.19), which is a tool used to construct and visualise bibliometric networks. Findings: The concept of HR 4.0 forms a separate cluster directly related to the concept of Industry 4.0, and only through this path is it shaped by other semantic determinants. This indicates a lack of detailed analysis of the concept and thus probably of the entire concept itself. In the future, from the perspective of the HR 4.0 concept, the HR function will implement specific tools, such as cybernetic influences, digitalisation of human resource management (HRM), remote HRM, human – machine interface skills, human – strategic organisational links, and human – technology interface competences. Implications & Recommendations: To date, researchers have focused on technological tools supporting human resource management processes, hence, most references have been identified with the concept of e-HRM. On the other hand, if we take the concept of Industry 4.0 as a starting point, then based on its consequences, it will also be possible in the future to analyse the relationship between the HR function and Industry 5.0. Contribution & Value Added: There is a wide cognitive gap in the research on the concept of HR 4.0, and the information obtained from research places humans at the centre of Industry 4.0 alongside technology and organisation.
... This measurement (α = 0.81) was generally accepted by the literature (Popadic, Cerne & Milohnic, 2015;Cao et al., 2009). Similarly, selective hiring questionnaire was developed by Boxall (2007) and Wright (2003). It has total of 7 items and reliability of the scale of (α = .81).In order to collect data on comprehensive training, a modified questionnaire (α = .69) ...
The aim of this study was to empirically validate the impact of ability-enhancing HR bundles on organizational ambidexterity through mediation of employees cognitive factors and employees exploration and exploitation. The multi-level data was collected from 600 employees of the software companies and analyzed through MEDTHREE analysis and SEM using AMOS software. Data was collected in two-time waves and results revealed positive relationship between ability-enhancing HR bundles and organizational ambidexterity. This study contributes to literature by providing new insights and by investigating links of ability-enhancing HR bundles with organizational ambidexterity directly and indirectly.
... SEM is a combination of multiple regression and factor analysis (Bacon et al., 1997), with increasing use in recent times because of its ability to solve modeling challenges (Hair et al., 2010). Wright et al. (2003) argue that SEM is appropriate to test the direct and indirect relationship of constructs, and since the study has a mediating variable, it was ideal to use SEM. Analysis of Moment Structures (AMOS) is software distributed by SPSS with a unique graphical user interface. ...
Purpose
This study aims to examine the influence of training and development (TAD), including performance appraisal (PFA), on the performance of microfinance institutions in a developing economy.
Design/methodology/approach
A random sampling drew 100 microfinance institutions in Ghana's Greater Accra Region. Then, a purposive sampling approach selected a cross-section of employees in these institutions. Finally, the data were collected from a sample of 367 respondents, such as managers, utilizing a survey questionnaire. Structural equation modeling (SEM) was used to test hypothesized relationships.
Findings
The study results indicate that PFA has a statistically significant positive relationship with organizational performance, and this relationship is partially mediated by job satisfaction (JBS). Interestingly, the TAD process does not have a statistically significant positive relationship with organizational performance when JBS is present in the model. In fact, JBS fully mediates the relationship between TAD and organizational performance.
Research limitations/implications
The study is limited to microfinance in tiers two and three in Greater Accra city of Ghana and did not include the entire country. Although the city of Accra provides a generalized representation of the research, which can be replicated, some variables and results may be impacted if other tiers of microfinance organizations are incorporated.
Practical implications
TAD, as well as PFA, enhance the performance of microfinance and can be utilized as tools for competitive advantage in small and medium-sized enterprises (SMEs) (e.g. microfinance institutions). The study accentuates the value of TAD, PFA and JBS in microfinance in a developing country like Ghana.
Originality/value
This is an original study investigating the effect of TAD and PFA practices on the performance of SMEs in a developing country like Ghana. Also, the study analyses JBS as a mediation variable to performance using SEM, which advances the research methodology in this research field.
... can be created through increasing employee engagement, according to a 2003 study by Wright, Gardner, and Moynihan (2003). Organizations with completely devoted workers will be more productive, they said. ...
... Social exchange theory argues that individuals try to reciprocate when they feel that the organization invests in their well-being [48][49][50][51]. Benevolent HR practices that reflect transformational leadership attitudes-such as employees' long-term development and career opportunities or efforts to improve their work-life balance [52]-represent such an investment. Hence, HR practices can affect employees' exchange relations with the organization in positive ways. ...
In this study, we examine the relationship between supervisor gender, the adoption of HR practices, and employee commitment. Based on leadership theories arguing that female supervisors are more focused on employee needs than male supervisors, we suggest that female supervisors are more likely to adopt HR practices that address employee needs. Using social exchange arguments, we predict that this in turn leads to higher affective commitment among employees. We test our theoretical predictions using three waves of the German Linked Personnel Panel (LPP). Our results indicate that female supervisors promote personnel development practices (DP) more than male supervisors, which has a positive impact on employees’ affective commitment to the organization. We find no statistically significant effect of a female supervisor on the provision of family-friendly work practices (FFWP). We discuss the implications of these findings and suggest avenues for future research.
... Labour management is a distinctive approach to employee management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce using an integrated array of cultural, structural and personnel techniques (Storey, 2001). Labour management can also be looked at as a strategic approach to the management of human resources that involves all management decisions and actions that affect the relationship between the organization and employees (Beer et al, 1984) It has been observed by researchers that there is a positive relationship between labour management practices and employee performance (Gould-Williams, 2003;Park et al., 2003;Wright et al., 2003;Tessema and Soeters, 2006) and organizational performance (Quresh et al., 2010). Human resource plays a positive role which may be a source of competitive advantage (Schuler and MacMillan, 1984;Pfeffer, 1994). ...
The study assessed the relationship between labour management practices and employee performance in five selected local governments in Gombe State, using descriptive correlational and survey designs. Questionnaire was used to collected data. Also, simple regression and correlation analysis in order to accomplish the objectives of the study. It was revealed that more than 63% of respondents in local governments are men, most of them are graduates, majority are above 30 years, 86.9% are on permanent basis and majority have 10 and above years of experience. The level of labour management practices (employee reward, training and development, employee performance appraisal, and communication) differs significantly according to LGA except employee supervision that revealed a no significant difference. Employee performance showed a significant difference (overall F=6.777 and sig. 0.000). The degree of labour management practices was found to be positively and significantly correlated with all aspects of employee performance (all sigs. < 0.001 and all r-values> 0.238). Regression analysis showed that items of labour management practices (training and development, employee performance appraisal, and communication) positively influence performance except for employee reward that revealed a negative influence towards performance (Beta-.268). It was concluded employee reward, communication, employee supervision significantly influence performance while training and development, and employee performance appraisal do not. It was recommended that rewards of employee in local governments should be increased in order to boost performance.
... In relation to human resource management strategies, several studies have examined mediating variables influencing the implementation of human resource management and its impact on organizational performance. Examples of these variables include affective commitment (Al-Hawary & Alajmi, 2017), human capital (Wright et al., 2011), and their combined effects, as explored by Jiang et al. (2012) and Raineri (2016). Human capital represents an individual's knowledge, skills, and abilities (Becker, 1964;Schultz, 1961), necessitating the acquisition of new knowledge within organizations to gain and sustain a competitive edge in talent management (Collings et al., 2018). ...
This study aims to examine the effect of implementing human resource management on organizational performance by mediating talent management. A structural equation model (SEM) was used to analyze the data by testing consisting of three hypotheses. The study used a population of respondents from the leadership of the High District Attorney's Office in Gowa Regency, South Sulawesi by collecting data through questionnaires and the number of samples that met the criteria for analysis from 100 leaders in various sections. The research concludes as follows: (1) The application of human resource management has a positive and significant effect on talent management; (2) The application of human resource management has no direct effect on organizational performance; (3) Talent management has a positive and significant effect on organizational performance. Decision makers and resource management leaders can use the results of this study to implement resource management strategies in the form of implementing talent management to improve organizational performance.
This study is to ascertain the degree of employee satisfaction at the government collecting agency under the Ministry of Transportation and Communications, Bangsamoro Ports Management Authority in Sulu. Using a purposive sample technique, 100 employees served as respondents for the quantitative-descriptive design. The majority were casual and college-educated, with a slightly skewed distribution of educational attainment. The majority were satisfied with their work environment, discipline, and pay. The Bangsamoro Port Management Authority employee respondents in Sulu have varying opinions about their level of satisfaction based on their gender, with the exception of work discipline. The standard deviations of all three tables show some variation among the employee respondents in their agreement, but not enough to affect the overall rating. Their level of happiness is not considerably impacted by other demographic factors like age, length of service, education, or appointment status. Accordingly, employee respondents who express greater satisfaction with one facet of their work are likely to do so with the others as well, and vice versa. The following recommendations are made by this study: Bangsamoro Ports Management Authority-Sulu may maintain and increase employee satisfaction by providing a fair, encouraging, and rewarding work environment; Bangsamoro Ports Management Authority-Sulu may improve employees' prospects for career advancement, particularly for those who have been employed permanently; Lastly, employees may seek and pursue personal and professional growth and development by taking advantage of the organization's opportunities and incentives as well as participating in lifelong learning and professional development activities and future studies may compare the employee’s satisfaction at Bangsamoro Ports Management Authority-Sulu with other ports management authorities in the region and the country.
This research examines the impact of pertinent HR practices/policies upon a person's job contentment and turnover in higher educational institutes. A special context of universities of KP have been chosen where numerous employees have developed job dissatisfaction and increased turnover because of deteriorating security conditions including but not limited to terrorism attacks, civil unrest, widespread diseases and conducive working environment. This has ultimately compelled them to leave their jobs and flee to other cities such as Islamabad and Karachi. More specifically, three HR policies i.e. employee participation, training and performance appraisal are analyzed to affect job satisfaction and turnover. A quantitative survey was conducted to assess job outcomes of University teachers in multiple cities especially where living conditions have deteriorated in the recent past. Respondents were segregated on the basis of age, income per month, designation and gender basis. Frequency analysis and Mean Average Scores are reported for each construct. The regression results suggest a positive significant relation of employee participation and performance appraisal with that of job satisfaction while a significant negative relation is found with turnover ratio. The study concludes that universities should focus on implementing HR policies and practices effectively in workplace which will help retain employees and keep them motivated. This can be one of the many effective strategies to retain workforce and discourage brain-drain out of the country. The study ends with acknowledging limitations and offering future research directions.
This study aims at exploring the impact of high performance HR practices on employees' job performance. The study sought to establish the effect of job design, training and development, motivation, supervisory support, working environment and compensation on employees' job performance in Leather goods manufacturing companies at Vellore district. The research design used was descriptive survey research design. Stratified proportionate random sampling was used. Data was collected using questionnaires and analyzed by using descriptive statistics, correlation and regression analysis, chi-square and Friedman test was done to establish the relationship between various HRM practices and employees' job performance. Data was presented in the form of tables. Based on the findings, job design, supervisory support and work environment are having a positive and significant relationship with employees' job performance and training and development, motivation and compensation are not having a significant relationship with employees' job performance. Conclusions as well as implications are discussed.
This research paper analyses the survey of different contributions in the fields of economics and industrial HRM decisions by taking into account the performance of firms, HRM, advertising expenditures, and areas for the development of organizations or human resources. This study gives a review of existing accounts of literature and the evolution of different firms that reveal the re-examination of early years’ time. This is a serious gap that is not demonstrated by the researchers. It has also been done in different industries for two decades for field existence in influential and academic writers for the rank of economics and economics-based rank and review. This study was mainly done from 2000 to 2022 for the economy of Pakistan. The organizational structure is reviewed, and this paper ends with a brief review of recent developments that have occurred in these decades on the basis of time series econometric modelling.
Purpose
This study aims to draw on social exchange theory and reciprocity norm to examine the direct effects and mechanisms through which developmental human resources (HR) practices influence employee knowledge hiding behaviors. Additionally, the authors investigate the mediating role of psychological collectivism and the moderating role of affective organizational commitment.
Design/methodology/approach
To test the research model, the authors employed a three-stage time-lagged study design and surveyed a sample of 302 employees in China. The authors utilized confirmatory factor analysis, hierarchical regression analysis and the bootstrapping method using statistical product and service solutions (SPSS) and analysis of moment structures (AMOS) to test the hypotheses.
Findings
The findings indicate the following: (1) Developmental HR practices are negatively associated with playing dumb and evasive hiding, but positively linked with rationalized hiding; (2) Psychological collectivism serves as a mediating factor in the relationship between developmental HR practices and knowledge hiding; (3) Affective organizational commitment not only moderates the relationship between developmental HR practices and psychological collectivism, but also reinforces the indirect impact of developmental HR practices on knowledge hiding.
Originality/value
This study offers a fresh perspective on previous research regarding the impact of developmental HR practices on employee behavior. Furthermore, it provides practical recommendations for organizations to enhance knowledge management by fostering stronger emotional connections between employees and the organization.
In an economic environment marked by rapid change, characterized by factors such as globalization and increasing demands from stakeholders and clients, public institutions and state-owned enterprises have become significant players through their multiple interventions in providing public services to citizens and businesses, in implementing structuring projects for economic and social development, and in promoting investment. This paper aims to examine the correlation between human resource management and employee performance within Moroccan public institutions and state-owned enterprises to understand how these organizations should manage their human capital to enhance their performance. The sample consists of 67 top executives of Moroccan entities operating in various sectors. Data were collected through a self-administered questionnaire completed by the participants. Partial least squares (PLS) was used to estimate structural equation models and analyze causal relationships between variables. SmartPLS 4 software was employed for model analysis. The findings reveal a positive and significant impact of training, selective recruitment, digital transformation, and performance-based compensation on employee performance improvement. The results indicate that the T-values are 3.126, 2.870, 2.178, and 2.406, respectively. Regarding the Q² value, it stands at 0.899, confirming the model’s predictive capability. The GoF coefficient is 0.851, affirming the overall validity of the model. However, it was observed that there is no significant link between job security and performance, as the T-values did not exceed the threshold of 1.64. This study suggests adopting changes in HRM practices to enhance the organizational performance of public institutions and state-owned enterprises.
This study grounds on the contemporary concern towards sustainability, reviewing literature to ascertain the personality traits of current leaders, framing them under the most effective leadership style in order to leverage organizational green consciousness and performance. It provides insights on the multilevel social dynamics outlining individual citizenship behaviors at work, as it advances that organizations shall rely on green transformational leadership to enhance the workforce green cognitions and behaviors, providing workplace opportunities to engage in environmental management related activities, thus leveraging green consciousness and performance. Hence, this study maps the current leader's personality traits so that their leadership paradigm may be best captured in terms of the value congruence between leaders/followers, solidifying a green psychological climate at the organization, impacting on its psychological capital and ownership, reconfiguring the organizational psychological contract by defining it as a collaborative learning process.
Student’s Satisfaction And Expectations Towards E-Learning Courses in
Indore City
In today’s globalized scenario, where advancements in technologies have facilitated people to connect, communicate and collaborate, and where organizations are striving to create an ecosystem that develops sustainable competitive advantage, people issues become a key factor. Organizations, therefore, require an understanding of the business scenario, organizational context and employee characteristics that influence employee behaviour and their workplace relationships as well as their intentions to stay. Though all organizations expect their employees to act with a sense of trust and commitment, the business context of family- and non-family firms are unique and different. While family firms are characterized by the family’s value system and emotions in building strong employee engagement, non-family firms are transactional and driven by outcomes. The study explores differences in organizational commitment and organizational citizenship behaviour between family- and non-family firms, and it draws on the tenets from the Social Exchange theory. The data has been collected from 634 dyadic responses captured at two levels—employees’ self-reported commitment levels and their citizenship behaviour rated by their managers. Our results show that, in the Indian context, the employees of family firms demonstrate a higher affective, continuance and normative commitment as compared to those of non-family firms. However, the two groups did not differ significantly in their organization citizenship behaviour. It was also found that the relationship between organizational commitment and citizenship behaviour was stronger in employees of family firms than in employees of non-family firms.
Within the last decades, the idea that the competitive advantage of organizations can be driven by the accumulation of high-quality human resources has been affirmed in the scientific literature. The focus on human capital as a source of competitive advantage has led organizations to compete in the talent war and to adopt a strategic management of people mainly defined resource-based. This perspective has emphasized the role played by human resources as an intangible though valuable and potentially valuable, rare, and non-substitutable asset of the organization. Human resources are precious because they are scarce, specialized, and hold tacit knowledge. The chapter goes into detail about this perspective in light of the huge transformation brought about by the pandemic, both to the labor market and to the workforce.
The Human Resource (HR) practices are critical cornerstone in contemporary organizational management. The field of HR has evolved significantly over the years, transitioning from a primarily administrative function to a strategic partner in achieving business objectives. Today, HR professionals are responsible for aligning HR practices with the organization's goals, ensuring that the right talent is in place, and creating a culture that supports high performance and employee well-being. Amidst the world of Technology, even HR is having its analytical wing and almost all function of HR is getting routed through the HR Analytics domain. This comprehensive review, led by researchers, delves into the multifaceted landscape of HR practices, exploring their significance, evolution, and benefits on organizational success. With a focus on both theoretical frameworks and real-world applications, the researchers examine the spectrum of HR practices, ranging from recruitment and selection to performance management and employee development. Employing a Descriptive and Exploratory Research design, this study encompasses both Primary and Secondary data. Primary data takes the form of interviews with HR Heads from five companies, offering insights into the HR practices of organizations. The research aims to understand the essence and significance of HR practices, while also investigating the benefits these practices bring to organizations. This study provides valuable insights into HR practices and highlights their adaptive nature in various organizational contexts. The analysis presented in this paper serves as a resource for HR professionals, managers, and researchers seeking to enhance their understanding of HR practices that drive organizational excellence. By critically assessing best practices, challenges, and emerging trends, this research contributes to the broader discussion on HR practices' impact on organizational success.
Although research on High-Performance Work Systems (HPWS) has been studied predominantly from the perspective of organizations, recent work calls for the need to incorporate the perceptions of HPWS by employees. Drawing on assertions from social exchange and signaling theory, we propose that employees’ perception of HPWS (PHPWS) will promote innovative behaviors through perceived organizational support (POS). Furthermore, the positive relationship between PHPWS and innovative behaviors will strengthen when employees are supported by their leader. Hypotheses are tested with a sample of 714 employees from 10 South Korean firms. Results indicate that employees’ PHPWS have positive associations with POS and innovative behavior, and that POS mediates this positive relationship. Moreover, we found that a positive relationship between their POS and innovative behavior and the indirect effect of PHPWS on innovative behavior via POS were even more strengthened by perceived leader support, confirming its moderating effect. Theoretical and practical implications are discussed.
In the present day, success and worth of businesses depend more on intellectual capital. So, knowledge is a critical resource, for any organizational growth and sustainability. For small and medium enterprises (SMEs) the latent knowledge seen as the principal component for success often tends to be over guarded. That itself is sometimes detrimental to the SMEs growth. This outlook towards knowledge by SMEs has to undergo a change as there is vast room for knowledge management (KM). Abundant studies and research exist on KM, but the focus on SMEs is limited. Current scenario of globalization, technological advances, higher returns on intellectual capital, growing significance of knowledge-intensive industries makes KM a strategic and competitive tool for SME growth, sustainability, and development. KM is indispensable for successful and sustainable business in this contemporary complex economy. Thus, the overall aim of this study done by in-depth literature review and contextual analysis is to enhance the understanding of the role and room for KM in SMEs in this globalized world.
Objectives:
To investigate the macular imaging features in patients with unilateral myelinated retinal nerve fiber (MRNF) and high myopia syndrome.
Materials and methods:
Six patients with unilateral MRNF and high myopia syndrome and 13 myopic controls were enrolled in this study. Spectral domain (SD) optical coherence tomography (OCT), SD enhanced depth imaging OCT, and OCT angiography (OCTA) imaging results of MRNF-affected eyes were compared with the fellow eyes and myopic controls.
Results:
All patients had abnormal foveal reflex and/or ectopia. No significant difference in retinal thickness parameters were noted between the groups. In OCT scans, posterior vitreous detachment (PVD) was observed in 4 out of the 6 MRNF-affected eyes. Regarding OCTA parameters, only a significant increase in acircularity index was noted in myelinated eyes (p=0.01).
Conclusion:
All patients demonstrated normal foveal contours, macular structure, and OCTA features except for a higher acircularity index. The incidence of PVD was notably increased in the myelinated eyes.
Purpose
This study aims to examine the employment practices of family firms in emerging markets. Drawing from the social exchange theory, the authors propose that transgenerational control intention enhances the motivation for family owners to engage in favorable employment practices as inducement for future contribution of employees.
Design/methodology/approach
Multilevel regression models were applied to test the hypotheses with a sample of 3033 Chinese private family firms.
Findings
The results show that the employment practices of family firms are positively associated with transgenerational control intention, and the effect of transgenerational control intention is contingent on regional social trust.
Originality/value
This study highlights the role of transgenerational control intention of family owners in motivating favorable employment in family firms. The study adds nuance to the variances in employment behaviors of family firms as well as the family owner-employee exchange relationship in emerging markets.
The study examined reward systems and organizational performance. This was done in the measures of reward system, compensation policy, and performance recognition for the organization's performance at Delta State University. Responses from respondents were retrieved with the aid of a 5-point Likert scale questionnaire. A survey research design was employed in this study, and the stratified random sampling method was also adopted to administer 367 staff members from Delta State University. The questionnaire was coded with the aid of a spread sheet, and the respondents profiles were analyzed manually using a simple percentage approach. The research questions were analyzed with the aid of descriptive statistics, and the hypotheses of the study were tested using multiple regression analysis with the aid of SPSS. The results from the analysis revealed that the dimensions of reward systems (compensation policy and performance recognition) in this study have significant and positive effects on organizational performance. The study concludes that a good reward system provides positive assurance for fulfilling the needs and wants of employees in the workplace. It generally has an optimistic attitude behind it, and it is generally given to have good leverage to satisfy the psychological requirements of employees. The goal of the study was to make a recommendation about how employee recognition, when considered from formal, informal, and day-today perspectives, could inspire staff to ensure high performance in tertiary institutions. Therefore, it is advised that the management of tertiary institutions devote trustworthy resources to the development and implementation of employee recognition programs in order to produce the desired results. The study also recommends that management view employee recognition as a significant investment rather than one of the pricey and unnecessary practices that offer little value to tertiary institutions.
Agriculture is the backbone of food production that contributes to the nation’s growth. Recently, the revolution in information technology (IT) such as the Internet of Things (IoT), smart farming, and Artificial Intelligence (AI) technologies have successfully transformed agribusiness. Numerous prior studies have documented the success of these IT applications in achieving agribusiness performance. Despite the rapid growth of IT applications in the agriculture sector, previous studies have shown limited and poor utilisation of IT due to several issues in managing IT resources such as a short supply of infrastructure development, lack of young participation in the agriculture industry, and limited access to financial support from related parties. Therefore, this paper proposes a conceptual model that provides an overview of how Information System (IS) resources are managed for agribusiness performance. Based on the notion of the Resource Management model within the resource-based view (RBV) theory, this paper introduces a process model of how value is generated from IS resources. The paper examines the subject, concepts, and objectives for the upcoming study using a variety of works of literature from several disciplines. This study may provide insights into how IS resources are managed in agriculture, thus unlocking the IS potential for achieving agribusiness performance.KeywordsInformation system (IS) resourcesInformation technology (IT)RBV theoryResource management modelAgribusiness performance
Industrial Relations is one of the key fundamental elements of Organizational Performance, Prosperity and Sustainability. Improved industrial relations remarks highly committed, motivated and loyal employees in an organization. The aim of this paper is tostudy the impact of effective Industrial Relation Policiesin terms of three HRM practices namely; compensation, performance evaluationand recruitment and selection on Human Resource Involvement measured in terms of employee performance in Bharat Heavy Electricals Limited, Bhopal and at the same time identify various employee relations practices used by BHEL. To achieve the study objectives, the researchers developed and distributed a self-administered questionnaire to 125 employees of BHEL, Bhopal working in 5 different manufacturing units. The data collected was analyzed using SPSS. Regression and correlation analysis indicated a significant and positive association of the three HRM practices considered on employee performance. The study provides insight to the management of the organizations to use these practices for superior and improved performance and contributes to the limited empirical field of knowledge.
This chapter seeks to define and analyse performance evaluation, which are the methods used by organizations to evaluate the performance of employees and their limitations. Based on a qualitative methodological approach, the interview survey was used as a research tool. The results presented demonstrate that motivation and performance are very present in the organizations addressed, although the stipulated evaluation methods differ from organization to organization, as well as the implications and limitations that may arise from performance evaluation.
Based on 7,939 business units in 36 companies, this study used meta-analysis to examine the relationship at the business-unit level between employee satisfaction–engagement and the business-unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents. Generalizable relationships large enough to have substantial practical value were found between unit-level employee satisfaction–engagement and these business-unit outcomes. One implication is that changes in management practices that increase employee satisfaction may increase business-unit outcomes, including profit.
Although management of drug testing programs is becoming a critical organizational issue, no systematic conceptual framework has been applied to the study of employee reactions to drug testing. In this study an organizational justice framework was used to explain and predict the relationships among two types of justice (procedural justice and outcome fairness), employee attitudes (job satisfaction, commitment, and management trust), and behavior (turnover intentions and performance). Survey data from 195 employees in a pathology laboratory indicated that justice predicts employee attitudes and performance. Specifically, procedural justice, but not outcome fairness, predicted all 5 criterion variables. These results demonstrate the importance of procedural justice perceptions for predicting employee reactions to drug testing programs.
The construct of prosocial organizational behavior is defined and 13 specific forms are described. They vary according to whether they are functional or dysfunctional for organizational effectiveness, prescribed or not prescribed as part of one's organizational role, and directed toward an individual or organizational target. Potential predictors and determinants drawn from the social psychological literature suggest an agenda for research in organizational settings.
Studied changes across time in measures of organizational commitment and job satisfaction as each related to subsequent turnover among 60 recently employed psychiatric technician trainees. A longitudinal study across a 101/2-mo period was conducted, with attitude measures (Organizational Commitment Questionnaire and Job Descriptive Index) collected at 4 points in time. Results of a discriminant analysis indicate that significant relationships existed between certain attitudes held by employees and turnover. Relationships between attitudes and turnover were found in the last 2 time periods only, suggesting that such relationships are strongest at points in time closest to when an individual leaves the organization. Organizational commitment discriminated better between stayers and leavers than did the various components of job satisfaction. (36 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
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.
This paper examines the link between related and unrelated diversification and human resource management (HRM) controls. The paper presents a model proposing that the type of corporate (macro) controls used by related or unrelated firms implies a relative emphasis on either flexibility or fit among HRM practices in that related firms emphasize flexibility and unrelated firms emphasize fit. This emphasis on flexibility or fit, in turn, has implications for the use of HRM (micro) controls such as clan, behavior, and outcome controls such that related firms exhibit the use of all three types of HRM controls, while unrelated firms exhibit a relative emphasis on the use of outcome controls. © 1997 by John Wiley & Sons, Ltd.
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.
A major challenge for Strategic Human Resource Management research in the next decade will be to establish a clear, coherent and consistent construct for organizational performance. This article describes the variety of measures used in current empirical research linking human resource management and organizational performance. Implications for future research are discussed amidst the challenges of construct definition, divergent stake-holder criteria and the temporal dynamics of performance. The concept of performance information markets that addresses these challenges is proposed as a framework for the application of multi-dimensional weighted performance measurement systems.“What are you doing?” inquired the policeman of the drunk crawling on the pavement under the glow of a lamppost. “I am looking for my quarter”, came the reply. “Where did you lose it?” asked the officer helpfully. “I dropped it over there by that payphone”, retorted the drunk. Incredulous, the officer asked, “Then why are you looking in the middle of street?” “Because there is more light over here”, he replied with his nose nearly to the ground.
Recent empirical research finds that the relationship between human resource (HR) decisions and firm performance is significant in both statistical and practical terms. However, the typical research design in this area relies upon on a single respondent to validly assess firmwide HR practices. To date, no study has adequately addressed the reliability of such measures, a basic requirement of construct validity. Previous efforts have either defined reliability so narrowly as to miss a major source of measurement error (raters) or have estimated the unreliability due to raters using incorrect methods. In both cases, the result is upwardly biased estimates of reliability. We estimate reliabilities using intraclass correlation and generalizability coefficients. Our reliability estimates suggest substantial measurement error in the types of HR effectiveness and HR practice measures typically used to predict firm performance. We discuss how this degree of measurement influences research and policy implications.
Over the past 10 years a plethora of research has been conducted seeking to establish a relationship between human resource (HR) practices and firm performance. While this research has demonstrated promising results, a significant number of problems exist. This paper seeks to identify the theoretical and empirical challenges facing researchers who wish to further establish the impact of HR practices on firm performance. We conclude with some recommendations for future research in this area that might more accurately assess this relationship in ways that will be useful for both researchers and practitioners.
This study examined whether respondents’ implicit theories of performance could impact their responses to surveys regarding HR practices and effectiveness. Senior Human Resource and Line Executives and MBA, graduate Engineering, and graduate HR students read scenarios of high and low performing firms and were asked to report on the prevalence of various HR practices and effectiveness of the HR function in each firm. Results indicated that all four groups of respondents held implicit theories that high performing firms were characterized by extensive HR practices and had highly effective HR functions relative to low performing firms. Subjects with substantial work experience reported greater differences between and high and low performing firms than did subjects with relatively little work experience. The implications of these results for research on the HR Practices – Firm Performance relationship are discussed.
Five forms of organizational spontaneity are described (helping co-workers, protecting the organization, making constructive suggestions, developing oneself, and spreading goodwill). Organizational spontaneity is compared with the seemingly analogous constructs of organizational citizenship behavior and prosocial organizational behavior. Based on a selective review of the literature, a multilevel model of spontaneity is presented. Positive mood at work is a pivotal construct in the model and posited as the direct precursor of organizational spontaneity. Primary work-group characteristics, the affective tone of the primary work group, affective disposition, life event history, and contextual characteristics are proposed to have direct or indirect effects, or both, on positive mood at work. Motivational bases of organizational spontaneity also are described. The model and its implications are discussed.
Although management of drug testing programs is becoming a critical organizational issue, no systematic conceptual framework has been applied to the study of employee reactions to drug testing. In this study an organizational justice framework was used to explain and predict the relationships among two types of justice (procedural justice and outcome fairness) employee attitudes (job satisfaction, commitment, and management trust), and behavior (turnover intentions and performance). Survey data from 195 employees in a pathology laboratory indicated that justice predicts employee attitudes and performance. Specifically, procedural justice, but not outcome fairness, predicted all 5 criterion variables. These results demonstrate the importance of procedural justice perceptions for predicting employee reactions to drug testing programs.
Based on 7,939 business units in 36 companies, this study used meta-analysis to examine the relationship at the business-unit level between employee satisfaction-engagement and the business-unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents. Generalizable relationships large enough to have substantial practical value were found between unit-level employee satisfaction-engagement and these business-unit outcomes. One implication is that changes in management practices that increase employee satisfaction may increase business-unit outcomes, including profit.
Increasingly, firms are considering the adoption of new work practices, such as problem-solving teams, enhanced communication with workers, employment security, flexibility in job assignments, training workers for multiple jobs, and greater reliance on incentive pay. This paper provides empirical evidence to address the question: do these human resource management practices improve worker productivity? For this study, we constructed our own data base through personal site visits to 26 steel plants which contained one specific steelmaking process, and collected longitudinal data with precise measures on productivity, work practices, and the technology in these production lines. The empirical results consistently support the following conclusion: the adoption of a coherent system of these new work practices, including work teams, flexible job assignments, employment security, training in multiple jobs, and extensive reliance on incentive pay, produces substantially higher levels of productivity than do more 'traditional' approaches involving narrow job definitions, strict work rules, and hourly pay with close supervision. In contrast, adopting individual work practice innovations in isolation has no effect on productivity. We interpret this evidence as support for recent theoretical models which stress the importance of complementarities among a firm's work practices.
Using a unique international data set from a 1989-90 survey of 62 automotive assembly plants, the author tests two hypotheses: that innovative HR practices affect performance not individually but as interrelated elements in an internally consistent HR "bundle" or system; and that these HR bundles contribute most to assembly plant productivity and quality when they are integrated with manufacturing policies under the "organizational logic" of a flexible production system. Analysis of the survey data, which tests three indices representing distinct bundles of human resource and manufacturing practices, supports both hypotheses. Flexible production plants with team-based work systems, "high-commitment" HR practices (such as contingent compensation and extensive training), and low inventory and repair buffers consistently outperformed mass production plants. Variables capturing two-way and three-way interactions among the bundles of practices are even better predictors of performance, supporting the integration hypothesis. (Abstract courtesy JSTOR.)
The authors investigate the productivity effects of innovative employment practices using data from a sample of thirty-six homogeneous steel production lines owned by seventeen companies. The productivity regressions demonstrate that lines using a set of innovative work practices, which include incentive pay, teams, flexible job assignments, employment security, and training, achieve substantially higher levels of productivity than do lines with the more traditional approach, which includes narrow job definitions, strict work rules, and hourly pay with close supervision. Their results are consistent with recent theoretical models which stress the importance of complementarities among work practices. Copyright 1997 by American Economic Association.
Study results indicate a positive association between use of high-involvement work practices and employee retention and firm productivity. A disordinal interaction was indicated: employee turnover was associated with decreased productivity when use of high-involvement work practices was high and with increased productivity when use of these practices was low.
Sustainable competitive advantage has proved elusive for companies in the 1990s. While making enormous investments in technology, research, and state-of-the-art marketing, many of today's managers continue to ignore the single most important factor in achieving and maintaining competitive success: people. Yet all evidence indicates that the source of competitive advantage is shifting from technology, patents, or strategic position to how a company manages its employees. In this excerpt from his newly published book, Competitive Advantage through People, Jeffrey Pfeffer describes how successful companies have overcome the barriers to change and offers a solid framework—with specific actions—for implementing these changes in any industry.
Studies of the relationship between human resource (HR) practices and firm performance typically use a single respondent to assess firm level HR practices or HR effectiveness. However, previous research in other substantive areas suggests that rater differences are a potentially important source of measurement error. We demonstrate analytically the potential consequences of both random and systematic measurement error in research on HR and firm performance. However, our main focus is on random error and we show how generalizability theory can be applied to obtain better estimates of reliability by simultaneously recognizing multiple sources (e.g., items, raters) of random measurement error. These more inclusive reliability estimates, in turn, offer the possibility of more precisely quantifying substantive relationships in the HR and firm performance literature. In our sample, reliabilities (as estimated by generalizability coefficients) for single-rater assessments of HR variables were generally below .50. This degree of measurement error, if present in substantive studies on HR and firm performance, could lead to considerable bias, given that an unstandardized regression coefficient is corrected for measurement error in the independent variable by dividing by its reliability coefficient (not its square root). We also found only limited convergent validity between HR and line managers ratings of a second type of HR measure, HR effectiveness. In general, our findings suggest that future researchers need to devote greater attention to measurement error and construct validity issues. Our study provides an example of how generalizability theory can be useful in this pursuit.
A major challenge for Strategic Human Resource Management research in the next decade will be to establish a clear, coherent and consistent construct for organizational performance. This article describes the variety of measures used in current empirical research linking human resource management and organizational performance. Implications for future research are discussed amidst the challenges of construct definition, divergent stake-holder criteria and the temporal dynamics of performance. The concept of performance information markets that addresses these challenges is proposed as a framework for the application of multi-dimensional weighted performance measurement systems. "What are you doing?" inquired the policeman of the drunk crawling on the pavement under the glow of a lamppost. "I am looking for my quarter", came the reply. "Where did you lose it?" asked the officer helpfully. "I dropped it over there by that payphone", retorted the drunk. Incredulous, the officer asked, "Then why are you looking in the middle of street?" "Because there is more light over here", he replied with his nose nearly to the ground. © 1998 JAI Press Inc. All rights of reproduction in any form reserved.
This study examines two alternative views--universal and contingency--of the human resources (HR)-performance relationship in manufacturing settings. Results from a survey of 97 plants primarily support a contingency approach to human resource management (HRM). An HR system focused on human capital enhancement was directly related to multiple dimensions of operational performance (i.e., employee productivity, machine efficiency, and customer alignment), but subsequent analysis revealed that this main effect was predominately the result of linking human-capital-enhancing HR systems with a quality manufacturing strategy. Other manufacturing strategies also moderated the HR-performance relationship.
The field of strategic human resource management (SHRM) has been criticized for lacking a solid theoretical foundation. This article documents that, contrary to this criticism, the SHRM literature draws on three dominant modes of theorizing: universalistic, contingency, and configurational perspectives, Seven key strategic human resource practices are identified and used to develop theoretical arguments consistent with each perspective, The results demonstrate that each perspective can be used to structure theoretical arguments that explain significant levels of variation in financial performance.
The purpose of this article is twofold. It provides a brief review of the major theoretical and empirical work completed to date in strategic human resource management (SHRM), focusing most closely on the fit of HRM practices into a coherent system. Secondly, several issues critical to empirical research in SHRM on which researchers must focus greater attention. To date, there is clearly no consensus as to how researchers must address these issues. I believe that we have only begun to realize how important human resource management is to competitive advantage. There is growing evidence that the management of human resources is critical to productivity and performance, however, research is a long way from explaining the underlying processes through which it has these effects. Although researchers have developed more complete frameworks that better incorporate ideas from the areas of business strategy and finance, the empirical literature is relatively weak and underdeveloped. This is not unexpected at this early stage of SHRM research. It is quite possible that researchers have attempted to do too much in individual studies. There are several issues that must be addressed if research is to provide more meaningful advice to firms. Researchers need to pay more attention to how HRM practices influence valuable, rare, and inimitable organizational resources, such as the work force. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
[discusses] modeling the prediction problem as it pertains to the prediction of job performance / argued for more emphasis on relating personnel selection and classification research to a latent structure of individual differences and a latent structure of job performance, and an initial substantive theory of performance using appropriate statistical estimation and structural modeling technique (PsycINFO Database Record (c) 2012 APA, all rights reserved)
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.
Sumario: Sources of sustained success -- What effective firms do with people -- The evidence for slow learning and unrealized potential -- Wrong heroes, wrong theories, wrong language -- Overcoming history -- Labor laws, lawyers, and litigation: friends or foes of work place change? -- Employee organizations: their effects and role in work place reform -- Resistance from within -- The promise of the quality movement -- Making the change
In this paper conceptual issues associated with strategic human resource management are addressed. The rapidly expanding international interest in strategic human resource management is first highlighted. The article then explores some of the broader issues around the debate on SHRM that can inform thinking at a macro level. Firstly, the progress made towards understanding the meaning of SHRM is analysed, then a brief overview of the major models of SHRM to date is presented. This overview is used to highlight the key variables and interrelationships that need to be included in a model of SHRM, and a more detailed critical analysis of the contribution of the literature in each of these areas follows. A summary of the most important research questions arising out of the literature is followed by a model of the SHRM process, which attempts to remedy the major weaknesses in existing models of SHRM. The ways in which this model may be used as a basis for empirical research are then noted. Strategic human resource management
[Excerpt] Strategic human resource management (SHRM) has emerged as a, if not the, major paradigm among scholars and practitioners in many parts of the world. This is apparent from the recent literature on international human resource management (e.g., Schuler, Dowling, and De Cieri, 1993), as well from recent reviews of trends in the U.S. (Dyer and Kochan, 1994), Canada (Betcherman, McMullen, Leckie, and Caron, 1994), and the U.K (Lundy, 1994).
Gerhart and colleagues and Huselid and Becker recently debated the presence and implications of measurement error in measures of human resource practices. This paper presents data from three more studies, one of large organizations from different industries at the corporate level, one from commercial banks, and the other of autonomous business units at the level of the job. Results of all three studies provide additional evidence that single respondent measures of HR practices contain large amounts of measurement error. Implications for future research are discussed.
Modeling the performance prediction problem in industrial and The impact of HR practices on the performance of business units 34
- J Campbell
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The HR-® rm performance relationship: is it only in the mind of the beholder?' Center for Advanced HR Studies Working paperFeeling good ± doing good: a conceptual analysis of the mood at work-organisational spontaneity relationship
- Gardner
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- J George
- A Brief
Gardner, T and Wright, P. (2003). `The HR-® rm performance relationship: is it only in the mind of the beholder?' Center for Advanced HR Studies Working paper, Ithaca, NY. George, J. and Brief, A. (1992). `Feeling good ± doing good: a conceptual analysis of the mood at work-organisational spontaneity relationship'. Psychological Bulletin, 112, 310-329.