Employees as Active Consumers of HRM: Linking Employees’ HRM Competences with Their Perceptions of HRM Service Value

Recognizing the importance for companies of having high‐quality employment relationships with employees, previous studies have sought to explain the variability in employees’ perceptions of HRM service value. However, most of these studies view employees as inactive in employment relationships and, therefore, do not consider whether employees’ own attributes affect their perceptions of HRM service value. In accepting the alternative notion that consumers create value “in use,” the current study regards employees as active consumers of HRM practices, and so examines the extent and way in which employees’ HRM competences (i.e., knowledge, skills, and abilities) explain the variability in HRM service value. Based on data collected from 2,002 employees in 19 companies in the Netherlands, a positive relationship has been found between employees’ HRM competences and their perception of HRM service value, albeit one that is mediated by the perceived quality and nonmonetary costs of HRM services. The main implication of our findings is that employees should be seen as active agents in employment relationships who, through coproducing and consuming HRM services as well as leveraging their knowledge and skills, influence the value of HRM services and have the potential to increase or undermine the outcomes of the employment relationship. © 2015 Wiley Periodicals, Inc.     

Beyond the line: exploring the HRM responsibilities of line managers,project managers and the HRM department in four project-oriented companies in the Netherlands,Austria, the UK and the USA

The topic of what human resource management (HRM) responsibilities are devolved from the HRM department to line managers has attracted much interest in recent years. We report findings from a study on the devolution of HRM practices in four project-oriented companies (POCs) and argue that although HRM practices are carried out beyond the HRM department, they are also carried out beyond the line. While the literature on devolving HRM responsibilities to line management is burgeoning, the HRM responsibilities of managers beyond the line organization are neglected. We make two contributions to the literature. Firstly, our study reveals that some HRM practices are the domain of the project manager rather than either the line manager or the HRM department. The complex interplay of the roles of the HRM department, line management and project management creates challenges and pitfalls where people are managed across the boundaries of the permanent and temporary organization. We identify a potentially powerful role for the HRM department in both monitoring and guiding the different players from the line and the project organizations, and in protecting the well-being of employees whose work traverses these organizational boundaries. Our second contribution is that we map the diversity of practices in different POCs for managing the interplay between the three main parties delivering HRM practices and offer project orientation as a contextual indicator that contributes to diversity in HRM practices.     

HRM implementation by multiple HRM actors: a social exchange perspective

Abstract

In this study, we understand HRM implementation as a social process that depends on the social exchange relationships between line managers and both HRM professionals and employees. As such, we offer a fresh approach to understanding HRM implementation by concentrating on the social exchange among HRM actors. We do so by investigating to what extent these exchange relationships influence HRM implementation, as reflected in employees’ perceptions of the presence of HRM practices and their affective commitment. We collected multilevel data from two sources (line managers and employees) and in two phases in a Dutch engineering firm, and obtained fully matched manager – employee information from 75 employees and 20 line managers. Our results show that employees perceive a larger number of HRM practices when they have a good relationship with their line managers and when their line managers are motivated to implement HRM practices. Line managers, in turn, reciprocate perceived support from the HRM department with greater motivation to implement these practices. We conclude that because HRM actors engage in social interactions, HRM practices will be implemented at the organizational level because employees perceive the presence of HRM practices and then reciprocate this with affective commitment.     

A study of the employment system of Japanese multinational retailers in Hong Kong

This study examines the employment system of Japanese multinational retailing corporations in Hong Kong through two case companies - Morioka and Okadaya. The human resource management (HRM) practices- recruitment and selection, remuneration, and training and development - of the companies are studied. The different HRM practices applied to different groups of employees within each case company are compared using an employment systems model. The employment system is structured and multi-layered. The development of the structured employment system is then analysed in relation to the cultural and sectoral factors. It is shown that only the cultural characteristics of the Japanese parent companies can explain the ethnocentric management approach used in which Japanese personnel are employed in the internal labour marker (ILM) and local employees are employed outside the ILM. Economic and labour market conditions in both parent and host countries and sectoral characteristics have also contributed to the stratification of the employment system among the local employees. The implications of this study are that the long-term development of Japanese multinational retailers will be weakened if the structured employment system persists.     

Caring human resources management and employee engagement

Research on employee engagement has demonstrated that human resource management (HRM) practices and systems are positively related to employee engagement. However, it is not clear what HRM practices or system of practices is most important for employee engagement or the theoretical mechanisms that intervene and explain the link between HRM and employee engagement. In this paper, I provide answers to these two important questions by developing a model of caring HRM and employee engagement based on the engagement, organizational climate, and strategic HRM literatures. The model indicates that a system of caring HRM practices (job design, training and development, flexible work arrangements, work-life balance, participation in decision making, health and safety, career development, and health and wellness programs) will result in an organizational climate of care and concern for employees that employees will respond to by caring for the organization which they will enact with higher levels of engagement. This model provides many avenues for future research and practice on HRM and employee engagement and introduces the notion of a caring HRM system and an organizational climate of care and concern for employees to the literature on employee engagement.     

Human resource management practices and voluntary turnover: a study of internal workforce and external labor market contingencies

We tested relationships between employee quit rates and two bundles of human resource (HR) practices that reflect the different interests of the two parties involved in the employment relationship. To understand the boundary conditions for these effects, we examined an external contingency proposed to influence the exchange-based effects of HR practices on subsequent quit rates – the local industry-specific unemployment rate – and an internal contingency proposed to shape employees’ conceptualization of their exchange relationship – their employment status (i.e. full-time, part-time and temporary employment). Analyses of lagged data from over 200 Canadian establishments show that inducement HR practices (e.g. extensive benefits) and performance expectation HR practices (e.g. performance-based bonuses) had different effects on quit rates, and the former effect was moderated by unemployment rate. The effects of HR practices on quit rates did not differ between FT and PT employees, but a different pattern of main and interactive effects was found among temporary workers. These findings suggest that employees’ exchange-based decisions to leave may be less affected by the number of hours they expect to work each week, and more by the number of weeks they expect to work.     

Engaging workers in resource-poor environments: the case of social enterprise in Vietnam

Abstract

How do social enterprises acquire and retain employees in resource-poor environments? This paper presents findings from a study examining human resource management (HRM) practices in transitional economy social enterprises, where research on HRM remains underexplored. Drawing on social exchange theory and employing a multiple-case study design, we examine the ways in which four well-established social enterprises in Vietnam use high-involvement work practices (HIWPs) to acquire, retain and support the performance of workers. The findings suggest that HIWPs increase the social exchange value of social enterprise employment but raise questions about business sustainability. We identify evidence of a unique bundle of HIWPs, which comprise four dimensions of the original model: information, knowledge, power, and rewards, and one new dimension, namely family-building practices.     

Looking beyond HRM practices in enhancing employee retention in BPOs: focus on employee–organisation value fit

This paper argues that the effectiveness of HRM practices in tackling employee retention can be enhanced by improving the compatibility between employee and organisational values. We test our hypothesis using structural equation modelling on a sample of 258 employees in business process outsourcing (BPO) firms in the Philippines. The results show that the fit between employee and organisation values positively and partially mediates the effects of HRM practices on employee retention. However, employee–organisation value clash in US-owned BPOs was found to have a negative effect on employee retention. Because employees are less likely to leave when they share similar values as their organisations, HRM practices can be used strategically to improve the employee–organisation value fit to improve retention. The implications of the findings for HR managers of BPOs in developing countries are fully discussed.     

Disability status,individual variable pay,and pay satisfaction: Does relational and institutional trust make a difference?

Although prior research suggests that disabled employees have different needs in the context of some HRM practices, we know little about their reactions to reward systems. We address this gap in the literature by testing a model using the 2011 British Workplace Employee Relations Survey (disabled employees, n = 1,251; nondisabled employees, n = 9,959; workplaces, n = 1,806) and find that disabled employees report lower levels of pay satisfaction than nondisabled employees, and when compensated based on individual performance, the difference in pay satisfaction is larger. We suggest that relational (derived from trust in management) and institutional (derived from firm‐wide policies and HRM practices, both intended to provide equitable treatment to disabled employees) forms of trust play important roles. The results of multilevel analyses show that when trust in management is high, the difference in pay satisfaction under variable pay is reduced. We find just the opposite for employees who work in organizations with a formal disability policy but without supportive HRM practices; the gap in pay satisfaction is exacerbated. However, the combination of the presence of a firm‐wide policy and HRM practices reduced the difference in pay satisfaction. Implications of the findings for theory, future research, and management practice are discussed.     

An empirical study of human resource management policies and practices in foreign-invested enterprises in China: the case of Shenzen Special Economic Zone

Information about human resource management (HRM) practices in foreign-invested enterprises (FIEs) in China has been limited to studies involving a small number of cases. This study provides an empirical assessment of HRM practices used in 158 FIEs operating in Shenzen Special Economic Zone (SEZ) of the Guangdong Province in southern China. Results suggest that FIEs have moved away from centrally planned job allocation, life-time employment and egalitarian pay towards open job markets at management and non-management levels, contractual employment where pay and longevity are based on individual worker and company performance and compensation plans that recognize differences in skills, training and job demands. These practices seem to reflect the influence of the economic reform in China. Other aspects of HRM practices used by FIEs, such as approximate equality of pay for men and women, limited differences between management and non-management salaries and widespread provision of housing and other benefits for employees, seem to reflect the influence of the Chinese socialist ideology.     

Sustainable HRM strategies and employment relationships as drivers of the triple bottom line

This paper aims to develop a conceptual framework capable of analysing the contributions made by strategic human resources management (SHRM) to firm sustainability and competitiveness. Specifically, we identify different sustainable corporate strategies and the way in which they are supported by coherent sustainable HRM strategies. We propose different sustainable employment relationships considering two dimensions: inducements offered by an organisation and expected employee behaviours in order to comply with sustainable HRM strategies. All the above also necessitates a system of HRM practices (content of the employment relationship) that should be well defined and oriented towards sustainability. Accordingly, we suggest associations of specific systems of HRM practices, depending on the type of employment relationship and sustainable HRM strategy, in order to promote the expected ‘Triple Bottom Line’, and which also improve firm competitiveness.     

Strategic human resources management is irrelevant when it comes to highly skilled professionals in the Canadian new economy

The goal of this paper is to explain the commitment behaviour of highly skilled professionals in Canadian business-to-business (B2B) technology services companies that do not have a formal and explicit managerial commitment strategy and to emphasize the need to take the organizational context into consideration when developing a theory that seeks to account for differences in employee's organizational commitment. Our contribution is to reappraise the relevance of the traditional organizational commitment definition in this organizational context, a new organizational form. We demonstrate that in the companies which are different from the traditional bureaucratic organizational forms and which employ highly qualified professionals, the employment relationship is based on a psychological contract that is not accounted for in the strategic HRM theory.

Indeed, the basic principles of strategic HRM dictate that an organization's most valuable asset is its employees; it is therefore incumbent on management to do whatever is necessary to retain its workforce, readily described as a key resource, and to use human resources management (HRM) practices as tools to elicit commitment. In a study of highly skilled workers in Canadian business-to-business (B2B) technology services companies belonging to the so-called ‘new economy’, we observed that although the competitive advantage enjoyed by these companies depends to a large degree on the creativity and innovativeness of their workforce, these companies barely have any official HRM policies, and the HR department plays a very unobtrusive role. Yet, no one could say that the employees in these firms are not committed – on the contrary! This situation has several implications in terms of career for these professionals, in terms of HR practices for the employers.

Nevertheless, until now, existing theoretical models of organizational commitment have shown little interest in highly skilled workers in general and even less in new economy professionals.     

HRM and Performance: A Plea for Reflexivity in HRM Studies

abstract    In this Counterpoint, we build on Paauwe's suggestions to take the field of HRM and Performance further. Rather than aiming for a synthesis or proposing a radical alternative, we argue that R(econstructive)-reflexivity is needed for theorizing HRM. In particular, we bring in insights from critical studies on the notion of HRM, on the notion of performance, and on the theoretical relationship between them as a way to open up new research avenues and lines of interpretation. For each of these three aspects, we indicate how studying the employment relationship can be reframed. In particular, we emphasize practice-oriented research as one possible research path for the field of HRM as it allows for an examination of HRM as a set of practices, embedded in a global economical, political and socio-cultural context. We end our counterpoint by reflecting on reflexivity, proposing three practices that can guide HRM scholars in becoming reflexive in the ways they study HRM.     

Sustainable employment: the importance of intrinsically valuable work and an age-supportive climate

The aging workforce emphasizes the importance of sustainable employment, that is the extent to which workers are able and willing to remain working now and in the future . This raises the question how organizations can design work contexts that contribute to sustainable employment. This study investigated the role of a intrinsically motivating job (intrinsic job value) and an age-supportive climate for three indicators of employees’ sustainable employment: employability, work engagement and affective commitment. The questionnaire was completed by 119 office employees (response 35%) of a Dutch public transport organization. A SEM analysis revealed that intrinsic job value was strongly and positively related with all three indicators of sustainable employment for employees of all ages. In contrast, an age-supportive climate was especially important for older employees’ work engagement and affective commitment. This study has implications for practice and for research of sustainable employment, HRM and aging.     

Why Complementary HRM Practices Impact Performance: The Case of Rewards,Job Design,and Work Climate in a Knowledge‐Sharing Context

The strategic HRM literature suggests that HRM influences employees in combinations of practices that “fit” each other rather than as stand‐alone practices; however, it pays little attention to the underlying individual‐level mechanisms. In contrast, the HRM literature on knowledge sharing examines the influence of single practices on individual‐level knowledge sharing, but fails to include the influence of combinations of practices. We link the idea of fit between practices to employee motivation for knowledge sharing by arguing that rewards may be ambiguous and difficult to interpret, but that such ambiguity may be reduced if rewards are combined with other aligned HRM practices, notably job design and work climate. Thus, fit is established through the ambiguity‐reducing effect of combining specific HRM practices. Accordingly, we test for complementarities among rewards, job design, and work climate in the form of a three‐way interaction among these variables with respect to their impact on knowledge‐sharing motivation. Our analysis of 1,523 employees in five knowledge‐intensive firms shows that employees who are exposed to knowledge‐sharing rewards experience higher levels of autonomous motivation to share when they are simultaneously exposed to a noncontrolling job design and work climate that support knowledge sharing. © 2014 Wiley Periodicals, Inc.     

HRM in the SME sector: valuable employees and coercive networks

Although the productivity and survival of small and medium-sized enterprises (SMEs) may be enhanced if they adopt human resource management (HRM) practices, there is a far greater degree of informality in employment practices in SMEs than in larger workplaces. The aim of this paper is to assess the extent to which a range of factors both internal and external to the workplace predict the extent to which HRM practices have been adopted in SMEs. Using data from the 1998 Workplace Employee Relations Survey, the analysis reveals that differences in workforce skill-mix, unionization and the customer base are important influences, with the first of these influences being particularly strong. As such, we suggest SMEs may lack the capability to develop HRM practices, but they are more likely to adopt such practices if they employ highly skilled employees and are networked to other organizations     

The influences of new employee development practices upon role stressors and work-related attitudes of temporary employees

Understanding what influences temporary employee attitudes toward their work is becoming an increasingly significant managerial concern in organizations employing temporary workers. In this empirical study, we examine the relationship between new employee development (NED) practices, role stressors and employee work-related attitudes. It was hypothesized that NED practices will be negatively related to the role stressor variables and that the role stressor variables will be related to employee work-related attitudes. It was further hypothesized that role stressors will mediate the relationship between NED practices and temporary employee work-related attitudes. Since temporary employees receive new employment practices at both the client organization and the temporary agency, the relationships were hypothesized to exist for both the client organization and temporary agency. Data were collected from temporary employees (N = 1,261) across the United States. Results indicate that NED practices at the temporary agency and client organization were both negatively related to role ambiguity and role conflict. Role stressors were positively related to intention to quit and negatively related to job satisfaction and organizational commitment in relation to both client organization and temporary agency. Role ambiguity and role conflict partially mediated the relationship between NED practices and temporary employee work-related attitudes for both the client organization and temporary agency. Theoretical and practical implications for managing temporary employees are discussed.     

Social Capital and Organizational Change in High‐Involvement and Traditional Work Organizations

We present new evidence indicating that changing from a traditional human resource management (HRM) environment to an innovative one entails a change not only in formal work practices, but also in the informal networks and patterns of interaction among employees. We focus on differences in the social capital of these workplaces and measure differences in the structure of interactions and information transfer among employees across a sample of manufacturing lines with a common production technology and different HRM systems. We then consider the implications of these differences and show that the change from one form of workplace practices to the other is therefore not just a matter of paying for the direct costs of a new set of HRM practices. Rather, it would involve a disruptive overhaul in the entire network of interactions among all workers at the plant.     

Do employees reciprocate to intra-firm trainings? An analysis of absenteeism and turnover rates

This article contributes to the debate on the link between reciprocal motives of employees and HRM practices by studying the behavioral effects of intra-firm trainings on absence behavior and turnover probability. We apply the gift-exchange framework and offer a behavioral perspective that helps to explain why firms invest in trainings that provide mainly general skills. We argue that employees may reciprocate the gift of firm-sponsored training with higher levels of costly effort or commitment. We employ a stringent methodological approach based on panel data of a large multinational firm and find that, in contrast to human capital predictions, general trainings lead to a decrease in turnover rates. Most notably, we find the strongest effect for employees with the lowest levels of firm tenure. This is a quite novel result as this group should face the lowest separation costs, for instance, due to the accumulation of firm-specific human capital. Hence, intra-firm trainings are an important retention device, especially for newly or recently hired employees. Furthermore, a short-term decrease in absenteeism indicates a temporary, reciprocal reaction by employees.     

When affective well-being is empowered: the joint role of leader-member exchange and the employment relationship

HRM and the leader are often assumed to play a joint role in affecting employee reactions. In a multilevel, time-lagged study, we examined the joint role of the employment relationship and leader-member exchange (LMX). We tested whether this joint role is essential to when LMX leads to affective well-being via psychological empowerment. We build on HRM literature to expect that the relationship of LMX with psychological empowerment is stronger when the employment relationship is consistent with LMX quality. Results indicated that psychological empowerment mediates the relationship between LMX and affective well-being. This mediation is stronger for employees in a mutual investment employment relationship. The findings point at the importance of consistency of resources from the employment relationship and LMX. Nevertheless, the findings also suggest that resources from LMX compensate for employment relationships with low resources. Our findings contribute to scholars’ understanding of the joint role of HRM systems and leader behaviors.