Front‐line managers as agents in the HRM‐performance causal chain: theory,analysis and evidence

Research on the link between HRM and organisational performance has neglected the role of front‐line managers, yet it is these managers who are increasingly charged with the implementation of many HR practices. Using an employee survey in 12 ‘excellent’ companies we explore the extent to which employee commitment towards their employer and their job are influenced by the quality of leadership behaviour and by satisfaction with HR practices. Both have a strong effect on employee attitudes. The article concludes with a case study of a planned effort to improve front‐line managers' skills in people management.     

HRM systems between control and commitment: occurrence,characteristics and effects on HRM outcomes and firm performance

In the literature, it is often assumed that traditional, control‐oriented HRM systems are increasingly being replaced by commitment‐based HRM systems because the latter generally result in higher firm performance. However, an HRM system's effectiveness may depend on an organisation's external and internal context, and neither control nor commitment HR systems are without disadvantages. Thus, the empirical validity of this claim is not clear ex ante. This paper analyses the empirical diffusion and determinants of control and commitment HRM systems in Germany as well as their impact on HRM outcomes and firm performance. The findings indicate that between the two extreme forms of high‐control and high‐commitment HRM systems, there are two hybrid forms (long‐term‐oriented control system and regulated commitment system) that combine elements of both ‘pure’ systems. Commitment HRM systems outperform the high‐control HRM system concerning many HRM outcomes and firm performance measures. However, in direct comparison, the high and the regulated commitment HRM systems do not show substantially different outcomes, indicating that there is no one best way.     

The link between perceived HRM practices,performance and well‐being: the moderating effect of trust in the employer

The present study examines the interaction between perceived HRM practices and trust in the employer on employee performance and well‐being. Specifically, the study tests whether trust in the employer moderates the relationships between perceptions of HRM practices and task performance (as rated by employees’ supervisors), organisational citizenship behaviour, turnover intentions and employee well‐being. Support was found for the majority of the hypotheses using data from 613 employees and their line managers in a service sector organisation in the UK. Trust in the employer moderates the relationships between perceived HRM practices and task performance, turnover intentions and individual well‐being, but not organisational citizenship behaviour. Implications of the findings for organisations and future research are discussed.     

Unravelling the complexities of high commitment: an employee‐level analysis

Research within HRM has faced criticism for failing to focus adequately on employee experiences of HR practice. In particular, the ‘high‐commitment’ models fail to recognise employee perspectives on HRM, the complexities of the commitment construct and the possibility that organisations configure HR systems in various ways. This paper explores the impact of employee attitudes towards HR practices on affective, continuance and normative commitment, and intention to leave in three organisational contexts. The findings suggest that different HR systems can yield different attitudes towards HR practices, which in turn can impact on different forms of commitment and levels of intention to leave. The findings provide insights into the ways in which organisations manage the commitment process through HR practices and the response by employees to these interventions.     

Transitions In the Psychological Contract: Some Evidence From the Banking Sector

This study examines the psychological contract in a sample of 107 employees in a retail bank. Deregulation, market-entry by non-traditional suppliers, and the introduction of advanced technology have changed the security of and rules implicit in the employment contract in the UK banking sector, which is one of the leading contenders for downsizing and delayering. Many banks are experiencing increased employee cynicism. New structures and technology, demanding levels of customer service, and new competitors have produced heightened attention towards performance and are associated with the need for employees to develop new competencies, such as relationship-handling and sales skills. Regardless of whether banks pursue high performance management systems or control-based HR strategies, the requirement for committed and engaged employees able to develop new competencies is an assumed constant. Demographic factors such as age, service and sex are found to be partial predictors of some attitudinal items. However, these proxy measures of attachment to the old employment deal are not related to items that consider commitment or satisfaction. the psychological contracts in the bank are highly fragmented. Seven underlying constructs are revealed: ‘frustratedly disengaged’, ‘still ambitious’, ‘passively flexible’, ‘guidance seekers’, ‘buy me outers’, ‘don't push me too fast’ and ‘just pay me more’. Implications of the research for HRM, the management of new internal labour markets in the banks and future directions of research on the psychological contract are discussed. It is concluded that a new set of internal labour markets are being created within the banks, the dynamics of which clearly revolve around a wide range of individual factors. Accepted wisdom about participative management practices will be challenged in the HR strategies of the late 1990s.     

Customer service-focused HRM systems and firm performance: evidence from the service industry in Taiwan

Abstract

This study adopts a resource-based view, attraction–selection–attrition theory and a focused approach to examine the link between service-focused human resource management (HRM) systems and firm performance. Internally, we examine employee competency as the ‘black box’ between service-focused HRM systems and firm performance. Externally, we examine the effect of the interplay of a service-focused strategy and service-focused HRM systems in predicting firm performance. We collect data from different sources (i.e. executives, human resource members, and line managers). Using a final sample included 2120 respondents from 175 firms in the service industry in Taiwan, the results show that customer service-focused employee competency transmitted 53% of the effect of customer service-focused HRM systems on firm performance. In addition, when a firm implements a less service-focused business strategy, service-focused HRM systems leads to significant improvement in firm performance. Implications for research are discussed.     

Well‐being‐oriented human resource management practices and employee performance in the Chinese banking sector: The role of social climate and resilience

Drawing upon positive psychology and a social relational perspective, this article examines the relationship between well‐being‐oriented human resource management (HRM) practices and employee performance. Our multilevel model examines relationships among collectively experienced well‐being‐oriented HRM practices, social climate (characterized by trust, cooperation, and shared codes and language that exist among individuals within the organization), employee resilience, and employee (in‐role) performance. Based on the two‐wave data obtained from 561 employees and their managers within 62 bank branches in 16 Chinese banks, our multilevel analyses provide support for our four hypotheses. First, we found a positive relationship between well‐being‐oriented HRM practices and social climate. Second, social climate mediated the relationship between well‐being‐oriented HRM practices and employee resilience. Third, we found a positive relationship between resilience and employee performance. Finally, employee resilience mediated the relationship between social climate and employee performance. This study is one of the first to unpack the social mechanisms through which well‐being‐oriented HRM practices increase development of resilience and subsequent employee performance at the workplace, namely through influencing group feelings of social climate.     

How High‐Commitment HRM Relates to Engagement and Commitment: The Moderating Role of Task Proficiency

In a multisource field study, we examine the relationship between employee perceptions of high‐commitment human resource management (HRM), task proficiency, work engagement, and organizational commitment. Based on conservation of resources (COR) theory, we first propose that work engagement mediates the relationship between high‐commitment HRM and organizational commitment. Second, we propose a mediated moderation model in which employees’ task proficiency moderates the relationship between high‐commitment HRM and work engagement, which in turn affects organizational commitment. Results indicate that the relationship between high‐commitment HRM and organizational commitment was fully mediated by work engagement. Results also supported the mediated moderation model. A significant indirect effect was found from high‐commitment HRM to commitment via engagement for low task proficiency, but not for high task proficiency. Implications and directions for future research are discussed. © 2014 Wiley Periodicals, Inc.     

The HR department's role in organisational performance

Research into how HR contributes to organisational performance is plentiful yet plagued by challenges. Alongside the ‘black box’ issue between HRM and performance, the time‐lag effect and the range of performance indicators applied, the role of the HR department in this relationship is critical although often ignored. A longitudinal case study is presented here that focuses particularly on this issue, and shows a complex picture of improving HR department importance alongside high‐level financial performance, but declining employee commitment and morale. The article suggests that the tensions between the rhetoric of HRM strategy, the grim reality of the employee experience and a lack of focus on human capital meant the outstanding financial performance was not sustainable in the longer term. The inherent conflict in serving both management and employees in process‐and peopleorientated roles is highlighted.     

Recruitment and retention in front‐line services: the case of childcare

This article highlights how problems of recruitment and retention in front‐line services create a particular challenge to traditional HRM models and solutions. Private day nurseries make an interesting example of the challenges facing managers in the service sector as the combination of a feminised workforce, a price‐sensitive service, public–private competition and state regulation create particular difficulties. We report on a study of 33 day nurseries involving interviews with managers and employees over an eight‐month period. Our findings show that childcare providers have to cope with recruitment and retention problems associated with high‐end interactive service provision compounded by gender segregation and small business characteristics. Our analysis of employer and employee perspectives examines labour market issues affecting recruitment, and categorises the reasons for staff turnover into internal ‘push’ factors, external ‘pull’ factors, outside factors and functional turnover.     

The influence of strategic HRM and sector on perceived performance in health services organizations

In this study, we examine a variety of management characteristics of for-profit and not-for-profit organizations in the health services (HS) industry. Data collected from Australian senior executives are used to test the relationships between managerial constructs such as employee commitment, customer demandingness, strategic HRM orientation and the adoption of human capital-enhancing human resource (HR) practices and perceived overall performance. Data analysis conducted using the Partial Least Square Modeling show a statistically significant path from commitment to employees, customer demandingness and strategic HRM orientation to the adoption of human capital-enhancing HR practices (such as selective staffing, comprehensive training, and performance appraisal) to perceived organizational performance. The results also show that private sector health service organizations have a higher level of perceived performance.     

Working for the family

Recent writing about the ‘service encounter’ suggests that high-quality service requires employee commitment and this will involve a more developed and sophisticated approach to HRM than has traditionally characterised the sector. Through an in-depth study of a sample of high service level hotels in the US and UK this paper argues, in contrast, that commitment can be created through a workplace culture that draws on family discourses and practices. It explores the ways in which this culture is developed and endorsed by both management and employees. This approach to generating commitment has costs in terms of the time and priority employees can give to their ‘real’ friends and family. By drawing on the highly gendered and hierarchical organisation of the family, it is argued that culture also contributes to gender stereotyping and hierarchies within and outside the workplace in ways that limit women's career opportunities.     

Unit-level linkages between employee commitment to the organization,customer service delivery and customer satisfaction

Service profit chain and service climate research identifies the importance of employee attitudes and employee service behavior as mediating between organizational practices and customer satisfaction. While the importance of employee attitudes and customer service performance are acknowledged, there are calls to more precisely specify proximal mediators between employee attitudes and customer satisfaction. We propose a model in which the relationship between unit-level organizational commitment and customer attitudes is not direct but mediated via employees' customer service delivery including queuing time, serving time and service quality. We conducted a longitudinal unit-level analysis (N = 39) aggregating employee (N over 893) organizational commitment and customer (N over 1248) satisfaction data, and customer service behavior drawn from organizational records. Our model received reasonable support from basic tests of the predictive associations between unit-level organizational commitment, customer-relevant employee behaviors and customer satisfaction; however, organizational commitment was not found to be an important predictor in more rigorous change analyses. The findings as a whole therefore suggest that organizational commitment is a feature of units delivering fast, quality service, but its causal role is as yet unclear.     

High‐commitment HR practices,employee effort,and firm performance: Investigating the effects of HR practices across employee groups within professional services firms

In this study, the authors examine the relationship between high‐commitment HR practices and firm performance in professional services firms through the mediator of employee effort. In addition, they contribute to the debate in the field of strategic HRM on whether high‐commitment HR practices should be used across all employee groups within a firm. Their study's results show that high‐commitment HR practices positively relate to firm performance through employee effort for two employee groups within professional services firms. Further, they found that the relationship between effort and performance is contingent on the value of the employee group to firm competitive advantage, suggesting that companies may only want to expend the effort and resources on building a high‐commitment HR system for employee groups that are clearly tied to creating firm competitive advantage. © 2011 Wiley Periodicals, Inc.     

Managing people across hospital networks in the UK: multiple employers and the shaping of HRM

Building on the insights from a growing number of studies on the HRM implications of inter-organisational relations, this article investigates the HR issues in two case studies of ‘best practice’, long-term collaborative working. It identifies three common challenges for HRM: (a) how to build employee commitment and identity to the partnership without putting at risk the employing organisation's goals; (b) how to establish attractive career pathways in a partnership context requiring some degree of sharing of skill standards and coordination of training provision; and (c) how to sustain partnerships in a changing policy and organisational context. The data point to inherent problems in managing employment when there is more than one employing organisation exercising influence. Differences in organisational goals and HRM approaches in hospital networks are an obstacle to long-term integration – especially in public–private arrangements where integration of goals and HRM is more difficult.     

HRM and performance: the vulnerability of soft HRM practices during recession and retrenchment

This multi‐method case explores how change in HRM implementation can impact performance metrics in a recessionary climate. Qualitative HR outcome data are mapped against financial metrics to explore adoption of hard‐line HRM practices in a major UK retailer. Despite record profits throughout the recession, the organisation responded strategically to worsening conditions in the labour market, firstly to maintain operational flexibility, but then to opportunistically enlarge jobs and intensify work to help achieve immediate gains in financial metrics, including a gain of 37 per cent in profit per employee over 3 years. These gains were achieved by derailing commitment‐based approaches to HRM, pointing towards the vulnerability of soft HRM systems during times of austerity or retrenchment.     

High reliability Human Resource Management (HRM): A system for high risk workplaces

High Performance Work Systems (HPWS) research is based on the search for the most suitable bundle of complementary practices appropriate for the organisation and its operating environment. We examine the contents of a HPWS in organisations seeking impeccable safety and reliability as their foremost ‘performance’ outcome. We propose a ‘High Reliability HRM’ framework, and examine the degree of implementation in a three case study of Australian state emergency services organisations. The findings highlight HRM practices inconsistent with the framework, and illustrated by rich interview accounts, we detail associated negative implications for employee behaviour and attitudes. We contribute to HPWS research by empirically examining how reliability-seeking organisations conceptualise and implement HRM systems. This study emphasises how inconsistency in HRM practice bundles can pose a threat to reliable service provision, a critical finding for emergency services and reliability-seeking organisations more broadly.     

A multilevel examination of skills‐oriented human resource management and perceived skill utilization during recession: Implications for the well‐being of all workers

This article examines whether organizations can enhance employee well‐being by adopting human resource management (HRM) practices strategically targeted to improve skill development and deployment in a recessionary context. Employee skill utilization is proposed as the mediating mechanism between HRM practice and well‐being. The role of workplace skill composition is also examined as a boundary condition within which HRM differentially impacts employee outcomes. Using a nationally representative survey of UK workplaces (Workplace Employment Relations Survey 2011) and matched management and employee data, the analysis focused on organizations that had implemented some recessionary action following the 2008–2009 global financial and economic crisis. The findings show that human capital enhancing HRM and enriched job design positively influenced both job satisfaction and work‐related affective well‐being through increased employee skill utilization. Organizations with predominantly high‐skilled workforces were more likely to adopt these skills‐oriented HRM practices. Nevertheless, the effects of HRM on employee outcomes via skill utilization applied across organizations, regardless of workforce skill composition. The findings demonstrate employee skill utilization as a driver of HRM outcomes and the sustainability of “best practice” HRM arguments across all skill levels, even in the face of recession.     

An Integrative HRM Process Theorization: Beyond Signalling Effects and Mutual Gains

How and for whom HRM creates value are key questions in management research. The present study develops and tests an integrative HRM process theorization positing the existence of mutually reinforcing ability–motivation–opportunity, signalling, and identity‐based control mechanisms of the influence of HRM on both employee performance and work intensification. In addition to providing empirical support for the ‘how’ of value creation through HRM, the study contributes to the growing critique of the dominant mutual‐gains perspective, the notion that HRM outcomes are straightforwardly positive for both employers and employees. The integrative theorization also opens up interesting avenues for future research on the individual and organizational performance effects of HRM.     

Rhetoric,facts and self-fulfilling prophecies: exploring practitioners’ perceptions of progress in implementing HRM

Although the virtues of ‘HRM’ are widely espoused by its proponents, evidence of its widespread uptake by UK companies has invariably been disappointing. Why? A survey using questionnaires completed by 98 personnel and HR practitioners in a sample of 350 major UK companies was used to explore perceptions of ‘progress’ in implementing HRM, and this was followed-up by interviews of 24 survey respondents. While the survey and interview evidence clearly indicate that progress towards HRM is a profoundly contradictory and unfinished process, it also raises serious questions about the ability of the HR function and role to facilitate, oversee or lead processes of implementation.