Challenges to the psychological contract in Hong Kong

This study investigates empirically the psychological contract of a sample of 205 Hong Kong junior and senior managers. It determines the perceptions of factors that employers and employees see as relevant to the employment relationship, and then analyses perceptions of and attitudes towards recent changes in the Hong Kong business environment. In addition to exploring the nature and content of manager's psychological contracts in Hong Kong, the study explores how contracts are related to and affected by both the external environment and internal management practices. A survey questionnaire is used to measure the promises and commitments perceived to have been made by organizations, and the obligations that employees perceive they owe to their employer. In addition, the actual policies and practices of the employing organizations are determined. The impact of the HRM climate of the employing organizations (actual policies and practices) and the attitudes, expectations and feelings of organizational members about ongoing changes in the business and management environment on this exchange relationship are isolated. The study makes two contributions to the psychological contract literature: it examines the relevance of a psychological contract approach in a nonWestern geographical region; and it moves the concept of HRM preferences more centrally into the psychological contracting literature. This enables a better understanding of the construct in relation to the comparative management literature. The content of the psychological contract is shown to be multi-dimensional. Perceptions of organizational commitments and promises focus around four judgements: an intrinsically satisfying and challenging environment; a secure and rewarding job; equity; and supportive leadership. By Western standards the employee side of the employment relationship 'deal' is more one-sided. The proportion of managers who believe employees are strongly obligated to do certain things for their employers is very high. The study examines the factors that predict employees' psychological contracts. Actual HRM practices are shown to predict perceived commitments and obligations, and the strength of obligation is related to perceived promises and commitments. In contrast to the emphasis on the internal cognitive and individualized conception of the psychological contract in much of the literature, this study indicates that this decontextualizes psychological contracts. The true nature of a psychological contract is shown to be an exchange relationship firmly linked to a culture's reciprocity norms.     

The impact of socially responsible human resource management on employees' organizational citizenship behaviour: the mediating role of organizational identification

Based on insights from social exchange and social identity theories, this paper examines the influence of three dimensions of socially responsible human resource management (SR-HRM), namely legal compliance HRM, employee-oriented HRM and general CSR facilitation HRM, on employees' organizational citizenship behaviour (OCB). Structural equation modelling of dyadic data collected from Chinese employees and their direct supervisors in three phases revealed that whilst organizational identification fully mediated the relationship between employee-oriented HRM and employee OCB, general CSR facilitation HRM had a direct effect on employee OCB. In contrast, legal compliance HRM neither influenced employee OCB directly, nor indirectly through organizational identification. The findings highlight the important but complex role played by SR-HRM in eliciting positive employee work outcomes, and contribute to our knowledge of the mechanisms underlying this relationship.     

The relationship between HRM avenues of political influence and perceived organizational performance

This article explores the relationship between the human resource management function's access to avenues of political influence and perceived organizational performance. We examine responses from 441 Australian senior HRM managers who participated in an online survey of a national HRM professional association. Drawing from political influence theory, we develop a model and related hypotheses to investigate the impact of opportunities for the HRM function to manage and control the shared meaning of HRM on perceived organizational performance. Although there was no evidence of a moderating effect of avenues of HRM political influence, CEO support and organizational support for HRM predicted perceived organizational performance. HRM representation on the board of directors appears to serve a symbolic function only. Theoretical and practical implications are discussed in response to the identified importance of CEO and organizational support. © 2007 Wiley Periodicals, Inc.     

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.     

The Business Case for Gender Diversity: Examining the Role of Human Resource Management Investments

Integrating opposing theoretical perspectives from the past literature, the authors hypothesize and test a U‐shaped curvilinear relationship between gender diversity and workforce productivity. They further propose that the curvilinear effects vary depending on the levels of an organization's human resource management (HRM) investments in pay, benefit, training, and communication; that is, the patterns are more salient when HRM investments are high rather than low. To enhance understanding of how HRM investments have impact on diverse employees, the authors also examine the moderating influence of organizational identification of diverse members that can exert proximal influence on the diversity‐productivity relationship. As predicted, results reveal that high levels of HRM investments influence the gender diversity–workforce productivity association to form a U‐shaped curvilinear relationship. Organizational identification also yields the same moderating patterns. Research and practical implications are discussed. © 2015 Wiley Periodicals, Inc.     

Linking HRM and knowledge transfer via individual‐level mechanisms

In response to recent calls for more research on micro‐foundations, we seek to link human resource management (HRM) and knowledge transfer through individual‐level mechanisms, arguing that individual‐level conditions of action influence the extent to which employees engage in knowledge exchange. We examine four such conditions empirically using data from 811 employees in three Danish multinational corporations (MNCs). Our findings suggest that individual‐level perceptions of organizational commitment to knowledge sharing, and extrinsic motivation, directly influence the extent to which employees engage in firm‐internal knowledge exchange. We also find that intrinsic motivation and engagement in social interaction significantly mediate the relationship between perceived organizational commitment and knowledge exchange. Given that HRM can influence such conditions through an overall signaling effect and various practices, an understanding of these micro‐foundations will shed light on how organizations can effectively enhance knowledge transfer through HRM. © 2012 Wiley Periodicals, Inc.     

Promoting the informal sector as a source of gainful employment in developing countries: insights from Ghana

Although the informal sector continues to be the main source of employment in developing countries, little empirical research has been conducted into the human resource management (HRM) issues surrounding this sector in sub-Saharan Africa. Against this background, this study seeks to highlight the HRM issues, such as training and employment strategy, which are assuming increasing importance in the informal sector in developing countries. After reviewing the marginalist and structuralist debates on the informal sector, the paper looks at the Ghanaian government's attempt to transform the sector into a source of national economic development, entrepreneurship and self-employment. As part of this examination, the paper explores the question of whether the government's strategies can provide jobs for all who need them.

Based on the evidence of the empirical research, the paper argues that although the current Ghanaian government's informal employment strategy is a product of political expediency and, therefore, prone to pitfalls, it nevertheless constitutes a worthwhile attempt to combat unemployment in the long term. The paper also contends that in environments of perpetual economic crisis, which undermine the ability of sub-Saharan African (SSA) governments to generate adequate growth, it makes good socio-economic sense to promote the informal sector as a significant source of employment. The government's strategy should, therefore, be seen as an attempt to help the informal sector generate a level of employment above the marginal and survival. In this respect, the Ghanaian experience provides useful lessons for other SSA countries grappling with similar unemployment problems.     

HRM practice in emerging economies: a long way to go in the Slovak hotel industry?

Using empirical data from interviews among leading hotels in Slovakia, this paper sets out to explore recent developments in human resource management (HRM) policies and practices and labour relations in an emerging Central European economy. The main areas explored are the HRM function, employee resourcing, employee development, employee relations and emerging HRM issues. The paper establishes that there has been a move away from the traditional rigid socialist type of personnel management, but it has not been fully replaced by HRM practices. The emergent 'model' is a hybrid of the traditional Western personnel management and basic HRM activities, alongside which some legacies of the socialist personnel function still exist.     

Human resource function strategic role and trade unions: exploring their impact on human resource management practices in Uruguayan firms

Organizations worldwide are confronted with different contextual constraints. Jackson and Schuler [1995, ‘Understanding Human Resource Management in the Context of Organizations and their Environments,' Annual Review of Psychology, 46, 237–264], in their classical review, highlight the importance of the impact of the internal and external organizational context on human resource management (HRM) practices. This paper uses data collected through a survey of firms located in Uruguay, in a context where HR function and trade unions have gone through significant changes, to determine their impact on the adoption of different HRM practices. The authors find that organizations with an HR function strategically involved and with higher degree of union presence have more person-centred HRM practices, while performance-centred HRM practices were positively influenced by HR function strategic role. However, the findings do not support the moderating role of trade union presence on the relationship between the HR function strategic role and HRM practices.     

Employment relationships: ideology and HRM practice

HRM appears to both believe that unitarism already exists in employment relationships and, at the same time, sees itself as the means to achieving unitarism through the introduction of systems of ‘high commitment management’ (HCM) in the workplace. The primary goal of HCM is empirical unitarism, achieved by the implementation of a system of practices aimed at aligning the interests and objectives of managers and workers. Not surprisingly these taken-for-granted values and beliefs in HRM about employment relationships have stirred debate in the literature, with many suggesting this is a flawed view of organizational life (Hart, 1993; Keenoy, 1999). This study has attempted to verify empirically these assumptions from a managerial perspective by first identifying the current employment values and beliefs of managerial workers and management and second examining the extent to which these influence, or are influenced by, the adoption of high commitment practices in the workplace. It finds managers do consider employment relationships in general to be pluralist, however, when it comes to employment relationships in their own organizations managers' report these to be unitarist. A relationship is also found to exist between the use of HCM in the workplace and managerial values and beliefs, with increased usage of HCM being associated with unitary values and beliefs.     

Content vs. Process in the HRM‐Performance Relationship: An Empirical Examination

This study investigates the impact of a human resource management (HRM) system, which integrates both content and process of human resource (HR) practices, on organizational performance, through collective employee reactions. The analysis is based on a sample of 1,250 Greek employees working in 133 public‐ and private‐sector organizations, which operate in the present context of severe financial and economic crises. The findings of the structural equation modeling suggest that content and process are two inseparable faces of an HRM system that help to reveal a comprehensive picture of the HRM–organizational performance relationship. Based on the findings that collective employee reactions mediate the HRM content (i.e., organizational performance relationship) and HRM process moderates the HRM content (i.e., employee reactions relationship), the study has several theoretical and practice implications. © 2014 Wiley Periodicals, Inc.     

Inclusive human resource management in freelancers' employment relationships: The role of organizational needs and freelancers' psychological contracts

This study aimed to advance our understanding of inclusive human resource management (HRM) in freelance employment. We examined organizational needs and freelancers' psychological contracts with a qualitative interview study among eight dyads of HR managers and freelancers. Although the findings showed that organisations and freelancers have different interests, both parties agreed on what inclusive HRM entails in freelancers' employment relationships. However, within the dyads, the content of the psychological contract was not always viewed the same by HR managers and freelancers. Hence, negotiating mutual expectations when implementing inclusive HRM to avoid psychological contract breach appeared important. Furthermore, organizational needs did not seem to be considered when designing inclusive HRM. Due to this lack of strategic fit, organisations may waste opportunities of tapping into the full potential of hiring freelancers. The findings provide organisations insight in considering freelancers as potential sources of competitive advantage.     

Human resource management and the performance of Western firms in China

The study examines the relationship between human resource management and organizational performance in sixty-two manufacturing Chinese-Western joint ventures and wholly owned subsidiaries located in different parts of the People's Republic of China. A positive relation was found between firm performance and the extent to which firms used a 'high-performance' HRM system as well as the degree to which they engaged in the integration of HRM and firm strategy.     

To what extent is corporate social responsibility part of human resource management in the Chinese context? A review of literature and future research directions

There has been considerable research attention to corporate social responsibility (CSR) in relation to human resource management (HRM) in the Chinese context in the last decade. This systematic review of extant literature of CSR–HRM in the Chinese context is thus undertaken with the aim of identifying what we know, what the gaps are in this field of research, and what their relevance is to theory and practice. It reveals a number of limitations in the emerging body of CSR–HRM research in the Chinese context. We call for more context-driven and interdisciplinary and multi-level research oriented to organizational problem-solving, to make our CSR–HRM studies more legitimate and relevant for businesses and societies. We also call for a more in-depth and refined approach to research design, in order to better understand organizational CSR–HRM practices, workplace environments, and related outcomes. Research on CSR–HRM in Chinese firms also needs to be situated in the international context with broader implications, because Chinese firms do not operate in isolation. Rather, they are governed, directly and indirectly, by international institutions and seek to influence global governance at the same time, with HRM implications. Finally, research on CSR–HRM in the Chinese context needs to be framed in a broader framework and to assess real-life issues and impacts.     

'Best practice' human resource management: perfect opportunity or dangerous illusion?

In recent years there has been a considerable degree of interest in the notion of 'best practice' HRM, inspired at least in part by the work of Jeffrey Pfeffer. Along with other contributions from the UK and the USA, this has resulted in assertions that a particular bundle of HR practices can increase profits irrespective of organizational, industrial, or national context. In this paper, we focus on the way in which HRM is characterized in these writings, querying whether the practices which are typically assumed and put forward as 'good' may not appear quite so beneficial to workers when analysed more systematically. It is suggested that there are a number of problems with the notion of 'best practice', both in relation to the meaning of specific practices, and their consistency with each other, and the claims that this version of HRM is universally applicable. The unitarist underpinnings of this literature are also exposed. This is not to argue that HR policies and practices do not influence organizational performance but, rather, that we cannot determine this from the current literature. The 'best practice' conclusions may be attractive but the jury is still out.     

Sustainable HRM: An extension of the paradox perspective

Sustainable human resource management (HRM), perceived as challenging the dominant models of strategic HRM, concerns the adoption of HRM strategies and practices to achieve simultaneously financial, social, environmental, and HR regeneration goals, to satisfy diverse stakeholders' competing demands and, increasingly, national legislative requirements of sustainability performance reporting. Tensions are placed at the centre of sustainable HRM's analysis, as stakeholders demands are contrasting, when seen individually, but yet interrelated, as part of an integrated whole. The paradox perspective of sustainable HRM is useful in identifying several HRM paradoxes and proposing different coping strategies. However, the role of organizational actors, their cognition and strategy-making action, has been completely ignored in a highly conceptual paradoxical analysis of sustainable HRM. Drawing on the cognitive theory (and cognitive framing) and the practice theory (and strategy-as-practice), this paper contributes by bringing organizational actors back into the analysis, proposing three interrelated processes, namely, activating individual cognitive frames, creating collective dominant frames, and strategizing through enacting strategy-making activities, to address the theoretical gaps and extend the paradox perspective of sustainable HRM.     

How and when matter: Exploring the interaction effects of high‐performance work systems,employee participation,and human capital on organizational innovation

Existing research on the relationship between high‐performance work systems (HPWS) and organizational innovation has paid insufficient attention to the boundary effects of employee participation and human capital. Bridging the human resource management (HRM) and employment relations literature, this study contributes to the contingency view of HRM and China‐specific research by investigating how human capital and employee participation, direct voice mechanism, and corporate governance participation jointly moderate the relationship between HPWS and organizational innovation. We test our three‐way interaction model using a sample of 108 firms and 1,250 employees in China. The results suggest that HPWS are positively associated with organizational innovation when employees with relatively less human capital are coupled with more direct voice mechanism or less corporate governance participation. In contrast, HPWS are negatively related to organizational innovation when employees possessing greater human capital are coupled with more direct voice mechanism. The theoretical and managerial implications and future research directions are discussed.     

Human resources in Sino-foreign joint ventures: selected case studies in Shanghai,compared with Beijing

This article examines HRM in joint ventures (JVs) in Shanghai compared with those in Beijing using a case-study approach. It focuses primarily on issues relating to labour contracts, rewards and benefits, social insurance, trade unions and personnel policies, and describes current developments in China in each of these areas. In order to place these JV human resource practices in context, we also draw on interviews in state-owned enterprises (SOEs) in Shanghai and Beijing. Taking as a starting point a summary of traditional SOE 'iron rice-bowl' ( tie fan wan ) practices in the management of personnel, we ask to what extent HRM in the present JV sample differs from traditional methods and to what extent 'iron rice-bowl' practices continue despite foreign ownership. The extent to which HR practices in JVs are distinct from those in contemporary SOEs is also examined. We conclude that, although, as one would expect, foreign ownership has modified traditional practice, the degree and extent to which this is true varies widely. There is strong evidence of institutional and organizational continuity in 'iron rice-bowl' practices in both JVs and SOEs. Finally we propose a framework for categorizing the companies investigated in terms of their distance from traditional 'iron rice-bowl' HR practices and proximity to 'imported' practices. This consists of two 'pure' and two hybrid categories: pure 'iron rice-bowl'; hybrid I (predominantly local); hybrid II (predominantly imported): and, finally, pure imported. In this schema, the companies examined do not however group neatly according to whether they are JVs or SOEs.     

A comparative study of human resource management practices in international joint ventures: the impact of national origin

This paper presents a comparative study of the effects of national origin, a company's strategic orientation and its investment profile on preference for the application of human resource management (HRM) practices as conducted in international joint ventures (IJVs). The approach extends understanding by offering a broader exploration of how national differences generate additional barriers that impact on specific HRM practices. The evidence from the study presented suggests that there is little support for national origin being a major independent influence. National distinctiveness does define the types of integration between parent companies and IJVs, but these collaborations do not necessarily reflect any specific national institutional bias. Examination of eighty-seven IJVs suggests that IJV management has a high degree of organizational autonomy in the implementation of a company's task-related inputs regardless of the national background of the foreign partner. The presence of a company's task-related effects on HRM practices plays a significant contextual role where the major attributes are the technology, management development and the compatible use of an IJV's resources. The results confirm that there is little evidence to suggest that partner-related influences derived from the partners' complementary resources and competences in the field of HRM development that are national origin specific have had significant influence over HRM development in the IJVs studied.     

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.