Theorizing the relationship between discretionary employee benefits and individual performance

The literature on compensation has devoted little attention to the relationship between discretionary employee benefits and individual performance, perhaps because benefits are allocated equally to large groups of employees, are not tied to individual performance, and are viewed as entitlements. Discretionary benefits include all the benefits an employer provides to employees voluntarily (i.e., not legally required). Employees can use internet search tools to make comparisons between focal and referent firms of their expenditures on discretionary benefits, which can symbolize employer support for employee well-being or invoke perceptions of equity. In our paper, we provide a novel insight into the relationship between discretionary benefits and employee individual performance through a theoretical lens that combines insights from organizational support theory and equity theory shaped by perceptions of social and economic exchange relationships. In our conceptual model we develop theoretical logic that explains that perceived discretionary benefits, moderated by benefits satisfaction and mediated by perceived organizational support and perceived equity, are linked to individual performance. The paper concludes with a discussion of the theoretical implications and directions for future research.     

How do leaders' perceptions of organizational health climate shape employee exhaustion and engagement? Toward a cascading-effects model

Although researchers and practitioners increasingly focus on health promotion in organizations, research has been mainly fragmented and fails to integrate different organizational levels in terms of their effects on employee health. Drawing on organizational climate and social identity research, we present a cascading model of organizational health climate and demonstrate how and when leaders' perceptions of organizational health climate are linked to employee well-being. We tested our model in two multisource studies (N_{Study 1} = 65 leaders and 291 employees; N_{Study 2} = 401 leader–employee dyads). Results showed that leaders' perceptions of organizational health climate were positively related to their health mindsets (i.e., their health awareness). These in turn were positively associated with their health-promoting leadership behavior, which ultimately went along with better employee well-being. Additionally, in Study 1, the relationship between perceived organizational health climate and leaders' health mindsets was moderated by their organizational identification. High leader identification strengthened the relationship between perceived organizational health climate and leaders' health mindsets. These findings have important implications for theory and practice as they show how the dynamics of an organizational health climate can unfold in organizations and how it is related to employee well-being via the novel concept of health-promoting leadership.     

Leader‐Member Exchange,Group‐ and Individual‐Level Procedural Justice and Reactions to Performance Appraisals

Previous research has established that relationships with authority figures and procedural justice perceptions are important in terms of the way in which employees react to organizational procedures that affect them. What is less clear are the reasons why exchange quality with authorities is related to perceptions of process fairness and the role of procedural justice climate in this process. Results indicate that individual‐level perceptions of procedural justice, but not performance ratings, partially mediate the relationship between exchange quality and reactions to performance appraisals, and that procedural justice climate is positively related to perceptions of procedural justice and appraisal reactions. These results support a more relational than instrumental view of justice perceptions in organizational procedures bound by exchange quality with an authority figure. Our study suggests that it is essential for managers to actively monitor and manage employee perceptions of process fairness at the group and individual levels. © 2015 Wiley Periodicals, Inc.     

Illuminating the ‘Face’ of Justice: A Meta‐Analytic Examination of Leadership and Organizational Justice

A significant body of research has described effective leader behaviours and has connected these behaviours to positive employee outcomes. However, this research has yet to be systematically integrated with organizational justice research to describe how leader behaviours inform justice perceptions. Therefore, we conduct a meta‐analysis (k = 166, N = 46,034) to investigate how three types of leader behaviours (task, relational, and change) inform four dimensions of organizational justice (procedural, distributive, interpersonal, and informational) referenced to the leader and to the organization. Further, we examine the joint impact of leader behaviours and justice perceptions on social exchange quality (i.e., leader–member exchange), task performance, and job satisfaction. Our results suggest that leader behaviours differentially inform leader‐ and organization‐focused justice perceptions, and the joint effect of leader behaviours and justice perceptions offer more nuanced explanations for outcomes.     

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.     

Career mentoring in context: A multilevel study on differentiated career mentoring and career mentoring climate

This study explores how supervisor career mentoring contributes to contemporary organizational career development, which strives to foster employees' promotability while strengthening their intention to stay. Specifically, we focus on the implications of career mentoring in team contexts. Applying a multilevel framework, we distinguish between individual‐level differentiated mentoring (i.e., an employee's mentoring perceptions as compared to those of other team members) and group‐level career mentoring climate (i.e., the average perception across all group members). In a workplace setting, we collected data from vocational job starters (N ranged from 230 to 290) and their company supervisors (N ranged from 56 to 68). We find that career mentoring climate positively relates to promotability, more so than differentiated career mentoring. Both career mentoring climate and differentiated career mentoring are positively related to the intention to stay. At the individual level, this relationship is mediated by job satisfaction. We discuss theoretical and practical implications of differentiated and group‐level mentoring.     

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.     

A multi-level examination of quality-focused human resource practices and firm performance: evidence from the US healthcare industry

In today's business world, the role of quality has become ever more significant for organizations to compete in a global marketplace. Based on the quality management theory, this study empirically examines the relationship between quality-focused human resource practices (QHRP) and organizational performance outcomes. Data from 69 healthcare organizations indicate a strong support for this relationship. A Human Resource (HR) system focused on quality management was directly related to multiple dimensions of organizational performance outcomes (i.e., intangible – employee satisfaction and customer satisfaction – and tangible – profit). Specifically, two measures of QHRP, knowledge management and strategic management, were found to be positively related to the financial performance of firms implementing quality management. Process management is found to be negatively related to employee satisfaction. General Human Resources were positively related to both employee and customer satisfaction. Employee focus of the firms is also positively related to employee satisfaction. In addition, employee satisfaction is also related to both customer satisfaction and financial performance while customer satisfaction is found to be positively related to employee satisfaction. The findings indicate a generally strong positive relationship with the organizational performance outcomes. The results of this study are particularly important in showing HR's contribution to the organization's bottom line.     

Held captive in the office: an investigation into long working hours among Korean employees

Although working long hours is a common practice, scholars still know little about what really causes employees to work long hours. Drawing on social information processing and social learning theory, this study examines the role of social contextual antecedents (i.e. supervisor working hours and the perceived overtime climate of one’s workgroup) in influencing employee working hours, after controlling for individual background and job characteristics. Further, we examine whether such relationships are contingent on employees’ individual differences in their identification with leader and a collectivist tendency. A field study of 200 supervisor-subordinate dyads in South Korea revealed a strong positive relationship between the contextual antecedents and employees’ working hours, as well as the moderating effects of the two individual difference variables. Specifically, we found that the relationship between supervisor working hours and employee working hours was more positive for low identifiers than for high identifiers, while the relationship between the perceived overtime climate and employee working hours was more positive for those low in collectivism than for those high in collectivism. Finally, we found that working long hours was associated with lower job satisfaction, higher psychological distress, lower in-role performance, but not with organizational citizenship behavior.     

Using profit sharing to enhance employee attitudes: A longitudinal examination of the effects on trust and commitment

The ability of profit sharing to increase organizational performance via positive changes in employee attitudes has yielded mixed results. Drawing on principal agent, expectancy, and organizational justice theories, we assess how perceptions of profit sharing (capacity for individual contribution and organizational reciprocity) alter organizational commitment and trust in management using longitudinal data provided by 141 engineering employees. Favorable perceptions of profit sharing served to increase organizational commitment while only organizational reciprocity predicted trust in management. The relationship between organizational reciprocity and commitment was partially mediated by trust in management. Implications for the design of profit sharing initiatives are noted. © 2002 Wiley Periodicals, Inc.     

Strategic HRM as process: how HR system and organizational climate strength influence Chinese employee attitudes

In contrast to the high-performance work systems literature that focuses on HR practices, we follow Bowen and Ostroff in examining human resource management (HRM) processes, specifically the strength of an HR system (its distinctiveness, consistency, and consensus) and its contribution to the organizational climate (employees' shared perceptions of the HR system). Based on 810 employees within 64 units in three Chinese hotels, we examine how employee perceptions of HRM system strength and organizational climate are associated with employees' work satisfaction, vigor, and intention to quit. The distinctiveness of an HRM system was found to be related to the three employee work attitudes, and high climate strength increases both the positive relationship between consensus and work satisfaction, and the negative relationship between consensus and intention to quit. We draw on aspects of Chinese society to interpret these findings. Several important research and HR practice implications are highlighted and discussed.     

Does Public Service Motivation Mediate the Relationship between Goal Clarity and both Organizational Commitment and Extra-Role Behaviours?

Research has not considered how goal clarity can affect work attitudes through public service motivation (PSM). As a result, a model was developed to examine the relationship between goal clarity, PSM, and two employee work attitudes and behaviours (i.e., organizational commitment and extra-role behaviours). Several important findings emerged from the model. First, goal clarity was positively associated with PSM. Second, goal clarity was positively associated with both organizational commitment and extra-role behaviours. Finally, PSM was found to partially mediate the relationship between goal clarity and both organizational commitment and extra-role behaviours. The implications these findings have for theory and practice are discussed.     

The inside effects of a strong external employer brand: how external perceptions can influence organizational absenteeism rates

In this study, we invoke a social identity and job resources perspective to investigate the impact of an organization’s internal and external employer brand images on employee absenteeism. Specifically, using workforce samples of 56 Belgian companies (n = 12670) and a second independent study sample (n = 4461), we assess the relative importance of the internal employer brand image (i.e. employee perceptions) and the external employer brand image (i.e. non-employee perceptions) in predicting the absenteeism rate in these organizations. Results show that corporate absenteeism decreases as internal (employee) views and external (non-employee) views of the organization decline. Results further show that the external employer brand image may be a more important driver of absenteeism than the internal employer brand image. Such results highlight that an organization’s external image may be a strong antecedent of important internal organizational behavior outcomes.     

Employee involvement climate,task and citizenship performance,and instability as a moderator

This study explored the group-level effects of a climate of employee involvement. Using the immediate manager as the referent, we examined data from 153 workgroups to establish a positive relationship between climate for employee involvement and performance. Through multilevel analysis, we provide results supporting that a climate for employee involvement positively relates to group citizenship behaviors and group task performance, respectively. Furthermore, moderation analyses confirmed the deleterious effects of member turnover on the positive relationship between a climate of employee involvement and performance. Taken together, these results support the concurrent work exploring transactive memory and mental models in groups to further explicate the interactive effects of group-level perceptions and stability on performance.     

Gender inequities in the workplace: A holistic review of organizational processes and practices

In this paper, we provide a broad, integrative review of the degree to which gender inequities exist in organizational domains and practices covering areas such as performance evaluation, compensation, leadership, work-family conflict, and sexual harassment, spanning the employee lifecycle from selection to exiting the organization. Where the literature allows, we review intersectionality findings. We also review the factors and processes that facilitate and hinder gender equity in the workplace, by drawing on the most robust empirical evidence. Throughout the paper, we distinguish between findings that allow us to infer gender inequity versus gender equality. Consolidating these disparate literatures allows us to develop a model that explains how gender inequities cumulate across the employee lifecycle and are reinforced across multiple levels (i.e., societal, organizational, interpersonal, and individual). We also identify important gaps in the literature, suggest next steps for research and highlight practical implications for organizations aiming to advance gender equity.     

Perceptions of HR practices and innovative work behavior: the moderating effect of an innovative climate

Abstract

The purposes of this paper are to explore the effect that perceived HR practices have on the innovative work behavior (IWB) of individual workers and to examine the role that an innovative climate plays in this relationship. We hypothesize that employees will show greater IWB if they perceive the organizational climate to support innovation and perceive the presence of HR practices related to a compensation system, training and development, information sharing, and supportive supervision. Using data from 463 individuals in four Dutch manufacturing companies, the study tests the effects of employees’ perceptions of HR practices and of an innovative climate on their innovative behaviors. We found that employee perceptions of a compensation system are negatively related to IWB, and that employee perceptions of information sharing and supportive supervision are positively related to IWB. The effect of perceptions of information sharing and training and development on IWB are moderated by an innovative climate, in such a way that information sharing has a stronger effect on IWB and training and development a weaker one. Managers can stimulate innovative behavior by investing in information sharing, supportive supervision, and establishing an innovative climate.     

Impact of nationality composition in foreign subsidiary on its performance: a case of Korean companies

This study explores how the nationality compositions of management teams and employee groups in foreign subsidiaries can affect subsidiary performance. By analyzing firm-level data on 401 South Korean subsidiaries across 35 countries in the period between 2005 and 2007, we found that balanced compositions in both subsidiary management teams (SMTs) and subsidiary employee groups (SEGs) were positively associated with subsidiary performance. The results suggest that the benefits of balanced composition are higher for both innovative and coordinative tasks conducted by management teams and for simple computational tasks conducted by employee groups. The effect of the SMT and SEG compositions on subsidiary performance, however, may depend on the host country's institutional conditions. These findings have practical implications for multinational staffing strategies in order to ensure high performance in subsidiaries and for host country policies used to attract high quality foreign direct investments.     

About and beyond leading uniqueness and belongingness: A systematic review of inclusive leadership research

The purpose of this systematic review of 107 papers is to address the conceptual confusion about what inclusive leadership (IL) behavior entails and understand the theoretical development of IL. Synthesizing the divergent conceptualizations of inclusive leader behaviors, we propose a multi-level (i.e., employee, team, organizational) model of IL behavior consisting of four dimensions namely, fostering employee's uniqueness (e.g., promoting diversity); strengthening belongingness within a team (e.g., building relationships); showing appreciation (e.g., recognizing efforts and contributions); and supporting organizational efforts (e.g., promoting organizational mission on inclusion). Further, we provide a summary of studied variables as a nomological network in relation to inclusive leadership and an overview of the different theories (e.g., social exchange, intrinsic motivation) supporting the respective relationships and explaining the underlying mechanisms (e.g., reciprocity, motivation). We propose future research to empirically test the multi-level model of IL and examine the predictive value in terms of employee and organizational outcomes.     

Fairness in human resource management,social exchange relationships,and citizenship behavior: testing linkages of the target similarity model among nurses in the United States

The current study tests key linkages of the target similarity model by examining relationships among multifoci justice, social exchange, and supervisor ratings of employee citizenship behavior. We found support for the model when examining three different workplace targets simultaneously (i.e., the organization as a whole, supervisors, and workgroup members) using a sample of hospital nurses in the United States. Specifically, we found that: (1) employee perceptions of workgroup fairness, supervisor fairness, and organizational fairness differentially and positively predicted perceived workgroup support (PGS), perceived supervisor support (PSS), and perceived organizational support (POS), respectively and (2) PGS, PSS, and POS differentially and positively predicted citizenship behavior toward the workgroup, toward the supervisor, and toward the organization, respectively. Theoretical and practical implications for the strategic management of human resources are discussed, as are limitations of the study and suggestions for future research.     

Discretionary and transactional human resource practices and employee outcomes: The role of perceived organizational support

Utilizing perceived organizational support (POS) as the mechanism linking HR practices to employee behaviors in the workplace, we examine a broad set of HR practices in order to understand the relative importance of each HR practice (i.e., those that explain incremental variance over other practices) in influencing employee behaviors. We differentiate between discretionary and transactional HR practices to test the discretionary investment requisite of POS theory. The results show that of the eight discretionary practices, only participation and decision making directly influenced the extra‐role behaviors that employees exhibit, and only training and development directly impacted the customer‐oriented behaviors. Furthermore, one of the transactional HR practices was found to have a direct effect on organizational citizenship behavior. Our findings indicate that the performance management process, promotional opportunities, participation, and involvement in decision making affect how employees behave toward the customer and the extra‐role behaviors they exhibit. Furthermore, this occurs through the view employees develop of the organization as a place to work. That is, these four HR practices demonstrate to employees that they are valued, and, in turn, this feeling of being appreciated impacts their commitment to delivering high‐quality service to the customer and going beyond their job responsibilities. Implications for research and practice are discussed. © 2012 Wiley Periodicals, Inc.