The effect of human resource practices on organizational performance: evidence from Greece

The present study addresses a central research question: how do human resource management practices contribute to organizational performance? We examined the following HR practices: (1) job security; (2) selective hiring; (3) self-managed teams and decentralization of decision making; (4) compensation policy; (5) extensive training; and (6) information sharing. We surveyed food managers in Greece and recorded their perceptions on HR practices and their relation to firm performance.

Results provide overall support for all HR practices except of job security. Selective hiring was found to be a key practice that improved organizational performance. Compensation policy, information sharing, decentralization of decision making and extensive training were significant predictors for all performance variables. Directions for further research are provided.     

Are new work practices applied together with ICT and AMT?

The goal of this paper is to analyze the association between Information and Communication Technologies (ICT) and Advanced Manufacturing Technologies (AMT) and the adoption of a number of new work practices, such as job autonomy, teamwork, job breadth, suggestion systems and involvement groups. Special attention is paid to examining whether the strength of the association with new work practices is the same for the two technologies. The data used in the empirical part of the research come from a survey conducted in 281 Spanish manufacturing plants. The results show that ICT use among production workers is only positively related to higher coverage of involvement groups. On the other hand, AMT use is positively associated with the incidence of self-managed teams, job autonomy and suggestion systems. We have found differences between ICT and AMT in the strength of association with new work practices for self-managed teams and suggestion systems.     

Stakeholders in high-performance work systems

Recent research investigating human resource management (HRM) in organizations has used the systems approach which views HRM as a coherent set of practices. In particular, the notion of high-performance work system identifies a set of HRM practices that are presumed to be more responsive to the environmental challenges currently faced by organizations. Empirical studies have confirmed the system notion, particularly of what has been referred to as the high-performance work system, and its impact on organizations. Explaining its existence in organizations, which will help address the question of limited adoption, is only beginning, with one study each done in Great Britain and Canada. The present study extends the notion of competing interest groups to explain the existence of an HRM system, using more active influence measures. A sample of 222 business organizations in the United States reveals that, of four likely interest groups examined, unions and HRM departments prove to have competing interests in a high-performance work system.     

Change of work schedule and its implications during financial crisis: the case of the Philippines

This study was conducted on the human resource management response of ten manufacturing companies in the Philippines to the financial crisis that affected the country. Instead of implementing manpower reduction, the companies adopted either flexitime or working-week reduction. The study tried to capture the effects of this approach on employees' job satisfaction and work stress. The study deduced that the change of work schedule affected the level of job satisfaction significantly but did not elicit the same effect in the area of work stress. The results negated the expectations of the management. Employees' perception of their work schedule is among the different factors that affect their job satisfaction.     

Beyond bureaucracy? Work organization in call centres

Call centres are a rapidly growing, IT-based channel for service and sales delivery, particularly in the financial services and telecom industries. Although little research has been undertaken on the human resource aspects of call centres, two contrasting images are emerging. The first emphasizes the bureaucratic, constraining nature of these work settings, while the second image points towards worker empowerment characteristic of knowledge-intensive settings. Which of these two images more faithfully portrays the nature of work organization in call centres is the subject of our paper. Drawing on qualitative research undertaken in six call centres and a survey of front-line workers, we show that elements of both models coexist and that a hybrid model predominates. The theoretical basis for this contention, and its institutionalization as mass customized bureaucracy, lies in management's on-going attempts to reconcile two conflicting principles: standardization of processes and customization of products. The paper also explores, as key consequences of mass customized bureaucracy, front-line workers' satisfaction with various facets of their job and their overall job satisfaction, in addition to discretionary work effort. Only in relation to job security and co-worker relations could front-line workers be considered satisfied. Overall, these employees were ambivalent in their responses. They were however more likely to give more discretionary work effort than indicated by their extent of satisfaction. We conclude that, although the existing pattern of work organization may be superior to more bureaucratic forms, it is by no means ideal from the standpoint of either front-line workers or management.     

Self-managed work teams: an enabling or coercive nature

The paper analyses self-managed work teams (SMWTs) of two Portuguese industrial firms, using the case-study method. It examines the nature of SMWTs, by discerning a double enabling and coercive face. The enabling features are related to high levels of job enrichment, broad employee participation, and extensive communication. The coercive features are related to incidental job rotation to optimize technology, asymmetries of technical knowledge between supervisors or industrial engineers and team members, economic cohesion based upon the group-performance system and peer pressure toward self-discipline. An enabling face of SMWT has greater chances to prevail under an organizational infrastructure based upon management commitment regarding economic, cultural and social objectives of SMWTs, management ability to develop a set of complementary and mutually reinforcing HR practices and production programs aligned with SMWTs, as well as a past history and employees' past experience in tune with present changes.     

Job satisfaction in teams

This paper analyses and discusses the results of a large sample survey of job satisfaction among clerical employees working in teams. The relative strengths of association between several variables and job satisfaction are assessed and the results support the importance of on-the-job training, participation in decision making and management leadership. Questions are raised about first-line supervisors as team leaders.     

The impact of sourcing enterprise system use and work process interdependence on sourcing professionals’ job outcomes

We examine sourcing professionals’ work context to conceptualize how they use sourcing enterprise systems (SESs) and to understand when SES use results in positive/negative job outcomes. We differentiate between SES use for supplier selection and supplier governance, identify sourcing professionals’ work process interdependence as a moderator for the impacts of SES use on job satisfaction, and suggest job satisfaction mediates the impacts of SES use on job performance. We conducted a field study of sourcing professionals’ SES use at one of the largest consumer product companies in the United States, which has implemented an SES to innovate its sourcing professionals’ work processes. Based on our analysis of the survey and qualitative data we collected, we found the impacts of both types of SES use (1) to be negative on job satisfaction when work process interdependence was high, (2) to be positive on job satisfaction when work process interdependence was low, and (3) to be mediated by job satisfaction for job performance. We discuss the implications of our findings for the literature at the intersection of information systems and operations management as well as for the information technology enabled innovation of sourcing processes and, more generally, complex business processes.     

Performance appraisal: dimensions and determinants

Abstract

Using a sample of Spanish establishments in the manufacturing sector, this article analyses the determinants of the dimensions of performance appraisal. The dimensions examined are performance measures, who evaluates performance and frequency. The results show that the degree of autonomy of the workforce affects positively the use of subjective criteria. It is also more likely that performance appraisal is carried out by the supervisor in the presence of teams and internal promotions. Regarding the explanation of the frequency, teams affect negatively this dimension of performance appraisal.     

What really matters in a job? Hedonic measurement using quit data

This paper uses labour market spell data from the first seven waves of the British Household Panel Survey (BHPS) to model separations and quits. Three main results emerge. First, job satisfaction data are powerful predictors of both separations and quits, even controlling for wages, hours and standard demographic and job variables. Second, the comparison of the power of seven domain job satisfaction measures in a quit equation yields a ranking of job characteristics: job security and pay are the most important, followed by use of initiative, the work itself, and hours of work. This ranking differs markedly across different labour market groups. Last, union job dissatisfaction seems to be real: dissatisfied union members are just as likely to quit as are dissatisfied union non-members. However, union “free-riders” (non-union members at establishments with union recognition) do seem to behave differently from workers at establishments where unions are not recognised.     

Do high performance work practices work in South Korea?

The distribution of so‐called high performance work practices (HPWPs) in South Korean manufacturing is mapped showing their relative scarcity. Contextual and institutional factors associated with the 1997–98 financial crisis are advanced to explain these findings. Nevertheless, anticipating that HPWPs are likely to improve performance, we tested several hypotheses. Employment security, teams, training, job enrichment and information sharing have a positive effect on performance; however there is no evidence of synergy. Most HPWP practices are partially mediated by worker attachment to their workplace. Government workplace reform policy, firms' business and labour utilisation strategy, and the presence of professional management contribute to performance.     

Developments in human resource management in manufacturing in modern Britain

In this paper, developments in human resource management in manufacturing in modern Britain based on a national sample are examined. The organization and role of human resource management, employee involvement, training and development, work practices and rewards are all targeted for an assessment of current practices. This is a prelude for a contrast between manufacturing and non-manufacturing. The conclusion is that the similarities between manufacturing and non-manufacturing substantially outweigh the differences. By inference, too, developments in human resource management practices are likely to reflect changes in the broader environment of businesses (and differences between companies) rather than being specific to the main industrial sectors.     

Use of work–nonwork supports and employee well-being: the mediating roles of job demands,job control,supportive management and work–nonwork conflict

Abstract

This paper examines the impact of the use of work–nonwork supports on well-being. It first develops hypotheses regarding how a reduction in job demands, and an increase in both job control and supportive management may explain this relationship. We then test these hypotheses using data from Britain’s Workplace Employee Relations Survey of 2011. The research reveals that the use of work–nonwork supports has a positive association with job control and supportive supervision. These in turn mediate a relationship between the use of supports and three dimensions of employee well-being, job satisfaction, anxiety-contentment and depression-enthusiasm, some of the effect being through their reducing work–to–nonwork conflict. Use of work–nonwork supports is, however, positively associated with job demands, but this effect of use on job demands does not affect well-being. Since job autonomy and supportive supervision are major mediators, and have a direct influence on work–nonwork conflict and well-being, policy should focus on integrating job quality and work–life balance issues.     

Job evaluation systems and pay grade structures: do they match?

Job evaluation is usually applied in an organization in order to assess the relative value of jobs on the basis of which jobs are assigned to classes of pay grades. Thus, the assumption is that job value scores match with pay grade structures, and allow adequate predictions of basic job wages or salaries in practice. The validity of this assumption is questioned in this article. Data of five job evaluation systems (number of jobs: 16,809) were used to assess the effects of three system manipulations, concerning the number of anchors per scale (characteristic), the nature and the number of scales, and the weights of scales. Total job value scores of the manipulated data and the associated pay grades were compared with the non-manipulated ('original') scores. It turned out that even when two sets of job value scores are highly correlated (around 0.99), pay grade classification agreement was always less than 90 per cent, and in many instances much less. This result has important implications for the use of job evaluation in practice: when a fine grained system of pay grades applies, total job value scores may be deficient. Implications for a better match between total job worth values and pay grade classes are discussed.     

Looking East: diffusing high performance work practices in the southern Afro-Asian context

Most cross-cultural international human resource management (IHRM) literature contains instructive comparative analyses of East Asian and Western countries and lessons from Japanese best operating practice. There is a paucity of literature extending this debate to the African context and of comparative IHRM work between East Asia and African countries. This article fills a contextual gap in offering a comparative analysis of diffusion and adoption of high performance work practices from East Asia in southern African firms. The continued relevance of 'context' is critically evaluated, given powerful forces for convergence in the global economy. However, much of the debate on the convergence/divergence framework appears to neglect process dynamics and cross-vergence in the development and implementation of hybrid practices as well as reverse diffusion. This article highlights the importance of considering certain variables of local distinctiveness and diversity as features of the notion of cross-vergence which shape particular human resource practices.     

Financial participation and recruitment and retention: causes and consequences

Using a sample of over 5000 establishments in Germany, we analyze the antecedents and effects of profit sharing (PS) and employee share ownership (ESO) with respect to the ability of firms to meet their recruitment and retention objectives and to achieve employment growth. We draw on both economic and behavioral perspectives to argue that firms that adopt PS and ESO plans do so in order to attract and retain employees. Using logistic regression and a propensity score matching technique, we find that firms that face higher recruitment problems, and those that have greater employment growth objectives, are more likely to use ESO and PS. Unlike ESO, PS enhances firm-level employment growth. However, neither ESO nor PS help firms to fully resolve recruitment and retention problems.     

Flexicurity and job satisfaction in Europe: The importance of perceived and actual job stability for well-being at work

In this paper we study the effect of a micro-level measure of flexicurity on workers' job satisfaction. To this end, using micro-data from the Eurobarometer survey, we disaggregate the sample of workers into different groups according not only to their employment contract (i.e. permanent or temporary), but also to their perceived job security, and we evaluate differences in job satisfaction between these groups. After the potential endogeneity of job type has been controlled for, the results show that what matters for job satisfaction is not just the type of contract, but mainly the perceived job security, which may be independent of the type of contract.The combination “temporary but secure job” seems preferable to the combination “permanent but insecure job”, indicating that the length of the contract may be less important if the worker perceives that s/he is not at risk of becoming unemployed. Our main conclusions are robust to the use of alternative definitions of workers' types and they generally hold within different welfare regimes and also for different aspects of job satisfaction, mainly those more related to job security.     

Teams in Australia's automotive industry: Characteristics and future challenges

Australia's automotive industry has throughout the 1990s embarked on a sustained programme to improve product quality, productivity and quality of work life through the development of a more flexible and team-based work-force. This paper examines the results of these efforts through a study of Australia's four car makers and their largest component suppliers. The paper examines the role of union-management cooperation in implementing work teams, identifies the forms of work teams that have been developed as well as evidence for the alignment of organization capabilities to support team-based work. The effects of work teams on organizational performance and quality of work life are also examined. Implications are discussed.     

Are top human resource specialists 'strategic partners'? Self-perceptions of a corporate elite

Despite the existence of various large-scale surveys of human resource specialists, there has been little research focusing specifically on the top cohort of HR practitioners. In addition, the surveys offer little insight into the ambiguous, but important questions associated with the strategic management process in large, complex corporations. This article reports a study of the qualifications, work histories, role orientations and strategic contributions of the most senior HR specialists in the New Zealand business sector. These elite practitioners typically demonstrate a 'dual background' in specialist HR activities and line management, and strongly subscribe to Legge's notion of 'conformist innovation'. As in the United Kingdom, they tend to focus primarily on the management of managers and, to a lesser extent, the management of industrial relations. Their work is increasingly integrated with other spheres of the business such as quality management. Whether their contribution is regarded as 'strategic' depends on the model of strategic management that informs the question. This paper argues that the survey-based studies have inappropriately adopted 'outside-in' models of strategic management which privilege marketing notions and assume that 'formulation' is more strategic than 'implementation'. The work of these senior HR specialists is more fairly assessed under a conception of the strategic problem which balances external and internal concerns. Given the present realignment of strategy theory, the challenge facing these HR specialists is that of developing frameworks for corporate planning and performance analysis which attribute a more central role to the critical elements of HRM.