You care about me,but can I count on you? Applying a psychological contract perspective to investigate what makes employees willing to be internally employable

Abstract

For this study, we adopted a psychological contract-based perspective to investigate whether the fulfillment of perceived developmental promises made to employees is positively related to their willingness to accept internal job-related changes when needed by the organization, a construct we refer to as the willingness to be internally employable. We also examined the role played by line managers in facilitating employees’ willingness to be internally employable by fulfilling perceived developmental promises. We tested our conceptual model with data collected from ninety-eight recently hired employees in a Norwegian organization under an initiative emphasizing employee development. We found that developmental promise fulfillment is more important for employees’ willingness to be internally employable in this context than any perceived provision of developmental inducements in isolation. Further, we found that employee perceptions of the developmental support provided by their line manager related positively to their willingness to be internally employable by way of developmental promise fulfillment; however, this was not the case with perceived developmental inducements. Our findings support the importance of developmental promise fulfillment in fostering employee willingness to be internally employable and the critical role played by line managers in fulfilling developmental promises that employees believe have been made by their organization.     

Institutions and human resource practices in European countries

Abstract

Stemming from differences between approaches to new institutionalism, this paper analyses the impact of institutions on the adoption of human resource practices (HRP) in organizations. With this aim in mind, two opposing hypotheses are presented: should configurations of national institutions be related to the actual implementation of HRP by organizations or not? This empirical analysis uses a sample of 29,959 employees who work in organizations established in 27 European countries and takes into account the employees’ perception about the HRP used in their organizations and which affect them. The results support the approach to new institutionalism that emphasizes legitimacy and isomorphism, since these results show empirical regularities when countries are compared. Specifically, a country’s configurations of regulative, normative and cognitive institutions are related to the actual implementation of HRP, such as internal promotion, job participation, job design, work-life balance, job training, assessment and teamwork. These results suggest relevant practical implications for human resource managers and policy-makers.     

An analysis of recruitment,training and retention practices in domestic and multinational enterprises in the country of Brunei Darussalam

This paper studies the behavioural differences in the recruitment, training and retention practices of domestic enterprises (DEs) versus multinational enterprises (MNEs) in the country of Brunei Darussalam. Hypotheses from literature survey predict MNEs to be more stringent in their recruitment and training and rigourous with promotion practices. Results show this is to be largely true. MNEs are found to be more rigourous in recruitment and place more emphasis on such traits as candidates' ‘devotion to task’, ‘self-motivation’ and ‘independent judgement’. MNEs were found to rely more on internal appointments. MNEs place more emphasis on training; they also emphasise a stronger work culture by relying on ‘induction by socialisation’ and ‘buddy system for mentoring’. When analysed by age, older firms were found to place more importance on language and commitment. They also rely on training via the buddy system and on external appointments for senior posts. Large firms place emphasis on employees' willingness to travel and on work experience in other countries as the main recruitment criteria. Large firms also believe in external appointments for senior positions. The study, which is one of few of its kind conducted in non-Western environment, and the only one in the context of Brunei, adds to our understanding of human resource practices in the context of two different genres of enterprises and has implications for future research.     

Employee participation and the influence on job satisfaction of the ‘new generation’ of Chinese employees

The participation of ‘new generation’ employees in management and their satisfaction in the workplace, respectively, remain more than ever important issues in the Chinese societal context in particular, as well as having wider implications for human resource management in general. This study accordingly explores the influence of employee participation mechanisms on the satisfaction of this new generation of employees – by carrying out empirical research in the manufacturing industry in China. The main theoretical contribution aims to show that the participation of such new generation employees in management, supervision and decision-making has a significantly positive impact on their work satisfaction. Furthermore, the employees' willingness to participate (participation intention) appears to play a moderating role between actual participation on the one hand, and satisfaction on the other. Such findings, we argue, potentially apply not only in the societal context of China but might also resonate more widely across other countries in the global economy.     

Work values preferences of Generation Y: performance relationship insights in the Australian Public Service

Empirical research to date has provided few insights into the values and performance norms of Generation Y in the workplace. Our exploratory qualitative study treats work values preferences as inferred performance behavior in an attempt to shed light on the Generation Y performance relationship in the Australian Public Service (APS). Adopting a person–organization values fit framework, our study draws attention to how Generation Y employees (N = 60) and older managers (N = 20) shape key aspects of performance around their own different values judgments of APS operational procedures (i.e. ‘unnecessary bureaucracy’ vs. ‘legitimate governance’) and merit-based promotion (i.e. ‘it’s just wasting people’s time’ vs. ‘younger employees expect too much, too soon’). Findings suggest areas of work supportive of an efficient Generation Y performance relationship (i.e. Generation Ys’ work ethic), as well as inefficient areas of performance where managers and Generation Y hold different work values preferences (i.e. unrealistic expectations; underperforming colleagues; decision-making processes). Performance implications associated with how managers may respond to the work values preferences of Generation Y are discussed.     

Managing functional flexibility in a passenger transport firm

In this study we focus on how a Dutch passenger transport firm managed the functional flexibility of employees when it had to become more flexible due to increased competition. Specifically, we examine the relationships between the personal characteristics of employees and their work perceptions on the one hand and their functional flexibility on the other. Our results show that functional flexibility consists of two dimensions, willingness and ability to be flexible, and that work perceptions are more closely related to the willingness, rather than the ability, to be flexible. Willingness to be flexible was positively related to need for growth, tendency for innovation, organisational support and negatively to task formalisation. Ability to be flexible was related to need for growth, tendency for innovation and general self‐efficacy. The implications for management are then discussed.     

Trainers' dilemma of choosing between training and promotion

In the work environment, older employees play a significant role in training younger employees. Why do older employees provide this training when they are rivals competing for promotion? Is it because the more training they provide to trainees, the less likely those trainers will be promoted? We show that the fostering of generalists rather than specialists can soften the trainers' dilemma of choosing between training and promotion because the amount of training provided by a trainer decreases that trainer's promotion probability to a greater extent when training specialists than when training generalists. Hence, even if the productivity of the generalist is lower than that of the specialist, the generalist scheme can still lead to a higher level of training and improve a firm's profit and social welfare.     

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.     

Collegiality under pressure: the effects of family demands and flexible work arrangements in the Netherlands

Collegial relationships at work have become more important now that organizations increasingly use team-based work processes. Collegiality is also facing new challenges, however: more employees are meeting heavy demands beyond the workplace and making more frequent use of flexible work arrangements. This study seeks to explain the effect of employees’ family demands on collegiality and evaluates whether the use of flexible work arrangements improves or impedes collegial behaviour. Moreover, we aim to investigate collegial behaviour as an exchange process between co-workers, and therefore also take family demands and the use of flexible work arrangements by co-workers into account as predictors of employee collegiality. Based on a sample of 1114 employees from 30 organizations, the results show that when used by the employee and co-workers, flexitime decreases collegiality. Collegiality is decreased when the employee has young children, but increased when co-workers have older children. The implications of these findings for HR practices are discussed.     

The impact of Investors in People: a case study of a hospital trust

This article reports on case study research conducted in a hospital trust and explores the impact that the Investors in People award had on employees. Investors in People is widely seen as the principal mechanism for increasing workforce skills within a voluntarist system as well as supporting ‘good’ employment policies. Yet in this case study, as elsewhere, most of the ‘soft’ HR initiatives had existed prior to accreditation and the internal marketing of corporate value statements was met with both amnesia and cynicism. More worrying, training activity was focused on ‘business need’, which was defined in the narrowest sense, with the result that some employees had fewer opportunities for individual development. Motivation and commitment levels were high, staff were enthusiastic about their work and many actively engaged in training and development. But this owed little to Investors in People, and its impact here raises questions about its influence on skill levels more broadly.     

Stress and turnover intents in international organizations: social support and work–life balance as resources

Abstract

This study investigates whether work opportunities have an impact on stress and the related turnover intentions of employees working in intergovernmental international organizations (IOs). It contextualizes the job resources and demands model within IOs’ specific work conditions. The empirical test is based on original data from a survey administered in four major organizations of the United Nations system. Results demonstrate that social work opportunities and work–life balance are organizational levers reducing stress and willingness to quit for employees who are facing red tape or the stresses of being an expatriate. In this context, the relationships between these work opportunities and turnover intention are partially mediated by stress. Contextualized HR management propositions are made to help organizations coping with these management challenges.     

Benefits and Disadvantages of Individuals’ Multiple Team Membership: The Moderating Role of Organizational Tenure

Many employees in today’s organizations are involved in more than one team at the same time. Building on the challenge-hindrance stressor framework, this study investigates potential benefits and disadvantages of such multiple team membership (MTM) for individual employees. Furthermore, we extend this framework with insights from the job demands-resources model to propose that, depending on an employee’s organizational tenure, individual MTM will differentially shape his or her perceptions of work challenge and role ambiguity, subsequently influencing the employee’s job performance and absenteeism. We tested our conceptual model using time-lagged multi-source data from a large organization of applied research (N = 1211). Our results demonstrate that, for employees with relatively low organizational tenure, MTM was negatively associated with perceived work challenge and positively associated with perceived role ambiguity, which in turn associated with lower job performance and higher absenteeism. For employees with higher organizational tenure, by contrast, MTM associated positively with their work challenge perceptions and subsequent performance outcomes, whereas MTM was unrelated to perceived role ambiguity as well as absenteeism. These findings identify relevant psychological mechanisms and a key contingency factor that explain when and why MTM may have positive or negative individual-level consequences.     

Decision support systems for human resource training and development

Human resource training and development methods and techniques have different qualitative characteristics that require a multicriteria and multiscenario framework for their assessment. This study incorporates the AHP to assess the nine most important human resource training and development methods and techniques, under five criteria and six scenarios. The methods considered are ‘on-the-job training’, ‘mentorship’, ‘apprenticeship’, ‘vestibule training/simulators’, ‘web-based learning’, ‘instructor-led classroom training’, ‘programmed self-instruction’, ‘case studies/role playing’ and ‘systematic job rotations and transfers’. ‘Vestibule training/simulators’ and ‘mentorship’ have the average best scores, and they should be among the first priorities especially when efficiency, the motivation of employees and minimization of the duration of training time are the most important factors. ‘Web-based learning’ is ideal for minimizing training costs or when ease of application is the first priority. ‘On-the-job training’ is a very good alternative when the cost of training should be reduced while the motivation of employees should be increased.     

The relationship between perceived training and development and employee retention: the mediating role of work attitudes

Abstract

This paper considers how utilizing a model of job-related affect can be used to explain the processes through which perceived training and development influence employee retention. We applied Russell’s model of core affect to categorize four different forms of work attitude, and positioned these as mediators of the relationship between perceived training and development and intention to stay. Using data from 1191 employees across seven organizations, multilevel analyses found that job satisfaction, employee engagement and change-related anxiety were significantly associated with intention to stay, and fully mediated the relationship between perceived training and development and intention to stay. Contrary to our hypotheses, emotional exhaustion was not significantly associated with intention to stay nor acted as a mediator when the other attitudes were included. These findings show the usefulness of Russell’s model of core affect in explaining the link between training and development and employee retention. Moreover, the findings collectively suggest that studies examining employee retention should include a wider range of work attitudes that highlight pleasant forms of affect.     

Evaluating the employability paradox: When does organizational investment in human capital pay off?

Abstract

The paper explores the notion of the employability paradox which notes that while organizations investing in the career and competency development of their workforce can benefit from higher performance, they also risk losing more employable staff to competitors. Building on contributions from social exchange theory and signalling theory, we develop a model exploring the circumstances under which investment in career development benefits employees and organizations. We test our model in a longitudinal study following graduates entering the labour market. Our results show that when organizations signal that they care about employees by investing in their career development and individuals are receptive to such signals and proactively seek to manage their careers, investment in career development has a positive impact on organizational commitment and intention to stay with one’s employer. Our findings indicate that the idea of the employability paradox is simplistic and lacks theoretical and empirical support.     

How societal culture influences friction in the employee–organization relationship

The proposed model unpacks societal culture's multi-level influence on friction in the employee–organization relationship (EOR), resolving two knowledge gaps: overreliance in EOR research on employee-centered concepts, ignoring the influence of the organization; and minimal theoretical analysis on why societal culture contributes to relational problems between the organization and its employees (Coyle-Shapiro & Shore, 2007). We argue that societal culture influences friction in employee–organization relationships through the individual-level mediator of work motives and the organization-level mediator of EOR strategy. Although EOR friction commonly occurs when employee work motives from one culture interact with EOR strategies from another, studies rarely examine the mechanisms that explain these relational challenges. Drawing on individualism, in-group collectivism and institutional collectivism, we explain two primary causes for EOR friction in each mismatched cultural condition, and offer potential solutions for reducing friction stemming from each source. Our arguments suggest that organizations who effectively adapt their HRM practices to the societal culture in which they operate will be less likely to experience EOR friction than organizations who adopt a more ‘one size fits all’ relational EOR strategy.     

Temporary contracts and employee effort

Temporary contracts provide employers with a tool to screen potential new employees and have been shown to provide “stepping stones” into permanent employment for workers. For both reasons, workers on temporary contracts have an incentive to provide more effort than permanent employees. Using indicators for unpaid overtime work and absences taken from the Swiss Labor Force Survey (SLFS), we present evidence that temporary workers indeed provide higher effort than permanent employees: Their probability of working unpaid overtime exceeds that of permanently employed workers by 60%. We show the heterogeneity of this effect across different types of temporary contracts, investigate differences between men and women, and discuss the relevance of endogenous selection into temporary employment.     

The Social‐Cognitive Underpinnings of Employees’ Ambidextrous Behaviour and the Supportive Role of Group Managers’ Leadership

Although research on organizational ambidexterity has exploded in the past several years, the determinants of individual‐level ambidexterity have received little scholarly attention. This is surprising given that management scholars increasingly highlight the benefits of combining explorative and exploitative activities in individual employees’ work roles. Using data collected by a two‐wave survey of 638 employees nested in 173 groups across 34 organizations, our research demonstrates that both psychological factors and leadership predict employees’ ambidextrous behaviour. Our results demonstrate that general self‐efficacy positively predicts ambidextrous behaviour through learning orientation. In addition, we show that employees exhibit higher ambidexterity when their group managers demonstrate paradoxical leadership; that is, a leadership style that couples strong managerial support with high performance expectations. Paradoxical leadership also moderates the relationship between learning orientation and individual ambidexterity such that employees’ ambidextrous behaviour is highest when paradoxical leadership and employee learning orientation are simultaneously at high levels.     

Information but not consultation: exploring employee involvement in SMEs

Most research on employee involvement (EI) has focused on large or ‘mainstream’ organizations. By adopting those schemes which ‘appear’ to work well in larger organizations, smaller firms assume there will be enhanced employee commitment beyond formal contractual requirements. The main question in this paper is whether EI schemes designed by management will suffice under the 2004 Information and Consultation of Employees (ICE) Regulations. The paper focuses on SMEs which tend to favour informal and direct EI, and it remains unclear how these methods will be played out under the new regulatory environment. Evidence from four case studies is presented here and it suggests that the ICE Regulations impose new challenges for smaller firms given their tendency to provide information rather than consult with employees. It also appears organizational factors, workplace relations history and the way processes are implemented at enterprise level may be far more important than size itself.     

High and low performers' intention to leave: examining the relationship with motivation and commitment

By studying intrinsic sources of motivation, the current research extends theory development in the motivation and commitment field to examine when employees of varying performance intend to leave their organisation. Based upon a nation-wide study of retail banking employees in one of the largest Australian financial institutions (N = 784), we found that for high-performing employees with either a promotion focus or affective commitment, there was significantly reduced intention to leave. The relationship between affective commitment and intention to leave was not significantly strengthened by increases in promotion focus. Implications for development of theories focused on intrinsic sources of motivation and commitment as well as the practical implications for talent retention are discussed.