Individual pay for performance and commitment HR practices in South Korea

Despite the rapid growth of the use of pay-for-individual-performance systems in collectivistic societies including Korea, there are very few empirical studies regarding their effects on employee attitudes. With a data-set of 37 companies and 959 employees from South Korea, this research examines whether the new compensation system influences Korean employees’ organizational commitment and work effort and how these effects are moderated by HR practices. Using Hierarchical Linear Modeling, we found that pay-for-individual performance and commitment to HR practices did not have effects on organizational commitment, but a positive interaction effect was found. Regarding work effort, positive effects of pay-for-individual performance and the commitment HR were found as well as a significant interaction effect between them. Implications of the results are included.     

Learning to perform? A comparison of learning practices and organizational performance in profit‐ and non‐profit‐making sectors in the UK

To date, much of the research on employee development activities and organizational performance has been conducted in private sector organizations, with the largely untested assumption that the same findings will apply to other sectors. This paper addresses the deficit by describing a study comparing differences in the use of employee learning practices between profit‐making and non‐profit‐making organizations, and examining the relationship between these learning practices and multiple dimensions of organizational performance. The study data was gathered through conducting structured telephone interviews with senior training and development managers in 368 UK organizations from a range of sectors. It was found that non‐profit‐making organizations had greater engagement in individual employee learning practices than profit‐making organizations, but no differences were found in terms of team learning practices or engagement in strategic needs analysis and evaluation activities. The analyses also indicated that individual learning practices showed a stronger relationship with performance in the non‐profit‐making organizations, whereas team learning practices were more significant for the profit‐making companies. The learning practices collectively accounted for greater variance in organizational performance in the non‐profit‐making organizations. The study implies that the functional aims of organizations need to be taken into account when examining the learning practice–organizational performance relationship.     

Do Entrepreneurial SMEs Perform Better Because They are More Responsible?

Many scholars have investigated the direct impact of entrepreneurial orientation (EO) on performance, but this direct association seems both spurious and ambiguous because many parameters may have an indirect influence on this relationship. The present study thus considers sustainable practices—environmental practices, social practices in the workplace (SPW), and social practices in the community (SPC)—as three probable mediators in the relationship between EO and performance, which is considered in terms of its financial and non-financial dimensions. We seek to show to what extent small- and medium-sized enterprises’ (SMEs) sustainable practices are useful assets, which are supported by EO, to improve performance. Using a structural equation modeling approach, data collected from 406 French SMEs were tested against the model. Our findings reveal that EO has a positive impact on the implementation of sustainable practices and that SPW partially mediate the link between EO and performance. Taken together, these findings suggest that EO plays a role in indirectly promoting performance by enhancing certain human resource management practices.     

Big data? Big deal: Searching for big data’s performance effects in HR

Big data continues to gather increasing interest in the business press as well as within the management literature. While this interest has spilled over into the realm of human resources (HR) management, solid evidence of its positive performance impacts is lacking. I explore three possibilities for this lack of evidence: (1) HR possesses big data but largely lacks the ability to use it; (2) HR does not actually possess big data; and (3) big data is generating value for HR and positively affects organizational performance, but the winners in the race to utilize big data in HR are not publicizing their successes. Following this, I discuss current forms of big data implementation, highlighting an evolutionary progression of implementations in various settings and emphasizing the importance of balancing deductive with inductive analytical approaches. Finally, I discuss conditions under which big data may hold greater value for the HR function, and I suggest ways managers and organizations can make the most of big data.     

Human resource involvement in developing intellectual capital

This study examined the extent of a strategic approach to human resource (HR) management in small and medium professional service firms, and if it is used to develop intellectual capital (IC). Data were collected from 165 Australian professional service firms. Path analysis showed that HR involvement and the adoption of a collective set of strategic HR practices contributed positively to IC levels (particularly human, social and organizational capital). IC acts as a mediator between HR practices and firm performance. HR practices alone did not increase the performance of the firms studied. The findings are unique in the context of studies on small- and medium-sized professional service firms in that a holistic approach to assessing both HR practices and all IC components was taken rather than examining the individual construct relationships. In the context studied, HR influence is critical to increasing IC.     

Using the “best‐fit” approach to investigate the effects of politico‐economic and social barriers on SMEs' internationalization in an emerging country context: Implications and future directions

The way this study has used the “best‐fit” approach has facilitated the investigation of how three hypothesized constructs of political, economic, and social barriers can deepen our knowledge of their impacts on small and medium‐sized enterprises (SMEs)' internationalization within a small developing country context. Based on a quantitative analysis of the three hypothesized barriers, we used the “best‐fit” approach to measure the extent to which the SMEs' internal variables like people, products, services, and practices might best fit some of the people and non‐people factors external to the businesses. The application of the “best‐fit” approach onto the three hypotheses—politics (H1), social (H2), economics (H3), helped us in explaining the major social and politico‐economic barriers faced by a developing economy' (Bangladeshi) SMEs' internationalization despite previous literatures' emphasis on the impacts of globalization, market drivers or their oversight. Based on the findings, we point to future research trajectory. This study used primary survey data from 212 Bangladeshi SMEs and successfully validated an HR model by using Smart PLS3 software. The results from the hypotheses were used to produce the HR model to help SMEs identify the significance of people and economic factors and propose these aspects for inclusion in the “best‐fit” approach, SME, and globalization research.     

Reducing environmental uncertainty: How high performance work systems moderate the resource dependence‐firm performance relationship

Firm performance is a major concern for all organizations and involves a multitude of antecedents. Reducing environmental uncertainty and dependency through the use of strategic actions in the resource dependency theory (RDT) framework and enhancing work practices through high performance work systems (HPWS) lead to higher levels of firm performance. We reveal the interconnectivity between RDT and HPWS and develop propositions as to how components of HPWS positively moderate the relationship between firm performance and the environmental uncertainty‐reducing strategic actions proposed by RDT such as mergers and acquisitions, joint ventures, boards of directors, political action, and executive succession. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Leadership integrity and the role of human resource management in Greece: Gatekeeper or bystander?

With ethical misconduct commonplace in organizations and with the touting of competitive advantage associated with ethical organizational practices, considerable attention has turned to leadership integrity. Leaders are uniquely situated to influence the behavior of organizational members, and integrity has been shown to be instrumental in supporting ethical behavior and decision‐making. This article explores the role and influence of human resources management (HRM) in supporting leadership integrity among a group of large organizations operating in crisis‐stricken Greece. Although the institutional and cultural context of Greece appears to exacerbate role tensions confronted by human resources (HR) professionals, its forces are not deterministic; findings from in‐depth interviews with 12 HR directors indicate that the HR potential to secure ethical influence at the top level is primarily contingent on the nature of the organization's culture. Cultures of integrity enable HR executives to influence integrity and ethical behavior in top management teams (TMTs). In contrast, compliance‐based organizational cultures appear to breed a fickle HR presence: fostering integrity and ethical behavior for the middle and lower levels of an organization, while turning a blind eye to integrity violations at the top.     

DHL Bangladesh: Managing headquarters‐subsidiary relations. Comment on DHL Bangladesh: Managing headquarters‐subsidiary relations

This case revolves around Nurul Rahman, a DHL Bangladesh (DHLB) manager who must recommend which of the two human resource information systems (HRISs) DHLB should adopt to alleviate the escalating workload on its human resources (HR) department. The choice between these systems is difficult: the HRIS favored by regional headquarters is significantly more expensive and likely unsuited to DHLB's unique needs, whereas the HRIS favored by DHLB—although likely effective —seems to be incapable of meeting headquarters' strong preference for streamlining human resource systems across disparate Asian subsidiaries. Rahman must carefully balance conflicting stakeholder interests and do so against the backdrop of a politically powerful headquarters that can “make or break” managerial careers. © 2008 Wiley Periodicals, Inc.     

Examining cross-cultural compatibility of high performance work practices

This paper examines the relationship between high performance work practices (HPWPs) and cross-cultural dimensions to debate the effectiveness of HPWPs in cross-cultural settings. Using systematic review, 140 articles were identified on HPWPs and cross-cultural human resource management. Synthesizing the two literature areas results in four key findings. Many HR practices labelled as HPWPs are affected by national cultural dimensions. Also, several practices labelled as HPWPs have not been a part of the cross-cultural HR literature, and that limited studies in both area focus on the impact of cultural compatibility on outcomes. Finally, a few selected cultural dimensions have dominated the cross-cultural HR literature. Thus, more work is needed to: understand the role of national culture on effectiveness of HPWPs; increase coverage of HPWPs in the cross-cultural HR literature; understand the impact of cultural compatibility of HR practices and HPWPs on outcomes; and, incorporate additional cultural dimensions in future work.     

Designing,developing, and deploying artificial intelligence systems: Lessons from and for the public sector

Artificial intelligence applications in cognitive computing systems can be found in organizations across every market, including chatbots that help customers navigate websites, predictive analytics systems used for fraud detection, and augmented decision-support systems for knowledge workers. In this article, we share reflections and insights from our experience with AI projects in the public sector that can add value to any organization. We organized our findings into four thematic domains—(1) data, (2) technology, (3) organizational, and (4) environmental—and examine them relative to the phases of AI. We conclude with best practices for capturing value with cognitive computing systems.     

Subjective Performance Evaluation and Gender Discrimination

Gender discrimination continues to be a problem in organizations. It is therefore important that organizations use performance evaluation methods that ensure equal opportunities for men and women. This article reports the results of an experiment to investigate whether and, if so, how the gender of the rater and that of the ratee moderate the relationship between the level of subjectivity in performance appraisals and organizational attractiveness. Participants in the experiment were 313 undergraduate students. We predicted, and indeed established, that as the probability increases that employee performance is evaluated by a female manager, women expect more positive outcomes of subjective, but not objective evaluation processes. Our data did not support our expectation that as the probability of being evaluated by a female manager increases, men expect less positive outcomes of subjective evaluation processes. The findings of this study contribute to our understanding of why women are over-represented in jobs with objective formula-based reward systems, such as piece-rate systems. They are also of interest to organizations that are looking for more ethical human resource management practices.     

A High‐Growth Firm Contingency Test of the Formalization‐Performance Relationship

The effect of formalization in high‐growth firms' performance is still unclear. We propose that formal commitment‐based human resource practices contribute positively to the financial performance of established high‐growth firms but have little effect on emergent ones. Using a sample of 101 Portuguese high‐growth firms (2006–2009 period), we tested the effect of formal HR practices during the high‐growth period in their financial results two years later (2011). Our results suggest that adopting a formal performance appraisal and a formal R&D function contributed positively for the performance of only established firms, while adopting a formal training activity negatively affected the performance of only emergent firms.     

Influence of Personal Values and Value Congruence on Unethical Practices and Work Behavior

The study examines whether (a) personal and organizational values differ in private and public sectors, and (b) personal values and value congruence – the extent of matching between personal and organizational values – influence unethical practices and work behavior. Three hundred and forty middle-level managers from four manufacturing organizations rated 22 values as guiding principles to them to identify their personal values. In order to index organizational values, 56 top-level managers of the same organizations rated how important such values were to the organization. Results revealed that the important shared values among managers of private and public sectors are product quality and customer service. Congruence between personal and organizational values is found to be higher in the private sector compared to the public sector. Middle-level managers in the private sector shared the organizational values more than the managers in the public sector. Irrespective of the type of organizations and age of managers, personal values more potently and consistently decreased unethical practices and increased work behavior compared to value congruence. Hiring managers emphasizing personal values can demote unethical practices and promote work behavior.     

Women's Perceived Empowerment in Entrepreneurial Efforts: The Role of Bricolage and Psychological Capital

Women's entrepreneurial empowerment—perceived competence, self‐determination, and ability in managing a firm as an entrepreneur—is important to women's entrepreneurship in developing countries. Drawing on a sample of 369 women entrepreneurs from small and medium enterprises (SMEs) located in Gujarat, a western state in India, we find that women's entrepreneurial empowerment is positively associated with firm revenues. Gains from empowerment could be further enhanced for women entrepreneurs managing resource constraints—through bricolage—and meeting the challenges of self‐employment—through psychological capital. The present study contributes to literature on women's entrepreneurial empowerment and SME performance. Women's empowerment and the bolstering effects of bricolage and psychological capital could help government agencies and non‐government organizations devise programs and policies to improve the performance of women‐owned SMEs in developing countries.     

The Interplay between National Cultural Dimensions and Components of a Performance Management System: A Qualitative Study from Pakistan

This paper examines the interplay between national cultural dimensions and the design, enactment, and experience of a Western model of a performance management system (PMS) in a non‐Western setting. Data from four organizations in Pakistan indicate that domestic organizations are designing their PMSs in accordance with Western practices. Additionally, it reveals that during enactment and experience, the cultural values of low assertiveness, high in‐group collectivism, and high power distance interact, although to varying degrees, with continuous feedback, appraisal meetings, final ratings, outcomes, and objective setting. Thus, while convergence in design reflects the far‐reaching influence of globalization, divergence is attributable to cultural values which act as a deep‐rooted force during enactment.     

Nurturing the Whole Person: The Ethics of Workplace Spirituality in a Society of Organizations

In a world which can be increasingly described as a “society of organizations,” it is incumbent upon organizational researchers to account for the role of organizations in determining the well-being of societies and the individuals that comprise them. Workplace spirituality is a young area of inquiry with potentially strong relevance to the well-being of individuals, organizations, and societies. Previous literature has not examined ethical dilemmas related to workplace spirituality that organizations might expect based upon the co-existence of multiple ethical work climates, nor has previous literature accounted for the relevance of the cosmopolitan (external, societal) source of moral reasoning in the ethical treatment of workplace spirituality. The purpose of this paper is to address these gaps by articulating two such ethical dilemmas related to workplace spirituality: the “quiet desperation” dilemma and the instrumentality dilemma. Moreover, I propose two theoretical contexts that foster “both-and” rather than “either-or” thinking, thereby mitigating (moderating) the relationships between climate combinations and conflictual aspects of the ethical dilemmas. For the “quiet desperation” dilemma, I propose a person–organization fit perspective to emphasize diversity of individual preferences instead of a managerially prescribed uniformity of spirituality. For the instrumentality dilemma, I propose a multiparadigm approach to workplace spirituality research to avoid the privileging of one research interest over another (e.g., instrumentality, individual fulfillment, societal good). I conclude with suggestions for future research.     

Perceived common myths and unethical practices among Direct Marketing professionals

Two arcas of continuing interest to direct marketing professionals are the perceived myths and unethical practices in the field. Documentation of specific cases and more abstract discussion of these two points of interest frequently appear in the direct marketing literature (e.g. Gitlitz and Barton, 1983; Lewis, 1982; Pierce, 1985). Indeed, the Direct Marketing Association (DMA) has promulgated specific guidelines (DMA, 1985) for ethical business practices within the industry. Up to this point, however, there has been no attempt at a systematic evaluation of the perceptions of professionals in the field. Such an evaluation of these two areas of practice would appear to beg the following questions: (1) What are the major common myths which abound in direct marketing as perceived by professionals who come into direct contact with the operations of direct marketing organizations? (2) Which of these so-called myths are most requently mentioned? (3) What are the most commonly perceived unethical practices? (4) Which of these unethical practices are most frequently mentioned by direct marketing professionals? (5) To what extent do these perceived unethical practices coincide with the industry's own guidelines?     

‘Best Practices’ in Regional Trading Agreements: An Application to Asia

Regionalism in Asia, particularly in the form of free‐trade areas (FTAs), is a recent trend that is becoming increasingly important. This has been disturbing to many, given the significance of trade and investment in Asian economic growth and development and the region's key role in global commerce. In light of this trend, the goal of this paper is to develop a blueprint, or a set of 10 ‘best practices’, that can be used as a guide to FTAs in order to ensure that they approximate first‐best outcomes to the greatest extent possible. Next, the paper applies this framework to the existing FTAs between Asian countries and their regional and extra‐regional partners. The results suggest that the more advanced regional accords generally receive high grades, with the notable exception of rules of origin, which tend to be even more problematic in the context of accords in which an OECD country is a party.