Configurations of human resource management practices: a model and test of internal fit

This study examined human resource management (HRM) configurations. A typology consisting of four bundles of aligned HRM practices (labelled the bureaucratic, market, professional and flexibility bundle) linked to organizational structures was developed. Support for the proposed ideal-typical bundles was found in an assessment by a panel of experts. Next, the distance between the ideal types and actual bundles of HR practices was assessed for 175 organizations. For each, senior HR managers' ratings of HRM practices and CEO ratings of outcomes were obtained. Support was found for two of the four proposed types and about one-third of the firms showed some fit with one of these two types. The ‘fit in general hypothesis’ (i.e. the closer an observed HR bundle resembles any of the ideal types, the higher organizational performance) did not receive support. However, fit with a specific type of bundle (the professional bundle) did relate positively to outcomes. Organizations with observed HRM practices fitting the professional bundle score significantly higher on measures of firm performance, employees' going beyond contract, and firm innovativeness.     

Implicit human resource management theory: a potential threat to the internal validity of human resource practice measures

Since the publication of Huselid's (1995) paper examining the relationship between HR practices and firm performance, there has been an explosion of published papers examining the empirical relationship between HR practices and various measures of firm performance. This study examines the possibility that informants typically providing data about organizational HR practices may be biased by an implicit theory of human resource management. Our findings suggest the responses from subjects typically providing data about HR practices may be biased in their reporting by the performance of the organization. The generalizability of these results is considered and implications for future studies of the HR-firm performance relationship reviewed.     

Performance implications for the relationships among top management leadership,organizational culture,and appraisal practice: testing two theory-based models of organizational learning theory in Japan

The purpose of this study was to examine the interrelationships among top management leadership, organizational culture and human resource (HR) practices, and their associative effects on organizational performance. Based on the theory of organizational learning, we developed and tested two different causal models: (1) a feed-forward learning flow model in which supportive leadership by top management would create a community culture and HR practices within organizations; and (2) a feedback learning flow model in which a community culture would support the practice of supportive leadership by top management and HR practices within a firm. Our structural equation modelling (SEM) results for a sample of 225 Japanese small and medium-sized enterprises (SMEs) in Japan supported the second model, in which the dominance of a community culture within the firm is an antecedent of top management's supportive leadership, which in turn necessitates a performance-based appraisal practice and eventually leads to better organizational performance in terms of objective indicators of turnover and absenteeism rates and workforce productivity. The findings are used to discuss the role of top management leadership in a particular organizational culture from the organizational learning perspective. Limitations and directions for future research are also discussed.     

Strategic human resource management,firm performance,and employee relations climate in China

We examined strategic human resource management (SHRM) and human resource practices in the People's Republic of China to assess the impact of these practices on firm performance and the employee relations climate. We also tested whether firm ownership moderates the above relationships. Empirical results from a sample of Chinese firms from various industries and regions showed that the levels of adoption of SHRM and HR practices were lower in state‐owned enterprises (SOEs) than in foreign‐invested enterprises (FIEs) and privately owned enterprises (POEs). Both SHRM and HR practices were found to have direct and positive effects on financial performance, operational performance, and the employee relations climate. However, the moderating effect of ownership type was significant for financial performance only. © 2008 Wiley Periodicals, Inc.     

Using theory on authentic leadership to build a strong human resource management system

Prior work has questioned whether human resource management (HRM) lives up to the organizational benefits it espouses. The intentions underlying human resource (HR) practices often differ from how they are implemented by line managers or how they are ultimately perceived by followers, thus undermining the strength of the HR system in influencing organizational outcomes and with them the overall reputation of HRM. We argue that line managers, specifically those who display authentic leadership behaviors, can strengthen an HR system (i.e., aligning intended, actual, and perceived HR policies and practices) by implementing HR practices in a way that they are perceived as distinct, consistent, and reflecting consensus. Authentic leadership theory departs from more traditional, top-down fit perspectives in strategic HRM to consider the dynamic way in which individuals within an organizational context co-create felt and perceived authenticity in interaction with others. In other words, by providing a more dynamic approach to creating alignment in HRM, authentic leadership helps HRM attain more authenticity and credibility in the organization.     

Development or maintenance? Dual-oriented human resource system,employee achievement motivation,and work well-being

Drawing on the person–organization fit theory, this study elaborates a dual-oriented human resource (HR) system and explores when and how two HR bundles (development vs. maintenance) influence work well-being. The results of the confirmatory factor analysis with a sample of 1,946 supervisors from a Chinese high-tech firm show that the dual-oriented HR model fits the data better than a holistic HR system. In another study with a multilevel sample of 64 corporate branches and 434 employees, the findings confirm the proposed joint effect of the dual-oriented HR system and achievement motivation on well-being. Specifically, development-oriented HR practices are more positively related to work well-being only when individual achievement motivation is high; by contrast, maintenance-oriented HR practices are more positively related to work well-being only when individual achievement motivation is low. Work meaning mediates these effects. These findings provide guidance on the effective design of HR practices.     

Components of CEO Transformational Leadership and Corporate Social Responsibility*

abstract We use transformational leadership theory to explore the role of CEOs in determining the extent to which their firms engage in corporate social responsibility (CSR). We test this theory using data from 56 US and Canadian firms. CEO intellectual stimulation (but not CEO charismatic leadership) is found to be significantly associated with the propensity of the firm to engage in ‘strategic’ CSR, or those CSR activities that are most likely to be related to the firm's corporate and business‐level strategies. Thus, studies that ignore the role of leadership in CSR may yield imprecise conclusions regarding the antecedents and consequences of these activities. We also critique transformational leadership theory, in terms of its overemphasis on charismatic forms of leadership. This leads to a reconceptualization of transformational leadership, which emphasizes the intellectual stimulation component in the context of CSR.     

Managing human resource for competitive advantage: a study of companies in Singapore

We see two major streams of research in the strategic human resource management literature: (1) the link between strategy and human resource (HR) practices and (2) the link between HR practices and firm performance. There is a plethora of theoretical perspectives on the first link. Unfortunately, there is not much empirical work. The second link has seen a spate of empirical studies. However, most of them embrace the universal perspective and the role of strategy as a contingency has not been adequately addressed. This could potentially result in the underestimation of the impact of HR practices on organizational performance. This study addressed the above two weaknesses in previous research in the strategic HR management field. Using a sample of about 200 of the largest companies representing all major industries in Singapore, we found that organizational strategy affects HR practices. Moreover, findings suggest that the strategy-HR interaction accounts for more variation in firm performance than the main effect of HR. Implications of the findings are discussed.     

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.     

Quality and cost? The evolution of Walmart's business strategy and human resource policies and practices in China and their impact (1996–2017)

This study responds to calls for more in‐depth and qualitative studies, the return to a focus on external factors, and the inclusion of business strategy and industrial relations in human resource management (HRM) research, as well as more research in the retail sector in the Chinese context. We examine the coevolution of the business strategy and HR strategy of Walmart (China) in the last two decades and identify tensions in the context of intensifying competition in the Chinese retail market. We highlight the interactive effect of business and HR strategies through a historical lens. Our study reveals a shift from the original employee‐oriented win–win strategy through rent sharing between the firm and the employees to a win–lose strategy through the introduction of more cost conscious HR policies and practices. Findings of our study challenge the conventional wisdom that firms adopt either the cost or quality strategy and, along with it, the suggestion of matching the quality strategy with employee‐oriented HR policies and practices, and cost leadership with a transactional approach to HRM. We argue a cost and quality business strategy may be adopted, which requires the support of employee‐oriented, rather than cost‐oriented, HR policies and practices.     

Strategic human resource management at Praxair

This article describes the human resource management system in place at Praxair. Key emphases of Praxair's HRM infrastructure include (1) competency development and performance‐management processes and (2) team‐based performance systems, which include four levels of measurement: company‐wide, business‐unit, cross‐functional teams within business units, and special‐initiative project teams. Key challenges for the future include (1) prioritization of choices in support of the firm's global growth initiatives, (2) employee development and new talent acquisition, (3) designing more effective methods to anticipate business needs and provide strong, proactive leadership, (4) accelerating leadership development and influencing adequate investment in education and development programs, and (5) designing and implementing effective methods to acquire new talent to support business strategies. © 1999 John Wiley & Sons, Inc.     

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.     

Executive Pay Matters: Looking Beyond the CEO to Explore Implications of Pay Disparity on Non‐CEO Executive Turnover and Firm Performance

Using a longitudinal data set covering a span of 10 years, we investigate the impact of vertical and horizontal pay disparity on non‐CEO executive turnover and subsequent firm performance. Hypothesizing differential responses to pay disparity depending on a non‐CEO executive's responsibilities, we first categorize non‐CEO executives based on their job demands and their role in the organization (e.g., oversight, divisional). We then explore how pay disparity influences the relationship between executive category and turnover, and how the level of pay disparity impacts the relationship between turnover and firm performance. We find that executive category significantly impacts the likelihood of turnover, and also influences firm performance. Theoretical and practical implications are discussed. © 2015 Wiley Periodicals, Inc.     

Fits in strategic human resource management and methodological challenge: empirical evidence of influence of empowerment and compensation practices on human resource performance in Canadian firms

This study attempts to answer three questions: 1) How does the methodological approach used to measure fit among practices influence the results obtained? 2) To what extent do bundles of empowerment and compensation practices individually influence human resource outcomes? and 3) Does the fit between these bundles of practices increase the prediction of the level of discretionary effort, turnover and productivity? Following a two-wave survey strategy, statistical analyses performed on 128 Canadian companies suggest that the statistical methods used to measure fit are not interchangeable. The findings reveal that the use of an extensive relational empowerment strategy is significantly and negatively related to voluntary turnover when accompanied by a compensation program that rewards performance. In contrast, a compensation strategy that supports good working conditions or the use of financial incentives seems sufficient to influence human resources performance. Nonetheless, the results militate in favour of adopting a configurational approach with empirical deviation profile to fit to better understand the complexity of the equifinality effect of HR strategies. Lastly, the polynomial regression results question the linearity assumption of the relationship between empowerment, working conditions and productivity.     

The relationship between human resource management practices,business strategy and firm performance: evidence from steel industry in Taiwan

The primary objective of this study is to investigate the relationship between human resource management (HRM) practices, business strategy and firm performance. We examined the following HRM practices: training and development; teamwork; compensation/incentives; HR planning; performance appraisal; and employment security. We surveyed 236 managers working at steel firms in Taiwan to explore their perceptions on the impact of HRM practices and business strategy on firm performance. The results of this study are summarized as follows: (1) HRM practices will be positively related to firm performance; (2) there is a close linkage between HRM practices and business strategy; (3) business strategies will be positively related to firm performance; (4) integrating HRM practices with business strategies will be positively related to firm performance.     

Environmental dynamism,human resource flexibility,and firm performance: analysis of a multi-level causal model

While strategic HRM scholars have conceptualized HR flexibility as an important source of sustainable superior firm performance in dynamic environments, the process through which HR flexibility creates value for the firm has not been empirically investigated. Based on a study of 98 manufacturing and 103 service firms from a wide array of industries in India, this paper attempts to illuminate the black box of causal linkages between environmental dynamism, flexibility of human assets, and firm level human-, operational-, and financial-outcomes by developing and testing a multi-level causal model. Evidence indicates that HR flexibility mediates the influence of environmental dynamism on firm performance and that irrespective of the nature of the industry and the degree of environmental turbulence, superior firm performance ensues when HR flexibility as actually possessed by the firm matches the environmental demands for such flexibility as perceived by the firm managers. The results also support the notion of HR value chain that postulates that HR system has direct impact on firm-level HR outcomes which are most proximal, and its effects on increasingly more distal operational- and financial-outcomes are mediated by HR outcomes. The findings of the study suggest that HR practices as a system have both direct and indirect (mediated by behavioral flexibility) effects on firm-level HR outcomes. Existence of significant direct effects signifies that HR practices play an important role as a structural mechanism in achieving superior firm performance.     

High‐commitment HR practices,employee effort,and firm performance: Investigating the effects of HR practices across employee groups within professional services firms

In this study, the authors examine the relationship between high‐commitment HR practices and firm performance in professional services firms through the mediator of employee effort. In addition, they contribute to the debate in the field of strategic HRM on whether high‐commitment HR practices should be used across all employee groups within a firm. Their study's results show that high‐commitment HR practices positively relate to firm performance through employee effort for two employee groups within professional services firms. Further, they found that the relationship between effort and performance is contingent on the value of the employee group to firm competitive advantage, suggesting that companies may only want to expend the effort and resources on building a high‐commitment HR system for employee groups that are clearly tied to creating firm competitive advantage. © 2011 Wiley Periodicals, Inc.     

Strategic HR system differentiation between jobs: The effects on firm performance and employee outcomes

The purpose of this research was to understand whether firms apply different human resource management systems to different occupations within the same organization (HR differentiation) and how the extent to which they do so may influence firm and employee outcomes. We conducted two studies pertaining to these questions. The first study was based on data collected from managers, and the results suggest that firms differentiate their HR investments based on the strategic value of occupations to the firm, which was further associated with the human capital of those occupations. Differentiation in human capital was also associated with firm performance. The second study was based on data obtained from nonmanagement employees. The findings indicated that employees who were recipients of less HR system investment had lower fairness perceptions, which were further associated with higher turnover intentions and lower organizational citizenship behavior. Although the evidence from these studies suggests that firms may realize benefits from strategic HR system differentiation, managers should carefully consider how to balance the effects of differentiation on firm performance and employee well‐being before implementing such systems.     

HR practices and turnover intention: the mediating roles of organizational commitment and organizational engagement in a selected region in Malaysia

This study examined the mediating effects of organizational commitment (OC) and organizational engagement (OE) on the relationship between human resource (HR) practices (career management, performance appraisal, compensation, person–job fit and job control) and turnover intention. A total of 457 employees working in various sectors in a selected region in Malaysia participated in this study. It was found that all the variables used to measure HR practices have significant effects on OC and OE. However, multiple regression analyses indicated that career management and job control did not have any significant influence on turnover intention. OC and OE were discovered to give partial mediating effects on the relationship between HR practices and turnover intention.     

Commitment-based HR practices,different types of innovation activities and firm innovation performance

Research on human resource (HR) practices and innovation has increased in the strategic HR management literature over the last decades. Scholars suggest that commitment-based HR practices contribute to innovation performance of the firm. However, prior research puts little emphasis on the causal linkages among commitment-based HR practices, different types of innovation activities and firm innovation performance. This article opens the black box of the relationship between HR management and firm performance by examining the causal relationships among a bundle of commitment-based HR practices (i.e. a commitment-based HR system), different types of innovation activities and firm innovation performance. On the basis of a survey of 103 Turkish firms, empirical results show that a commitment-based HR system has a positive effect on process, organizational and marketing innovation activities. Furthermore, a commitment-based HR system mainly affects organizational innovation activities and shows that these innovation activities are the core drivers of process and marketing innovation activities, leading to higher rate of product innovation activities. Subsequently, product innovation activities enhance firm innovation performance, emphasizing their determinant role.