The moderating effects of organizational context on the relationship between voluntary turnover and organizational performance: Evidence from Korea

Scholars have suggested that the relationship between voluntary turnover and organizational performance can be moderated by the organizational context in which turnover occurs. However, there are few empirical studies that examine such moderating effects. Using a sample of 161 firms in South Korea, this study investigates how the relationship between voluntary turnover and organizational performance is moderated by three context variables: (1) the degree of organizational usage of employee involvement practices, (2) the degree of organizational investment in employee training and development, and (3) the availability of potential workers. The results demonstrate that employee involvement practices significantly amplify the negative relationship between voluntary turnover and organizational performance, give marginal support for moderation from the availability of potential workers, and provide no support for moderation from the degree of organizational investment in employee training and development. We discuss theoretical and practical implications of this study for enriching our understanding of the relationship between voluntary turnover and organizational performance. © 2012 Wiley Periodicals, Inc.     

Entitlement to Work‐Life Balance Support: Employee/Manager Perceptual Discrepancies and Their Effect on Outcomes

We broaden contemporary understandings of the relationship between HR practices that support work‐life balance and organizational as well as individual outcomes, through a focus on perceptual discrepancies of entitlement. To theorize this notion, we adopt the self‐perception accuracy model and extend it by investigating whether any employee/management discrepancies in perceptions of entitlement mediate the relationship between HR practices supporting work‐life balance and outcomes. We use data from 20 European countries and apply a multilevel statistical methodology. Our results did not reveal significant mediation effects, but the perceptions of managers, not of employees, are related to HR practices that support work‐life balance. Furthermore, employees tend to have higher expectations of entitlement than does management. Finally, the more aligned management and employee perceptions of entitlement, the higher the positive organizational and individual outcomes over and above contextual idiosyncrasies. Findings denote that, in achieving positive outcomes for employees and organizations, managing perceptions regarding organizational support for work‐life balance is more important than actual support practices. © 2015 Wiley Periodicals, Inc.     

Well‐being‐oriented human resource management practices and employee performance in the Chinese banking sector: The role of social climate and resilience

Drawing upon positive psychology and a social relational perspective, this article examines the relationship between well‐being‐oriented human resource management (HRM) practices and employee performance. Our multilevel model examines relationships among collectively experienced well‐being‐oriented HRM practices, social climate (characterized by trust, cooperation, and shared codes and language that exist among individuals within the organization), employee resilience, and employee (in‐role) performance. Based on the two‐wave data obtained from 561 employees and their managers within 62 bank branches in 16 Chinese banks, our multilevel analyses provide support for our four hypotheses. First, we found a positive relationship between well‐being‐oriented HRM practices and social climate. Second, social climate mediated the relationship between well‐being‐oriented HRM practices and employee resilience. Third, we found a positive relationship between resilience and employee performance. Finally, employee resilience mediated the relationship between social climate and employee performance. This study is one of the first to unpack the social mechanisms through which well‐being‐oriented HRM practices increase development of resilience and subsequent employee performance at the workplace, namely through influencing group feelings of social climate.     

A meta‐analysis of the non‐monetary effects of employee health management programs

This study was undertaken to review the literature on employee health management programs (EHMPs). We explored the history and characteristics of systematic organizational efforts to improve workforce health and well‐being. We believe that a historical perspective provides some insight into the economic, political, and social factors that have influenced the trend toward organizationally sanctioned health‐promotion efforts. Further, we investigated the likely effects of these programs on valued‐behavioral organizational outcomes such as employee performance, employee satisfaction, absenteeism, and voluntary turnover. Our findings show that voluntary general‐focus programs are unrelated to job performance, and voluntary programs are negatively related to absenteeism, but effects on absenteeism wane when the program is not voluntary. Moreover, EHMPs are minimally related to job satisfaction and slightly related to turnover. These results, examining behavioral outcomes of EHMPs, question the ability of EHMPs to provide desired behavioral changes in employees, changes that organizations seek to maximize such as increased performance. Are EHMPs more than just socially acceptable programs that help individuals with health problems? © 2003 Wiley Periodicals, Inc.     

Why Do Employees’ Perceptions of their Organization's Change History Matter? The Role of Change Appraisals

In this article, we identify employees’ change history in an organization as a key antecedent of their appraisals about organizational change (i.e., threat, harm, and challenge). We argue that these change appraisals are associated with psychological contract violation, which in turn is associated with intentions to leave the organization, and, ultimately, with voluntary employee turnover. In 2009, we collected data over three measurement periods from 252 full‐time, permanent employees from a manufacturing organization in the Philippines that was just about to undergo an organizational‐wide restructuring. At Time 1 (T1, the change announcement), employees completed a survey assessing their change history in the organization and change appraisals. At Time 2 (T2, six months after the announcement), employees completed a survey assessing psychological contract violation and turnover intentions. Two years later (Time 3, T3), we collected data on voluntary employee turnover. Results suggest that a poor change history in an organization was negatively associated with challenge appraisals and was positively associated with threat and harm appraisals. Challenge and harm appraisals were significantly associated with psychological contract violation. These appraisals, in turn, were associated with turnover intentions and, ultimately, with voluntary employee turnover. In addition, T1 threat appraisals were directly positively associated with T3 voluntary turnover. Theoretical and practical implications are discussed. © 2016 Wiley Periodicals, Inc.     

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.     

Understanding employee preferences for investing in employer stock: evidence from France

In this article, we broaden the focus of existing research on employee stock purchase plans by analysing employee preferences for investing in employer stock as a construct distinct from actual investment behaviour. In our analysis of original survey data in a sample of 900 employees in four French companies, we find that employee preferences are influenced by two common cognitive heuristics (representativeness and familiarity), organisational commitment, the perceived quality of corporate communications about these plans and perceived managerial commitment to employee ownership. We did not find, however, that risk aversion, turnover intentions or perceived employee involvement in decision making influenced preferences for investing in employer stock. Our findings have both theoretical and practical implications for understanding and operating these types of employee benefit plans, which are becoming more common across the globe.     

How and when matter: Exploring the interaction effects of high‐performance work systems,employee participation,and human capital on organizational innovation

Existing research on the relationship between high‐performance work systems (HPWS) and organizational innovation has paid insufficient attention to the boundary effects of employee participation and human capital. Bridging the human resource management (HRM) and employment relations literature, this study contributes to the contingency view of HRM and China‐specific research by investigating how human capital and employee participation, direct voice mechanism, and corporate governance participation jointly moderate the relationship between HPWS and organizational innovation. We test our three‐way interaction model using a sample of 108 firms and 1,250 employees in China. The results suggest that HPWS are positively associated with organizational innovation when employees with relatively less human capital are coupled with more direct voice mechanism or less corporate governance participation. In contrast, HPWS are negatively related to organizational innovation when employees possessing greater human capital are coupled with more direct voice mechanism. The theoretical and managerial implications and future research directions are discussed.     

Balancing tensions: Buffering the impact of organisational restructuring and downsizing on employee well‐being

This study examines the impact of employee experiences of restructuring and downsizing on well‐being. The job demands‐resources model was used to develop hypotheses related to job demands in the form of work intensity and job resources in the form of consultation. The job demands‐resources model allows for direct incorporation of employee perceptions and does not assume a singular, predetermined consequence of HRM practices. Hypotheses were tested via structural equation modelling on a nationally representative sample of over 5,110 employees from the Republic of Ireland in 2009. The findings indicate that work intensity serves as a conduit through which experiences of restructuring and downsizing negatively impact employee well‐being. Notably, consultation served as a buffer, diminishing the extent of this negative experience. The findings illuminate the complex pathways that shape how restructuring and downsizing are perceived by employees and the consequences for well‐being. We discuss the theoretical and managerial implications of these findings.     

Mutual Gains? Health‐Related HRM,Collective Well‐Being and Organizational Performance

Research on the effects of HR management on employees’ psychological well‐being has yielded inconclusive results. Moreover, prior works remain unclear on whether human resource practices specifically aimed at enhancing employee well‐being also benefit organizational performance. Building on signaling theory and conservation of resources theory, our study investigates the relationship between health‐related human resource management (HHRM), employees’ collective well‐being (in terms of collective emotional exhaustion and collective engagement) and organizational performance. Results from a multi‐source field study of top management team members, HR representatives, and 15,952 employees in 88 organizations reveal a positive indirect relationship between HHRM and employees’ collective well‐being, which is mediated by employees’ positive stress mindset. In addition, we find this positive indirect association to depend on the level of transformational leadership climate in organizations. Finally, our findings also show a positive indirect relationship between HHRM and company performance, mediated by employees’ positive stress mindset and collective engagement.     

Improving corporate biodiversity management through employee involvement

This paper presents an empirical examination of the role of employee involvement in the internalization of corporate biodiversity management. A qualitative study in natural resource companies was conducted, based on semi‐directive interviews with managers, consultants, and experts in this area. The findings show that employee involvement is essential to improve biodiversity practices in natural resource companies, which largely rely on organizational citizenship behaviors for the environment. The role of tacit knowledge, voluntary initiatives, and prevention of harmful behaviors in the workplace are highlighted. The main obstacles to the internalization of biodiversity issues include their complexity, the lack of corporate commitment, the externalization of initiatives, and the lack of training for employees. The contributions to the literature on corporate environmental management, internalization of new practices, and organizational citizenship behaviors for the environment are explained. Managerial implications and avenues for future research are also provided.     

Exploring the interpersonal determinants of job embeddedness and voluntary turnover: A conservation of resources perspective

This paper draws on a conservation of resources perspective to understand employee voluntary turnover. We conceptualise voluntary turnover as an outcome of resource loss, and we view job embeddedness as an indication of resource levels. On the basis of this conceptualisation, we propose that workplace ostracism and leader–member exchange (LMX) affect voluntary turnover via job embeddedness. We also propose an interaction effect of workplace ostracism and LMX: Workplace ostracism increases voluntary turnover by depleting job embeddedness only when people experience high‐quality LMX. Data from 352 employees in a Chinese software company obtained through a three‐wave survey support our model. Our findings illuminate the resource consequences of interpersonal interactions on job embeddedness and voluntary turnover, and we offer practical implications for employee retention.     

Understanding Employees’ Perceptions of Human Resource Practices: Effects of Demographic Dissimilarity to Managers and Coworkers

Strategic HRM researchers have increasingly adopted an employee perspective to understand the influence of HR practices on employee outcomes and have called for studies to explain variability in employees’ perceptions of HR practices. To address this research need, we used the social information processing perspective to examine the contextual influence of managers and coworkers on employees’ perceptions of HR practices and explore demographic dissimilarities as boundary conditions of the contextual influence. Conducting research in two organizational settings, we found that both manager‐perceived and coworker‐perceived HR practices were positively related to employees’ perceptions of HR practices. The results also revealed that employee demographic dissimilarity to coworkers in terms of age and organizational tenure weakened the positive relationship between coworker‐perceived and employee‐perceived HR practices. However, the relationship between manager‐perceived and employee‐perceived HR practices was not influenced by demographic dissimilarities. © 2015 Wiley Periodicals, Inc.     

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.     

‘No strings attached?’: How attribution of disinterested support affects employee retention

Appearance of disinterestedness is a social norm that has long been recognised by social scientists as essential to the development of social exchange relationships. Despite the predominance of social exchange theory within the field of management, management scholars have so far largely overlooked the role of this norm in their models. This study aims to fill this gap by investigating how employees' attribution of disinterested organisational support (i.e. support perceived by employees as not resulting from an underlying calculation) is related to employee retention. The hypotheses were tested in a longitudinal study of 151 management‐level employees. Results showed that perceptions of disinterested support decrease employee voluntary turnover through enhancing perceptions of organisational support and organisational commitment, and lessening turnover intention.     

Pay‐Level Satisfaction and Employee Outcomes: The Moderating Effect of Employee‐Involvement Climate

The present study examined employee‐involvement climate (i.e., information‐sharing and decision‐making climate) as a moderator of the relationship between pay‐level satisfaction and employee outcomes (i.e., job satisfaction, affective commitment, and turnover intention). Survey data were collected from 22,662 Belgian employees, representing 134 organizations. The hypotheses derived from distributive justice theory and from research on the meaning of pay received partial support. Multilevel analyses revealed that a decision‐making climate buffered the negative effects of low pay‐level satisfaction, and that an information‐sharing climate exacerbated the negative effects of low pay‐level satisfaction. Theoretical and practical implications of this differential moderating effect are discussed.     

Rethinking ‘Top‐Down’ and ‘Bottom‐Up’ Roles of Top and Middle Managers in Organizational Change: Implications for Employee Support

In this study we integrate insights from ‘top‐down’ and ‘bottom‐up’ traditions in organizational change research to understand employees’ varying dispositions to support change. We distinguish between change initiation and change execution roles and identify four possible role configurations in which top managers (TMs) and middle managers (MMs) can feature in change. We contend that both TMs and MMs can play change initiation and/or change execution roles, TMs and MMs have different strengths and limitations for taking on different change roles, and their relative strengths and limitations are compounded or attenuated based on the specific configuration of change roles. We subsequently hypothesize employee support for change in relation to different TM‐MM change role configurations. Our findings show that change initiated by TMs does not engender above‐average level of employee support. However, change initiated by MMs engenders above‐average level of employee support, and even more so, if TMs handle the change execution.     

The psychological antecedents of employee referrals

This study investigates how different psychological antecedents lead to different components of organizational commitment and employee referrals or employment recommendations in a people-based financial services context. Specifically, we consider the impact of position involvement, volitional choice, and informational complexity on affective, calculative, and normative commitment, which ultimately influences employee referrals in the context of a Flemish bank. Our conceptual model is supported through SEM, and the empirical results show differential impacts of the three psychological antecedents on the various components of organizational commitment and employee referrals. Position involvement and affective commitment represent the key determinants of employee referrals. We also address the theoretical and managerial implications of our research.     

HRM implementation by multiple HRM actors: a social exchange perspective

Abstract

In this study, we understand HRM implementation as a social process that depends on the social exchange relationships between line managers and both HRM professionals and employees. As such, we offer a fresh approach to understanding HRM implementation by concentrating on the social exchange among HRM actors. We do so by investigating to what extent these exchange relationships influence HRM implementation, as reflected in employees’ perceptions of the presence of HRM practices and their affective commitment. We collected multilevel data from two sources (line managers and employees) and in two phases in a Dutch engineering firm, and obtained fully matched manager – employee information from 75 employees and 20 line managers. Our results show that employees perceive a larger number of HRM practices when they have a good relationship with their line managers and when their line managers are motivated to implement HRM practices. Line managers, in turn, reciprocate perceived support from the HRM department with greater motivation to implement these practices. We conclude that because HRM actors engage in social interactions, HRM practices will be implemented at the organizational level because employees perceive the presence of HRM practices and then reciprocate this with affective commitment.     

Perceived organizational support and organizational identification: joint moderating effects of employee exchange ideology and employee investment

Organizational identification (OID) can be developed out of social exchange practices within an organizational setting. Drawing on social exchange theory, we propose that the effect of perceived organizational support (POS) on OID is stronger for employees with stronger exchange ideology. We further argue that employee investment in an organization may also create a social exchange process that positively influences OID. We expect that employee investment moderates not only the effect of POS on OID, but also the enhancing effect of exchange ideology on the effect of POS on OID. Specifically, POS has a stronger positive effect on OID when exchange ideology is high and employee investment is low. When employee investment is high, POS has a weaker effect on OID regardless of employees' exchange ideology. These effects were empirically supported by a survey. Theoretical and practical implications are also discussed.