A multi-level examination of quality-focused human resource practices and firm performance: evidence from the US healthcare industry

In today's business world, the role of quality has become ever more significant for organizations to compete in a global marketplace. Based on the quality management theory, this study empirically examines the relationship between quality-focused human resource practices (QHRP) and organizational performance outcomes. Data from 69 healthcare organizations indicate a strong support for this relationship. A Human Resource (HR) system focused on quality management was directly related to multiple dimensions of organizational performance outcomes (i.e., intangible – employee satisfaction and customer satisfaction – and tangible – profit). Specifically, two measures of QHRP, knowledge management and strategic management, were found to be positively related to the financial performance of firms implementing quality management. Process management is found to be negatively related to employee satisfaction. General Human Resources were positively related to both employee and customer satisfaction. Employee focus of the firms is also positively related to employee satisfaction. In addition, employee satisfaction is also related to both customer satisfaction and financial performance while customer satisfaction is found to be positively related to employee satisfaction. The findings indicate a generally strong positive relationship with the organizational performance outcomes. The results of this study are particularly important in showing HR's contribution to the organization's bottom line.     

Exploring the link between organizational values and human resource certification

We contribute to the discussion of human resource (HR) certification by identifying organizational values as a key antecedent to (1) an organization's use of HR certification and (2) whether organizational members choose to pursue HR certification. Building on research which has looked at the influence of organizational values on the behavior and attitudes of the organization and its employees, we propose that key organizational values will influence the extent to which an organization and its members value HR certification. Specifically, we explore the relationship between the organizational values of innovation, people orientation, and stability and the extent to which an organization uses HR certification for selection purposes. In addition, we propose that these key organizational values will also influence whether the organization's members pursue HR certification. Exploring the link between key organizational values and HR certification is critical to our understanding of an organization's HR practices and the behavior of its employees. By taking a more organization focused perspective, we highlight the top-down effects of organizational values on the value of HR certification and call for additional research on the antecedents of the value of HR certification.     

Perspectives on line managers in human resource management: Hilton International's UK hotels

Although contextual factors act to encourage the devolvement of human resource management to line managers, recent research indicates that there is substantial potential for human resource specialists and line managers to share more effectively responsibility for their organization's human resource activities in business partnerships. The foundation for this is arguably commonality in opinions on the principles and practices of human resource activities. However, line managers and human resource specialists often have dissonant opinions on human resource management.

This paper explores line manager and human resource specialists' perspectives on line manager involvement in human resource management, theoretically and empirically. The primary work comprises a survey of the views of line managers and human resource specialists on devolving a range of human resource activities to line managers in a case organization, Hilton International's UK hotels. Differences between line managers' and human resource specialists' perspectives are found in five aspects: understanding and ownership of the company's service and HR strategy; line manager involvement in and rankings of HR activities; HR specialists' support of line managers; barriers to line managers' involvement in HR activities; and the competence of line managers in HR activities. Importantly, it is found that where there are divergent views across line managers and their HR specialist in their hotel there is poor hotel business performance and, conversely, convergent views are evident in the effectively performing hotels. These findings may have resonance for other organizations in devolving human resource management to the line and developing human resource business partnerships for business performance. It is proposed that three types of line manager buy-in are central to their active involvement in HR, namely: conceptual understanding of the rationale for their involvement; implementation effectiveness through HR role clarity and capability; and affective commitment in believing in the value of their involvement in HR.     

ENVIRONMENT, ORGANIZATION AND EFFECTIVENESS: A BIOGRAPHICAL APPROACH[1]

Answers to the question of what makes an organization effective have proved elusive despite more than 20 years of intensive theorizing and research. Yet the search for answers, which gained momentum with Lawrence and Lorsch's (1969) Organization and Environment, clearly has had salutary effects on students of organizations and their work. This paper offers an approach to analysing organizations explicitly based on two of those benefits. The first is the shift toward a more dynamic orientation for explaining organizational configurations and outcomes. The second is the identification of strategic decisionmaking as the key link between organizational environment, structures, and effectiveness. By merging these two, we construct a biographical approach to the study of organizations. This approach sees organizations as evolving through time in response to, or in anticipation of, both external and internal forces. We view effectiveness as the outcome of a variety of decisions taken by one or more groups of organizational actors - elites or coalitions - in the context of bounded rationalities and environmental and structural constraints. So decision processes underpin observed configurations of environmental and structural features and link these configurations to effectiveness. An organization's biography - the pattern of its evolution - can be conceptualized as a succession of decisions and their consequences, with some decisions having a major long-term influence on the direction taken by the organization and its effectiveness, while others have but an incremental influence. This article is an initial effort to make concrete our ideas. The opening section discusses organizational decision-making and organizational effectiveness. This is the core of our approach: a basis for categorizing organizational decisions and in particular for singling out those which can be regarded as strategic. It is our contention that significant decisions vary across organizations and that it will embrace rather than ignore history and context. And ultimately, it will enhance our understanding of organizational effectiveness.     

Project management systems: Moving project management from an operational to a strategic discipline

This article illustrates one aspect of the concept of “fit” between an organization's implementation of project management and its organizational context by exploring how the underlying drivers of an organization's strategy might influence not only the nature of the projects that it undertakes, but also the appropriateness of the arrangements that it makes to manage those projects. Using a model conceptualized from the literature on strategic management, an analysis of four organizations that have made significant investments in project management over the past 5 years supports the hypothesis that the degree of “fit” between an organization's strategic drivers of value and the configuration of its project management system influences the value it obtains from project management.     

Connecting strategic orientation,innovation strategy,and corporate sustainability: A model for sustainable development through stakeholder engagement

This paper aims to enhance our understanding of the relationship between organizations' strategic orientation (i.e., instrumental, equidistant, and stewardship) and their innovational strategy (i.e., organizational ambidexterity and open innovation), and this relationship's influence on their sustainability performance. We expected organizations' strategic orientation to influence their innovational strategy and exhibit better corporate sustainability. We focused on 12 different multinational organizations in the Eurozone and found that inbound open innovation acts as a driver for corporate sustainability while simultaneously positively enabling organizations to pursue both financial and social initiatives. After suggesting open innovation as a new corporate sustainability antecedent, we only found empirical evidence of inbound open innovation. However, we would suggest that if organizations incorporated outbound open innovation in their strategy, they could likely improve their corporate sustainability. Also, we found that achieving an equidistant or stewardship orientation paves the way for sustainability to become an integral part of an organization's innovational culture and actualizes the organization's strategic behavior. Our findings further contribute to a deeper understanding of organizations' characteristics as their sustainability commitment grows and as they move from an instrumental to a stewardship orientation and implement an open innovational strategy.     

Fostering strategic agility: How individual executives and human resource practices contribute

Strategic agility, as an observable organization performance outcome, results from the behaviors and skills of the organization's managers in taking and implementing strategic actions. So, the key to strategic agility is not just analytical strategy from superior minds or thoughtful and effective organizational design but the set of management practices, behaviors, skills, values and beliefs that animate the senior management of an organization in making and implementing strategic commitments. In particular, earlier research suggests that three vectors of forces enable strategic agility: strategic sensitivity, resource fluidity and collective commitment. Taking these as a basis, we identify specific individual behaviors, and analyze and review how skills, and practices driving these behaviors, and their supporting HR practices affect the strength of each vector, and of the forces that provide energy in fostering strategic agility. This provides a profile of skills and capabilities individuals need in order to best contribute to the strategic agility of their organization and of HR practices to put in place.     

Mind the Intended‐Implemented Gap: Understanding Employees’ Perceptions of HRM

This study aims to shed light on the implementation of HR practices as a key piece of the human resource management (HRM)–performance puzzle. Although the literature suggests that discrepancies between the organization's intended and implemented HR practices are essential to understanding employees’ perceptions of and reactions to HRM, little attention has been devoted to this issue. Drawing upon a multiple‐case study of German health and social services organizations, we therefore explore the linkages (and potential gaps) between intended, implemented, and perceived HR practices. Our study provides new insights into the underlying mechanisms of this relationship, highlighting an organization's ability to leverage its resources as playing a crucial moderating role in implementing intended HR practices, while employees’ expectations of HRM moderate the link between implemented and perceived HR practices. We advance a set of propositions that contributes to a more nuanced, multilevel understanding of the complex phenomenon of HRM implementation. © 2014 Wiley Periodicals, Inc.     

Cross-Sectoral Comparison of Values Influencing Strategy

This article reports the findings of research into four case organizations from the public and nonprofit sectors. The findings build on international theory about strategic management, and argue that values influence strategy formulation. Chaffee's models of strategy are provided as a useful tool in differentiating the value-base which informs the strategic posture of an organization. Expressive values are more evident in nonprofit strategy formulation which aligns with Chaffee's interpretive approach to strategy. Instrumental values appear more in public organizations which align more with Chaffee's adaptive approach to strategy.     

Cooperative Goals,Leader People and Productivity Values: Their Contribution to Top Management Teams in China*

abstract This study proposes that when top management team members are convinced that their leader is committed to people and productivity, they conclude that their leader is effective and contribute to making their organization innovative. Cooperative goals among top management team members may be credible evidence that their leader has people and production values. Executives from over 100 organizations in China completed measures of their cooperative, competitive, and independent goals, their leader's people and production values, and their leader's effectiveness. CEOs from these firms rated their organization's innovativeness. Structural equation analysis suggested that cooperative goals among top management teams convince them that their leader values people and production and that these values in turn result in leader effectiveness and organizational innovation. Results, coupled with previous research, were interpreted as suggesting that cooperative goals and leader people and production values are foundations for leader and top management team effectiveness in China.     

Strategic human resource management at Herman Miller

This article describes the Human Resource Management system in place at Herman Miller, Inc. (HMI). HMI's HR strategy is comprised of three primary goals: (1) building employee capabilities, (2) building employee commitment, and (3) improving the professional capabilities of the HR function itself. Key emphases of HMI's HR management infrastructure include (1) employee competency identification and development, (2) building employee participation, (3) building business literacy, (4) creating a “corporate community” through strong values and a sense of “belonging”, (5) community responsibility and environmental protection, (6) competently delivering the HR “fundamentals”, and (7) developing innovative partnerships with suppliers. Key challenges for the future include (1) change management, (2) clarifying HR's strategic role throughout the firm, and (3) attracting and retaining a diverse workforce. © 1999 John Wiley & Sons, Inc.     

The human resource department's role and conditions that affect its development: Explanations from Austrian CEOs

Using a qualitative approach, this study fills a void in the literature on strategic HRM by analyzing Austrian CEOs' perceptions of the role of the HR department in their organizations, and the conditions that affect the development of a strategic role. The results suggest that even if CEOs have an overall positive evaluation of their HR departments and are willing to delegate responsibility for higher‐level decision‐making, to develop the HR department's role, CEOs must also feel they have the scope to do so. A framework for future research and practical implications for opportunities and constraints confronting HR managers are discussed. © 2010 Wiley Periodicals, Inc.     

Leadership development in selected leading Thai companies

This research examined leadership development (LD) and leadership development programs (LDPs) in three selected Thai businesses. The research purpose was to identify and explore the features, leaders' competencies, activities and programs, key elements, and critical issues of LDP in these organizations. A case‐study approach was employed as the research method. The data were collected through company documents, questionnaires, and interviews of managers who were directly responsible for leadership development in their organization. Three levels of LDPs were commonly found among the studied companies: those organized for supervisors, managers, and executives. Leaders' competencies were derived from the companies' vision, mission, and values, business drivers, and top management judgment. Development activities included formal training, development activities, and self‐initiative undertakings. Common key elements of LDPs were support from top management, adherence to human resource development (HRD) and business strategic plans, and emphasis on coaching and mentoring. The critical issues included top management trust in employees' abilities; competence and independence of local internal staff; evaluation of LDP effectiveness; level of engagement by potential company leaders; and costs of building, executing, and evaluating LDP.     

How top management and the organization itself can block effective executive succession

Some organizations are able to do effective succession planning that is linked to corporate objectives, while others fail. This article examines the culture, strategy, structure, and other design features of two companies in order to elucidate the barriers to and facilitators of effective succession. An organization-centered approach that integrates the succession system with the organization's design can add value both to succession activities and overall business functioning.     

HR and analytics: why HR is set to fail the big data challenge

The HR world is abuzz with talk of big data and the transformative potential of HR analytics. This article takes issue with optimistic accounts, which hail HR analytics as a ‘must have’ capability that will ensure HR's future as a strategic management function while transforming organisational performance for the better. It argues that unless the HR profession wises up to both the potential and drawbacks of this emerging field and engages operationally and strategically to develop better methods and approaches, it is unlikely that existing practices of HR analytics will deliver transformational change. Indeed, it is possible that current trends will seal the exclusion of HR from strategic, board‐level influence while doing little to benefit organisations and actively damaging the interests of employees.     

Dilemmas in linking succession planning to individual executive learning

This paper examines the issue of linking the selection of top-level executives with the development of these people. It first describes three stages in an organization's development of a succession system which promotes the attainment of a firm's objectives: 1) oneposition staffing, 2) replacement planning, and 3) succession planning. Then we examine the other piece to be connected to succession planning: executive learning. It is argued that most planned executive development is aimed at task learning, not personal learning. Consistent with this condition, most executive education activities overstress classroomstyle receptive methods, while neglecting active learning. Reasons for this state of affairs are proposed. The paper concludes with recommendations for enhancing personal learning for executives and for better integrating this learning with the strategic succession planning of the organization. This sort of strategic approach to executive succession is seen as the “acid test” in a firm's strategic planning process.     

The purchasing department's leadership role in developing and maintaining a preferred customer status

Developing and maintaining a preferred customer status is one of the main objectives of organizations that want to obtain a better access to supplier's information, resources, and innovation. This paper addresses the extent and the nature of the purchasing department's leadership role in the process of developing and maintaining a preferred customer status. A qualitative exploratory approach based on eleven cases has been used in order to take into consideration the context specific to the buyer-supplier relationship in a preferred customer scenario.Our study shows that the purchasing department performs four main categories of roles: (1) identifies and selects the best supplier, (2) structures and segments the supply base, (3) builds close relationships with selected suppliers and (4) develops working relationships, using an effective communication. Each of these roles is related to three key components of the purchasing department's capabilities: boundary, relational, and coordination. These four categories of roles illustrate supply's ability to recognize and understand the specifics of the preferred customer situation. Based on our analysis, the purchasing department should be viewed as extending an organization's resource base, making the organization more competitive.Our analysis also shows that the purchasing managers' leadership is critical for the development and the coordination of activities with selected suppliers, as well as proper communication with them. Specifically, the purchasing manager's transformational leadership generates more internal user and supplier involvement through the creation and articulation of a common vision, by establishing shared goals with other organizational units, and by focusing on activities that benefit the organization; this allows to move from initiative-driven efforts to an “institutionalized preferred customer status management” in the organization.     

The Role of Human Resource Management in Strategy Making

Among the strategy scholars, there is general consensus that responsive‐integrative strategy making is essential for ensuring a competitive advantage in contemporary dynamic environments. What is the role of HR in this process, and how can HR support responsive‐integrative strategy making? To answer these questions, we use illustrative experiences from Chr. Hansen, a global supplier of bioscience‐based ingredients to the food, health, and animal feed industries. We argue that HR's strategic role lies in providing support for both centralized and decentralized strategy making by offering aspirations for strategic decisions and by gathering various sources of inspiration for strategy discussions. © 2013 Wiley Periodicals, Inc.     

EMS models for business strategy development

This research investigation identifies the organizational barriers that can occur within large organizations to impede the introduction and development of environmental management systems (EMSs). The findings from the six case study investigations into multinational electronic and telecommunications organizations enabled the construction of four categorical models: devoid, isolated, devolved and integrated. They provide a profile of the way organizations use their EMSs and detail the types of organizational barrier that are likely to occur in each case. The models are designed to offer insight into the profile of the organization, the type of EMS being used and the operational advantages and disadvantages of using each model. They offer managers additional decision‐making tools with which to assess the EMS profile of their own organization and those of competitor organizations and to assess the effectiveness of an organization's EMS in weak and strong economic conditions. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment     

The organizational choice of human resource management practices: a study of Chinese enterprises in three cities in the PRC

This study examined the effects of an organization's contextual variables on the choice of human resource management (HRM) practices to secure, nurture, reward and retain managerial employees. The contextual variables included organizational characteristics (ownership, age and size), on the one hand, and its competitive strategies (innovation, quality and cost) and the strategic role of the human resource function, on the other. Data were collected through a questionnaire survey of general managers and human resource directors from 326 joint ventures and state-owned enterprises located in Shanghai, Nanjing and Guangzhou, three major cities in China. Using structural equation analysis, we examined both the direct and indirect effects of the contextual variables on HRM practices. The indirect effects were measured through the strategic role of the human resource function. Results indicated that ownership and the strategic role of the human resource function were key variables in explaining an organization's choice of HRM practices. Age and size of the organization had limited effects. Compared with cost and quality strategies, the innovation strategy affected HRM practices, both directly and indirectly, indicating the increasing dynamism of the Chinese economy in its move towards a market orientation.