The impact of human resource management practices on intention to leave of employees in the service industry in India: the mediating role of organizational commitment

The purpose of this study was to investigate the impact of a bundle of eight human resource management practices on intention to leave, and to examine the mediating effect of organizational commitment on the relationship between the HRM practices and intention to leave of employees of a service organization in India. Most of the prior HRM practices–employee turnover studies have been from the HR manager's point of view. This study took a different approach and studied this relationship from an employee's point of view. Internet survey questionnaires were used to collect the data from 183 employees working in a service company in India. Multiple linear regression and hierarchical linear regression analysis were conducted to test the hypotheses. The study found not only that the HRM practices lower employee intentions to leave, but also that this relationship is partially mediated by organizational commitment. The results of the study not only supported that organizations should focus on employee perceptions of the organizations' HRM practices but also indicated that human resources should go beyond establishing policies and procedures to providing an employee-friendly work environment (Biswas and Varma 2007).     

Caring human resources management and employee engagement

Research on employee engagement has demonstrated that human resource management (HRM) practices and systems are positively related to employee engagement. However, it is not clear what HRM practices or system of practices is most important for employee engagement or the theoretical mechanisms that intervene and explain the link between HRM and employee engagement. In this paper, I provide answers to these two important questions by developing a model of caring HRM and employee engagement based on the engagement, organizational climate, and strategic HRM literatures. The model indicates that a system of caring HRM practices (job design, training and development, flexible work arrangements, work-life balance, participation in decision making, health and safety, career development, and health and wellness programs) will result in an organizational climate of care and concern for employees that employees will respond to by caring for the organization which they will enact with higher levels of engagement. This model provides many avenues for future research and practice on HRM and employee engagement and introduces the notion of a caring HRM system and an organizational climate of care and concern for employees to the literature on employee engagement.     

The impact of socially responsible human resource management on employees' organizational citizenship behaviour: the mediating role of organizational identification

Based on insights from social exchange and social identity theories, this paper examines the influence of three dimensions of socially responsible human resource management (SR-HRM), namely legal compliance HRM, employee-oriented HRM and general CSR facilitation HRM, on employees' organizational citizenship behaviour (OCB). Structural equation modelling of dyadic data collected from Chinese employees and their direct supervisors in three phases revealed that whilst organizational identification fully mediated the relationship between employee-oriented HRM and employee OCB, general CSR facilitation HRM had a direct effect on employee OCB. In contrast, legal compliance HRM neither influenced employee OCB directly, nor indirectly through organizational identification. The findings highlight the important but complex role played by SR-HRM in eliciting positive employee work outcomes, and contribute to our knowledge of the mechanisms underlying this relationship.     

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.     

Human resource management and performance in a developing country: the case of Eritrea

This study investigates the relationship between human resource management (HRM) practices and organizational performance. Results based on a sample of 82 organizations from private and public sectors in Eritrea indicate that some of the practices have a significant impact on employee turnover, absenteeism, grievances and productivity. While compensation was the only independent variable found to be statistically significant in affecting grievances, employee selection had no effect across all performance measures. However, the study's results offer support for the assertion that investments in HRM practices results in better organizational performance.     

HRM practice in emerging economies: a long way to go in the Slovak hotel industry?

Using empirical data from interviews among leading hotels in Slovakia, this paper sets out to explore recent developments in human resource management (HRM) policies and practices and labour relations in an emerging Central European economy. The main areas explored are the HRM function, employee resourcing, employee development, employee relations and emerging HRM issues. The paper establishes that there has been a move away from the traditional rigid socialist type of personnel management, but it has not been fully replaced by HRM practices. The emergent 'model' is a hybrid of the traditional Western personnel management and basic HRM activities, alongside which some legacies of the socialist personnel function still exist.     

Strategic human resources management is irrelevant when it comes to highly skilled professionals in the Canadian new economy

The goal of this paper is to explain the commitment behaviour of highly skilled professionals in Canadian business-to-business (B2B) technology services companies that do not have a formal and explicit managerial commitment strategy and to emphasize the need to take the organizational context into consideration when developing a theory that seeks to account for differences in employee's organizational commitment. Our contribution is to reappraise the relevance of the traditional organizational commitment definition in this organizational context, a new organizational form. We demonstrate that in the companies which are different from the traditional bureaucratic organizational forms and which employ highly qualified professionals, the employment relationship is based on a psychological contract that is not accounted for in the strategic HRM theory.

Indeed, the basic principles of strategic HRM dictate that an organization's most valuable asset is its employees; it is therefore incumbent on management to do whatever is necessary to retain its workforce, readily described as a key resource, and to use human resources management (HRM) practices as tools to elicit commitment. In a study of highly skilled workers in Canadian business-to-business (B2B) technology services companies belonging to the so-called ‘new economy’, we observed that although the competitive advantage enjoyed by these companies depends to a large degree on the creativity and innovativeness of their workforce, these companies barely have any official HRM policies, and the HR department plays a very unobtrusive role. Yet, no one could say that the employees in these firms are not committed – on the contrary! This situation has several implications in terms of career for these professionals, in terms of HR practices for the employers.

Nevertheless, until now, existing theoretical models of organizational commitment have shown little interest in highly skilled workers in general and even less in new economy professionals.     

Strategic HRM as process: how HR system and organizational climate strength influence Chinese employee attitudes

In contrast to the high-performance work systems literature that focuses on HR practices, we follow Bowen and Ostroff in examining human resource management (HRM) processes, specifically the strength of an HR system (its distinctiveness, consistency, and consensus) and its contribution to the organizational climate (employees' shared perceptions of the HR system). Based on 810 employees within 64 units in three Chinese hotels, we examine how employee perceptions of HRM system strength and organizational climate are associated with employees' work satisfaction, vigor, and intention to quit. The distinctiveness of an HRM system was found to be related to the three employee work attitudes, and high climate strength increases both the positive relationship between consensus and work satisfaction, and the negative relationship between consensus and intention to quit. We draw on aspects of Chinese society to interpret these findings. Several important research and HR practice implications are highlighted and discussed.     

Dynamizing human resources: An integrative review of SHRM and dynamic capabilities research

Human resource management (HRM) systems have been extensively analyzed in academic research yet limited attention has been paid to the role of HRM dynamic capabilities (DC) and their impact on resources and practices, employee well-being and firm performance. Our study bridges this gap by defining a new categorization of HRM DC based on their ultimate aims: building knowledge, advancing social integration and developing reconfiguration-enhancing mechanisms. In parallel, we offer an integrative framework to shed light on how strategic human resource management (SHRM) can accelerate HRM DC development. Through this conceptual process model and typology of capabilities, we deepen the discussion around the core components of HRM systems, HRM DC, and their effects on resources and practices, employee well-being and performance. In practical terms, HRM DC represent a promising driver of sustainable long-term organizational growth by enabling firms to boost their strategic agility and capacity to navigate in the presence of environmental dynamism.     

Variations in human resource management in Asian countries: MNC home-country and host-country effects

This paper investigates the determinants of HRM strategy in a random sample of firms operating in Korea and Taiwan. Both indigenous and foreign-owned firms are studied. HRM strategy is measured in terms of the company's reliance on high-performance, versus more traditional, HRM policies and practices in several different areas, including staffing, employee influence, employee rewards and employee autonomy. Independent variables include the firm's country or region of origin (USA, Japan, Europe, Korea or Taiwan), the host country (Korea or Taiwan) and the internal culture of the firm, as measured by upper management's perception that human resources constitute a significant source of value for the organization. Pronounced differences are found across countries of origin and between the two host countries. Managerial values and various organizational characteristics that serve as control variables are also found to impact on HRM strategy.     

Challenges to the psychological contract in Hong Kong

This study investigates empirically the psychological contract of a sample of 205 Hong Kong junior and senior managers. It determines the perceptions of factors that employers and employees see as relevant to the employment relationship, and then analyses perceptions of and attitudes towards recent changes in the Hong Kong business environment. In addition to exploring the nature and content of manager's psychological contracts in Hong Kong, the study explores how contracts are related to and affected by both the external environment and internal management practices. A survey questionnaire is used to measure the promises and commitments perceived to have been made by organizations, and the obligations that employees perceive they owe to their employer. In addition, the actual policies and practices of the employing organizations are determined. The impact of the HRM climate of the employing organizations (actual policies and practices) and the attitudes, expectations and feelings of organizational members about ongoing changes in the business and management environment on this exchange relationship are isolated. The study makes two contributions to the psychological contract literature: it examines the relevance of a psychological contract approach in a nonWestern geographical region; and it moves the concept of HRM preferences more centrally into the psychological contracting literature. This enables a better understanding of the construct in relation to the comparative management literature. The content of the psychological contract is shown to be multi-dimensional. Perceptions of organizational commitments and promises focus around four judgements: an intrinsically satisfying and challenging environment; a secure and rewarding job; equity; and supportive leadership. By Western standards the employee side of the employment relationship 'deal' is more one-sided. The proportion of managers who believe employees are strongly obligated to do certain things for their employers is very high. The study examines the factors that predict employees' psychological contracts. Actual HRM practices are shown to predict perceived commitments and obligations, and the strength of obligation is related to perceived promises and commitments. In contrast to the emphasis on the internal cognitive and individualized conception of the psychological contract in much of the literature, this study indicates that this decontextualizes psychological contracts. The true nature of a psychological contract is shown to be an exchange relationship firmly linked to a culture's reciprocity norms.     

Employee commitment in MNCs: Impacts of organizational culture,HRM and top management orientations

This article tests a model of organizational commitment in multinational corporations (MNCs). According to the model, organizational culture and human resource management (HRM) affect employee commitment directly as well as indirectly through top management team orientations. Szpecifically, we examined the effect of top management team global orientation and geocentric orientation, which are seen as contributing uniquely to employee commitment in MNCs. The model was tested on a sample of 1664 core employees working in 39 affiliates of 10 MNCs. We found strong overall support for the model. In particular, organizational culture characterized by high adaptability and a HRM system characterized by high performance work practices were found to have a significant and direct effect on employee commitment. In addition, we found that the effect of these traditional elements of the human organization is partially mediated through top management orientations, specific to international firms. The validity and generalizability of these results are reinforced by the control of a set of demographic variables as well as nationality of parent company.     

How High‐Commitment HRM Relates to Engagement and Commitment: The Moderating Role of Task Proficiency

In a multisource field study, we examine the relationship between employee perceptions of high‐commitment human resource management (HRM), task proficiency, work engagement, and organizational commitment. Based on conservation of resources (COR) theory, we first propose that work engagement mediates the relationship between high‐commitment HRM and organizational commitment. Second, we propose a mediated moderation model in which employees’ task proficiency moderates the relationship between high‐commitment HRM and work engagement, which in turn affects organizational commitment. Results indicate that the relationship between high‐commitment HRM and organizational commitment was fully mediated by work engagement. Results also supported the mediated moderation model. A significant indirect effect was found from high‐commitment HRM to commitment via engagement for low task proficiency, but not for high task proficiency. Implications and directions for future research are discussed. © 2014 Wiley Periodicals, Inc.     

High performance work practice implementation and employee impressions of line manager leadership

Human resource management (HRM) research has documented the importance of high performance work practices (HPWPs) to organizations, and recent efforts have argued for increasing attention to the role of line manager implementation of HPWPs. To date, research in this area has focused largely on the organizational or employee implications of HPWP implementation, ignoring the process through which implementation affects outcomes. In this article, we use theory on impression formation to describe the perceptual process through which line manager implementation of HPWPs facilitates the formation of different employee impressions of manager leadership styles. We argue that this process is contingent upon employee attributions of implementation intent, which are influenced by the interaction of employee affective and attributional tendencies with line manager implementation style (i.e., political skill). Our conceptualization of this process contributes to HRM research by demonstrating the benefits of integrating it with leadership theory, as well as identifying the role of interpersonal perceptual processes in the effects of HPWPs.     

The labour relations heritage and lean manufacturing at Fiat

The objective of the paper is interpreting, from an evolutionary perspective, recent developments of work organization and human resource management policies at Fiat Auto, one of the world's largest automobile manufacturers, which achieved a successful restructuring in the early 1990s. Building on a heritage of adversarial labour relations and ‘mass production’ organizational principles, Fiat developed an original and to some extent hybrid version of ‘lean’ human resource management practices (teamwork, flexible compensation, multi-skilling, etc.).

The paper analyses this process of organizational change from an evolutionary perspective based on the concept of dynamic capabilities. From this standpoint, IR. HRM and work organization practices are the result of a learning process, based on original development, imitation, analogical replication, combination and selection of organizational capabilities; organizational capabilities have a cumulative and path-dependent nature; workplace innovations are also rooted in organizational absorptive capacities, that is, the ability of firms to exploit new (and often extramural) organizational and HRM developments; the existence of complementarities among organizational competencies, assets and choices in term of HRM are likely to push toward the adoption of a set or system of (rather than single and insulated) innovations in work organization, HRM practices and industrial relations policies.

The data provided in the paper show that the process of innovation of workplace practices at Fiat Auto (summarized by the concept of the Fabbrica Integrata) is curiously non-linear. The newly designed HRM policies have, on the one hand, been resisted by the unions (who have not been involved in the design process) and by segments of the work-force; on the other hand, they have been hindered by existing organizational features and personnel practices which, in turn, were key success factors during the 1980s. This inertia is significantly lower at the new greenfield plant of Melfi. On the whole, the restructuring process was successful from the competitive and financial standpoint, and represents the basis on which management and the unions can develop a new co-operative model of industrial relations.     

Disengaging from engagement

Two basic approaches to engagement are contrasted. Work engagement relates to an individual's psychological state of mind while at work. The problems with this and its limited relevance to HRM are considered: its concern with a minority of employees, the way non‐engaged staff are portrayed, the airbrushing out of conflict and the pernicious use of positive psychology. Employee or behavioural engagement is more relevant to HRM and employment relations but suffers from a lack of definition and a failure to specify the components that are associated with higher levels of employee engagement. It is usually a‐contextual and lacks the subtlety of earlier work on HR and performance, while covering the same ground. Problems remain with research seeking to show the connections with financial performance. Boiling engagement measures down to one score is particularly worrying. The management of employee engagement in the UK National Health Service illustrates that properly constructed studies of employee engagement can inform policies and practices to improve work relations, employee well‐being and aspects of performance.     

The effects of employee engagement and self-efficacy on job performance: a longitudinal field study

Abstract

Self-efficacy’s influence on individual job performance has been well documented in laboratory studies. However, there have been very few rigorous field studies of self-efficacy’s relationship with objectively measured individual job performance in organizational settings. This research history might account for the low take-up of self-efficacy within the business literature as well as within business itself. When it comes to studies of employee engagement, the same lack of rigorous individual studies applies, although several organizational-level studies link employee engagement to organizational performance, while its claimed benefits have been widely discussed in the business literature. Finally, the degree to which employee engagement and self-efficacy have independent and additive effects on individual-level job performance remains unknown. In order to address these issues, a longitudinal field study was undertaken within an Australian financial services firm. Using survey data linked to objectively measured job performance, we found the additive effects of self-efficacy and employee engagement explained 12% of appointments made and 39% of products sold over and above that explained by past performance. This finding suggests human resource management (HRM) practitioners should address both self-efficacy and employee engagement in order to boost job performance while encouraging HRM scholars to incorporate both measures when conducting job performance studies.     

Human resource management systems and organizational performance: a test of a mediating model in the Greek manufacturing context

This paper investigates the relationship between systems of HRM policies and organizational performance. The research is based on a sample of 178 organizations operating in the Greek manufacturing sector. A mediation model is tested to examine the link between HRM and organizational performance. The results of this study support the hypothesis that the relationship between the HRM systems of resourcing–development and reward–relations, and organizational performance, is mediated through the HRM outcomes of skills and attitudes. The paper not only supports the theory that HRM systems have a positive impact on organizational performance but also explains the mechanisms through which HRM systems improve organizational performance.     

HRM practices used to promote pro-environmental behavior: a UK survey

To date, the extent to which UK organizations use human resource management (HRM) practices to promote pro-environmental behavior through workplace HRM policies and initiatives is under-researched within the literature. Therefore, this paper presents results of a survey investigating current HRM practices used to promote pro-environmental behavior in a sample of 214 UK organizations representing different sizes and industry sectors. Overall, findings indicated that HRM practices are not used to a great extent to encourage employees to become more pro-environmental. The most prevalent practices used within organizations incorporated elements of management involvement supporting the idea that managers are the gatekeepers to environmental performance. Although organizations indicated that some HRM practices were more effective than others at encouraging pro-environmental behavior in their staff, only a very small percentage of organizations actually conducted any form of evaluation; organizations consequently lack clear evidence as to whether their HRM practices actually result in employee behavior change. Practical implications and future research directions are discussed.     

Neo-pluralism as a theoretical framework for understanding HRM in sub-Saharan Africa

This paper discusses the 'social' nature of employment management problems in sub-Saharan Africa (SSA). 'Applied' Western HRM is largely based on unitarist conceptions of organizational reality. Where conceptions suggest a 'stakeholder' perspective, they tend to follow orthodox formulations of pluralism. In that regard, notions of 'stakeholding' refer to the divergent internal organizational interests (mainly economic) of labour and management. In the SSA context, however, the broader social and moral issues of the wider community have a decisive influence on the employment relationship. And internal employment relations structures, such as trade unions, do not constitute the main representative channels for employee grievances. Consequently, established Western employment frames of reference do not represent suitable theoretical frameworks for analysing all the relevant social factors that influence the SSA employment relationship. This paper proposes a modified version of Ackers' (2002) 'neo-pluralist' theoretical framework as the basis for understanding and resolving some of issues involved in HRM in SSA. From this analysis, it proposes a model of HRM that attempts to institutionalize some elements of the 'African social system' into formal HRM policies and strategies.