Financial performance and the long‐term link with HR practices,work climate and job stress

Using data front a large financial services organisation in the Netherlands, this article reports a longitudinal study at the business unit level. The study addresses the question of which longitudinal relations exist between survey data on perceived HR practices, work climate and job stress on the one hand, and prospective and retrospective financial performance on the other. Data from 223 business units were available for this study. Eight scales were selected from an employee survey answered by 18,142 respondents. These were aggregated to mean scores at the business unit level. Financial performance is operationalised by a yearly profits‐to‐costs ratio. Correcting for employee and business unit characteristics, the eight survey scales predict 22 per cent of the variance in business unit financial performance in the year after the survey.‘Co‐operation between departments’ appears to be the most important predictor. Equally strong evidence was friund for a reverse causation sequence: business unit financial performance in the year before the survey was a significant predictor for four out of eight survey scales, especially for ‘co‐operation between departments’ and ‘job security’. The results underline the importance of studying variance in HR and performance variables within large organisatiuns, and the possibilities of using employee surveys in this research context. Limitations and implications of the findings are discussed.     

The HR role in corporate social responsibility and sustainability: A boundary‐shifting literature review

Although research on human and social sustainability has flourished in the past decade, the role that human resource management departments play (or should play) in facilitating more socially responsible and sustainable organizations remains unclear. In practice, this lack of clarity is due to the multiple features and dimensions of potential HR contributions to corporate social responsibility (CSR) and corporate sustainability (CS), as well as widespread failure to integrate HR and CSR functions. Theoretically, the absence of a framework that articulates the HR role in CSR and CS and the substantial separation between HRM and CSR/CS studies among academics act as a reinforcing mechanism. The present study contributes to the growing research on this topic, presenting a framework and a typology to classify the potential HR roles in CSR and CS and comprehensively reviewing the literature at the intersection of HR with CSR and CS. The results of the review provide a broader perspective on the role HR might play in CSR and CS as well as its impact beyond organizational boundaries.     

Human resources roles: ideal versus practiced: a cross-country comparison among organizations in Asia

Human capital and its associated principles of talent management are sound platforms on which to leverage a company's fundamental resources to attain corporate goals. Unfortunately, the importance of human resource management (HRM) within organizations is often overlooked. The fundamental problem observed by many researchers in the HRM field is the discrepancy between what are considered ideal HRM roles and what is actually practiced by HRM managers. To understand the current human resource (HR) philosophy and the specific roles practiced by HR professionals among Asian companies, a survey was conducted with 377 HR managers in four Asian countries – India, Indonesia, Malaysia, and the Philippines. Our research has shown and, hence, reiterated the sense that there are considerable differences between the current HR functions as practiced and the ideal HR functions, as indicated by the survey respondents. In addition, the survey results have identified significant differences among countries, especially in areas such as strategic practices and the roles of HR managers. Differences between practice and ideal in HR administration are also observed at different levels of management. It was also observed that differences among countries exist depending on the type of organization, the size of the organization, and whether the HR managers work for HR departments or for other functional departments.     

HR business partner competency models: re‐contextualising effectiveness

The rise of ‘HR business partnering’ over the last decade has led to an enormous growth in HR competency models. Competencies are believed to provide a mechanism for reinventing traditional HR roles and improving the effectiveness of HR professionals as business partners. But are they effective? The survey and interview evidence presented here suggest that the effectiveness of competency models is disappointing, and they appear to be particularly weak at predicting performance in a business partner role. There are also significant contextual variations in effectiveness based on the degree of change experienced by the HR function, how consistently business partnering is implemented, overall levels of reduction in transactional HR, and the patterns of centralisation–decentralisation of the HR function. The findings highlight the intrinsic limitations of competency models, as well as the powerful influence of contextual factors, and they raise important questions about the future direction of HR business partnering.     

HR outsourcing: the impact on HR role,competency development and relationships

The business benefits of an outsourcing strategy are well documented, and HR is encouraged to outsource in order to add value. Yet little is known about how HR outsourcing affects the HR role, competencies and relationships with senior management. These issues are examined through 27 semi‐structured interviews with senior HR professionals, comparing HR departments engaged in HR outsourcing with those maintaining full in‐house HR provision. The findings indicate that HR outsourcing stymies HR role transformation. HR outsourcers experienced limited skill development and an increased focus on cost reduction at the expense of their strategic position. In contrast, non‐HR outsourcers actively engaged in other parts of the business, developing competencies that garnered trust and support of senior managers. The benefits of an external HR community appear limited. The study suggests that an ‘internal’ HR community is better placed to enhance HR departmental roles.     

Knowledge‐intensive firms: the influence of the client on HR systems

HR systems play a critical role in growing knowledge‐intensive firms (KIFs) by facilitating the conversion of human capital into intellectual capital, which has market value. However, the choice of HR system is constrained by the relatively small number of clients they have in business‐to‐business relationships. This article seeks to understand how and why these client relationships affect the choice of HR practices in these firms. We address this issue by drawing on extensive empirical research currently under way in KIFs. Our research shows that HR practices can be influenced strongly by the client, both directly and indirectly. However, some KIFs will use their HR practices as a means of managing the relationships they have with their clients by shaping their boundaries with their clients and building organisational, professional and client identities. The varying client influence can be understood by examining the nature of the power relationship between the client and supplier, which is influenced by the uniqueness of the services provided. This has implications for our understanding of the factors affecting the exercise of a constrained choice of HR systems.     

Identification of values relevant to business research

In the face of increasing global competition, Human Resource (HR) professionals have been charged with ensuring that their organizations' human assets are adding the maximum value to products and services. One way to do this is to make an effective match between individual values and those that the organization espouses and requires. This article suggests that advances in maximizing human assets are being impeded because HR professionals lack a meaningful vocabulary with which to discuss values. Lists or taxonomies of values currently in the literature (Allport, G. W., Vernon, P. E., & Lindzey, G. (1960). A study of values. Boston: Houghton Mifflin; England, G. W. (1967). The manager and his values: An international perspective from the United States, Japan, Korea, India, and Australia. Cambridge, MA: Ballinger; Rokeach, M. (1973). The nature of human values. New York: The Free Press) are not framed in the common language of contemporary business. This article presents an alternative list of values derived from interviews with representatives from the business community including senior HR managers and executive recruitment professionals. The implications of this empirically derived list of value statements for the management of human resources are discussed, including the integration of HR and strategic functions and applications within traditional HR practices.     

From Partners to Players: Extending the HR Playing Field

HR professionals must always be “becoming” or constantly changing and adapting. For the last decade, many have argued the business partner role as a complement to traditional HR administrative work. We argue in this paper that HR professionals should move beyond partners to become players. HR professionals as players are “in the game, on the field, making a difference” through their HR work. In this article, we suggest that to become players, HR professionals must learn to coach, architect, build, facilitate, lead, and provide a conscience to business leaders. Specific knowledge and tools for each of these roles are described. © 2001 John Wiley & Sons, Inc.     

Human resources planning on terrorism and crises in the Asia Pacific region: Cross‐national challenge,reconsideration, and proposition from western experiences

Since the 9/11 attacks in the United States (2001) and the two bombing events in Bali (2002, 2005), there has been renewed interest in emergency prevention policies in many organizations around the world. Functional terrorism preparedness requires changes in organizational thinking about external environmental threats. This shift in organizational thinking could be led by human resource departments. In order to achieve this goal, HR departments must redefine their role in terms of crisis management, and then four key planning measures for insuring postemergency operations should be observed. Using system dynamics (SD) methodology, this article examines the causes of states in which organizations operate after terrorist attacks. Based on the qualitative analytic approach of causal loops, this article explores the major challenges for HR development prompted by terrorism. Specifically, we focus on changes both to organizational communication and to workforce planning and succession. These activities are a tremendous challenge immediately following a disaster. A functional HR plan must include elements for proactive alertness, the ability to dispatch inventory, evacuation plans, and record preservation coupled with dissemination to employees and explicit employee training and cross‐cultural management. © 2008 Wiley Periodicals, Inc.     

The implications of meta‐qualities for HR roles

A great deal has been written about the types of competencies that HR managers need. However, there is little known about how these might be acquired and which ones prove most valuable in carrying out HR tasks. This article provides insights into this issue from a study carried out in Ireland. The study examined HR managers' perceptions of the ways in which their competencies changed over the timespan of a management education process and the ways that they utilised these competencies within their work situations. The study suggests that the acquisition and development of ‘meta‐qualities’(Pedler et al, 1994) can be important to HR professionals in managing the complexity and ambiguity in their roles.     

Becoming an evidence‐based HR practitioner

Evidence‐based HR (EBHR) is a decision‐making process combining critical thinking with use of the best available scientific evidence and business information. We describe how to get started as an evidence‐based HR practitioner. Actively managing professional decisions is a key aspect of EBHR. Doing so involves making decisions, especially consequential or recurring ones, using practices supported by high‐quality research. We present a step‐by‐step set of approaches to becoming an evidence‐based HR practitioner: from getting started, through everyday practices and continuous learning to integrating EBHR into your organisation. In offering guidance for evidence‐based practice, this article underscores the connection between effective practice and organisational research.     

Does alignment matter? The performance implications of HR roles connected to organizational strategy

For the HR function to have a positive impact on performance and thus strategically add value to the organization, it has been suggested to redefine its traditional operational role. However, to gain a deeper understanding of the relationship between these HR roles and performance, their alignment with the organizational strategy should not be ignored. In this paper, we therefore focus not only on whether the operational and strategic HR roles are linked to performance, but also on the extent to which their alignment with the applied organizational strategy actually matters for performance. We carried out a survey study among 336 respondents either holding an HR function or being responsible for HR-related tasks in various organizations. We found a positive effect of the strategic role on performance, and also how it might substitute a lack of innovation strategy. Further, we found an alignment effect between a cost strategy and the operational HR role in relation to organizational performance. We discuss these findings based on the literature and provide some practical recommendations for further developing the role of HR.     

High‐performance work system implementation in small and medium enterprises: A knowledge‐creation perspective

While it is well established that high‐performance work systems (HPWSs) affect firm‐level outcomes within large, complex organizations, less is known about how they create benefits for firms within the small‐business sector. Using a knowledge‐creation perspective, this study examines the impact of HPWSs in small and medium enterprises and examines whether the impact observed depends on the small‐business leader's capacity to obtain additional HR knowledge from an external expert, as well as the leader's HR background and knowledge. Archival and survey data were obtained from 294 small‐business organizations, with survey responses obtained from both the small‐business leader and an HR consultant assigned to the small business. Findings suggest that leader perceptions of HR effectiveness are positively related to the use of HPWSs and that this relationship is moderated both by the communication patterns between the small‐business leader and the HR consultant assigned to the firm and the small‐business leader's HR knowledge. © 2012 Wiley Periodicals, Inc.     

Perceptions of the value of the HR function

This article explores the added value of the HR function as it is perceived by three groups of managers: top managers, HR managers and line managers. Despite the fact that literature about strategic HRM focuses almost exclusively on the value of the HR function as a strategic partner, it was assumed that its perceived value for the business would not be restricted to the area of strategy formulation and implementation. Several 'result domains' can be distinguished in which the HR function can deliver value to the business. Based on our review of the literature, the degree of strategic involvement of the function was used as a second perspective to investigate its perceived added value. To examine our propositions, a qualitative study was carried out in which 97 HR managers, 38 top managers and 178 line managers participated. The results confirm our thesis that the perceived value of the HR function contains more than just the fulfilment of its role as a strategic partner. Based on our results, an integrated model for the perceived value of the function has been developed.     

What determines the size of the HR function? A cross‐national analysis

What determines the resources allocated to an HR department? The antecedents of the size of HR departments within firms and the relationship between HR department size and the role that HR departments perform are issues of theoretical and practical importance. Using large‐scale survey data from organizations in Europe and Japan, this article explores the influence of nationality, size, and sector on the comparative ratio of HR specialists in organizations, and on the likely scope and brief of such departments. It also examines the internal organizational characteristics associated with HR department size. In contrast to previous literature on administrative components, we demonstrate that the human resources staff component is affected not only by organizational size but also by sector and national location. © 2006 Wiley Periodicals, Inc.     

Expectations,effectiveness and discrepancies: exploring multiple HR roles in the Chinese business context

One of the strategic issues in human resource management (HRM) research is the recognition of HR professionals' roles, yet how effective HR professionals are performing these roles has seldom been studied. This article conducts a two-phase study to explore the role expectations, role effectiveness and discrepancies of HR professionals in the Chinese business context. In the first phase, six roles in three domains were determined using a qualitative method. In the second phase, hypotheses were proposed and tested empirically. The results highlight that the value of role effectiveness is significantly lower than that of role expectation. In terms of perceptive discrepancies between HR and non-HR individuals, significant differences exist on the expectations of the roles in the strategic domain (i.e. facilitator and supporter), and also on the effectiveness of the roles in all three domains, except for that of facilitator in the strategic domain. The results also indicate that the effectiveness of each different role has a distinctive weighting in explaining the overall effectiveness of HRM, and that different groups hold diverse views on the relationship between role effectiveness and overall effectiveness.     

Organization and human resource professionals in transition

A critical issue confronting business management in the 1980s is how to successfully manage organizations and human resource issues at a time of rapid changes in markets, products, technology, and competition. These issues are aggravated by changing social values, government legislation, and international economics which impact on human resource managers even more. This article argues for a new type of professional, one who combines expertise in aligning the organization structure and culture with human resource systems and business strategy. The organization and human resource professionals (O&HR) role described is not totally new but a logical next generation extension of a role currently found at General Electric.     

Structure of teams—A cooperative game theory approach

One key task for HR departments and managers is to design the structure of teams in the firm. Two main dimensions when carrying out this decision are the size of the teams and the combination of specialized expertise within the team. In this article, we apply cooperative game theory to model this decision. First, we introduce production games. These games are an enhancement of team games and allow the modeling of teams. Together with the coalition structure approach of cooperative game theory, we analyze two standard situations of team theory.     

Employee retention: The secrets behind Wal‐Mart's successful hiring policies

One of the major concerns of any corporation, particularly a high‐growth business, is employee retention. Without minimizing the importance of roles such as compliance, diversity, compensation, and benefits, if the basic exercise of getting, keeping, and growing a company's talent is done well, the other HR functions will reflect this excellence. This article demonstrates Wal‐Mart's exceptional program for obtaining and retaining its employees and helping them grow within the company. © 2005 Wiley Periodicals, Inc.