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.     

Employee performance,well‐being,and differential effects of human resource management subdimensions: Mutual gains or conflicting outcomes?

The human resource management (HRM) literature supports the idea that coherent systems of HRM practices can induce attitudinal effects when perceived subjectively by employees. Recently, scholars have proposed that subdimensions of HRM systems exist and account for variance in outcomes. This study explores differential effects of three subdimensions of HRM systems (skill‐, motivation‐, and opportunity‐enhancing HRM practices) on employee innovative behaviours and well‐being. Our predictions are based on the mutual gains perspective, which specifies positive relationships between HRM practices and employee performance, and the conflicting outcomes perspective that links HRM practices to higher job demands and stress. Using data from the Finnish 2012 Practices of Working Life Survey, we find support for both the mutual gains and conflicting outcomes perspectives; however, we also show that the effects of the subsets of HRM practices are heterogeneous.     

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

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

High involvement management,high-performance work systems and well-being

Studies on the impact of high-performance work systems on employees' well-being are emerging but the underlying theory remains weak. This paper attempts to develop theory of the effects on well-being of four dimensions of high-performance work systems: enriched jobs, high involvement management, employee voice, and motivational supports. Hypothesized associations are tested using multilevel models and data from Britain's Workplace Employment Relations Survey of 2004 (WERS2004). Results show that enriched jobs are positively associated with both measures of well-being: job satisfaction and anxiety–contentment. Voice is positively associated with job satisfaction, and motivational supports with neither measure. The results for high involvement management are not as predicted because it increases anxiety and is independent of job satisfaction.     

Front‐line managers as agents in the HRM‐performance causal chain: theory,analysis and evidence

Research on the link between HRM and organisational performance has neglected the role of front‐line managers, yet it is these managers who are increasingly charged with the implementation of many HR practices. Using an employee survey in 12 ‘excellent’ companies we explore the extent to which employee commitment towards their employer and their job are influenced by the quality of leadership behaviour and by satisfaction with HR practices. Both have a strong effect on employee attitudes. The article concludes with a case study of a planned effort to improve front‐line managers' skills in people management.     

A meta‐analytic investigation of the relationship between HRM bundles and firm performance

Human resource management bundles consisting of multiple complementary practices are typically considered superior to individual best practices in influencing firm performance. This study investigates the relationship between three such bundles (empowerment, motivation, and skill‐enhancing) and business outcomes (retention, operating performance, financial performance, and overall performance ratings). A meta‐analysis of 239 effect sizes derived from 65 studies reveals that HRM bundles have significantly larger magnitudes of effects than their constituent individual practices, are positively related to business outcomes, and display effect sizes that are comparable to or larger than those of high‐performance work systems. These findings reaffirm the case for firm‐level investments in synergistic HRM combinations and highlight the importance of investing in complementary practices. © 2009 Wiley Periodicals, Inc.     

Customer service-focused HRM systems and firm performance: evidence from the service industry in Taiwan

Abstract

This study adopts a resource-based view, attraction–selection–attrition theory and a focused approach to examine the link between service-focused human resource management (HRM) systems and firm performance. Internally, we examine employee competency as the ‘black box’ between service-focused HRM systems and firm performance. Externally, we examine the effect of the interplay of a service-focused strategy and service-focused HRM systems in predicting firm performance. We collect data from different sources (i.e. executives, human resource members, and line managers). Using a final sample included 2120 respondents from 175 firms in the service industry in Taiwan, the results show that customer service-focused employee competency transmitted 53% of the effect of customer service-focused HRM systems on firm performance. In addition, when a firm implements a less service-focused business strategy, service-focused HRM systems leads to significant improvement in firm performance. Implications for research are discussed.     

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.     

HRM Systems for Knowledge Workers: Differences Among Top Managers,Middle Managers,and Professional Employees

This theoretical study contributes to the debate in the field of strategic HRM on whether HRM systems should differ across employee groups within the firm. It explores differences in the efficacy of two HRM systems—high‐involvement HR and internal labor market systems—across top management teams, middle managers, and professional employees. In addition, it examines factors that may prevent the adoption of effective HRM systems for these groups of knowledge workers. A model is proposed depicting how four job‐level moderators influence the HRM‐performance relationship and how these moderators apply to each of the three employee groups. Short‐term performance pressures and favoritism in staffing are proposed as factors that may hinder the adoption of effective HRM systems. Finally, HRM systems for different employee groups are classified based on their gains potential and barriers to implementation, yielding four categories of strategic HRM activity metaphorically labeled low‐hanging fruits, high‐hanging fruits, peanuts, and barren land. © 2013 Wiley Periodicals, Inc.     

HRM Practices,Organizational Citizenship Behaviour,and Performance: A Multi‐Level Analysis

We examine the relationship between HRM practices, conceptualized at the workplace level, and individual employee attitudes and behaviour. We focus on two possible explanations for the relationship: social exchange and job influence/employee discretion. Findings from a study of employees in North‐East England suggest that there is a positive impact of HRM practices on organizational citizenship behaviour, through an effect on perceived job influence/discretion. There was no such effect for perceived organizational support. These findings provide support for a job influence and opportunity explanation of HRM effects on employee attitudes and behaviour.     

How the impact of HR practices on employee well‐being and performance changes with age

With changing retirement ages and an aging workforce, interest is growing on the potential contribution of relevant bundles of HR practices in eliciting well‐being and performance among aging workers. Drawing on theories on lifespan development and self‐regulation, we distinguished two bundles of HR practices: development HR practices that help individual workers reach higher levels of functioning (e.g. training), and maintenance HR practices that help individual workers maintain their current levels of functioning in the face of new challenges (e.g. performance appraisal). Further, based on lifespan theories, we expected and found that the association between development HR practices and well‐being (i.e. job satisfaction, organisational commitment and organisational fairness) weakens, and that the associations between maintenance HR practices and well‐being, and between development HR practices and employee performance, strengthen with age. In addition, a third bundle of ‘job enrichment’ HR practices emerged that elicited higher job performance among aging workers.     

Job demands–resources: a gender perspective on employee well-being and resilience in retail stores in China

Abstract

Organisational resilience can be promoted through human resource management (HRM) practices that enhance individual employees’ well-being and ability to cope with adversity. However, the extant literature tends to neglect the influence of gender on employee well-being and resilience. Shop floor employees in retail stores often undertake demanding roles, characterised by considerable pressure and low pay, and attendant high levels of employee turnover. Drawing on the job demands–resources model, by analysing data collected from 697 employees at foreign-invested retail stores in China, this paper found that workload and employee participation in decision-making had a similar impact on the well-being of both male and female employees. However, the impact of job security and emotional demands on employees differed by gender. This paper extends the job demands–resources model by articulating the influence of gender on employee well-being. Additionally, its empirical insights, drawn from an emerging economy context, enable a contribution to the literature on employee well-being and resilience. Relevant implications for HRM and resilience are discussed.     

A multilevel examination of skills‐oriented human resource management and perceived skill utilization during recession: Implications for the well‐being of all workers

This article examines whether organizations can enhance employee well‐being by adopting human resource management (HRM) practices strategically targeted to improve skill development and deployment in a recessionary context. Employee skill utilization is proposed as the mediating mechanism between HRM practice and well‐being. The role of workplace skill composition is also examined as a boundary condition within which HRM differentially impacts employee outcomes. Using a nationally representative survey of UK workplaces (Workplace Employment Relations Survey 2011) and matched management and employee data, the analysis focused on organizations that had implemented some recessionary action following the 2008–2009 global financial and economic crisis. The findings show that human capital enhancing HRM and enriched job design positively influenced both job satisfaction and work‐related affective well‐being through increased employee skill utilization. Organizations with predominantly high‐skilled workforces were more likely to adopt these skills‐oriented HRM practices. Nevertheless, the effects of HRM on employee outcomes via skill utilization applied across organizations, regardless of workforce skill composition. The findings demonstrate employee skill utilization as a driver of HRM outcomes and the sustainability of “best practice” HRM arguments across all skill levels, even in the face of recession.     

Control and commitment HR practices,job satisfaction and turnover intentions: a comparison between local and multinational firms in China

There is a growing body of literature and debate around control versus commitment human resource management (HRM) systems and their impacts on employees. However, the impacts of these constructs have not been widely examined in more emerging economies. Taking a specific sample of educated professionals working for multinational and local firms in China, this study investigated employee perceptions of control and commitment HR practices, job satisfaction and turnover intentions. A total of 311 respondents completed a structured survey questionnaire. Results revealed that those working for multinational firms reported more positive perceptions of their employers' control and commitment HR practices. In multinational firms, the use of commitment HR practices predicted lower intentions to leave. However, in domestic firms a lack of control HR practices predicted higher turnover intentions. Theoretically, the study adds to discussions about the nature and roles of these constructs, their impacts on HR outcomes and how institutional mechanisms might shape the degree of HRM homogeneity and hybridity across organizations in China. Practically, the study provides guidance to international and local firms on how to improve their HRM effectiveness to achieve a higher retention of their most talented professionals.     

High involvement work system,work–family conflict,and expatriate performance – examining Taiwanese expatriates in China

This study explores the effects of multinational companies (MNC) implementation of a high involvement work system (HIWS) for their expatriates on both expatriate work–family conflict (WFC) and their performance. We surveyed 174 Taiwanese expatriates stationed in China. Data were collected on: (1) perceived human resource management (HRM) practices concerning ‘high involvement work system’; (2) perceived work–family conflict; (3) job satisfaction; and (4) supervisor ratings of expatriate job performance. Structural modeling techniques helped us examine in one model the interdependent relationships among high involvement work system, work–family conflict, and expatriate performance in their host country. Our results show that a high involvement work system is positively related to expatriate satisfaction and performance. However, a high involvement work system is also positively related to expatriate work-family conflict, which in turn is negatively related to expatriate satisfaction and performance. Our findings remind managers that a high involvement work system may produce multiple effects on various dimensions of employee work life, and not all of these effects may be positive.     

Top management leadership,employee empowerment,job satisfaction,and customer satisfaction in TQM organizations: an empirical study

Top management leadership and employee empowerment are considered two of the most important principles of total quality management (TQM) because of their assumed relationship with customer satisfaction. As a result, many top management leadership and employee empowerment strategies and practices have been suggested in the management literature. However, few studies have been done to test this assumed relationship and determine which of these strategies and practices may be most effective in bringing about the intended results. This study surveyed organizations that have adopted TQM to determine the relationship between top management leadership, employees' empowerment, job satisfaction, and customers' satisfaction. The results reveal positive correlation between top management leadership, employee empowerment, job satisfaction, and customer satisfaction. Employee empowerment and improved levels of job satisfaction are facilitated by top management leadership and commitment to the TQM goal of customer satisfaction by creating an organizational climate that emphasizes total quality and customer satisfaction. Effective strategies for achieving employee empowerment and job satisfaction, together with top management leadership roles in a TQM environment, are identified and discussed.     

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.     

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.     

Disability status,individual variable pay,and pay satisfaction: Does relational and institutional trust make a difference?

Although prior research suggests that disabled employees have different needs in the context of some HRM practices, we know little about their reactions to reward systems. We address this gap in the literature by testing a model using the 2011 British Workplace Employee Relations Survey (disabled employees, n = 1,251; nondisabled employees, n = 9,959; workplaces, n = 1,806) and find that disabled employees report lower levels of pay satisfaction than nondisabled employees, and when compensated based on individual performance, the difference in pay satisfaction is larger. We suggest that relational (derived from trust in management) and institutional (derived from firm‐wide policies and HRM practices, both intended to provide equitable treatment to disabled employees) forms of trust play important roles. The results of multilevel analyses show that when trust in management is high, the difference in pay satisfaction under variable pay is reduced. We find just the opposite for employees who work in organizations with a formal disability policy but without supportive HRM practices; the gap in pay satisfaction is exacerbated. However, the combination of the presence of a firm‐wide policy and HRM practices reduced the difference in pay satisfaction. Implications of the findings for theory, future research, and management practice are discussed.     

Human resource management and organizational performance of small and medium enterprises (SMEs) in Nigeria

The link between human resource management (HRM) and firm performance of organizations has received significant research attention, generally focused on large firms from developed countries to the omission of studies focused on small and medium enterprises (SMEs) and those from developing countries. This study partially addresses this gap in the literature. We investigated the relationship between HRM practices and the financial (FIN) and non-financial performance (NONFIN) of SMEs in Nigeria. A survey design with 236 respondents was used to test the hypotheses. Multiple regression results showed that human capital development and occupational health and safety had a direct relationship with NONFIN, and employee performance management and NONFIN on FIN performance. HRM practices as a group accounted for 16% of the variance in NONFIN and 12% of the variance in FIN. Regression analyses controlled for size and age of the firm. This study partially supports a model of positive relationships between certain HRM practices and firm performance.