Pride,prejudice and performance: relations between HRM,diversity and performance

Today, managing diversity is considered one of the main challenges for HRM in modern organizations. In this article, a framework is developed to suggest that the design and implementation of HRM activities should be influenced by strategic choices on the management of diversity which are themselves shaped by environmental factors. The HRM activities lead to four types of outcomes (affective, cognitive, symbolic and communicative) that affect individual, group and organizational performance. This framework is used to explore the effects of workforce diversity in two cases and to provide answers to three central questions: how does diversity influence the interactions in and the performance of diverse groups, and what is the relation between management diversity and other HRM policies in the two companies? The findings indicate that an organization's strategy for managing diversity influences both the process of meaning formation regarding diversity and the perception of performance effects. The availability of an organizational vocabulary and of instruments to interpret interactions in terms of diversity make a crucial difference. The stories and incidents from the two cases show how diversity affects both the daily interactions and the functioning of diverse groups.     

Exploring the relationship between HRM and firm performance: A meta-analysis of longitudinal studies

Existing literature on human resource management (HRM) practices and firm performance suggests that there is a positive association between the two variables. Most of the studies, however, are based on cross-sectional datasets and only few of them use panel or longitudinal datasets, which better allow the researchers to deal with problems of endogeneity. This paper draws on meta-analysis techniques to estimate the effect size of the relationship between high performance work practices (HPWPs) and firm performance measures based on the available longitudinal studies. We also examine whether the effect is greater for a combination of HPWPs than for individual HPWPs, and for operational performance than for financial performance. The results from statistical aggregation of eight longitudinal HRM-performance studies demonstrate an overall reported correlation of 0.287. Additionally we find that a set of integrated, mutually reinforcing HPWPs has a stronger impact on firm performance than do HRM practices individually and that, this effect is statistically invariant between operational performance and financial performance.     

The relationship between trust,HRM practices and firm performance

Numerous researchers have begun to examine organizational trust and its influence on the workforce. However, little empirical research has focused on the conditions that engender organizational trust – those that make managers more willing to accept the vulnerability inherent in certain managerial actions that are part of human resource management. This study evaluates the trust mechanism and the way HRM practices mediate its impact on improving organizational performance. One hundred and four HR managers from the leading companies in the Israeli industrial, service and trade sectors, based on sales and operating revenue, completed questionnaires. Overall, we found that HR managers are more likely to offer training and shape the internal promotion system when trust is high. In addition, we found that firms exhibited higher organizational performance when trust is high. The paper also presents some of the model's implications.     

Workplace innovation,employment relations and HRM: two electronics companies in South Korea

Analysing two electronics companies (unionized LG Electronics and non-union Samsung SDI) in Korea, the present paper investigates the impact of union status on workplace innovations and the effects of workplace innovations on organizational performance. Both case firms are considered highly innovative, model companies in terms of their sophisticated human resource management (HRM) and cooperative employment relations (ER). We first provide a conceptual framework and generate three propositions. The framework is composed of three main components: input, organizational system and output. The major findings include: (1) the adoption of high performance work organizations (HPWO) is highly dependent upon top management and union/employee representatives; (2) the two case firms adopted two different production modes (a team production mode in LG Electronics and a lean production mode in Samsung SDI); and (3) alignment among organizational design and work processes, ER systems and HRM systems would lead to high organizational performance. We also discuss the transferability of HPWO to other cultural settings in a universalism-contingency context.     

Alternative balanced scorecards built from paradigm models in strategic HRM and employment/industrial relations and used to measure the state of employment relations and HR system performance across U.S. workplaces

This paper constructs alternative balanced scorecards based on high‐performance work system (HPWS) and employment relations system (ERS) models. The models are depicted and compared in diagrams and used as framework skeletons for building separate HPWS and ERS scorecards, intended to provide a detailed data picture of the operational health and performance of an organization's employment/HR system and its operations, processes, and inputs/outputs. The scorecards are filled in with nationally representative data from 2,000+ U.S. workplaces using more than 50 employment/HR indicators, as reported by separate panels of managers and employees. The indicators for each workplace are aggregated into an overall HR/employment system score, ranked from low‐to‐high, and graphed as frequency distributions. These distributions provide a unique snapshot picture of the mean and dispersion of the state of employment relations and HR system performance for companies across the United State. They also reveal that “models matter” since the HPWS and ERS scorecards provide distinctly different evaluation assessments.     

The relationship between HRM avenues of political influence and perceived organizational performance

This article explores the relationship between the human resource management function's access to avenues of political influence and perceived organizational performance. We examine responses from 441 Australian senior HRM managers who participated in an online survey of a national HRM professional association. Drawing from political influence theory, we develop a model and related hypotheses to investigate the impact of opportunities for the HRM function to manage and control the shared meaning of HRM on perceived organizational performance. Although there was no evidence of a moderating effect of avenues of HRM political influence, CEO support and organizational support for HRM predicted perceived organizational performance. HRM representation on the board of directors appears to serve a symbolic function only. Theoretical and practical implications are discussed in response to the identified importance of CEO and organizational support. © 2007 Wiley Periodicals, Inc.     

The decentralisation of employment relations in the British public sector

The aim of this article is to investigate differences between the British public and private sectors in terms of the decentralisation of employment relations. Drawing on data from the 1998 Workplace Employee Relations Survey, the article arrives at three main conclusions. First, the analysis reveals that while local‐level managers in both sectors have similar levels of responsibility for employment relations issues, those in the public sector are, on the whole, significantly less likely to be able to exercise authority. Second, the results indicate some marked variations in practice within the public sector, with managers in education having the greatest level of authority. Finally, the article explores the extent to which differences in local‐level authority between the public and private sectors can be explained by higher‐level collective bargaining, and the presence of higher‐level personnel specialists. These factors have only a partial influence, and do not fully explain why local‐level employee relations managers in some areas (notably health) are less able to exercise authority than their counterparts in the private sector.     

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.     

The psychologisation of employment relations,alternative models of the employment relationship,and the OB turn

As part of this journal's provocation series, John Godard criticised the psychologisation of human resource management and expressed concern with the psychologisation of employment relations. This article uses four explicit frames of reference on the employment relationship to further explicate Godard's concern with the distancing of the field from questions about the structural nature of the employment relationship. This discussion is then extended to consider the magnifying implications of the turn within the field toward organisational behaviour research. Ultimately, the complexity of work and employment means that the field needs to be vigilant in embracing not only multidisciplinary but also multiperspective approaches rather than letting the field become excessively unitary.     

Algorithmic management and app‐work in the gig economy: A research agenda for employment relations and HRM

Current understanding of what constitutes work in the growing gig economy is heavily conflated, ranging from conceptualisations of independent contracting to other forms of contingent labour. This article calls for a move away from problematic aggregations by proposing a classification of gig work into three variants, all based strongly upon key technological features: app‐work, crowdwork, and capital platform work. Focusing specifically on the app‐work variant, this article's more delineated focus on the textured dimensions of this work proposes new lines of enquiry into employment relationships and human resource management. Examining the crucial role of algorithmic management, we critically discuss the impact of this novel mediation tool used by gig organisations for the nature of employment relations within app‐work, work assignment processes, and performance management. In so doing, we propose a series of research questions that can serve as a guide for future research in this increasingly important field.     

Age‐related differences in the relations between individualised HRM and organisational performance: a large‐scale employer survey

The current study aimed to investigate the relationship between individualised HRM practices and several measures of organisational performance, including the moderating role of employee age in these relationships. A large‐scale representative study among 4,591 organisations in the Netherlands showed support for the relationships between individualised HR practices with organisational performance. Employee age moderated the relationships between the use of individualised practices and sickness absence and turnover, such that organisations with a high percentage of older workers benefited from work schedule practices, and organisations with high percentage of younger workers benefited from development practices.     

HRM systems between control and commitment: occurrence,characteristics and effects on HRM outcomes and firm performance

In the literature, it is often assumed that traditional, control‐oriented HRM systems are increasingly being replaced by commitment‐based HRM systems because the latter generally result in higher firm performance. However, an HRM system's effectiveness may depend on an organisation's external and internal context, and neither control nor commitment HR systems are without disadvantages. Thus, the empirical validity of this claim is not clear ex ante. This paper analyses the empirical diffusion and determinants of control and commitment HRM systems in Germany as well as their impact on HRM outcomes and firm performance. The findings indicate that between the two extreme forms of high‐control and high‐commitment HRM systems, there are two hybrid forms (long‐term‐oriented control system and regulated commitment system) that combine elements of both ‘pure’ systems. Commitment HRM systems outperform the high‐control HRM system concerning many HRM outcomes and firm performance measures. However, in direct comparison, the high and the regulated commitment HRM systems do not show substantially different outcomes, indicating that there is no one best way.     

Lost in translation: exploring the link between HRM and performance in healthcare

Using data collected in 2004 from 132 Victorian (Australia) public healthcare providers, comprising metropolitan and regional hospital networks, rural hospitals and community health centres, we investigated the perceptions of HRM from the experiences of chief executive officers, HR directors and other senior managers. We found some evidence that managers in healthcare organisations reported different perceptions of strategic HRM and a limited focus on collection and linking of HR performance data with organisational performance management processes. Using multiple moderator regression and multivariate analysis of variance, significant differences were found in perceptions of strategic HRM and HR priorities between chief executive officers, HR directors and other senior managers in the large organisations. This suggested that the strategic human management paradigm is ‘lost in translation’, particularly in large organisations, and consequently opportunities to understand and develop the link between people management practices and improved organisational outcomes may be missed. There is some support for the relationship between strategic HRM and improved organisational outcomes. Implications of these findings are drawn for managerial practice.     

HRM and performance: the vulnerability of soft HRM practices during recession and retrenchment

This multi‐method case explores how change in HRM implementation can impact performance metrics in a recessionary climate. Qualitative HR outcome data are mapped against financial metrics to explore adoption of hard‐line HRM practices in a major UK retailer. Despite record profits throughout the recession, the organisation responded strategically to worsening conditions in the labour market, firstly to maintain operational flexibility, but then to opportunistically enlarge jobs and intensify work to help achieve immediate gains in financial metrics, including a gain of 37 per cent in profit per employee over 3 years. These gains were achieved by derailing commitment‐based approaches to HRM, pointing towards the vulnerability of soft HRM systems during times of austerity or retrenchment.     

Falling through the net: employment change and worker protection

Employment change in Britain highlights the limitations of collective bargaining and exposes the myth of protection afforded by ‘universal’ legal rights. This article explores the changes and these limitations, addressing the question of how protection might be extended to those workers currently ‘falling through the net’, in particular what is required of the trade unions.     

The tortoise and the hare: the impact of employment instability on firm performance

The main objective of this study is to assess the influence of employment instability on firm performance in a sample of publicly traded firms. Competing theoretical arguments are considered with regard to likely outcomes associated with employment instability. A large sample of cross‐sectional time‐series data is then analysed using generalised estimating equations (GEE) regression techniques. Results indicate that employment instability is negatively associated with firm performance, although the relationship is also demonstrated to be quadratic (an inverse U‐shaped relationship). This suggests that the main relationship varies depending upon the level of employment instability. Industry characteristics are also examined as moderators of this main effect. The results suggest a disordinal interaction effect for industry differentiation, where employment instability is negatively associated with firm performance for firms in highly differentiated industries and positively associated in less differentiated industries.     

A bridge over troubled water: Replication,integration and extension of the relationship between HRM practices and organizational performance using moderating meta-analysis

Meta-analyses on the relationship between human resource management (HRM) practices, as an aggregate and individually, and organizational performance has yielded mixed results, further fueling the theoretical debate among HRM scholars. To resolve this tension, we conduct a moderating meta-analysis of 89 primary studies to replicate, integrate and extend prior work. Comparing the variance explained by differences in HRM practices versus those explained by contextual and empirical factors indicates that context and research design have a strong influence on the relationship between HRM practices and performance. Despite the voluminous research on this issue, the differences in the relationships of various HRM practices explains only 4% of the variance in performance, whereas, societal context, industry sector and firm size explain 33%, 12% and 8%, respectively. Empirical contingencies including four categories of performance outcomes and four types of participants explain 13% and 9% of the variance in the results, respectively. Thus, our findings provide strong support for the contingency theory. The theoretical and empirical implications for future research in the area are discussed.     

Trust as moderator in the relationship between HRM practices and employee attitudes

The study contributes to the debate in the HRM literature by examining the role of trust in management in moderating the effect of HRM practices on employee attitudes. The novelty of the study lies in our interest in assessing this relationship not only on a system of HR practices, but also considering whether the influence varies according to specific ‘bundles’ of practices. Adopting a Structural Equation Modelling approach, we first test the moderation using an HRM index of seven practices on a sample of 9,000 employees from 46 Italian organisations. Then, following the AMO approach, we assess the relationship on three ‘bundles’ of practices, one oriented to increasing ability, another motivation and the third opportunity to participate. Results confirm the moderation with the overall HRM index. Interestingly, the effect varies depending on the HR bundles, being significant only with the motivation practices and not relevant in the other two bundles.