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.     

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.     

Employees as Active Consumers of HRM: Linking Employees’ HRM Competences with Their Perceptions of HRM Service Value

Recognizing the importance for companies of having high‐quality employment relationships with employees, previous studies have sought to explain the variability in employees’ perceptions of HRM service value. However, most of these studies view employees as inactive in employment relationships and, therefore, do not consider whether employees’ own attributes affect their perceptions of HRM service value. In accepting the alternative notion that consumers create value “in use,” the current study regards employees as active consumers of HRM practices, and so examines the extent and way in which employees’ HRM competences (i.e., knowledge, skills, and abilities) explain the variability in HRM service value. Based on data collected from 2,002 employees in 19 companies in the Netherlands, a positive relationship has been found between employees’ HRM competences and their perception of HRM service value, albeit one that is mediated by the perceived quality and nonmonetary costs of HRM services. The main implication of our findings is that employees should be seen as active agents in employment relationships who, through coproducing and consuming HRM services as well as leveraging their knowledge and skills, influence the value of HRM services and have the potential to increase or undermine the outcomes of the employment relationship. © 2015 Wiley Periodicals, Inc.     

A Framework For Work‐Life Instruments: A Cross‐National Review

Recently there has been growing attention paid by practitioners to the need for effective measurement of the contribution of work‐life management initiatives to both financial and nonfinancial performance objectives and to organizational effectiveness overall. We review a range of performance indicators, criteria, and indices that are used in a variety of countries to measure the performance of work‐life initiatives. Using insights from research as a theoretical foundation, we present a framework for organizations to use when developing metrics for work‐life measurement that comprise the four dimensions of planning and alignment, customization, supportive culture, and demonstrated value. Finally, we offer recommendations for research and practice related to measurement of work‐life initiatives to assist scholars, managers, employees, and communities. © 2014 Wiley Periodicals, Inc.     

A Meta‐analytic Integration and Test of Psychological Climate Dimensionality

There is no consensus as to what constructs should be considered to be psychological climate. Further, there is no clear taxonomy of psychological climate, although the climate literature suggests that psychological climate perceptions should form higher‐order (i.e., abstract, broad) dimensions. Two meta‐analyses have been conducted to evaluate higher‐order frameworks, but neither study tested the psychometric structure of their hypothesized models. The current meta‐analysis estimated the intercorrelations and criterion‐related validity of 23 psychological climate constructs in order to test the theoretical frameworks proposed by prior meta‐analyses. Confirmatory factor analyses supplemented by a method analogous to item‐to‐scale correlations indicated little empirical support for the a priori frameworks. Results suggest that that psychological climate may be parsimoniously represented by two dimensions. Task climate was most strongly indicated by supervisor goal setting, innovation, and organizational responsiveness. Relational climate was most strongly indicated by work group warmth and social rewards. A path analysis was estimated to test whether job satisfaction partially mediated the association between psychological climate and the outcomes of job performance, turnover intentions, and psychological well‐being. Results provide guidance to researchers and practitioners interested in measuring perceptions of the work environment. © 2014 Wiley Periodicals, Inc.     

Commitment to Sustainability in Small and Medium‐Sized Enterprises: The Influence of Strategic Orientations and Management Values

Ecosystem degradation and social sustainability have become important issues in the corporate sphere during the last few decades. However, research discussing corporate social responsibility and related concepts has often focused on larger companies, sometimes neglecting the specifics of small and medium‐sized enterprises (SMEs). The main purpose of this study is to examine the relationships between two common strategic orientations, market orientation (MO) and entrepreneurial orientation (EO), in relation to sustainability commitment, sustainability practices and management values in SMEs. Questionnaire responses from 450 Swedish SMEs were analyzed, confirming the influence of MO, EO and sustainability practices on commitment to sustainability, implying that firms committed to sustainability see both market and entrepreneurial advantages of sustainability. The results also show that different parts of MO and EO differ in importance for commitment to sustainability among SMEs. Implications concern the importance for firms and policymakers to work with sustainability issues using both internal and external perspectives. © 2015 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd     

Off the Mark: Response to Kaufman's Evolution of Strategic HRM

Professor Bruce Kaufman's look back at two seminal books published at the beginning of the strategic HRM field and examination of two recent books to trace the evolution of the field identifies some issues, but ones with which the field has dealt for a number of years. His choice of our book HRM and Performance provided the wrong target, and consequently his analysis seemed to miss the mark. © 2015 Wiley Periodicals, Inc.     

Making Good Things Last Longer: The Role of Savoring on the Relationship Between HRM and Positive Employee Outcomes

This work studies sales managers’ perceptions of performance‐oriented HR practices, and the mediating and moderating processes through which these practices are linked with affective commitment. Specifically, we tested whether work engagement mediated the relationship between perceptions of performance‐oriented HR practices and affective commitment using a sample of 117 sales managers from one large retail store. Furthermore, we tested whether managers’ savoring strategies would moderate the positive relationship between perceptions of performance‐oriented HR practices and work engagement, and if the strength of the hypothesized indirect effects were conditional on the use of savoring strategies. Results showed that the relationship between perceptions of performance‐oriented HR practices and affective commitment was mediated by work engagement. In addition, savoring strategies were found to moderate the relationship between perceptions of performance‐oriented HR practices and work engagement, so that the highest levels of work engagement were found in individuals who reported high perceptions of performance‐oriented HR practices and high use of savoring strategies. Finally, results support a conditional indirect effect of performance‐oriented HR practices on predicting affective commitment via work engagement when levels of savoring strategies were moderate to high, but not when their use was low. Altogether, these results demonstrated that work engagement and savoring strategies represent key elements in explaining how perceptions of performance‐oriented HR practices are associated with affective commitment. © 2015 Wiley Periodicals, Inc.     

Understanding Employees’ Perceptions of Human Resource Practices: Effects of Demographic Dissimilarity to Managers and Coworkers

Strategic HRM researchers have increasingly adopted an employee perspective to understand the influence of HR practices on employee outcomes and have called for studies to explain variability in employees’ perceptions of HR practices. To address this research need, we used the social information processing perspective to examine the contextual influence of managers and coworkers on employees’ perceptions of HR practices and explore demographic dissimilarities as boundary conditions of the contextual influence. Conducting research in two organizational settings, we found that both manager‐perceived and coworker‐perceived HR practices were positively related to employees’ perceptions of HR practices. The results also revealed that employee demographic dissimilarity to coworkers in terms of age and organizational tenure weakened the positive relationship between coworker‐perceived and employee‐perceived HR practices. However, the relationship between manager‐perceived and employee‐perceived HR practices was not influenced by demographic dissimilarities. © 2015 Wiley Periodicals, Inc.     

Standardize or Customize: The Interactive Effects of HRM and Environment Uncertainty on MNC Subsidiary Performance

This study examines the impact of customizing (as opposed to standardizing) human resource management (HRM) practices on subsidiary performance in multinational corporations (MNCs). We examine how this relationship is influenced by environmental uncertainty. Hypotheses were tested using data from 92 subsidiaries of a large MNC operating in 27 countries. The results showed an interactive relationship between the customization of HRM practices and subsidiary environmental uncertainty on both financial (net profit) and nonfinancial (customer satisfaction) objective measures of subsidiary performance. The results of this study provide important empirical insights for researchers and practitioners into how HRM can be best configured to drive multiple performance outcomes for MNC subsidiaries. © 2014 Wiley Periodicals, Inc.     

Theory‐driven development of a comprehensive turnover‐attachment motive survey

Recent studies propose a theoretical framework of “eight forces” that purportedly captures all the distinct motives causing voluntary turnover decisions. Based on this framework, we develop the Turnover‐Attachment Motive Survey (TAMS) consisting of 18 scales, the most comprehensive model‐based turnover antecedent survey to date, facilitating more fully specified research models and more systematic diagnoses of turnover causes. Moreover, findings support behavioral inertia against quitting, psychological dissonance costs of quitting, supervisor continuance attachment, and coworker continuance attachment as significant predictors of turnover behavior for the first time in the literature. Overall, findings do suggest that our 18‐scale survey demonstrated adequate psychometric properties to justify its further use and development. We finally discuss the many uses of the TAMS for both turnover researchers and practitioners. © 2012 Wiley Periodicals, Inc.     

Unravelling the HRM–Performance Link: Value‐Creating and Cost‐Increasing Effects of Small Business HRM*

abstract The majority of empirical studies on the HRM–performance link report a positive story. The costs associated with the productivity rise due to high performance work practices (HPWP) have been largely neglected. The purpose of this study is to develop a conceptual framework that maps both the value‐enhancing and cost‐raising impact of HPWP. In addition, we want to pronounce upon their overall effect on financial performance. To test our model, we rely on a sample of small businesses. Understanding both performance and cost‐related effects of the implementation of HPWP is particularly valuable for small businesses since they often lack financial resources to implement HPWP and benefit less from economies of scale compared to their larger counterparts. Study results indicate that although greater use of HPWP is associated with increased productivity, this effect is offset by increased labour costs. However, we find an overall positive effect of HPWP on firm profitability.     

HRM at a Crossroads: Comments on “Evolution of Strategic HRM Through Two Founding Books: A 30th Anniversary Perspective on Development of the Field”

I agree with Bruce Kaufman's evaluation of the HRM field and the danger to its relevance if change does not take place in the field's almost exclusive use of normal science, lack of focus on organizational change and development and indifference to the development of useful and usable knowledge. I use the development of the Harvard Business School's first‐ever required course in HRM and Managing Human Assets, the book that grew from the course, to illustrate why and how the strategic HRM perspective of the book emerged. I go on to argue that we do not need more proof that HRM practices are associated with financial performance. The best CEOs already believe this, though they need knowledge and practices that will enable them to develop a positive sustainable HRM system. HRM research, both normal and action science, must answer the question of how a “great” HRM system—practices, leadership, organization design, culture, and change processes—might be developed over time (its takes years) and how great companies can avoid the liquidation of intangible assets in the face of pressures for short‐term performance. I describe my own work to illustrate the future direction HRM should take methodologically and conceptually. © 2015 Wiley Periodicals, Inc.     

Explaining organizational responsiveness to work‐life balance issues: The role of business strategy and high‐performance work systems

This article applies new insights into business strategies and high‐performance work systems (HPWSs) to examine why organizations adopt work‐life balance programs (WLBPs). Results indicate that a product leadership business strategy is positively related to the likelihood of adopting WLBPs, whereas a cost leadership business strategy is negatively related to the adoption of these programs. Moreover, our analyses establish a mediating role of HPWSs in the relationship between business strategies and the adoption of WLBPs. Our results also demonstrate that different industries vary in adoption of work‐life balance programs. This supports the institutional theory of organizational responsiveness to work‐life balance issues. We tested our hypotheses with two waves of the nationally representative Canadian Workplace and Employee Survey. Implications and specific suggestions for human resource practitioners are discussed. © 2012 Wiley Periodicals, Inc.     

Establishing HR Professionals’ Influence and Credibility: Lessons from the Capital Markets and Investment Banking Sector

Through two separate studies involving 47 interviews inside 22 institutions in the capital markets and investment banking sector, we explore the levels of influence and sources of credibility for senior HR professionals, and examine the challenges they face in establishing credibility. We compare these findings against previous research, which has identified several determinants of HR’s influence and credibility. Our findings confirm that HR’s modest influence is contingent on the predispositions and convictions of key stakeholders, notably the CEO, but also depends on the decision being taken. We find that the basis for senior HR professionals’ credibility is more individual than institutional, and that HR professionals and senior business managers differ in the priorities they assign to credibility determinants. Finally, the studies illuminate an enduring inherent tension for HR in establishing credibility, between servicing their internal clients’ needs and retaining a level of independence. We reflect upon the transient nature of HR credibility in this sector and others. © 2014 Wiley Periodicals, Inc.     

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.     

Business Strategy,HRM Practices and Organizational Performance: A Study of the Indian Software Industry

ABSTRACT

Human resources and human resources management system create competitive advantage in today's global market economy that provides wider access to technology, finance and other resources. HRM research has set a new trend with its linkage process with business strategy and organizational performance to find a place for the profession and add value to the organization. This paper intends to unveil the business strategic models, HRM practices and organizational performance in Indian software companies. The study has found that there is a significant difference among HR practices in software companies in India based on Miles and Snow's strategic types, viz., prospectors, defenders, analyzers and reactors. Although reactors showed their difference from other strategic types, no significant difference was found among three proactive strategic types, viz. prospector, defender and analyzer. With regard to performance analysis, it was found that prospectors have a comparative advantage over other strategic types in almost all performance parameters. Although incentives and stock options have a greater overall impact on performance parameters, there is a lot of difference among factors that influence organizational effectiveness in three proactive strategic types.     

Reducing intentions to resist future change: Combined effects of commitment‐based HR practices and ethical leadership

Change management, and particularly the human side of change, is a central tenet of the strategy of contemporary organizations. However, there is little evidence concerning how strategic HR practices influence how individuals anticipate and react to the implementation of a major change and how direct supervisors influence that process. With a sample of 191 employees from multiple organizations, who completed two surveys with a four‐week lag, we examined the role of commitment‐based HR practices on employees’ intentions to resist future change. We found that commitment‐based HR practices contribute to a decrease in intentions to resist future change, measured four weeks later, via increased affective commitment to change. Moreover, we found that this relationship is conditional on ethical leadership, in that it is significant when ethical leadership is high but not when it is low. Building on social exchange and uncertainty reduction theories, our findings contribute to the literature by examining how and under what boundary conditions HR practices are an effective means for organizations to anticipate and manage change.     

A Contingency Approach to the Employment Relationship: Form, Function, and Effectiveness Implications

In the United States, the at-will doctrine purports to give employers the right to terminate employees with or without notice or good cause. However, numerous exceptions have made protection afforded by the doctrine illusory, and wrongful termination litigation often results. Other countries such as Canada and New Zealand legally prohibit at-will employment, and require reasonable notice or justification when terminating employees. On the basis of comparison of nonunion employment in those countries with that typical in the United States, we examine alternative approaches to employment relationships (independent contractor, employee rights, and at-will), and offer suggestions for choosing among them strategically based on environmental contingencies, work characteristics, and outcomes valued by a given firm. Although the choice may be limited by law in some jurisdictions, we offer a more systematic approach for U.S. firms wishing to deal with the consequences of terminations proactively as part of their overall strategic planning process.     

A comparison of adverse impact levels based on top‐down,multisource, and assessment center data: Promoting diversity and reducing legal challenges

We compared levels of adverse impact (AI) against minorities and women based on three promotional decision methods for 428 associate store managers of a Fortune 500 retailer: top‐down appraisal (TDA), multisource appraisal (MSA), and an assessment center (AC). We found significant effects for race and minority status (favoring whites) but no significant effects for gender across all three methods. Comparisons were analyzed using two definitions of AI (four‐fifths rule and the Fisher Exact Test) with a selection ratio (SR) of .25. No evidence of AI was found against blacks for any of the methods. For Hispanics, AI was found under the four‐fifths rule for the AC. For women, the four‐fifths rule was violated using TDA. Results provide some partial support for the argument that diversity goals are more likely to be met using assessment centers compared to TDA when the preponderance of raters are white men. Our data also suggest that carefully crafted, job‐related, top‐down appraisal, combined with rater training, may be effective in facilitating the promotion of more women and minorities and reducing the probability of legal problems. © 2012 Wiley Periodicals, Inc.