Mapping the relationships between high-performance work systems,employee resilience and engagement: a study of the banking industry in China

Abstract

There is now growing interest in employee resilience in the organizational context and its contribution to organizational performance. However, little is known the extent to which high-performance work systems (HPWS) contributes towards enhancing employee’s resilience as well as their levels of engagement. This study examines the relationships among HPWS, employee resilience and engagement, using a sample of 2040 employees in the Chinese banking industry. Drawing on the job demands-resources model and strategic/high-performance human resource management theory, we develop three hypotheses to test the relationship between HPWS and employee resilience, resilience and employee engagement, and the mediating effect of resilience on the relationship between HPWS and engagement. All hypotheses are supported and suggest that HPWS can be used as a job resource to positively affect resilience and subsequently employee engagement. The key message of the paper is that employee resilience can be viewed as a set of skills and attributes that can be developed through the effective use of HPWS to benefit both individuals and the organization.     

Employee perceptions of HR practices: A critical review and future directions

Abstract

Scholars are directing more attention to employee perceptions of human resources (HR) practices and have explored issues such as whether and how employees’ idiosyncratic or collective perceptions of HR practices shape employee outcomes. To further this area of research, we seek to determine what authors mean when they refer to “employee perceptions of HR practices”. We review 105 articles from leading human resource management journals and find that employee perceptions of HR practices is not a monolithic concept. Rather, following previous scholars, we identify three distinct components of employee perceptions of HR practices: the ‘what’, ‘how’, and ‘why’. We critically summarize extant literature on these three components of employee HR perception and propose future research directions, including enriching the theoretical foundations of HR communication, embracing cross-national contexts, and enhancing practical relevance.     

Where hukou status matters: analyzing the linkage between supervisor perceptions of HR practices and employee work engagement

This paper highlights the interaction between intended human resource (HR) practices as perceived by supervisors and status similarity between supervisors and employees as a key source of variation in employee work engagement among 298 employees reporting to 54 supervisors at a luxury Chinese hotel. Using a multi-level, process-oriented approach to examine the relationship between intended HR practices by supervisors and engagement as perceived by employees, we show (1) that the interaction of supervisor perceptions of HR practices and supervisor–subordinate hukou (place of origin) status similarity is positively related to employee reports of Leader–member exchange (LMX), HR practices and work engagement; (2) that the interaction of supervisor perceptions of HR practices and hukou status similarity influences employee perceptions of HR practices through LMX; and (3) that the interaction of supervisor perceptions of HR practices and hukou status similarity influences work engagement through employee perceptions of LMX and HR practices. Theoretical and practical implications are discussed.     

Learning organization and work engagement: the mediating role of employee resilience

Abstract

As automation and structural transformations mark the new digital realities of the twenty first century, contemporary organizations demand a highly resilient and engaged workforce to sustain their competitive edge. Despite an eminent literature revolving around learning organization in the management discourse, there is a lack of research investigating the effect of learning organization on employee resilience and work engagement. With this precept in mind, this study developed and tested a mediation model linking learning organization to employee resilience and work engagement. The present study draws on the tenets of Fredrickson’s broaden-and-build theory and conservation of resource theory for supporting the study results. This study used cross sectional surveys of 300 IT professionals in India. Structural equation modeling was used for empirically testing the study hypotheses. Additionally, the study utilized Preacher and Hayes mediation analyses to investigate the mediating effect of employee resilience on the relationship between learning organization and work engagement. The results revealed significant relationship between variables of the study and shows that learning organization positively effect employee resilience and work engagement. The findings suggest that employee resilience partially mediate the effect of learning organization on work engagement. This study offers concrete insights to HR managers for fostering employee resilience which in turn can play a key role in building a highly engaged workforce. Future implications for theory and HRM practitioners are discussed.     

Revitalizing social dialogue in the workplace: the impact of a cooperative industrial relations climate and sustainable HR practices on reducing employee harm

Abstract

The purpose of the present study is to unravel the relationship between current forms and realities of social dialogue in the workplace, the industrial relations climate, HRM, and employee harm. We tested a model specifying associations between (1) indicators of revitalized social dialogue, (2) perceived cooperation within the industrial relations climate, (3) perceived sustainability in HR practices, and (4) management perceptions regarding employee harm. The test was based on a survey conducted among 356 (HR-)managers and CEOs in Belgium. The results support the idea that a cooperative industrial relations climate and sustainable HR practices can reduce employee harm. More specifically, efficiency in social dialogue fully mediated the relationship between cooperative industrial climate and employee harm. In turn, industrial relations climate partially mediated the relationship between sustainable HR practices and employee harm. Finally, sustainable HR practices correlated positively with a cooperative industrial relations climate, suggesting that HR and employee relations reinforce rather than weaken each other.     

Perceptions of HR practices and innovative work behavior: the moderating effect of an innovative climate

Abstract

The purposes of this paper are to explore the effect that perceived HR practices have on the innovative work behavior (IWB) of individual workers and to examine the role that an innovative climate plays in this relationship. We hypothesize that employees will show greater IWB if they perceive the organizational climate to support innovation and perceive the presence of HR practices related to a compensation system, training and development, information sharing, and supportive supervision. Using data from 463 individuals in four Dutch manufacturing companies, the study tests the effects of employees’ perceptions of HR practices and of an innovative climate on their innovative behaviors. We found that employee perceptions of a compensation system are negatively related to IWB, and that employee perceptions of information sharing and supportive supervision are positively related to IWB. The effect of perceptions of information sharing and training and development on IWB are moderated by an innovative climate, in such a way that information sharing has a stronger effect on IWB and training and development a weaker one. Managers can stimulate innovative behavior by investing in information sharing, supportive supervision, and establishing an innovative climate.     

The paradox of employee psychological well-being practices: an integrative literature review and new directions for research

Abstract

It is well established that many HR practices aimed at increasing employees’ psychological wellbeing (PWB) and organisational performance conflict and even contradict one another. We address this long-standing issue by undertaking an innovative integrative literature review using the paradox metatheory as a lens. Unlike the contingency approach, a paradox perspective deems real-world tensions as normal, which can also be harnessed, and benefit employees and the organisation. We make three contributions; firstly, we identify contradictory employee PWB and organisational performance HR practices; secondly, we offer a solution in addressing the inherent tension between PWB and organisational performance by developing a new sensemaking conceptual framework; and thirdly, we offer a more nuanced perspective of prevailing arguments by distinguishing endogenous factors that organisations can influence to enhance the synergies between employee PWB and organisational performance HR practices. The intended impact of this paper is to instigate a paradigm shift and shape a new trajectory of thinking about how employee PWB and organisational performance practices can exist side-by-side.     

Workplace bullying and employee outcomes: a moderated mediated model

Abstract

This paper investigates the relationship between workplace bullying and employee outcomes in a healthcare setting. Drawing on HR process theory, we investigate the mediating role of the perceived effectiveness of implementation of anti-bullying practices on employee outcomes and whether targeted line manager training was a moderator of that relationship. Our multi-level analysis (utilising responses from 1507 employees within 47 hospitals with matched HR Director interviews), finds that the relationship between workplace bullying and employee outcomes is partially mediated by employees’ perceived effective implementation of intended anti-bully practices. The mediated relationship is moderated by targeted line manager training in anti-bullying practices. The mediated moderation model illustrates that it is effective implementation of anti-bullying practices enhanced by targeted training that is required to reduce bullying probabilities and their associated negative employee outcomes. The paper contributes to resource based view of the firm, HR process and human capital theories. The implications for future research and practice are discussed.     

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.     

Human resource management practices and voluntary turnover: a study of internal workforce and external labor market contingencies

We tested relationships between employee quit rates and two bundles of human resource (HR) practices that reflect the different interests of the two parties involved in the employment relationship. To understand the boundary conditions for these effects, we examined an external contingency proposed to influence the exchange-based effects of HR practices on subsequent quit rates – the local industry-specific unemployment rate – and an internal contingency proposed to shape employees’ conceptualization of their exchange relationship – their employment status (i.e. full-time, part-time and temporary employment). Analyses of lagged data from over 200 Canadian establishments show that inducement HR practices (e.g. extensive benefits) and performance expectation HR practices (e.g. performance-based bonuses) had different effects on quit rates, and the former effect was moderated by unemployment rate. The effects of HR practices on quit rates did not differ between FT and PT employees, but a different pattern of main and interactive effects was found among temporary workers. These findings suggest that employees’ exchange-based decisions to leave may be less affected by the number of hours they expect to work each week, and more by the number of weeks they expect to work.     

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.     

Promoting Employee Flexibility Through HR Practices

Current competitive environments have created a growing interest in employee flexibility in firms. Recently researchers have differentiated between two facets of employee flexibility: behavior flexibility and skill flexibility. This study proposes a model of relationships between these two facets of employee flexibility and the extent to which HR practices influence them. This model is tested by estimating structural equation models on a sample of 226 commercial departments in Spanish companies. The results of the study show that the two facets of employee flexibility are interrelated, in that skill flexibility influences behavior flexibility. Furthermore, findings confirm the influence of job enrichment on employee flexibility and the significant effect of the internal fit among HR practices on employee flexibility. © 2013 Wiley Periodicals, Inc.     

Employee involvement and participation: developing the concept of institutional embeddedness using WERS2004

It is widely accepted that employee involvement and participation (EIP) is a key component of the high commitment bundle of HRM, but that it can take a range of forms in practice. Much of the analysis to date has either treated different forms of EIP as a single construct or has measured EIP by virtue of its presence or absence alone. Drawing on earlier work based on the data from WERS1998 examining the link between various forms of EIP and employee outcomes such as job satisfaction and organisational commitment, the authors re-apply and extend these ideas to data from WERS2004. In particular they develop the concept of institutional embeddedness, in order argue that both the depth and breadth of EIP have important associations with commitment though not with satisfaction.

This association held for workplaces employing 25 or more workers, and here it was apparent that the more that employees are involved at workplace level – through a wider number of EIP practices that are held more frequently and include opportunities for workers to have their say – the more likely it is that investments in EIP will reap the reward of organisational commitment. For smaller establishments, given that they tend to operate with relatively few formal schemes, it is likely that managers in these workplaces find alternative ways in which to engage the workforce, and that informal EIP offer similar levels of embeddedness in these situations. A clear implication to be drawn from the findings is that, in a context of lower levels of formality within organisations (large and small), line managers are more than ever the key link between HR policy and the embodiment of actual practice at the workplace.     

Mind the gap: the role of HRM in creating,capturing and leveraging rare knowledge in hostile environments

Abstract

Multinational enterprises (MNEs) have increasingly entered markets in less developed regions of the world afflicted with weak institutions and political conflict. Some are characterised by ‘extreme’ cases of institutional voids and terrorism, creating a hostile environment for the organisation and its people. This in-depth qualitative study of a service company, a European telecommunications joint venture in Afghanistan, seeks to shed light and build theory on the human resource management (HRM) dimension of managerial learning and knowledge acquisition in hostile environments, as part of the MNE’s organisational learning process. Specifically, we investigate how knowledge gaps can be addressed through supportive HR practices, and how knowledge classified as ‘rare’ can be captured and leveraged through HR interventions such as debriefing. We stipulate that HR practices and interventions adapted to hostile environments, together with expatriate willingness to learn and share new knowledge, play a critical role in the creation, capturing and leveraging of rare knowledge for subsequent use by the MNE in other hostile locations. The study has implications for international HRM and organisational resilience, under the proposition that competitive advantage can be gained through exploitation of rare knowledge acquired in hostile environments.     

Attribution theories in Human Resource Management research: a review and research agenda

Abstract

There is no doubt that attribution theories have made their mark in social psychology and other related disciplines, but their application and extension to the field of HRs is in its infancy. Indeed, HR scholars have recently realized that understanding the process by which individuals explain the causes of behaviors and events provides insight into a host of HR-related issues. In our review of 65 papers, we identified three research streams with different foci – those that focused on HR system strength, on attributions that influence judgements and behaviors within functional HRM domains, and on the attributions employees make of the intent of HR practices. Notably, despite shared foundations, these three streams of literature rarely overlap. We summarize and provide theoretical and empirical directions for future research within each research area to help steer courses in these areas. Importantly, we also draw connections among the three streams to inspire future research to stretch the bounds of current theorizing on attributions in the field of HR.     

Challenges and prospects of HRM in developing countries: testing the HRM–performance link in the Eritrean civil service

In this article, the authors examine how, when and to what extent HR practices affect performance at the employee level. As performance is a multi-faceted and complicated concept, HRM outcomes were used as mediating factors between HR practices and employee performance. The data were collected among civil servants in Eritrea, Africa's youngest and poorest country. Although the results generally are in line with previous studies using Western data, their implications in this particular country may be different. Therefore, the challenges and prospects of HR practices in Eritrean civil service organizations are critically analysed and discussed. In the authors' opinion, that the Eritrean economic and political environment within which HR practices operate has not been conducive in maximizing the impact of HR practices on performance. These findings highlight the situation of most developing countries.     

A meta-analysis on employee perceptions of human resource strength: Examining the mediating versus moderating hypotheses

Human resource (HR) strength research has substantially informed an understanding of the relationship between HR practices and employee-level outcomes. However, a key unresolved issue is whether employee perceptions of HR strength act as a mediator or a moderator in the relationship between HR practices and these outcomes. A meta-analysis of 42 studies (comprising 65 samples and 29,444 unique participants) was conducted to address this issue. Results support the mediating hypothesis for all five employee outcomes: employee reactions, proactive behavior, burnout, performance, and perceived organizational effectiveness. Conversely, the moderating hypothesis was only supported for employee performance. In addition, we examined five study characteristics (the operationalization of perceived HR strength, research study design, industry, sampling strategy, and publication status) as moderators. Using this analysis, we test the robustness of our main results and identify sources of heterogeneity in the results across studies. The results show that the mediating hypothesis still holds under different study designs and contexts. Theoretical and practical implications of these results 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.     

Overcoming the ethnocentric firm? – foreign fresh university graduate employment in Japan as a new international human resource development method

Abstract

This article analyses a new and, by international comparison, distinct recruitment trend – the systematic hiring of foreign fresh university graduates (FFGs) into Japanese multinational enterprises’ (MNEs) operations in Japan. Our explorative research, which is based on interviews with HR managers and FFGs, offers three major findings related to international HR development methods. Firstly, the inpatriate literature has identified the roles of foreign (subsidiary) staff as knowledge conduits and boundary-spanners between headquarters and subsidiaries. While such objectives do not drive Japan’s FFG hiring trend, we find similar challenges in terms of the absorptive capacities of headquarters. Secondly, following a Varieties-of-Capitalism perspective, we argue that FFG hiring is an institutional answer to the particularities of Japan’s employment system. Aiming at internationalizing headquarters from within, it contributes to resolving the internationalization conundrum of Japanese MNEs, but rather than overcoming the existing ethnocentric HR model it accommodates this orientation. Thirdly, we advance the general HR literature by proposing a new framework that addresses the viability of international personnel development methods in dependence of the workforce diversity and distinctiveness of employment practices in headquarters. We locate FFG hiring, inpatriation and self-initiated assignments within this framework.     

Should HR managers allow employees to use social media at work? Behavioral and motivational outcomes of employee blogging

Abstract

There is a dilemma for HR executives concerning social media policies: Should HR managers allow employees to use social media while at work? The question has no easy answer because there are conflicting views on the matter. However, the conflicting views can be resolved if we focus on the individuals with whom an employee interacts through social media. Building on data on the blogging activity of 269 employees working for a Canadian health-care provider, the paper reveals a new problem: The extent to which employees engage in personal blogging with outsiders – individuals who do not work for the organization – is negatively related to intrinsic work motivation and to proactive behavior. After having introduced the problem, the paper shows a solution. If employees engage in blogging with coworkers, the negative effects turn positive: Blogging with coworkers positively affects intrinsic work motivation and proactive behavior. Finally, the paper offers a recommendation for HR managers to leverage the solution. Through social job design and increasing formal interaction requirements, HR executives can reinforce the association between social media use and blogging with coworkers. Overall, the paper helps HR executives to clarify the outcomes of social media, find a problem, suggest a solution, and recommend how to achieve it.