Exploring the Complementarities Within High‐Performance Work Systems: A Set‐Theoretic Analysis of UK Firms

High‐performance work systems (HPWS) are important conceptual instruments in the human resource management literature. Yet our current understanding of the complementarities within HPWS remains limited for two reasons: First, the dominant theoretical perspectives on HPWS provide a landscape of theoretical possibilities rather than an understanding of different possibilities through which HPWS generate positive effects on performance; and second, the literature on HPWS merely proposes several seemingly equally important HR practices. This article explores the internal nature of HPWS by integrating a configurational perspective of core, peripheral, and nonessential HR practices with a typology of complementarities. Analyzing 530 UK‐based firms using fuzzy set qualitative comparative analysis (fsQCA), I identify four frequently implemented HPWS consistently associated with high labor productivity. The complementarities within all HPWS combine pairs of core HR practices with sets of peripheral HR practices. Moreover, the complementarities within three of the four HPWS rely on firms’ avoidance of implementing certain HR practices. The results suggest that the synergies of HPWS arise from efficient complementarities and virtuous overlaps, and reveal the significance of achieving high performance by not implementing HR practices. This article thus advances a new perspective on HPWSs, highlighting the challenges involved in successfully designing HPWS. © 2016 Wiley Periodicals, Inc.     

High‐involvement work practices and environmental capabilities: How HIWPS create environmentally based sustainable competitive advantages

We study how high‐involvement work practices (HIWPs) may enhance a firm's economic performance through the development of a proactive environmental strategy (PES). HIWP systems facilitate the implementation of a PES by promoting employees' ability, motivation, and opportunities to behave in ways consistent with environmental management goals. In turn, PESs contribute to the development of strategic competitive advantages and drive superior performance. The results of our empirical analysis of 233 firms broadly confirm our hypotheses and suggest that although the direct effect of HIWPs on performance was not signifi cant in our sample, HIWPs do have a significant indirect effect through a PES as a mediator.     

Putting employee involvement in context: a cross-level model examining job satisfaction and absenteeism in high-involvement work systems

The current study examines how high-involvement work systems (HIWS) influence employee responses to involvement initiatives. While existing research has linked HIWS to individual attitudes, we predict that an organization's HIWS moderate the relationship between employee involvement and job satisfaction and absenteeism. Using multilevel data (8454 employees from 1429 workplaces), we found that employee involvement and HIWS are positively related to employee job satisfaction. Additionally, the results support a cross-level interaction: at high levels of HIWS, employee involvement is negatively related to absenteeism, whereas at low levels of HIWS, the negative relationship is weaker. The implications of the findings are discussed.     

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.     

Average employee tenure,voluntary turnover ratio,and labour productivity: evidence from Japanese firms

Using Japanese firms' data, this study shows that voluntary turnover ratio is negatively related to firm labour productivity. While recent studies have reported the negative influence of turnover on organizational performance (Kacmar et al., 2006 Kacmar, K.M., Andrews, M.C., van Rooy, D.L., Steilberg, R.C. and Cerrone, S. 2006. Sure Everyone can be Replaced… But at What Cost? Turnover as a Predictor of Unit-Level Performance. Academy of Management Journal, 49: 133–44. [Crossref], [Web of Science ®] , [Google Scholar]; Shaw et al., 2005a Shaw, J.D., Gupta, N. and Delery, J.E. 2005a. Alternative Conceptualizations of the Relationship between Voluntary Turnover and Organizational Performance. Academy of Management Journal, 48: 50–68. [Crossref], [Web of Science ®] , [Google Scholar]), they analysed only US samples. Our study contributes to researchers' efforts to generalize the relationship between voluntary turnover and organizational performance. Turnover is detrimental to labour productivity as it reduces the stock of firm-specific human capital that a firm retains. Findings suggest that firm average employee tenure mediates the relationship between voluntary turnover and labour productivity.     

The virtuous circle of human resource investments: A precrisis and postcrisis analysis

We propose a dynamic model of positive feedback between human resource (HR) investments and companies' economic performance. The model assumes that HR investment increases profitability through labor productivity and, in turn, profitability improves HR investment through organizational slack. Based on data from a sample of 2,497 industrial companies over a 7‐year period (2005–2011), longitudinal analysis corroborates the existence of a two‐way relationship between HR investment and profitability over time. However, the emergence of an economic crisis weakens this feedback, identifying the effect of organizational slack on HR investment as the weakest causal chain link. In a postcrisis period, HR investment is not such a high priority for managers.     

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.     

Social expectations,gender and job satisfaction: Front‐line employees in China's retail sector

This study aims to enhance our understanding of gender and employment in China. Analysing data collected from over 1,800 employees at 22 foreign‐invested and locally owned retail stores in eight Chinese cities, it firstly explores whether, like their counterparts in Western countries, female employees have higher levels of job satisfaction than their male colleagues. Secondly, it distinguishes the key differential predictors of female and male employees' job satisfaction levels. This article extends gender role theory on job satisfaction by showing how traditional values, the structure of work and a nation's dominant gender ideology combine to shape women and men's job satisfaction and work experiences in a transitional context.     

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.     

Organizational achievement values,high‐involvement work practices,and business unit performance

This study examines the relationships among organizational achievement values, high‐involvement work practices (HIWP), and business unit performance. Specifically, we examine whether HIWP mediate or moderate the effect of achievement values on retail store performance. Using data collected at three points in time from more than 1,000 employees, we found support for the mediation model. The article concludes with directions for future research and implications for management practice. © 2011 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.     

The adoption,character and impact of strategic human resource management: a case study of two large metropolitan Vietnamese public hospitals

In this paper the researchers set out to explore the adoption, character and impact of strategic human resource management (SHRM) in two large metropolitan Vietnamese public hospitals using a multi-level qualitative research design. Data are analyzed from 21 interviews and 5 focus groups with key players from the hospitals and government authorities. Findings show that the State controls many of the core day-to-day HR functions of public hospitals, curtailing local autonomy and management innovation. This is compacted by inadequate government funding, poor training of medical staff, and inadequate management and business skills of hospital managers. Inhibiting greater experimentation with SHRM is the fear of developing management initiatives out of sync with the State. Consequently, many managers and clinicians held negative views of the HR department and their relevance for the day-to-day management of healthcare services. Respondents reported that they perceived these factors had a negative impact on the well-being of medical staff and the quality of patient care. The paper concludes with a discussion on the necessity for continued State reforms that can enable greater autonomy of the hospitals' HRM functions and greater investment in local HR capabilities to materialize the link between SHRM, employee well-being and quality of patient care.     

Work‐life support practices and customer satisfaction: The role of TMT composition and country culture

Despite the growing prevalence of work‐life support (WLS) practices in companies, there is a lack of theoretical and empirical clarity on their benefits to organizational performance. It is also unclear if the organizational performance effects of WLS practices vary based on an organization's internal and external environments. The dual objective of this paper is to investigate whether WLS practices relate to customer‐focused outcomes and, if so, under which conditions WLS practices yield benefits. Drawing on contingency theory, we examine how the boundary conditions of internal firm characteristics (e.g., percentage of top management team [TMT] members with children) and external environmental factors (e.g., gender egalitarianism of the country) moderate the relationship between WLS practices and customer satisfaction. We shed light on these issues by examining multisource, longitudinal data collected over three years from a multinational corporation operating in 27 countries. The results show that both percentage of TMT members with children and gender egalitarianism of the country strengthen the relationship between WLS practices and customer satisfaction. The findings provide insights into the circumstances when WLS practices provide performance benefits for firms and the translatability of these benefits from one country to another.     

Alignment,integration, and consistency in HRM across multi‐employer networks

Most studies of human resource management (HRM) have been conducted within the context of the single employing organization, which is strange given the recent growth in multi‐employer networks. In this study, the authors examine whether alignment, integration, and consistency—concepts central to or implicit in most analyses of HRM—has meaning and relevance in the multi‐employer context. They focus specifically on networks in which collaboration is intended to deliver high levels of product quality or customer service, precisely where one might expect employers would be attracted to “strong” HRM systems. Data was collected via interviews and document analysis in four networks, spanning both the public and private sectors in the United Kingdom. Despite a set of potentially favorable conditions within these networks to promote alignment, integration, and consistency, implementation was impeded by other equally powerful forces, including differences in employer goals within networks, especially between public and private sector organizations; intraorganizational tensions within internal labor markets for organizations involved in networks; using divergent HR policies between organizations within multi‐employer networks; and contradictions between the pursuit of “among employee” or “temporal” consistency for workers. Rather than prescribing a one‐size‐fits‐all solution for these problems, it is argued that detailed analysis of each network is necessary. ©2011 Wiley Periodicals, Inc.     

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.     

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.     

Perceptions of High‐Involvement Work Practices,Person‐Organization Fit,and Burnout: A Time‐Lagged Study of Health Care Employees

Previous research demonstrates that high‐involvement work practices (HIWPs) may be associated with burnout (emotional exhaustion and depersonalization); however, to date, the process through which HIWPs influence burnout is not clear. This article examined the impact of HIWPs on long‐term burnout (emotional exhaustion and depersonalization) by considering the mediating role of person‐organization fit (P‐O fit) in this relationship. The study used a time‐lagged design and was conducted in a Canadian general hospital among health care personnel. Findings from structural equation modeling (N = 185) revealed that perceived HIWPs were positively associated with P‐O fit. There was no direct effect of HIWPs on burnout; rather, P‐O fit fully mediated the relationship between employee perceptions of HIWPs and burnout. This study fills a void in the HR and burnout literature by demonstrating the role that P‐O fit has in explaining how HIWPs alleviate emotional exhaustion and depersonalization. © 2016 Wiley Periodicals, Inc.     

Human Resource Management Journal: A look to the past,present, and future of the journal and HRM scholarship

This editorial lays out 30 years of history of Human Resource Management Journal (HRMJ), charting the journal's roots, reflecting on HRM scholarship today and guiding authors on potential contributions to the journal in the future. HRMJ has achieved high recognition and ranking internationally since its conception originally as a UK‐based journal. The journal's broad‐based approach to the study of the management of people at work, means it appeals to scholars from a multitude of disciplines, not least of all management, industrial relations, psychology and organisational behaviour. HRMJ is also highly rigorous in its review process, ensuring reliable, interesting and impactful articles that further our knowledge of theory and practice.     

High‐performance work systems and creativity implementation: the role of psychological capital and psychological safety

Unimplemented creative ideas are potentially wasted opportunities for organisations. Although it is largely understood how to encourage creativity among employees, how to ensure this creativity is implemented remains underexplored. The objective of the current study is to identify the underlying mechanisms that explain the relationship between high‐performance work systems and creativity implementation. Drawing from the job demands–resources model, we explore a model of psychological capital and psychological safety as mediators in the relationship between high‐performance work systems and creativity implementation. Based on 505 employee survey responses, the findings show support for the mediating relationships, highlighting the importance of psychological mechanisms. The study has important implications for HRM, uncovering how people management practices can encourage creativity implementation in the workplace.