Human resource management systems,employee well-being,and firm performance from the mutual gains and critical perspectives: The well-being paradox

In this study, we explored the additive, interactive, and nonlinear relationships among human resource management (HRM) systems, employee well-being, and firm performance. Based on a sample of 14,384 employees nested within 1,347 firms, we obtained three main findings. First, HRM systems yield a performance effect that exceeds the effect of single practice, suggesting positive synergies among HRM practices. Second, the opportunity bundle has a positive impact on firm performance, but when integrating it with skills and motivation bundles, the result becomes negative, indicating dis-synergy of interactions among HRM bundles. Third, at moderate levels of adoption, HRM practices are positively correlated with employee well-being and higher levels of commitment, job satisfaction, and management relations, as well as lower levels of anxiety. However, at high levels, the relationship is less positive and even turns negative with lower levels of job satisfaction and management relations. To close, we present research implications and future directions after discussing our results.     

Social identification: linking high performance work systems,psychological empowerment and patient care

This paper examines the mediating effects of social identification on the relationship between high performance work systems (HPWS) and psychological empowerment and the direct relationship between psychological empowerment and clinician perceptions of quality of patient care. We use structural equation modelling on a sample of 254 health professionals from a large regional hospital in Australia. Results demonstrate, first, a strong effect of HPWS on social identification. Second, social identification mediates the relationship between HPWS and psychological empowerment and, third, psychological empowerment has a strong effect on clinician perceptions of quality of patient care. Implications are drawn for management theory and hospital managers.     

Towards an assertion perspective for empowerment: Blending employee rights and labor process theories

Employee Rights Theory (ERT) and Labor Process Theory (LPT) are two major bodies of knowledge in contemporary social science committed to empowering employees in the workplace. Despite their seemingly common goals, the two have emerged almost independently of each other. The current article compares and contrasts these perspectives and suggests that empowerment can be better understood and fostered by drawing on ERT and LPT simultaneously. Specifically, a synergistic view suggests that empowerment occurs when individuals are willing and able to assert their interests and rights in a given situation. This assertion perspective to empowerment emphasizes the interaction of micro- and macro-level processes, a combination of conflict and cooperative strategies, use of the rights rhetoric to incite action, and the role of emotions in stimulating and/or preventing change.     

Leading public service organizations: how to obtain high employee self-efficacy and organizational performance

Concerns are sometimes raised that transactional leadership harms public organizations’ performance because demands thwart employees’ self-efficacy. However, the opposite may be argued – conditional rewards strengthen feelings of competence because they provide positive feedback on performance. We study ninety-two high school principals’ reported use of contingent rewards and sanctions and self-efficacy among their 1,932 teachers. The results indicate that contingent rewards strengthen self-efficacy, and that sanctions are not negatively related with self-efficacy or performance. Furthermore, the teachers’ self-efficacy can be linked positively to organizational performance. This suggests that rewards can be an important tool for managers in the public sector.     

Supplier empowerment: Mediating situational factors and perceived performance

The understanding of the behavioral and cognitive factors that affect organizations' performance has attracted increasing attention of scholars and practitioners. Based on the literature of psychological empowerment at the individual and the team levels, this study develops the concept of supplier empowerment in the context of purchasing and supply management. Further, this study proposes a research model that explores the role of supplier empowerment as a cognitive concept in mediating the relationship between situational factors (a supplier's process modularity and the mutual trust with its customers/buyers) and the supplier's perceived performance in its operations and customer service. This model is tested with 208 responses from automotive industry suppliers. The findings highlight the importance of empowered suppliers in decreasing inventory levels and increasing order fulfillment performance.     

Antecedents and outcomes of employee empowerment practices: A theoretical extension with empirical evidence

Despite being often touted as a best practice to enhance organisational performance, in reality, employee empowerment practices have not been widely adopted. This paper combines transaction cost economics with organisational behaviour and resource‐based views to examine antecedents and outcomes of empowerment practices, from both cost‐efficiency and value‐creation perspectives. On the basis of a study of 99 multinational subsidiaries in China, we found that human asset specificity, a key characteristic of employee–employer exchange, related significantly to organisations' adoption of empowerment practices. We also found that empowerment practices had a positive impact on organisational performance, and they mediated the relationship between human asset specificity and performance. In addition, results showed that task interdependence strengthened the impact of empowerment practices on performance outcome. The paper contributes to research on empowerment practices by offering a theoretically more comprehensive and balanced analysis of why and when empowerment is good for performance, with the support of empirical evidence.     

Antecedents of well-being: a study to examine the extent to which personality and emotional intelligence contribute to well-being

In the debate surrounding the relationships between HRM and performance, there is an argument suggesting that a focus on understanding the role of employee attitudes and behaviours may elicit valuable insights into performance drivers. In examining individual behaviour and performance links, there is evidence that well-being plays a significant role. Other notable performance antecedents are personality and emotional intelligence (EI). This paper explores the relationships between these variables and reports the findings from a study of 156 managers. Results show relationships between well-being and EI as well as with personality, although EI explained variance beyond personality dimensions. The implications for HR of these findings are discussed.     

Patterns of psychological contract and their relationships to employee well-being and in-role performance at work: longitudinal evidence from university employees

Abstract

This study identified patterns of psychological contract (PC) and examined how these patterns were related to employee well-being and in-role performance over time (T1–T3). PC was measured at T1 based on cross-sectional data and well-being and performance longitudinally in two consecutive years (T1?T3) among university employees. Latent profile analysis revealed six different patterns of PC at T1. These were labelled (1) strong and balanced (n = 131), (2) average and balanced (n = 382), (3) employer-focused (n = 79), (4) employee-focused (n = 59), (5) balanced transactional (n = 224) and (6) employee-focused relational (n = 322). The longitudinal findings showed that the employees in PC patterns 1 and 2 experienced more vigour at T1–T3 than those in pattern 5, while the employees in pattern 2 reported higher proficiency at work at T1–T2 than those in pattern 6. Employee job satisfaction did not vary between patterns. Altogether, the PC pattern that included many different obligations on the part of both employee and employer seemed to result in better employee well-being and in-role performance.     

When affective well-being is empowered: the joint role of leader-member exchange and the employment relationship

HRM and the leader are often assumed to play a joint role in affecting employee reactions. In a multilevel, time-lagged study, we examined the joint role of the employment relationship and leader-member exchange (LMX). We tested whether this joint role is essential to when LMX leads to affective well-being via psychological empowerment. We build on HRM literature to expect that the relationship of LMX with psychological empowerment is stronger when the employment relationship is consistent with LMX quality. Results indicated that psychological empowerment mediates the relationship between LMX and affective well-being. This mediation is stronger for employees in a mutual investment employment relationship. The findings point at the importance of consistency of resources from the employment relationship and LMX. Nevertheless, the findings also suggest that resources from LMX compensate for employment relationships with low resources. Our findings contribute to scholars’ understanding of the joint role of HRM systems and leader behaviors.     

Influence of high performance work systems on employee subjective well-being and job burnout: empirical evidence from the Chinese healthcare sector

Over the last two decades, high performance work systems (HPWSs) research has been dominated by examining the effects of these systems on firm performance. Research on the impact of HPWSs on employees has been marginalised. This study examines the impact of HPWSs on two psychological outcomes for employees, namely, subjective well-being (SWB) and workplace burnout, by utilising data collected from 1488 physicians and nurses in 25 Chinese hospitals. It also examines the moderating effects of employees' organisational based self-esteem (OBSE), as an individual intervention and physician–nurse relationships, as an organisational intervention, on the relationship between HPWSs and employee outcomes. HPWS is found to increase employees' SWB and decrease burnout. Such well-being-enhancing and burnout-relieving effects are stronger when employees have high OBSE. The positive effect of HPWS on SWB is also stronger when there is a collaborative relationship among employees in an organisation. The major contribution of this study is to unpack the ‘black box’ of how HPWS influences employee well-being in the Chinese healthcare sector context.     

Fits in strategic human resource management and methodological challenge: empirical evidence of influence of empowerment and compensation practices on human resource performance in Canadian firms

This study attempts to answer three questions: 1) How does the methodological approach used to measure fit among practices influence the results obtained? 2) To what extent do bundles of empowerment and compensation practices individually influence human resource outcomes? and 3) Does the fit between these bundles of practices increase the prediction of the level of discretionary effort, turnover and productivity? Following a two-wave survey strategy, statistical analyses performed on 128 Canadian companies suggest that the statistical methods used to measure fit are not interchangeable. The findings reveal that the use of an extensive relational empowerment strategy is significantly and negatively related to voluntary turnover when accompanied by a compensation program that rewards performance. In contrast, a compensation strategy that supports good working conditions or the use of financial incentives seems sufficient to influence human resources performance. Nonetheless, the results militate in favour of adopting a configurational approach with empirical deviation profile to fit to better understand the complexity of the equifinality effect of HR strategies. Lastly, the polynomial regression results question the linearity assumption of the relationship between empowerment, working conditions and productivity.     

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

Abstract

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

Limits to strategic HRM: the case of the Mauritian civil service

Taking as its starting point the impressive evidence for the strategic human resource management (SHRM) model's effect on organizational performance, and for the relationship between public staff management and economic growth, the paper offers the civil service of Mauritius as a case study of SHRM's relevance to developing countries. It finds that SHRM is not practised in Mauritius, nor is it feasible in the near future, because it is not widely known, because there is no strategic management framework, because staff management is highly centralized and because political will to make radical changes in staff management is lacking. The case study does not support claims that SHRM and its associated practices have a universal validity, or that public staff management is a ‘magic bullet’ that delivers economic growth. Improvements to staff management in Mauritius, and possibly other developing countries, will require a creative and piecemeal adaptation of Anglophone ‘good practice’ that respects political, economic and social realities.     

Employee well-being attribution and job change intentions: The moderating effect of task idiosyncratic deals

We developed and tested a research model in which employee well-being human resource (HR) attribution differentially influences the intention to change jobs across organizations (i.e., external job change intention) versus that within the same organization (i.e., internal job change intention). Furthermore, we posited that task idiosyncratic deals (I-deals) moderated the relationships between employee well-being HR attribution and external and internal job change intentions. Results indicated that employee well-being HR attribution was negatively related to external job change intention, but positively related to internal job change intention. Further, task I-deals significantly moderated the relationships between employee well-being HR attribution and external and internal job change intention. Specifically, employee well-being HR attribution played a less important role in reducing external job change intention when task I-deals were high rather than low. On the other hand, high task I-deals significantly strengthened the positive relationship between employee well-being HR attribution and internal job change intention. Our study extends the careers literature by differentiating the impact of employee well-being HR attribution on job change intentions within an organization compared with that across organizations and the important role of supervisors in enhancing or mitigating these effects.     

Linking Belgian employee performance management system characteristics with performance management system effectiveness: exploring the mediating role of fairness

Based on expectancy theory, goal-setting theory and control theory, we propose a model in which perceived fairness mediates the relationship between characteristics of employee performance management (PM) systems and their perceived effectiveness by employees. PM system characteristics we propose are the frequency and length of formal reviews, the frequency of informal reviews and feedback, whether the formal conversation focused on evaluation or development and finally the degree of participation. The model was tested on a cross-industry sample of 3192 employees in Belgium. The measurement and structural models were simultaneously tested using structural equation modeling, and we used a bootstrapping approach to test the mediation hypothesis. Our findings indicate that performance review focus and employee participation strongly relate to perceptions of appraisal fairness and PM system effectiveness and that the frequency of informal performance reviews is stronger related to PM system effectiveness than the frequency of formal performance reviews. This suggests that the manifest expressions of PM have more impact on PM system effectiveness rather than the more latent characteristics of PM systems. The findings advance research to the role and functionality of PM systems by showing that (a) the manner in which PM systems are shaped and executed is of fundamental importance for their effectiveness, (b) fairness partially mediates the relationship between PM system characteristics and their effectiveness and (c) the three motivational theories appear useful for understanding the consequences of PM practices on individual employees.     

Transformational leadership and followers' attitudes: the mediating role of psychological empowerment

There is now strong evidence that transformational leadership substantially influences the work attitudes and behaviours of followers. However, the mechanisms by which transformational leaders influence their followers have not been studied in a systematic fashion. The purpose of the present study is, therefore, to analyse how transformational leadership promotes: i) job satisfaction among employees; and ii) affective commitment to the organization. In particular, the possible mediating role of psychological empowerment in these two relationships is conceptually hypothesised and empirically tested. The results demonstrate that psychological empowerment mediates the relationship between transformational leadership and employee attitudes.     

Work and social well-being: the impact of employment conditions on quality of life

This paper aims to extend our understanding of the impact of management practises and employment conditions in the contemporary workplace on the broader social realm. The study provides an analytic account of how these employment conditions impact on the social well-being of a representative sample of individuals and households. We assess the propensity of working arrangements that are manifested in various high performance work systems either to enhance or to diminish quality of life. The paper indicates that certain management practises and employment conditions have impacts that extend beyond the workplace and influence the broader well-being of individuals and families.     

Employee ownership and firm performance: a meta‐analysis

Employee ownership has been an area of significant practitioner and academic interest for the past four decades. Yet, empirical results on the relationship between employee ownership and firm performance remain mixed. To aggregate findings and provide potential direction for future theoretical development, we conducted a meta‐analysis of 102 samples representing 56,984 firms. Employee ownership has a small, but positive and statistically significant relation to firm performance ( = 0.04). The effect is generally positive for studies with different sampling designs (samples assessing change in performance pre‐employee–post‐employee ownership adoption or samples on firms with employee ownership), different performance operationalisation (efficiency or growth) and firm type (publicly held or privately held). Suggesting benefits of employee ownership in a variety of contexts, we found no differences in effects on performance in publicly held versus privately held firms, stock or stock option‐based ownership plans or differences in effects across different firm sizes (i.e. number of employees). We do find that the effect of employee ownership on performance has increased in studies over time and that studies with samples from outside the USA report stronger effects than those within. We also find little to no evidence of publication bias.     

Institutional effects of empowerment: a comparison between the Anglo-Saxon and Scandinavian contexts

Many empowerment studies focus on issues at organisational and individual levels. However, few empirical investigations have been placed at a more macro level looking at the social environmental forces of empowerment. To contribute to this gap, this study investigates the existence of institutional effects on empowerment practices. The study is based on a secondary analysis of data from the 2005 European Working Conditions Survey. It compares an Anglo-Saxon and a Scandinavian context due to their distinct historical empowerment movements. The findings indicate that Scandinavian countries possess a higher institutional context for empowerment practices. Theoretical and practical implications are also discussed in the present study.     

An employee-centred analysis: professionals' experiences and reactions to HRM

A key premise underlying research efforts about human resource management (HRM) is that it leads to improved performance through bolstering employee attitudes. The value of assessing employee reactions to HRM practices is now widely recognised. Using process models of strategic HRM, we adopt an employee-centred focus to explore the perceptions of a sample of New Zealand professionals with regard to HRM practice, attitudes, reactions and performance. Our findings provide support for some elements in this model, but not all. Although the relationship between practices and attitudes is strong, the relationship between reactions and performance is not. We conclude that the employee experience of practice is still a murky concept and suggest greater clarity about what this means, and how this could, and indeed should, be assessed is urgently required.