The relationship between trust,HRM practices and firm performance

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

Job involvement and performance among middle managers in Sri Lanka

This paper examines performance evaluation outcomes for middle managers in the garment sector in Sri Lanka and seeks to explain variations in levels of job involvement and perceptions of organizational support. Some 155 middle managers across three firms were segregated into high- and low-performing groups. High-performing managers tended to have higher perceptions of organizational support, resulting in a social exchange relationship with their employer, and expressed higher job satisfaction and lower turnover intentions. Managers assessed as low performers experienced more negative perceptions of organizational support, lower job satisfaction and an economic exchange relationship with their employer. Significantly, for both high and low performers these outcomes were moderated by job involvement. These findings highlight the need for organizations to pay careful attention to the factors influencing job involvement and perceived organizational support. The paper concludes with a discussion on the practical implications of the findings for human resource managers.     

The performance effects of coaching: a multilevel analysis using hierarchical linear modeling

Drawing on the conceptual foundations of feedback and behavior modeling we investigate the effects of managers' coaching intensity on the performance of those they supervise, at multiple levels of an organizational hierarchy. Data from 328 sales associates reporting to 114 middle managers, and 93 middle managers reporting to 32 executive managers are used to test the research hypotheses. Using hierarchical linear modeling we find that managers' coaching intensity influences the performance of their subordinates after controlling for job satisfaction, and this effect weakens at greater hierarchical levels. Surprisingly, we do not observe any cross-level moderating effects of coaching intensity on the satisfaction–performance relationship. We discuss the implications of our findings for future research and practice.     

Plant level performance measurement: an exploratory case study of a pharmaceutical encapsulation company

Over the last few decades, hundreds of books and articles have been written on performance measures in manufacturing companies. A good number of those works has focused on overall organizational performance at the corporate level, business unit performance, and individual performance. Barring a few studies, there has been very little work reported on what specific performance measures are used at the plant and department level at a manufacturing facility. This exploratory research, through a case study of a pharmaceutical encapsulation company addresses those issues. Results show that the managers use a wide variety of measures primarily for meeting corporate targets and implementing a gain-sharing plan. There are not many common measures of performance used by managers for decision-making. None of the managers specifically linked the performance measures to the competitive priorities of the products made at the plant. A few propositions and suggestions for future research are made in the paper.     

In search of sustained competitive advantage: the impact of organizational culture,competitive strategy and human resource management practices on firm performance

We develop and test a dynamic model of co-specialized resources for competitive advantage. Using matched data from senior executives and human resource managers, we test the direct and interactive effects of high-performance human resource (HPHR) practices and organizational culture on firm performance. Although the HPHR practices were not an important influence on performance, our findings indicate that organizational culture can be a valuable resource for companies.     

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.     

High‐performance organizing,environmental management,and organizational performance: An evolutionary economics perspective

This study applies evolutionary economics reasoning to the green HRM context and examines whether and how environmental management routinization relates to organizational performance. In doing so, we introduce the concept of ecological routines, defined as deeply embedded, firm‐specific rules and procedures associated with organizing and practicing corporate environmental management that do not change very much from one iteration, period, or functional unit to another. We examine the extent to which ecological routines that encompass organizing (high‐performance organizing [HPO]) and practice routines of environmental sustainability relate to green decisions, green behaviors, and organizational performance. In a sample of 229 managers from 33 organizations in the environment‐sensitive industries of the United States, we find support for multilevel mediation of green decisions and green behaviors as well as interaction of HPO and environmental management practice routines. Implications for research and practice are discussed.     

Alignment of strategic priorities and performance: an integration of operations and strategic management perspectives

In theory, strategic priorities at the functional level align with and support business level strategies. Alignment of priorities is presumed to contribute to enhanced organizational performance, just as misalignment is expected to undermine performance. This study further develops and tests these theoretical conventions by examining the perceptions of general managers and manufacturing managers regarding manufacturing priorities of their business units. Based on a sample of matched pairs of manufacturing managers and general managers from 98 manufacturing plants, the hypotheses regarding the alignment–performance relationship are tested. Specifically, we tested whether the performance of the manufacturing unit is enhanced when general managers and manufacturing managers agree on strategic priorities. Furthermore, the influence of organizational factors on the relationship between alignment and performance of the manufacturing unit is studied. Results support our hypotheses that certain organizational variables moderate the relationship between alignment of priorities and manufacturing performance.     

A framework for strategic decision making and performance among Chinese managers

This study develops an integrative model that explains the relationship between Chinese culture, managers' strategic decision making (SDM) processes, and organizational performance. For the study 1200 participants were randomly selected from a business club's company register, resulting in 204 valid respondents. The results highlighted two significant SDM paths used by managers: (1) the cognitive-speed path, which suggested that Overseas Chinese managers (the Chinese who live outside of Mainland China) focus on the big picture, draw analogies from past experiences, and use extensive networks to reduce the duration of the decision process; and (2) the social-political path which shows that Overseas Chinese managers focus on collective interests, strive to maintain harmony, and to save face while using a collaborative style to handle conflict; this approach reduces dysfunctional political behavior, while reinforcing the decision team's focus on common goals. From these results we concluded that a speedier decision making process (based on intuition, experience, and networks) accompanied by the appropriate use of political behavior (that created harmony, through a hierarchical structure, during conflict management) in the Overseas Chinese managers' strategic decision making process could positively influence organizational performance.     

Green process innovation and operational performance: The role of proactive environment strategy,technological capabilities,and organizational learning

With increase in the focus on environmental protection, firms are integrating sustainability issues in process and product innovations. Firms can contribute toward sustainability and also improve operational performance through green innovation practices. However, the adoption of green innovation practices depends on the proactivity of top managers toward environment management. In this paper, we study the relationships between proactive environment strategy, green process innovation (GPRI), and operational performance. Further, we examine the mediating effect of dynamic capabilities (DCs) (technological capabilities and organizational learning) between GPRI and operational performance. The proposed framework is tested by data collected from the Indian manufacturing industries and using partial least squares (PLS) technique. The findings demonstrate proactive environment strategy as an important antecedent for GPRI practices. Second, technological capabilities and organizational learning mediate between GPRI and operational performance. The results of the study are useful for managers in the manufacturing firms, who are interested to implement GPRI practices or who are in the early stage of implementing the GPRI practices.     

The effect of human resource practices on organizational performance: evidence from Greece

The present study addresses a central research question: how do human resource management practices contribute to organizational performance? We examined the following HR practices: (1) job security; (2) selective hiring; (3) self-managed teams and decentralization of decision making; (4) compensation policy; (5) extensive training; and (6) information sharing. We surveyed food managers in Greece and recorded their perceptions on HR practices and their relation to firm performance.

Results provide overall support for all HR practices except of job security. Selective hiring was found to be a key practice that improved organizational performance. Compensation policy, information sharing, decentralization of decision making and extensive training were significant predictors for all performance variables. Directions for further research are provided.     

Hard,soft or ambidextrous? Which influence style promotes managers’ task performance and the role of political skill

Abstract

Ambidexterity at the manager level focuses on the crucial, but underexplored, role of managers’ knowledge, skills, and behaviors to address competing demands and promote organizational ambidexterity. As such, to successfully complete their assigned duties, managers need to employ the appropriate interpersonal style and calibrate their behavior to different contextual demands. This study highlights the role of the individual in the ambidexterity process by introducing the concept of influence tactic ambidexterity, to denote the frequent use of both hard and soft influence and investigating its role on task performance. Drawing on the literature on ambidexterity and HRM, we analyze data from a sample of 172 middle managers and their corresponding 68 supervisors working for multinational organizations, and provide evidence that influence tactic ambidexterity relates to higher levels and less variation in managers’ task performance compared to the sole use of either hard or soft tactics. Our findings also show that political skill positively moderates the relationship between influence tactic ambidexterity and a manager’s task performance. Therefore, this study suggests that influence tactic ambidexterity and political skill can be considered valuable HR assets for managers.     

Green supply chain practices and company performance in Portuguese manufacturing sector

Green supply chain management is an important organizational approach to reducing strain on the environment. Many companies are under pressure from customers, media, governments, and investors, among others, to implement green practices. This exploratory paper investigates the relationships between internal and external green practices of eight Portuguese companies from different industrial sectors and their impact on economic and environmental performance. The relationship was analyzed based on the data collected from 22 semi‐structured interviews with general managers, procurement and environmental/safety managers, and through secondary data collected from reports, websites and companies' internal documentation. The analysis identifies the most important green practices considered by managers, as well as the performance measures that are most appropriate and most widely used to evaluate the influence of green practices on corporate performance. A conceptual model was derived to assess the influence of green practices on focal company economic and environmental performance. The results support four of five propositions of this research, and it is possible to conclude that the companies believe that with the adoption of green supply chain practices, they can be more competitive in the market. Due to the scope of the green practices, the relationship between green practices and economic performance was inconclusive. Internal and external green supply chain practices contribute to improved environmental performance because for all companies, there is a positive relationship between green practices and environmental performance in terms of energy, water consumption, waste, and air emissions reduction.     

How variation in management perceptions affects organizational performance

This research project uses innovative techniques (multiple respondents and partial relative standard deviations) to examine organizational management ratings of their implementations of market orientation, learning orientation, entrepreneurial management, and organizational flexibility. This study included manufacturers and service businesses, and also not-for-profits in education and healthcare to reflect the 21st century economy. The major finding of this study was larger than the expected response variation within management teams and how this correlated negatively with performance. The results are eye-opening and should be a concern for both management in organizations and the research community.     

Organizing professionals and their impact on performance: the case of public health doctors in the Italian SSN

ABSTRACT

Hybrid professional managers have been associated with improvements in the performance of public sector organizations. However, less attention has been given to differences within this category. Drawing on board human capital theory, we focus on an emerging group of ‘organizing professionals’ with earlier and deeper exposure to management training and education: generalist clinical hybrids drawn from public health in the Italian healthcare system. Specifically, we investigate the impact that these hybrid hospital CEOs have on organizational performance in comparison with other backgrounds. The results indicate that this form of generalist hybrid professionalism has distinct, if not dramatic, consequences for performance.     

Human resource flexibility,organizational culture and firm performance: an investigation of multinational firms in Hong Kong

This article explores the relationships between human resource (HR) flexibility, organizational culture, and organizational performance. Drawing on previous works, we develop a conceptual model that links the constructs together. It is hypothesized that the three sub-dimensions of HR flexibility (i.e. employee skill flexibility, employee behaviour flexibility, and HR practice flexibility) affect adaptability culture, which in turn impacts HR-related and market-related outcomes. The data were collected via a questionnaire survey of HR directors/managers in multinational corporations (MNCs) in Hong Kong. The results of structural equation modelling (SEM) reveal the positive effects of employee behaviour flexibility and HR practice flexibility on adaptability culture. Employee skill flexibility, however, exerts no such effect. Further, adaptability culture is found to affect both HR-related and market-related performance in a positive manner.     

The Indian perspective of strategic HR roles and organizational learning capability

This study focuses on the empirical analysis of strategic HR roles and organizational learning capability. Line and HR firm performance is further analysed. The sample size consisted of 640 managers in India. Standardized questionnaires were used as tools for the managers' perception of the two variables and their link to data collection. Statistical results indicate that correlation coefficients were mostly significant and positive for the variables and sub-variables of strategic HR roles and organizational learning capability. Discriminant functional analysis reflected that line and HR managers differed significantly in their perception of both variables. Stepwise regression analysis indicated that both the variables of strategic HR roles and organizational learning capability predict firm performance.     

‘Intended’ and ‘implemented’ HRM: the missing linchpin in strategic human resource management research

We argue that inconclusive findings in the SHRM literature regarding the relationship between HRM systems and organizational performance may result primarily from methodological weaknesses and a failure of researchers to distinguish between HR practices intended by the organizations and those actually implemented. Rather than relying upon a single respondent per organization as is the norm, we contrast reports of both managers and non-managers from inside and outside HR departments to highlight differences between intended and implemented HRM. The findings, arrived at with the help of 195 interviews, 508 questionnaire responses and several company documents, support our expectation: implemented HRM may be substantially different from intended HRM; consistent implementation increases employee satisfaction with HRM, which is positively related to organizational performance. The current study thus highlights new factors that require attention in developing HR–performance analyses and also suggests that a mere imitation of HRM in the hopes of improving organizational performance creates no value. It is crucial that HR departments and managers remain committed and supportive to the development of effective HRM systems by focusing upon actual ‘implementation’ within their organizations.     

Strategic HR system differentiation between jobs: The effects on firm performance and employee outcomes

The purpose of this research was to understand whether firms apply different human resource management systems to different occupations within the same organization (HR differentiation) and how the extent to which they do so may influence firm and employee outcomes. We conducted two studies pertaining to these questions. The first study was based on data collected from managers, and the results suggest that firms differentiate their HR investments based on the strategic value of occupations to the firm, which was further associated with the human capital of those occupations. Differentiation in human capital was also associated with firm performance. The second study was based on data obtained from nonmanagement employees. The findings indicated that employees who were recipients of less HR system investment had lower fairness perceptions, which were further associated with higher turnover intentions and lower organizational citizenship behavior. Although the evidence from these studies suggests that firms may realize benefits from strategic HR system differentiation, managers should carefully consider how to balance the effects of differentiation on firm performance and employee well‐being before implementing such systems.     

Public Managers’ Skills Development for Effective Performance Management: Empirical evidence from Italian local governments

Performance management has become an important element of the reform agenda of public sector around the world. However, scholars and practitioners highlight that many public administrations do not manage performance very well. A ‘litmus test’ of the success of a performance-based reform is observing whether public managers use performance information to make better-informed decisions. Having said that, the aim of this article is to see whether public managers of Italian local governments in the Apulia region (the South of Italy) use performance information after the last performance-based reform (Brunetta’s Reform: decree No. 150/09). The learning purpose is analysed and discussed. The research may suggest scholars, practitioners and policy makers the routes for developing performance utilization in difficult organizational contexts where performance management systems do not work.