Determinants of employee training: impact on organizational legitimacy and organizational performance

Employee training is one of the most studied human resource practices, as it is considered critical for organizational success. However, employee training and its impact on organizational performance have usually been studied from an economic-rational perspective, in terms of the economic and competitive advantages that companies can achieve by training employees. This study goes beyond the economic-rational approach and draws on institutional theory. We introduce contextual factors in the analysis of the determinants of employee training to complement the variables of competitive advantage and explain the relationship between employee training and organizational outcomes. Data were collected from 374 organizations using a questionnaire administered in Spain. The findings support the idea that both economic-rational and institutional determinants influence employee training. There are also two different kinds of outcome from training employees: organizational legitimacy improves at the same time as organizational performance.     

The moderating effects of organizational context on the relationship between voluntary turnover and organizational performance: Evidence from Korea

Scholars have suggested that the relationship between voluntary turnover and organizational performance can be moderated by the organizational context in which turnover occurs. However, there are few empirical studies that examine such moderating effects. Using a sample of 161 firms in South Korea, this study investigates how the relationship between voluntary turnover and organizational performance is moderated by three context variables: (1) the degree of organizational usage of employee involvement practices, (2) the degree of organizational investment in employee training and development, and (3) the availability of potential workers. The results demonstrate that employee involvement practices significantly amplify the negative relationship between voluntary turnover and organizational performance, give marginal support for moderation from the availability of potential workers, and provide no support for moderation from the degree of organizational investment in employee training and development. We discuss theoretical and practical implications of this study for enriching our understanding of the relationship between voluntary turnover and organizational performance. © 2012 Wiley Periodicals, Inc.     

The longitudinal effect of HRM effectiveness and dynamic innovation performance on organizational performance in Taiwan

This longitudinal study examined whether HRM effectiveness and dynamic innovation performance increase the level and growth rate of organizational performance. In 2002 we sent questionnaires to the top 1,000 manufacturing companies in Taiwan, and 181 valid questionnaires were returned. Otherwise, innovation and organizational performance between 2002 and 2005 were measured by research intensity and labor productivity. Latent growth curve modeling methodology was used to analyze the panel data over the 4-year period. Our results indicated that there was significant individual variability in terms of the intercept and slope factors for research intensity and labor productivity. HRM effectiveness was found to be a significant predictor of the intercept and slope factors of labor productivity. Initially, research intensity had a significant impact on the initial status of labor productivity, and an increasing rate of research intensity could significantly affect the growth rate of labor productivity.     

Predicting excellent management performance in an intercultural context: a study of the influence of multicultural personality on transformational leadership and performance

What makes a manager in an intercultural context an excellent performer? This question is the subject of the present study. The study examines the influence of the five dimensions of multicultural personality via transformational leadership on excellent performance in a sample of managers (N = 138) working in an expatriate assignment or in a job dealing with subordinates of different cultural backgrounds. As expected, cultural empathy, open-mindedness and social initiative were found to have a positive effect on transformational leadership. However, no significant effects were found from emotional stability and flexibility on transformational leadership. Furthermore, a more transformational leadership style led to higher performance in an intercultural context, which was measured using management performance appraisals. Since an indirect effect of cultural empathy, open mindedness and social initiative on performance via transformational leadership has been found in this study, it seems that both these dimensions of multicultural personality and transformational leadership are needed for excellent managerial performance in an international environment.     

Exploring a possible route through which training affects organizational performance: the case of a Greek bank

Despite the dithyramb on training found throughout the literature, its impact on organizational performance still remains a ‘black box’ yet to be unlocked. Indeed, neither the intervening process nor the factors that mediate training effectiveness have been substantively explored or linked together in a framework. In this paper, gaining insights from the concept of the balanced scorecard and using the service profit chain as a strategy map, an attempt is made to formulate a casual linkage value chain that highlights one possible route through which training can impact organizational performance. Using a predictive design, data were collected from multiple sources (employees, customers, and the bank's financial records) and raters from a sample of 30 branches of a Greek bank. The findings confirmed a framework illuminating a value exchange process ignited by training. More precisely, the results suggested that a formal, structured, and long-term approach to training, as well as certain pre- and post-training conditions and activities, improve training effectiveness by creating positive perceptions about the training's value. The generated for employees value results to higher levels of job satisfaction which boosts employee loyalty, creating in this sense value for the organization. This value is reflected to customers, in terms of better service quality, and reciprocated to the organization through higher customer satisfaction and branch loyalty leading to improved profitability at the branch level.     

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.     

The mediating role of training utility in the relationship between training needs assessment and organizational effectiveness

In a survey among respondents from 96 organizations, we found that the utility of training partially mediated the relationship between Training Needs Assessment (TNA) comprehensiveness and the effectiveness of the organization. We did not find an effect of training quantity on training utility and organization effectiveness. Both TNA comprehensiveness and training quantity were found to be unrelated to organizational size. The results support the importance of conducting TNA in practice.     

The mediating role of organizational justice on the relationship between administrative performance appraisal practices and organizational commitment

This study investigates the relationships among administrative performance appraisal (PA) practices, perception of organizational justice and organizational commitment. The results obtained from 395 employees who work in manufacturing companies in Taiwan show that the implementation of administrative PA activities is highly associated with employee perception of organizational justice and that the level of perceived organizational justice is highly associated with the level of organizational commitment. The results also demonstrate that perceived organizational justice has a partial mediating effect on the relationship between administrative PA practices and organizational commitment. Theoretical and practical implications of these results are discussed.     

Time precedence in the relationship between organizational climate and organizational performance: a cross-lagged study at the business unit level

This article presents a two-wave cross-lagged study (average interval of two years) on time precedence in the relationship between organizational climate and organizational performance in 171 branches of a financial services organization in the Netherlands. It is argued that four HR-induced organizational climate dimensions influence organizational performance. Additionally, it was also hypothesized that high organizational performance influences the four organizational climate dimensions through investments in HR practices and through signalling effects. Finally, it was reasoned that possibly both processes are present simultaneously. Results of testing a series of competing models in AMOS showed that organizational climate at time point 1 influenced organizational performance at time point 2 rather than the reverse, or both processes being present simultaneously.     

The role of organizational culture and HRM on training success: evidence from the Canarian restaurant industry

This research aims to analyse the influence of organizational culture and human resources management (HRM) practices on the success of training at restaurants. Effective training is especially important for modern restaurants that aim to gain competitive advantage by means of good quality service and performance of their employees. To achieve this objective, an empirical study was conducted on 137 restaurants in the Canary Islands. Results show that organizational culture does not influence the success of the training programmes unless HRM practices that support the training process are implemented. Specifically, the study reveals the full mediating role of HRM practices between a continuous learning culture and effective training.     

Measuring organizational performance: beyond the triple bottom line

Measuring organizational performance is difficult, especially when what has to be measured keeps changing. Sustainability concepts have dramatically widened the scope of measurement options and leading organizations are grappling with sustainability reporting, but there is no sign of consensus on a common reporting standard and the competing frameworks are impossibly complex. This paper recognizes that measuring sustainable performance has to be conceptually based but simplified to be practically useful. It proposes a stakeholder‐based, Sustainable Balanced Scorecard (SBSC) conceptual framework coupled with a single‐measure Organizational Sustainability Performance Index to integrate the measures in the SBSC. The Index helps make sustainable organizational performance measurable and accessible to stakeholders. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

An empirical study of the dimensionality of organizational justice and its relationship with organizational citizenship behaviour in the Indian context

Cross-cultural research shows that while the concerns about organizational justice may be universal, operationalization of justice standards is highly particularistic (Greenberg 2001). The present study explores the dimensionality of organizational justice in the Indian context. Apart from procedural justice, interpersonal justice and informational justice, another justice dimension, labelled as empowerment justice, emerged during the study. Next, the study tests the relationships between justice dimensions and Organ's (1988) 5-factor conceptualization of organizational citizenship behaviour (OCB), namely helping, compliance, sportsmanship, courtesy and civic virtue behaviours. The perception of empowerment justice influences helping, compliance, sportsmanship, and civic virtue dimensions of OCB. Interpersonal justice significantly predicts courtesy behaviour. Implications for theory and practice are discussed.     

Sustainability,performance and organizational strategy: an empirical analysis of public organizations

This paper presents a first time empirical analysis of sustainable management and performance in public organizations. Prior evidence from private firms on the relationship between sustainable management and performance indicates that the benefits of adopting social responsibility practices accrue across a number of dimensions of performance. Empirical analysis of English local government suggests that sustainable management is related to sustainability performance but not to other measures of organizational performance. These conclusions raise questions about the nature of sustainable management in public agencies and the measurement of performance. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Shaping the organisational context for corporate entrepreneurship and performance in Iran: the interplay between social context and performance management

Abstract

Prior research highlighted the importance of an organisational context stimulating autonomous behaviour when trying to increase levels of corporate entrepreneurship. From a social exchange perspective, we argue that firms in developing countries need to complement such supportive practices with performance-oriented practices. Our findings indicate that Iranian firms with an organisational context characterised by an interaction of social context and performance management have more engagement in corporate entrepreneurship, and that corporate entrepreneurship mediated the relationship between the organisational context and firm performance. This provides a better understanding of the way firms in developing economies can shape their organisational context to promote corporate entrepreneurship in order to achieve better firm performance.     

Applying cognitive adjustment theory to cross‐cultural training for global virtual teams

Global virtual teams are faced with the challenge of developing trust in a technology‐mediated context to overcome anxiety and uncertainty in their interactions. Research shows that adjustment is a function of an individual's ability to manage his or her anxiety and uncertainty in an unknown context (Gudykunst, 1995). We propose that the type of cross‐cultural training (CCT) received can influence cognitive adjustment in global virtual teams. Building on phenomenology and sense‐making theory, we argue that training needs to develop global virtual team members' capabilities in dealing with the unknown rather than providing ready‐made concepts of cultures. Managerial implications of our theoretical discussion of cognitive adjustment and how CCT influences it are discussed, as are directions for future research. © 2009 Wiley Periodicals, Inc.     

Emotional exhaustion and job performance: the mediating role of organizational commitment

We analyze the impact of emotional exhaustion (EE) on turnover intention, task performance and organizational citizenship behavior (OCB) among hospital nurses in China. The differential mediating effects of affective organizational commitment on the associations between EE and turnover intention, task performance and OCB were examined. Data were collected from both nurses and their supervising physicians using a questionnaire survey in Mandarin. The results revealed full mediation effect for turnover intention and for OCB directed at the organization. There was a significant indirect effect for OCB directed at individuals and no mediation effect for task performance.     

Experiential cultural intelligence development: context and individual attributes

Cultural intelligence (CQ) represents advancement in the area of international human resources management and cross-cultural training. An experiential approach to CQ training is developed and analyzed. A diverse, multicultural group of over 370 participated. General self-efficacy and contextual aspects related to Contact Theory were found to be significant to training outcomes in CQ development. In crafting the most effective CQ training and education, organizations and international human resources staff can benefit from understanding individual and contextual influences. Our experiential approach to CQ education appears to hold promise and adds to the literature by producing a specific approach.     

Employee organizational commitment: the influence of cultural and organizational factors in the Australian manufacturing industry

The importance of enhancing employee organizational commitment (EOC) is highlighted by the extensive literature revealing its positive impact on employees' job performance, reducing absenteeism and turnover rates, and improving employees' adaptability to organizational change. This study provides an insight into how EOC levels can be enhanced by examining the contextual factors that can influence EOC. Specifically, the study examines the association between cultural, organizational, and demographic factors with the level of EOC in the Australian manufacturing industry. Data were collected by a survey questionnaire from a random sample of 500 managers with the results revealing that two cultural factors (outcome orientation and stability) and three organizational factors (organizational size, perceived organizational support and job satisfaction) were found to be significantly associated with the level of EOC. Further analysis provides a preliminary insight into how to enhance the EOC of specific managers with different cultural and organizational factors found to be associated with the EOC of managers at different levels in the organizational hierarchy. The findings have important implications for practitioners attempting to improve the level of EOC of their employees with the subsequent enhancements in the level of EOC likely to contribute to improvements in productivity and growth in the Australian manufacturing industry.     

Accentuating the interconnection between business sustainability and organizational performance in the context of the circular economy: The moderating role of organizational competitiveness

Sustainability development has gained significant importance in the modern business environment. The primary objective is to conduct an explanatory and quantitative study of the impacts of the social, economic, and environmental dimensions on organizational performance, considering the moderating role of organizational competitiveness. Data were collected from Chinese, Italian, and Romanian small and medium enterprises (SMEs). The questionnaires were distributed by applying simple random sampling techniques. The study sample size consists of 320 SME employees. Hierarchical regression was used to investigate the moderating impacts of organizational competitiveness on the relationships of the social, economic, and environmental dimensions and organizational performance. The regression analysis shows a positive relationship between the study variables. Small and medium-sized enterprises are focusing more on sustainable business practices.     

HRM and organizational performance in northern and southern Europe

This article aims to extend understanding of the firm-level impact of strategic HR practices on organizational performance. Adopting a contingency approach, it develops a structural model that considers direct and indirect influences of market growth, business strategy formalization and HRM centrality and practices on organizational performance in Europe. The study uses a comparative approach, revealing differences between northern and southern Europe. Clear differences appeared between the two clusters in the HR policies and practices correlated with higher performance, thus indicating that the link between HRM and performance may be different in different geographies.