‘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.     

Complexities and Controversies in Linking HRM with Organizational Outcomes

Our understanding of the way in which human resource management (HRM) is linked to organizational performance is still limited, despite recent advances that use a quantitative approach to argue for a strong positive relationship between 'High Performance Work Practices' and firm financial performance. These studies are limited by their reliance on a single informant in each organization, and their emphasis on financial performance at the expense of a broader range of outcome variables. This paper contributes to the debate by analysing in detail the human resource policies and practices of one case-study organization over a two-year time period, using a variety of methodologies and drawing on a broad range of informants across the organization. Instead of devising a list of 'best practice' HRM from the literature and testing its impact on performance, we instead invert the question and take a firm that is financially successful and ask what HR policies and practices it uses. We also examine the way in which these policies are enacted. This methodology enables us to show that even successful organizations do not always implement 'best practice' HRM, and that there is frequently a discrepancy between intention and practice. Outcomes at the individual and organizational levels are complex and often contradictory; we question the extent to which is it possible or meaningful to attempt to measure the interrelationship between HRM, at the level of the formal system, and organizational performance, without taking into consideration the role played by the informal organization in the process and implementation of HR policies.     

The effect of individual HR domains on financial performance: evidence from Belgian small businesses

The contribution of this study, which assesses the influence of HRM on financial performance, is fourfold. (1) We assess the relative contribution of different HR domains to organizational performance. By controlling for the overall HRM intensity in all analyses we try to meet one of the most striking shortcomings of ‘single HR practice research’, namely the neglect of the potential simultaneity that might exist with other HR practices. (2) By studying small Belgian companies, we focus on the importance of HRM for small business management. (3) Relying on bankruptcy prediction models, we optimize the conceptualization of financial performance. (4) Using structural equation modelling, we try to capture the mediating effect of operational performance on the relationship between HRM and financial performance. The analyses indicate mixed results for different HR domains with regard to their impact on operational and financial performance.     

Human resource function strategic role and trade unions: exploring their impact on human resource management practices in Uruguayan firms

Organizations worldwide are confronted with different contextual constraints. Jackson and Schuler [1995, ‘Understanding Human Resource Management in the Context of Organizations and their Environments,' Annual Review of Psychology, 46, 237–264], in their classical review, highlight the importance of the impact of the internal and external organizational context on human resource management (HRM) practices. This paper uses data collected through a survey of firms located in Uruguay, in a context where HR function and trade unions have gone through significant changes, to determine their impact on the adoption of different HRM practices. The authors find that organizations with an HR function strategically involved and with higher degree of union presence have more person-centred HRM practices, while performance-centred HRM practices were positively influenced by HR function strategic role. However, the findings do not support the moderating role of trade union presence on the relationship between the HR function strategic role and HRM practices.     

Introducing the impact of technology: a ‘neo-contingency’ HRM Anglo-French comparison

The paper analyses the impact of technological and national-culture factors on certain HRM policies and practices in Britain and France. This perspective supports the neo-contingency approach, which does not claim primacy for either the technological or the national-cultural factors shaping HRM policies and practices. HR managers in each country in high-, mid- and low-tech firms were surveyed. The relevance in the diffusion of certain patterns of HRM policies and practices advocates that employees working in intensive technology firms need a creative and adaptive HR management approach. The differences found in the application of the HRM practices studied between the two countries are illustrated through the educational system, which is different in France and Britain.     

Variability in HRM implementation among line managers and its effect on performance: a 2-1-2 mediational multilevel approach

Over the last few decades, a substantial body of research has examined the relationship between human resource management (HRM) and performance. However, little attention has been given to the implementation of HRM, although an HR policy can be implemented in various ways within an organization. In addressing recent calls in the literature to examine this issue more closely, we study the role of line managers in implementing HRM and the influence of employees' perceptions of HRM. In a multilevel study of 315 employees and 41 line managers drawn from various work-units of a Dutch municipality, we tested whether HR practices, as implemented by line managers, affect employees' perceptions of HRM and whether these perceptions in turn relate to perceived unit performance. The analysis shows that implemented HR practices differed between work-units. More specifically, our study shows that these differences can be explained by a line manager's leadership style. Moreover, our findings indicate that employees' perceptions of the HR practices implemented mediate the relationship between the HR practices implemented by line managers and perceived unit performance. These findings contribute to our understanding of how HRM affects performance.     

Configurations of human resource management practices: a model and test of internal fit

This study examined human resource management (HRM) configurations. A typology consisting of four bundles of aligned HRM practices (labelled the bureaucratic, market, professional and flexibility bundle) linked to organizational structures was developed. Support for the proposed ideal-typical bundles was found in an assessment by a panel of experts. Next, the distance between the ideal types and actual bundles of HR practices was assessed for 175 organizations. For each, senior HR managers' ratings of HRM practices and CEO ratings of outcomes were obtained. Support was found for two of the four proposed types and about one-third of the firms showed some fit with one of these two types. The ‘fit in general hypothesis’ (i.e. the closer an observed HR bundle resembles any of the ideal types, the higher organizational performance) did not receive support. However, fit with a specific type of bundle (the professional bundle) did relate positively to outcomes. Organizations with observed HRM practices fitting the professional bundle score significantly higher on measures of firm performance, employees' going beyond contract, and firm innovativeness.     

The impact of human resource management practices on intention to leave of employees in the service industry in India: the mediating role of organizational commitment

The purpose of this study was to investigate the impact of a bundle of eight human resource management practices on intention to leave, and to examine the mediating effect of organizational commitment on the relationship between the HRM practices and intention to leave of employees of a service organization in India. Most of the prior HRM practices–employee turnover studies have been from the HR manager's point of view. This study took a different approach and studied this relationship from an employee's point of view. Internet survey questionnaires were used to collect the data from 183 employees working in a service company in India. Multiple linear regression and hierarchical linear regression analysis were conducted to test the hypotheses. The study found not only that the HRM practices lower employee intentions to leave, but also that this relationship is partially mediated by organizational commitment. The results of the study not only supported that organizations should focus on employee perceptions of the organizations' HRM practices but also indicated that human resources should go beyond establishing policies and procedures to providing an employee-friendly work environment (Biswas and Varma 2007).     

Linking human resource management practices and customer satisfaction on product quality

Although research has addressed relationships between human resource management (HRM) practices and several firm performances, it remains rare for studies to assess the processes that may underlie such relationships. This study aims to investigate the relationships between HRM practices and product quality by hypothesizing a mediating role of organizational commitment. We design a conceptual model and construct hypotheses that are tested using structural equation modeling on data collected from an international sample. The study contributes to the theoretical and empirical development of a model to explain and open the black box between skill-developing HR practices and quality performance.     

The whole is more than the sum of its parts? How HRM is configured in nonprofit organizations and why it matters

Evidence points to the central importance of configurations of mutually reinforcing HR practices as they are assumed to provide the basis for understanding how HRM relates to organizational performance. While progress has been made regarding the construction and effects of HR architectures in the for-profit literature, few studies investigate how HR architectures are configured in nonprofit organizations (NPOs). Therefore, this paper aims to advance a conceptual model that captures the relationship between ideal types of HR architectures and performance in NPOs. We develop theoretical propositions that provide further insight on the HR programs and HR practices that define the HR architectures and entail implications about variations in performance outcomes in NPOs.     

HRM professionals and their perceptions of HRM and firm performance in the Philippines

This paper reports the findings of a study conducted in the Philippines that examines the extent of adoption of human capital-enhancing human resource (HR) and industrial relations (IR) practices. Differences between locally owned and other organizations in these practices and their relationship to firm performance were also investigated. Questionnaire responses were obtained from managers and union representatives from 128 organizations located in the Philippines. The results indicated that there was, on average, a fairly high level of adoption of practices consistent with a strategic approach to human resource management (HRM), with foreign-owned firms tending to show a slightly higher level of adoption of such practices. A scale representing the adoption of a more conciliatory and union-friendly IR approach was found to be a significant predictor of perceived firm performance. Surprisingly, the level of strategic integration between HRM and business planning and most human capital-enhancing HR practices were not significant predictors of perceived firm performance. Research and practical implications in relation to the role of HRM in enhancing firm performance are discussed.     

Content vs. Process in the HRM‐Performance Relationship: An Empirical Examination

This study investigates the impact of a human resource management (HRM) system, which integrates both content and process of human resource (HR) practices, on organizational performance, through collective employee reactions. The analysis is based on a sample of 1,250 Greek employees working in 133 public‐ and private‐sector organizations, which operate in the present context of severe financial and economic crises. The findings of the structural equation modeling suggest that content and process are two inseparable faces of an HRM system that help to reveal a comprehensive picture of the HRM–organizational performance relationship. Based on the findings that collective employee reactions mediate the HRM content (i.e., organizational performance relationship) and HRM process moderates the HRM content (i.e., employee reactions relationship), the study has several theoretical and practice implications. © 2014 Wiley Periodicals, Inc.     

The influence of strategic HRM and sector on perceived performance in health services organizations

In this study, we examine a variety of management characteristics of for-profit and not-for-profit organizations in the health services (HS) industry. Data collected from Australian senior executives are used to test the relationships between managerial constructs such as employee commitment, customer demandingness, strategic HRM orientation and the adoption of human capital-enhancing human resource (HR) practices and perceived overall performance. Data analysis conducted using the Partial Least Square Modeling show a statistically significant path from commitment to employees, customer demandingness and strategic HRM orientation to the adoption of human capital-enhancing HR practices (such as selective staffing, comprehensive training, and performance appraisal) to perceived organizational performance. The results also show that private sector health service organizations have a higher level of perceived performance.     

Strategic HRM in China: Configurations and competitive advantage

The strategic HR literature suggests that a firm will perform better through internal appropriate fit among HRM practices (the configuration fit) and through external appropriate fit between a firm's HRM practices and business strategy. The present study adopts a configuration approach to identify unique patterns of HR practices and business strategy that are posited to be maximally effective. The proposed relationships were empirically tested by surveying with a sample of 241 business firms in Guangzhou, South China, to find out the extent that four HR configurations could be successfully adopted in the Chinese context. The results revealed that HR configurations are significantly related to effect in predicting overall outcome performance and turnover, but not significantly related to effect on sales growth and profit growth rates. Research findings showed not only competitive strategies are significantly related to effect on HR configurations. The results also showed significant interaction effects between HR configurations and business strategy in their effect on profit and sales growth. These results further extended support for a contingency perspective in strategic HRM to the Chinese context, with significant practical implications for managing HRM in China. © 2008 Wiley Periodicals, Inc.     

To be strategic in the new public sector,HR must remember its operational activities

This article examines the level of operational and strategic involvement by human resource departments, the influence of HR departments, and the level of strategic integration as predictors of human resource management per‐formance. Surveys from 146 senior line managers and HR executives in com‐mercialized and noncommercialized public‐sector agencies in Australia were the basis of organizational‐ and individual‐level analyses. Results indicate positive relationships between the degree to which operational HR activities are transferred to line managers, HR influence, strategic integration, and the performance of the HRM function. Interestingly, no relationship was found between the level of strategic involvement by HR departments and the per‐ceived performance of the function. Analysis of the individual‐level data sup‐ports the multiple‐constituency approach to HRM, with differences in the evaluation of HRM by respondents from different job functions. The study highlights challenges faced by HR practitioners needing to be operational, to be valued strategically. © 2007 Wiley Periodicals, Inc.     

The HR quadriad: a framework for the analysis of HRM in project-based organizations

This paper introduces the idea of the ‘HR quadriad’ as a framework for the analysis of HRM as a collective, configurational, and complementary system of roles and practices. The framework highlights the interplay between HR specialists, line managers, project managers, and project workers in the implementation of HR practices. On the basis of a multiple case study comprising six project-based organizations, two organizational factors are singled out as important for the design of the HR quadriad: (1) the nature of project work as either intra-functional or inter-functional, and (2) project participation as either focused or fragmented. The paper gives empirical support to recent research on HRM favoring the synergic integration of the elements of HRM systems designed in a way that acknowledges internal coherence and organizational conditions.     

Using theory on authentic leadership to build a strong human resource management system

Prior work has questioned whether human resource management (HRM) lives up to the organizational benefits it espouses. The intentions underlying human resource (HR) practices often differ from how they are implemented by line managers or how they are ultimately perceived by followers, thus undermining the strength of the HR system in influencing organizational outcomes and with them the overall reputation of HRM. We argue that line managers, specifically those who display authentic leadership behaviors, can strengthen an HR system (i.e., aligning intended, actual, and perceived HR policies and practices) by implementing HR practices in a way that they are perceived as distinct, consistent, and reflecting consensus. Authentic leadership theory departs from more traditional, top-down fit perspectives in strategic HRM to consider the dynamic way in which individuals within an organizational context co-create felt and perceived authenticity in interaction with others. In other words, by providing a more dynamic approach to creating alignment in HRM, authentic leadership helps HRM attain more authenticity and credibility in the organization.     

The linkage of HRM and knowledge-related performance in China's technology-intensive industries

This study examines the commitment-based and knowledge-based HR types to fully understand the role of HRM in China's technology-intensive industries. The relationships between the knowledge-based HR and commitment-based HR on firm performance were examined by using 156 firms in China's high technology industry in the Pearl River Delta area. The effects of innovation capability and workforce retention between HR and performance were also explored. The firm's innovation capability has been found to be an important determinant of firm performance. Retention has no significant impact on performance outcomes. HR plays a more important role in the growth stage of organizational life cycle. Implications for research and managerial practices are provided.     

Lost in translation: exploring the link between HRM and performance in healthcare

Using data collected in 2004 from 132 Victorian (Australia) public healthcare providers, comprising metropolitan and regional hospital networks, rural hospitals and community health centres, we investigated the perceptions of HRM from the experiences of chief executive officers, HR directors and other senior managers. We found some evidence that managers in healthcare organisations reported different perceptions of strategic HRM and a limited focus on collection and linking of HR performance data with organisational performance management processes. Using multiple moderator regression and multivariate analysis of variance, significant differences were found in perceptions of strategic HRM and HR priorities between chief executive officers, HR directors and other senior managers in the large organisations. This suggested that the strategic human management paradigm is ‘lost in translation’, particularly in large organisations, and consequently opportunities to understand and develop the link between people management practices and improved organisational outcomes may be missed. There is some support for the relationship between strategic HRM and improved organisational outcomes. Implications of these findings are drawn for managerial practice.     

Configurations of human resource practices and battlefield performance: A comparison of two armies

A prominent theme in the HRM literature is the organizational impact of configurations or “bundles” of human resource practices, mostly researched in business firms. A recurrent empirical finding here is that configurations of high performance HR practices generally have a more positive effect on employee attitudes and behavior and on organizational performance than configurations of traditional HR practices. In this paper this research is extended beyond business firms to include army organizations. Specifically it is argued, first, that these two configurations are exemplified in respectively the German Army and the US Army in World War II and second, that these configurations can be reasonably related to a relatively more effective battlefield performance of the German versus the US Army, even in spite of final defeat.