HRM systems between control and commitment: occurrence,characteristics and effects on HRM outcomes and firm performance

In the literature, it is often assumed that traditional, control‐oriented HRM systems are increasingly being replaced by commitment‐based HRM systems because the latter generally result in higher firm performance. However, an HRM system's effectiveness may depend on an organisation's external and internal context, and neither control nor commitment HR systems are without disadvantages. Thus, the empirical validity of this claim is not clear ex ante. This paper analyses the empirical diffusion and determinants of control and commitment HRM systems in Germany as well as their impact on HRM outcomes and firm performance. The findings indicate that between the two extreme forms of high‐control and high‐commitment HRM systems, there are two hybrid forms (long‐term‐oriented control system and regulated commitment system) that combine elements of both ‘pure’ systems. Commitment HRM systems outperform the high‐control HRM system concerning many HRM outcomes and firm performance measures. However, in direct comparison, the high and the regulated commitment HRM systems do not show substantially different outcomes, indicating that there is no one best way.     

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.     

From the British worker question to the impact of HRM: understanding the relationship between employment relations and economic performance

The long‐running UK debate over the relationship between employment relations and economic performance is examined. Its four phases are identified as: British worker question, British economic miracle, ‘what do unions do?’ and Human Resource Management (HRM) and performance. Change in the terms of debate is observed. Important common threads are identified. Recommendations for future research are made.     

Age‐related differences in the relations between individualised HRM and organisational performance: a large‐scale employer survey

The current study aimed to investigate the relationship between individualised HRM practices and several measures of organisational performance, including the moderating role of employee age in these relationships. A large‐scale representative study among 4,591 organisations in the Netherlands showed support for the relationships between individualised HR practices with organisational performance. Employee age moderated the relationships between the use of individualised practices and sickness absence and turnover, such that organisations with a high percentage of older workers benefited from work schedule practices, and organisations with high percentage of younger workers benefited from development practices.     

HRM and performance: what next?

The last decade of empirical research on the added value of HRM, also known as the ‘HRM and performance’ debate, demonstrates evidence that HRM does matter (Huselid, 1995; Guest et al, 2003; Wright et al, 2003). Unfortunately, the relationships are often statistically weak and the remlts ambiguous. This article reviews and attempts to extend the theoretical and methodological issues in this debate. Its aim is to build an agenda for future research in this area. A brief overview of achievements to date is followed by the theoretical and methodological issues related to what constitutes HRM, what is meant by the concept of perfomzance and the nature ofthe link between these two. In the final section, it is argued that research designs should start from a multi‐dimensional concept of performance, including the perceptions ofemployees; and build on the premise of HR systems as an enabling device for a whole range of strategic options. This implies a reversal of the strategy‐HRM linkage.     

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.     

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.     

HRM and performance: the vulnerability of soft HRM practices during recession and retrenchment

This multi‐method case explores how change in HRM implementation can impact performance metrics in a recessionary climate. Qualitative HR outcome data are mapped against financial metrics to explore adoption of hard‐line HRM practices in a major UK retailer. Despite record profits throughout the recession, the organisation responded strategically to worsening conditions in the labour market, firstly to maintain operational flexibility, but then to opportunistically enlarge jobs and intensify work to help achieve immediate gains in financial metrics, including a gain of 37 per cent in profit per employee over 3 years. These gains were achieved by derailing commitment‐based approaches to HRM, pointing towards the vulnerability of soft HRM systems during times of austerity or retrenchment.     

Exploring the relationship between HRM and firm performance: A meta-analysis of longitudinal studies

Existing literature on human resource management (HRM) practices and firm performance suggests that there is a positive association between the two variables. Most of the studies, however, are based on cross-sectional datasets and only few of them use panel or longitudinal datasets, which better allow the researchers to deal with problems of endogeneity. This paper draws on meta-analysis techniques to estimate the effect size of the relationship between high performance work practices (HPWPs) and firm performance measures based on the available longitudinal studies. We also examine whether the effect is greater for a combination of HPWPs than for individual HPWPs, and for operational performance than for financial performance. The results from statistical aggregation of eight longitudinal HRM-performance studies demonstrate an overall reported correlation of 0.287. Additionally we find that a set of integrated, mutually reinforcing HPWPs has a stronger impact on firm performance than do HRM practices individually and that, this effect is statistically invariant between operational performance and financial performance.     

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.     

The relationship between HRM avenues of political influence and perceived organizational performance

This article explores the relationship between the human resource management function's access to avenues of political influence and perceived organizational performance. We examine responses from 441 Australian senior HRM managers who participated in an online survey of a national HRM professional association. Drawing from political influence theory, we develop a model and related hypotheses to investigate the impact of opportunities for the HRM function to manage and control the shared meaning of HRM on perceived organizational performance. Although there was no evidence of a moderating effect of avenues of HRM political influence, CEO support and organizational support for HRM predicted perceived organizational performance. HRM representation on the board of directors appears to serve a symbolic function only. Theoretical and practical implications are discussed in response to the identified importance of CEO and organizational support. © 2007 Wiley Periodicals, Inc.     

The impact of performance measurement on purchasing group dynamics: The Canadian experience

Purchasing groups were first created in the healthcare sector, which has faced unprecedented challenges in terms of cost control for over two decades. Purchasing groups are indeed supposed to generate additional savings and more efficient purchasing processes. However, although various aspects of purchasing groups have been studied since the early 2000s, both their performance measurement and the influence that this measurement has on inter-organizational dynamics have been neglected. In purchasing groups, the dynamics between the group itself and its members often results in tensions between both parties. Performance measurement within purchasing groups could alleviate those tensions, since “objective” data could then be used to improve communication.Based on a case study, this research sheds light on performance measurement in a purchasing group, on the dynamics between the group and its members, and on the interaction between performance measurement and inter-organizational dynamics. Results indicate that measuring performance impacts the dynamics between both parties, but that the relationship is also the other way around, and that the inter-organizational dynamics is quite complex. In addition, this paper proposes a framework summarizing the research findings.     

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.     

Editorial introduction: HRM and performance: confronting theory and reality

This editorial introduction has twin purposes. The first is to make a wide audience aware of the new Dutch HRM Network. The second is to introduce a set of papers which make a contribution to the connections between HR policies/strategies and organizational performance. These purposes are linked by the fact that the papers come from the inaugural conference of the Network that was held in the Rotterdam School of Economics at Erasmus University at the end of 1999.     

The performance of performance appraisal systems: understanding the linkage between appraisal structure and appraisal discrimination complaints

Abstract

Employee perceptions of the fairness of performance evaluations are critical to the success of any appraisal system. Research on performance management includes extensive studies on how bias emerges in the appraisal process. Despite this, there is no empirical evidence linking formal discrimination complaint filings – a key measure of bias - and performance appraisals. To close this gap, we conduct an empirical analysis using information on appraisal systems and discrimination complaints from the US federal government. Our findings suggest that agencies with better-designed appraisal systems will experience higher appraisal-related discrimination complaints, contrary to expectations. In particular, an expansion of training and voice opportunities are associated with an increase in appraisal discrimination complaints, while increased differentiation between performers is not consistently associated with complaints. For managers struggling with performance management, it may be better to spend time on improving performance-focused interpersonal communication rather than redesigning appraisal systems.     

服务导向与组织内外部营销表现关系之研究

在服务营销管理的领域中，内部营销及外部营销均为影响组织绩效的关键因素，本研究以餐饮业的服务员工及顾客为实证研究的对象，将服务导向作为主要变量，从员工及顾客的角度，发展一个整合服务导向及组织内、外部营销表现的模型，并以LISREL分析验证本研究所提出的假设。     

Relationship between just-in-time manufacturing practices and performance: A meta-analytic investigation

Just-in-time (JIT) manufacturing is among the most commonly researched topics in the area of operations management. This study examines the relationship between JIT manufacturing practices and performance outcomes by means of meta-analysis of correlations approach. Based on an in-depth analysis of literature spanning from 1992 to 2008, the results of this meta-analytic investigation support a positive relationship between JIT manufacturing practices and aggregate performance. However, the findings suggest that not all individual JIT practices are associated with all types of performance outcomes. This study highlights the JIT practices that have the greatest impact on individual performance outcomes and emphasizes the role of moderating factors in the relationship between JIT practices and performance. Theoretical and managerial implications are discussed and directions for future theory building in JIT are presented.     

Talent management in academia: performance systems and HRM policies

Talent and performance management are becoming a key strategic HRM issue for universities. This study adds to our knowledge by critically examining recruitment and selection practices for junior and senior academic talent in the Netherlands. We show that academic subfields differ in terms of how appointments are organised, how candidates are sought and identified and how performance indicators play a role in recruitment. We identify three key dilemmas in talent and performance management for universities: (a) transparency versus autonomy, (b) power of HR versus power of academics, (c) equality versus homogeneity. This article challenges the view of an academic world where the allocation of rewards and resources is governed by the normative principles of transparency and objective performance systems, and it highlights the distance between these HRM instruments and the actuality of social interaction in academic recruitment practices.     

Supply chain variability,organizational structure,and performance: The moderating effect of demand unpredictability

Supply chain process variability is the level of inconsistency, or volatility, in the flow of goods into, through, and out of a firm. The research investigates the links among organizational structure (formalization and integration), supply chain process variability, and performance as moderated by environmental uncertainty. We found that in a predictable demand environment, only formal control affects supply chain process variability, leading to improved financial results; but in an unpredictable demand environment, only cross-functional integration affects supply chain process variability, leading to improved financial performance. We also examined whether supply chain process variability is a complete or partial mediator of the relationship between organizational structure and performance, and found that: (1) in a predictable demand environment, supply chain process variability completely mediates the relationship between formal control and performance and (2) in an unpredictable demand environment, supply chain process variability partially mediates the relationship between integration and performance. Supply chain process variability has an inverse relationship with financial performance, regardless of the demand environment; and organizational structure provides managers with the mechanisms to mitigate this variability's detrimental impact on financial performance.