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).     

Looking beyond HRM practices in enhancing employee retention in BPOs: focus on employee–organisation value fit

This paper argues that the effectiveness of HRM practices in tackling employee retention can be enhanced by improving the compatibility between employee and organisational values. We test our hypothesis using structural equation modelling on a sample of 258 employees in business process outsourcing (BPO) firms in the Philippines. The results show that the fit between employee and organisation values positively and partially mediates the effects of HRM practices on employee retention. However, employee–organisation value clash in US-owned BPOs was found to have a negative effect on employee retention. Because employees are less likely to leave when they share similar values as their organisations, HRM practices can be used strategically to improve the employee–organisation value fit to improve retention. The implications of the findings for HR managers of BPOs in developing countries are fully discussed.     

High reliability Human Resource Management (HRM): A system for high risk workplaces

High Performance Work Systems (HPWS) research is based on the search for the most suitable bundle of complementary practices appropriate for the organisation and its operating environment. We examine the contents of a HPWS in organisations seeking impeccable safety and reliability as their foremost ‘performance’ outcome. We propose a ‘High Reliability HRM’ framework, and examine the degree of implementation in a three case study of Australian state emergency services organisations. The findings highlight HRM practices inconsistent with the framework, and illustrated by rich interview accounts, we detail associated negative implications for employee behaviour and attitudes. We contribute to HPWS research by empirically examining how reliability-seeking organisations conceptualise and implement HRM systems. This study emphasises how inconsistency in HRM practice bundles can pose a threat to reliable service provision, a critical finding for emergency services and reliability-seeking organisations more broadly.     

Front‐line managers as agents in the HRM‐performance causal chain: theory,analysis and evidence

Research on the link between HRM and organisational performance has neglected the role of front‐line managers, yet it is these managers who are increasingly charged with the implementation of many HR practices. Using an employee survey in 12 ‘excellent’ companies we explore the extent to which employee commitment towards their employer and their job are influenced by the quality of leadership behaviour and by satisfaction with HR practices. Both have a strong effect on employee attitudes. The article concludes with a case study of a planned effort to improve front‐line managers' skills in people management.     

Strategic HRM as process: how HR system and organizational climate strength influence Chinese employee attitudes

In contrast to the high-performance work systems literature that focuses on HR practices, we follow Bowen and Ostroff in examining human resource management (HRM) processes, specifically the strength of an HR system (its distinctiveness, consistency, and consensus) and its contribution to the organizational climate (employees' shared perceptions of the HR system). Based on 810 employees within 64 units in three Chinese hotels, we examine how employee perceptions of HRM system strength and organizational climate are associated with employees' work satisfaction, vigor, and intention to quit. The distinctiveness of an HRM system was found to be related to the three employee work attitudes, and high climate strength increases both the positive relationship between consensus and work satisfaction, and the negative relationship between consensus and intention to quit. We draw on aspects of Chinese society to interpret these findings. Several important research and HR practice implications are highlighted and discussed.     

Control and commitment HR practices,job satisfaction and turnover intentions: a comparison between local and multinational firms in China

There is a growing body of literature and debate around control versus commitment human resource management (HRM) systems and their impacts on employees. However, the impacts of these constructs have not been widely examined in more emerging economies. Taking a specific sample of educated professionals working for multinational and local firms in China, this study investigated employee perceptions of control and commitment HR practices, job satisfaction and turnover intentions. A total of 311 respondents completed a structured survey questionnaire. Results revealed that those working for multinational firms reported more positive perceptions of their employers' control and commitment HR practices. In multinational firms, the use of commitment HR practices predicted lower intentions to leave. However, in domestic firms a lack of control HR practices predicted higher turnover intentions. Theoretically, the study adds to discussions about the nature and roles of these constructs, their impacts on HR outcomes and how institutional mechanisms might shape the degree of HRM homogeneity and hybridity across organizations in China. Practically, the study provides guidance to international and local firms on how to improve their HRM effectiveness to achieve a higher retention of their most talented professionals.     

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 alternative relationships between perceived investment in employee development,perceived supervisor support and employee outcomes

The purpose of this study was to explore alternative relationships between perceived investment in employee development (PIED), perceived supervisor support (PSS), and employee outcomes in the form of attitudes (affective commitment and turnover intention) and work performance (work effort, work quality and organisational citizenship behaviour). A cross-sectional survey among 331 employees from a Norwegian telecommunications organisation showed that the relationship between PSS and employee attitudes was partially mediated by PIED. In addition, PSS was found to moderate the relationship between PIED and three self-report measures of work performance. The form of the moderation revealed a positive relationship only for high levels of PSS. These findings suggest that line managers are of vital importance in implementing developmental HR practices, either because they influence how such practices are perceived by employees, which, in turn, affects employee attitudes, or because positive experiences with both line managers and HR practices seem to be needed in order for developmental HR practices to positively influence employee performance.     

HR practices and commitment to change: an employee‐level analysis

This article explores the relationship between HR practices and commitment to change in three health service organisations in Ireland. The research focuses on employee views of HR practices and resulting employee‐level consequences including commitment to change, perceptions of the industrial relations climate and the psychological contract, and work–life balance. The findings indicate that the HR practices valued by employees, and which are related to a range of employee‐related consequences, are very different from the lists of sophisticated HR practices that appear in the high performance literature. The research suggests that organisations need to ensure that attention is still paid to the basics of the employment relationship and that these are not lost in the rush to introduce more sophisticated approaches to managing employees.     

The relationship between perceptions of HR practices and employee outcomes: examining the role of person–organisation and person–job fit

Human resource management (HRM) practices can play an important role in matching people with the organisations and the jobs they work in. However, little is known about how employees perceive and interpret HR practices and whether or how these perceptions relate to perceptions of person–organisation (P–O) and person–job (P–J) fit. This study aims to bridge strategic HRM and person–environment fit literature by examining possible mediating and moderating roles of P–O and P–J fit in the relationship between employee perceptions of a broad set of HR practices and employee attitudes and behaviours. Results from a sample of 412 employees support direct relationships as well as a mediating and moderating role of P–O and P–J fit in the relationship between perceived HR practices and employee outcomes.     

HRM practices and organizational commitment profiles

In this study, we examined how employee perceptions of development-oriented, stability-oriented, and reward-oriented human resource management (HRM) practices affected the likelihood of affective and continuance commitment profile membership. Our focus on profiles of combined commitment components is a departure from a literature dominated by studies of the separate forms of employee commitment. Drawing from self-determination theory (Deci and Ryan 2000) we described the nature of the psychological states believed to underlie the specific profiles under investigation, then tested a series of theoretical predictions concerning the link between HRM practices and the likelihood of profile membership. Predictor and criterion data for this study were collected from 317 respondents working in a variety of Canadian-based organizations. Our findings suggest ways that organizations can use HRM practices strategically to help shape the nature of overall employee commitment.     

Trust as moderator in the relationship between HRM practices and employee attitudes

The study contributes to the debate in the HRM literature by examining the role of trust in management in moderating the effect of HRM practices on employee attitudes. The novelty of the study lies in our interest in assessing this relationship not only on a system of HR practices, but also considering whether the influence varies according to specific ‘bundles’ of practices. Adopting a Structural Equation Modelling approach, we first test the moderation using an HRM index of seven practices on a sample of 9,000 employees from 46 Italian organisations. Then, following the AMO approach, we assess the relationship on three ‘bundles’ of practices, one oriented to increasing ability, another motivation and the third opportunity to participate. Results confirm the moderation with the overall HRM index. Interestingly, the effect varies depending on the HR bundles, being significant only with the motivation practices and not relevant in the other two bundles.     

Who's in the driving seat? Managing human resources in a franchise firm

This article reports on the findings of a study within the automotive franchise retail sector which shows how employees' experiences of HRM can, under some circumstances, be influenced both directly and indirectly by third‐party organisations. A model that describes these patterns of influence is put forward. These findings point to the way in which inter‐firm relationships influence the employment relationship from the perspective of both the employer and the employee, and raise questions about the limits of control exercised by HR department policies and activities. The article also contributes to the relatively limited literature on the operation of franchising systems, in particular concerning the role played by HR policies and practices as a mechanism for inter‐organisational control.     

Satisfaction with HR practices and commitment to the organisation: why one size does not fit all

This article examines the links between employees' satisfaction with HR practices and their commitment to the organisation. It draws on recently collected data to examine these links for three groups of employees: professionals, line managers and workers. Satisfaction with some HR practices appears to be linked to the commitment of all employees, while the link for others varies befuwn the three employee groups. These findings pose a challenge to the universalistic model of HRM and have implications for those seeking to design practices that will improve organisational commitment.     

High‐commitment HR practices,employee effort,and firm performance: Investigating the effects of HR practices across employee groups within professional services firms

In this study, the authors examine the relationship between high‐commitment HR practices and firm performance in professional services firms through the mediator of employee effort. In addition, they contribute to the debate in the field of strategic HRM on whether high‐commitment HR practices should be used across all employee groups within a firm. Their study's results show that high‐commitment HR practices positively relate to firm performance through employee effort for two employee groups within professional services firms. Further, they found that the relationship between effort and performance is contingent on the value of the employee group to firm competitive advantage, suggesting that companies may only want to expend the effort and resources on building a high‐commitment HR system for employee groups that are clearly tied to creating firm competitive advantage. © 2011 Wiley Periodicals, Inc.     

HRM Practices,Organizational Citizenship Behaviour,and Performance: A Multi‐Level Analysis

We examine the relationship between HRM practices, conceptualized at the workplace level, and individual employee attitudes and behaviour. We focus on two possible explanations for the relationship: social exchange and job influence/employee discretion. Findings from a study of employees in North‐East England suggest that there is a positive impact of HRM practices on organizational citizenship behaviour, through an effect on perceived job influence/discretion. There was no such effect for perceived organizational support. These findings provide support for a job influence and opportunity explanation of HRM effects on employee attitudes and behaviour.     

Demands or Resources? The Relationship Between HR Practices,Employee Engagement,and Emotional Exhaustion Within a Hybrid Model of Employment Relations

This article explores the ways in which employees may experience and respond to tensions inherent in the mix of potentially conflicting human resource (HR) practices that compose hybrid models of employment relations. By drawing on the job demands–resources (JD‐R) literature and viewing HR practices as “demands” and “resources,” we explore the impact of performance management and employee voice practices on employee well‐being, as exemplified by engagement and emotional exhaustion, in a large public‐sector organization in Ireland. Our findings suggest that employee voice mechanisms may act as a resource in both enhancing engagement and in counterbalancing the demands presented by a performance management system, thus reducing the deleterious effects of emotional exhaustion. Our study extends understanding of hybrid models of human resource management (HRM) and of the ways in which employees manage the contradictory signals that such models may send in terms of performance expectations. © 2015 Wiley Periodicals, Inc.     

'Fun and surveillance': the paradox of high commitment management in call centres

Much of the research into telephone call centres has focused on the coercive employment systems which are adopted in these organizations. This appears to contrast with the high levels of customer service and satisfaction which are often required for them to be successful. Our research, which is based on two case studies of call centres studied in depth, challenges this 'satanic mills' image. We explore the ways in which both companies sought to balance the pressures in the product and labour markets and employee needs to develop strategies which combined elements of commitment and control. They developed sophisticated human resource practices, which resembled the high commitment management approach, while, at the same time, maintaining a highly controlled and measured work environment. Consequently, there was a greater alignment between their HR practices and control systems, the needs of employees and the high quality of interactions with customers expected. This suggests that high commitment practices are not automatically associated with extensive employee discretion, as has been argued in the manufacturing sector. HR practices of this kind can be used to offset some of the worst features of call centre working. These findings illustrate the variety of HR practices in call centres and suggest some possible reasons for this diversity.     

Employee involvement and participation: developing the concept of institutional embeddedness using WERS2004

It is widely accepted that employee involvement and participation (EIP) is a key component of the high commitment bundle of HRM, but that it can take a range of forms in practice. Much of the analysis to date has either treated different forms of EIP as a single construct or has measured EIP by virtue of its presence or absence alone. Drawing on earlier work based on the data from WERS1998 examining the link between various forms of EIP and employee outcomes such as job satisfaction and organisational commitment, the authors re-apply and extend these ideas to data from WERS2004. In particular they develop the concept of institutional embeddedness, in order argue that both the depth and breadth of EIP have important associations with commitment though not with satisfaction.

This association held for workplaces employing 25 or more workers, and here it was apparent that the more that employees are involved at workplace level – through a wider number of EIP practices that are held more frequently and include opportunities for workers to have their say – the more likely it is that investments in EIP will reap the reward of organisational commitment. For smaller establishments, given that they tend to operate with relatively few formal schemes, it is likely that managers in these workplaces find alternative ways in which to engage the workforce, and that informal EIP offer similar levels of embeddedness in these situations. A clear implication to be drawn from the findings is that, in a context of lower levels of formality within organisations (large and small), line managers are more than ever the key link between HR policy and the embodiment of actual practice at the workplace.     

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.