The impact of best HRM practices on performance – identifying enabling factors

2014 ◽  
Vol 36 (5) ◽  
pp. 535-561 ◽  
Author(s):  
Georgios N. Theriou ◽  
Prodromos Chatzoglou
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Manufacturing Firms ◽  
Organizational Capabilities ◽  
Enabling Factors ◽  
Learning Capability ◽  
Content Type ◽  
Hrm Practices ◽  
Final Sample ◽  
The Impact

Purpose – The purpose of this paper is to empirically examine the relationships between best human resource management (HRM) practices, knowledge management (KM), organization learning and organizational capabilities (OC), as well as their impact on organizational performance. Design/methodology/approach – To carry out this research, a structured questionnaire was designed and distributed to 212 manufacturing firms which employ at least 50 employees. The final sample consists of 138 useable questionnaires. Findings – Results indicate that manufacturing firms pursuing best HRM practices achieve higher performance through the interaction of these practices with KM and organizational learning capability and the creation of OC. Research limitations/implications – Possible limitations of the study include the measurement of OC, the use of subjective performance indicators and the data collection approach reflecting mainly HRM managers’ perceptions. Practical implications – HR practitioners and/or managers should focus on establishing the appropriate mechanisms for integrating “best HRM practices” with learning, knowledge and OC in order to improve performance. Originality/value – This paper empirically tests a new composite model which elaborates upon the mechanisms that seem to intervene between the best HRM practices – performance relationship. Moreover, the value of the human factor in KM and organizational learning initiatives, as well as on OC, is explored. While this has already been underlined in the past, there is still no complete model simultaneously describing and testing all those relationships.

Strategic factors and significance of organizational innovation and organizational learning in organizational performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bahadur Ali Soomro ◽  
Shahnawaz Mangi ◽  
Naimatullah Shah
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Organizational Innovation ◽  
Shared Vision ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Factors ◽  
The Impact

PurposeThe study investigates the experience and significance of strategic factors in organizational innovation (OI) and organizational learning (OL). The study also examines the impact of OI and OL on organizational performance.Design/methodology/approachThe study takes a quantitative approach, with cross-sectional data collected to achieve its purpose. The respondents are CEOs of different organizations. The data collection tool, a survey questionnaire, is applied to a random sample. In total, data from 360 usable cases are analyzed to infer the results.FindingsAfter employing structural equation modeling (SEM), the study findings reveal the positive and significant impact of strategic factors on OI and OL, with these factors comprising personal mastery, transformational leadership, a shared vision, proactivity, and the environment. Furthermore, OI and OL have a positive and significant impact on organizational performance.Practical implicationsThe study's findings may reinforce knowledge of the different strategic factors/capabilities needed to attain a satisfactory level of organizational capabilities and, consequently, may increase organizational performance and encourage entrepreneurship. An investigation of these factors may impart benefits to an organization, such as becoming more innovative or providing a boost to learning. Managers of organizations may generate circumstances to make it easier to achieve the growth of these strategic factors/capabilities.Originality/valueThe study's findings may help to develop a better understanding of strategic factors, OI, OL, and organizational performance, particularly in a developing country context.

Firm performance: is organizational learning capability the magic wand?

2019 ◽  
Vol 68 (8) ◽  
pp. 1411-1433 ◽  
Author(s):  
Lai Wan Hooi
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Human Resource ◽  
High Performance ◽  
Equation Modeling ◽  
Learning Capability ◽  
System Perspective ◽  
Content Type ◽  
Hrm Practices ◽  
The Impact

Purpose The purpose of this paper is to focus on human resource practices contribution to retail SMEs performance through its role in developing organizational learning capability (OLC). Design/methodology/approach A cross-sectional design was adopted, where data were collected from a sample of 214 managers of retail SMEs, utilizing a survey questionnaire. Structural equation modeling was used to test the hypothesized relationships. Findings The results indicate that incentive reward has the strongest significance on firm performance with a stronger influence on economic performance. Performance appraisal has the greatest effect on system perspective, followed by the impact of employee selection on managerial commitment (MC). MC strongly affects firm performance while openness and experimentation influences satisfaction performance. Additionally, OLC fully mediates the relationship between high-performance human resource management (HRM) practices and firm performance. Research limitations/implications It did not include large organizations nor consider other SME contextual variables which may otherwise exert significant impact on OLC. Practical implications A profound understanding of distinctive high-performance HRM practices effect on firm performance and the needed employee capabilities that would assist organizations to implement strategies to attain sustainable competitive advantage. Originality/value The study advances knowledge on HRM practices among SMEs by proposing that distinctive high-performance HRM practices can leverage OLC to enhance firm performance.

Differences in the impact of AMO bundles of line managers and frontline workers on the performance of manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alberto Bayo-Moriones ◽  
Alejandro Bello-Pindado
Keyword(s):  
Manufacturing Industry ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Linear Regression Models ◽  
Line Managers ◽  
Content Type ◽  
Frontline Workers ◽  
Hrm Practices ◽  
Manufacturing Performance ◽  
The Impact

PurposeThe purpose of this paper is to analyse the impact on manufacturing performance of human resource management (HRM) practices across two job levels within manufacturing firms in Argentina and Uruguay: that of line managers and frontline workers. HRM practices are categorised into three bundles defined by the AMO theoretical framework: ability, motivation and opportunity.Design/methodology/approachThe article uses data from a survey to 301 manufacturing plants in Uruguay and Argentina. Given the characteristics of the dependent variable, linear regression models have been estimated in order to test the hypotheses.FindingsThe results show that the ability and opportunity bundles for line managers are positively associated with manufacturing performance. However, only the motivation bundle affects manufacturing performance for frontline workers.Research limitations/implicationsThe main limitations are the use of cross-sectional data, the focus on two specific countries and the analysis of two employee categories that are not completely homogenous. The paper extends the contingency perspective in HRM by examining the relevance of job level as a contingent factor in the HRM-performance relationship in the manufacturing industry.Practical implicationsThe results suggest that manufacturing companies should target HR investments more towards line managers than to frontline employees. More specifically, they should concentrate efforts on the ability and opportunity bundles.Originality/valueThe article contributes to the very limited empirical evidence on the impact of HRM differentiation on firm performance by analysing sub-dimensions in a context not previously analysed.

scholarly journals THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE CASE STUDY: MANUFACTURING ENTERPRISES IN KOSOVO

2020 ◽  
Vol 21 (1) ◽  
pp. 222-229
Author(s):  
Arta Jashari ◽  
Enver Kutllovci
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Organizational Performance ◽  
Human Resource ◽  
Management Practices ◽  
Positive Association ◽  
Manufacturing Firms ◽  
Hrm Practices ◽  
Human Resource Management Practices ◽  
The Impact

The purpose of this study is to examine the impact of human resource management practices on organizational performance. In this study a total of 100 managers of manufacturing firms in Kosovo from public and private sectors have responded to the survey. The survey questionnaire had contained 39 items covering selected HRM practices and organizational performance. Our empirical results show that managers of manufacturing firms in Kosovo recognize the importance of employees in their organization and apply practices to manage them effectively. The outcome of correlation analysis provides evidence that HRM practices positively and significantly influence organizational performance. Recruitment and selection practices show the strongest positive association with organizational performance (rho = 0.905) compared to other practices. Regarding to our findings we suggest that with a good recruiting and selection, the organization will fill with a group of potentially qualified candidates. Also, companies should continuously train and develop and involve their employees as they are viewed as the most important resources source of competitive advantage.

HRM practices and the multifaceted nature of organization performance

2018 ◽  
Vol 13 (3) ◽  
pp. 315-334 ◽  
Author(s):  
Abdallah Taamneh ◽  
Abdallah Khalaf Alsaad ◽  
Hamzah Elrehail
Keyword(s):  
Organizational Performance ◽  
Organizational Citizenship Behavior ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Performance Measurement System ◽  
Organization Performance ◽  
Data Set ◽  
Content Type ◽  
Hrm Practices ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of human resource management (HRM) practices on the performance of Jordanian banks as determined by using the balanced scorecard (BSC) performance measurement system and by testing the effect of organizational citizenship behavior (OCB) as a possible mediator variable. Design/methodology/approach A questionnaire was used to collect data from the study sample, which consisted of 230 managers working in various banks across Jordan. The study hypotheses were then tested using SPSS and AMOS software by applying structural equation models (SEMs). Findings The data set revealed that the use of HRM practices had a significant impact on both employee OCB and bank performance in all the four dimensions of the BSC (financial, customer satisfaction, internal processes, learning and growth). In addition, OCB was found to have a positive significant impact on organizational performance. Moreover, results indicated that OCB partially mediates the relationship between HRM practices and organizational performance. Originality/value The authors examine the impact HRM practices on the organization performance through the mediation role of OCB. The results obtained from this study extend the existing literature by providing evidences from non-western country such as Jordan. Based on the findings, the theoretical and practical implications of the study as well as limitations and suggestions for future studies are also discussed.

Organizational learning capability, innovation and organizational performance

2019 ◽  
Vol 24 (1) ◽  
pp. 151-172 ◽  
Author(s):  
Mahmoud M. Migdadi
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Measurement Model ◽  
Research Literature ◽  
Equation Modeling ◽  
Future Research ◽  
Learning Capability ◽  
Content Type ◽  
Managerial Practices

Purpose The purpose of this paper is to introduce a comprehensive, delineated and integrated conceptual model which includes organizational learning capability, innovation and organizational performance (OP). Then, an empirical investigation is undertaken to test the relationships among the proposed study model variables. Design/methodology/approach In total, 274 questionnaires were completed and returned. Statistical techniques employed included confirmatory factor analysis to examine the validity of the measurement model, and structural equation modeling to test the hypotheses. Findings The findings of this study suggest that OLC influences innovation and innovation affects OP. Finally, the results show that OLC affects OP indirectly through innovation (mediator). Research limitations/implications Future research should pay more attention to the influence of different mixture (variables) of influences on innovation and also examine other consequences of introducing innovation in organizations. In addition, more empirical papers supporting (or rejecting) the results in different contexts would be welcomed, especially longitudinal studies. Practical implications The results of this study help managers to ascertain the managerial practices that can be employed as well as determine the level of effort and resources necessary to enhance OLC. Additionally, managers should shed additional light on the innovation’s positive implications for OP. Originality/value This study focuses on the conceptualization of OLC and effects of these capabilities on innovation. It conceptualizes innovation as a multidimensional construct and tests its relationship with OP. Finally, the relationship between learning capability and OP, although implied, needs to be addressed empirically in the research literature, an objective that this study tries to achieve.

scholarly journals Are altruistic leaders worthy? The role of organizational learning capability

2015 ◽  
Vol 36 (3) ◽  
pp. 271-295 ◽  
Author(s):  
Fermín Mallén ◽  
Ricardo Chiva ◽  
Joaquín Alegre ◽  
Jacob Guinot
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Future Research ◽  
Leader Behaviors ◽  
Learning Capability ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between altruistic leader behaviors, organizational learning capability and organizational performance. Design/methodology/approach – The sampling frame consists of several databases or listings of business that consider people as a key element of the organization and are considered by their employees to be good firms to work for or organizational environments where human resources management has high priority (n=251). The authors use structural equation modeling to test if the relationship between altruistic leader behaviors and organizational performance is mediated by organizational learning capability. Findings – Results suggest that organizational learning capability fully mediates between altruistic leader behaviors and organizational performance. Thus, organizational learning capability plays a key role in explaining how altruistic leader behaviors affect organizational performance, essentially because it facilitates the creation of a creative, participatory and dialogue-based environment that promotes organizational learning. Research limitations/implications – The database used in the study is very heterogeneous. Future research might delimit the database by organization size or sector. Qualitative studies may also improve our understanding of the relationships studied and enable other concepts to be included. Practical implications – This study provides evidence of the positive relationship between altruistic leaders and performance. However, recruiting and fomenting altruistic leaders is not sufficient on its own to improve performance, and should be accompanied by implementing other facilitating factors of organizational learning such as dialogue or experimentation. Originality/value – In recent years some studies have linked leadership with organizational learning. However, this is one of the first studies to concentrate on altruistic leader behaviors as such, a concept that has received scant mention in the literature despite its importance in a number of leadership styles, and its relevance today as an alternative to the egotistic leader. The authors offer empirical evidence of the role of altruistic leader behavior as an antecedent of organizational learning capability and subjective measures of performance.

The impact of organizational storytelling on organizational performance within Jordanian telecommunication sector

2020 ◽  
Vol 32 (5) ◽  
pp. 335-361
Author(s):  
Naser Khdour ◽  
Ra'ed Masa'deh ◽  
Atef Al-Raoush
Keyword(s):  
Organizational Learning ◽  
Change Management ◽  
Organizational Performance ◽  
Corporate Culture ◽  
Middle Eastern ◽  
Training And Development ◽  
Telecommunication Sector ◽  
Content Type ◽  
Organizational Storytelling ◽  
The Impact

Purpose This study aims to assess the impact of organizational storytelling on organizational performance by undertaking telecommunication companies located in the Middle Eastern nation of Jordan. Design/methodology/approach A quantitative design has been adopted to identify the impact of organizational storytelling on organizational performance, recruiting 460 employees at managerial levels from three telecom companies (Umniah, Zain and Orange). A step-wise regression analysis has been applied to analyze the data collected using a close-ended structured questionnaire. Findings A total of 284 male and 176 female employees took part in the study. The study has found a positive and significant impact of organizational learning, change management, corporate culture, training and development and leadership and indicated that these determinants positively related to organizational performance. Findings showed a positive and significant impact of organizational storytelling on organizational performance based on its components. Practical implications This study has contributed to identifying the impact of organizational storytelling on organizational performance in the telecommunication sector in Jordan. Originality/value This study is among the few to analyses the impact of organizational storytelling based on training and development, change management, corporate culture, organizational learning and development and leadership on the organizational performance of telecom companies in Jordan.

The role of top management support and organizational capabilities in achieving e-business entrepreneurship

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khaled Saleh Al-Omoush
Keyword(s):  
Organizational Learning ◽  
Organizational Capabilities ◽  
Pivotal Role ◽  
Top Management ◽  
Management Support ◽  
Organizational Agility ◽  
Content Type ◽  
Top Management Support ◽  
The Impact

Purpose The purpose of this study is to investigate the role of top management support and organizational capabilities in achieving e-business entrepreneurship. Design/methodology/approach Data were collected through a self-administered questionnaire from 26 manufacturing firms with a sample of 282 respondents. Data were analyzed using SmartPLS. Findings The results show a significant impact of top management support on e-business entrepreneurship. The findings also show a direct impact of organizational capabilities, involving organizational agility and organizational learning on the e-business entrepreneurship. Moreover, the results of the study highlight the pivotal role of top management in preparing an organizational environment that fosters organizational learning and organizational agility capabilities to establish e-business entrepreneurship. Originality/value This study contributes to the body of knowledge and understanding of e-business entrepreneurship and the pivotal role of top management support in today’s very dynamic environment. Furthermore, the present study offers new insights into the impact of organizational capabilities on establishing e-business entrepreneurship.

Employee involvement in decision-making: the more the better?

2019 ◽  
Vol 40 (4) ◽  
pp. 768-782 ◽  
Author(s):  
Xiaowen Tian ◽  
Xiaoxuan Zhai
Keyword(s):  
Decision Making ◽  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Positive Relationship ◽  
Employee Involvement ◽  
Negative Relationship ◽  
Collective Learning ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to relate participative decision-making (PDM) to organizational learning, and examine the impact of PDM on organizational performance. Design/methodology/approach The paper integrates the resource-based theory with organizational learning theory to develop a framework, and distinguishes PDM in which decisions are jointly made by employees and managers from employee decision-making (EDM) in which decisions are completely in the hands of employees. The paper incorporates an augmented Cobb–Douglass production function into a structural equation model to estimate the performance impact of PDM and EDM. Findings The paper tests the framework against firm-level data form China, and finds that PDM provides an opportunity for collective learning, and has a positive relationship with productivity-based profit gains; the positive relationship is stronger in firms whose management has greater accumulated knowledge and experience; EDM fails to provide an opportunity for collective learning, and has a negative relationship with productivity-based profit gains. Originality/value Prior research focused on the role of PDM in enhancing the motivation and performance of individual employees, considered the degree of employee involvement as a continuum with the highest being decision-making “completely in the hands of employees,” and concluded that the more involved are employees in decision-making the better. This paper relates PDM to organizational performance, and challenges this conventional view from an organizational learning perspective.

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