Human resource management practices and organizational effectiveness: internal fit matters

Author(s):  
John Delery ◽  
Nina Gupta

Purpose – The purpose of this paper is to test alternative conceptualizations of the relationship between systems of human resource management (HRM) practices and organizational effectiveness. The authors describe a framework suggesting a complex relationship between HRM practices and organizational effectiveness, test this approach empirically in a large sample of US motor carriers, and compare the results to those derived using other approaches prevalent in the strategic HRM literature. Design/methodology/approach – The study used a large scale cross-sectional survey design. In a sample of US motor carriers, questionnaires completed by senior HRM department staff were used as the primary data. The data were supplemented by organizational effectiveness data reported by motor carriers to the US Government. Findings – The results support the general hypothesis that HRM practices enhance organizational effectiveness, provide some evidence that HRM practices can enhance each other’s effectiveness, and underscore the value of theory driven methodological approaches. Specifically, the authors found that HRM system comprising practices that ensure selectivity in staffing, performance-based pay, and enhanced employee opportunity through participation in decision-making result in higher levels of organizational effectiveness. Additionally, the effects of other combinations of these practices varied. Practical implications – This study highlights the need for HRM departments and organizations to approach the strategic management of employees with a systems perspective. The optimal design of an HRM strategy must take into account the various components. Originality/value – This study is one of the first to test the main assumptions of the systems perspective in strategic HRM using multiple measures and empirical approaches for combining HRM practices into systems. Comparison of these different approaches in a single study offers insight into how researchers can test the relationship between HRM practices and organizational effectiveness and provide practitioners more useful approaches for designing HRM systems.

2005 ◽  
Vol 26 (6) ◽  
pp. 544-559 ◽  
Author(s):  
Zhongming Wang ◽  
Zhi Zang

PurposeStrategic human resource management (SHRM) is seen as crucial for innovation and entrepreneurship in China. An empirical research was carried out to investigate main dimensions of the model of human resources management (HRM), practices and their effects on organisational performance in relation to innovation and entrepreneurship.Design/methodology/approachThe research has two parts. The first part is a field survey on human resource management practices and its main dimensions. The study was conducted in the Chinese local companies and joint ventures across different partnerships. The second part is an in‐depth case‐set analysis of Chinese entrepreneurship models from a strategic HRM perspective.FindingsThe results showed that both functional and strategic dimensions of HRM could be identified which had differential effects upon organisational performance and that the most successful local entrepreneurial firms were among the collective‐based and globally‐oriented ones.Originality/valueThis study demonstrated that the fit between strategic HRM practices, innovation strategy and entrepreneurship model was significantly contributed to entrepreneurial performance. A regional comparative model of SHRM and entrepreneurship was proposed for sustainable business developments and organisational change.


2019 ◽  
Vol 3 (1) ◽  
pp. 50-69 ◽  
Author(s):  
Malam Salihu Sabiu ◽  
Kabiru Jinjiri Ringim ◽  
Tang Swee Mei ◽  
Mohd Hasanur Raihan Joarder

PurposeThe purpose of this paper is to investigate the influence of human resource management (HRM) practices, (recruitment and selection) and organizational performance (OP) through mediation role of ethical climates (ECs) in Nigerian educational agencies.Design/methodology/approachQuantitative data were collected from 181 educational agencies represented by director of administration; SmartPLS-SEM was used in testing the relationship, as well as testing the mediating effect of ECs.FindingsThe results revealed strong support for the mediating role of ECs on the relationship between HRM practice (recruitment and selection) and OP.Research limitations/implicationsPolicy makers and executives in educational agencies need to consider making appropriate decision in terms of effectively adopt and implement performance-based HRM practices that can encourage and create ethical behavior of employees’ and within organization. Through the adoption and utilization of these practices, educational agencies can enhance OP.Practical implicationsThis study contributes to the understanding of the relationship between HRM and OP by clarifying a pathway between these variables. This study also generalizes consistent findings on the HRM practices and OP relationship to a different discipline and context, i.e. educational agencies.Originality/valueThis study adds to the domain of resource-based view by incorporating EC as a mediator between HRM practices and OP.


2019 ◽  
Vol 40 (5) ◽  
pp. 994-1011 ◽  
Author(s):  
Pooja Malik ◽  
Usha Lenka

Purpose The purpose of this paper is to investigate the impact of perceived abilities-motivation-opportunity (AMO framework) enhancing human resource management practices on destructive and constructive deviance through employee engagement. Design/methodology/approach Data were collected from 350 middle-level information technology employees. Structural equation modeling was applied to examine the proposed hypotheses. Findings Results revealed significant relationships between perceived AMO framework and destructive and constructive deviance, except for the relationship between perceived ability and destructive deviance. Furthermore, perceived AMO framework exhibited a significant positive relationship with employee engagement. Utilizing social exchange theory, results proposed partial mediation of employee engagement between perceived AMO framework and constructive and destructive deviance except for the relationship between perceived ability and destructive deviance, for which employee engagement exhibited full mediation. Research limitations/implications This study implies that contemporary organizations must take initiatives to enhance employee engagement through the implementation of abilities, motivation and opportunities-enhancing human resource management (HRM) practices (AMO framework). Results of the study infer that motivation-enhancing HRM practices contribute highest in generating employee engagement followed by opportunity and abilities-enhancing HRM practices. Originality/value This study empirically investigates the impact of HRM bundles on both destructive and constructive deviance. Additionally, this study explores the underlying mechanism between HRM bundles and workplace deviance by assessing the mediating role of employee engagement.


2018 ◽  
Vol 38 (7-8) ◽  
pp. 606-636 ◽  
Author(s):  
Alima Aktar ◽  
Faizuniah Pangil

Purpose The purpose of this paper is to examine the mediating role of organizational commitment (OC) on the relationship between human resource management (HRM) practices and employee engagement among banking employees in the context of an emerging economy namely Bangladesh. Design/methodology/approach The survey data include 383 employees from 30 private commercial banks in Bangladesh. For analyzing the data, structural equation modeling is employed with the bootstrapping method. Findings This study finds that HRM practices such as career advancement, employee participation, job security, performance feedback, rewards and recognition, training and development are the significant predictors of employee engagement. Results also identify OC as a partial mediator on HRM practices and employee engagement relationship which suggest that direct relationship of predictors and criterion variables are stronger than indirect association. More interestingly, findings indicate that the mechanism of black-box stage is not always work on the relationship between HRM practices and employee performance. Originality/value Exploring the role of OC on the relationship between HRM practices and employees’ behavioral outcome, i.e. employee engagement, is appeared as an initial effort in the academic literature. Furthermore, empirical research that examines the association of different organizational factors with employee engagement through OC is rarely been investigated. Thus, the findings of this study act as a strategic tool for the bank managers to design their organizational policies in such a way that fosters their employee’ level of engagement.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dmitri Sokolov ◽  
Elena Zavyalova

PurposeWhile prior research suggests that human resource management (HRM) practices are crucial drivers of a firms' intellectual capital, few studies have tried to deconstruct this relationship and investigate how HRM practices specifically affect intellectual capital resources. Furthermore, prior research treated this relationship as universal and rarely tried to introduce important contingent factors that may alter the mechanisms involved in how HRM practices influence firms' intellectual capital. In this study, the authors examine the relationships between the ability-, motivation- and opportunity-enhancing dimensions of HRM systems and human, social and structural capital and investigate how companies' codification and personalization knowledge management (KM) strategies may alter these relationships.Design/methodology/approachThe data were collected using a telephone survey of 215 knowledge-intensive companies operating in Russia. The paper utilizes partial least squares structural equation modeling (PLS–SEM) to evaluate the measurement model and test hypothesized relationships.FindingsThe findings indicate positive relationships between ability-enhancing practices and firms' human capital between motivation-enhancing practices and firms' human and social capital and between opportunity-enhancing practices and firms' social and structural capital. The authors’ results reveal the limited moderating role of KM strategies in the relationships between HRM and intellectual capital. While a personalization strategy had no impact on any of the proposed relationships, a codification strategy positively moderated the relationship between opportunity-enhancing HRM practices and firms' structural capital.Originality/valueThe study expands the debates in strategic HRM literature by looking “inside” the HRM–intellectual capital relationship. Additionally, the authors’ findings reveal the complexity of the contingent effect that KM strategies of codification and personalization have on the relationship between HRM practices and intellectual capital. Although some of the relationships were not moderated by the KM strategy of the firm, the HRM–intellectual capital relationship cannot be considered fully universal.


2019 ◽  
Vol 41 (5) ◽  
pp. 949-970 ◽  
Author(s):  
Frank Nana Kweku Otoo

Purpose The purpose of this paper is to examine the mediating role of employee competencies in the relationship between human resource management (HRM) practices and organizational performance. Design/methodology/approach An integrated research model was developed by combining principal factors from existing literature. Data were collected through questionnaire from 600 employees of the selected hotels. The validity of the model and hypotheses was tested using structural equation modeling. The reliability and validity of the dimensions are established through confirmatory factor analysis. Findings The results indicate that some HRM practices impact organizational performance through their influence on employee competencies. The study further revealed that employee competencies mediate the relationship between HRM practices and organizational performance. Research limitations/implications The research was undertaken in the hotel industry and the analysis based on cross-sectional data which cannot be generalized across a broader range of sectors and international environment. Practical implications The findings of the study have the potential to help policy makers, stakeholders and management of hotels in adopting proper and well-articulated HRM practices in building human capital and stimulating the necessary behaviors that create advantage for the organization. Originality/value This study extends the literature by empirically adducing evidence that employee competencies mediated the relationship between HRM practices and organizational performance of the hotel industry in Ghana.


2018 ◽  
Vol 41 (6) ◽  
pp. 701-715 ◽  
Author(s):  
Gabriele Santoro ◽  
Antonio Usai

PurposeThe purpose of the study is to assess the relationships among human resource management (HRM), information and communication technology (ICT), knowledge exploitation and knowledge exploration.Design/methodology/approachTo reach the study’s goal, The authors applied a quantitative methodology involving ordinary least squares on a sample of 129 Italian firms.FindingsResults confirm a direct and significant effect of HRM practices on knowledge exploration and a moderation effect of ICT knowledge exploitation on the relationship between HRM practices and knowledge exploration.Originality/valueThe relationship between knowledge management (KM) and HRM is relevant given that HRM can affect organizational culture and the management of strategic knowledge within firms, which is a primary resource to achieve better positioning in the markets. Nevertheless, the implicit link between KM and HRM has been theoretically suggested, but it requires further exploration, in particular through quantitative analysis.


Author(s):  
Randall Schuler ◽  
Susan E. Jackson

Purpose – The purpose of the paper is to describe how the understanding of the relationship between human resource management (HRM) and organizational effectiveness (OE) has evolved during the past three decades and to provide examples how firms are using HRM to improve their OE today by addressing several challenges that result from a broader stakeholder model. Design/methodology/approach – This paper reviews the past and current work on the relationship between HRM and OE. Findings – This findings indicate that the relationship between HRM and OE is very different when comparing the past with the current work on the relationship between HRM and OE. A major reason for this is the current work on OE uses the multiple stakeholder model that accounts for many more stakeholders than the past work. Practical implications – Human resource (HR) professionals have the opportunity to demonstrate many ways by which HRM can influence OE, and not just solely on the basis of firm profitability. Thus the use of the multiple stakeholder model today offers the HR professional and the HR profession many more opportunities to demonstrate their importance and impact. Originality/value – A systematic review and comparison of the past and current relationship between HRM and OE using the multiple stakeholder model have not been using both the viewpoints of both academics and practitioners.


2019 ◽  
Vol 42 (2) ◽  
pp. 453-470
Author(s):  
Sandeep Basnyat ◽  
Chi Sio Clarence Lao

Purpose The purpose of this paper is to explore hotel employees’ views on how human resource management (HRM) practices influence their turnover intentions. Design/methodology/approach The data for this empirical study were collected through in-depth semi-structured interviews with 15 employees who had experience of working in various hotels in Macau, China. The thematic analysis approach was carried out to analyze the interview data and interpret the findings. Findings The findings of this study demonstrate that although employee-oriented human resource policies and practices are favored, the way HR department handles and implement those policies are valued more by hotel employees. Furthermore, the retention of an organizational culture that helps create a feeling of ownership among employees is highly influenced by employees’ turnover intentions. The current study demonstrates that the HR department in hotels holds a powerful position, and therefore, hotel employees expect their HR department to play greater and proactive roles in the HRM apart from providing equitable opportunities for their growth. This implication is particularly important for Integrated Resorts where a large number of employees collectively work to serve a range of customers who visit hotels for a variety of purposes. Practical implications This study suggests that addressing employees’ needs particularly those related to resolving complaints and managing relationships with other colleagues and providing opportunities for employees’ family members to take part in the organization’s activities and use its facilities are important practices that HR department can initiate to encourage employees’ engagement in hotels. Furthermore, the study shows that managers need to understand their employees’ perspectives as they can help resolve problems at the root level where they grow, and send a signal to the employees that the management is genuinely interested in resolving their problems and making them happy and satisfied. Originality/value Although several studies have provided valuable insights into the relationship between HRM practices and employee turnover intentions, most of those studies have used quantitative approaches to collect and analyze data. Furthermore, almost none of the findings were derived from the hotel sector. This study explores hotel employees’ views on the relationship between HRM practices and employee turnover intention using qualitative methods.


2020 ◽  
Vol 42 (6) ◽  
pp. 1353-1380
Author(s):  
Frank Nana Kweku Otoo

PurposeThe aim of this paper is to examine the mediating role of employee competencies in the association between human resource management (HRM) practices and organizational effectiveness of the pharmaceutical industry in Ghana.Design/methodology/approachAn integrated research model was developed by combining principal factors from existing literature. The validity of the model was tested by applying structural equation modelling (SEM) to the data collected from 550 employees of the selected pharmaceutical industries. The reliability and validity of the dimensions are established through confirmatory factor analysis (CFA) and related hypotheses tested using SEM.FindingsThe results indicate that some HRM practices influence organizational effectiveness through their impact on employee competencies. The study further revealed that employee competencies mediate the association between HRM practices and organizational effectiveness.Research limitations/implicationsThe research was undertaken in the pharmaceutical industry and the analysis based on cross-sectional data which cannot be generalized across a broader range of sectors and international environment.Practical implicationsThe findings of the study have the potential to help stakeholders, policy makers and management of the pharmaceutical industry in espousing suitable and well-articulated HRM practices to influence and shape the skills, knowledge and behaviour of employees and inordinately enhance organizational effectiveness.Originality/valueThis study extends the literature by adducing evidence empirically that employee competencies mediated the association between HRM practices and organizational effectiveness of the pharmaceutical industry in Ghana.


Sign in / Sign up

Export Citation Format

Share Document