scholarly journals Human resource practices, employee attitudes and small firm performance

Author(s):  
Yanqing Lai ◽  
George Saridakis ◽  
Stewart Johnstone

This article uses the matched employee–employer dataset from the Workplace Employment Relations Study of 2011 (WERS2011) in Britain to empirically examine the direct relationship between human resource management (HRM) practices and small and medium-sized enterprise (SME) performance in the United Kingdom, as well as the potential moderating effect of organisational commitment/job satisfaction on the HRM-performance linkage. We find a positive and direct relationship between the use of certain formalised human resource (HR) practices and SME performance, measured by financial performance and labour productivity. More importantly, we find that the positive relationship between HR practices and financial performance varies between SMEs with high job satisfaction and low job satisfaction, and that the relationship is weakened in SMEs with high job satisfaction. The results suggest that certain HR policies and practices may improve small firm performance, especially within firms with low levels of commitment and satisfaction.

2005 ◽  
Vol 31 (4) ◽  
pp. 622-640 ◽  
Author(s):  
Mousumi Bhattacharya ◽  
Donald E. Gibson ◽  
D. Harold Doty

The components of human resource (HR) flexibility and their potential relationship to firm performance have not been empirically examined. The authors hypothesize that flexibility of employee skills, employee behaviors, and HR practices represent critical subdimensions of HR flexibility and are related to superior firm performance. Results based on perceptual measures of HR flexibility and accounting measures of firm performance support this prediction. Whereas skill, behavior, and HR practice flexibility are significantly associated with an index of firm financial performance, the authors find that only skill flexibility contributes to cost-efficiency.


1989 ◽  
Vol 13 (2) ◽  
pp. 49-64 ◽  
Author(s):  
Paul B. Cragg ◽  
Malcolm King

Numerous studies have attempted to gain a greater understanding of small firm performance with the intent of isolating factors which are important for success. The studies, some with serious limitations, suggest that many different variables are Important to success. A further study of 179 small, metal goods manufacturers enabled some of the specific relationships to be re-examined, but with mixed support for previous findings. Various suggestions are made for future research studies. A causal model of small firm financial performance is proposed.


2017 ◽  
Vol 32 (2) ◽  
pp. 163-176 ◽  
Author(s):  
Ahmed Mohammed Sayed Mostafa

Purpose The purpose of this paper is to provide insight into the affective or emotional mechanisms that underlie the relationship between high-performance HR practices (HPHRP) and employee attitudes and behaviours. Drawing on affective events theory, this paper examines a mediation model in which HPHRP influence positive affect which in turn affects job satisfaction and organizational citizenship behaviours (OCBs). Design/methodology/approach Two-wave data were collected from a sample of local government workers in Wales (n=362). HPHRP were measured together with job satisfaction and OCBs at Time 1 and six months later, job satisfaction and OCBs were measured again together with positive affect. Structural equation modeling was used to test the study hypotheses. Findings The results revealed that HPHRP induced positive affect which, in turn, led to increased job satisfaction and OCBs. Furthermore, positive affect fully mediated the relationships between HPHRP and both job satisfaction and OCBs. Research limitations/implications All data were collected from public sector employees in the Government of Wales, which makes the generalizability of the findings unknown. More work is needed using different samples to determine whether the study results are replicable. Practical implications Managers should endeavour to ensure that enough resources are assigned to the implementation of HPHRP and other work features that help evoke affective reactions, as these reactions are an important determinant of employees’ attitudes and behaviours. Originality/value This is one of the first studies to empirically examine the mediating role of positive affect on the relationship between HPHRP and employee attitudes and behaviours.


2015 ◽  
Vol 11 (2) ◽  
pp. 237-261 ◽  
Author(s):  
Xiaobei Li ◽  
Xin Qin ◽  
Kaifeng Jiang ◽  
Sanbao Zhang ◽  
Fei-Yi Gao

ABSTRACTWe conducted two studies to investigate the contingent role of regional human capital quality (i.e., the knowledge, skills, and abilities of the collective workforce in a region) in the relationship between firm-level human resource (HR) practices (i.e., practices focusing on employees’ human capital development) and firm performance in China. Drawing upon human capital theory, we hypothesized that the human capital–enhancing HR practices and regional human capital quality have a substitutive effect on firm performance. Study 1 uses a World Bank survey of 9,125 firms in 30 provinces. We found that the human capital–enhancing HR practices relate more strongly to firm performance when regional human capital quality was lower than when it was higher. Study 2 used a sample of 203 firms across seven provinces. We found similar results. We further hypothesized and found that the substitutive effect of regional human capital quality was stronger when a firm adopted an innovation strategy. Our findings provide new evidence for the contingency perspective of strategic HR management and highlight the importance of matching HR practices with local labor quality conditions and the business strategy of the firm.


Energies ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 255
Author(s):  
Katarzyna Gadomska-Lila ◽  
Anna Rogozińska-Pawełczyk

Innovation is a very important attribute of energy companies. Its level largely depends on employees’ attitudes and behaviours, which are determined on the one hand by individual factors (e.g., psychological contract) and on the other hand by organisational factors (e.g., human resources (HR) practices). The aim of this article is to identify the relationship between pro-innovative HR practices, psychological contract and employee attitudes—commitment and job satisfaction. The research was conducted in a company which is one of the leading Polish electricity suppliers. Data were collected using a proprietary survey questionnaire. The research involved 402 HR professionals responsible for shaping and implementing pro-innovative HR practices in the company. Hypotheses were tested using the partial least squares structural equation modelling technique (PLS-SEM). The results indicate the existence of a positive relationship between pro-innovative HR practices, psychological contract and employee commitment and satisfaction. Furthermore, they indicate that organisations wishing to increase employee commitment and job satisfaction should strengthen and implement existing psychological contracts. One way to do this is to invest in pro-innovative HR practices, such as competence development, knowledge sharing or creativity-based candidate selection, as they have been shown to be good moderators of these relationships. The obtained results may be of particular importance for HR management specialists and managers responsible for shaping desired attitudes and behaviours of employees.


Author(s):  
Anastasia A. Katou

Purpose Drawing on the contingency perspective between business strategies and human resource (HR) practices, the purpose of this paper is to examine the effects of human resource management (HRM) system (which integrates both content and process of HR practices) on both proximal organisational outcomes (such as job satisfaction, motivation, and organisational commitment) and distal organisational outcomes (such as employee engagement, organisational citizen behaviour (OCB), co-operation among employees, intention to quit, and operational performance). Design/methodology/approach The analysis is based on a sample of 996 Greek employees working in 108 private organisations and the statistical method employed is structural equation modelling with bootstrapping estimation. Findings The results indicate that HRM content is more positively related to job satisfaction and motivation and less related to organisational commitment than HRM process. Moreover, HRM system is sequentially related to organisational outcomes (both directly and indirectly) and significantly influences employee job satisfaction and motivation, as well as OCB and co-operation among employees, and operational performance. Research limitations/implications The data were collected using a questionnaire at a single point in time, and thus, not allowing dynamic causal inferences. Considering that Greece is experiencing a severe financial crisis, the findings from this unique context may not generalise across other contexts. Practical implications The core messages to decision makers are that employee development and rewards are the major dimensions of the content of an HRM system and that consistency and distinctiveness are the principal features of the process of an HRM system, even in cases where the organisation is operating under an economic crisis environment. Originality/value Investigations into the relationship between HRM systems and organisational performance have become increasingly common. Nevertheless, empirical studies that measure the impact of HRM systems, which being contingent on business strategies integrate both content and process of HR practices on organisational performance are still rare. This paper partially fills this gap.


2015 ◽  
Vol 37 (5) ◽  
pp. 506-524 ◽  
Author(s):  
Mansoor Ahmad ◽  
Matthew Allen

Purpose – Despite a growing literature on human resource management (HRM) in emerging economies, evidence from Pakistan is limited. There is scant information on both the human resource (HR) practices that indigenous workplaces adopt and their associations with HR-related outcomes. The purpose of this paper is to fill that gap by examining whether universalistic assumptions about the applicability of “high-performance” HR practices are valid in Pakistan, a country with religious values and organizational traditions that differ to those in the west. Design/methodology/approach – This study draws on the, to date, most comprehensive survey of indigenous establishments in Pakistan. The authors use logistic regressions to analyze the data. Findings – Workplaces, in general, adopt several “high-performance” HR practices, such as extensive training, career breaks, rigorous pre-employment candidate assessment, and the sharing of strategic information with employees. Attitude surveys and the provision of training in a variety of jobs to non-managerial employees are consistently associated with better HR-related outcomes (absenteeism, quit rates, and labour productivity). Overall, the paper finds some limited support for the applicability and efficacy of high-performance HRM practices in Pakistan. Such practices conform to Islamic principles. The results also indicate, however, that cultural traits play a role in how those practices are implemented. Social implications – Increased adoption of certain HR practices by establishments in Pakistan may help to improve the working conditions and employment prospects of employees and may also ameliorate the country’s sluggish economic growth rates. Originality/value – HRM in Pakistani establishments has received relatively scant attention. Existing research either focuses on a relatively small number of firms, assesses HR in MNC subsidiaries, or examines a limited range of HR practices. Understanding the HR practices that are (and are not) adopted and their associations with performance outcomes will not just enhance the knowledge of HR in emerging economies, but will also provide insights into how to improve establishment performance and economic growth rates.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose Firm performance can be optimized when job satisfaction and organizational commitment among employees is high. Companies can help increase levels by developing a supportive workplace culture and introducing appropriate HR practices that serve to motivate and inspire. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Firm performance can be optimized when job satisfaction and organizational commitment among employees is high. Companies can help increase levels by developing a supportive workplace culture and introducing appropriate HR practices that serve to motivate and inspire. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2000 ◽  
Vol 25 (1) ◽  
pp. 59-76 ◽  
Author(s):  
Gaylen N. Chandler ◽  
Chalon Keller ◽  
Douglas W. Lyon

The current research identifies constructs that are supportive of an innovative culture in small to medium-sized enterprises. A sample of 429 employees in 23 small to medium-sized manufacturing firms was used to identify constructs associated with an innovative culture. Supervisory support and reward system support are both positively related to an innovative culture. Perceived work overload is negatively related. Companies with cultures supportive of innovation tend to be smaller, have fewer formalized human resource practices, and less munificent resources. There is no direct relationship between an innovative culture and firm performance; however, when the competitive environment is changing rapidly firm earnings are enhanced by an innovative culture.


2017 ◽  
Vol 46 (5) ◽  
pp. 820-840 ◽  
Author(s):  
Eva Vekeman ◽  
Geert Devos ◽  
Martin Valcke ◽  
Yves Rosseel

The purpose of this study is to explore whether the relationship between teachers’ person–organisation (P-O) fit, job satisfaction and intention to move to another school varies depending on the way a bundle of human resource (HR) practices is configured in education. Drawing on strategic human resource management literature, a strategic and human resource orientation is considered to provide insight into the configuration of HR practices. A mixed methods design was used to collect both qualitative and quantitative data from principals and teachers in 56 Flemish primary schools. The qualitative data, which provides insight into principals’ configuration of HR practices, were converted into numerical scores and analysed, together with the quantitative teacher data, using multiple group path analysis. The key findings show that the relation between P-O fit and intention to move operates differently depending on the HR orientation of the teacher’s principal but not on their strategic orientation. This finding supports the need for closer attention to be given to the investment of new teachers and the impact this has on the direct and indirect effect of teachers’ P-O fit on teachers’ intention to move.


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