To what extent does human capital diversity moderate the relationship between HRM practices and organizational performance: Evidence from Spanish firms

Human capital is recognized as a vital factor in contributing towards organizational performance and in this competitive and knowledge driven economy play a critical role for the success and survival of their institutions. Organizations irrespective of their nature and size have realized that capable and effective human resource acts as a strategic advantage over its competitors provided employees are committed towards their organizations. In this respect HRM practices have a significant role in enhancing employee commitment as it leads in improving their morale and performance. Keeping this in view, the present paper is aimed to examine the relationship between HRM practices and organizational commitment in sample select four educational institutions. It is also aimed to examine the effect of HRM Practices on organizational commitment. The findings of the study revealed that there exists a positive and favourable relationship between HRM practices and Organizational commitment. Moreover, the study found that HRM practices significantly influences Organizational commitment among employees. The study suggests that HR practitioners need to relook at HRM practices for increasing employees’ commitment in sample select institutions.

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The Practices of HRM, Human Capital, and Organizational Performance: A Literature Discussion in SME Context

J-MAS (Jurnal Manajemen dan Sains) ◽

10.33087/jmas.v5i2.180 ◽

2020 ◽

Vol 5 (2) ◽

pp. 192

Author(s):

Jonner Simarmata

Keyword(s):

Human Capital ◽

Organizational Performance ◽

Developed Countries ◽

Literature Discussion ◽

Mediating Role ◽

Hrm Practices ◽

Indirect Relationship ◽

Almost All ◽

Relationship Of ◽

The Relationship

SMEs are a very important economic sector in almost all countries. Not only in developed countries but also in developing countries. The reason is, this sector contributes greatly to economic growth, especially to the GDP and employment. Therefore, all governments give a big support to the growth of this sector to contribute even more. The purpose of organizations including SMEs is to increase value for their stakeholders. Therefore, every manager tries hard to improve the performance of his company. In theory, one of the factors that influence organizational performance is HRM practice (Armstrong & Taylor, 2014). However, experts argue that the relationship of HRM practices with organizational performance is an indirect relationship. Therefore, it is important to think about what variables can mediate this relationship. In the literature it is mentioned that human capital can act as a mediating variable in the relationship between HRM practices and organizational performance. However, in the context of SMEs, studies on human capital as a mediator are still rarely found. This present article aims to add to the literature on the mediating role of human capital in the relationship of HRM practices with organizational performance in the context of SMEs.

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The Relationship Between Human Resource Management Practices, Knowledge Management Practices, and Performance: Evidence from the Healthcare Industry in India

Global Business Review ◽

10.1177/09721509211037209 ◽

2021 ◽

pp. 097215092110372

Author(s):

Satyanarayana Parayitam ◽

Shaik Mohamed Naina ◽

Timothy Shea ◽

Abdul Hameed Syed Mohideen ◽

Alex Aruldoss

Keyword(s):

Knowledge Management ◽

Resource Management ◽

Human Resource Management ◽

Organizational Performance ◽

Human Resource ◽

Management Practices ◽

Training And Development ◽

Learning Culture ◽

Hrm Practices ◽

The Relationship

The objective of the present study is to examine the impact of human resource management (HRM) practices on organizational performance. Knowledge management (KM) practices as a moderator in the relationship between HRM practices and organizational performance are studied by developing a conceptual model. Using a structured survey instrument, the data were collected from 979 employees from 10 hospitals in the southern part of India (Tiruchirappalli District of Tamil Nadu). After thoroughly checking the instrument’s measurement properties using the LISREL, hierarchical regression was performed to test the hypotheses. The results support (a) compensation and rewards, performance appraisal and learning culture that are positively and significantly related to organizational performance; (b) recruitment and selection, training and development that are not significantly related to organizational performance; and (c) KM practices that moderate the relationship between (a) training and development and organizational performance, and (b) learning culture and organizational performance. Finally, the implications for HRM and KM are discussed.

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Do performance measures matter in the relationship between high-performance work system and organizational performance?

International Journal of Manpower ◽

10.1108/ijm-04-2018-0136 ◽

2019 ◽

Vol 41 (3) ◽

pp. 241-257

Author(s):

Xiaoxuan Zhai ◽

Xiaowen Tian

Keyword(s):

Financial Performance ◽

Organizational Performance ◽

Performance Measures ◽

High Performance ◽

Country Of Origin ◽

Content Type ◽

Work System ◽

Hrm Practices ◽

High Performance Work System ◽

The Relationship

Purpose The purpose of this paper is to develop a resource-based framework to explain the relationship between high-performance work system (HPWS) and organizational performance (OP) and the moderating role of performance measures. Design/methodology/approach The paper takes a meta-analysis approach, and tests hypotheses against data of 47,741 firms and establishments in 192 studies published by June 2016. Findings The paper finds that HPWS has a greater positive effect on operational than financial performance. Moreover, HPWS influences operational performance more strongly in developing than advanced countries and at the firm level than the establishment level, but such variations are not evident in the effect of HPWS on financial performance. Practical implications The paper suggests that managers should treat human resource management (HRM) practices as a system, and develop HPWS for operational gains which in turn lead to financial gains. Managers need to take different approaches to develop HPWS for high performance depending on the country of origin and the level of organization. Originality/value Based on studies of individual HRM practices, previous meta-analytical studies suggested that the HPWS-OP relationship is invariant across performance measures. Taking HRM practices as integral components of HPWS, this paper extends the resource-based theory to demonstrate that performance measures interact with country of origin and level of analysis to moderate the HPWS-OP relationship.

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Network activities as critical sources of creating capability and competitive advantage

Management Decision ◽

10.1108/md-08-2017-0733 ◽

2019 ◽

Vol 58 (3) ◽

pp. 544-568 ◽

Cited By ~ 3

Author(s):

Chih-Hsing Liu ◽

Angela Ya-Ping Chang ◽

Yen-Po Fang

Keyword(s):

Social Capital ◽

Human Capital ◽

Competitive Advantage ◽

Organizational Performance ◽

Innovation Capability ◽

Content Type ◽

Political Ties ◽

Depth Analysis ◽

The Relationship ◽

Business Ties

Purpose The purpose of this paper is to propose a new integrated model that combines the concepts of network ties (e.g. political ties and business ties), the organization of internal critical attributes (such as social capital, human capital and innovation capability) and analyses of how those critical attributes influence organization performance and competitive advantage. Design/methodology/approach A structural equation model and three-way interactions in moderated multiple regressions was used to test the hypotheses on a sample of 621 cultural and creative industry (CCI) managers in Taiwan. Findings The results indicate that human capital mediates the relationship between social capital and innovation capability. Furthermore, innovation capability also plays a mediating role in connecting the relationships between human capital, competitive advantage and organizational performance. The findings indicate that business ties strengthen the relationship between social and human capital. The level of human capital is at its peak when social capital, business ties, and political ties considerably interact with one another. Research limitations/implications The present study conceptualized the topic and systematized the questionnaire design and data collection, statistical analysis, and report writing. This study performs a systematic analysis to present the research but does not employ in-depth qualitative interviews to analyse the essential attributes of the different entrepreneurial styles. In-depth interviews enable the interviewees to completely depict their feelings, experiences, motivations, emotions and attitudes. Thus, this method can provide an in-depth analysis. Studies can be conducted to analyse the complexity of the processes involved. Practical implications This study determines and emphasizes that networking with various factors to create innovation is the key to enhancing competitive advantage and organizational performance. Innovation is a unique characteristic and a basic kinetic energy that affects various strategic organizational behaviours that positively influence competitive advantage and facilitate organizational performance. Hence, CCI firms need to consider market orientation and innovation in this highly competitive environment. Originality/value To the best of the knowledge, how CCI firms use networking sources to create competitive advantage and organizational performance, thereby promoting the development of the CCIs of Taiwan, has not been analysed in the tourism-related literature. Thus, the present study provides a significant contribution to the human capital literature, in which empirical research analyses the three-way interaction and demonstrates the empirical insights that may be used to study human capital. The findings reported in this study will encourage future researchers to employ multilevel human capital perspectives.

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The Mediating Role of Knowledge Management and the Moderating Part of Organizational Culture between HRM Practices and Organizational Performance

International Business Research ◽

10.5539/ibr.v9n1p43 ◽

2015 ◽

Vol 9 (1) ◽

pp. 43 ◽

Cited By ~ 5

Author(s):

Ahmad A. Al-Tit

Keyword(s):

Organizational Culture ◽

Knowledge Management ◽

Organizational Performance ◽

Knowledge Creation ◽

Positive Role ◽

Mediating Role ◽

Hrm Practices ◽

The Impact ◽

The Relationship

<p>The aim of this study was to investigate the relationship between human resource management (HRM) practices and organizational performance on the basis of 247 valid and reliable questionnaires distributed to managers at different management levels working in Jordanian manufacturing firms. The study also aimed to explore the mediating role of knowledge management as well as the moderating effect of organizational culture on the relationship between HRM practices and organizational performance. Ten HRM practices and 10 indicators of organizational performance were adopted for the purpose of this study. Knowledge management was measured by examining three processes; knowledge creation, sharing and utilization. Organizational culture was measured according to passive/defensive, aggressive/defensive and constructive cultures. The results of the study supported the presumed hypotheses. Hence, HRM practices significantly predicted organizational performance. Knowledge management mediated the relationship between HRM practices and organizational performance. Finally, it was found that organizational culture moderated the relationship between HRM practices and organizational performance as well as the relationship between HRM practices and knowledge management. Constructive cultures play a positive role in the relationship between HRM practices and organizational performance (OP), while defensive cultures negatively affect the relationship between HRM practices and knowledge management (KM). The main contribution of this study to the literature on HRM, KM and OP derives from the lack of prior studies addressing the same purposes as this study. The study informs researchers and managers that both knowledge management and organizational culture mediate and moderate the impact of HRM practices on organizational performance to a considerable extent.</p>

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EFFECT OF HUMAN CAPITAL INVESTMENT ON ORGANIZATIONAL PERFORMANCE

Social Behavior and Personality An International Journal ◽

10.2224/sbp.2008.36.8.1011 ◽

2008 ◽

Vol 36 (8) ◽

pp. 1011-1022 ◽

Cited By ~ 10

Author(s):

I-Ming Wang ◽

Chich-Jen Shieh ◽

Fu-Jin Wang

Keyword(s):

Human Capital ◽

Organizational Culture ◽

Organizational Performance ◽

Organizational Identification ◽

Capital Investment ◽

Human Capital Investment ◽

Training And Development ◽

The Other ◽

Organizational Value ◽

The Relationship

Based on 150 valid questionnaires, an investigation was undertaken through correlation analysis and multiple regression analysis to examine the following: the correlation between human capital investment and organizational performance, between organizational culture and human capital investment, between organizational culture and organizational performance, and finally the effect of organizational culture on the correlation between human capital investment and organizational performance. The relationship between staff training and development and internal trust relations positively correlated with organizational value. That same relationship was enhanced by organizational identification. On the other hand, the correlation between the 3 dimensions of organizational performance and the other 2 dimensions of human capital investment (staff recruitment; staff inspiration) was not influenced by the presence of either organizational identification or organizational value.

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Unravelling the HRM practices and performance link in Malaysian SMEs: The role of organizational innovation

Management Science Letters ◽

10.5267/j.msl.2020.11.028 ◽

2021 ◽

pp. 1111-1120 ◽

Cited By ~ 1

Author(s):

Nazlina Zakaria ◽

Francis Chuah Chin Wei ◽

Nor Azimah Chew Abdullah ◽

Rushami Zien Yusoff

Keyword(s):

Organizational Performance ◽

Performance Appraisal ◽

Organizational Innovation ◽

Strong Relationship ◽

Training And Development ◽

Linkage Data ◽

Hrm Practices ◽

And Performance ◽

The Relationship

Many studies have focused on direct link between HRM practices and organizational performance. There is a strong relationship between these two variables that driven further research to identify the mechanism through which such relationship exists. Following resource-based view (RBV), the aim of this research was to investigate the indirect effect of organizational innovation on HRM practices-performance linkage. Data was collected from owners/managers of manufacturing SMEs in West Malaysia. 331 (60.5%) distributed questionnaires were received and analyzed through PLS-SEM. Out of six hypotheses on mediation, only one hypothesis was rejected. The findings strongly supported the RBV theory when organizational innovation significantly mediated the relationship. These results clearly indicate that organizational innovation plays an intermediate role between HRM practices (i.e. communication and information sharing, compensation, selection, performance appraisal, and training and development) and organizational performance of SMEs.

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Relationship between human resource management practices, ethical climates and organizational performance, the missing link

PSU Research Review ◽

10.1108/prr-12-2016-0022 ◽

2019 ◽

Vol 3 (1) ◽

pp. 50-69 ◽

Cited By ~ 5

Author(s):

Malam Salihu Sabiu ◽

Kabiru Jinjiri Ringim ◽

Tang Swee Mei ◽

Mohd Hasanur Raihan Joarder

Keyword(s):

Resource Management ◽

Human Resource Management ◽

Organizational Performance ◽

Human Resource ◽

Content Type ◽

Hrm Practices ◽

Ethical Climates ◽

Recruitment And Selection ◽

The Relationship

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.

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The Mediating Effect of HRM Outcomes (employee retention) on the Relationship between HRM Practices and Organizational Performance

International Journal of Human Resource Studies ◽

10.5296/ijhrs.v2i1.1252 ◽

2012 ◽

Vol 2 (1) ◽

pp. 75 ◽

Cited By ~ 6

Author(s):

Fathi Mohamed Abduljlil Aldamoe ◽

Mohamd Yazam ◽

Kamal Bin Ahmid

Keyword(s):

Human Resources ◽

Organizational Performance ◽

Employee Retention ◽

Management Practices ◽

Human Resources Management ◽

Mediating Effect ◽

Resources Management ◽

Mediating Role ◽

Hrm Practices ◽

The Relationship

The matter of human resources activities have been commonly used to observe organizational performance. One of the distinctive features of HRM is that better performance is achieved through the people in the organization. In recent years significant remarks have been recorded in identifying the Human Resources Management (HRM) – performance relationship. The relationship between HRM practices and organizational performance has been well documented by the previous studies. However, authors have called for the interrogation of the mediating role of HRM Outcomes such as employee retention in the relationship between HRM practices and organizational performance. Thus, the major objective of this study is to investigate the mediating effect of HRM Outcomes (employee retention) on the relationship between HRM practices and organizational performance. Based on the evidence derived from the literature, the paper concludes that employee retention is likely to mediate in the relationship between HRM practices and organizational performance. Keywords: Human Resources management, employee retention, Human Resources management practices, organizational performance

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