Collective voice mechanisms, HRM practices and organizational performance in Italian manufacturing firms

Abstract

The literature on employee voice has grown enormously over the past decades. However, the relationships between different employee voice mechanisms and organizational performance are far from being fully understood, and the existing research shows mixed evidence. Moreover, the HRM literature tends to concentrate on individual voice mechanisms (e.g. employee involvement) and to underestimate the role that collective voice may have in the HRM performance relationship. This paper aims to analyze how collective employee voice mechanisms (i.e. union voice and team voice) affect organizational productivity and how these relationships vary when voice mechanisms are adopted in combination with other HRM practices (i.e. variable pay, training, performance appraisals and multitasking). The analysis of a sample of 223 Italian manufacturing firms matched with an external database (AIDA) containing balance sheet information found that union voice is positively related to labor productivity, while team voice does not show any significant relationship with labor productivity. Moreover, both union and team voice have important moderation effects in the HRM-performance relationship. Union voice moderates positively the relationship between variable pay and performance and negatively the relationship between training and performance. Team voice positively moderates the relationship between training and performance. The implications of these findings are discussed.