'Perceptions of Performance Appraisal Quality' and Employee Innovative Behavior: Do Psychological Empowerment and 'Perceptions of HRM System Strength' Matter?

Aamer Waheed,Omer Malik,Qaisar Abbas

doi:10.3390/bs8120114

Aamer Waheed, Omer Malik + Show 1 more

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https://doi.org/10.3390/bs8120114

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Abstract

Organizations need to be innovative for their long-term survival and this can be achieved when their employees demonstrate innovative behaviors at the workplace. Innovative behavior has thus received considerable attention from researchers, particularly on exploring the factors which foster employee innovative behaviors. Based on human resource system strength theory, the objective of this study is twofold. First, it examines the direct and indirect relationship between perceptions of performance appraisal quality (PPAQ) and innovative behavior mediated through psychological empowerment. Second, it examines the moderating effect of perceptions of HRM system strength in the hypothesized links. A total of 360 faculty members participated in the study from twelve public sector higher education institutes in Islamabad, Pakistan. Partial least squares structural equation modeling (PLS-SEM) is used for statistical analysis of the quantitative data collected through self-administered questionnaire. Results demonstrated that PPAQ is positively related with innovative behavior. The findings also support the mediating role of psychological empowerment and the moderating role of perceptions of human resource management (HRM) system strength. We contribute to the literature by demonstrating that HRM content and process are two complementary facets of an HRM system in bringing out positive work behaviors. A number of practical implications and directions for future research are outlined.

Highlights

In a knowledge-based economy, innovation is vital to organizational success by developing, implementing, and promoting new knowledge, ideas, technology, and business models [1,2,3].The inspiration of an individual plays a pivotal role in the development of new products and/or services [4]
Based on HRSS theory [42], we argue that performance appraisal is an important HR practice and performance appraisal quality (PPAQ) is considered a crucial content of the human resource management (HRM) system which sends signals, communicates promises, and psychologically empowers employees to obtain the desired contributions [62]
The current study empirically demonstrated that PPAQ has a positive impact on employee innovative behavior

Summary

Introduction

In a knowledge-based economy, innovation is vital to organizational success by developing, implementing, and promoting new knowledge, ideas, technology, and business models [1,2,3]. The inspiration of an individual plays a pivotal role in the development of new products and/or services [4]. Innovative employees keep on searching for new opportunities to satisfy their creative appetites [5]. The innovative behavior of employees is recognized as the foundation for organizational innovation [6] and competitive advantage [7,8] where the employees’ capability of being innovative in their methods, goods, and services sets the basis for development [9]. The seminal work conducted by Katz [16,17] leads us in developing an

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