Effects Of HR Practices Research Articles

The Impact of HRM Practices on Organizational Financial Performance of Banking Sector of Pakistan

This research comprehensively assessed the relation between framework of human resource management (HRM) practices and organizational financial performance. The results based on a sample of banks of Pakistan demonstrate that these practices have a monetarily and measurably huge effect on financial performance of organization in short and long term. Information was gathered through a questionnaire survey and tested on random sample of 120 bank employees in Pakistan. The effect of HR practices on financial performance of association is to a limited extent dependent upon their interrelationships. The mediating model is applied where the perceived organizational support is the mediating factor among the independent variables HR practices and dependent variable the financial performance of firm. The investigation demonstrates the relationship on the information gathered by the surveys using Statistical techniques, i.e. correlation and regression. The study concluded that all tested variables have a positive relation and impact on financial performance of banks. Towards the end, the research challenges are presented to mainstream researchers and future patterns are also enlisted.

HRM Practices to Generate Effective Organizational Performance: A Review of Literature

HRM practices have been evolving from past decades as they help in understanding how better the employees can be managed so that they can generate higher productivity and effective performance to the organization. This paper tries to identify the function of HRM practices on organization performance. There are varieties of HRM models which have been proposed to give effective results through these models effective HR practices are derived. Academic research shows that HR practices are capable to generate competitive advantage of the organization. But much of efforts are not yet been made from the end of organization. Organisation still feels doubtful to invest on their human resources. Also not much of evidence is available about the successful implementation of approaches of HRM. Partially implemented approaches are hard & soft HRM, knowledge management and others. As per currently changing environment knowledge management approach is considered to be most effective because information handling is most essential in current and future time. Findings suggest that effective HRM practice depends on the structure, system and skills of organization and that needs to be identified and studied effectively by the leaders of the organization. This can result in effective performance of organization through HR practices

A Study of Employee's Work-Life Balance in Indonesia: The Effect of Human Resources Practice and Perceived Organizational Support

This empirical research was conducted to examine the impact of effective human resource practice and perceived organizational support in improving employee work-life balance in Indonesia. The study sample consisted of 363 employees worked in Bandung and Jakarta. Sample was selected using nonprobability method. We testing the mediation role of perceive organizational support between effective HR practices and work-life balance at individual levels. This study helps explain the work and life interaction among employees by analyzing the level of suport from organization. SPSS with Macro Process was used to test the relation. Participants presume that organization already practice effective HR policies and gave adequate support to do the job. Employee also develop higher balance between work and private life. It seems such balance was formed by the organization involvement. Our findings support the statement that the relation of effective HR practices and work-life balance is mediated by employee's regarding organizational support. Management should focus on developing human resources policies that regards as promoting support for employees. Keywords: Human Resources Practice, Perceived Organizational Support, Work-Life Balance

HOW HR PRACTICES AFFECT ORGANIZATIONAL COMMITMENT AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR

The HRM and effective HR practices play an important role for promoting a committed environment and a culture of citizenship. This study is intended to explore the HRM systems’ dynamics and applied HR practices in Lebanese banks and to find their possible link with employee commitment and citizenship behavior. The primary research selected six most representative Lebanese banks. A questionnaire on employee commitment and citizenship behavior was sent to each bank’s HR officers. The questions were derived from the OCQ, ACS, CCS, NCS, and CBS. Direct positive relationship between HR and organizational commitment was not completely verified in terms of the Lebanese bank institutions. The HR-OCB relationship is much more coherent and noticeable especially when the HR role of employee champion emerges. Commitment has a strong relationship with the OCB. Lebanese banks have very promising examples of serious dynamic HRM initiatives that promote employees’ support and recognize their efforts while trying to capitalize on their competences, commitment, and displayed citizenship behaviors.

Collective Employee Perception on Firm-Specific Training: Moderating Effect of Managerial Rank

This research investigates employees’ perception on firm’s internal training investments and examines how this collective perception on training practices sequentially influences their collective attitudes - collective satisfaction and commitment - towards firm. Based upon human capital literature, firm’s intention to build up firm-specific human capital resources for gaining sustainable competitive advantage presents as sending a signal by investing on firm-specific training practices. Drawing upon signaling theory, this research suggest that employees perceive this signal as more effective when the signal gets intense, in result, those collective perception enhances collective attitudes. Also, this research argues managerial rank may disturb firms’ signals towards employees to perceive training investment, which is why managerial rank originally shapes as general task characteristics. Using 317 firms (1,268 firm-year observations) for 4-time analyses, this research significantly predicted the mechanism for collective attitudes. Also, the relationship between firm-specific training investment and the perception of firm-specific training effectiveness got weaker especially firms have more entry-level employees. By highlighting perception research on strategic human resource management (SHRM) literature, research revealed that key is on employee perception about the mechanism of HR practices on firm-level outcomes. Moreover, explaining as signal-sending, the effect of HR practices can be disrupted by condition - managerial rank ratio.

Understanding Competitive Advantage Through HRM: Looking Beyond the Use of Effective HR Practices

Strategic human resource management (SHRM) scholars and practitioners have long recognized the importance of HRM as a source of competitive advantage (e.g., Boxall, 1998; Coff, 1997; Wright, McMahan, & McWilliams, 1994), demonstrating that systems of effective and interconnected HR practices enhance the abilities, motivation, and opportunities of employees to meaningfully contribute to value creation in their employing organizations (Jiang, Lepak, Hu, & Baer, 2012; Lepak, Liao, Chung, & Harden, 2006). This literature has traditionally focused on the link between HRM and organizational performance, with a frequent emphasis on the alignment of HR practices – or HR content – as a coherent system (e.g., horizontal alignment) that supports the requirements of an organization’s environment (e.g., vertical alignment). More recently, some SHRM scholars have begun to explicitly examine additional factors that may influence the effectiveness of HRM, including HR processes within the focal organization (e.g., Bowen & Ostroff, 2004), key organizational members (e.g., Jackson & Schuler, 2003), and changes in the external environment (e.g., Combs, Liu, Hall, & Ketchen, 2006). One key insight which has emerged from these research efforts has concerned the importance of considerations beyond the use of effective HR practices in addressing the question of how to achieve competitive advantage through HRM. The purpose of the present symposium is to advance this insight by bringing together research that explicitly investigates factors beyond the use of effective HR practices that further our understanding of how and when HRM contributes to competitive advantage. Our symposium is comprised of papers examining a broad range of such factors, including the roles of the dynamics characterizing organizational environments, internal HR actors, and the activities of external competitors as they contribute to (or hinder) organizations’ abilities to achieve a human resource-based competitive advantage in different ways. The benefits of such a symposium are two-fold. First, this symposium will allow for a richer discussion regarding the contexts and mechanisms through which HRM creates and maintains the competitive advantage of organizations. Specifically, the papers included here span research concerning the achievement of HR alignment via an agentic and process-based model (Kim & Kehoe), the value and benefits of HR functions and HR executives (Bentley & Choudhury; Chadwick & Jo), and the impact of peer companies on HR practice effectiveness and adoption (Jiang, Takeuchi, & Jia). We aim to transcend the HR practice-oriented perspectives adopted in prior studies. Second, the symposium will offer insights into how organizations might best achieve competitive advantage through HRM. The papers aim to investigate the theme “looking beyond the use of effective HR practices”, articulating the considerations relevant to HRM optimization with which an organization must contend. Our goal is to provide a glimpse into some of the current research being conducted by SHRM scholars whose focus transcends the use of effective HR practices. Focusing on the “How” of HR Alignment: An Agentic and Process-Based Model Presenter: Joonyoung Kim; Cornell U. Presenter: Rebecca Rheinhardt Kehoe; Cornell U. Value of the Formal HR Function Presenter: Clint Chadwick; U. of Kansas Presenter: Jinhwan Jo; U. of Kansas When and How Firms Benefit from Having an HR Executive: A Longitudinal Analysis Presenter: Frederick Scott Bentley; Binghamton U.-State U. of New York Presenter: Anwesha Choudhury; Binghamton U.-State U. of New York Impact of Peer Companies on the Adoption and the Effects of High-Investment Human Resource Systems Presenter: Kaifeng Jiang; Ohio State U. Presenter: Riki Takeuchi; U. of Texas at Dallas Presenter: Yingya Jia; Shanghai U.

Moderating Effects of Management Philosophy on High-Performance Work Practices–Firm Performance Relationship

ABSTRACT Research evidence has signified that relationship between human resource practices and performance is contingent on the effect of a contingent variable. Nevertheless, survey of the extant literature signifies paucity of research on moderating effect of management philosophy. Thus, this study examined the moderating effect of management philosophy on the relationship between high-performance work practices (i.e. selective hiring, training & development, performance appraisal, pay-for-performance, and succession planning) and firm performance. The study employed cross-sectional research approach in which data were collected from a sample of 372 managers in Nigerian firms. Partial Least Squares Method (PLS) algorithm and bootstrapping techniques were used to test the study’s hypotheses. The overall findings confirm that selective hiring, training and development, performance appraisal and succession planning have significant positive influence on firm performance while pay-for performance has non-significant effect on firm performance. The findings also indicate that the positive effect of HR practices on organizational performance cannot be strengthened, if management philosophy of a firm is not consistent with the values, attitudes and beliefs of the employees. The findings have profound implications for both theory and practice. The findings support resource-based view (RBV) by implying that firm’s human capital can serve as a basis of competitive advantage, given that employees are of strategic importance to the success of organization. HPWPs can be used as tools in managing human capital effectively. Nonetheless, the vague process (i.e. black box) in the HPWPs-Performance nexus should be examined by the future studies.

HR practice salience: explaining variance in employee reactions to HR practices

This study introduces the construct of human resource practice salience (HR salience) and examines it as a moderator in the HR practices–employee outcomes relationships. In Study 1, we used a policy-capturing approach to examine how 118 graduate students reacted to three HR practices depending on the salience of the practices. Based on this sample, we found that individuals were more likely to be attracted by an organization providing performance-based pay and work flexibility practices when these two practices were more salient to them. In Study 2, using time-lag data from 451 employees to examine how HR salience moderates the relationships between the three practices and employee attitudinal outcomes, we found that the relationships between performance-based pay and attitudinal outcomes were stronger for individuals who found this practice to be more salient to them. We noted in both studies that the more salient practices had stronger relationships with employee outcomes than the less salient practices. This study contributes to strategic human resource management literature by providing an explanation for the variability in the effects of HR practices on employee outcomes. We also discuss the practical implications of this research.

The effect of HR practices on job loyalty through psychological empowerment and job satisfaction in Pt. X

The effect of HR practices on job loyalty through psychological empowerment and job satisfaction in Pt. X

Does work-life balance mediate the relationship between HR practices and affective organisational commitment Perspective of a telecommunication industry in Indonesia

This study investigates the moderating role of work-life balance in the relationship between HR practices and affective organisational commitment. This study uses a quantitative method with a survey approach. Questionnaires were distributed to employees working in the telecommunications industry in Indonesia using random sampling techniques. A total of 363 respondents participated in filling out the questionnaire. This study found a significant effect of HR practices on work-life balance and affective organisational commitment of employees in the telecommunications industry. In addition, work-life balance has been proven to mediate the relationship between HR practices and affective organisational commitment. Research findings show that the telecommunications industry has maintained and improved effective HR practices to help employees achieve work-life balance. A conducive and supportive work environment will be embedded in an individual's mindset, thus they feel a stronger emotional attachment to the organisation. The implications of this study will be discussed further.

The Effect of HR Practices on Business Performance in Morocco: An Application of the Universalist Approach

The role of HRM in improving business competitiveness is recognized. The scientific literature has several theoretical approaches through which some authors have attempted to validate this hypothesis. The objective of this study is to verify if the companies most successful in Morocco are distinguished by their HR practices under the Universalist approach. We quantitatively analyze the returns of a panel of 92 national and multinational companies in Morocco. A context far unexplored by management researchers. These companies operate, since the 80s, in a context of strong competition due to the globalization of markets. The results are used to validate the Universalist perspective and argue the scope of certain HR practices in this context.

How to Improve Employee Health and Well-Being at Work: The Role of HR Practices

Thus far, the empirical evidence about the effects of HR practices on employee outcomes shows that while HR practices have a positive effect on employee well-being, HR practices also cause side effects in terms of reduced employee health. Despite the growing indications of these trade-offs between different aspects of employee well-being and health, we still have a limited understanding about how and why HR practices are beneficial or detrimental for employee health and well-being. Accordingly, the set of papers in this symposium aim to shed more light on (1) the differential impact of bundles of HR practices (i.e., skill-, motivation-, and opportunity- enhancing HR practices) on various indicators of employee health and well-being and (2) the processes through which HR practices affect different types of employee health and well-being. Collectively the papers suggest that (some) bundles of HR practices have positive effects on employee health and well-being, with some caveats for HRM systems that (in particular situations) also result in reduced employee health by signaling that increased work effort is expected. Are HRM Systems Good or Bad for Employee Well-being? A Meta-analysis of the Workers Verdict Presenter: Hoang Ho; BI Norwegian Business School Presenter: Bard Kuvaas; BI Norwegian Business School Building a Context for Meaningful Work: Exploring the Link between HRM and Positive Employee States Presenter: Jae Hyeung Kang; Oakland U. Presenter: Jake Messersmith; U. of Nebraska, Lincoln The Impact of HRM on the Development and Dynamics of Employee Outcomes: A 1-year Longitudinal Study Presenter: Felix Anker Klein - Of Psychology; Institute of Psychology, U. of Oslo Presenter: Sabine Raeder; U. of Oslo Daily Work Demands, Need for Recovery and Engagement: The Importance of HRM Practices Presenter: Karina Van De Voorde; Tilburg U. High-Performance Work System and Employee Burnout: A Two-Path Model Presenter: Jianmin Sun; Renmin U. of China Presenter: Yuan Li; Chinese Academy of Social Sciences Presenter: Lu Xing; Renmin U. of China

Managing Commitment: The effect of HR practices on employee commitment

The objective of this study was to identify the organizational practices that affect employees' commitment to their organizations. A sample of 109,458 workers belonging to 313 companies was used. W...

PROGRAM DEVELOPMENT OF ENTERPRISE HUMAN RESOURCES ON THE BASIS OF COGNITIVE MODELING

Questions of efficiency increase of human resource management are one of the most discussed by scientists of different countries in the last decades. This is due to many reasons and above all, the increasing human impact on the competitiveness of modern organizations, constantly changing external conditions of their functioning and the necessity of taking into account country and industry specifics. Effective management of human resources is one of the necessary conditions for the competitiveness of modern enterprises. The main tool of this management is program development of human resources. The article presents an overview of the key areas in the field of human resource development programs (HRD programs), the necessity of their agreement with the enterprise development strategy and consideration of influence on organizational effectiveness. The authors have presented a causal model of the relationship between human resource management (HRM) and labour performance and researched the procedure justifying the selection of HR practices. The article presents a cognitive map of the impact of human resources on the results of company operations. The analysis of cognitive map has allowed the researchers to reveal the structure of the problem (situation), to find the most significant factors affecting it and to carry out a reasonable choice of control actions to achieve objectives. The stages and tools for developing HRD programs on the basis of application of cognitive modelling are presented here. This fact has allowed us to evaluate the impact of HR practices on key indicators of organization performance at the design stage. In conclusion the authors have noted that it is necessary to consider the indirect effects of HR practices on the performance of organization and relationships between various aspects of human resources management . In this regard it seems appropriate to use wider application in the field of cognitive modeling and simulation. According to the authors this approach will accomplish the quantitative assessment of the impact of HR practices on organizational effectiveness at the stage of designing the programme of human resource development. At the same time it provides the possibility of"situational" factors accounting for a particular organization.

Human resource practices and affective organisational commitment: A sectoral comparative study

Orientation: Organisational commitment (OC) is often depicted as a desirable employee attitude and relates to organisational performance. Little research has been carried out on the (Human Resource) HR practices–OC relationship within the South African context, and specifically with regard to this relationship across various sectors.Research purpose: The purpose of this contribution is to specify the HR practices–OC relationship, within South Africa, and specifically across various sectors.Motivation for the study: It addresses the important matter of OC, a necessary requirement for sustaining organisations, through effective delivery of HR practices.Research design, approach and method: This study is based on a cross-sectional survey design, collecting primary data on HR practices and OC from South African employees in public and private sector organisations, as well as state-owned entities.Main findings: Minimal practically significant mean scored differences were detected among HR practices delivered per sector. Furthermore, a positive link between effective HR practices and OC was found within each of the three sectors, but this relationship was sector-specific.Practical implications: The findings of this study offer a new, contextualised perspective on the HR practices–OC relationship. The data gathered could assist practitioners in reshaping HR policies – and particularly practices – to suit their specific sector.Contribution and value add: The findings of this study are expected to offer valuable insight into the deferential management along sector lines. They also reiterate the importance of localised research and caution practitioners not to transfer research findings to local settings without a thorough investigation of local research.

Industrial relations (IR) changes in China: a foreign employer’s perspective

PurposeAlthough studies on Chinese industrial relations (IR) have examined topics such as unionization and collective bargaining, little is known about employers’ reactions to recent IR changes. In particular, researchers have not thoroughly considered foreign employers’ labor relations strategies. Amidst this background, the purpose of this paper is to investigate how a foreign employer perceives and responds to the recent IR changes in China.Design/methodology/approachThis paper conducted an exploratory, inductive study of the Chinese subsidiary of one multinational corporation. The data were collected through the author’s extensive fieldwork at its headquarters and Chinese subsidiary.FindingsThis paper shows that the union of a foreign firm in China serves three major functions – a collective voice, a monopoly, and an external affairs function – and that the firm’s interpretation of these functions has changed within China’s dynamic IR environment. Further, this paper finds that an employer has initiated its own compliance strategies, such as forming a friendly union, decoupling the union’s functions, de-collectivizing employment relations through effective HR practices and stricter policies, and scaling down in size to reduce administrative burden.Originality/valueBy introducing an employer perspective regarding recent IR changes, this paper provides a nuanced understanding of unionization and collective bargaining implementation in China. In addition, this paper identifies an emerging pattern of employer perception and response in China, highlighting unique features that have not been addressed in the existing literature on employers’ anti-union behavior. This study’s contributions also facilitate further research encompassing different contexts.

Measuring the Use of Human Resources Practices and Employee Attitudes: The Linked Personnel Panel

This paper introduces a new data source available for HRM researchers and personnel economists, the Linked Personnel Panel (LPP). The LPP is a longitudinal and representative employer-employee data set covering establishments in Germany and designed for quantitative empirical HR research. The LPP offers a unique structure. First, the data set combines employer and employee surveys that can be matched to each other. Second, it can also be linked to a number of additional administrative data sets. Third, the LPP covers a wide range of firms and workers from different backgrounds. Finally, because of its longitudinal dimension, the LPP should facilitate the study of causal effects of HR practices. The LPP employee survey uses a number of established scales to measure job characteristics and job perceptions, personal characteristics, employee attitudes towards the organisation and employee behaviour. This paper gives an overview of both the employer and employee survey and outlines the definitions, origins and statistical properties of the scales used in the individual questionnaire.

A CONCEPTUAL FRAMEWORK FOR LINE MANAGERS HRM IMPLEMENTATION EFFECTIVENESS: INTEGRATING SOCIAL CONTEXT AND AMO THEORIES

Over recent decades, there has been an important stream of research that has examined the human resources management (HRM) and organizational effectiveness relationship. However, few of these studies have paid attention to developing perspectives regarding effective HRM implementation. Such implementation is a process that is not only executed by HR managers, for it is also the responsibility of line managers and other employees of the organization. Increasingly, the responsibilities of HRM are being passed on to line managers, who have thus become more involved in dealing with their employees’ HRM issues. This study is aimed at investigating the factors that can influence the degree to which effective HR practices are implemented, going further than previous theoretical studies by proposing a conceptual model of HR implementation effectiveness. We incorporate the social context theory and AMO theory into the model. Social context factors of organizational culture, organizational climate, and political considerations as features of the work environment and top management’s HR support as a higher-order social context dimension are proposed as drivers for effective implementation of HR systems and practices. The model also considers ability-motivation-opportunity factors as one set of variables that mediates the relationship between social context variables and line managers’ HR implementation effectiveness. This study tries to step into an area of study which has not been comprehensively explored by the scholars. It involves putting forward a model of HR implementation effectiveness by considering the role of line managers and a set of propositions for testing in field. The propositions developed in the model provide guidelines for further study in the focal HRM topic that we believe will generate beneficial findings for both practitioners and academics.

An Exploration of the Role Duality Experienced by HR Professionals as Both Implementers and Recipients of HR Practices: Evidence from the Indian Railways

This study provides an innovative perspective on empirically assessing HR by focusing on the duality of HR professionals’ experiences as both implementers and recipients or internal customers of HR practices given that they are also employees of the organization. We hypothesize that HR professionals experience HR practices more favorably from an implementer perspective as compared to an internal customer perspective. These differences in experiences are likely to be influenced by HR professionals’ hierarchical position in the HR department. Our analyses of 1,271 HR professionals employed by Indian Railways revealed a number of differences between the two types of experience. Some practices (recruitment and selection, training, and employee welfare) were viewed more negatively from the implementer perspective, whereas others (compensation, benefits, and employment relations) were rated more negatively from the internal customer perspective. Those holding more senior HR positions reported more positive experiences of training and employment relations from an internal customer perspective. Overall our contributions draw on the attribution theory and concepts of intraorganizational power and voice, and have implications concerning the effectiveness of HR practices. © 2015 Wiley Periodicals, Inc.

Human Resource Management and Knowledge Management

In order for having a sustainable competitive advantage, organizations are generally recognizing the crucial importance of knowledge management as a competitive weapon to exile in the global competition. Accordingly, it is a must to consider the impact of such a notion towards the theory and practice of management in general and other functional areas like HRM in particular. To effectively manage and gain significant contribution of knowledge and knowledge workers for organizational performance, organizations tend to use effective HR practices and strategies in knowledge management. In this regard, the objective of this study is to describe and analyze the theories and existing practices of human resource management and knowledge management via literature reviews. According to this paper, organizations are generally recognizing the crucial importance of knowledge and knowledge management as a competitive weapon to exile in the global competition. Such trend challenges the traditional HRM in considerable ways more than ever before. Beyond its consideration of the challenges posed to HRM in general, this paper has tried to address the transformation needed by the major functional areas of HRM in such a way that they are going to respond to these challenges.