HR Decisions Research Articles

A Study of Performance Management System as a Strategic Tool of HRM

In present hard-hitting competition, one of the strategies to be a successful organization is to get right candidates for every available position in the organization and retain the good employees to have better and highly motivated workforce. So what actually needed for an organization and managers is to attract, retain and motivate a talented workforce? It is proven fact that all high performance organizations whether public or private are and must be focus on developing and adopting effective performance measurement and performance management system; because it is only with the help of these systems organization can remain high performer. Now-a-days, in any industry whether small or big, human resource management not just plays traditional role but they are using various strategical tools of HRM to evaluate its employees’ performance and manage it accurately with a new system in the field of HRM known as Performance Management System (PMS). PMS helps the organization in aligning individual’s goal and objectives with organizational objectives. This paper deals with how PMS can be utilized for taking various strategic HR decisions and the effectiveness of PMS. The result of the study shows that a performance management system acts as a strategic tool and a powerful foundation for the employees to achieve their ambitions and organizations to achieve their key financial goals.

PSYCHOLOGICAL ASPECTS OF STAFF SELECTION BY A MODERN MANAGER

The article is dedicated to staff selection depending on the conditions of a modern organization and the nature of its functioning. Currently, staff selection at the request of a particular leader has become very common. The same tendency is observed in all countries and at all levels of the organization. There is no doubt that HR decisions are based not only on business interests but also psychological characteristics. Particular attention is paid to such concepts as team, leader, personality, as well as to psychological characteristics that emphasize the exceptional role of a leader in staff selection. It was found that the psychological component occupies a very important place in the team concept. Moreover, it plays a dominant role, both in terms of staff selection and team functioning. A team, as a modern form of social organization, embodies various psychological potential for its further expression. In some cases, positive psychological atmosphere can be an effective positive mechanism for society functioning. In other cases, psychological mood may already be different and aimed at selfish interests of the members of this organization, which do not coincide with the interests of other people.

Path Analysis for Implementation Analysis Of Human Resources Information System On Human Resources Planning

At present, the quality of HR decisions is highly dependent on the quality of information held and obtained. HR information should be made available to HR managers and other line managers in the company or agency so that it will facilitate decision making. In the current era of technological development, information systems are developing rapidly in support of management activities. In other words, HR information systems can get the information needed or the choices of many people who are more related to new HR planning activities. The purpose of this study is to measure the contribution of the implementation of human resource information systems to the effectiveness of human resource planning. In this paper, the analysis uses the path analysis model. The results of the analysis of the implementation of the HR information system can explain the benefits of the HR information system in the organization’s HR planning decision making.

Conflict Management Strategies and Organizational Performance in Banking Sector of Pakistan

This study identified the major factors causing conflict and studied the relationship between conflict management strategies and organizational performance by considering financial sector of Southern Punjab, Pakistan. Data collected through a self-administered questionnaire from a sample of 100 respondents and data analyzed through Statistical Package for Social Sciences (SPSS) version 16. In order to study the relationship between conflict management strategies and organizational performance regression analysis was performed. The study reflects that key causes of conflict are related to way of expression and communication between management and employees. Conflict management strategies and organizational performance found a statistically significant and positive relationship in between. This study finding will be helpful for the managers and HR decision makers to facilitate the organizational performance through better implementation of conflict management strategies.

Human Resource Information System (HRIS): An Important Element of Modern Organization

Human resources are the most important factor for any organization working in the 21st century. With the increasing effect of globalization and technology, organizations have started to use information systems in various functions of human resources. Human resource information system (HRIS) is not a new concept. Its application is improving day by day with changing the environment. It is one kind of software for data entry, data tracking, and other information about Human Resources like payroll, management, and accounting functions within an organization. An HRIS generally provide the ability to make the plan more effectively, control and manage HR costs; attain better efficiency and excellence in HR decision making; and improve employee and managerial productivity and effectiveness. Lastly, I can say that HRIS has various benefits, but the primary benefit is HRIS stores plenty of data about the employees of the organizations. It also helps in the strategic activities of HR managers and more in training and development, applicant tracking in recruitment and selection and human resource planning, etc.

Governance Reforms, Individualization of Human Resource Management (HRM), and Impact on Workplace Behavior—A Black Box?

The purpose of this article is to discuss the relationship between destandardization and delegation trends; ethical leadership; perceptions of organizational fairness; and justice and workplace behavior. It is argued that current destandardization, delegation, and individualization trends in the field of HRM place additional burdens on managers. In times of de-bureaucratization, more job autonomy and flatter hierarchies, managers change; shape; direct; and alter employeés lives. On the other hand, research has found that justice perceptions of the leader are strongly related to employee outcomes. Still, there is very little evidence on all these trends. In which HR fields can we observe destandardization and delegation trends? What is individualization of HR and how does this relate to ethics? How much discretionary powers have managers in making HR decisions? What forms of leadership behavior impact on what type of organizational justice perceptions? How professional are managers in carrying out these tasks? Are managers aware about the importance of ethical leadership on different forms of justice perceptions? The article concludes that academic discussions about all of these issues are still very rudimentary. Thus, the purpose of this article is to suggest a new important reform agenda in this field.

Execution of Artificial Intelligence Approach in Human Resource Management Functions: Benefits and Challenges in Pakistan

Artificial intelligence has a theatrical effect on management of the workforce in the future. This paper has highlighted the benefits and challenges to adoption of artificial intelligence approach in human resource management functions in Pakistan. Artificial intelligence-based human resource applications have robust potential to increase employee performance, engagement & retention while it also helps to reduce turnover, errors, time & biases in HR decision making. Artificial Intelligence needs to be incorporated by the organization in Pakistan for effective people management and HR decisions. Reluctance to the adoption of artificial intelligence in human resource management functions can demonstrate the devastating effect on the overall growth of the organization; thus, human resource leaders should prepare and train the human resource for the adoption of artificial intelligence & also address the concerns regarding man & machine interactions at the workplace. Yet, artificial intelligence cannot substitute the human element in human resource management, although if artificial intelligence united with capabilities of a human, would fetch on more intelligent solutions for HR. Hence, in today’s world, artificial intelligence is a formula for the success of HR.

Reviewing the Concept of Green HRM (GHRM) and Its Application Practices (Green Staffing) with Suggested Research Agenda: A Review from Literature Background and Testing Construction Perspective

Green HRM has become one of the most critical topics in the Business world and sustainability. Many researchers and studies indicate that environmental green staffing associated strongly with the success of financial and marketplace components. The Green Human resource in green-oriented organisations plays a significant part in shaping the culture of suitability in their organisation. Shaping the practices and applications of the HR with the green view and applications will have an effect on all HR decisions and through all the activity of shareholders viewpoint. Currently, all the work gives more attention to the relationship between GHRM and organisation sustainability. GHRM help in creating, developing and implementing the strategy of sustainable business within the organisation. Although green HRM is still with ground-breaking, unclear define concept and its applications facing some difficulties. The purposes of this study in to present a full theoretical framework for GHRM practices and to test the perspective of the GHRM concept in construction companies in Egypt and the UK. The main finding is the perspective of the UK is higher than Egypt in realizing GHRM important to the organisations.

The Impact of HR Analytics on the Training and Development Strategy - Private Sector Case Study in Lebanon

This study investigated the impact of HR analytics on the training and development strategy of private organizations in Lebanon. It sought to test four hypotheses namely: There is a significant relationship between HR analytics use in large businesses and the development of employee skills; there is a significant relationship between HR analytics use in older businesses and the development of employee skills; there is a significant relationship between HR analytics use in large businesses and the retention of employees; and there is a significant relationship between HR analytics use in older businesses and the retention of employee. HR analytics has a significant influence on the development of employee skills and HR analytics has a significant influence on the development of HR training strategy. The study relied on a quantitative correlational research method with the help of an online questionnaire as the data collection instrument. A total of 302 respondents from the private sector in Lebanon returned valid responses to the questionnaire. The results validated each of the four hypotheses. They revealed that HR professionals rely on HR analytics to formulate employee development strategies. Data from HR analytics is used to predict potential outcomes of important HR and organization strategy decisions. In conclusion, the findings from this study imply that businesses should integrate HR professionals and HR analytics into the process of decision making and development strategy formulation.

РЕСКРИПТ HR-МЕНЕДЖМЕНТУ ПІДПРИЄМСТВА: ДІДЖИТАЛ-РЕАЛІЇ

Introduction. Today, the aggressive competitive background and the irreversibility of globalization processes determine digital realities, where HR management indicates the success of offline and online business. It is determined by a steady dynamic growth of enterprises’ revenues due to the expansion of new segments, rational differentiation of the target audience and a market share. Achieving the planned key metrics of business is possible only with the productive staff work, which depends on the loyalty level and the degree of involvement in management decisions. Purpose s . The purposes of the scientific article are to rescript the specifics of enterprises’ HR management in digital realities, as well as to develop the proposals and recommendations for its rational organization based on increasing the staff loyalty level. Results. The significance of rational enterprise organization and HR management in digital realities is interpreted as a result of processing fundamental scientific works of famous scientists and economists. Based on monitoring and analysis of enterprises activities that operate in the national and international markets, the key factors, which affect the staff loyalty and act as drivers of their potential growth are identified. It is reasonably proved that the set of accumulated staff competencies, as well as the degree of their involvement in the enterprise activities indicate the level of staff loyalty. A strong correlation between the level of staff loyalty, the productivity of their activities and the enterprise profitability is identified. Originality. The methodical basis of the study is general scientific approaches (integrated and process) with the usage of scientific deduction and induction methods, as well as logical and comparative analysis. Additionally, to generate options for management HR decisions and its visualization, the HARMONY Decision Maker was used. Conclusion. The key role of the staff loyalty for enterprises and its impact on business development are justified, including the maximum satisfaction of heterogeneous needs and preferences of customers, as well as the formation of their positive experience. It is provided recommendations regarding the use of the symbiosis model of interaction with the staff and policy management model as part of the HR-policy that provides the simultaneous build HR capacity. The scientific approach is developed regarding monitoring and systematic comparative assessment of staff, taking into account two dimensions of loyalty (axiological, axial). Implementation of the approach will help to improve HR management by updating its basic imperatives and catalyse the progressive development of the business in the context of permanent bifurcations. The basic imperatives of HR-management of Ukrainian enterprises in digital realities are formulated and recommendations on the use of the model of cross-functional interaction of staff are provided. The use of specialized software for optimizing decision-making in HR management is proposed and tested. The postulates of HR management are developed, and its implementation will guarantee the business independence from endogenous staff turbulence in digital realities.

Innovating for the Better? The Role of Advocacy Group Work Experience for Employee Pay

How valuable is work experience with advocacy groups, e.g. Greenpeace, for new hires of innovative firms? We integrate strategic human capital with stakeholder theory and suggest that this experience creates scarce human capital (knowledge, skills, abilities) facilitating innovations acceptable and legitimate for stakeholders such as regulators or residents. We argue that such human capital is complementary to firm resources and leads to a value surplus. Individuals with advocacy group work experience can subsequently appropriate at least parts of that surplus through higher salaries. Using matched data for 10,303 employees in Denmark, we find that new hires of innovative firms with advocacy group human capital enjoy salary premiums which are stronger in mature and technologically concentrated firms. Our findings have important implications for HR decision making.

EMPLOYEE PERCEPTION TOWARD THE IMPECT OF INFORMATION TECHNOLOGY IN HUMAN RESOURCE MANAGEMENT

Human Resource Information technology is a software solution for small to mid-sized businesses to help automate and manage their HR, payroll, management and accounting, recruiting selecting and many others. In the present time the role of IT in HRM is very wide and special
 An IT in HRM generally should provide the capability to more effectively plan, control and manage HR costs; achieve improved efficiency and quality in HR decision making; and improve employee and managerial productivity and effectiveness.
 An IT in HRM offers HR, payroll, benefits, training, recruiting and compliance solutions
 Most are flexibly designed with integrated databases, a comprehensive array of features, and powerful reporting functions and analysis capabilities that you need to manage your workforce. This can give back hours of the HR administrator’s day previously spent attending to routine employee requests.
 An IT in HRM also facilitates communication processes and saves paper by providing an easily-accessible, centralized location for company policies, announcements, and links to external URL’s. Employee activities such as time-off requests and W-4 form changes can be automated, resulting in faster approvals and less paperwork.
 An affordable Human Resource Information System allows companies to manage their workforce through two powerful main components: HR & Payroll. In addition to these essential software solutions, HRIS offers other options to help companies understand and fully utilize their workforce’s collective skills, talents, and experiences.

Can Computers Run HR Function at Business Schools?

This paper provides empirical evidence that machine learning algorithms can successfully replace humans in some core processes that fall within HR tasks at business schools, and probably also in other types of organizations. Narxoz University in Almaty, Kazakhstan, has implemented the KPI system, with strategic goals cascaded to organizational units and then to individual faculty and staff members. Wage increase and promotion decisions are linked to a semi-annual faculty and staff performance review, which is in turn based on the KPI assessment, quality of teaching, research output and additional achievements. We used data analyzed by Narxoz’s HR Committee and decisions taken by the Committee’s to estimate logit and CART models that recommend wage raise decisions. We showed that these simple machine learning models could replicate HR Committee decisions with good accuracy. Moreover, we also showed that faculty members selected for wage raise by machine learning algorithms achieve better results than faculty promoted by the HR Committee. This paper also presents the benefits of using data science techniques in HR processes at business schools. Firstly, this technique leads to discovery of the actual decision processes that have taken place. Secondly, it allows to verify whether decisions are taken in line with internal procedures, or regardless of such procedures, and allows to verify their time consistency. Thirdly, such analysis provides good grounds for a transparent discussion about improvement of HR processes. Finally, modeling of HR decisions allows to create evidence-based policies and helps forging a learning organization culture. It is especially important in universities and business schools, given that human capital is of such strategic importance. We conclude that analyzing HR processes using data science tools should become part of the best practices, while also being reflected in the business schools accreditation standards.

Strategic exit interviewing: encouraging voice, enhancing alignment and examining process

PurposeTo maximize their effectiveness, exit interviews should incorporate employee voice and be aligned with other HR processes. The purpose of this paper is to describe a three-step approach to the strategic use of exit interviews.Design/methodology/approachThe current study synthesizes extant theory including that of employee voice to enhance the exit interview process. A qualitative study conducted within a large marketing research organization demonstrates how exit interviews that utilize employee voice can inform HR and organizational strategy.FindingsApplication of the proposed process to the case study revealed conditions, critical incidents, and cognitive processes underlying exit decisions for employees in several job categories. Qualitative exit information is used to describe corresponding employee withdrawal paths.Practical implicationsUse of the three-step exit interview process is expected to enhance HR decisions. Data gathered from the three-step process can be used by HR and organizational leaders to develop action plans as well as inform an organization’s strategic decisions.Originality/valueAn organizational example is presented in which insight into underlying causes of voluntary turnover are discovered through exit interviews. Exit interview information suggested interventions related to HR processes. Such targeted insights from exit interviews can greatly improve retention and enhance organizational effectiveness.

Paradoxical Relationships Between Cultural Norms of Particularism and Attitudes Toward Relational Favoritism: A Cultural Reflectivity Perspective

We examined how the cultural dimension of universalism–particularism influences managers’ attitudes toward relational favoritism (such as favoring friends or relatives in HR decisions). Paradoxically, we found in a survey study that Brazilian and Chinese managers perceived more negative consequences of relational favoritism than did American managers—even though the Brazilians and the Chinese perceived stronger particularistic cultural norms in their countries than Americans did in the United States. We attribute this pattern of results to “cultural reflexivity”—the ability of people from transforming economies to be culturally self-critical during a period of dramatic societal change. This pattern of results also emerged in a scenario study in which we asked these same Brazilian, Chinese, and American participants to assess managerial succession decisions made by a General Manager. We varied the scenarios so that the promoted manager was either a colleague with no pre-existing relation with the GM or a colleague who was a relative, a close friend, from the same town, or from the same school. Consistent with the results of the survey study, we found that perceived cultural norms of particularism were negatively related to perceptions of fairness. In other words, Brazilians and Chinese, even while living in more particularistic cultures, were more harsh in judging relational favoritism. We conclude with a discussion on the implications of these paradoxical relationships.

Hiring for Networks: Social Capital and Staffing Practices in Transitional China

This article investigates how firms’ use of social capital criteria in staffing practices has been affected by China's transitional institutional environment and explores the impacts of person‐job fit in the social capital dimension on employees’ performance. Empirical results show that non‐state‐owned enterprises set a higher social capital standard in the hiring process than state‐owned enterprises. Foreign‐invested enterprises outperform other firms in promoting a better match between individuals rich in social capital and the positions that need such resources. In places with intensive market competition, foreign and private enterprises pay even more attention to employees’ social capital when making HR decisions. Moreover, a better match between people and positions from a social capital aspect has a positive impact on employees’ performance. Theoretical and managerial implications are discussed. © 2015 Wiley Periodicals, Inc.

When is pay for performance related to employee creativity in the Chinese context? The role of guanxi HRM practice, trust in management, and intrinsic motivation

SummaryThis study aims to provide new insights into the reward–creativity link in the Chinese context by exploring the moderating effect of guanxi human resource management (HRM) practice—reflecting the extent to which HR decisions are influenced by personal relationships in an organization—on the relationship between pay for performance (PFP) and employee creativity. Using two independent samples that were composed of 222 and 216 supervisor–subordinate dyads from Mainland China and Taiwan, we found that the effect of pay for performance on creativity was invariantly moderated by perceived guanxi HRM practice in such a way that when guanxi HRM practice was low, PFP had stronger positive effects on creativity. Furthermore, trust in management, as reduced by guanxi HRM practice, mediated this moderating effect. Moreover, moderated path analysis revealed that intrinsic motivation mediated these moderated relationships among PFP, guanxi HRM practice, trust in management, and creativity. Findings shed light on the processes through which, and the conditions under which, PFP may promote creativity. Copyright © 2015 John Wiley & Sons, Ltd.

Organisational Ethics and HR Decision Making: Impact of „Best Practices‟ of Ethics Education and Training

The study is based on the responses of HR professionals of 313 large scale industries of Karnataka. This paper is the part of the research done by the researcher. HR decision-making is not easy in organisations when the matter is based on ethical dilemma. Different variables like organisational and individual characteristics, culture and climate, ethics education and training etc. have to be considered for effective decision-making. This paper highlights the importance of „best practices‟ of ethics education and training in the organisations for the better decision-making in the situations of ethical dilemma.

Candidate Screening for the Recruitment of Critical Research and Development Workers – A Report and Preliminary Results with Evidence from Experimental Data from German High-Tech Firms

The report focuses on resume-based screening strategies for the recruitment of highly qualified research and development (R&D) workers (critical R&D workers) in high-tech firms. We investigate which kinds of professional background, job-related experience, motivations, specific skills, and previous inventive activity make a candidate attractive for firms specializing in clean technology or mechanical elements. The report is based on a combination of survey and experimental data collected from 194 HR decision makers in German high-tech firms and from 89 technology experts in the clean technology and mechanical elements fields. A mixed logit model is used to analyse hiring preferences because this model allows us to deal with repeated choices. We find that HR decision makers prefer candidates with technology-specific patenting experience, an engineering background, analytical thinking skills, and a strong desire to develop path-breaking technologies. Furthermore, no one-size-fits-all candidate exists that is equally preferred in both technology fields. HR decision makers in mechanical element firms prefer specialists to generalists, whereas those in clean technology attach special importance to a candidate’s orientation towards environmental concerns and sustainability.

Stubborn traditionalism in HRM: Causes and consequences

We examine the widely-held view that “stubborn traditionalism” exists in HR, meaning that while the HR profession has progressed, its progress remains slow, and may not be sufficient to maintain effectiveness and relevance. The data on which the present study is based also showed little change in HR activities, skill satisfaction, strategic role and other features of HR over two decades (Lawler & Boudreau, 2012). This article examines two questions using cross-sectional analysis of our most recent survey of HR leaders. First we find that slow progress matters, because progress on HR functional features is related to important outcomes, including HR's role in strategy, effectiveness as a function, and organizational performance. Second, we explore one explanation for HR's stubborn traditionalism, in the organization's management approach. Our results suggest that the organization's management approach may indeed partially explain a lack of HR progress. The more organizations pursue a bureaucratic and low-cost-operator approach to management, the less their HR organization engages in advanced strategic activities, is satisfied with its HR skills, plays a strong strategic role, implements an HR decision science, and adds value to the organization. In contrast, the more organizations pursue high-involvement and sustainable approaches to management, the greater are these HR features.