Strategic Human Resource Management Practices Research Articles

Impact of the strategic human resource management on organizational performance: evidence from Turkey

The strategic importance of human resources (HR) and their contribution to the organizational performance are receiving increasing recognition worldwide. In this study, we examined strategic human resource management (SHRM) and HR practices in Turkey to assess the impact of these practices on financial/market performance, operational performance, job satisfaction, and turnover. Empirical results from a sample of Turkey's Top 500 firms-2007 demonstrate that SHRM and selection/development practices have direct and positive effects on financial/market performance and operational performance. However, only selection/development practices are found to have a positive effect on turnover.

Strategic Human Resources Management in Nonprofit Organizations

This study explores the prevalence of strategic human resources management (HRM) practices in nonprofit organizations as well as the organizational and contextual determinants. Based on survey data collected from 229 charitable nonprofit organizations, we find that organizations that are larger in size, technologically savvy, and dependent on the work of independent contractors all appear to be more likely to implement strategic HRM practices. Local affiliates of national organizations are more likely to implement strategic HRM practices. In addition, younger organizations, educational organizations, and organizations that do not have dedicated HR staff are also more likely to implement strategic HRM practices. Although dependence on volunteer labor has no significant effect on the outcome, further analysis indicates that volunteer-dependent organizations differ from others in several aspects of strategic HRM.

The Adoption of Strategic Human Resource Management Practices in Commercial Banks: The Process and Challenges in Kenya

Developing an effective human resource system that is compatible with organizational strategy is critical for the functioning and success of an organization in the competitive business arena. The main objectives of the study were to establish the extent of adoption of strategic human resource management practices among commercial banks in Kenya; and to determine the factors that influence adoption of strategic human resource management practices by commercial banks in Kenya. The research questions were systematically generated from the objectives. In the data analysis, descriptive statistics and factor analysis were used to help draw comparisons and conclusions based on the results. It was assumed in the data analysis that the results obtained were quite representative for the general population considering the sampled size. The conclusions of the study are based on the research questions leading to the main purpose of the study. First, a number of human resource practices can be used as strategic weapons for organization to remain competitive. The key strategic resources management practices can be broken into two components. The first component is post-entry/ on-the-job strategic human resources management practices, which include the implementation of chosen human resources management strategy. The second component is pre-entry strategic human resources management practices, which include the recognition of the individual roles of employees before they are employed, keen selection and development. Secondly, the factors that have discouraged the adoption of strategic human resource management practices by commercial banks in Kenya can be broken into three components. The first component is poor communication and decision making process, which include failure of union representatives and managers to meet often to discuss concerns and cooperate in finding solutions to human resources issues. The second component is poor planning on HR issues, which include the failure to cover employees by a non-traditional incentive pay plan which applies across shifts of workers. The third component is on poor job orientations which includes lack of extensive efforts to set clear expectations about required work behaviors of the new workers.

Bleak house or bright prospect?: HRM in Australian SMEs over 1998-2008

The aim of this paper is to determine whether Australian small and medium enterprises (SMEs) could be described as 'bleak houses' or whether they have developed over the last decade into 'bright prospects' typified by human resource innovations. This study builds on empirical work (n = 1425) from ten years ago (1998), and re-examines the prospects of SMEs through the lens of human resource management (HRM) practices. Uniquely, the 2008 cross-sectional data provides for the large-scale tracking of strategic HRM practices. Specifically, 110 HRM practices over five traditional areas across 1230 SMEs are analysed. The prevalence, change, and patterning of HRM practices used by Australian SMEs in 2008 are investigated. It was found that SMEs need less of a make-over in relation to the adoption of HR practices, compared to a decade ago. From a practitioner viewpoint, the study provides cross-sectional benchmarking against the previous time-point, 1998, as well as extending that work with an examination of a more extensive range of new and emerging HRM practices.

Strategic human resource management practices: effect on performance

PurposeStrategic human resource management (SHRM) practices are used by large foreign multinational companies to improve their performance. The purpose of this paper is to establish the direct or indirect relationship between SHRM practices and firm performance.Design/methodology/approachSHRM practices are conceptualized as independent variables measured through a bundle of distinct practices. Organizational performance as a dependent variable is measured using constructs of image, interpersonal relations, and product quality. The model is tested with data from 50 large foreign multinational companies operating in Kenya.FindingsResults of this paper show that the SHRM practices that best predict firm performance are training and development and compensation systems. The relationship between the use of SHRM practices and firm performance does not hold across the five bundles of what are considered as “high performance work practices”. This paper also assumes that the relationship between SHRM practices and firm performance is indirect through motivation.Research limitations/implicationsCross‐sectional data from 50 large manufacturing companies in Kenya are used, and it would be interesting to test this model for more industries and countries.Practical implicationsResults of this paper have shown that the SHRM practices that best predict firm performance are training and development and compensation systems.Originality/valueTo the best of the author's knowledge, this is the first large‐scale empirical paper of the influence of SHRM practices on firm performance, using data from large foreign manufacturing companies operating in Kenya.

Cognitive styles and person–environment fit: Investigating the consequences of cognitive (mis)fit

There is currently considerable interest in the key elements of person–environment fit to understand vocational behaviour and to develop strategic human resource management practices. In the light of this interest, we wanted to investigate (1) whether people within similar functions have similar cognitive styles, and (2) what the consequences of cognitive (mis)fit are on three work attitudes, using two large-scale databases (N = 24,267 and N = 2,182). We identified a knowing-oriented cognitive climate in finance, information technology (IT), and research and development (R&D) functions; a planning-oriented cognitive climate in administrative and technical and production functions; and a creating-oriented cognitive climate in sales and marketing functions and general management. Furthermore, we found that the relationship between people's cognitive styles and work attitudes (i.e., job satisfaction, job search behaviour, and intention to leave) does not depend on the cognitive climate in which they work. However, we did find that people with a higher creating style on average score higher on intention to leave and job search behaviour in comparison with people who score lower on the creating style, irrespective of the cognitive climate they are working in. The cognitive climate also partially affects job satisfaction and intention to leave after controlling for cognitive styles. In summary, cognitive styles and cognitive climate seem to have separate influences on people's work attitudes. Our findings are relevant for selection and recruitment policies of organizations and in the context of training, job design, and workforce planning.

Investigating the use of strategic human resource management in French small and medium-sized enterprises: Longitudinal study

In the present study, we attempt to understand the position of strategic human resources management in the small and medium-sized enterprises (SME) in France. The aim of this research is double. Firstly, to respond to the calls of several authors to multiply HRM studies in SME. Secondly, to enrich our knowledge about SHRM in another context than North America and large companies, most often studied. This research took the form of a dynamic analysis based on longitudinal data of 388 French SMEs. The results show a progression of strategic HRM practices and a regression of administrative HRM practices. This important result shows that SME can also adopt flexible HRM practices.

High Performance Work Systems in the Intellectual Disability Care Sector in Ireland; an Exploratory Study at Organisational Level

There is a growing appreciation in the healthcare field of the importance of complementing physician expertise with more effective organisational processes and procedures (Flood 1994). Gowen et al (2006) suggest that Strategic Human Resource Management (SHRM) can effectively address hospital errors in tandem with quality management processes and procedures. To date, there is a growing wealth of research investigating how SHRM practices can increase organisational performance and competitiveness in the private sector. Unfortunately, this is not true of the healthcare sector, or indeed the Intellectual Disability Care (IDC) Sector where there remains a dearth of research addressing the linkages between HRM and organisational effectiveness. The purpose of this paper is two fold. Firstly, the paper will examine the literature investigating SHRM in healthcare, with reference to the IDC Sector where possible, focussing specifically on High Performance Work Systems (HPWS). Secondly, the paper will focus on how far HPWS have expanded in the sector at an organisational level from a management perspective. A postal questionnaire was chosen as the means of gathering this information. One questionnaire was sent to the human resource manager in each IDC centre in Ireland. The findings provide us with some important insights into the differential utilisation of the components of HPWS across the sector. The areas of HPWS in which the centres achieved the highest score were service user focus and teamwork. The area scored least favourably was communication between management and employees.

Factors Influencing Job Satisfaction in Transitional Economies

Job satisfaction is an historically popular variable in studies of vocational psychology. Employees' encounters with aspects of the work environment, such as work-related stressors and the nature of work tasks can influence their satisfaction. Research presented in this paper indicates the existence of a personal or dispositional component to job satisfaction, especially in a work environment that has been affected by the transition process in East Europe. During this time most public companies were privatised and as a result, have adopted downsizing strategies. In the post-downsizing era, applying appropriate human resource management practices to motivate employees and to regain their trust is a critical issue to increase job satisfaction that can lead to higher work performances. The findings of the research presented in this paper provide important implications for both the research field and practical management of human resource development, employee motivation and strategic HRM practices.

Management strategies in the Czech telecommunications sector: a comparative study of Český Telecom and T-Mobile

This article compares employment relations (ER) strategies at the incumbent fixed line Czech telecommunications company (TelCo), Český Telecom (ČT), and the T-Mobile subsidiary, T-Mobile Czech Republic (TMCZ). It considers the extent to which the firms were able to introduce Western-style HRM practices within the context of three changing dynamics. First, the collapse of communism in the former Czechoslovakia was followed by rapid economic liberalization and privatization in the Czech Republic. Second, telecommunications sectors worldwide were subject to deregulation and the rapid diffusion of new technologies. Third, fixed line and mobile TelCos were subject to differing challenges and opportunities. The article uses path dependency, institutionalist and strategic human resource management (SHRM) related theories to assist in this analysis. It concludes that by 2005 the introduction of Western-style HRM practices into the Czech telecommunications sector appeared less constrained by former institutional and historical constraints. TMCZ's ER policies were further influenced by its parent firm's transnational strategies that sought to coordinate better its subsidiaries and create a ‘global’ brand. Despite the differing circumstances of the fixed line and mobile sectors, by 2005 ER practices and strategies at the two firms were to an extent converging, as ČT continued to cut costs and TMCZ adjusted its strategies to better accommodate a saturated market. Given these changes the article postulates that the Czech telecommunications sector has now shifted towards a mature transformation stage, as ER strategies increasingly reflect Western-based SHRM practices and concepts.

The impact of bundles of strategic human resource management practices on the performance of European firms

The relationship between HRM practices and perceived firm performance was analysed in 3,281 firms located in European Union countries using data derived from the Cranet data set. A factor analysis of 80 different HRM practices resulted in 15 bundles of HRM practices which were then further categorized as being either ‘calculative’, ‘collaborative’ or ‘intermediary’. While controlling for contingency factors, firm strategy, firm size, market conditions and degree of unionization, as well as controlling for industry and country, the resulting analysis indicates that while five of the six calculative practices and two of the three intermediary practices have a significant impact on performance none of the six collaborative practices has. Significantly it was further noted that the overall effect of HRM on performance was relatively modest.

A model to explore the mystery between organizations' downsizing strategies and firm performance

PurposeDownsizing in organizations is a popular management strategy. However, in the field of organization change, the question of whether downsizing practices eventually improve performance is frequently asked and is never satisfactorily answered. The consequences have not always materialized over these years. On the negative side, downsizing harms employees, their families, and at the same time causes social chaos. The possible answers could be the ignorance of some important mechanisms between them. The paper aims to explain this issue.Design/methodology/approachThe paper applies the dynamic strategy capabilities concept from the strategy research field and strategic human resource management (SHRM) practices concept from the SHRM research field.FindingsA consolidated model is established to explain the relationships among these variables.Originality/valueThe model is expected to provide significant implications for thought leaders to reflect on the topics regarding organizations' changes, firm's strategies and SHRM system and social issues.

How Executive SHRM System Links to Firm Performance: The Perspectives of Upper Echelon and Competitive Dynamics†

This study adopts the upper echelon and competitive dynamics perspectives to investigate the mechanisms by which strategic human resource management (SHRM) can create a competitive advantage for a firm. Top management team (TMT) social integration and action aggressiveness are identified as internal-oriented and external-oriented capabilities, respectively, for a teamwork-oriented executive SHRM system to support in enhancing firm performance. Structural equation modeling is performed to test hypothesized relationships. Statistical results demonstrate TMT social integration and action aggressiveness in sequence partially mediate the relationship of an executive SHRM system and firm performance. Action aggressiveness partially mediates the relationship of TMT social integration and firm performance. This study provides further insights into the SHRM, upper echelon, and competitive dynamics perspectives. The research findings also serve to remind top executives to remain alert in developing a set of teamwork-focused executive SHRM practices, building an integrated team, and proactively shaping competitive actions to outperform rivals.

Strategic Human Rfesource Management in Indian it Companies: Development and Validation of a Scale

In this paper, we have studied the range of Strategic Human Resource Management (SHRM) practices prevalent in the Indian IT industry through content analysis of the Chairperson's speech and Directors' report in the annual reports of 100 IT companies. A scale for strategic human resource practices is developed based on the literature and the SHRM practices prevalent in the Indian industries. This scale was then used to study the extent of SHRM in 100 IT companies. Factor analysis yielded three key facets of SHRM- Employee Growth, Performance Management and HR metrics. Performance Management is significantly correlated with the firm's market performance measured by Tobin's q.

Strategic human resource management, firm performance, and employee relations climate in China

AbstractWe examined strategic human resource management (SHRM) and human resource practices in the People's Republic of China to assess the impact of these practices on firm performance and the employee relations climate. We also tested whether firm ownership moderates the above relationships. Empirical results from a sample of Chinese firms from various industries and regions showed that the levels of adoption of SHRM and HR practices were lower in state‐owned enterprises (SOEs) than in foreign‐invested enterprises (FIEs) and privately owned enterprises (POEs). Both SHRM and HR practices were found to have direct and positive effects on financial performance, operational performance, and the employee relations climate. However, the moderating effect of ownership type was significant for financial performance only. © 2008 Wiley Periodicals, Inc.

Strategic HRM practices and their impact on company performance in Chinese enterprises

AbstractThis study examined the factorial validity of strategic human resource management practices and their effects on company performance in a sample of 465 Chinese enterprises. Data were collected through two questionnaire surveys among general managers and HRM directors on product/service performance of their companies and a range of strategic HRM practices. Our findings indicate that a valid set of strategic HRM practices (training, participation, results‐oriented appraisals, and internal career opportunities) affect both product/service performance and financial performance. Employment security and job descriptions contribute uniquely to product/service performance, whereas profit sharing contributes uniquely to financial performance. © 2008 Wiley Periodicals, Inc.

Strategic people management of coal mining firms in Central Queensland

PurposeThis paper aims to propose a conceptual framework to explore the link between strategic human resource management (SHRM) and firm performance of the coal mining companies in Central Queensland (CQ), Australia.Design/methodology/approachThe paper reviews literature relating to the process and issues of transforming human resource practices and industrial relations of the coal industry in Australia for the past decade. Theoretical development and empirical studies on the SHRM‐performance linkage are discussed. Based on the literature review, the paper develops an integrated model for testing the relationship between SHRM and firm performance in the context of CQ's coalmines and proposes a number of research propositions.FindingsThree perceivable outcomes are likely derived from application of this framework in the field. First, a testing of the linkage between strategic HRM and firm performance in the coal industry, using an integrated approach, would complement the empirical deficiency of treatments on the prior SHRM models. Second, data at firm level could be collected to develop a better understanding of how the adoption of strategic HRM practices in coal companies can affect firm performance. Third, the extent of flexibility practices, use of contractors and associated management practices could be identified.Originality/valueThe coal industry is central to economic development of regional Queensland. The industry contributes substantially to GDP via employment, investment and product export. An exploration of the impact of SHRM on the coal industry will likely result in identifying some best practices that could be potentially adopted in the wider business community to foster regional economic development in Australia and worldwide.

The effect of SHRM practices on perceived firm financial performance: Some initial evidence from Australia

Since its emergence, strategic human resource management (SHRM) has been the focus of debate over whether it exists in reality or is merely rhetoric. SHRM is often measured by the integration of the HR function in the strategic management process, the devolvement of HR practices to line managers, and the influence of these practices on firm performance. Our survey research findings indicate that strategic integration and devolvement of HRM were practised to a moderate extent in the firms sampled, and the degree of alignment of HRM with business objectives and strategies had a positive relationship with perceived firm financial performance.

A study on motivating employees’ learning commitment in the post-downsizing era: Job satisfaction perspective

From the resource-based perspective, organization learning is the foundation of firms creating their special resources and thereby increasing their competitive advantage. Organization learning is indeed derived from individual learning within the organization. However, many firms have adopted downsizing strategies to reduce the redundancy. Nevertheless, it had a great impact both on laid-off employees and remaining ones. The remaining employees lost their trust, loyalty toward the firm and eventually left. The consequence not only affected the firms’ daily operation but also impacted employees’ learning motivation for improving their ability to enhance the firm's competitive advantage. In the post-downsizing era, applying appropriate human resource management practices to motivate employees would be a critical issue. The study began with two psychological constructs: job satisfaction and learning commitment to explore the content of job satisfaction which significantly influenced remaining employees’ learning commitment. The study used both qualitative and quantitative methods to collect and analyze the data. The results revealed that the two criterion in job satisfaction “the relationship with colleagues” and “the relationship with the family” significantly influenced employees’ learning commitment. However, this was clearly different from managers’ subjective expectation. The findings provide important implications for both the research field and practical management of downsizing, employee motivation, cross-culture management and strategic HRM practices.

The impact of M&A experience on strategic HRM practices and organisational effectiveness: evidence from Greek firms

Experience with mergers and acquisitions makes companies develop practices that enable them to handle the process more effectively. This study examines the practices that successful companies, with acquisition experience, adopt when managing their personnel. We examine strategic Human Resource (HR) practices that differentiate top‐performing from non‐top performing companies, using the 1999 Cranet data. Increased HR involvement in strategic decisions, formalisation of HR practices, building organisational capability through training and development activities, line management devolvement and internal labour market opportunities are the main strategic HR practices adopted by successful companies.