Leadership, human resource management and the content of the psychological contract

This paper argues that, in combination, management leadership styles (transactional versus relational) and human resource management practices (flexibility versus commitment) play an important role in formulating the orientation and content of the psychological contract. The paper presents a theoretical framework of how this occurs, drawing upon and integrating prior research to develop a typology of psychological contract obligations based on a two-by-two matrix, with leadership style and HRM systems on opposing axes. The resultant obligations are termed as partnership, paternalistic, market-based and dynamic. Implications are discussed from the viewpoint of both individuals and organizations. Crucially, the paper posits that a failure to match leadership styles and human resource (HR) practices may lead to mismatched expectations between employees and employers. This may have negative consequences for an organization’s performance as, under the psychological contract, a breach of perceived obligations to employees by employers can have consequences for employee attitudes and behaviors

High performance work systems, workforce productivity, and innovation: a comparison of MNCs and indigenous firms

Previous research has reported conflicting results on whether or not foreign-owned firms diverge from indigenous firms with respect to their human resource policies and practices. Set in the dynamic, globalized economy of the Republic of Ireland, this study examines the relative use of high performance work systems (HPWS) by foreign-owned versus Irish-owned firms. We also investigate the implications of HPWS use for organizational effectiveness. Results suggest substantial differences associated with country of ownership. Relative to Irish-owned firms, foreign-owned firms report higher HPWS utilization and higher rates of workforce productivity and innovation. Results suggest that the relationship between country of ownership and organizational effectiveness is mediated by the use of HPWS

Unions and the Adoption of High Performance Work Systems: Does Employment Security Play a Role?

This is the publisher's version, also available electronically from http://ilr.sagepub.com.Previous research on the association between unionization and the adoption of high performance work systems (HPWSs) has yielded inconsistent results. Using data from a 2004 multi-industry survey of firms operating in the Republic of Ireland, the authors examine the relationship between employee union membership rates and relative use of HPWSs. They also test arguments that employment security may affect the receptiveness of unions to such HR practices. The results indicate that as union representation increased, there was a significant decrease in the use of high performance work systems. Evidence also suggests that providing employment security significantly ameliorated this negative impact

How do high performance work systems influence organizational innovation in professional service firms?

Purpose - The aim of this paper is examine how a system of human resource management (HRM) practices, labelled high performance work systems (HPWS), influences organizational innovation in professional service firms (PSFs). In this study, innovation in PSFs is seen as an indicator of firm performance and is calculated as the revenue per person generated from new clients and new services respectively. Design/methodology/approach– Quantitative data was collected from 195 Managing Partners, HR Managers or experienced Partners in 120 Irish accounting firms. Hierarchical regression analysis was used to test the hypotheses. Findings - The analysis results indicate strong support for the mediating role of employees’ innovative work behaviours in the relationship between HPWS and two types of PSFs’ innovation performance. Practical implications - Managers need to effectively adopt and implement innovation-based HRM practices to encourage and support employees’ creative thinking and innovation. Through the adoption and utilization of these practices managers can enhance the firm’s innovation and its performance. Originality/value - This study contributes to our understanding of the link between HRM and firm innovation by explicating a pathway between these variables. This study also generalizes consistent findings on the HRM-firm innovation relationship to a different context, i.e. professional service firms

Top team trust, knowledge sharing and innovation

In the present research, we developed a causal model of organizational innovation incorporating the literature on top management teams (TMT) and knowledge-sharing in organizations. We hypothesized that top team composition and trust would predict organizational innovation through the mediating variables of task reflexivity and knowledge-sharing. We tested the model using data collected from thirty-five knowledge intensive firms in Ireland operating in the software industry. Results indicated that top team trust, knowledge-sharing and task reflexivity have both direct and indirect relationships with organizational innovation. Implications for research and practice are discussed

Performance management in context: formative cross-functional performance monitoring for improvement and the mediating role of relational coordination in hospitals

Recent research suggests that to fully realise its potential, performance management should be bespoke to the social context in which it operates. Here we analyse factors supporting the use of performance data for improvement. The study purposively examines a developmentally oriented performance management system with cross-functional goals. We suggest that these system characteristics are significant in interdependent work contexts, such as healthcare. We propose and test that (a) relational coordination helps employees work effectively to resolve issues identified through formative and cross-functional performance monitoring and (b) that this contributes to better outcomes for both employees and patients. Based on survey data from management and care providers across Irish acute hospitals, the study found that perceptions of relational coordination mediated the link between formative cross-functional performance monitoring and employee outcomes and partially mediated the link between formative cross-functional performance monitoring and patient care respectively. Our findings signal potential for a more contextually driven and interdependent approach to the alignment of management and human resource management practices. While relational coordination is important in healthcare, we also note potential to identify other social drivers supporting productive responses to performance monitoring in different contexts

Understanding the mechanisms of sustainable capitalism: The 4S model

Neo‐capitalistic approaches to value creation have sometimes developed a bad reputation in terms of sustainability and care for the environment. Yet, there are examples to the contrary emphasising a concern for sustainable capitalism. Our literature synthesis suggests that there is a lack of understanding of the sustainability mechanisms—ways of working helping companies to achieve their leadership in sustainability and maintain it over time. We contribute by addressing this deficiency and specifying four discrete mechanisms which we call the 4S model. Specifically, we apply this model to the cases of two leading exponents of sustainability—Unilever and Patagonia—to explain how companies can operate as forces to change business practice and improve sustainability having regard to people, planet, and profits

Partnership, high performance work systems and organizational effectiveness

Using data gathered from 132 organizations operating in Ireland, we examined the impact of high performance work systems (HPWS) and partnership on firm-level performance. Our results reveal that HPWS and partnership practices are positively associated with labour productivity, workplace innovation and negatively associated with voluntary turnover. More specifically, both HPWS and partnership are positively associated with labour productivity and employee retention, and the positive relationship between partnership and workplace innovation is mediated by HPWS

Revisiting the effect of emotional labor: a multi-level investigation in front-line service teams

The main purpose of this study is to consider individuals in teams and to reexamine how emotional labor affects the performance of front-line service team and team members through emotional exhaustion. Multi-source data collection and a time-lagged research design was adopted to collect data from matched team members and customers nested in 82 front-line service teams in a large electronics provider based in China. The findings show that surface acting increases emotional exhaustion which reduces customer loyalty at the team level and individual task performance at the individual level, supporting a full mediation model. While, deep acting is not associated with emotional exhaustion, it is positively linked with team member’s task performance. This study provides evidence for the nested nature of emotional labor and exhaustion in teams