ILR Impact Brief - Employee Attributions about HR Practices Lead to Customer Satisfaction

[Excerpt] The perceived reasons why management chooses a set of HR practices are linked to employee satisfaction, commitment, and on-the-job behavior. Employees individually make their own attributions about the purposes behind the practices, which are, in turn, associated with employees’ attitudes: a perception that management cares about service (or product) quality and employee well-being is associated with positive attitudes, but a sense that management is intent on cost cutting or employee exploitation is associated with negative attitudes. Furthermore, individual attitudes are shared within work units and in their aggregate are associated with “organizational citizenship behaviors;” i.e., group-level satisfaction and commitment are associated with intra-unit helping behaviors, which are linked to enhanced unit performance and customer satisfaction

Virtual HR Departments: Getting Out of the Middle

In this chapter, we explore the notion of virtual HR departments: a network-based organization built on partnerships and mediated by information technologies in order to be simultaneously strategic, flexible, cost-efficient, and service-oriented. We draw on experiences and initiatives at Merck Pharmaceuticals in order to show how information technology in establishing an infrastructure for virtual HR. Then, we present a model for mapping the architecture of HR activities that includes both internal and external sourcing options. We conclude by offering some recommendations for management practice as well as future research

The Goldilocks Effect of Strategic Human Resource Management? Optimizing the Benefits of a High-Performance Work System Through the Dual Alignment of Vertical and Horizontal Fit

Although vertical and horizontal fit in strategic human resource management are foundational to the links between a high-performance work system (HPWS) and organizational performance, little is known about how these two fits interact to affect organizational performance. We address this shortcoming while also advancing knowledge on each type of fit. We offer a more nuanced examination of vertical fit (which has typically been assessed with respect to organizations\u27 broad strategic types) by focusing on the alignment of an HPWS with an organization\u27s market entry timing mode—a key element of strategy. We propose that among organizations pursuing new product development, the effect of an HPWS on organizational performance is most positive under a fast-follower entry timing, followed by a first-mover and finally a fence-sitter entry timing. We then hypothesize that the benefit of vertical fit is magnified when the complementary human resources practices comprising an HPWS are implemented with greater internal consistency (or with similar intensities) across the ability, motivation, and opportunity domains—reflecting a positive interaction between vertical and horizontal fit in predicting the effectiveness of an HPWS. Analyses of four-wave nationally representative panel data yield strong support for our dual-alignment model of SHRM

An empirical examination of the mechanisms mediating between high performance work systems and the performance of Japanese organizations

The resource-based view of the firm and social exchange perspectives are invoked to hypothesize linkages among high-performance work systems, collective human capital, the degree of social exchange in an establishment, and establishment performance. The authors argue that high-performance work systems generate a high level of collective human capital and encourage a high degree of social exchange within an organization, and that these are positively related to the organization’s overall performance. On the basis of a sample of Japanese establishments, the results provide support for the existence of these mediating mechanisms through which high-performance work systems affect overall establishment performance

High-Performance Work Systems and Organizational Performance in Emerging Economies: Evidence from MNEs in Turkey

This study examines the association between the usage of high-performance work systems (HPWS) by subsidiaries of multinational enterprises (MNEs) in Turkey and employee and subsidiary level outcomes. The study is based on a survey of 148 MNE subsidiaries operating in Turkey. The results show that the usage of HPWS has a significant positive impact on employee effectiveness. However, their impact on employee skills and development, and organizational financial performance are far less clear. Our findings highlight the extent to which HWPS need to be adapted to take account of context-specific institutional realities. © 2014 Springer-Verlag Berlin Heidelberg

THROUGH THE LOOKING GLASS OF A SOCIAL SYSTEM: CROSS-LEVEL EFFECTS OF HIGH-PERFORMANCE WORK SYSTEMS ON EMPLOYEES' ATTITUDES

Drawing on emerging multilevel theorizing in human resources management, we tested a multilevel model of high-performance work systems (HPWS), using data obtained from 324 managers and 522 employees in 76 Japanese establishments. Results from cross-level analyses indicated that the relationships between establishment-level HPWS and employee job satisfaction and affective commitment were fully mediated by establishment-level concern for employees climate. These results shed new light on the mechanisms through which HPWS impacts employee outcomes and serve to bridge between macro and micro perspectives of human resource management. The research and practice implications of the findings are discussed