Category Archives: *Human Resource Management
Boundaries to success: Conditions under which human resource practices do and do not increase performance of small firms
Previous research has demonstrated that human resource practices aimed at acquiring, training, retaining, and motivating a proficient workforce (e.g., high-investment human resource systems, high-performance work systems) increase firm performance 1. However, the research on the impact of human resource practices on firms with less than 100 employees is more sparse and less certain. In addressing this void in the literature, Clint Chadwick of the University of Kansas, Sean A. Way of Cornell University, Gerry Kerr of the University of Windsor, & James W. Thacker of the University of Windsor analyzed the human resource practices and performance of 96 for-profit, private-sector Canadian small firms from areas such as wholesale trade, manufacturing, and retail. To assess human resource practices, the authors surveyed managers about their human resource practices oriented toward acquiring talent (e.g., recruitment, screening, and selection), training talent, retaining talent (e.g., promotion from within and employee ownership), and motivating talent (e.g., employee ownership and performance-based pay). In order to determine firm performance, the ratio of firm sales to the number of employees was calculated.
Results indicated that systems of human resource practices impact the performance of small firms. Further, the conditions under which human resource practices affect firm performance were also identified. Specifically, systems of human resource practices have a positive impact on performance when the company has sufficient resources and a large amount of capital. Conversely, systems of human resource practices are counterproductive and have a negative impact when the company’s resources are stretched too thin, such as when they are pursuing a resource-intensive strategy to grow or differentiate.
Team Intimacy and Organizational Interventions: Emphasizing Team Cohesion May be More Effective (IO Psychology)
Topic: Teams, Development
Publication: Human Resource Management Review (JUN 2012)
Article: Too Close for Comfort? Distinguishing Between Team Intimacy and Team Cohesion
Authors: Rosh, L., Offermann, L. R., & Van Diest, R.
Reviewed By: Thaddeus Rada
Within IO psychology, research on teams has become increasingly important in recent years. As organizations have begun to use teams for a wider variety of roles and purposes, it has become necessary for both researchers and practitioners to gain a better understanding of how teams work and how they can be designed to operate most effectively. Two constructs that have received research attention in the realm of teams include team intimacy and team cohesion. Although these constructs may appear to be very similar from the outside, Lisa Rosh and colleagues argue that there are important differences between these constructs, and that they are best conceptualized as distinct constructs.
Rosh and her colleagues explored the literature surrounding group intimacy and group cohesion, noting that, although there are areas of overlap between the constructs (e.g. interpersonal attraction), there are also key differences between them. Specifically, group intimacy necessarily requires some level of group cohesion, while a group may have high levels of cohesion without the added elements (e.g. interpersonal affection) of intimacy.
The authors suggest that, to date, many team-building initiatives in organizations have been designed to foster team intimacy, not cohesion. Noting that the link between intimacy and team performance has not been well-established, the authors suggest that practitioners shift their focus towards team-building interventions that focus, not on intimacy, but rather on the “work-focused” purpose of the group, such as the group’s commitment to their task and the task-based collective efficacy of the group. However, the authors do not discount the importance of intimacy entirely; indeed, they note that group intimacy is likely to become more common as teams take on more and more sophisticated projects in organizations; as such, they argue that additional research and examination of group intimacy is needed so that practitioners will be equipped to address this component of life in teams.
human resource management, organizational industrial psychology, organizational management
Improve service climate to retain customers and increase profitability
Topic: Organizational Performance, Strategic HR
Publication: Human Resource Management (MAY/JUNE 2011)
Article: The service climate-firm performance chain: The role of customer retention
Authors: Towler, A., Lezotte, D. V., & Burke, M. J.
Reviewed by: Alexandra Rechlin
When an organization wants to improve customer retention and therefore its profitability, it will often turn to marketing. But could HR provide another option? In this study, Towler, Lezotte, and Burke (2011) tested a model of the way in which service climate (conceptualized and measured by concern for employees and concern for customers) affects profitability.
The authors hypothesized that showing concern for employees would lead to employees showing concern for customers, which in turn would lead to customer satisfaction. Satisfied customers are more likely to return, so customer satisfaction was predicted to lead to customer retention, which in turn was predicted to lead to store profitability. This model was tested using a huge sample of over 12,000 employees in 1,500 tire retail/vehicle service stores. The authors found full support for the model.
The results of this study indicate that if you want your employees to show concern for customers, you must first show concern for your employees. Their subsequent showing of concern for customers leads to more satisfied customers, who in turn become repeat customers, and that means profitability. Marketing therefore is not the only group that the organization should turn to for advice on customer retention – they should look to HR as well!
Trading Voice for Service: The Impact of Perceived Voice on Organizational Commitment During Periods of Change
Topic: Change Management, Organizational Commitment, Potential, Trust
Publication: Human Resource Management (JAN 2011)
Article: The influence of perceived employee voice on organizational commitment: An exchange perspective
Authors: E. Farndale, J. Van Ruiten, C. Kelliher, and V. Hope-Hailey
Reviewed By: Allison B. Siminovsky
Everyone likes to feel important on occasion, whether through achieving a major goal or being recognized for an accomplishment. The workplace is no exception to this rule, as employees like to feel as though their decisions impact the actions their organizations take. During major corporate change, leadership and culture can be shaken up dramatically and as a result, previous levels of perceived employee impact (“I make a difference”) might not remain intact. What benefits does an organization reap if employees feel they have a voice, and how is this impacted through the change process? This article attempts to answer these questions.
The researchers found that when employees perceive themselves as having impact on organizational decisions, they show higher levels of organizational commitment. This sense of voice is inferred through relationships with line managers and, to an even stronger extent, with senior management. Employees were found to react positively to organizational change when their perception of having voice was not compromised during this often tumultuous period.
The Waning Voices of Senior Employees: Does Tenure Reduce Impact Levels?
Topic: Potential, Staffing, Training, Turnover
Publication: Human Resource Management (JAN 2011)
Article: Does voice go flat? How tenure diminishes the impact of voice
Authors: D. Avery, P. McKay, D. Wilson, S. Volpone, and E. Killham
Reviewed By: Allison B. Siminovsky
In this line of research, voice refers to the ability to provide suggestions to the organization and feel that one’s input has some sort of effect. When little control is perceived, the employee will work hard to gain control and the use of voice is one possible means of achieving this goal. However, if an employee has been around for many years and feels his sense of control is compromised, to what extent does he continue to use his voice to impact the organization?
This study addressed this issue utilizing results from surveys of conducted with a variety of workers regarding their perceived voice opportunities at their organizations, their tenure, and their intentions to remain with their organizations. They found that, while any employee, regardless of tenure, values the opportunity to have his or her voice heard, newer employees are more likely to see these opportunities as a means of gaining power and control over their work environments. As more tenured members of the workforce do not feel such a need for control and have higher self-esteem related to the workplace, they do not rely on voice as strongly as do newer employees to gain power.
Increasing manager discretion? Better make sure they have some experience!
Topic: Organizational Performance
Publication: Human Resource Management (JAN 2011)
Article: Testing alternative predictions for the performance consequences of middle manager discretion
Authors: A. Caza
Reviewed By: Rebecca Eckart
Today’s organizations are simplifying their hierarchical structures in order to increase efficiency, responsiveness, innovation, and knowledge sharing. In fact, flatter organizations are thought to be associated with a number of advantageous outcomes, one of which includes increased manager discretion. Discretion is defined as the manager’s authority to act, manage, and make decisions in ways that he/she deems most appropriate for the organization.
A core element of flat organizations is the shifting of responsibility and accountability down the hierarchy to lower levels of management. This shift is meant to empower managers to use their own judgment to make decisions that they deem most beneficial to the organization. However, until recently, little research has examined the actual tangible benefits that organizations should receive from increased manager discretion. In a recent study, Caza (2011) examined the effects of perceived managerial discretion on organizational performance. The results suggest that perceived managerial discretion is associated with increased unit performance, but only when managers have the experience to effectively use the increased discretion.
Thinking About Downsizing? Read This First!
Topic: Wellness, Work Environment
Publication: Human Resource Management (JAN 2011)
Article: The effects of downsizing on labor productivity, the value of showing consideration for employees’ morale and welfare in high-performance work systems
Authors: R.D. Iverson, C.D. Zatzick
Reviewed By: Rebecca Eckart
As economic conditions weaken, downsizing has become an increased reality for many organizations. Typically aimed at decreasing operational costs, often downsizing has the unintended consequence of also lowering employee productivity and morale.
To harness costs and increase efficiency, an increasing number of organizations are adopting High -Performance Work Systems (HPWS).These are typically defined by multiple separate but interconnected human resource practices aimed at increasing employee commitment, skills, and productivity. Examples include such practices as selective hiring, information sharing, job design, employee participation, and HR planning. HPWS center on encouraging and motivating employees to use their enhanced skills and knowledge to increase individual productivity and thus aid in the accomplishment of organizational goals.
HPWS are often a significantly large resource and cost expense for organizations, leading researchers to investigate HPWS in the context of downsizing. Iverson and Zatzick (2011) report that organizations with HPWS have lower levels of productivity following downsizing, but this relationship is more pronounced for those that give little consideration to employees’ morale and well-being during the process.
Have innovative ideas that need implementing? Increase job embeddedness of mid- to late- career stage employees.
Topic: Performance
Publication: Human Resource Management (NOV-DEC, 2010)
Article: The impact of job embeddedness on innovation-related behaviors
Authors: T.W.H. Ng, D.C. Feldman
Reviewed By: Rebecca Eckart
In recent years, organizations have faced increased pressures to continually be innovative in order to survive in a competitive marketplace. New work by Ng and Feldman (2010) suggests that job embeddedness could be a potential strategy to bolster innovative behaviors by employees. Job embeddedness attempts to explain how employee fit (organization-employee match), links (personal relationships at work), and sacrifice (loss of rewards and benefits if turnover) keep employees with their current organizations even when other opportunities are available. Research consistently shows that highly embedded employees are increasingly motivated to perform well in their jobs because they feel committed and invested in the success of the organization. But are highly embedded employees also more likely to engage in innovative-related behaviors and is this consistent across all employees?
In short, the answer is yes. Highly embedded employees are more apt to engage in innovation-related behaviors. However, while they are not more likely to generate innovative ideas, they are more inclined to spread the innovative ideas throughout the organization and actually implement the ideas. But wait; before you run to implement new policies, the current article also suggests that this trend is not consistent across all employees. In fact, those highly embedded employees in their mid- to late-career stages are significantly more likely to spread and implement innovative ideas than those early in their career.
The Business Case: Benefits of Diversity Management Beyond High-Performance Work Systems
Topic: Diversity
Publication: Human Resource Management (NOV/DEC 2010)
Article: The Impact Of Diversity And Equality Management On Firm Performance: Beyond High Performance Work Systems
Authors: C. Armstrong, P. C. Flood, J. P. Guthrie, W. Liu, S. Maccurtain, and T. Mkamwa
Reviewed By: Kerrin George
“What I need is the data, the evidence that diverse groups do better.” Organizations may recognize the consequences of workplace discrimination, but when it comes to diversity management (e.g., practices that emphasize differences among employees as an asset if managed effectively), organizations need more convincing that the benefits will outweigh the costs.
The advantages of high performance work systems (HPWS; i.e., integrated recruitment, selection, performance management, training and development practices) have robust effects on organizational performance beyond individual human resource practices. However, effective diversity management is often considered a primary characteristic of high performing organizations. Armstrong and colleagues (2010) investigated whether diversity and equality management systems (DEMS, e.g., diversity training, ensuring equal pay and promotion across all groups) would have additional benefits for organizational performance. They found support that organizations that used HPWS had increased firm performance; however, those organizations that used DEMS or a combination of both systems demonstrated additional gains, such as increased productivity and innovation, and less voluntary turnover.
How Might Trainers Be Contributing to the Transfer Problem?
Topic: Training
Publication: Human Resource Management (JUL/AUG 2010)
Article: A missing link in the transfer problem? Examining how trainers learn about training transfer
Authors: H.M. Hutchins, L.A. Burke, and A.M. Berthelsen
Reviewed By: Benjamin Granger
There are many reasons why employees often don’t transfer their training to the job. At a high level, these reasons can include personal attributes of learners, characteristics of the work environment, and the level of supervisory support. Hutchins et al. note, however, that trainers themselves play an important role in determining if employees transfer what they learn on the job. These authors speculate that the ways trainers learn about transfer may be a possible contributor to the transfer problem?
Hutchins et al. surveyed 139 members of the American Society of Training and Development (ASTD) about their preferred methods of learning about training transfer. According to their results, training practitioners tend to use informal methods to learn about training transfer (e.g., learn through experience on the job, talk with other training professionals, search relevant websites, etc.). A relatively smaller percentage of professional trainers reported using more formal approaches such as attending conferences and practice-based and academic courses. However, the practitioners surveyed reported preferring more formal approaches due partly to their credibility.
Training practitioners also reported learning about training practices by reading the practitioner-based training publications such as Training and Training and Development (T+D).
