Category Archives: Human Resources
HR practices, levels of commitment, and firm performance (Human Resource Management)
Performance-oriented human resource (HR) practices increase firm performance by increasing managerial affective commitment, according to research by Yaping Gong of the Hong Kong University of Science and Technology, Kenneth S. Law and Song Chang of the Chinese University of Hong Kong, & Katherine R. Xin of the International Institute for Management Development. In this study, the follo¬wing eight HR performance practices were categorized as either performance oriented or maintenance oriented: employment security, reduction of status distinctions, selective hiring, participation in decision making through teams, performance appraisal, comparatively high pay contingent on performance, extensive training, and career planning. Performance-oriented HR practices are aimed at developing, motivating, and effectively utilizing human resources, and six of the eight HR practices were categorized as such and are as follows: selective hiring, participation in decision making through teams, performance appraisal, comparatively high pay contingent on performance, extensive training, and career planning. The remaining two HR practices – employment security and reduction of status – were categorized as maintenance-oriented, and this type of HR practice is aimed at establishing employee security and equality.
After this categorization, the authors next investigated the impact of performance-oriented and maintenance-oriented HR practices on firm performance. In this study, indicators of firm performance were the firm president and vice presidents’ rankings on the following dimensions: profit, total sales growth, market share, total asset growth, after-tax return on total assets, after-tax return on total sales, and labor productivity. Results indicated that performance-oriented HR practices positively affected firm performance whereas maintenance-oriented HR practices did not. In taking this investigation one step further, the researchers sought out the mechanism by which the performance-oriented HR practices affected performance. In other words, they knew that A led to C, but they were unsure of what B was.
In line with the authors’ hypothesis, step B was related to managerial affective commitment – which refers to a manager’s emotional connection, involvement, and identification with the firm. In sum, the authors conclude that performance-oriented HR practices increase managerial affective commitment that in turn increases firm performance.
What Attracts Applicants Throughout the Recruiting Process?
Topic: Recruiting, Human Resources
Publication: Personnel Psychology (AUTUMN 2012)
Article: Recruiting through the stages: A meta-analytic test of predictors of applicant attraction at different stages of the recruiting process
Authors: K. L. Uggerslev, N. E., Fassina, and D. Kraichy
Reviewed By: Megan Leasher
In the competition for true talent, I often picture companies as robots donned in red or blue plastic, battling in a yellow ring to conquer and win the best of the best candidates. But my retro devotion to Rock’em Sock’em robots always reminds me that someone is controlling the levers. The moves of the Blue Bomber and the Red Rocker are really being choreographed by each company’s recruiters. Recruiters launch the battle, and candidates’ perceptions of the organization and its corresponding brand image must be considered throughout the process. If recruiters and organizations know what will keep applicants interested and continuing through the process, they have a better chance at getting the best talent on board. But what sorts of things matter to candidates? And do these things change as a function of the stage of the process?
That is exactly what the authors wanted to learn. They conducted a large-scale research study that analyzed the results across 232 studies investigating applicant reaction in recruiting. They looked at all phases of recruitment, including early stages in which applicants are generated, middle stages in which candidates are going through the hiring process but have not yet received an offer, and the final stage, in which candidates are presented a job offer and must make a final decision. They also investigated a number of characteristics that can impact applicant attraction, including characteristics of the job itself, characteristics of the organization, behaviors of recruiters, candidates’ perceptions of the steps in the hiring process, perceived fit with both the organization and the job, and others. Their ultimate goal was applause-worthy from a practical perspective: if they could isolate at which stage(s) each aspect of recruiting predicted applicant attraction most strongly, they can then advise organizations how to best build their hiring processes and allocate budgets to recruit the best candidates.
This study yielded a number of findings, three of which I choose to explore. First, the extent to which a candidate perceives that they “fit” with the organization and the job was found to be the strongest predictor of applicant attraction across all stages of recruitment. Organizations should actively work to cultivate perceptions of fit in talented candidates. A successful company should work to creatively tailor their hiring processes and/or provide feedback to strong candidates to demonstrate that they will be a good fit with their values, goals, and ideals. Instilling these sentiments both early on and throughout the hiring process is critical for retaining and eventually securing the best talent.
Second, recruiter behaviors (e.g. competence, personableness) were strong predictors of applicant attraction in the earlier parts of the process. This is likely before candidates have learned much about the job and/or organization. As the “face” of the organization in early stages, applicants make significant judgments based on how recruiters act, and these judgments will make them decide whether or not to proceed in the process. As such, it is in an organization’s best interest to allocate time and resources to bringing on personable, knowledgeable recruiters who can quickly connect with candidates. One bad recruiter has the power to leave a bad impression and turn away oodles of talent.
Lastly, organizational characteristics (e.g. work environment, image, size) were also strong predictors of applicant attraction, having a greater influence in the middle of the process. Once candidates are moving through the process and have started to gain knowledge about the company, this information matters much more than how recruiters act. It is interesting to note that job characteristics did not have as large of an impact. With so much lateral movement and internal promotions happening within organizations these days, an individual is likely to change jobs within an organization, thus placing a greater importance on overall organizational fit.
Recruitment often falls at the intersection of art and science; levers are pressed with calculated, precise movements that launch a choreography of performances. This research helps us better understand this intersection and how we should allocate resources accordingly.
human resource management, organizational industrial psychology, organizational management
source for picture: http://www.freedigitalphotos.net/images/Business_People_g201-Job_Interview_p66417.html
The Competitive Advantage Behind Investing in Employees (Human Resource Management)
Topic: Performance, Human Resources, Culture, Business Strategy
Publication: Journal of Applied Psychology (2012)
Article: Impact of High-Performance Work Systems on Individual- and Branch- Level Performance: Test of a Multilevel Model of Intermediate Linkages
Authors: Samuel Aryee, Fred O. Walumbwa, Emmanuel Y. M. Seidu, & Lilian E. Otaye
Reviewed By: Lauren A. Wood, M.S.
With the rapid growth of global competition and the speed with which competitors can imitate products and technology, organizations are turning to human capital to differentiate themselves. As such, researchers and practitioners have stressed the value that employees play in creating and sustaining an organization’s competitive edge. As a result, many organizations have implemented high-performance work systems (HPWS), which are HR programs closely linked to the goals and culture of the organization that are designed to develop employee skills and organizational commitment in order to create a self-sustaining competitive advantage.
With a sample of 37 branches of two banks, Aryee, Walumbwa, Seidu, and Otaye tested a model linking HPWSs and performance to individual-level (i.e., employee service) and unit-level (i.e., branch market) performance outcomes. They based the model on empowerment theory which centers on redesigning work to minimize top-down control and build in greater decision-making autonomy in lower rungs of the organizational ladder. In general, the model proposes that HPWS leads to greater empowerment, and more empowered employees lead to increased customer service and branch market performance.
The authors found that variables assessed at the individual level of analysis (experienced HPWPs, employee empowerment, and service orientation) and at the unit level (use of HPWPs, empowerment climate, and aggregated service performance) influenced both levels of performance outcomes (individual level: service performance; unit level: branch market performance). Specifically, at the unit level, they found that the greater the usage of HPWPs level led to stronger empowerment climate. And, at the individual level, employee service orientation impacted the relationship between employee empowerment and service performance. They also found that empowerment climate and employee reports of experienced HPWS (at least in part) impacted the effect of unit level HPWPs on individual level employee empowerment. Additionally, individual reports of empowerment partially mediated the effect of experienced HPWS and empowerment climate on service performance.
Taken together, organizations can benefit from designing HPWS based on the goals and culture of the company. The findings indicate that investing in employees pays off in increased individual level and unit level performance. Investing in people can be the key that differentiates your organization from the competition.
human resource management, organizational industrial psychology, organizational management
Should We Get Rid of the Managers? (Human Resources)
Topic: Human Resources
Publication: Harvard Business Review
Article: First let’s fire all the managers
Author: Gary Hamel
Reviewed by: Liz Brashier
There are some fundamental problems with top-heavy management. Managers spend excessive amount of time supervising employees’ work and add considerable overhead. A top-heavy management hierarchy also seems to encourage large-scale mistakes in decision making, with important decisions resting in the hands of few people at the top. In addition, a management hierarchy with multiple levels means wasted time when it comes to decision turnaround – actually getting anything done may require a dozen approvals.
In a recent article, Hamel (2011) investigates what can happen when we consider a large organization in which there are no managers, no titles, and compensation is decided by peers. To help illustrate how this ideal can actually be successful, we walk through the model employed at Morning Star, the largest tomato processor in the world.
At Morning Star, there are no managers. Employees discuss and divvy up responsibilities with peers. Everyone can spend company money. Morning Star’s model is based on the concept of self-management, which encourages greater initiative-taking, more expertise, a greater sense of collegiality, and stronger loyalty.
Hamel helps us to explore how we might implement elements of Morning Star’s model in our own organizations. We can start by have employees develop personal mission statements. We can work to expand employee autonomy. We must also work to erase the distinctions between managers and the managed, and work to increase manager accountability. It is important to note however, that not all organizations are suited to Morning Star’s model – it requires great care in the hiring process, a high level of responsibility from employees, and may make growth through acquisitions difficult. It is certainly interesting, however, to consider large organizations without multiple layers of management – and what that might mean for productivity and employee satisfaction.
Hamel, G. (2011). Let’s fire all the managers. Harvard Business Review, 89, 48-60.
human resource management,organizational industrial psychology, organizational management
source for picture: http://www.freedigitalphotos.net/images/search.php?search=pyramid&cat=
If you’re a mentor, be sure to fulfill obligations
Topic: Mentoring, Human Resources
Publication: Journal of Business and Psychology (in press)
Article: Mentoring and psychological contract breach
Authors: Haggard, D. L.
Reviewed by: Alexandra Rechlin
Having a mentor can lead to many positive outcomes for the protégé, but what kinds of negative outcomes might a mentor cause? Haggard (in press) investigated the effect that mentoring breach (when the protégé perceives that the mentor has not fulfilled his or her obligations as a mentor) has on psychological contract breach (when an individual feels that the employer has not fulfilled its obligations). Psychological contract breach (PCB) is related to many negative outcomes, such as reduced organizational commitment, job satisfaction, in-role performance, and organizational citizenship behaviors.
Haggard found that protégé reports of mentoring breach were positively related to PCB. Additionally, PCB mediated the relationship between mentoring breach and job satisfaction, and the relationship between mentoring breach and job commitment. In other words, mentoring breach indirectly leads to outcomes through PCB. The relationship between mentoring breach and PCB was moderated by the supervisory nature of the relationship (i.e., the relationship was stronger when the mentor was the supervisor). The relationship was not moderated by the formality of the relationship.
These findings suggest that it would be advantageous for an organization to provide training for its mentors. Haggard suggests that training could be used to establish mentors’ obligations and the boundaries to those obligations, explain the consequences of mentoring breach, and teach supervisors how their actions may be perceived by subordinates. This training ideally would be provided to all supervisors, as some may not realize that they are informal mentors.
human resource management,organizational industrial psychology, organizational management
Follow the Yellow Brick Road: the Path to the Understanding Interview Constructs
Topic: Interviewing, Selection, Human Resources
Publication: International Journal of Selection and Assessment (March, 2011)
Article: An Empirical Review of the Employment Interview Construct Literature
Author: Allen I. Huffcutt
Reviewed by: Jade L. Peters
It can be very easy to assume a structured interview is the best technique when interviewing. It can be easier to forget about what important constructs feed into an interview that makes the interviewers’ ratings change. Much of the Employment Interview literature only focuses on a narrow selection of important constructs. While this article addresses these critical constructs, it reviews and quantifies past literature to strongly support the ideas that both (a) important constructs are being ignored and (b) the structured interview is not error proof.
Like many reviews, a theoretical model was developed to solidify the already scattered literature of the construct related variance. Constructs refer to what is being measured, in this case during an interview. Essentially, the constructs being assessed can create a bias and effect the interviewers’ rating scores, which can accurate measurement of the construct. Job-Related Interview Content, Interviewee Performance, and Personal/Demographic Characteristics are three posits of the implied model that contribute to important constructs in employment interview ratings and represent a gap in the research that struggles to be filled. The structured interview in itself still deserves a fair amount of research, as do any construct used widely in practice.
Though the review was extensive and addressed knowledge summarized many times before, employment interview literature is still up and coming and deserves continued assessment with more critical constructs in mind.
Huffcutt, A.I. (2011). An empirical review of the employment interview construct literature. International Journal of Selection and Assessment, 19(1), 62-81.
human resource management,organizational industrial psychology, organizational management
Human Resources Selection: The Promise of Pareto-Optimal Selection Systems
Topic: Selection, Human Resources
Publication: Journal of Applied Psychology (SEP 2011)
Article: Designing Pareto-Optimal Selection Systems: Formalizing the Decisions Required for Selection System Development
Authors: De Corte, W., Sackett, P. R., & Lievens, F.
Reviewed By: Thaddeus Rada
Typically, when practitioners are designing a selection system, they are looking for ways to maximize the quality and diversity of the individuals hired. Meeting this goal can be challenging, and in confronting the dilemmas associated with this goal, practitioners looking to design the ideal selection system have a number of decisions to make. For instance, they must decide which predictors to use, whether low scores on one predictor can be balanced out by high scores on another predictor (that is, will the selection system be compensatory), and the sequence of administering the multiple predictors/screens. There are many considerations when making these decisions, including level of resources (e.g. time, money), and the characteristics of both the job and the applicant pool.
One way in which these considerations can be effectively accounted for is through the use of a Pareto-optimal selection system. This means the new solution is identified when no other solution is at least as good on all outcome criteria (predictive validity, impact to diversity) (“Pareto” or Parity/Equal) and has at least one outcome that is more favorable (“Optimal. De Corte and colleagues discuss a method by which selection systems can be electronically-generated and evaluated for use in a particular situation, in order to identify a system that most effectively balances the tradeoffs inherent in different systems (that is, a Pareto-optimal system).
Ideally, research on Pareto-optimal selection systems will continue, as their use can minimize adverse impact without sacrificing the quality of hires. In the meantime, practitioners should consider using the method that De Corte et al. suggest when designing a selection system. Doing so should result in the design of a selection system that maximizes oft-divergent, dual goals: a system that is both fair and effective.
human resource management,organizational industrial psychology, organizational management
I/O Psychology and Sports: The Do’s and Don’ts of Handling Stress.
Topic: Selection, Human Resources, Sports Psychology
Publication: The Sport Psychologist (2006)
Article: Stressors, Coping, and Coping Effectiveness Among Professional Rugby Union Players.
Authors: Nicholls, Adam R.; Holt, Nicholas L.; Polman, Remco C. J.; Bloomfield, Jonny
Reviewed By: Scott Charles Sitrin
10, 9, 8, 7; the clock ticks down in the final game and you are passed the ball. Make it, and your team is the champion. Miss it, and you have an off-season filled with regret and disappointment. From the field to the boardroom, stress exists. How do you handle it?
Adam Nicholls, Nicholas Holt, Remco Polman, and Jonny Bloomfield collaborated to investigate the coping strategies used by professional rugby players. Broadly speaking, there are two types of coping strategies, problem-focused and emotion-focused. A problem-focused coping strategy focuses on practical solutions to the stress-inducing situation. An emotion-focused coping strategy focuses on ameliorating the emotions (e.g., frustration, sadness) caused by the stress- inducing situation. In a 28-day diary, eight elite rugby players recorded their stressors, coping responses, and the efficacy of their coping strategies. It was found that the most frequently cited stressors were injury concerns, mental mistakes, and physical mistakes while the most effective coping strategies were problem-focused (e.g., focusing on the task, increasing effort).
Like the rugby players, do you also use problem-focused coping strategies before the big
meeting? Or do you kiss your lucky penny, cross your fingers, spin in circles three times, and hope for the best? It’s up to you. But considering that professional athletes focus on the task and increase effort when the heat is on, maybe you should too.
human resource management,organizational industrial psychology, organizational management
The Predictive Power of Grit: How to Select Successful People
Topic: Selection, Human Resources
Publication: Journal of Personality and Social Psychology (2007)
Article: Grit: Perseverance and passion for long-term goals
Authors: Angela L. Duckworth, Christopher Peterson, Michael D. Matthews, and Dennis R. Kelly
Reviewed By: Scott Charles Sitrin
Imagine that you are the head of Human Resources, and are tasked with hiring your Fortune 500 Company’s next CEO. You have narrowed the applicant pool down to 10 men and women who are smart (e.g., have high IQs), have previous experience (e.g., CEOs of other Fortune 500 Companies), and come with stellar letters of recommendation (e.g., amazingly, the Dali Lama has endorsed two, President Obama three others, and Warren Buffet one). How do you differentiate between these candidates, and select the individual that will successfully lead your company to the land of milk and honey? True grit.
Duckworth, Peterson, Mathews, and Kelly define grit as perseverance and passion for long-term goals. These investigators found that an individual’s level of grit affected performance in a variety of domains, including educational attainment, grade point average, military retention, and ranking in the National Spelling Bee. Six studies were performed. The first two explored the
relationship between levels of educational attainment and amount of grit among of nearly 3,000 adults; the third looked at grit and grade point averages of 139 undergraduates at an Ivy League College; the fourth and fifth investigated levels of grit and rates of retention of 1,218 West Point Undergraduates; and the sixth examined the relationship between grit and performance of 175 finalists in the 2005 Scripps National Spelling Bee. On average, grit accounted for 4% of the variance in success outcomes in the six studies.
These results suggest that an individual’s personality, and specifically their level of grit, will
affect their performance in academics, the military, and competitions. Grit’s predictive power does not appear to be domain specific, and though it was not shown to predict success among CEOs of Fortune 500 Companies, it seems likely that it could differentiate the great from the good. True grit.
human resource management,organizational industrial psychology, organizational management
Is Evidence-Based Management Actually Based on Evidence?
Topic: Evidence Based Management
Publication: Academy of Management Perspectives
Article: What’s the
evidence on evidence-based management? (NOV 2009)
Author: T. Reay, W. Berta, and M. K. Kohn
Reviewed by: Sarah Teague
In the last century, many significant advances have
been made in the study and application of Industrial/Organizational (I/O)
Psychology and Organizational Behavior (OB). Unfortunately, there remains a
substantial communication gap between researchers and practitioners. But research
and practice do not have to be mutually exclusive – as evidenced by this very
website!
One
approach that has been put forth in attempts to promote such collaboration is
that of Evidence-Based Management (EBMgt). This approach emphasizes the
importance of utilizing various sources of solid evidence in the process of
organizational decision-making (e.g., back decisions and actions with solid
evidence, rather than lore, biases, false assumptions, or a “that’s the way
we’ve always done things around here” mentality). While this is still a
relatively new concept, many in the community have begun to take note.
In
a recent literature review, Reay, Berta, and Kohn (2009) sought to assess the
quantity and quality of the existing evidence supporting evidence-based
management. This evidence was divided into six different levels according to
empirical quality ranging from an author’s opinion (Level 6 – weakest) to
large-scale studies involving a high degree of empirical rigor (Level 1 –
strongest). The majority of the literature fell into a very weak Level 5
categorization, and no studies were given the strongest rating of Level 1.
Further, none of the studies in their review addressed the question of whether
or not evidence-based management will actually improve organizational
performance. More research is needed in order to discuss the validity of such
practices.
The
results of the current review indicate that while the empirical quality of the
existing literature is certainly lacking, individual study findings suggest
promise for the EBMgt approach.. The authors convey optimism for the futureof EBMgt
research but echo the calls from other researchers (including Rousseau and
colleagues) for greater emphasis on knowledge transfer (KT; disseminating the
information gleaned from research to facilitate implementation in the workplace).
Accordingly, the authors of the current review provide suggestions to promote KT,
including placing more value on literature reviews and replication studies in
the research domain, teaching management students to value – but also critically
evaluate – evidence, and encouraging researchers to think practically about
their findings and practitioners to consider how their needs and experiences
might further research, all helping to bridge the science-practice gap.
We could think of evidence-based management
as a medication that has shown great potential in initial testing but needs
further trials to validate long-term use.
