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HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS. Prof. Karin Sanders Organizational Psychology University Twente; the Netherlands. Management & HRM so far: emphasis on content From content to perceptions

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HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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  1. HUMAN RESOURCE MANAGEMENT:FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS Prof. Karin SandersOrganizational Psychology University Twente; the Netherlands Prof Karin Sanders

  2. Management & HRM so far: emphasis on content From content to perceptions Technical organizations in the Netherlands & Germany Technology & Investment (2010) Introduction Strength of HRM system (Bowen & Ostroff, 2004) Hospitals in the Netherlands Personnel Review, 2008 Hotels in China, IJ of HRM, 2010 Human Resource Management: From content to perceptions Prof Karin Sanders

  3. HRM so far: emphasis on content From content to perceptions Technical organizational in the Netherlands & Germany Introduction Strength of HRM system (Bowen & Ostroff, 2004) Hospitals in the Netherlands Hotels in China Human Resource Management: From content to perceptions Feel free to ask any question Prof Karin Sanders

  4. Management approaches (background) Wish that employees put as much energy and time in the job as possible (core problem within organizations) • Control model versus commitment model • Khatri, N., Baveja, A., Boren, S.A., Mammo, A. (2004) Medical errors and Quality of care: From Control to Commitment. California Management Review. • Employee-organization relationship (EOR) • Tsui & Wang (2002); Tsui, Pearce, Porter & Tripoli (1997); Zhang, Tsui, Song, Li & Jia (2008) Prof Karin Sanders

  5. Management approaches (background) • Control model versus commitment model • Control: human beings are not capable of self discipline; are lazy; so; money is important incentives (Taylor) • Commitment: human beings capable of self discipline; can be committed, trust (Human relations model) • Employee-organization relationship (EOR) • The formal and informal, the economic, social and psychological connection between an employee and his or her employer : mutual investment, quasi spot contract Prof Karin Sanders

  6. In sum, important of employers! • Yet … who is the employer; supervisor; leader: • Matrix structure: more supervisors • More levels • Dean, Director of the research institute; Director of psychology program, Head HRM, Board of the University, Ministry ….. • Conflicts between different supervisors • Who is the other party in the EOR? • What’s the idea/perception of the employees? Prof Karin Sanders

  7. Human Resource Management What is Human Resource Management? “Total of all activities within an organization related to the management of work and people” (Boxall & Purcell, 2008) (Recruitment & selection, Pay for Performance, Performance Appraisal, Training) Personnel & Organizations; HR; HRM; HRD More than the HRM department only Supervisors (devolution; ‘transfer-to-line’) Assumption: HRM is instrumental in Management / EOR approaches (HR Practices) Prof Karin Sanders

  8. Management - HRM - Employees Senior Management / EOR HRM ; Supervisors (HR Practices) Employees Prof Karin Sanders

  9. Human Resource Management: content Three HRM approaches (Delery & Doty, 1996): Universalistic: “best practices” Contingency: aligned with strategy of the organization Configurational: aligned with internal and external circumstances of the organization Prof Karin Sanders

  10. HRM “Best practices” High Commitment / High involvement HRM High commitment HRM: Focus on commitment of employees High involvement HRM: Focus on participation / involvement of employees Research so far: positive effects; but ….. conflicts of interests (employer; employee); difficulties in keeping the balance (expensive) Prof Karin Sanders

  11. Contingency and configurational approach: content • Baron & Kreps, (1999) • Five factor model: • 1. environment, • 2. employees, • 3. strategy, • 4. culture, • 5. organization of processes • Alignment of HRM Prof Karin Sanders

  12. Human Resource Management: content Environment Strategy Performance Characteristics within organization Prof Karin Sanders Prof. dr. Karin; April 2009

  13. Human Resource Management Strategy Performance attitude & behavior employees Prof Karin Sanders Prof. dr. Karin; April 2009

  14. Human Resource Management Strategy Performance HRM attitude & behavior employees Prof Karin Sanders Prof. dr. Karin; April 2009

  15. Human Resource Management Strategy Performance HRM attitude & behavior employees linemanagers Prof Karin Sanders Prof. dr. Karin; April 2009

  16. Alignment • HRM practices should be aligned with the environment, and characteristics of the organization (employees, culture, strategy, and organization of processes) • How? • Research so far: • Not clear, difficulties: causality; cross sectional research, a lot of mediating effects, a great number of organizations needed ….. Management perspective!! Prof Karin Sanders

  17. Employees? • Completely neglected? • From content to perception and satisfaction of employees • Psychology: • people perceive the same environment differently • perception drives behavior • more attention should be paid to perception Prof Karin Sanders

  18. How to support Innovative Behavior? Sanders, K., Moorkamp, M., Torka, N., Groeneveld, S, & Groeneveld, C. (2010) How to support Innovative Behaviour. The Role of LMX and Satisfaction with HR Practices. Technology and Investment, 1, 41-50. Importance of innovative behavior (idea generation, idea promotion, & idea realization) • Leader-Member- Exchange (LMX) • Satisfaction with HR Practices Hypotheses: LMX (H1) and Satisfaction with HR Practices (H2) positively related with innovative behavior Combined effect? Prof Karin Sanders

  19. LMX, Satisfaction & Innovative behavior Model 1: Model 2: Innovative behavior Satisfaction HR LMX Satisfaction HR LMX Innovative behavior Prof Karin Sanders

  20. Data • 272 employees from four Dutch & German technical organizations (42 to 66% response rate) • 220 are men (74%) • 52% between 25 and 35 years of age • higher educated employees (professionals) • Surveys and interviews Prof Karin Sanders

  21. Method Valid measurements: LMX (Liden & Maslyn) “My supervisor would come to my defense if I were ‘attacked’ by others” Satisfaction with HR practices: influence, flow (selection, career), primary rewards, secondary rewards, work content (overall satisfaction) Innovative behavior (Janssen et al) Controls: organization, sex, tenure, age, education Prof Karin Sanders

  22. Satisfaction HRM Practices Prof Karin Sanders

  23. LMX, Satisfaction & innovative behavior: results Satisfaction HR Influence Work content Innovative behavior LMX Prof Karin Sanders

  24. Innovative behavior: LMX and HR Practices Conclusions & Implications Both LMX and Satisfaction with HR positively related with innovative behavior Satisfaction with HR mediates the relationship between LMX and innovative behavior HR Practices part of LMX Cross sectional research: causality Importance of perceptions of employees Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  25. From satisfaction to interpretation: the attribution theory Bowen, D. E., & Ostroff, C. (2004). Understanding HRM-Firm Performance Linkages: the Role of the 'Strength' of the HRM System. Academy of Management Review, 29(2), 203-221. Sanders, K., Dorenbosch, L., & Reuver, R. (2008). The impact of individual and shared employee perceptions of HRM on affective commitment: Considering climate strength. Personal Review, 37(4), 412-415. Li, X., Frenkel, S., & Sanders, K. How do Perceptions of HR Systems and Processes affect worker well-being? A multi-level study of Chinese Hotel workers International Journal of HRM (R&R) Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  26. Bowen & Ostroff (2004) HRM – business performance link Instead of the content of HRM; Focus on the process of HRM; Viewing HRM as communication from employer to employees (signals) Introducing “strength of an HRM system”; Attribution theory (Kelley, 1967; 1973) Sense making; cause and effect Distinctiveness; Consistency; Consensus Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  27. Bowen & Ostroff (AoMR, 2004) Distinctiveness: relevance of HRM; acceptance; visibility; legitimacy of authority of HRM Consistency: internal alignment of HR practices, and over time Consensus: agreement among policy makers Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  28. Bowen & Ostroff: theory “Strength of HRM” (Distinctiveness, Consistency, and Consensus) influences Organizational Climate Organizational Climate: ‘shared perceptions of what is expected, and rewarded’ Employee Performance Business Performance Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  29. Bowen & Ostroff: theory Distinctiveness Consensus Consistency Organizational climate Organizational performance Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  30. Bowen & Ostroff: theory Distinctiveness Consensus Consistency Organizational climate Affective commitment Research question: “Can the HRM - Affective Commitment linkage be explained by the strength of HRM system and the organizational climate?” Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  31. From theoryto an empirical model Attribution theory (Kelley, 1967; 1973): Covariation framework Distinctiveness: extent to which employee interprets that the goals of HR practices differ from the goals of other organizational practices Consensus: among policy makers; or among employees Organizational Climate Organizational Climate Level: mean Organizational Climate Strength: shared perceptions Mediating effect or a moderator Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  32. Bowen & Ostroff: method (1) Four hospitals in the Netherlands: within each hospital 18 units clinical; out patients; support staff; paramedical Questionnaires / interviews 32 HRM consultants (100% response) 67 line-managers (98% response) 671 employees (66% response) Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  33. Bowen & Ostroff: method (2) Affective Commitment (Allen & Meyer, 1990) HR practices (Delery & Doty, 1996) / Organizational Focus (mutual investment model: Tsui & Wang, 2002): career opportunities: “In this organization employees have clear career paths”, training and education” “In this organization employees have multiple possibilities for training and education”, appraisal performance:” (…) employee appraisals are based on objective, quantifiable results” clarity of job description: “(…) job description contain all tasks that need to be performed by employees” Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  34. Bowen & Ostroff: method (3) Distinctiveness Relevance: seven items; Legitimacy of Authority: Strategic Partner / Change Agent Consistency: within respondents (ipsative scores) Inversed standard deviation Consensus: between line- and HR managers Inversed deviance scores Organizational Climate Inversed standard deviation within a subunit High Commitment HRM as a control Multi level analyses Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  35. Bowen & Ostroff: results Distinctiveness Consensus Consistency Organizational climate Affective Commitment Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  36. Bowen & Ostroff: results Affective Commitment Strong Climate Strength Weak Climate Strength Consistency Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  37. Bowen & Ostroff: and beyond? Confirmation: Distinctiveness; Consistency Organizational Climate: moderator No confirmation / limitations: Consensus (multi actor data) Affective Commitment instead of BP Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  38. The Bowen & Ostroff model: Chinese hotels Xiaobei Li, Steve Frenkel, & Karin Sanders Prof Karin Sanders

  39. Bowen & Ostroff: replication study (1) Three urban 5 star hotels in China Within each hotel, several service departments, such as catering, guestrooms; Within each department, several units. For example, catering has bars, several restaurants, banquet and room service as units. The dataset: 810 employees; 64 units in 20 departments (90% response) High-performance HR practices as a control Work satisfaction, Intention to quite, Vigor as DVs Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  40. Bowen & Ostroff: replication study (2) Distinctiveness A five-item scale (Frenkel & Gollan, 2008) Consistency: within respondents (ipsative scores) Sign-reversed average deviation Consensus: an employee perceptual measure rather than a multi-actor one A four-item scale (Delmotte et al., 2007) Organizational Climate Sign-reversed standard deviation within a unit Multi-level analyses Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  41. Bowen & Ostroff: theory Distinctiveness Consensus Consistency Organizational climate Work satisfaction, vigor, intention to quit Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  42. Bowen & Ostroff: results Distinctiveness Consensus Consistency Organizational climate Work satisfaction Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  43. Bowen & Ostroff: results Work Satisfaction Strong Climate Strength Weak Climate Strength Consensus between line and HRM Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  44. Bowen & Ostroff: results Distinctiveness Consensus Consistency Organizational climate Vigor Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  45. Bowen & Ostroff: results Distinctiveness Consensus Consistency Organizational climate Intention to quit Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  46. Bowen & Ostroff: results Intention to quit Weak Climate Strength Strong Climate Strength Consensus between line and HRM Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  47. Bowen & Ostroff: results More or less same conclusions: No mediating effects Moderating effect: mixed results Main effects: Distinctiveness Consistency; consensus: not always effective Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  48. Bowen & Ostroff: cultural relevance? Main effects: Distinctiveness: effective for both cultures Consistency: related to Hofstede’s uncertainty avoidance? score for Netherlands (53); score for China (29) Moderating effects of climate on consensus-wellbeing: - Consensus: related to Hofstede’s collectivism? score for Netherlands (20); score for China (75) Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  49. Bowen & Ostroff: and beyond? Limitations: Level of analysis – organizational climate vs. unit-level climate strength No objective performance measures: both employee-, unit -level Cross-sectional design Longitudinal study Generalizability more industries more cultures Prof Karin Sanders Karin Sanders & Xiaobei Li, May 7 2009

  50. Management & HRM so far: emphasis on content From content to perceptions Technical organizations in the Netherlands & Germany Technology & Investment (2010) Introduction Strength of HRM system (Bowen & Ostroff, 2004) Hospitals in the Netherlands Personnel Review, 2008 Hotels in China, IJ of HRM, 2010 Human Resource Management: From content to perceptions Prof Karin Sanders

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