Purpose – Concerns about the effectiveness of performance management systems (PMS) have long-driven researchers and practitioners to explore ways of measuring it. It is imperative for organizations to understand, how employees perceive the effectiveness of their PMS, for positive employee outcomes. Hence, the purpose of this paper is to explore the operationalization of the construct “employee perception of PMS effectiveness” (PMSE). An evidence of construct validity for the “two-factor PMS effectiveness” measure with perceived “PMS accuracy” and “PMS fairness” as its two factors is provided. In addition, a scale to measure “employee perception of PMS accuracy” is developed. Design/methodology/approach – Mixed-methods research methodology. Findings – Findings confirmed the possible existence of the two-factor PMSE construct, with PMS accuracy and fairness as its factors. Construct validity is established through its correlations with important outcome variables. The development of a valid and reliable 12-item scale for perceived PMS accuracy (Cronbach α value=0.83) is an additional key contribution. Research limitations/implications – The research presents opportunities for future empirical studies to examine the influence of PMS accuracy and effectiveness on employee outcomes (engagement, retention, etc.). Researchers may also cross-validate the PMSE measure in different socio-cultural contexts. Practical implications – The perceived PMS accuracy and effectiveness measures can serve as powerful investigative tools to measure employee perceptions regarding PMS. It can help organizations identify and correct the shortcomings in their existing PMS. Originality/value – This is the first paper to offer a cogent conceptualization and operationalization of employee perceptions of PMS accuracy and effectiveness. Hence, it has key implications for academics and practitioners.
Purpose The purpose of this paper is to examine the influence of total rewards components (monetary, material and non-monetary) on happiness of employees working in Indian technology-based new ventures. Further, with the theoretical lens of social exchange theory, the mediating role of work engagement between total rewards perceptions and work happiness relationship has also been evaluated. Design/methodology/approach A survey of 201 employees working in Indian technology-based new ventures was conducted. Structural equation modeling was utilized to measure the proposed theoretical model. Regression analysis was conducted to test the direct effects of the hypothesized relationships. Sobel test and bootstrapping analysis were utilized to test the indirect effects of the proposed hypothesized relationship. Findings The findings supported the hypotheses that employees’ perceptions of total rewards have a significant impact on employee work engagement and happiness at work. However, individual component of total rewards, i.e. monetary rewards, demonstrated an insignificant impact on the employee work happiness. Work engagement was positively related to work happiness and fully mediated the relationship between total rewards perceptions and work happiness. Practical implications Special attention should be given to enhance the material and non-monetary rewards, specifically strengthening the feeling of appreciation, learning and growth opportunities and improving feedback functions. Given the challenges of new ventures (productivity and efficiency of talent), management of total rewards mix should be considered as the main concern of human resource (HR) managers and management (founders). The paper also provides important implications for designing a reward system that enhances employee productivity and efficiency in the unstructured and ambiguous work environment of new ventures. Originality/value The present study has significant contributions to the HR, entrepreneurship and positive psychology literature. It is an attempt to understand the association between total rewards components and work happiness via mediating mechanism, i.e. work engagement in new ventures. It also extends research in the entrepreneurial context. The emergence and growth of new ventures in India has meant a growing importance for understanding employees’ needs and expectations and guaranteeing their happiness. The findings of the study contribute to social exchange theory, Vroom’s expectancy and self-determination theory. This research is also a rare investigation of employees’ perspectives in an entrepreneurial context.
PurposeThis paper aims to explore the role of human resource (HR) analytics on employees’ willingness to improve performance. In doing so, the paper examines issues related to the performance appraisal (PA) system which affect employees’ willingness to improve performance and how HR analytics can be a potential solution to deal with such issues. Design/methodology/approachThe paper develops a conceptual framework along with propositions by integrating both academic and practitioner literatures, in the field of HR analytics and performance management. FindingsThe paper proposes that the use of HR analytics will be negatively related to subjectivity bias in the PA system, thereby positively affecting employees’ perceived accuracy and fairness. This further positively affects employees’ satisfaction with the PA system, which subsequently increases employees’ willingness to improve performance. Research limitations/implicationsThe paper provides implications for both researchers and practitioners in the performance management area for improving employees’ performance by applying HR analytics as a strategic tool in the PA system. It also provides implications for future researchers to empirically test the conceptual framework in different organizational settings. Originality/valueThe paper offers insights into how the use of HR analytics can deal with issues of subjectivity bias in the PA system and positively affects employees’ willingness to improve performance.
PurposeThis research develops and tests a model for organizational identification (OID) in a sample of knowledge workers in India. It calls attention to the relational antecedents of OID that are often overlooked in existing literature. Strong theoretical arguments are also built for context-specific outcome behaviors such as intrinsic motivation (IM) and innovative work behavior (IWB) that are relevant to knowledge work.Design/methodology/approachData were collected from 357 IT industry employees in India. Partial least squares structural equation modeling (PLS-SEM) was used to test the hypotheses and the path model.FindingsStrong support was found for relational antecedents of OID and the outcome variable IWB. The findings indicated that OID impacts IWB through the mediating mechanism of IM. Overall, the model demonstrated strong predictive power.Practical implicationsThe findings suggest that social and relational variables could be strong managerial levers to increase the feeling of belongingness experienced by knowledge workers in India. In turn, OID can impact IWB, which is a significant outcome for knowledge work.Originality/valueThe study finds strong support for hypothesized relationships that have been unexplored or underexplored in mainstream OID literature. Relational antecedents were found to be strong predictors of OID in this sample. Also, the relationship between OID and IWB, an outcome behavior that is specifically relevant to knowledge-driven businesses, has not been explored earlier.
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Purpose Understanding managers’ experiences of workplace dignity (WPD) is critical to working with others in an organization. However, there is limited research available on this subject. This study aims to expand the knowledge of WPD by exploring managers’ understanding of WPD and their experiences of both affirmation and denial of dignity at work. Design/methodology/approach Critical incident technique (CIT) has been used to explore the themes related to managers’ perceptions of WPD through their lived experiences. Affective event theory supports the use of CIT in the current study context. Findings Findings unfolded many new aspects of WPD, which have not been explored in the past. An exploration and analysis of the three research questions related to managers’ understanding, affirmation and denial experiences of WPD have added new insights to the existing literature. These have been further segregated under the following four main factors: internal, external, process and feelings. Finally, the authors conclude that external factors that arrive during exchange relationships play an important role in managers’ understanding and experiences of WPD in India. Originality/value To the best of the knowledge, this is a seminal study to have explored managers’ understanding of WPD in India. It aims to add to the literature by enriching the construct of WPD. Practical implications include a deeper managerial understanding of the affirmational practices and factors which will positively impact WPD.
PurposePerformance management systems (PMSs) are critical for organizational success, but research is undecided on their constructive influence and the means through which they impact work engagement and turnover intention. This study aims to fill this gap by surmising psychological contract fulfillment as a mediator in the relationship between PMS effectiveness (PMSE) and employee outcomes.Design/methodology/approachThe study uses a survey research design. Data were collected from 327 working professionals in India. The Statistical Package for Social Science Version 10.0 (SPSS 10.0) and the Analysis of Moments Structure (AMOS) 4.0 were used for data analyses.FindingsThe two-factor construct perceived PMSE was found to explain a larger variance in work engagement and turnover intention than the separate measures for its constituents PMS accuracy (PMSA) and PMS fairness (PMSF). Psychological contract fulfillment and work engagement were found to mediate the relationship between PMSE and turnover intention.Research limitations/implicationsThe study broadens the field of research on PMS in important ways. It demonstrates that the two-factor construct PMSE has a larger influence on employee outcomes in comparison to its constituent individual measures PMSA and PMSF. This is also the first study to suggest that in contrast to PMSF, PMSA explains a higher variance in employee outcomes.Practical implicationsThis study validates the strong relationship between PMSE and key employee outcomes. Besides PMSF, managers can use the findings of this study to focus on the “right things” or accuracy in the PMS context to enhance work engagement and reduce turnover.Social implicationsThe study findings will have value everywhere owing to the diffusion and convergence in the human resource management practices of multinational firms irrespective of their contexts (Ananthram and Nankervis, 2013).Originality/valueEarlier PMS studies have mostly been limited to either its fairness or accuracy and attended unduly to its appraisal element. This study adopts a systems vision of PMS and overcomes earlier drawbacks by investigating the role of both PMSA and PMSF in shaping employee outcomes. This is the first study to empirically confirm that in contrast to PMSF, the PMSA constituent of PMSE explains a higher variance in employee outcomes. The study provides greatly essential pragmatic support to the conjecture that PMSs advance work engagement (Mone and London, 2014; Gruman and Saks, 2011) and lower turnover intention (Kwak and Choi, 2015).
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