HR systems, HR departments, and perceived establishment labor productivity

Abstract

This study examines how an HR department moderates the effects of high-performance work systems (HPWSs) on perceived establishment performance. Using a representative sample of 125 small and medium-sized establishments from the 2002 National Organizations Survey, our results indicate a positive interaction between HPWSs and the existence of an establishment HR department with respect to perceived establishment labor productivity. Implications for future strategic HRM research are discussed. K E Y W O R D Shigh-performance work systems, HR departments, small and medium-sized enterprises SMEs, as from a cost-benefit perspective, it is a significant investment for SMEs to adopt HPWSs and HR departments, such that the costs can outweigh the benefits from enhanced unit performance.(As our data exist at the establishment level of analysis, our theory and analysis will be tailored to establishments.)In the following sections, we first review relevant literature in the streams of research that we mentioned and then propose two hypotheses for testing in the current study. Next, we present a description of our data sample and analytic approach. Finally, we report our results and discuss their implications for future SHRM research.

A quarter‐century review of HRM in small and medium‐sized enterprises: Capturing what we know, exploring where we need to go

“…Based on the above-mentioned rationale, we employed a systematic approach guided by the following overarching research questions: SMEs have particular characteristics which make HRM both significant and challenging. Questions abound as to the relevance and transferability of large firm HR to the SME context (Allen et al, 2013;Rauch & Hatak, 2016), with more nuanced understanding called for in order to make sense of the "small and somewhat mixed" results to date (Barrett & Mayson, 2007;Chadwick & Li, 2018, p. 1415. Indeed, while we might know something of the extent of HR practices or activities in SMEs, we have much less insight about why such practices exist and how they operate.…”

“…Only 11% of studies sought to provide explanation for HRM effects through consideration of mediators which included human capital, motivation, and employee voice (Shahzad, Arenius, Muller, Rasheed, & Bajwa, 2019), employee commitment (Lechuga Sancho et al, 2018), employee involvement and quit rates (Allen et al, 2013), employee creativity (Do & Shipton, 2019), strategic orientation (Teo et al, 2011), strategic flexibility and ambidexterity (Patel, Messersmith, & Lepak, 2013; Xiu et al, 2017), and organizational learning capability (Wan Hooi & Sing Ngui, 2014). Boundary conditions explored as moderators included sector (Hayton, 2003), demographic characteristics, HR practices, and employee outcomes (Chandler & McEvoy, 2000; Lai, Saridakis, & Johnstone, 2017; Lin, Chen, Huang, & Lu, 2014), philosophy and culture (Messersmith & Wales, 2011; Patel & Cardon, 2010; Triguero‐Sánchez, Peña‐Vinces, & Sánchez‐Apellániz, 2013), coupled with management features, for example the existence of an HR department (Chadwick & Li, 2018), formality (Lai, Saridakis, Blackburn, & Johnstone, 2016), and the nature of leadership (McClean & Collins, 2019). Some studies usefully analyzed data from extensive national databases, such as the Work Employment Relations Survey (Bacon & Hoque, 2005; Bryson & White, 2019).…”

“…Despite some progress, research on the HRM–performance relationship in SMEs remains limited and equivocal (Barrett & Mayson, 2007; Chadwick & Li, 2018). In addition to more finessed and refined measurement of HR and performance as discussed, there is a requirement for more thorough understanding of the processes by which HRM is enacted and experienced in SMEs.…”

“…Many papers advocate a contingency approach as more suited to the SME context (Atkinson & Lucas, 2013;Chadwick et al, 2013;Georgiadis & Pitelis, 2012;McClean & Collins, 2019;Rauch & Hatak, 2016). Nonetheless, explorations of HPWS/HPWP were dominant (Chadwick & Li, 2018;Kerr et al, 2007;Newman & Sheikh, 2014;Razouk, 2011;Way, 2002). At times, they were manifested through Highcommitment HR practices (Allen et al, 2013), or Human capitalenhancing HR systems (Hayton, 2003;Teo et al, 2011 Fabi, & Uwizeyemungu, 2019).…”

Hr-Strategy, Based On The Application Of Data Mining Algorithms

“…OJSC "RZD" is a developing industry in Russia, having the necessary infrastructure, seeks to use modern platforms, technologies, skills set, institutional and instraumental settings for development in the digital economy ecosystem. Reviewing the problem of personnel management, generation and allocation of key indicators KPI (Chadwick & Li, 2018), units of personnel management simulate achievements of reference parameters. The process modeling in the company is carried out according to ARIS methodology.…”