Inside the “black box” and “HRM”

Abstract

Purpose -This paper has two objectives. The first is to see whether "shared values" is an important intermediary, or part of the "black box" (along with organisational commitment and job satisfaction), between HRM practices and firm performance. The second is to assess whether the use of multiple levels of respondents produces different results compared with the usual practice of using senior HRM managers or, in lieu, another senior manager. Design/methodology/approach -A survey methodology is used to obtain perceptual data on HRM practices and a variety of work-related attitudes. The sample comprises managers, supervisors and workers from 27 New Zealand firms. Statistical analysis, using SPSS, was performed at the firm and individual level. Findings -At group-level there are wide differences in attitudes towards HRM activities. The desirability of using as many respondents as possible, and also respondents from different levels within organisations, was confirmed. "Shared values" is also deemed worthy of inclusion in the "black box" as it relates significantly to perceptions of HRM practices. However, organisational commitment and job satisfaction appear to have a stronger role. Research limitations/implications -Current writings suggest that certain HRM practices can foster a system of shared values amongst the workforce. The study finds this indeed to be the case at the individual level. However, the supposition that a shared value system significantly contributes to the promotion of other desirable attitudinal outcomes has not been supported by the study's findings. A limitation of the study is that it did not explore the HRM-firm performance relationship in its entirety. Further research exploring all linkages in this relationship is now required. Practical implications -The paper concludes that practitioners should be wary of pursuing an agenda that sees the development of a shared value system as the key to superior firm performance. Instead, it is suggested that the values of the organisation should be considered as the foundation from which a set of mutually reinforcing and supportive HRM practices is developed. Originality/value -The paper provides much needed empirical data on shared values and their role in the HRM-performance relationship.

Human Resource Management and Performance: From Practices Towards Sustainable Competitive Advantage

“…There appears to be only a limited amount of research attempting to explore how HRM practices essentially work and to pinpoint the processes through which these practices can lead to competitive advantage The "black box" is also described as "remaining void" [21], "gap" [55] or "largely unexplained facet" [22] in terms of explaining the processes by which the HRM and performance impact operates. In literature the issue of the "black box" is treated extraordinary seriously assuming that complexities and nuances highlight the requirement to consider in more depth the relationship and exact mechanisms shaping the link [51].…”

“…However, even researchers who have doubts as Guest, Michie, Conway and Sheehan (2003) or Wall and Wood (2005) assume that the scientific literature conveys a strong message that HRM does promote performance [22]. Acknowledging that HRM can contribute to superior performance as a source of competitive advantage by making organizations more effective [41] and notwithstanding that "some progress" [14] or "considerable progress" [15] was made in the analysis of the relationship between HRM and performance, there remains the space for emergence the better awareness of link.…”

“…Due to fact that "there is a little understanding of the mechanisms through which HRM practices influence effectiveness" [20], one of the main challenges for researchers is to explicate and to assess the precise pathway through which HRM practices influence organizational performance. "The remaining void" [21] or "largely unexplained facet" [22] of HRM and performance linkage has been referred to "black box" [19]. Understanding the relevance of exploring the pathways leading from HRM practices to organizational value, considerable number of theories and approaches are used in order to clarify what is in this "black box" -the resource based view, human capital, intellectual capital, the behavioural perspective, organizational climate and culture, symbolic view of firm, an attribution approach, social exchange theory [23].…”

Correlates of HRM Practices and Organisational Commitment of Retail Employees in Delhi-NCR

“…Agarwala (2008) in his study of manufacturing firms in India concluded that the implementation of training and development practices at work is positively correlated with employee commitment. A similar study conducted in New Zealand work settings by Edgar and Geare (2009) examined the role of HRM practices especially the training and development and career advancement opportunities and concluded that HR practices have a significant impact on satisfaction and organisational commitment. However, our data as indicated from Table 2 (d) show a weak relationship between organisation commitment and perceptions of prevalence of career management and skill development practices in the organisation (r = 0.203, p # 0.05).…”

Ageing Organisations and the Extension of Working Lives: A Case Study Approach

“…As stated by Vickerstaff (2006a): 'Too often research on organisational practice remains at the level of policy documents and the espoused policy of management' (p. 508). Previous research shows that intended organisational policies, and policies as perceived by employees, may differ (Edgar and Geare, 2009;Khiji and Wang, 2006). Yin points out that a common concern about case studies is how to generalise from a case.…”