Progressive human resource management and firm performance

Abstract

Purpose This study aims to examine the adoption and efficacy level of progressive human resource management (HRM) practices in various organizations operating in India. Design/methodology/approach Primary data based on 615 respondents from 103 domestic firms and 116 foreign multinational corporations (MNCs) operating in India were gathered and analyzed using statistical techniques like t-test, confirmatory factor analysis and structural equation modeling. Findings The results reveal that the adoption of progressive HRM practices in form of self-managed teams, flexibility to work flexible hours, use of online mediums to invite applicants, selection of candidates using assessment center and integrity test, performance based incentives, flexible benefits, facility of e-learning and innovative management development programs is positively related to firm performance in Indian context. Using institutional and cultural perspective, the findings have also demonstrated that their exist differences in adoption of progressive HRM practices between foreign MNCs and domestic firms. Practical implications Domestic firms in India are needed to learn some important managerial lessons from the foreign MNCs, especially when their adoption of progressive practices results in more increase in firm performance. These are suggested to implement a broad range of innovative HR practices like MNCs to improve growth potential, instead of focusing on two or three practices. Originality/value By exploring the differences between domestic and foreign MNCs, this study has offered some key insights on the extent of adoption and operationalization of progressive HRM in current Indian business environment.

Strategic HRM and organisational performance: does turnover intention matter?

“…Over the years, numerous studies have demonstrated the positive effects of strategic human resource management (SHRM) on both employees' behaviour and organisational performance (Korff et al, 2017;Gahlawat and Kundu, 2019). In the literature, the influence of SHRM on employees' work attitude has gained further attention for both empirical (Korff et al, 2017;Salminen et al, 2017) and theoretical contributions (Delery and Roumpi, 2017).…”

Unravelling the Relationship Between High-involvement Work Practices and Organizational Citizenship Behaviour: A Sequential Mediation Approach

“…As a result of this heightened awareness over employees, the institutional structure in relation to human resource management (HRM) has uplifted considerably in India. Scholars (e.g., Gahlawat & Kundu, 2019; Som, 2008) have stated that Indian organizations are extensively embracing the Western-developed notions of HRM such as high-performance work systems (Appelbaum et al, 2000), high-involvement work systems (Guthrie, 2001) and innovative HRM (Boselie, 2011) in order to survive and compete in the highly globalized environment. These progressive HRM systems representing “bundles” of HR practices are often reported to have a positive influence on organizational effectiveness (Boon, Hartog, & Lepak, 2019 ; Boxall & Macky, 2009).…”

Strategic human resource management and employees' intention to leave: testing the moderated mediation

“…Conferring to the moderated mediation analysis, the results imply that the impact of business strategies on employees' ITL through HPWS do not vary in different types of firms, be it manufacturing, service, domestic or foreign MNC. It can be argued that recent contextual changes including rapid economic development and change in employees' work-related values, may have shaped an environment in India where organizations irrespective of their ownership type and nature are adopting advanced HRM systems like strategic HRM and HPWS to achieve competitive advantage (Sahu, 2018;Gahlawat and Kundu, 2019 are turned effective to an equitable extent regardless of the organizational context. Allinclusive, the current study provides some interesting results in relation to the validation of progressive HRM systems in Indian context.…”

“…However, local firms are argued to be still in the infant stage in application of HRM as is understood internationally (Warner, 2004). Other studies from India have also indicated that Indian firms are less formal and less structured in their approach to HRM (Budhwar and Sparrow, 1997;Gahlawat and Kundu, 2019) and copy their Western counterparts in formulating and implementing strategic HRM programmes and systems (Som, 2008). Additionally, Cooke and Saini (2010) established that Indian firms in an attempt to "catch up" with the MNCs adopt HR practices just to be seen as progressive, modern and innovative; they ignore examining the utility of these practices to the firm and their support to business strategy.…”