The strength of human resource practices and transformational leadership: impact on organisational performance

Abstract

The Human resource (HR) strength concept (Bowen, D., and Ostroff, C. 2004, 'Understanding HRM-Firm Performance Linkages: The Role of the "Strength" of the HRM System,' Academy of Management Review, 29, 2,[203][204][205][206][207][208][209][210][211][212][213][214][215][216][217][218][219][220][221] reflects the capacity of an HR system to transmit messages characterised by high distinctiveness, consistency and consensus. HR systems are therefore affecting perceptions and interpretations of organisational realities, such as climate and culture. Furthermore, Bowen and Ostroff (2004) suggest that organisational climate mediates the relationship between HR strength and performance. The leadership literature advocates that leaders are people who are able to create a social context in which employees are guided towards a shared interpretation, understanding and perception of the organisational climate (Yukl, G.A. 1989, Leadership in Organizations, Englewood Cliffs, NJ: Prentice Hall). In summary, both HR strength and leadership are two environment dimensions shaping and moulding employees' perceptions and interpretations. The current study explores the relationships between HR strength, leadership, organisational climate and performance. 323 questionnaires were used to gather information from a company in the industrial sector. The results show a positive relationship between the variables; however, mediating effects of climate were only observed between leadership and performance.

Performance‐based rewards and innovative behaviors

“…Employee perceptions of HR strength were measured using the 15 item‐scale of Coelho, Campos Cunha, Gomes, and Gomes Correia () (see also Pereira & Gomes, ). Building on the work of Delmotte, De Winne, and Sels (), who developed and validated a questionnaire to measure HR strength based on line and union representatives in Belgium, Coelho et al () developed a questionnaire to measure HR strength based on the employee data.…”

"Transformational Leadership, High Performance Work Practices, and an Effective Organization"

“…HRM systems can provide a platform through which the transformational leader's plan or strategy is conveyed consistently to organizational members. The rationale is that HRM policies, routines, or procedures send strong signals regarding what the organization expects of employees, and what employees can expect from the organization in return (Pereira & Gomes, 2012;Ogbonnaya et al, 2015). For example, a leader who desires to intellectually stimulate employees may do so by emphasizing job autonomy, task variety, and other discretionary workplace activities in the design of employees' jobs.…”

Strength of the HRM system: The development of a measure

“…Several empirical studies were made (e.g., Li, Frenkel & Sanders, 2011;Sanders, Dorenbosch & Reuver, 2008;Stanton, Young, Bartram & Leggat, 2010;Sheehan, Cooper, Holland & De Cieri, 2007;Ferris, Hochwarter, Buckley, Harrell-Cook & Frink, 1999;Pereira & Gomes, 2012;Ribeiro, Coelho & Gomes, 2011). However these have used measures which were not validated, as up to very recently there were no available instruments to capture the full content of Bowen and Ostroff's concepts.…”