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Human Capital Factors Affecting Human Resource (HR) Managers' Commitment to HR and the Mediating Role of Perceived Organizational Value on HR

Human Resource Management 2015 open access
Human resource ( HR ) managers’ commitment to their occupation ( HR ) leads to the proper delivery and implementation of HR practices and, therefore, is deemed as a critical factor for the success of HR practices. Based on sociocognitive, human capital, and signaling theories, this study examines: (a) HR managers’ own and their chief HR officer's ( CHRO ) HR ‐specific human capital as antecedents of their commitment to HR , and (b) the mediating mechanism through which the CHRO ’s HR ‐specific human capital positively influences HR managers’ commitment to HR . Based on 146 HR managers from 146 organizations in South Korea, the findings of the current study suggest that HR managers with higher levels of HR ‐specific human capital and those working with CHROs with higher levels of HR ‐specific human capital tend to have higher levels of commitment to HR . In addition, CHROs with higher levels of HR ‐specific human capital positively influence HR managers’ commitment to HR by signaling to them that HR and its function are valued and cared about by their organizations. Theoretical and practical implications of this study are discussed along with study limitations and further research directions.

Crowding Out Reciprocity between Working Parents and Companies with Corporate Childcare

Human Resource Management 2015 open access
When the government and companies invest in childcare, both do it with good intentions. While politicians have the intention of enhancing fertility and well-being of families, employers expect positive responses from working parents based on the norm of reciprocity. Since industrialized countries increase public family support year by year, the question arises as to whether this may trigger unanticipated consequences. If both the state and companies invest in substitutive services, they might unintentionally spark competition. Therefore, the aim of this study is to examine whether public childcare may “crowd out” the reciprocity effects of corporate childcare on working parents. In Switzerland, state family policies vary among the 26 cantons, so we are able to compare cantons with a high and low number of cantonal childcare services. Using survey data taken from 414 working parents living in different Swiss cantons, we examined whether public childcare affects organizational-related responses of working parents. First, our results support the expected level of reciprocity: working parents in companies with their own childcare services show higher organizational commitment than parents in companies without this support. Second, we find evidence for a crowding-out effect: in family-supportive cantons with numerous public childcare services, working parents’ commitment to companies with their own childcare services is lower than in less family-friendly cantons. This finding reignites an old economic debate on the crowding out of voluntary private investments due to governmental policies.

Multiple Disadvantage and Wage Growth: The Effect of Merit Pay on Pay Gaps

Human Resource Management 2015 open access
This article concerns rates of wage growth among women and minority groups and their impact on pay gaps. Specifically, it focuses on the pay progression of people with more than one disadvantaged identity, and on the impact of merit pay. Recent research indicates that pay gaps for people in more than one disadvantaged identity category are wider than those with a single‐disadvantaged identity. It is not known whether these gaps are closing, at what rate, and whether all groups are affected equally; nor is it known whether merit pay alleviates or exacerbates existing pay gaps. In addressing these issues, the analysis draws on longitudinal payroll data from a large UK ‐based organization. Results show that pay gaps are closing; however, the rate of convergence is slow relative to the size of existing pay disparities, and slowest of all for people with disabilities. When the effect of merit pay is isolated, it is found to have a small positive effect in reducing pay gaps, and this effect is generally larger for dual/multiple‐disadvantaged groups. These findings run counter to the well‐established critique of merit pay in relation to equality outcomes. The implications of this are discussed, and an agenda for research and practice is set out.

The Effect of a Consciously Set and a Primed Goal on Fair Behavior

Human Resource Management 2015 open access
Three experiments were conducted to test whether an enhanced degree of fair behavior could be obtained by making justice a goal, whether consciously set, primed, or both. Each experiment assessed fairness in a competitive negotiation context. All participants, across the three experiments, were asked to attain a base-level performance goal. The first experiment examined how a negotiation is affected by a consciously set goal for fairness as well as a primed fairness goal. The results revealed that both the conscious and the primed goal enhanced a participant's fairness. The second and third experiments examined the underlying mediating mechanisms of the effects found in the first experiment. Overall, the results of three experiments indicate that both conscious and primed goals, individually or in combination, can increase fair behavior by enhancing justice saliency.

The Effects of Leader Succession and Prior Leader Experience on Postsuccession Organizational Performance

Human Resource Management 2015 open access
In this article we strive to reconcile equivocal findings about the effects of top leader succession and prior leadership experience on postsuccession organizational performance. In doing so, we draw on insights from theories of human capital, learning, and asymmetric information to better understand the conditions under which leaders increase or decrease postsuccession performance. Employing a sample of 119 newly appointed leaders in the English Premier League (1996–2010), we find the following results. First, relating to the succession event, outside leaders that directly move between leadership positions are associated with higher postsuccession performance while the departure of a prior leader to a leadership position in another organization has a negative effect on postsuccession performance. Second, relating to prior leadership experience, leaders with domestic top leader experience are associated with lower postsuccession performance, while leaders with foreign top leader experience are associated with higher postsuccession performance.

Adoption of High‐Performance Work Systems by Local Subsidiaries of Developed Country and Turkish MNEs and Indigenous Firms in Turkey

Human Resource Management 2015 open access
High‐performance work systems ( HPWSs ) are seen as important in helping strengthen competitive strategies of developed‐country multinational enterprises ( DC MNEs ). Commensurate with global competitive pressures and internationalization strategies, emerging‐country MNEs ( EC MNEs ) and indigenous firms are also increasingly adopting HPWSs . HPWSs are not only seen as simply performance enhancing systems, but also as facilitators of internationalization. MNEs represent an important test bed for the HPWSs and their applicability in different national contexts. In this article, we contribute to the extant literature by focusing on HPWS adoption level within domestic subsidiaries of DC MNEs and EC MNEs along with stand‐alone indigenous firms in a single‐country setting by keeping the host‐country environment as constant.

Smallest Meaningful Pay Increases: Field Test, Constructive Replication, and Extension

Human Resource Management 2015 open access
The authors extend prior literature by examining, in two distinct field settings, smallest meaningful pay increases (SMPIs) in terms of magnitude, behavioral intention, and affective reactions. In Study 1, a two-wave study of 177 employees of a university medical center in the United States, the authors find stable thresholds of about 5.0 percent for positive reactions to pay increases (magnitude [5.4 percent], behavioral intentions [4.2 percent], and affective reactions [5.6 percent]). In Study 2, a sample of 495 university employees in Finland, the authors also find stable but slightly higher thresholds of about 8 percent for behavioral intentions (8.4 percent) and positive affective reactions (7.2 percent) to pay increases. They also find threshold effects of −5.7 percent for behavioral intentions and −5.8 percent for negative affective reactions in response to restricted future pay increases levied in the transition to a new pay system. Discussion of the results centers on pay raise administration and future research regarding implied and direct pay reductions.

Social Capital Effects on the Career and Development Outcomes of HR Professionals

Human Resource Management 2015 open access
HR professionals’ roles require them to be responsive to both employee needs and top management strategies. However, the need to respond to the often competing employee and strategic agendas makes relationship-building efforts challenging. This study examines the social capital characteristics of HR professionals and the impact on receipt of network benefits and career outcomes. Results indicate that HR professionals benefit from relationships with other HR professionals for career sponsorship and role-related benefits. However, it is contacts who are in higher positions or in other organizations that transfer the most influential benefits, which in turn relate to objective career outcomes. Few benefits are obtained from contacts in non-HR functions. The results illuminate relationship development opportunities for HR professionals.

Incentive Pay and Firm Performance: Moderating Roles of Procedural Justice Climate and Environmental Turbulence

Human Resource Management 2015 open access
In connection with the literature on strategic reward and agency theory, this study investigates the effects of incentive pay on employee outcomes and firm performance. We identify employee outcomes, such as commitment and competence, as mediating processes that explain the effects of incentive pay on firm performance. We further propose procedural justice climate and environmental turbulence as boundary conditions that determine the strength of the effects of incentive pay on employee outcomes. The research model is tested using multisource data collected at three time points over a five‐year period from 227 Korean companies. Our analysis confirmed that incentive pay enhanced employee commitment and competence, which, in turn, improved the operational and financial performances of firms. The effect of incentive pay on employee commitment was negative for firms with a low procedural justice climate, but positive for firms operated under a highly turbulent environment. By contrast, the effect of incentive pay on employee competence was positive only for firms operated under a stable environment. This study enriches the literature by presenting and validating plausible underlying mechanisms and boundary conditions under which strategic performance–contingent incentive pay affects firm performance.

High Job Performance Through Co-Developing Performance Measures With Employees

Human Resource Management 2015 open access
According to various studies, employee participation in the development of performance measures can increase job performance. This study focuses on how this job performance elevation occurs. We hypothesize that when employees have participated in the development of performance measures, they perceive these measures to be of higher quality, which in turn elevates their attitudes toward, perceived social norms for, and perceived control over performing well in their jobs. Based on the theory of planned behavior, the latter three factors are hypothesized to increase job performance. Survey data from 95 employees as well as 88 of their managers were analyzed using structural equation modeling. Employee participation in developing performance measures is found to be related to job performance, via perceived measurement quality and employees’ perceived control over performing well. We discuss the practical and theoretical implications of these findings, including the limitations of this study's design, and sketch a number of future research paths in this area.