Modelling the impact of performance management practices on firm performance: interaction with human resource management practices

The paper draws on resource orchestration theory to investigate whether and how performance management (PM) practices interact with human resource management (HRM) practices in organisations as well as how this interaction affects firm performance. The proposed theoretical model was tested through a survey of 192 UK firms using Partial Least Squares approach for structural equations modelling. The findings show that the effect of PM practices on firm performance is better explained when the interaction between these practices and other organisational practices is considered. In particular, we examine the extent to which the interaction between PM practices and commitment-based HRM practices affects performance. We find that when HRM practices and PM practices are misaligned, their effect on performance can be negative. This is the first paper in the PM literature that establishes the relationship between PM and HRM practices in organisations and demonstrates the effect of this relationship on firm performance.     

Performance Metric Portfolios: A Framework and Empirical Analysis

The widespread adoption of supply chain management principles suggests that managers recognize the importance of evaluating operational decisions holistically. However, it is often difficult to link specific operational practices to strategic level outcomes and in turn to corporate financial results. This presents problems for both managers and academic researchers attempting to justify the often high cost of operational improvement initiatives in terms of objective accounting metrics. This study provides evidence that it is possible to demonstrate linkages between carefully chosen portfolios of tactical, strategic, and financial metrics. Survey data from 118 manufacturers are used to evaluate hypotheses linking multilevel metrics of performance across three well‐established strategic foci. We present portfolios of metrics drawn from the literature and from the Supply Chain Counciľs supply‐chain operations reference model and related design and customer chain models. Our analysis suggests that metric portfolios in which tactical metrics are designed to match strategic‐level metrics, based on alignment with a specific strategic focus, provide clearer mechanisms for understanding performance linkages.     

高绩效工作系统与组织绩效:中国连锁行业的实证研究

本文分析了一项对中国83家连锁企业的人力资源实践状况的最新调查。本文对管理人员和生产人员及其不同的人力资源实践类型进行了区分,同时基于人力资源实践的组合,使用聚类分析划分了它们的高低水平组别。本文在高水平组别中,分析了人力资源实践的不同组合对公司绩效的影响。论文的研究结果增加了我们在高绩效工作系统方面的知识,为经理人员规划有效的人力资源管理战略提供了重要的启发。     

Green supply chain management innovation diffusion and its relationship to organizational improvement: An ecological modernization perspective

Drawing on diffusion of innovation and ecological modernization theories, we identify three types of industrial manufacturers, namely early adopters, followers, and laggards, based on the adoption of green supply chain management (GSCM) practices among Chinese manufacturers. Test results indicate that differences exist between the three types of GSCM adopters in terms of their environmental, operational, and economic performance. Understanding how Chinese manufacturers adopt GSCM practices and if this adoption affects their performance contributes theoretical advancement to the diffusion of innovation theory. Practically, the results provide managerial insights for manufacturers to benchmark for environmental management practices and performance improvement.     

战略人力资源管理的理论模式

本文将战略人力资源管理中关于人力资源管理与企业绩效关系的研究总结为三种不同的理论模式:根据最佳实践模式,一些HRM活动是普遍有效的,组织采用这些最佳的HRM活动就会获得相当好的绩效;在权变模式里,HRM活动的效率是随着企业战略等因素而变化的,组织采用适合于其战略的HRM活动将更有效率;在形态模式里,HRM活动通过内部匹配形成特定的HRM系统形态,HRM系统与组织战略等因素的外部匹配会对组织绩效产生重要影响。     

电信运营企业人力资源管理系统与组织绩效关系研究

根据对广东省116家电信运营企业人力资源实践状况的调查结果,分析了人力资源管理实践与组织绩效的关系。基于人力资源实践的组合,划分了高低水平人力资源实践组并对其进行了比较。通过相关分析和回归分析,揭示了内部发展型人力资源管理系统与组织绩效的影响关系。研究发现,中国背景下的电信运营企业采用偏向内部发展型的人力资源管理系统,因其组织绩效较高。     

Examining the Ability,Motivation and Opportunity (AMO) framework in HRM research: Conceptualization,measurement and interactions

Despite the increasing popularity of the Ability, Motivation, Opportunity (AMO) framework in the Human Resource Management (HRM) field, AMO research is at a crossroads in theoretical and empirical development. This is due to (a) a lack of clarity about the conceptualisation and measurement of AMO variables, (b) the construction of AMO articles that do not distinguish between AMO differences and AMO-enhancing HRM practices and fail to integrate them, (c) a lack of understanding about how AMO variables at the individual and organizational levels interact to generate individual and organizational performance, and (d) a lack of consideration of the process (mediators and moderators) through which AMO generates performance gains. Based on the analysis of 104 quantitative HRM articles published between 1997 and 2022, this study helps to draw clearer distinctions among AMO variables and levels of analysis. The review of the empirical literature shows that there is excessive heterogeneity with regard to the conceptualization and utilisation of AMO variables, which in turn leads to scale proliferation. We find that research on AMO-enhancing HRM practices and AMO differences is rarely combined and tends to be tested at a single level rather than more logical cross-level effects between AMO-enhancing HRM practices, AMO differences and performance. We also found that whereas Ability and Motivation differences mediate the relationship between AMO-enhancing HRM practices and performance, opportunity appears to be a boundary condition in the relationship between Ability and Motivation with performance outcomes. The paper concludes with relevant avenues for future AMO research suggested for the field of HRM.     

Employees’ reactions to customer mistreatment: The moderating role of human resource management practices

This study examined the moderating roles of human resource management (HRM) practices in employees’ reactions to customer mistreatment. Drawing upon the job demands-resources (JD-R) model and stress appraisal theories, this study hypothesised that training and participation could buffer the negative effect of customer mistreatment on service employees’ work outcomes (i.e. emotional exhaustion and job performance). Data were collected from 730 service representatives and their team leaders at two time points. Results showed that customer mistreatment was less positively related to emotional exhaustion in teams where employees were provided with more participation opportunities, and customer mistreatment was less negatively related to performance in teams where employees received more training. The results suggest that different types of HRM practices could effectively buffer the negative impact of customer mistreatment on different work outcomes for service employees. Theoretically, this study extends the customer mistreatment literature by demonstrating the importance of studying HRM practices in the customer mistreatment context, and supports the integration of JD-R model as an overarching framework and stress appraisal theories as an explanatory theory to understand the role of HRM practices. Practically, the findings provide implications to managers in protecting employees from customer-related interpersonal stressors and maintaining a healthy and productive workforce.     

Collective voice mechanisms,HRM practices and organizational performance in Italian manufacturing firms

The literature on employee voice has grown enormously over the past decades. However, the relationships between different employee voice mechanisms and organizational performance are far from being fully understood, and the existing research shows mixed evidence. Moreover, the HRM literature tends to concentrate on individual voice mechanisms (e.g. employee involvement) and to underestimate the role that collective voice may have in the HRM performance relationship. This paper aims to analyze how collective employee voice mechanisms (i.e. union voice and team voice) affect organizational productivity and how these relationships vary when voice mechanisms are adopted in combination with other HRM practices (i.e. variable pay, training, performance appraisals and multitasking). The analysis of a sample of 223 Italian manufacturing firms matched with an external database (AIDA) containing balance sheet information found that union voice is positively related to labor productivity, while team voice does not show any significant relationship with labor productivity. Moreover, both union and team voice have important moderation effects in the HRM-performance relationship. Union voice moderates positively the relationship between variable pay and performance and negatively the relationship between training and performance. Team voice positively moderates the relationship between training and performance. The implications of these findings are discussed.     

Human Resource Management–Performance Research: Is Everyone Really on the Same Page on Employee Involvement?

Differences in the treatment of involvement in the human resource management (HRM)–performance research stream have been underplayed, as commentaries concentrate on showing that HRM produces a performance premium, and more recently on exploring the mechanisms explaining this. This paper first identifies the two initial concerns of the research stream – the value of employee involvement and the holistic treatment of HRM – and the way these are joined to present a unified view of the area. It then reviews the studies, confirming that involvement has been underplayed or neglected completely, and is only prioritized in a minority. A divide is identified between HRM as an orientation towards fostering employee involvement – seen as a managerial philosophy – and as a technology – a set of practices constituting high‐performance work systems. The paper then argues that acknowledgement of this divide matters, and concludes by drawing out some implications for how we should progress the research stream.     

企业战略、人力资源管理系统与企业绩效的关系研究

有关战略人力资源管理的研究认为,企业通过人力资源实践活动之间的契合,及它们与企业目标之间的契合,可以获得高附加值、稀缺性、难以模仿和不可替代的竞争优势。本研究采用形态理论的方法探讨人力资源管理实践组合与企业战略之间的最佳契合模式.研究发现,不仅企业战略对人力资源实践组合有显著影响,而且人力资源管理系统与企业战略的交互作用对企业利润和销售额增长率也有显著影响。本研究的结论在一定程度上支持了人力资源管理系统与企业战略的交互作用有助于提升企业绩效的观点。     

Performance management practices in lean manufacturing organizations: a systematic review of research evidence

This paper provides the first systematic look into the existing research on performance management (PM) practices employed in lean manufacturing organisations (LMOs). It adopts a systematic review method to examine the evidence generated in the period 2004 – 2015 and uses a comprehensive PM framework to synthesise the findings. The results suggest that PM practices that have the most prominent role in LMOs are those that, firstly, are located closest to front-line actions and, secondly, explicitly address operational realities. This calls into question the primacy of accounting-driven controls in LMOs, suggesting that operational controls may be more effective than top-down accounting-based PM practices. The results also confirm the bias towards operational-level issues but suggest that LMOs may integrate the operational and the strategic levels by using PM practices that drive organisational learning through employee involvement and engagement.     

Lean practices and their effect on performance: a literature review

This paper introduces a literature review of 83 studies dealing with the degree of adoption of lean manufacturing practices around the world, and the links between those practices and organisation performance. The results of this study revealed that lean practices application still occurs in a fragmented way, disregarding the systemic linkage that is essential to lean manufacturing. Forty-one articles have suggested a positive effect of lean practices in at least one operational, financial and/or environmental performance metric. Nevertheless, five studies indicated that some lean practices had a negative effect on operational or financial performance. High demand variability, a perceived result of long-term lean manufacturing implementation, a country/company’s organisational culture and the difficulty of traditional costing production systems to measure and compare investments and economic gains from adopting lean manufacturing over time are some of the reasons to explain that negative effect of lean practice on performance.     

Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters

The value chain of many business enterprises is increasingly required to demonstrate the profitability of their primary activities, starting from inbound logistics to operations, outbound logistics, marketing sales, and finally to services. The adoption of green logistics management (GLM) presents an opportunity for Chinese manufacturing exporters to competently respond to the escalating expectation of the international community for resources conservation and to achieve environmental performance profitably. This study makes several important contributions to the literature on managing logistics with environmental considerations. First, the authors identify the components of GLM: (i) procedure-based practices, (ii) evaluation-based practices, (iii) partner-based practices, and (iv) general environmental management practices. Second, they relate GLM to environmental and operational performance in a developing country context. Third, they identify the institutional and operational antecedents that prompt the adoption of GLM by export-oriented manufacturing enterprises in China. Fourth, they examine the moderating effect of environmental regulatory pressure on the GLM-performance linkage. The results are based on a survey of manufacturing exporters in China. The commonly held view that economic motivation is related to the adoption of GLM is not supported. However, GLM positively affects both environmental and operational performance, and regulatory pressure enhances the GLM-performance relationship.     

Manufacturing flexibility and advanced human resource management practices

This article analyses the connection between the use of advanced human resource management (HRM) practices, individually and as a system, with manufacturing flexibility. The results show a positive relationship between the implementation of advanced HRM practices and manufacturing flexibility. While most of the advanced HRM practices analysed show higher levels of implementation in flexible firms, no differences are observed in training efforts. Flexible firms are more prone to implement systems of advanced HRM practices.     

The impact of human resource management on organisational performance: Theory and research

This article by Jean-Marie Hiltrop, considers some of the models which have studied the link between HRM and organisational performance. As yet, there is little real evidence, but it is growing and indicates that corporate HRM policies and practices - including ‘best’ practices - are associated with high (financial) performance, and can encourage employee behaviour and attitudes towards strengthening the competitive strategy of an organisation. But such ‘best’ practices can vary widely and even contradict each other. Questions are raised in the article about these ‘best’ practices.The first part of the article looks at the relevant theoretical models, and the second part reviews the findings of recent empirical studies which have evaluated the effects of distinctive HR practices on organisational outcomes.     

South African MNCs' HRM Systems and Practices at the Subsidiary Level: Insights From Subsidiaries in Ghana

Despite the extensive literature on the human resource management (HRM) systems and practices of multinational companies (MNCs) from developed countries, there are serious gaps in our understanding of emerging countries multinationals HRM practices and systems at both home and host countries. This study empirically examines the similarities and differences of South African (SA) MNCs' HRM systems and practices at both the headquarters in SA and at the subsidiaries operating in Ghana. The study reveals that with the exception of compensation and industrial relation practices which are localised, EMNCs HR systems and practices are mainly transferred to subsidiaries with minimal adaptation to contextual realities. Further research and practical implications are discussed.     

Human resource strategy to improve organizational performance: a route for firms in Britain?

Performance, in the context of organization, is not only a broad concept which has been used synonymously with productivity, efficiency, effectiveness and, more recently competitiveness, it has also been a subject of study for social scientists from a wide range of disciplinary perspectives. More recently, efforts have been made by human resource management (HRM) theorists to try to establish a causal link between HRM and performance. This has led to a growing number of studies which examine the potential contribution that good human resource policy can make to improving organizational performance. This paper is not concerned with the conceptual debate of HRM and performance. Rather, it explores whether adopting good HR practices to improve performance is a practicable approach to organizations in the UK. Drawing on existing empirical evidence from other studies, the paper reviews the strategies British firms deploy to improve labour productivity. In particular, the issue of whether they use the 'high-road' HRM or 'low-road' HRM strategy to enhance performance is investigated. This paper concludes by suggesting that high-road HRM may lead to better organizational performance, but it may not be a strategy that firms opt for, given the historical, social and institutional context of employment relationships in Britain.     

Exploring the link between human resource practices and turnover in multi-brand companies: The role of brand units’ images

Using exploratory qualitative research undertaken in a multi-brand fashion company, this article investigates the role that brand units’ images play in the link between human resources management (HRM) practices and employee internal and external turnover. Our results suggest that the existence of imbalanced and differently attractive brand units’ images might weaken or remove the effectiveness of corporate HRM practices in keeping internal and external turnover rates low. This because employees may be interested in transferring to the most appealing brand(s) or, if not possible to do so, leaving the company. This article contributes to the debate regarding the use of HRM practices in multi-brand companies, especially in industries where both the brand and the product have a highly-symbolic content. Based on our conclusions, we recommend that brand units with less prestigious images compensate for their lower attractiveness with specific brand unit HRM practices to attract and retain their employees. Theoretical and policy implications of the findings are discussed.     

The relationship between HRM practices and organizational commitment of knowledge workers. Facts obtained from Swiss SMEs

This paper explores the effects of human resource management (HRM) practices in Swiss small-to-medium enterprises (SMEs). More specifically, the main objective of this study is to assess the impacts of HRM practices developed in Swiss SMEs upon the commitment of knowledge workers. Using data from a survey of over 198 knowledge workers, this study shows the importance of looking closer at HRM practices and, furthermore, to really investigate the impacts of the different HRM practices on employees' commitment. Results show, for example, that organizational support, procedural justice and the reputation of the organization may clearly influence knowledge workers' commitment, whereas other HRM practices such as involvement in decision-making, skills management or even the degree of satisfaction with pay do not have any impact on knowledge workers' commitment.