High-Performance Work Systems in Professional Service Firms: Examining the Practices-Resources-Uses-Performance Linkage

The fairness of human resource management practices: an assessment by the justice sensitive

Introduction

Although fairness is a pervasive and ongoing concern in organizations, the fairness of human resource management practices is often overlooked. This study examines how individual differences in justice sensitivity influence the extent to which human resource management practices are perceived to convey principles of organizational justice.

Methods

Analysis was performed on a matching sample of 283 university students from three academic units in two countries having responded at two time points. Justice sensitivity was measured with the 40-item inventory developed and validated by Schmitt et al. (2010). Respondents were instructed to indicate to what extent each of 61 human resource management practices generally conveys principles of organizational justice.

Results

Justice sensitivity was positively associated with subsequent assessments of the justice contents of human resource management practices. The distinction between self-oriented and other-oriented justice sensitivities was helpful in determining perceptions of these human resource management practices and of a subset of pay-for-performance practices.

Discussion

The findings inform current research about the meanings borne by human resource management practices, and also increase understanding of entity judgment formation as an important aspect of systemic justice.

Toward a new model of human resource management practices: construction and validation of the High Wellbeing and Performance Work System Scale

Introduction

The integrated mutual gains model suggests five provisional sets of human resource management (HRM) practices that should benefit both employees and organizations and, as such, be explicitly designed to have a positive impact on wellbeing, which, in turn, can affect performance.

Methods

An extensive review of the literature on scales that used a high-performance work system to assess HRM practices, as well as an extraction of items related to the theoretical dimensions of the integrated mutual gains model, were performed. Based on these preliminary steps, an initial scale with the 66 items found most relevant in the literature was developed and assessed regarding its factorial structure, internal consistency, and reliability over a two-week period.

Results

Exploratory factorial analysis following test -retest resulted in a 42-item scale for measuring 11 HRM practices. Confirmatory factor analyses resulted in a 36-item instrument for measuring 10 HRM practices and showed adequate validity and reliability.

Discussion

Even though the five provisional sets of practices were not validated, the practices that emerged from them were assembled into alternative sets of practices. These sets of practices reflect HRM activities that are considered conducive to employees' wellbeing and, consequently, their job performance. Consequently, the "High Wellbeing and Performance Work System Scale" was created. Nonetheless, future research is necessary to evaluate the predictive capacity of this new scale.

When are clients helpful? Capitalising on client involvement in professional service delivery

Professional service firms apply specialist knowledge to create customised solutions to client problems. In their work, teams of professionals undertake projects in which clients may be closely involved in co-creating solutions. However, we know little about the conditions under which client involvement contributes to better performance. We examine the direct and conditional contribution client involvement can make to project success and propose team bonding capital as a moderator. We conduct multi-level analysis of data from 58 project managers and 171 consultants nested in project teams. We find a positive impact of client involvement on both team performance and team member idea creativity. Team bonding capital moderates the relationships client involvement has with both team performance and individual member idea creativity, where the impact of client involvement is greater when team bonding capital is high. Implications for theory and practice are discussed.

The impact of self-directed team on high-performance organization with the mediating role of knowledge sharing culture: Organizational support as a moderator

The primary aim of this investigation is to identify the relationship between self-directed teams and high-performance organizations (work). Furthermore, exploring the mediating role of knowledge-sharing culture with the self-directed team and high-performance organization relationships. Moreover, this study analyzed the moderating role of a sense of organizational support in the relationship between knowledge-sharing culture and high-performance organizations. Using the PLS-SEM approach (SmartPLS 3.3.7) in this study, we obtained data from employees of high-tech enterprises listed on the Shanghai Stock Exchange China to analyze this study. The present research seeks to determine the direct and indirect effects of the study-related factors on the outcome of the investigation. According to the findings, a self-directed team positively impacts knowledge sharing culture, knowledge sharing behavior, knowledge sharing strategy, and mutual trust among its members. Knowledge-sharing culture has no mediating role and its component in the relationship between independent and dependent constructs. This study also indicated that a sense of organizational support has no moderating effect on the relationship between a knowledge-sharing culture and high-performance organizations. This study may practically contribute to high-tech enterprises to develop and implement business development and proper self-directed team, knowledge-sharing culture, and sense of organizational support, and consequently, can contribute to the growth of overall high-performance organizations.

The impact of high performance work system on employee service performance: the role of organizational support and organizational identification

Purpose

An important objective of human resource (HR) research is to understand how HR practices can influence employee attitudes and behaviors in order to help achieve organizational goals via employee performance. The paper studies the relationship between High Performance Work System (HPWS) and employee service performance (ESP) via organizational support (OS) and organizational identification (OI). On one hand, this may help understand the “black box” between HPWS practices and ESP. On the other hand, while OS refers to employees' evaluations of favorable treatment from the organization and HPWS represent a significant channel the organization uses to communicate its support to employees, OS and OI literatures have not comprehensively examined the effect of HPWS practices on employee OS and OI beliefs.

Design/methodology/approach

This study takes a quantitative approach and employs hierarchical regression from a sample of 467 employees in 10 commercial banks in Sierra Leone.

Findings

The results show a positive relationship between HPWS practices and ESP and at the same time OS and OI partially mediate the relationship, suggesting that employees draw inferences from the HPWS-related treatment they receive in assessing the supportiveness of the organization.

Research limitations/implications

In this study, the authors put forth an innovative conceptual model of performance management by testing the relationships which have not been tested before, especially in a new context of banking industry in Sierra Leone. By implementing HPWS practices that demonstrate the organization cares about the employees' well-being and values their contribution, organizations are likely to be perceived as offering high levels of support for the employees.

Originality/value

The results of this study add to our knowledge about the antecedents of OS and OI. Moreover, while OS and OI research has been largely rooted in the organizational behavior literature, this study bridges the human resource literature and the organizational behavior literature, by combining HPWS, OS, OI and ESP.

High Performance Work Systems, Justice, and Engagement: Does Bullying Throw a Spanner in the Works?

High performance work systems (HPWS) have typically been shown to positively influence employee attitudes and well-being. Research in the realm of HPWS has, in this respect, established a clear connection between these systems and employee engagement through organizational justice. In this study, we analyzed if being bullied affects this relationship. Using reasoning from Affective Events Theory (AET), we expected that the positive association between HPWS and engagement through perceptions of organizational justice is impaired by experiences of workplace bullying. Moreover, we expected a remaining direct effect between HPWS and engagement, also attenuated by bullying. Our results in a sample of service workers in Finland (n = 434) could not support the moderating role of bullying in the indirect effect. Workplace bullying did, however, impair the remaining direct relationship indicating it disrupts the positive effect of HPWS on engagement. In all, whereas HPWS were found to be beneficial for not bullied respondents, it was associated with decreased engagement for the bullied. Our findings further underscore the importance of preventing bullying in our workplaces, as it may significantly alter the outcomes of positively intended HR practices into an undesired result.

How do design parameters of firm governance affect collaboration process dimensions in professional service firm?

This article studies the effects of firm governance on the collaboration process dimensions in a public corporation type of professional service firm with one global integrated organization structure and a partnership type of professional service firm with network organization structure. One conceptual model is developed to structure the analysis and guide five expert interviews. This study finds that in the public corporation type of professional service firm, with one global integrated organization structure, the structural dimension of the collaboration process plays a more significant role than the agency and social capital dimension in establishing the collaboration process. On the contrary, in the partnership type of professional service firm, with a network organization structure, the social capital and the agency dimensions of the collaboration process play a more significant role than the structural dimension in establishing the collaboration process. It leads to the practical implementation in a partnership type of professional service firm, and the collaboration process would be started by building the social capital and agency dimensions. In a public corporation type of professional service firm, the collaboration process would be started by following the structural dimensions because being a public corporation forces the firm to have a defined and documented governance and administration (structural dimension).

HR flexibility and firm performance in professional service firms

Human resource (HR) flexibility emerges as the most critical source of flexibility for professional services firms (PSFs), given that the success of these companies depends on the knowledge, expertise and behaviors of their employees. Nonetheless, few empirical studies have analyzed the extent to which the characteristics of the workforce explain the results of this type of firm. This study attempts to advance in this line of research by analyzing the influence of HR resource flexibility dimensions (skill flexibility – SF and behavior flexibility – BF) on PSF performance. It also examines whether HR coordination flexibility (CF) strengthens the effect of SF and BF on performance. Matched data from 97 general managers and 291 professionals in a sample of Spanish PSFs is used to test the hypotheses through structural equation modeling methodology. The study demonstrates that employee BF has a significant effect on the development of new services in PSFs. The moderation model shows that HR CF increases the influence of BF on the development of new services. Contrary to what was expected, no significant relationship between SF and PSF performance was found.

Knowledge-sharing mechanisms: human resource practices and trust

Purpose

This study sought to examine the detailed mechanism of employee perceptions of commitment-based human resource practices (CBHRPs) to employee knowledge-sharing behavior (i.e. knowledge collection and knowledge contribution) by unveiling the “black box” of trust in the workplace.

Design/methodology/approach

Based on data from 383 employees in China's Top Innovators in 2016, path analysis was used to test six hypotheses.

Findings

Employee perceptions of CBHRPs, namely, selection, incentives and training and development, were positively related to employees' trust in coworkers, supervisors and the organization, which in turn was positively related to employees' knowledge collection and contribution behavior. Trust in the workplace fully mediated the relationship between employee perceptions of CBHRPs and employee knowledge sharing. Among CBHRPs, training and development practices had the strongest effects on employees' knowledge-sharing behavior. Among trust, trust in coworkers was found to be the closest related to knowledge-sharing behavior. Knowledge contribution was more related to CBHRPs through trust than knowledge collection was.

Practical implications

Organizations can employ CBHRPs to enhance trust in the workplace and encourage employees to contribute toward and collect knowledge. Organizations need to pay more attention to employees' long-term investment, such as employee training and development. Organizations can perform human resource practices consistently and ensure that all employees are aware of practices in use to enhance employees' understanding of these practices.

Originality/value

This study provides a detailed understanding of the relationship between human resource management and knowledge sharing. It also presents new empirical evidence in the research fields of human resource management and knowledge management, with implications for the development of employees' knowledge-sharing behavior.

Examining the External Antecedents of Innovative Work Behavior: The Role of Government Support for Talent Policy

The innovative work behavior (IWB) or creativity of employees is regarded as the key to the sustainable innovation performance of an organization. In the field of human resource management (HRM), the relationship between an organization's high-performance work system (HPWS) and IWB has been studied extensively. However, the current understanding of organizational external antecedents is limited. Our paper focuses on an extra-organizational government support factor, government support for talent policy (GSTP). Similar to HRM policies within an organization, GSTP also has an ability-motivation-opportunity framework that may influence the IWB of employees. We integrate the resource dependence theory, institutional theory, and theory of planned behavior (TPB) to propose a theoretical model of the mechanism of GSTP influence on IWB. Using a structural equation modeling approach, we empirically verify the hypotheses in a survey dataset of HRM practitioners in 152 technology-based enterprises in China. The results indicate that the external antecedent, GSTP, positively influences the innovative attitude, subjective norm, and perceived behavioral control of HRM practitioners in the organization. Innovative attitude and perceived behavioral control completely mediated the relationship between GSTP and innovative intention. Moreover, there is a distal indirect effect between GSTP and IWB. The paper contributes to filling a gap in the innovation policy literature. In practice, both HPWS and individual employees should be concerned about the possible role of GSTP.

Developments in the HRM–Performance Research stream: The mediation studies

Testing Human Resource Management (HRM)’s effect on organisational performance has been a core part of HRM research over the past 25 years. Whereas pioneering studies in the field neglected the mechanisms explaining this relationship, treating it as a ‘black box’, in the last decade the focus has been on examining the mediators of this relationship. Most recently, a series of reviews has been more critical of the field, particularly highlighting its diversity and underplaying of employee involvement, a concern central to its inception. This paper assesses these mediation studies in the light of these concerns, which provide criteria by which I summarise them and assess the extent to which they have advanced the field. The analysis demonstrates that the main problems of the black-box studies remain: the misalignment of the use of additive indexes and the theory of synergistic relationships, confusion over analysis methods, inadequate justification of the selection of practices in the empirical investigations, and under-representation of employee involvement. The researchers continue to present the field as a unified one. However, since the majority of studies are centred on high-performance work systems, there is a clear schism across them between these studies and those centred on high-involvement management. The paper reinforces the importance of this distinction, on the basis that a high-performance work system is a technology, a set of sophisticated personnel practices, whereas high-involvement management is a managerial philosophy or orientation towards fostering employee involvement. The paper concludes by suggesting ways of overcoming the recurring problems in HRM–performance research, and how these vary between the two perspectives.

Facilitating the Implementation Process of High-Performance Work Systems: The Role of Authentic Leadership

Although substantive research has devoted increasing attention to variability in human resource practices at the organization, group, and individual levels, the critical role of line managers’ leadership in predicting this variability in the human resource management delivery and implementation process has been overlooked. Drawing from social information processing theory and human resource (HR) attributions theory, this study proposes that authentic leadership moderates the positive relationship between department-level high-performance work systems and employee-perceived high-performance work systems. Moreover, employee-perceived high-performance work systems can enhance employees’ thriving at work through commitment-focused HR attributions (well-being and performance). Analyzing the matched data from 145 departments and 834 employees, we found that the extent to which department-level high-performance work systems are positively related to employee-perceived high-performance work systems depends on authentic leadership within departments. We also found that employee-perceived high-performance work systems will result in commitment-focused HR attributions (well-being and performance), which in turn motivate employees to thrive at work. This study sheds light on whether and how line managers’ leadership influences the HR management process.

The effects of high performance work systems in employees' service-oriented OCB

The present research investigates the effects of "High Performance Work Systems (HPWS)" on employees' "work engagement" and "service-oriented Organizational Citizenship Behavior (OCB)", through the development of a social and justice climate. In doing so, "Partial Least Squares Structural Equation Modeling (PLS-SEM)" was applied based on a convenient sample of 448 customer-contact hotel employees across ten Greek hotel organizations. In summary, the study reveals first the valuable contribution of HPWS towards the development of a justice and service climate, which in turn influence positively employees' work engagement. As a consequence, employees respond by exhibiting extra role behaviors and by engaging in service-oriented OCB. Overall, the findings clarify the mechanism behind the HPWS process, known as the "black-box", a valuable knowledge for professionals practicing Human Resource Management (HRM).

Innovative Behaviors, Employee Creativity, and Sustainable Competitive Advantage: A Moderated Mediation

It is challenging for enterprises that lack innovation and creativity to survive successfully in the market. Employee top role performance is not always sufficient to gain a competitive advantage, in which innovative behaviors and creativity can be counted as necessary ingredients to build. This study proposed and tested employee innovative behaviors (IB) and creativity as mediator and moderator, respectively, of the impact of high-performance work practices (HPWPs) on sustainable competitive advantage (CA). The resource-based view and job demands resources model provided the theoretical underpinnings for the developed hypotheses that were tested using a sample of 323 customer-contact employees of 4- and 5-star hotels. The results indicated that HPWP indirectly predicted CA via IB. Also, creativity moderated the impact of HPWPs on innovative behaviors positively and on competitive advantage negatively. Employee innovative behaviors can generate substantial returns to service organizations competing with quasi-homogeneous end-products. The relevant theoretical and practical implications are further discussed. The scope of the study calls for caution in the generalizability of the overall findings. The research acknowledges the need to extend the findings by explicitly accounting for national cultural profiles. This study fills the dearth of research in service innovation in the hotel industry by testing the mediating effect of IB on the HPWPs CA nexus and reveals the moderating role that employee creative traits have in these relationships.

A congruence perspective on how human and social capital affect learning capability and innovation

Human capital and social capital are vital for sustainable development of organization, but existing studies are inadequate to explore the synergistic effect of them on organizational behaviors or organizational outcomes. The research employed multiple-source questionnaire to collect data of more than 400 R&D firms from leaders and corresponding employees in Chinese context. Bootstrapping method and response surface were used to analyze the associations between all the parameters. The results showed that: (1) in the case of the in-congruence between human capital and social capital, learning capability of R&D firms is at highest level when human capital is at low level and social capital is at high level; (2) learning capability partially mediates the impact of human capital and social capital on innovation performance; (3) environmental dynamism and environmental competitiveness have a joint moderating effect on the relationship between learning capability and innovation performance.

Intellectual capital and organizational ambidexterity in Chinese and Irish professional service firms

Purpose

– Organizational ambidexterity enables firm to simultaneously exploit existing resources and explore new resources. It is associated with high levels of organizational performance. The purpose of this paper is to identify key internal management resources which contribute to building organizational ambidexterity. In particular, this study examines the impact of intellectual capital, i.e. human, social, and organizational capital, on organizational ambidexterity which in turn influences firm performance.

Design/methodology/approach

– The research was conducted within the context of professional service firms due to the importance of intellectual capital and organizational ambidexterity. Data were collected from 112 Chinese (cross-sectional design) and 93 Irish accounting firms (time-lagged design).

Findings

– Results provide support for the linkage of intellectual capital to organizational ambidexterity and firm performance. Interestingly, findings are mixed regarding the impact of the three types of capital resources on organizational ambidexterity across both countries.

Practical implications

– This study finds that various components of intellectual capital facilitate organizational ambidexterity which in turn improves firm performance. Therefore the authors provide managers with evidential support for the salience of intellectual capital in enabling organizations to simultaneously engage in exploiting existing resources while also exploring new ideas and opportunities.

Originality/value

– This study is unique in that it highlights the importance of internal management resources in building up organization’s ambidexterity capability. The link between intellectual capital and organizational ambidexterity was established using a rigorous research design which has not been done before. It also emphasizes the role of people in leading to organizational effectiveness via developing organizational ambidexterity. Furthermore the evidence is gathered in two countries.