Top PDF The Impact of Strategic Human Resource Management on Organizational Performance

Campbell’s (1999) theory defines performance as behavior or action relevant to the attainment of an organization’s goals that can be scaled, that is, measured. Moreover, job performance is defined as what one is paid to do, or what one should be paid to do. The theory states that the measurement options, be they ratings from a supervisor, peer, or self, a simulated work sample, or hard criteria (e.g. tallying revenue generated, costs saved, customer complaints, or some variant of a computerized performance assessment) besides being valid, reliable, and not deficient should be free of contamination from sources of variation that are not under the control of the individual (e.g. differences in technology impacting a person’s performance). Situational enhancers or constraints, if not taken into account in an appraisal, can contaminate the mean, variance, or both with regard to an individua l’s performance. Observation and interpretation hold the key to the establishment of effective criteria. Yet, an ongoing problem in appraising people is the lack of reliability in the observation of their behavior (Ronan and Prien 1971). This unreliability is largely attributed to well-known rating errors such as “first impressions”, “halo”, and “similar-to- me”. Lifson (1953) found that up to one-third of performance measurement variance is due to rater differences despite the fact that the observers had considerable experience in observing and evaluating people in the workplace. Lance (1994) corroborated this finding. Experience, however, is not a substitute for training. To solve the problem regarding lack of reliability, an observer must be trained. In this section, training programs that have been shown to be effective are described, and the necessity of taking context into account is explained (Boxall, Purcell and Wright, 2007).

link with performance through a longitudinal latent comprehensive class study. Way and Johnson (2005) theorized on the effect of strategic human resource management (SHRM) and outlined a framework to provide scholars with the theoretical tools. These tools are used to develop construct measures of organizational effectiveness and to generate prescriptive SHRM models that can accurately explicate and evaluate the primary linkages of SHRM.

The key to an organizational success depends entirely on the commitment of employees toward organization. Commitment toward organization is more than just a formal membership; it encompasses the attitude to firm and willingness to pursue all things for the sake of firm. Organizational commitment is a situation where an employee in line with a specific organization as well as the goals and wishes to maintain membership in organization (Robbins & Judge, 2007). Bakan et al. (2011) stated, the success of an organization depends not only on how the organization makes the most human competences, but also how it encourages commitment to an organization

V // ) /+0)++0</@& )*0+0).11W) 4 *0 ) *0+3) KIANTO, A. et al. The impact of knowledge management practices on organizational performance. In: EUROPEAN CONFERENCE ON KNOWLEDGE MANAGEMENT, ECKM. [s.n.], 2013. Proceedings… 2013. v. 1, p. 356 - 361. ISBN 978-1-62993-140-

V // ) /+0)++0</@& )*0+0).11W) 4 *0 ) *0+3) KIANTO, A. et al. The impact of knowledge management practices on organizational performance. In: EUROPEAN CONFERENCE ON KNOWLEDGE MANAGEMENT, ECKM. [s.n.], 2013. Proceedings… 2013. v. 1, p. 356 - 361. ISBN 978-1-62993-140-

performance and affect its effectiveness (Ali Ahmadi et al., 1383, p. 87). Therefore, using emotional intelligence can enhance an organization's organizational belonging and thus improving organizational performance and effectiveness of staff provided. Attached is the organizational commitment relationship. Organizational attached is the amount that an employee's identification with their work, actively worked in his job and his job performance as something important for your valuable prizes, given that (Robbins, 2001). Randall and Kohut (1991) in their studies have described the organizational accrued income or organizational commitment, and job prerequisite. The findings of the study results Tapia and Marshall (2003) have shown that emotional intelligence is higher in women than men, is consistent. The findings of the study by Goleman's research results Datnyl 1995 between age and work experience with emotional intelligence was directly expressed, differ. That relationship was reversed. this means that with age and experience has been less emotional intelligence Perhaps it can be explained this way Or research environments in previous research (University) attributed, The findings of this study with the results of Brown and colleagues (2003) Karsv, Meyer and Salur (2002) have shown that emotional intelligence related field of work and education, in line withInterpretation of results Organizations enhance employee performance and its members are seeking various purposes. It enables increased performance that failure to assess the skills of employees and using educational programs to enforce it. aside from this can be used to increase the performance of the base or basis for the allocation of the reward. Traditional methods of performance enhancement are often used with two main objectives of the organization are: One use of it, deciding issues such as bonuses, promotions, demotions, transfers and retention of employees. Since the most important tool to assess and measure system performance boost skills and activities of individuals in each organization, as a result, the system has an important role in achieving the goals of human resource management The results of this study, the

In a current complex, uncertain socio-economic context, the key to success in any field of activity lies in strategic thinking. Successful organizations have realized that a human resource is the main source of competitive advantage, thus enhancing the strategic role of human resources management. Not incidentally, nowadays experts in the field speak of a true “magic triangle” made up of a business plan, financial planning and strategic planning of human resources whose objectives are to ensure the necessary human resources, the suitability to the nature of an organization and the effective use in achieving the latter’s goals.

Prior research has indicated that employee turnover is detrimental to both individuals and organisations. Because a turnover intention in the workplace is detrimental, several factors have been suggested to better understand the reasons why employees may decide to leave their organisations. Some of the organizational-related factors that have been considered by previous research include perceived organizational justice, job satisfaction, perceived psychological contract breach, and perceived organizational support, among others. Despite these empirical studies, literatures indicate that less attention has been paid to the influence of perceived organisational politics, organizational trust, and perceived human resource practices management (HRM) practices on employee turnover. Hence, the present study fills in the gap by examining the relationship between perceived organisational politics, organizational trust, perceived human resource management practices and employee turnover among Registered Nurses in Nigerian public hospitals using multiple regression analysis technique. One hundred and seventy five Registered Nurses participated in the study. Result indicated that perceived organisational politics was significantly and positively related to turnover intentions. The result also showed that both organizational trust and perceived human resource practices were significantly and negatively related to turnover intentions. Theoretical and practical implications of the results are discussed.

This paper presents an empirical investigation to study the impact of total quality management (TQM) as well as market orientation on organizational performance on some Iranian small and medium enterprises (SMEs). The study designs a questionnaire in Likert scale and distributes it among some experts in city of Shiraz, Iran. Using structural equation modeling, the study determines that three components of market orientation including intelligence generation, intelligence dissemination, and responsiveness through TQM influences on organizational performance components including financial and non-financial performance as well as efficiency. In addition, TQM components including training, process management, supplier quality management, employee relationships, quality of data and reports and top management commitment influence positively on organizational performance in SMEs.

Managers play a central role in the internal organization and the strategic initiatives of the firm (Nag, Hambrick & Chen, 2007). Turning back to the classic approach to strategy, there is an important and central recognition of the role of top managers (Ansoff, 1965). Researchers have sought to understand the importance of CEOs and top management team for strategic actions and firm performance (Shepherd, McMullen & Ocasio, 2017). Unlike the market, the firm is not a self-coordinated organism guided by an invisible hand. The ‘manager’s hands’ are the coordinating center for resource allocation within the firm, aimed at achieving a common and preconceived goal (Chandler, 1962). Thus, planning systems, whether formal or informal, and the control systems adopted during strategic implementation are critical in obtaining competitive advantage. In effect, the administrative center goes hand in hand with the application of the firm resources and takes steps to make the necessary corrections. In this flow of activities, the organizational structure affects the firm’s behavior, and the type of organization adopted is related to the value creation (Keats & O’Neil, 2001) and change (Amburguey & Dancin, 1994).

Performance management strategy aims to provide the means through which better results can be obtained from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. It involves the development of processes for establishing shared understanding about what is to be achieved, and an approach to managing and developing people in a way that increase the probability that it will be achieved in the short and longer term. Evaluating periodically the human resource inside the organization can increase the motivation and commitment of employees and enable individuals to develop their abilities, increase their job satisfaction and achieve their full potential to their own benefit and that of the organization as a whole. Unfortunately not all organizations provide opportunities for personnel evaluation. An example: Personnel evaluation in Latin America and Spain. 114

In terms of theory building, this study contributes to existing business literature. First, from a theoretical perspective, a number of past studies have analyzed the impact of EI on EP, EI on OCB, JS on EP, but we were the first to examine this association in a hotel context, which is a work environment and front line employees have significant role in customer satisfaction and retention. Emotionally intelligence individuals may also be more likely to remain in EP in which they are satisfied; this contention may also support the linkage between EI and EP. Again, due to the high human components that characterize the hotel business, this casual connection between EI, OCB, JS and EP is the one that must be well understood by those manager and making decisions in the service sector, which have high interaction by customer like hotels. Therefore, it would be informative for future research to investigate potentially intervening factors in the components of this conceptual model in the hotel industry.

Parametric tests were used for comparing both age group and level of education factors, although a few were not normally distributed as per normality tests that were conducted earlier and not indicated in this case, parametric techniques were used because of their robustness. A one way between groups analysis of variance was run to explore the impacts of both respondents’ age group and level of education on how they regarded factors of the study on questions related to performance management in ABC Post. For age group, subjects were classified into three groups (Group 1: 30 years or younger; Group 2: 31 to 40 years and group 3: older than 40 years) and for level of education, three subjects were also identified for measure (Group 1: below matric; Group 2: matric and group 3: tertiary level). The Levene’s homogeneity of variance tests were used to analyze the extent of equality on variance scores for both factors and the grouping measures; as indicated on table 4, the human resources factor resulted to inequality of variances by the significant value of .013 being lower than the recommended sig. value of .05 violating the assumption of equality on the age group leading to subsequent robust test of equality of means conducted to tests the differences. There was no significant difference found on the mean scores on the age group for the human resource factor at sig. value of .157.

Several studies have found that SIS supports the strategic planning process (NEWKIRK; LEDERER, 2006; SINGH; WATSON; WATSON, 2002; YOSHIKUNI; JERONIMO, 2013) and strategy content by facilitating strategic awareness through the dissemination of strategic objectives/goals to the entire local organization (CHEN, D.Q. et al., 2010; SEGARS, A.H.; GROVER; TENG, 1998); in the analysis of the company’s overall environment, by making it possible to map opportunities and threats in the external environment (DAMERON; LÊ; LEBARON, 2015; NEWKIRK; LEDERER, 2006; XUE, L.; RAY; SAMBAMURTHY, 2012); in the strategy design, by aligning internal—technological, human, and organiza- tional resources and opportunities and mitigating threats (ARVIDSSON; HOLMSTRÖM; LYYTINEN, 2014; LEIDNER; LO; PRESTON, 2011; SINGH; WATSON; WATSON, 2002); in the formulation, by selecting strategies to develop new business processes ena- bled by the IT/IS architecture (JOHNSON; LEDERER, 2013; LEIDNER; LO; PRESTON, 2011; MARABELLI; GALLIERS, 2017; MERALI; PAPADOPOULOS; NADKARNI, 2012; SHOLLO; GALLIERS, 2016); and in the implementation and monitoring of the bu- siness strategy, by supporting the change process, and the execution and control of action plans (KAPLAN; NORTON, 2008; ROUHANI et al., 2016; SHOLLO; GALLIERS, 2016; SINGH; WATSON; WATSON, 2002).

Interpretation of the results must take the limitations of our study into account. First, we used survey data with single respondents, providing no estimate of the magnitude of error due to rater sampling (Gerhart, Wright, & McMahan, 2000). Our results derive from questionnaires that were completed by the senior HRM manager, dated some years ago, in each company and did not include the employeesÕ perspectives. Some of the conclusions may be biased, particularly in what concerns our concept of HRM Centrality. Future research should incorporate a multilevel analysis, to reduce the im- pact of any bias from a specific category. We emphasize, however, some of the practical difficulties in doing so, con- sidering that, during processes of mergers and acquisitions, all human factor issues are politically sensitive and compa- nies may be reluctant to participate (Cunha, 1997).

An evaluation of the impact of entrepreneurial characteristics on the performance of small scale manufacturing industries in Nigeria by Adegbite, Ilori, Irefin, & Abereijo, & Aderemi, (2006) identified the entrepreneurial characteristics and the factors that influenced optimum business performance of 100 randomly selected small-scale manufacturing industries engaged in food and beverage; textile and wearing apparel; wood and wood products; chemical and pharmaceuticals; and fabricated metal products. The results showed that human resource factors and the sales revenue were found to be inadequate and severely inhibited the potential of the entrepreneurs for performance and growth. However, length of years in business and working experience were found to have positive contribution on their performance. While majority (7) of the 10 Personal Entrepreneurial Characteristics (PEC) of the respondents made negative contribution on the sales revenue, only demand for efficiency and product quality, information seeking; and systematic planning and monitoring had positive impact. The study concluded that the negative attributes exhibited by the respondents in most of the PECs were critical factors in the dismal performance of the small-scale manufacturing industries, which need to be developed in the entrepreneurs through training.

Regarding the planning function, SROI supports the design of strategic organizational options (Lingane and Olsen, 2004), since it focuses on what issues “might change or enhance in the future” (SVA, 2002: 14), not only to improve the value created, but also to improve the performance of the organization over time, always aligned with its strategic goals. In its management function, SROI controls the “ongoing operational management and capital decisions” (Lingane and Olsen, 2004: 5). According to the literature, it is used to control forecasts, to improve the performance of an organization, to adjust spending and the limit of involvement in a certain activity/project if it is no more profitable (Arli and Zappalà, 2009), to facilitate the allocation of resources (Ryan and Lyne, 2008), and also to facilitate decision- making processes (Zappalà and Lyons, 2009). With its assessment function, SROI also seeks to evaluate the efficiency and effectiveness of investments made, in both at monetary and non- monetary terms. This assessment phase must boost real changes (Nicholls et al, 2009) in the maximization of social value and at the organizational level as well. Through an optimized organizational work, the idea is to reflect through SROI overall results, what went wrong and what could be improved, feeding “directly into the strategic planning that the organization undertakes” (SVA, 2002: 14).

Chuang et al. (2013) investigated the relationship between human resource management (HRM) practices and organizational social capital (OSC) and the moderating impacts of industrial characteristics. They reported that HRM practices that concentrate on facilitating relationships among employees were positively associated with OSC, and the relationship was stronger for firms operating in less regulated industries. In addition, knowledge intensity itself indicated no moderating impact but seemed to join industrial regulation in impacting the link of HRM practices and OSC.

The development of networks with universities, research institutes, oil companies or suppliers for R&D purposes has strongly increased over the last 30 years and these partners have become important entities for technology inventions, which was mainly supported by Petrobras’ Research and Development Center Leopoldo Américo Miguez de Mello (CENPES) that was created in 1963 (Morais, 2013). Since it’s beginning, CENPES focused on identifying, selecting and developing partnerships that could contribute to Petrobras’ strategical goals and to aggregate complementing competencies inside and outside the company. The operational technological committee (CTO), for example, identifies strategically promising firms or professionals what von Hippel (1988) would call Lead Users who „face needs that will be general in a marketplace, but they face them months or years before the bulk of that marketplace encounters them. Lead users are positioned to benefit significantly by obtaining a solution to those needs“ (von Hippel, 1988, p. 107). CENPES integrates them once a year into a process called „CTO on-line“ in which experts from outside and inside Petrobras can give preliminary project proposals which are subsequently analyzed and evaluated based on criteria such as competitiveness, innovation, environmental impact and operational security (Leite, 2005).

We have less of an understanding of how a lack of valuable, rare, inimitable and non-substitutable resources (VRIN) can leave companies at a disadvantage in terms of competition, leading to a declining performance. A set of studies extending the RBV (a view based on knowledge and capacity) could aid future research. These studies may provide implications for studies of decline. For example, they could consider the TMT as a strategic resource (Hoskisson, Hitt, Wan, & Yiu, 1999), whose impact is manifested in the allocation of resources (Hambrick & Mason, 1984), which could prevent decline and lead companies down the path to restructuring (Pandit, 2000). Some studies on organizational success highlight the role of the leaders and cognitive behavior of the management in relation to performance (e.g., Hambrick & D’Aveni, 1988; Hambrick & Mason, 1984). There are a growing body of studies considering the influence of the board during crises (e.g., Dowell, Schakell, & Stuart, 2011).