In the literature, it is often assumed that traditional, control-oriented HRM systems are increasingly being replaced by commitment-based HRM systems because the latter generally result in higher firm performance. However, an HRM system's effectiveness may depend on an organisation's external and internal context, and neither control nor commitment HR systems are without disadvantages. Thus, the empirical validity of this claim is not clear ex ante. This paper analyses the empirical diffusion and determinants of control and commitment HRM systems in Germany as well as their impact on HRM outcomes and firm performance. The findings indicate that between the two extreme forms of high-control and high-commitment HRM systems, there are two hybrid forms (long-term-oriented control system and regulated commitment system) that combine elements of both 'pure' systems. Commitment HRM systems outperform the high-control HRM system concerning many HRM outcomes and firm performance measures. However, in direct comparison, the high and the regulated commitment HRM systems do not show substantially different outcomes, indicating that there is no one best way.
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In order to improve our understanding of the relationships between high-performance work systems and firm performance, several studies have analysed the mediating effects of motivation-related or human capital-related variables. However, most of these have concentrated on single aspects and are US-focused. We extend previous human resource management research by simultaneously analysing the relevance of four general mediating mechanisms: human capital, employee attitudes, employee performance and operational performance. We apply structural equation modelling with formative constructs to data of 1099 German firms. While our findings support the assumption of positive relationships between high-performance work practices, the four mediating mechanisms and firm performance, they also reveal some peculiarities attributable to the German context. Using formative constructs, we were also able to show that single high-performance work practices have different effects on firm performance.
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