Exploring the best HRM practices‐performance relationship: an empirical approach

Abstract

Purpose -This paper aims to empirically examine the linkages between best human resource (HRM) practices, knowledge management, organisational learning, organisational capabilities and organisational performance. The proposed framework and findings intend to add to the understanding of the specific processes that mediate between best HRM practices and organisational performance. Design/methodology/approach -To carry out this research a survey research strategy was followed. The sample frame for this study consisted of Greek firms that belong to the tertiary (services and commerce) sector, employing at least 50 employees. The final research sample consisted of 242 questionnaires. Descriptive statistics as well as structural equation modelling (SEM) techniques were used to analyse the data. Findings -This paper proposes an answer to "how" best HRM practices can influence performance. Results indicate that service and commercial firms pursuing best HRM practices achieve better performance through the interaction of these practices with knowledge management and organisational learning capability and the creation of organisational capabilities. Research limitations/implications -Possible limitations of the study include the relatively small sample size, the use of subjective performance indicators and the measurement of organisational capabilities. Practical implications -The paper can help human resource practitioners and/or managers to understand better the importance of organisational learning and knowledge management processes and the way best HRM practices, through the integration of these two processes, lead to superior and sustainable performance. Originality/value -This paper attempts to shed some light on the processes through which human resource management practices influence performance. Moreover, the value of the human factor in knowledge management and organisational learning initiatives, as well as on organisational capabilities, is explored. While this has already been underlined in the past, there is still no complete model simultaneously describing and testing all those relationships.

The Mediating Role of Affective Commitment in the Organizational Rewards– Organizational Performance Relationship

“…The increasing number of empirical research analyzes the effect of various practices of HRM on the organizational performance. Although, regardless of the amount and variety of this research, insufficient consideration has been given to the notion or understanding of which the types of HRM practices affect the organizational performance (Theriou & Chatzoglou, 2009).…”

“…Organization's specific abilities and resources, which are uncommon, valuable, unique, and cannot be replaced, can be organizational competitive advantages and provide a better performance (Barney, 1991;Theriou & Chatzoglou, 2009). Human resources are very crucial resources for organizations.…”

“…The general idea about successful HRM practices is that a specific series of HRM practices have the power to achieve a better-quality organizational performance for any organization (Marchington, Wilkinson, & Marchington, 2008), and, consequently, all organizations should recognize and apply good HRM practices in order to enhance their organizational performance. However, many researchers (Becker, Huselid, Becker, & Huselid, 1998;Delaney & Huselid, 1996;Delery & Shaw, 2001; P. Wright & Gardner, 2000; P. M. Wright & McMahan, 1992) have indicated that there is not enough knowledge about how, why, and which HRM practices produce organizational value and improve organizational performance (Theriou & Chatzoglou, 2009). …”

Human Resource Management and Performance: From Practices Towards Sustainable Competitive Advantage

“…Recognizing that effectively implemented HRM practices will ''cause'' higher performance, it is more important to see ''how'' something is done compared to just ''what'' has been done [64]. Based on the approach that mechanisms of HRM and performance link and clear constituents are vital to more complete perception and knowing of how HRM drives firm performance, different authors [3,19,25,55,60,[65][66][67] describe existing issues using very similar statements ( Table 2). …”

Um modelo para lidar com condições limite relacionadas ao papel moderador da Gestão de Recursos Humanos no caso de intenções de rotatividade dos trabalhadores

“…employee surveys) or techniques (e.g. management by objectives) that contribute to managing human resources in an organisation" (Petersitzke, 2009 Theriou & Chatzoglou, 2009). Previous studies have found mixed results in the relation between HRM practices and employees' turnover intention.…”