The impact of best HRM practices on performance – identifying enabling factors

Abstract

Purpose – The purpose of this paper is to empirically examine the relationships between best human resource management (HRM) practices, knowledge management (KM), organization learning and organizational capabilities (OC), as well as their impact on organizational performance. Design/methodology/approach – To carry out this research, a structured questionnaire was designed and distributed to 212 manufacturing firms which employ at least 50 employees. The final sample consists of 138 useable questionnaires. Findings – Results indicate that manufacturing firms pursuing best HRM practices achieve higher performance through the interaction of these practices with KM and organizational learning capability and the creation of OC. Research limitations/implications – Possible limitations of the study include the measurement of OC, the use of subjective performance indicators and the data collection approach reflecting mainly HRM managers’ perceptions. Practical implications – HR practitioners and/or managers should focus on establishing the appropriate mechanisms for integrating “best HRM practices” with learning, knowledge and OC in order to improve performance. Originality/value – This paper empirically tests a new composite model which elaborates upon the mechanisms that seem to intervene between the best HRM practices – performance relationship. Moreover, the value of the human factor in KM and organizational learning initiatives, as well as on OC, 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 Knowledge Management and the Moderating Part of Organizational Culture between HRM Practices and Organizational Performance

“…Inconsistently, Kuo (2011) found a non-significant direct relationship between HRM practices and OP. The positive association of HRM practices and KM was also asserted by Theriou and Chatzoglou (2014), Kuo (2011) and Donate and Guadamillas (2011). Furthermore, Shehata (2015), Gharakhani and Mousakhani (2012), Marqués and Simón (2011), Zack et al (2009), Mills and Smith (2011 and Kuo (2011) confirmed the significant impact of KM on OP.…”

“…the relationship between HR practices and KM and OP, the results highlighted a positive influence of these practices on OP. Theriou and Chatzoglou (2014) examined the effect of best practices in HRM (compensation and incentives, contingent on performance, employee health and safety, employee involvement, internal communication arrangements, extensive training, harmonization, internal career opportunities, job descriptions, selective hiring, use of teams and decentralization) on KM, using a sample comprising a total of 212 HR managers operating in the Greek manufacturing industries. With respect to the relationship between HRM practices and KM, the results supported the hypothesis that best practices in HRM positively affect KM.…”

Aligning Human Resource Management with Knowledge Management for Better Organizational Performance: How Human Resource Practices Support Knowledge Management Strategies?

“…"Epistemology of practice" follows a duality philosophy that depends upon structurational models, theories of practice and pragmatism [15]. The most important factor here is the personal nature of tacit knowledge, which requires the willingness, on the part of those workers who possess it, to share and communicate it [16].…”

Integrative role of KM infrastructure and KM strategy to enhance individual competence

“…IC incorporates some behavioral characteristics required to solve basic problems related to the organization. However, knowledge base cannot progress effectively in absence of KM processes (Theriou and Chatzoglou, 2014). In complex situations, employees are required to collaborate with others to share their knowledge and expertise so that organizational problems can be solved easily (Bhatt, 2002).…”