Prof Karin Sanders
HUMAN RESOURCE MANAGEMENT:FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS
Prof. Karin SandersOrganizational Psychology University Twente; the Netherlands
Prof Karin Sanders
1. Management & HRM so far: emphasis on content
2. From content to perceptions– Technical organizations in the Netherlands &
Germany Technology & Investment (2010)
3. Introduction Strength of HRM system (Bowen & Ostroff, 2004)– Hospitals in the Netherlands Personnel
Review, 2008– Hotels in China, IJ of HRM, 2010
Human Resource Management:
From content to perceptions
Prof Karin Sanders
1. HRM so far: emphasis on content
2. From content to perceptions– Technical organizational in the Netherlands &
Germany
3. Introduction Strength of HRM system (Bowen & Ostroff, 2004)– Hospitals in the Netherlands– Hotels in China
Human Resource Management:
From content to perceptions
Prof Karin Sanders
Management approaches (background)
Wish that employees put as much energy and time in the job as possible (core problem within organizations)
Control model versus commitment model Khatri, N., Baveja, A., Boren, S.A., Mammo, A. (2004)
Medical errors and Quality of care: From Control to Commitment. California Management Review.
Employee-organization relationship (EOR) Tsui & Wang (2002); Tsui, Pearce, Porter & Tripoli
(1997); Zhang, Tsui, Song, Li & Jia (2008)
Prof Karin Sanders
Management approaches (background)
Control model versus commitment model Control: human beings are not capable of self discipline; are
lazy; so; money is important incentives (Taylor)
Commitment: human beings capable of self discipline; can be committed, trust (Human relations model)
Employee-organization relationship (EOR) The formal and informal, the economic, social and psychological
connection between an employee and his or her employer : mutual investment, quasi spot contract
Prof Karin Sanders
In sum, important of employers!
Yet … who is the employer; supervisor; leader: Matrix structure: more supervisors More levels Dean, Director of the research institute; Director of
psychology program, Head HRM, Board of the University, Ministry …..
Conflicts between different supervisors Who is the other party in the EOR? What’s the idea/perception of the employees?
Prof Karin Sanders
Human Resource Management
What is Human Resource Management?
“Total of all activities within an organization related to the management of work and people” (Boxall & Purcell, 2008)
(Recruitment & selection, Pay for Performance, Performance Appraisal, Training)
Personnel & Organizations; HR; HRM; HRD More than the HRM department only Supervisors (devolution; ‘transfer-to-line’) Assumption: HRM is instrumental in Management / EOR
approaches (HR Practices)
Prof Karin Sanders
Management - HRM - Employees
SeniorManagement / EOR
HRM ; Supervisors (HR Practices)
Employees
Prof Karin Sanders
Human Resource Management: content
Three HRM approaches (Delery & Doty, 1996):
Universalistic: “best practices” Contingency: aligned with strategy of the organization Configurational: aligned with internal and external
circumstances of the organization
Prof Karin Sanders
HRM “Best practices”
High Commitment / High involvement HRM
High commitment HRM: Focus on commitment of employees
High involvement HRM: Focus on participation / involvement of employees
Research so far: positive effects; but ….. conflicts of interests (employer; employee); difficulties in keeping the balance (expensive)
Prof Karin Sanders
Contingency and configurational approach: content
Baron & Kreps, (1999) Five factor model:
1. environment, 2. employees, 3. strategy, 4. culture, 5. organization of processes
Alignment of HRM
Prof Karin SandersProf. dr. Karin; April 2009
Human Resource Management: content
Strategy Performance
Prof Karin SandersProf. dr. Karin; April 2009
Human Resource Management
Strategy Performance
attitude & behavior employees
Prof Karin SandersProf. dr. Karin; April 2009
Human Resource Management
Strategy PerformanceHRM attitude & behavior employees
Prof Karin SandersProf. dr. Karin; April 2009
Human Resource Management
Strategy PerformanceHRM attitude & behavior employees
Prof Karin Sanders
Alignment
HRM practices should be aligned with the environment, and characteristics of the organization (employees, culture, strategy, and organization of processes)
How?
Research so far: Not clear, difficulties: causality; cross sectional research,
a lot of mediating effects, a great number of organizations needed ….. Management perspective!!
Prof Karin Sanders
Employees?
Completely neglected? From content to perception and satisfaction of employees Psychology:
people perceive the same environment differently perception drives behavior more attention should be paid to perception
Prof Karin Sanders
How to support Innovative Behavior?
Sanders, K., Moorkamp, M., Torka, N., Groeneveld, S, & Groeneveld, C. (2010) How to
support Innovative Behaviour. The Role of LMX and Satisfaction with HR Practices.
Technology and Investment, 1, 41-50.
Importance of innovative behavior (idea generation, idea promotion, & idea realization)
Leader-Member- Exchange (LMX) Satisfaction with HR Practices
Hypotheses: LMX (H1) and Satisfaction with HR Practices (H2) positively related with innovative behavior
Combined effect?
Prof Karin Sanders
LMX, Satisfaction & Innovative behavior
Model 1:
Model 2:
LMX Satisfaction HR
Innovative behavior
LMX
SatisfactionHR
Innovative behavior
Prof Karin Sanders
Data
272 employees from four Dutch & German technical organizations (42 to 66% response rate)
220 are men (74%) 52% between 25 and 35 years of age higher educated employees (professionals)
Surveys and interviews
Prof Karin Sanders
Method
Valid measurements:
LMX (Liden & Maslyn)
“My supervisor would come to my defense if I were ‘attacked’ by
others”
Satisfaction with HR practices: influence, flow (selection, career), primary rewards, secondary rewards, work content (overall satisfaction)
Innovative behavior (Janssen et al)
Controls: organization, sex, tenure, age, education
Prof Karin Sanders
Satisfaction HRM Practices
HR Practices 1-5
Influence 3.20
Work flow 3.38
Primary Rewards 2.79
Secondary Rewards 2.78
Content 3.71
Prof Karin Sanders
LMX, Satisfaction & innovative behavior: results
LMXSatisfaction
HR
Influence Work content
Innovative behavior
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Innovative behavior: LMX and HR Practices
Conclusions & Implications
Both LMX and Satisfaction with HR positively related with innovative behavior
Satisfaction with HR mediates the relationship between LMX and innovative behavior
HR Practices part of LMX
Cross sectional research: causality
Importance of perceptions of employees
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
From satisfaction to interpretation: the attribution theory
Bowen, D. E., & Ostroff, C. (2004). Understanding HRM-Firm Performance Linkages: the Role of the 'Strength' of the HRM System. Academy of Management Review, 29(2), 203-221.
Sanders, K., Dorenbosch, L., & Reuver, R. (2008). The impact of individual and shared employee perceptions of HRM on affective commitment: Considering climate strength. Personal Review, 37(4), 412-415.
Li, X., Frenkel, S., & Sanders, K. How do Perceptions of HR Systems and Processes affect worker well-being? A multi-level study of Chinese Hotel workers International Journal of HRM (R&R)
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff (2004)
HRM – business performance link Instead of the content of HRM; Focus on the process of HRM; Viewing HRM as communication from employer to
employees (signals)
Introducing “strength of an HRM system”; Attribution theory (Kelley, 1967; 1973)
Sense making; cause and effect Distinctiveness; Consistency; Consensus
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff (AoMR, 2004)
Distinctiveness: relevance of HRM; acceptance; visibility; legitimacy of
authority of HRM Consistency:
internal alignment of HR practices, and over time Consensus:
agreement among policy makers
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: theory
“Strength of HRM” (Distinctiveness, Consistency, and Consensus) influences Organizational Climate
Organizational Climate: ‘shared perceptions of what is expected, and rewarded’
Employee Performance
Business Performance
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: theory
Distinctiveness Consensus
Consistency
Organizational climate
Organizational performance
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: theory
Distinctiveness Consensus
Consistency
Organizational climate
Affective commitment
Research question: “Can the HRM - Affective Commitment linkage be explained by the strength of HRM system and the organizational climate?”
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
From theory to an empirical model
Attribution theory (Kelley, 1967; 1973): Covariation framework Distinctiveness: extent to which employee interprets that
the goals of HR practices differ from the goals of other organizational practices
Consensus: among policy makers; or among employees
Organizational Climate Organizational Climate Level: mean Organizational Climate Strength: shared perceptions Mediating effect or a moderator
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: method (1)
Four hospitals in the Netherlands:
within each hospital 18 units clinical; out patients; support staff; paramedical
Questionnaires / interviews 32 HRM consultants (100% response) 67 line-managers (98% response) 671 employees (66% response)
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: method (2)
Affective Commitment (Allen & Meyer, 1990)
HR practices (Delery & Doty, 1996) / Organizational Focus (mutual investment model: Tsui & Wang, 2002): career opportunities: “In this organization employees have
clear career paths”, training and education” “In this organization employees
have multiple possibilities for training and education”, appraisal performance:” (…) employee appraisals are
based on objective, quantifiable results” clarity of job description: “(…) job description contain all
tasks that need to be performed by employees”
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: method (3)
Distinctiveness Relevance: seven items; Legitimacy of Authority: Strategic
Partner / Change Agent Consistency: within respondents (ipsative scores)
Inversed standard deviation Consensus: between line- and HR managers
Inversed deviance scores Organizational Climate
Inversed standard deviation within a subunit
High Commitment HRM as a control
Multi level analyses
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: results
Distinctiveness Consensus
Consistency
Organizationalclimate
Affective Commitment
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: results
Affective Commitment
Consistency
Weak Climate Strength
Strong Climate Strength
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: and beyond?
Confirmation: Distinctiveness; Consistency Organizational Climate: moderator
No confirmation / limitations: Consensus (multi actor data) Affective Commitment instead of BP
Prof Karin Sanders
The Bowen & Ostroff model:
Chinese hotels
Xiaobei Li, Steve Frenkel,
& Karin Sanders
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: replication study (1)
Three urban 5 star hotels in China
Within each hotel, several service departments, such as catering, guestrooms;
Within each department, several units. For example, catering has bars, several restaurants, banquet and room service as units.
The dataset: 810 employees; 64 units in 20 departments (90% response)
High-performance HR practices as a control Work satisfaction, Intention to quite, Vigor as DVs
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: replication study (2)
Distinctiveness A five-item scale (Frenkel & Gollan, 2008)
Consistency: within respondents (ipsative scores) Sign-reversed average deviation
Consensus: an employee perceptual measure rather than a multi-actor
one A four-item scale (Delmotte et al., 2007)
Organizational Climate Sign-reversed standard deviation within a unit
Multi-level analyses
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: theory
Distinctiveness Consensus
Consistency
Organizational climate
Work satisfaction, vigor,
intention to quit
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: results
Distinctiveness Consensus
Consistency
Organizationalclimate
Work satisfaction
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: results
Work Satisfaction
Consensus between line and HRM
Weak Climate Strength
Strong Climate Strength
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: results
Distinctiveness Consensus
Consistency
Organizationalclimate
Vigor
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: results
Distinctiveness Consensus
Consistency
Organizationalclimate
Intention to quit
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: results
Intention to quit
Consensus between line and HRM
Weak Climate Strength
Strong Climate Strength
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: results
More or less same conclusions: No mediating effects Moderating effect: mixed results Main effects:
• Distinctiveness
• Consistency; consensus: not always effective
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: cultural relevance?
Main effects:
- Distinctiveness: effective for both cultures
- Consistency: related to Hofstede’s uncertainty avoidance?
score for Netherlands (53); score for China (29) Moderating effects of climate on consensus-wellbeing:
- Consensus: related to Hofstede’s collectivism?
score for Netherlands (20); score for China (75)
Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009
Bowen & Ostroff: and beyond?
Limitations: Level of analysis
– organizational climate vs. unit-level climate strength No objective performance measures:
both employee-, unit -level Cross-sectional design
Longitudinal study Generalizability
more industries more cultures
Prof Karin Sanders
1. Management & HRM so far: emphasis on content
2. From content to perceptions– Technical organizations in the Netherlands &
Germany Technology & Investment (2010)
3. Introduction Strength of HRM system (Bowen & Ostroff, 2004)– Hospitals in the Netherlands Personnel
Review, 2008– Hotels in China, IJ of HRM, 2010
Human Resource Management:
From content to perceptions
Prof Karin Sanders
1. Management approaches & HRM research
2. Effects of HR Practices (content)– Roles of Ulrich
3. From content to process: Bowen & Ostroff (2004)– Hospitals in the Netherlands– Hotels in China
In sum: Human Resource Management: Content versus Process