How Human Resources Management Strategies Affect ...indusedu.org/pdfs/IJRESS/IJRESS_920_73144.pdf · HRM perspective has the following objectives: a) improvement in the performance

Yashar Salamzadeh et al., International Journal of Research in Engineering and Social Sciences, ISSN 2249-9482,

Impact Factor: 6.301, Volume 06 Issue 08, August 2016, Page 1-19

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How Human Resources Management

Strategies Affect Creativity and Innovation?

A Study in Iranian Context

Yashar Salamzadeh1 and Maryam Sadat Mirzadeh

2

1(Public Administration PhD, Farabi Institute of Higher Education, Mehrshahr, Iran)

2(Master Student, Farabi Institute of Higher Education, Mehrshahr, Iran)

Abstract: Creativity and innovation are among an organization's assets, and through them, an organization can

successfully respond to the changes and complexities of the work environment in order to elicit favorable employee

performances. Having creative and innovative employees is an added value for an organization. Creative employees

with novel ideas and organizational innovation will indeed act as a competitive edge for the organization. One

effective way to enhance creativity and innovation among employees is the utilization of human resource

management strategies such as human resource development strategy, staff recruitment strategy, bonus strategies,

employee performance strategy, working relations development strategy, and culture management strategy. The

present study aims to determine the effects of human resource management strategies on innovation and creativity

and it employs a case study approach. The research method is descriptive and it makes use of surveys since it

intends to examine the impact of human resource management strategies on workers' creativity and innovation.

Data is collected through field research and using 155 researcher-made questionnaires. The results are analyzed

using multivariate linear regressions and path analysis. we Found that Human resource management strategies

have a direct and significant impact on employee creativity and innovation and among the above mentioned

strategies, working relations development strategy, has the strongest effect on creativity, and human resource

development strategy, has the highest impact on innovation. Therefore, organization managers are advised to move

towards realization of organizational goals, efficiency improvement, and organizationa l performance effectiveness

through application and modification of executive practices, preparing the ground for education, organizational

learning and culture, using world's latest knowledge and technology, and application of novel management systems

centered around employee creativity.

Keywords: Human Resource Management strategies, Working Relations Development Strategy, Human Resources

Development Strategy, Creativity, Innovation

I. INTRODUCTION Organizations need tools and material resources to achieve production targets and provide services. In

addition to these resources, the most important and most effective source is Human Resources (HR). Due to

continual changes in the environment and its dynamics, growth and progress of the organization depend on HR, the

key element of success. HR strategies attempt to create competitive advantage and greater flexib ility of

organizations in the global markets (Nankervis, et al, 2011). These strategies through programs related to

organizational structures lead to increase in their effectiveness and try to achieve predetermined goals through

several approaches including education, development, employee relations and reward (Cania, 2014). HRM strategies

in line with HR cycle of the organizations consist of four general processes that include the selection of appropriate

organizational staff with jobs, employee performance evaluation, reward, and high quality staff development. In

assessing human resource strategies to improve performance and to support organizational objectives, management

tasks in vertical alignment are as fo llows (Itika, 2011).

Senior organizat ional managers whose task is merging p lans, requirements, and HR activ ities to establish

organizational objectives

Top organizational managers who are trained personnel and among their tasks are merging and reviewing

all levels of organizational management and making final decisions for the organization

HR managers whose task is integrated strategic planning

Strategic HR management is important because it is a tool is to improve organizational performance, use of

potential abilit ies of the employees to achieve organizational goals, proper response to job expectations and staff

development, Alignment of HR strategies with organizational planning and creating a single corporate culture,

creating creative work environment, giv ing importance to innovation, teamwork, quality concept in whole




organization, and creating a learning and flexib le organization (Burma, 2014). HR management strategies are

assessed in two ways. In the first method, we deal with organizational features as determin ing factors in

organizational ability. In this method, the key communicat ions are identified and their impact on organizational

capabilit ies, behavior, attitude, and skills of employees are checked. In the second method, analysis based on

scientific research and evaluation of employee performance takes place. In this method, instead of directly focusing

on organizational performance through capacity building or staff management processes can be improved and

common ideas of infrastructure can be focused on (Salaman, et al, 2005).

Innovation can happen in the form of change and development of HR strategies, optimizing HR, strategic

and operational planning of HR, optimizing staff costs, capacity, and their ability (Bolton, 2013). Jo ining of the

word "strategic" to "HRM" has a management logic , which leads to focus on the skills of employees. Skills

considered as intellectual capital and a great competit ive advantage and will eventually be a factor for creativity in

employees (Bratton, 2005).

II. REVIEW OF RESEARCH LITERATURE

Definitions

HRM

A definition of HRM is, a scope of relations designed between the main partners of the organizations, the

employer and employee are mentioned that affects all these correlations and activities in order to increase

productivity and efficiency. The contents of HRM (HRM) are variety of activities that will changes as results of

organization's performance (Cristian, 2012).

HRM Objectives

HRM perspective has the following objectives: a) improve ment in the performance of managers against

employees with HRM and use of HRM as a competitive advantage, B) change in management from the traditional

mode that often faces failure and instead use HRM, C) using HRM, organizations will have a place for educated

people, and that with the use of their knowledge and experience development in the organization will be created, D)

HRM requires changes in technology and to implement it, the organization will need more flexib ility, E) many

aspects of HRM such as commitment and motivation are derived from the field o f organizational behavior and

focuses on HRM strategies. As a result, this provides an opportunity to link HRM and organizational behavior

management strategy (Silva, 2011).

The Concept of Strategic Human Resources Management

In strategic management of human resources , the implementation of the following four factors leads to the

success of the organization after the implementation of th is strategy: Performance, quality, flexibility and innovation

(Jery and Souaï, 2014). Strategic management of human resources on the run has the following meanings: The use

of professional planning to improve staff performance, designing and creating a flexible attitude and to-day

management of personnel, coordination and integration of policies and human resource management practices with a

clear strategy, looking at the organization's staff as a "strategic resource" for achieving "competitive advantage ,"

increase of motivation, creativity, and innovation in employee performance, improving the quality of work provided

by the employees, increasing flexib ility in the delivery of teamwork and group work, and enhancing the quality of

teamwork than individual (Danlami, 2012).

Strategic Management Model

In this method, assessment score will be considered for indiv idual or group performance. Group and

individual performance are evaluated both in terms of content and in terms of process performance. It refers to a

series of activities through which the organization looks for evaluation and competence development for staff,

increased performance and rewards distribution. Performance management involves setting large organizations,

team, and individual goals, as a waterfall from the top down that contains a set of meanings of strategic objectives

for the individuals and groups. The use of performance appraisal systems includes appropriate rewards strategies

and plans, training and development strategies and programs, feedback, communication, coaching, individual career

planning, performance management systems and mechanisms for monitoring the effectiveness of interventions and

even cultural management. Thus, performance management includes day-to-day management, support and

development staff (Hartog et al, 2004).

Human Resources Development Strategy

Human Resources Development Strategy is synonymous with policies related to labor quality and market

regulation. The relative role and overall importance of human resource development depend on the economy of any

country in individual. What is more important in human resource development strategies is the interaction between

the employees. Human resource development needs a comprehensive strategy and improving public health in line

with academic achievement and labor productivity depend on employment policies (OECD Directorate, 2012).




Employee Recruitment Strategy

The strategy of staff recruitment deals with the useful guidelines to attract and retain employees. This

strategy reflects a process in which employees and stakeholders during the implementation of a process experience

participation. The above strategy deals with strengthening and expanding the organization's programs and

employment services to be a source of employee motivation and as much as possible and increase organizational

efficiency (Rouble, 2010). A good and successful recruitment process includes the following steps: a) develop ing

policies according to which after proper employee recruitment, there is a system to retain them, b) identifying and

assessing current and future needs of human resources, c) identification of internal and external environments of the

organizations to increase organizational skill and knowledge, d) job analysis and assessing individual aspects of

each job and measuring each one's value, e) assessing the educational degrees of the staff in each jobs and

comparing it with job detail, skills, responsibilit ies and their required and defined skills, f) determin ing the ability of

the organization in paying the salary and benefits for a defined period, g) identifying the actual process of

recruitment and absorption of force in accordance with the laws of the same opportunities (Richardson, 2008 ).

Reward Strategy

The implementation of reward system is essential for the organization to achieve predetermined goals. The

existence of rewards strategy has a positive effect on the growing trend and improvement of employee performance

(Theen & Heng, 2012).

The successful implementation of reward strategies in the organization has a regular four-stage process.

The first stage is the assessment process. At this stage, the project team, after collecting the data, analyzes it.

Organizational changes are examined and the results of reward strategies in different periods go under investigation.

In the second stage, the organization deals with the design and implementation of changes in the system. In the third

stage, the reward system runs again, and in the fourth stage, the organization is re-evaluated and the cycle is

repeated. This process is depicted in Figure 1 (Heneman, 2007).

evaluation

evaluation

Performance

plan

Figure1: Four-step process successful implementation of reward strategies (Heneman, 2007).

Employee Performance Management Strategy

Employee performance management process refers to communication between employees and managers to

achieve better results including transparency of performance and results, correct diagnosis of mission and

organizational goals, realistic and appropriate develop, providing appropriate feedback on performance, constructive

performance appraisals, and planning for continuous staff development to improve the performance of employees in

order to optimize this process in the organization. This process must be done on a continuous basis and by

measuring and assessing it, one can understand how much it coincides with organizational goals (Weatherill, 2005).

Organizations are looking to promote their services, satisfy their employees, customers and other stakeholders .

Increasing customer satisfaction needs management and measurement of employee performance across their value

chain. To manage staff performance, one should develop a strategy to measure their performance, fo r which one

should already be prepared and predict. Determin ing standards that in addition to being measureable to promote the

purposeful activities of the organizations, are factors to improve employee performance are focused on (Shafudah,

2011). Key objectives of the implementation of the staff-performance management strategies are as follows: a)

ensuring that the employees do their tasks, b) employees are aware of the expectations of their organization in terms

of quality and quantity of tasks, c) receiving bonuses based on performance evaluation of employees, d) determin ing

opportunities needed for staff tasks development (Ying, 2004).




Labor Relations Development Strategy

To improve working relat ionships, organizations analyze the correlations between employees and

organizations. The results of the above analysis are as follows: organizations tend to recruit employees with up to

date skills and knowledge to perform different tasks , staff having skills in exchange for higher salaries and more

benefits, paying and benefits to employees who have higher skills actually motivate people to increase skills. On the

other hand, giving importance to high-skilled workers is actually an investment in human resources (Todaro &

Smith, 2010).

Culture-Management Strategy

Culture-management strategies are designed in order to achieve long-term goals for one of two purposes: 1)

changing the culture in a unique manner, 2) strengthening the organization's culture that is values and "ways of

doing things." Strategies to strengthen the culture are based on cultural analysis and its role in achieving the

objectives in question. As long as the culture seems to be appropriate, effort must be made to maintain its desirable

characteristics.

Employee Creativi ty

This is defined as producing new ideas, including innovation and new solution to resolve the problem.

Creat ivity is one of the basic features of human intelligence. Creativ ity of people is not only discussed in time of the

problem, but as a cognitive dimension (generation of new ideas) is related with motivation and emotion with cultural

factors (Sefertzi, 2000).

The rise of the creativity is a combination of knowledge, thinking and doing specific work; in the following

four types of innovation that are the result of creative behaviors are mentioned. Creativ ity refers to response to

creative and innovative ideas of the managers to resolve the problems of organizat ion, expected creativity refers to

the production of creative ideas by motivated employees used to solve organizational problems, effective creat ivity

refers to new and innovative ideas of the employees and managers for solving the problems of the organization. In

fact, in this case, creativity refers to its being inherent and real creativity refers to generating ideas and providing

solutions to the problems inherent to the staff (Sirkwoo, 2015). Organizat ional creativ ity can be as a tool that in the

organization that can actually fill the gaps in the production, market ing and administrative processes within the

organization. In fact, it is a source for effectiveness in the organization and creating competitive advantage

(Parjanen, 2012).

Organizational Culture

Organizational culture is a set of tradit ions, values, beliefs, policies, and attitudes that exist in an

organization. In fact, organizational cu lture refers to knowledge, beliefs, morals, law, customs, and the abilit ies of an

organization. Organizational culture is defined in a few key words: innovation and risk taking, attention to detail,

orientation of managers about the results of the organization, decision-making within the organization, orientation of

activities of its members, the degree of activ ity of the organizat ion to maintain the status quo, the invasion and

unconditional competit ion of employees (Naicker, 2008). Organizational culture is a set of norms and expectations

shared among the staff. Organizational culture can change preferences of staff and set things that are the necessities

of the organization as norm (Guiso et al, 2013).

Organizational Climate

Organizational climate is a group of features that can be measured and exists in the workplace and can

directly or indirectly affect the behavior of members of the organizat ion. Moreover, these environmental impacts can

lead to employee motivation. Organizat ional climate has three important features. First, it varies among different

organizations. Second, it has durability, and third it can affect staff (Liu, 2010). Organizational climate is a

collection of roots of thoughts and attitudes of an organizat ion. Organizational climate as environmental factors

consciously controls organization. These factors may include aspects of organizational and personal characteristics

and behavior (Adenike , 2011).

Organizational Learning

Organizational learn ing increases training and organizational skills . In fact, learning organizat ions develop

learning, development, and performance. In learning organizations, knowledge production, creativity, and

innovation are the backbones. In learning organizations with a focus on quality and principles of learn ing,

production is studied as a collective identity (Matin & Alavi, 2007).

Knowledge Management (KM)

KM processes include knowledge acquisition, creation, modification, storage, transfer, share, and exp loit of

knowledge. Processes are function of knowledge and use of knowledge to improve organizational behavior, improve

organizational decision-making and improved organizational performance. Focus on KM among the staff creates

motivation to achieve the social processes (King, 2009).




Innovation of Staff

The concept of innovation is different from the invention. In innovation, discovery does not necessarily

happen. With the help of innovation in sales and advancement in technology in sales as well as getting feedback

from customers, one can ensure the effectiveness of the innovation in the production (Kemp & Pearson, 2007).

Innovation in the organization is usually along response to market changes and business competition in

practice is, in fact, innovation is along with technology, processing, or marketing. Innovation in the workplace

maintains and increases the level of productivity and thus improves the performance of the organizat ion. The

purpose of innovation and its deployment in organization is to improve working conditions and employee

motivation. Innovation with this defin ition is implemented in companies and large and small and medium-sized

enterprises (Jacqmin, 2014).

BRIEF LITERATURE REVIEW Table 1: Literature

Researcher Year Research title Research

methodology

Results

Liu et al. 2007 The value of

HRM in

organizational

performance

Meta-analysis

techniques

HR management system improves

organizational performance and staff becomes a

major competit ive advantage.

Chen and

Hong

2009 Strategic human

resource

practices and

innovation

performance -

Mediating Role

of Knowledge

Management

Regression

Analysis

There is a positive correlations between

knowledge management, strategic HRM

practices, and innovation in performance of the

staff.

Tabassi and

Baker

2009 Education,

motivation, and

performance of

HRM in

construction

projects in

Mashhad, Iran

The literature

review and

questionnaire

Train ing improved the performance of

construction workers, and in fact, there is a

positive correlation between education and

HRM.

Tan et al. 2011 HRM practices

and

organizational

innovation:

intermediary ro le

of Knowledge

Management

Effectiveness

Analysis of

scientific

literature and

questionnaires

There is a direct link between HRM and

organizational innovation. And on the other

hand, there is an indirect correlation between

HRM and knowledge management and

innovation is an intermediary variables in the

correlation between HRM and innovation

Sakalas et al. 2012 HRM in a

creative

Organization

Analysis of

scientific texts

Strategies of recruitment, selection and

assessment of staff, reward strategy, strategy of

development of working relationships between

managers of complex HR management strategies

have significant influence on employee

creativity

karlsson 2013 The role of HRM

in innovation

processes

Inductive

study method

and

exploration,

distribution of

questionnaires

and interviews

There is a significant correlation between HR

management and innovations in the

organization. Evaluating the performance of

staff, directly and significantly affect innovation

of the staff. The correlation between human

resource managers and creative organizational

staff has a significant impact on innovation.




Researcher Year Research title Research

methodology

Results

Bourma 2014 HRM and its

significance for

today's

organizations

The literature

review and

previous

studies

It deals with the direct and significant correlat ion

between employee performance management

strategy and the success of the organization and

that, this strategy and its assessment are not just

used punishment, encouragement, promotion or

demotion, but to establish a strong correlation

between employees and managers .

III. RESEARCH METHODOLOGY Research Objectives

The philosophy of this research is positivism. This research is conducted within the framework of

inductive-deductive reasoning. This means that theoretical research and literature library studies, articles and sites

are to collect informat ion in the form of inductive and deductive form is to confirm or reject hypotheses. In this

approach, by examin ing the hypothesis and research questions based on observations and results of questionnaires,

analysis, and understanding of the subject is drawn and the results are extracted.

The descriptive purpose of this study is to determine the impact of management strategies of HRM on

creativity and innovation of staff and research strategy is case study. The method used in this research is descriptive-

survey, because the impact of human resource management strategies on creativity and innovation of employees is

examined. Moreover, the study based on the mentioned purposes is applied, and according to the nature and method

of divination correlation. Library research and field-data collection methods will be included. The main objective of

the present study was to evaluate the effect on creativity and innovation management strategies to develop human

resources staff. The purpose of this study is to determine the impact of management strategies of HRM on creativity

and innovation of staff.

Research Population

Research community refers to a place where the results of the study can be generalized to or run on it. In

fact, it refers to a set of objects, persons, events, and generally things that have a common trait or characteristic. The

population of the study is the staff of Industry, Mine, and Trade of Alborz, located in Alborz p rovince. This

organization has 270 people working in Karaj and is affiliated cities. Industry, Mine and Trade, Industries

organization deals with Mines affairs, business affairs and business development, planning and investment,

development and resource management. The aim of the organization is to provide the best opportunities for optimal

services to clients.

Sampling and Sample Size

To achieve satisfactory results, sampling is the first step in determin ing targets. To understand these goals

better, we need to defined the selected population scheduled to be sampled. The study population consisted of 270

people. According to Morgan Krejcie sampling table, sample is 155 employees working in the tax office, industrial,

mining, commercial, and planning. Finally, 155 questionnaires were distributed and answers of the questionnaires

were co llected.

Conceptual Model

According to surveys conducted on research literature, current research conceptual model is presented as follows:

Organizational

Climate

Organizational

Learning

Knowledge

management

Organizational

Culture

Creativity

Innovation

Human Resource

Development Strategy

Culture management

strategy

Staff Recruitment

Strategy

Reward strategies

Working Relations


Employmee

performance

management Strategy

Human resource

management

strategies

Figure 2. The conceptual model




Data Collection Tool

A questionnaire is an efficient tool that is used to collect real time information where the researcher knows

what is sought exactly.

Secondary data including literature, h istory, and definition of words that are operational research are

collected from library and documentary method through the study of texts, articles, documents, books, reports, and

specialized publications and research conducted by means of taking notes and tables and figures contained in the

texts.

Primary data of the research, which is the opinions of respondents about research variables, are collected

through field research methods to collect information, a researcher-made questionnaire, in-depth interviews and

observation.

The questionnaire is developed with rating scale with 50 questions in four parts. The first part is

demographic with six questions and the second part is examining the importance of HRM strategies with 21

questions (items) has been proposed. In the third part, deals with studying factors affecting creativity with 13

questions, and the fourth part that has 10 questions, innovation is studied. After collecting the questionnaires, using

the software SPSS, multivariate linear regression analysis, and path analysis were evaluated.

Validity and Reliability of the Questionnaire

To ensure reliability, Cronbach's alpha reliab ility coefficient is used. Acceptable Cronbach's alpha

coefficient for research is 0.7. As shown in Table 2, Cronbach's alpha coefficient was 0.948 for research that is

higher than the accepted standard and confirms the reliability of the questionnaire. To check the valid ity of the

questionnaire the comment re lated to the topic from the experts and professors have been used.

Table 2: Cronbach's alpha reliability coefficient

IV. FINDINGS Forty-four point five percent of the respondents were male and 55.5% of them are women, of whom 10.3%

was less than 25 years, 16.1% between 25 and 30 years, 32.9% between 31 and 35 years, 30.3% between 36 and 40

years and 10.3% more than 40 years. Of those people have 8.4% less than 2 years, 14.8% between 2 and 5 years,

32.9% between 6 and 10 years, 30.3% between 11 and 15 years, 13.3% more than 15 years of experience and work

experience. In Table 4, the amount of familiarity with the topic "the impact of HRM strategies on creativity and

innovation of employees" is expressed in three columns: frequency, frequency percentage, and cu mulative

percentage.

Table 3: Table of frequency of familiarity with the subject of research

Familiarity with the

subject of research

Abundance Frequency The cumulative

percentage

very litt le

Little

Average

Much

too much

Total

In the present study, using multiple regression, the linear correlation between independent variables and the

dependent variable of the study were checked. First, we deal with the output of the impact of HRM strategies as the

independent variable on creativity as the dependent variable in Tables 4, 5, 6, 7.




Table 4: other variables

Table 4 as the first outlet shows that to predict the changes of dependent variable, creativity, based on 6

independent variables, a regression model and Enter method are used.

Table 5: Summary Model

Table 5 shows the summary of the model. The correlat ion coefficient (R) between variables is 0.738, which

shows a strong correlation between independent variables and the dependent variable (creativ ity). However, the

value of adjusted R-Square, which is equal to 0.527, indicates that 52.7 percent of the total changes of creativity

among staff is related to the six independent variable stated in this research. In other words, all independent

variables predict (estimate) half of the variance of creativity. Due to the significance of F (29.543) at the error level

of less than 0.01, it can be concluded that research regression model consisting of six independent variables and one

dependent variable (creativ ity) is a good model and the set of independent variables is capable of determining

creativity.

Table 6: ANOVA

Table 6, according to the standardized regression coefficients beta and a significant error level (sig = 0.05),

indicates which of the independent variables has a direct and significant impact on the dependent variable

(creativity) and which one does not. Beta coefficient indicates that the strategy of developing working relat ionships

with 0.293 has the greatest impact on creativity and the correlation is direct and significant. About the strategy of

staffing and employee performance management due to error- level h igher than 0.05, there is no significant effect on

creativity.

Table 7: table of coefficients




In the following, we deal with the output of the effect of HRM strategies as the independent variable on the

dependent variable innovation in Tables 8, 9, 10, and 11.

Table 8: other variables

Table 8, as the first outlet, shows that to predict the changes of the dependent variable, innovation, based on

6 independent variables, a regression model and Enter methods are used.

Table 9: Summary Model

Table 9 shows the summary of the model. The correlat ion coefficient (R) between variables is 0.717, which

shows a relatively strong correlation between independent variables and the dependent variable (innovation).

However, the value of adjusted R-Square, which is equal to 0.494, indicates that 49.9 percent of the total changes of

innovation among staff is related to the six independent variable stated in this research. In other words, all

independent variables predict (estimate) half of the variance of innovation. Due to the significance of F (26.098) at

the error level of less than 0.01, it can be concluded that research regression model consisting of six independent

variables and one dependent variable (innovation) is a good model and the set of independent variables is capable of

determining creativ ity.

Table 10: ANOVA

Table 11, according to the standardized regression coefficients beta and a significant error level (sig =

0.05), indicates which of the independent variables has a direct and significant impact on the dependent variable

(creativity) and which one does not. Beta coefficient indicates that the human resource development strategy with

0.350 has the greatest impact on innovation and this correlation is direct and significant. About the strategy of

staffing and culture management due to error level higher than 0.05, (sig = 0.05), there is no significant impact on

innovation.

Table 11: Table coefficients




Path Analysis In this study, the aim is to investigate the effect of HRM strategies on creativity and innovation. According

to the conceptual model, there are six independent variables and two dependent variables. In the following,

according to the linear multip le regression coefficients and with the help of coefficient table and beta, path analysis

and charting is done. The first step is to investigate the effect of independent variables (the six dimensions of HRM

strategies) on the dependent variable (creativity) (F2).


To interpret the results of the following table, standardized regression coefficients is used, (beta).

According to the table, working relations development strategy (M5) with a beta of 0.293 has the greatest impact on

creativity. Based on this result, with an increase of one standard deviation in working relations development

strategy, creativity increases to 0.293 standard deviation. Conversely, a decrease in the standard deviation of

working relations development strategy will decrease creativity as 0.293 standard deviation. In the following, it is

added that the variables whose level of error is higher than 0.05 (sig = 0.05) have no statistically significant effect on

creativity. Based on standardized regression coefficients, graphs of the factors affecting creativity is formulated as

follows:

Figure 3: Impact of HRM strategies on creativity

Second step: Studying the effect of independent variables (all the six cases of HRM strategies) on the

dependent variable of innovation (F1)


According to the table, ranging human resource development strategy (M1) with a beta of 0.350 has the

greatest impact on innovation variable. Based on this res ult, with an increase of one standard deviation in the

variable human resource development strategy, the innovation will increase at a rate of 0.350 standard deviations.




Conversely, a reduction in the standard deviation of variable human resource development strategy will lead to

0.350 standard deviation decrease in innovation. Based on standardized regression coefficients, graph of the factors

influencing the innovation is formulated as follows:

Figure 4: The impact of HRM strategies on innovation

Third stage: Studying the impact of creativ ity variable (F2) on the dependent variable of innovation (F1)


With an increase of one standard deviation in the variable creativity, the innovation will increase at a rate of

0.631 standard deviations. Conversely, with a reduction in the variable standard deviation of creativity, innovation

will reduce by 0.631 standard deviation. Based on standardized regression coefficients, graph of creativity on

innovation is formulated as follows:

Figure 5: The impact of creativi ty on innovation

Step Four: Since strategy of development of working relationships (M5) has the greatest impact on

creativity, strategy of development of working relat ionships is considered as the dependent variable and the

remain ing variables as independent variables.


According to the table, all independent variables , except staff recruitment strategy, had a significant effect

development of working relationships. In the meantime, Human Resource Development Strategy (M1) with a

coefficient of 0.308 is the most effective. Based on standardized regression coefficients, graph of the factors

affecting working relations development strategy has been formulated as follows:




Figure 6: The impact of employee relations management strategies on HR development strategy

Step Five: After working relat ions development strategy, reward strategy (M3) has the most effect on

creativity. Thus, at this point reward strategy is as the dependent variable and the other variables are considered as

independent variables.


According to the table of coefficients, human resource development strategy (M1), employee-performance

management strategy (M4) and culture management strategy (M6) have no significant effect on reward strategy.

Based on standardized regression coefficients, graph of the factors affecting reward strategy has been formulated as

follows:

Figure 7: Impact of HRM strategies on reward strategy

Step Six: in studying the impact of HRM strategy on innovation, human resource development strategies

had the greatest impact on innovation (M1). In the following, human resource development strategy (M1) is as the

dependent variable and the remaining variables are considered as independent variables.





According to the table, coefficients of working relationships development strategies (M5) and culture

management strategies (M6) have a significant impact on HR development strategies (M1). Based on standardized

regression coefficients, the graphs of the factors affecting human resource development strategy has been formulated

as follows:

Figure 8: The impact of HRM strategies on HR development strategy

Step Seven: In examining the impact of HR management strategies on innovation, after HR development

strategies that had the greatest impact, the strategy of development of working relat ionships (M5) has the greatest

impact. In the following, the strategy of development of working relationships (M5) is as the dependent variable and

the remaining variables are as independent variables.


According to the table of coefficients , staff recruitment strategy (M2) had no significant effect on working

relations strategy (M5). Human Resource Development Strategy (M1) with a factor of 0.308 has the greatest impact

on the strategy of development of working relat ionships (M5). Based on standardized regression coefficients, the

graphs of factors affecting labor relations development strategy has been formulated as follows:




Figure 9: The impact of HRM strategies on the strategy of development of working relationships

The results of the beta coefficient study show that the dependent variable creativity (F2) is first affected by

independent variable, developing working relationships (M5) the most and the independent variable reward strategy

(M3) is the second.

About the dependent variable innovation (F1) first HR development strategy independent variable (M1)

and then working relations development strategy (M5) have the most effect. After calculating the direct and indirect

impact of the variab les, the following tables are obtained.

Table 19: The direct-indirect and total effect of independent variables on the dependent variable creativi ty

Variables Type of impact

Direct Total

Human Resource


Staff Recru itment

Strategy

- -

Reward strategies

Employmee performance

management Strategy

- -

Working Relat ions


Culture management

strategy

Table 20: The direct-indirect and total effect of independent variables on the dependent variable innovation

Variables Type of impact

Direct Total

Human Resource


Staff Recru itment

Strategy

- -

Reward strategies

Employmee performance

management Strategy

Working Relat ions


Culture management

strategy

- -




Empirical model of the impact of HRM strategies on creativity and innovation is given in the figure below

Figure 10: Empirical model of the impact of HRM strategies on creativi ty and innovation

V. CONCLUSION The hypotheses of this study were developed to evaluate the effect of HRM strategies have been developed

on the creativity and innovation of employees in the organization. Desired data is collected through a questionnaire

distributed among 155 members of the sample. First, by studying the frequency tables, it is tried to analyze data

relative response spectrum. Then to test the reliability and validity of the questionnaire, Cronbach test and the

opinions of experts have been used. As it became clear from the theory of this test and expert opin ion, the

questionnaire is valid and reliable, after ensuring the above two categories , using linear mult ivariate regression, path

analysis, and SPSS software, the impact of HRM strategies once separately on the dependent variable creativity and

once for on the dependent variable innovation were studied. The results show that HRM strategies significantly

affect increase of employee creat ivity and innovation. In continuation, from among HRM strategies in accordance

with the standardized regression coefficients, the beta of strategy of development of working relat ionships 0.293 has

the greatest impact on creativity.

Based on this result, with an increase of one standard deviation in variable of working relat ions

development strategy, creativity increases as 0.293 standard deviation. Conversely, a decrease in the standard

deviation of the variable working relations development strategy, 0.293 standard deviation decrease in variable

creativity will be observed.

Then by studying human resource management strategy on innovation, according to table, human resource

management strategy with a beta of 0.350 has the greatest impact variable. Based on this result, with an increase of

one standard deviation in the variable human resource development strategy, the innovation will increase at a rate of

0.350 standard deviations. Conversely, a reduction in the standard deviation of variable human resource

development strategy will lead to 0.350 standard deviation decrease in innovation.

Tan et al. (2011) in research entitled "HRM practices and organizational innovation: Studying the

mediating role of effect iveness of knowledge management" produced results, the correlation between each of them

with the results of this study are expressed as follows (Tan & Nasurdin, 2011):

Tan et al. (2011), in their study reached the conclusion that there is a direct link between HRM and

organizational innovation. In the present study, we also concluded that HR management strategy has a significant

impact on creativity and innovation staff.

Tan et al. (2011), in their study suggest that, on the other hand, there is an indirect correlat ion between

HRM and innovation and knowledge management is one mediator variable in the correlation between HRM and

innovation. In our study, the correlation between HRM and innovation is direct and significant, but the somehow the

shared point is the existence of KM, from the sub-indices of the studied indices of creativity, with the highest beta

coefficient of 0.631. On the other hand, in our study after being affected, we studied the effect of creativity on

innovation and reached the significant correlation between creativity and innovation with beta coefficient of 0.631.

In general, it can be said in both studies, knowledge management has a significant effect on innovation.




The studied organization, in its current state requires the use of modern management systems: the

management that is based on knowledge, customer-orientated, and gives importance to the communication and

interaction between heads of departments, experts and staff. The importance to the feedback received from clients

for solving problems and taking corrective measures is necessary. Knowledge management should seek to develop

the skills of employees and managers in order to satisfy their relat ionship with the client. The knowledge

management system is required to use this system because managers are strongly catalyst in the implementation and

daily operations of the organization.

Tan et al. (2011), in their study suggest that teaching and learning directly and indirectly affect innovation.

In this research, organizational learning is studied as the index of the beta coefficient of 0.496 so has a significant

impact on the overall index on innovation and creativity, including their learning. In general, we can say that there is

a significant impact on innovation in both learning studied.

Learn ing and training in modern management style lead to increased risk-taking of employees to update

their skills and knowledge, identify opportunities, and the views of other employees with employee engagement

achieved not merely to complete training records personnel and records employees' work that was done in

accordance with past years of the staff that had any consent and the use of them.

Teaching and learning are one of the indices of creativity and innovation indicators . In fact, learning leads to the

development of innovative ideas, and increase of the power of replacement of employees. In the current situation,

the organization requires the increasing capacity of social organization based on empowerment of individual, group

and organizational.

In their study, Tan et al. (2011), there is a negative correlation between employment and the three

dimensions of organizational innovation (product innovation, process innovation, business innovation). They also

state that HRM practices such as the reward system, recru itment system at the time of starting the job does not have

much impact on organizational innovation process. Innovation in organization is achieved over time by learning and

teaching staff, improving their organizational performance and business success.

From among the strategies of HRM as an independent variable, strategy of recruitment and culture management

strategy due to having an error level higher than 0.05 (sig = 0.05) have significant statistical effect on innovation as

the dependent variable.

Surprisingly, Tan et al. (2011) in their study concluded that, recruitment and rewards strategies, from the

indices studied in HRM, have negative impact on trip le innovation (product innovation, process innovation, business

innovation). It is mostly due to, strict control of corporate managers on employee performance, to minimize

overhead costs and being over obsessed with the financial and economic aspects. Solution proposed by these

researchers is adequate and proper training of organizational managers about the importance of the human aspects of

the organization and taking advantage of its results and adequate training to staff morale and motivation they have

announced.

It is interesting to be added that, in the present study, the strategy of recruiting employees such as the

results of the previous research has no significant correlat ion with the innovation strategy. Thus, it seems that to

solve the problem of the organization studied their solutions can be used. Using the performance management of the

staff and evaluation of their performance, reward can be used to staff who always provide excellent service to

clients. Using the experience and expert ise of the old staff, especially in the mining, Commerce and Industry sector

is very effective to further the organizational goals. Princip led applying of recruitment strategies to change the

contract status of the workers who are skilled and educated workers and connected with external research centers to

improve the organization and increase its efficiency power will be effective. From among the strategies of HRM as

an independent variable, recru itment and employee-performance management strategies due to error level h igher

than 0.05 (sig = 0.05), have no statistically significant impact on creativ ity variab le as an independent variable.

Sakalas et al (2012), in a study entitled "HRM in a creative organization" achieved the following results (Sakalas et

al, 2012):

Sakalas et al (2012) in their study suggest that strategies for recruitment, selection and evaluation, reward

strategy, working- relationships development strategy between managers , of set of strategies of HR management

has a significant influence on employee creat ivity. In fact, the factors mentioned are necessary to create a creative

agency. In the present study, reward strategy with beta coefficient of 0.187 has a direct and significant impact on

creativity in organizations . Strategy of development of working relationships with a number of beta coefficient of

0.171 has a direct and significant impact on employee creativity, but the recruitment strategy of the staff has no

significant impact on the creativ ity of the studied organization.

The results of the study by Sakalas et al. (2012) see creativity as a process to develop organizational

functions. The results of the present study, according to the results of collected questionnaires and assessment of

informat ion obtained from the staff, creativ ity is necessary for the organization.




Sakalas et al. (2012), in their study, refer to the direct correlation between the organization management

style and stimulating creativity, knowledge creation, and its release and the quality of management as something

stimulat ing and constructive to convert creative ideas into innovation. In the present study, the style of management

is not mentioned, but while studying the correlation between HRM indicators, we achieved a great result. Human

resource development strategy, with a beta coefficient of 0.308 has the greatest impact on working relat ions

development strategy. This means that, the development of HR with measures such as improving mental health of

the staff, encouraging all employees to learn and teach and labor productivity affect the development of working

relations between employees and managers and thus improve the conditions and increase the efficiency.

Burma (2014) in a study titled "HRM and its significance for today's organizations" knows HRM as the

most efficient way to improve the situation of employees and thus the success of the organization (Burma, 2014). In

the following, we describe the results of the research.

Burma (2014) in his study refer to the direct and significant correlation between employee performance

management strategy and success, and that, this strategy should not just be used for assessment, punishment,

encourage, promotion, and the organizat ional demotion, but also to establish a strong correlation between employees

and managers.

In line with this, in the present study time, when the correlation between management strategies of HR and

development of working relations strategy was studied, it was concluded that employee performance management

strategy with beta coefficient of 0.199 has a significant direct impact on and the development strategy of working

relationships. In better words, strategy of employee performance management, enterprise performance transparency,

correct diagnosis of organizational goals, development of realistic standards, providing appropriate feedback for

constructive performance, planning of continuous development of staff that has the improvement of the performance

have a direct and significant correlat ion with the development of strategy of employees and managers working

relationship.

Burma (2014), in his research, concluded that, with the help of employee performance management

strategies, on can find the reasons of the cause of repeated absenteeism of employees, their reduced operational

efficiency, differentiation and separation of staff and managers. In fact, they see these factors as impeding successful

organization.

In the following, we deal with the direct correlation between HR management strategies and business

strategies, and that strengthening the skills, behaviors, and attitudes with the help of staff performance management

strategy reduce costs and increase product differentiation and have a positive impact on business strategy and is

considered as a competitive advantage.

In the present study, the researcher was looking to increase the efficiency, success and achievement of

organizational goals appropriately, create a strong and effective communicat ion of employees and managers to

create competitive advantage and generate value added, and to achieve this, the issue of creativity and innovation of

employees (the most important and most valuable organizat ional asset) should be dealt with.

Karlsson (2013) in a study entitled "The role of HRM in the innovation process" has achieved the following

results (Karlsson, 2013):

Karlsson (2013) in his study reached the conclusion that there is a significant correlation between HR

management and innovations in the organization. The results of the above study about multivariate regression

coefficients and beta coefficient show this . In fact, it can be said that creating a flexible and up to date look for

system staff attitude, coordination, and integration of HRM activit ies with a clear strategy of the organization HRM

strategies can help organizations to produce new ideas, provide solutions and good judgment, practical ideas and

innovation among employees. In fact, using of HR strategies, innovation, if nurtured, will be followed by

innovation.

Karlsson (2013), in his study, reached the conclusion that staff performance evaluation has a direct and

significant impact on staff innovation. This study also suggests this issue. Employee performance-management

strategy with respect to the beta coefficient of 0.171 has a direct and significant impact on employee innovation.

Karlsson (2013) in h is study has reached the conclusion that the proper correlation between human resource

managers and creative staff of the organization has a significant impact on innovation. The same goes in the present

study where development of working relationship with beta coefficient of 0.255 has a significant positive impact on

innovation.

The studied organization requires the establishment of a management system in which interactions replace

conflicts, removal of duplication and parallel activit ies by means of the incorporation of s ystems and technology,

and correct and clear definition of o rganizat ional goals.

In the current situation of the organization instead of being realistic, being idealistic can never return

perfection of objectives and increase operational efficiency. Giv ing importance to update knowledge and expertise




of the staff by the managers will strengthen the spirit of learn ing in them and improve organizat ional culture and

organizational objectives. The importance to cooperation and strengthening teamwork spirit rather than individual

work and attention to the entire executive team by managers is the mot ivational factor among employees.

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How Human Resources Management Strategies Affect ...indusedu.org/pdfs/IJRESS/IJRESS_920_73144.pdf · HRM perspective has the following objectives: a) improvement in the performance