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Prof Karin Sanders HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS Prof. Karin Sanders Organizational Psychology University Twente; the Netherlands

HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS. Prof. Karin Sanders Organizational Psychology University Twente; the Netherlands. Management & HRM so far: emphasis on content From content to perceptions - PowerPoint PPT Presentation

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Page 1: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin Sanders

HUMAN RESOURCE MANAGEMENT:FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof. Karin SandersOrganizational Psychology University Twente; the Netherlands

Page 2: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 3: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE 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

Page 4: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE 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)

Page 5: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 6: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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?

Page 7: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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)

Page 8: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin Sanders

Management - HRM - Employees

SeniorManagement / EOR

HRM ; Supervisors (HR Practices)

Employees

Page 9: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 10: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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)

Page 11: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 12: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersProf. dr. Karin; April 2009

Human Resource Management: content

Strategy Performance

Page 13: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersProf. dr. Karin; April 2009

Human Resource Management

Strategy Performance

attitude & behavior employees

Page 14: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersProf. dr. Karin; April 2009

Human Resource Management

Strategy PerformanceHRM attitude & behavior employees

Page 15: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersProf. dr. Karin; April 2009

Human Resource Management

Strategy PerformanceHRM attitude & behavior employees

Page 16: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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!!

Page 17: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 18: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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?

Page 19: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin Sanders

LMX, Satisfaction & Innovative behavior

Model 1:

Model 2:

LMX Satisfaction HR

Innovative behavior

LMX

SatisfactionHR

Innovative behavior

Page 20: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 21: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 22: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 23: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin Sanders

LMX, Satisfaction & innovative behavior: results

LMXSatisfaction

HR

Influence Work content

Innovative behavior

Page 24: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 25: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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)

Page 26: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 27: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 28: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 29: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009

Bowen & Ostroff: theory

Distinctiveness Consensus

Consistency

Organizational climate

Organizational performance

Page 30: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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?”

Page 31: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 32: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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)

Page 33: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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”

Page 34: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 35: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009

Bowen & Ostroff: results

Distinctiveness Consensus

Consistency

Organizationalclimate

Affective Commitment

Page 36: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009

Bowen & Ostroff: results

Affective Commitment

Consistency

Weak Climate Strength

Strong Climate Strength

Page 37: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 38: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin Sanders

The Bowen & Ostroff model:

Chinese hotels

Xiaobei Li, Steve Frenkel,

& Karin Sanders

Page 39: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 40: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 41: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009

Bowen & Ostroff: theory

Distinctiveness Consensus

Consistency

Organizational climate

Work satisfaction, vigor,

intention to quit

Page 42: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009

Bowen & Ostroff: results

Distinctiveness Consensus

Consistency

Organizationalclimate

Work satisfaction

Page 43: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 44: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009

Bowen & Ostroff: results

Distinctiveness Consensus

Consistency

Organizationalclimate

Vigor

Page 45: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

Prof Karin SandersKarin Sanders & Xiaobei Li, May 7 2009

Bowen & Ostroff: results

Distinctiveness Consensus

Consistency

Organizationalclimate

Intention to quit

Page 46: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 47: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 48: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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)

Page 49: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 50: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE PERCEPTIONS

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

Page 51: HUMAN RESOURCE MANAGEMENT: FROM HRM CONTENT TO EMPLOYEE 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