STRATEGIC HR ROLES AND ORGANISATIONAL LEARNING CAPABILITY AFFECTING ORGANISATIONAL COMMITMENT: AN INDIAN

PERSPECTIVE

Jyotsna Bhatnagarjyotsnab@vsnl.net / jbhatnagar@iilm.edu

Institute for Integrated Learning in ManagementNew Delhi –India

Phone: 011-24647820-ext: 240&

Dr. Anuradha Sharmaradha@hss.iitd.ernet.in

Indian Institute of TechnologyHumanities and Social Sciences

Hauz Khas, New Delhi.IndiaPhone: 011-26596509

Abstract The current debate in India is on the status of HRM and we discern the movement into the strategic realm. The current research study proposes to find answers to the questions which revolve around the Strategic role of HRM and the organisational learning capability , along with organisational and background variables. These, in turn are proposed to being affected by the organizational commitment of employees, moderated by Psychological empowerment perceived in the work place. The study will be using standardized scales and proposes to collect data from 1000 Indian managers to look for evidence in the relationship of these variables, using a quantitative and a qualitative data analysis approach. The proposed study will be a contribution to the theory of strategic HRM.

Key words: Strategic HR roles, Organisational Learning Capability/Psychological Empowerment, Organisational Commitment, Firm Performance

1.0 Introduction:

Since the 1960s employee commitment continues to be one of the most exciting issues

for both managers and researchers. Many studies have attempted to explore its effect on

work outcomes such as turnover and job performance. Nevertheless, the need for a

greater understanding of this Organisational phenomenon increases daily. (Suliman and

Iles, 2000).The major driving force behind this continuous recognition of commitment in

the management literature for more than three decades is that it is often seen as the key to

"business success" (Benkhoff, 1997a). More recently, some researchers (e.g. Baruch,

1998; Carson ET al., 1999) have started doubting the viability and suitability of

Organisational commitment (OC) to today's fast changing environment in the West. On

the contrary, other researchers argue that one of the year 2000 key issues is

Organisational Commitment.

Keep (1989), uses the term commitment in his definition of HRD: ‘One of the primary

objectives of HRD is the creation of conditions whereby the latent potential of employees

will be realized and their commitment to the course of the organization secured. The

latent potential is taken to include not merely the capacity to acquire new skills and

knowledge …’ Given this definition thus, the linkage of commitment to HR, and the

linkage of Organisational learning to HR becomes evident, which this study proposes to

test both empirically and qualitatively . Further, Guest (1987), recommends researchers

use attitudinal component of Organisational commitment (Mowday, Porter and Steers,

1982), due to it being more applicable to HR policy and formation.

Guest(1987,1992,1995) and Coopey and Hartlet (1991) further argue that HR policies

have been designed to produce HR outcomes, such as eliciting employee commitment.

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According to Beer and Spector (1985), commitment entailed the creation of high trust

relations between all sectors of the workforce, which in turn meant employees being able

to exercise influence and in some way be ‘empowered’. Iverson (1996) pointed out that,

‘Future research…should focus on the increasing importance of appropriate HR policies

to elicit Organisational commitment in both public-and private sector organizations, in

manufacturing and service industries…’ The current research study attempts fills this

caveat pointed out by researchers. So the questions, which this research study proposes to

probe, are as follows: Are human resource managers able to sustain the commitment and

psychological empowerment of the workforce? What is the impact of HR role and

Learning capability on Organisational commitment? These are some of the issues which

need to be clarified through research, which this study proposes to pursue. Let us look at

the status of HRM in India vis .a, vis liberalization.

1.1 The New Business scenario and HRM in India:

The liberalization of economic policies and increased level of competition by overseas

firms have increased the pressure on the personnel function of Indian domestic

companies to prepare and develop their employees so that they can compete with

overseas firms in skills, efficiency and effectiveness (for more details, see Budhwar and

Sparrow 1997;Krishna and Monappa 1994; Sparrow and Budhwar 1997a; Venkataratnam

1995) Though the existing Indian literature …shows a ten year gap regarding the

developments in personnel function compared to the west (Budhwar 2000), yet some

studies have shown, that HRM is slowly growing strategic in India (See Budhwar, 2000;

Singh; 2001; Kandula 2001; Sharma and Sharma, 2002;Bhatnagar and Sharma 2002).

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How does commitment fit in here? Is the workforce who looks not at life long

employment still committed? Does HR role drive commitment? Does Human Resource

Role affect Organisational commitment? What has been the role of Human Resources in

the face of so much transformation? Are there some other conditions which are required

for effective role fulfillment and increased commitment? What is the level of

Organisational learning capabilities here? Do the roles of HR have an impact on the

psychological empowerment of the Employees? Does the life cycle of an organization

affect HR Role? Similarly is size of an organization impacting the Psychological

empowerment? What is the position of gender in terms of these variables? Do education

and age of the managers affect HR Roles and commitment? These questions have lead to

firming up he research question for the study, which is:

2.0 Research Question:

How do Strategic HR roles, Organisational learning Capability, background

variables and Organisational variables affect Organisational commitment? Is this

relationship moderated by Psychological empowerment?

3.0 Objectives of Research:

The broad objective of this research is to arrive at the antecedents of Organisational

commitment. Sub-objectives are to find out:

What is the impact of Organisational learning Capability and strategic HR roles

background variables and Organisational variables on Organisational commitment.

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Is the relationship moderated by psychological empowerment?

What is the relationship between Strategic HR roles and Organisational learning

capability?

What are the predictors of Organisational commitment?

What is the relationship between these variables and Firm performance?

4.0 Brief Literature Review

4.1.1 Organisational Commitment:

The twenty-first century will witness the rising of commitment research across cultures,

not the falling as some researchers argue (e.g. Baruch, 1998). The recent perspective of

multidimensional organisational commitment is taking over from the unidimensional

approach that has dominated management research for more than three decades. The

majority of the commitment studies have been conducted in the Western countries.

According to Meyer (1997, p. 218) "the models of commitment ... have been developed

and tested in Western countries. There is a need for more systematic research to

determine whether these models apply elsewhere". The link between HR roles and

commitment is not present in research, though the link between commitment and role

behaviour is much researched. Stevens, Beyer and Trice (1978) developed a role-taking

model in their attempt to clarify psychological and structural determinants of the

managerial commitment process. On the other hand it was found that Organisational

commitment was negatively associated with role stress. (Diesh, 1997;Mathieu, 1991;

Chatterjee1992). Commitment and role –making behaviour seem to have tentative

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linkages (Sayeed, 2001). Further the link between HR and commitment gets impetus

from the research of Guzzo and Noonan 1994, which illustrated the connection between

interpretations of HR practices and employee commitment. This is an area where a

research lacuna exists and the proposed study addresses this research gap. Also the

linkage between Organisational commitment and Organisational learning is important

and conceptually relevant. Let us look at the research in this area.

4.1.2 Organisational Learning Capability:

The well-known Organisational learning frameworks (Daft and Weick, 1984; Huber,

1991; March, 1991; March and Olsen, 1975; Watkins and Marsick, 1993) recognizes the

tension of strategic renewal. In India Ramnarayan and Bhatnagar (1993), looked at the

triggers for organisational learning and found HR to be one of those triggers. (for a

detailed literature review on Organisational Learning see Bhatnagar, 2000). HR roles

have been overlooked by researchers, though linkage between Organisational learning

and HRM, Role of consultants, supervisors, and the role of change strategies and

Organisational learning has been researched. ( Beckherd and Prichard 1992;Walton 1999;

Massey and Walker, 1999; London and Smither 1999, Mohrman & Lawler 1997). For

linkage and review of these two variables, see Sharma and Sharma (2002), where it is

evident that (1) the issue of learning is positively related to strategic HRM. Linkage

between these two variables of Strategic HR role and Organisational learning capability

is proposed by this study. Further, researchers have pointed out that learning

organizations claim substantial benefits, and one among them is organisational

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commitment. (Walton, 1999: pp 409). Using the above research context it can be further

argued that learning organisations create and retain their workforce for a longer time, as

the loyalty and commitment level of the workforce is high. According to Sayeed (2000),

‘it is extensively debated in the management literature, that if non-learning organisations

are properly guided from within, they can develop a learning style’, or even learning

capability, which this study proposes to probe. It can also be claimed that such

organisations develop a tremendous capacity to look inwards as well as outwards to

optimally utilize various types of resources (Pedlar ET al, 1991). The Organisational

learning capability is quite significant in the context of making employees committed to

the organization, and this is possible if the organization follows a employee centered role

which is accentuated through Strategic HR roles within the organization. It is this linkage

which the proposed study proposes to study intensively.

4.1.3 Strategic HR Roles :

Role conflict and commitment is very extensively researched ( Hrebiniak and Alutto,

1972; Singh et. al, 1981, Becker ET al, 1995), but there very few studies which have

related Strategic HR roles and Employee commitment. Literature does point out the

connection between interpretations of HR practices and employee commitment. (Guzzo

and Noonan, 1994). It was observed that workers’ interpretation of their employer’s

human resource practices affected their psychological contract with the employer and

consequently their commitment to the employer. HR and Commitment have broad

linkages in Literature. Walton (1985) states a broad HRM approach to the ways in which

people are treated, jobs are designed and organizations are managed. As Guest (1987) has

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indicated, HR policies are designed to maximize organisational integration, employee

commitment, flexibility and quality of work. It is these linkages that the study proposes to

look at.

Though HR practice interpretations have been studied, HR roles and Commitment

linkages remain largely unexplored. Further Strategic HR roles in themselves need

further research, as has been pointed out by the literature. Human Resource roles have

formed the basis of prescriptive and theoretical studies Zabriskie & Huellmantel, 1989,

McKee,1997). Transformational change and it’s effect on traditional HR roles has been

studied by Lancourt and Savage, 1995. While recent work has highlighted the changing

role of HR (Ulrich1997, Connors and Ulrich1996, Valkeavaara 1998, Sparrow &

Marchington, 1998 Down, Mardis, Connolly & Johnson1997, O'Reilly1998), these have

been neglected in India. The national HRD network and the Confederation of Indian

Industries, (CII) have been giving HRD awards for organizations that have outstanding

practices or at least distinguished themselves in this regard. An analysis of the HRD

award -winning organizations does indicate that excellent performers in the Indian

corporate sector do seem to have excellent practices. (Rao 1996). Researchers like

Patnayyak, 1996, Rao and Abraham, 1986, Rao 1982, Monappa and Kamat 1980's have

undertaken studies mostly about the HR Climate of the organizations or general

acceptability of the HR/personnel function. Though attempts have been made to look at

the HRD practices in India regarding its strategic status (Pareek 1997;Singh 1999;

Kandula, 2001, Sharma and Sharma, 2002) yet the area remains largely unexplored.

Research study by Bhatnagar and Sharma( 2002), attempted to look at the conceptual

strategic HR model of Ulrich(1997), and to the limited knowledge of the researcher no

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further attempt has been made to look at this model and it’s applicability in India. Given

the above research gap it becomes imperative to investigate the strategic Human resource

roles in India. Further there seems to be that the linkage between Strategic HR roles

and learning is not very clear and the relationship needs further strengthening

which this study proposes to pursue.

4.2.0 Background Variables:

4.2.1 Age & Education:

In general , research has yielded ambiguous results, with some studies indicating that

demographics may have little or no effect (Shadur et al., 1995) and other research

indicating that demographic variables are either significantly related to or are strong

predictors of job satisfaction and commitment.(Fogarty, 1994). Hrebanik and Aluttoo

(1972) found out that age was positively related to Organisational commitment. Analysis

of differences across sexes revealed differences in commitment though females exhibited

less of a propensity to change the organization they were employed at than their male

counterparts. Regardless of occupation, younger people were employed to their

organizations as older subjects, whose careers were more fully developed. Respondents

planning to seek education advancement showed increased commitment compared to

those who did not plan of education advancement.

Taormina (1999), states that it may be possible for managers to develop appropriate

human resource strategies for improving satisfaction and commitment, if it is known that

certain groups are not attaining high levels of these variables. This research study focuses

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on the role of HR, Demographic variables, and Organisational commitment to strengthen

this research need

4.2.2 Gender:

Woodall (1996) raises an important question: Is HRM really Gender Blind? Excluding

Research Monographs, over 15 academic text books have been published on HRM since

1989.Only one of them, the first edition of (Towers 1992) has included a separate chapter

on women, and another (Dickens in Sisson 1994), contains a critical review of equal

opportunities in employment in general. Several other texts on HRM do not even have an

index reference to women. But there is a real need to address the women issues in HRM.

(Woodall, 1996). Literature has found that women are more committed than men.

Women managers’ intention to leave the organization was investigated through a set of

workplace variables and affective responses (Rosin and Korabik, 1991). The results of

the analysis indicated that women who felt that their expectations had not been met, who

described their jobs as limited in leadership responsibility, variety, time flexibility and

autonomy, and who cited office politics as potential factors in decision to leave ,

expressed low job satisfaction and Organisational commitment. The present study

proposes to investigate the linkages of gender to organisational commitment, Strategic

HR roles and organisational learning capability. .

4.2.3 Hierarchical level:

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In most research studies hierarchical levels were found to be a significant background

variable. Welsch and Lavan (1981) found that older employees had a higher level of

Organisational commitment as also employees at higher hierarchical levels. McDonald’s

(1992) study found that for both middle and first line managers controlling the

subordinates was important, but Mintzberg (1973), did not support the thought that

managerial jobs at different levels differed in any kind. In an Indian research study

conducted on 143 managers, Das and Manimala (1993), found that roles of a manager

across Organisational hierarchy reflect differences. Middle managers spent more time on

the nurturing role and senior managers on information dissemination and social roles.

Contradictions in the above research make it imperative to research this background

variable. Many research studies have found the middle managers and top managers to be

more committed than the junior managers. Morris and Sherman (1981) investigated a

multivariate predictive model of Organisational commitment and focused on the role of

the job level and Organisational differences. Vancouver and Schmitt (1991) on the other

hand focused on Organisational commitment and goal congruence between hierarchical

levels. The proposed study wishes to investigate these linkages further.

4.3.0 Organisational Variables:

4.3.1 Organisational life cycle stage

In a research study conducted by Budhwar (2000) contingent variables influencing HRM

in India were found to be organisational life cycle stage. Research in HRM also shows

significant influence of Organisational life cycle stages on HRM Policies and practices

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(See Hendry and Pettigrew, 1992). It would be addressing a research lacunae, if HR roles

and their linkage with life cycle stage is empirically investigated, further Organisational

commitment and Organisational Learning Capability linkages to Organisational life cycle

stage would provide a richer perspective to this research.

4.3.2 Size:

Size of the organization (based on the total number of employees) is known to

significantly influence HRM policies. (See Jackson et al 1989). Budhwar (2000) found

Indian HRM to be influenced by size. For example, Small organizations (less than 499

employees) give less importance to communication through Unions or Work councils

(Venkataratnam, 1995). Similarly, organizations having employees between 1000 to

5,999 are likely to communicate through suggestion boxes, attitude survey etc. This

research suggests that if we look into the HR roles and the Size of the organization, we a

re likely to find some significant relationship.

4.3.3. Organization’s financial performance:

Balfour and Wechsler (1991) used samples of organizations to establish the connection

between commitment and Organisational performance. The results indicated that

employees develop a sense of attachment to an organization mainly on the basis of

whether they perceive it to be supportive of their values and a hospitable and socially

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satisfying place to work. This finding implies that employee commitment and attachment

to the organization can be increased through efforts to improve the organization’s social

environment and purposive-ness and does not require pay hikes. Although significant

benefits may be gained from the efforts to increase employee commitment, enhanced

productivity may not be one of them. The proposed study would be looking at these

linkages. Further, the relationship between HR practices and business results is built on a

simple premise that better deployment and use of HR practices should correlate with

higher business performance. (Ulrich 1997). Pfeiffer (1994), on the basis of literature

review concluded that employee participation and empowerment, and other variables like

Training and performance contingent incentive compensation are widely believed to

improve the performance of the organization. Huselid, Jackson and Schuler, (1997),

found that organisational effectiveness was associated with capabilities and attributes of

HR staff. This research study proposes to strengthen the link between Strategic HR roles

and firm performance leading to competitive advantage, which has not been probed as

yet.

4.4. Moderating Variable: Psychological Empowerment:

Empowerment has been considered as a panacea for improving employee commitment

and innovation (Rothstein, 1995) and a prerequisite to the survival of business in the

emerging workplace and an in dispensable device for accomplishing a competitive edge

in a globalised and liberalised economy (Gosky ad Belfry, 1991). (for a detailed literature

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review see Dwivedi, 2000). Notwithstanding the growing significance of empowerment

worldwide and the continued popularity of varied management interventions to

accomplish Organisational competitiveness (Lawler et al 1995), there remains a gap

between manager’s enthusiasm for such programmes and systematic verification of their

effectiveness (Ledford and Lawler 1994). For individuals to feel empowered they must

perceive a role empowerment to be liberating rather than constraining (Deci1989). Role

ambiguity and psychological empowerment and intrinsic motivation have been

researched (Sawyer, 1992; Spreitzer, 1996). In a theoretical model of empowerment in

the workplace, Thomas ad Velthouse (1990), suggested that the Organisational

environment could have a powerful influence on cognitions of empowerment. This

research wants to extend this relationship to include Strategic HR roles and psychological

empowerment, and also test Psychological empowerment as a moderating variable

between HR Roles, OLC, Background, Organisational variables and Organisational

commitment. Romzek (1990) claimed that compared with private organizations and

managers public agencies and managers are somewhat limited in their ability to enhance

employee retention. Employees’ psychological ties to private sector employers are often

based on investments in the workplace, but because of the public sector’s fiscal

constraints and rules and regulations, such investment in the public sector is generally

insufficient to achieve long-term retention of employees. However, psychological ties can

also be based ion shared values and hence, may be positively influenced by

Organisational culture, socialization processes and the ability to fulfill employees’

expectations. In fact there is a need for such a research as indicated by Bowen and

Lawler, 1992, ‘there is still precious little research on the consequences of

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empowerment…’Spreitzer, 1996 has pointed out the need to investigate psychological

empowerment across hierarchical levels, in more demographically diverse samples and

across different contexts (Manufacturing, services, etc). It is this need which the proposed

study addresses.

5.0 Theoretical Model:

Independent Variable Dependent Variable

1. Strategic HR Roles Organisational Commitment Firm 2. Organisational Learning Capability 3. Background Variables Performance 4. Organisational Variables

Psychological Empowerment

(Intervening Variable)

6.0 Research Design:

Research design is based on questionnaire survey and case study research design The

researcher proposes to conduct survey on the sample and construct case studies of those

organizations where secondary data are made available to the researcher.

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6.1Sampling:

Three stage sampling design is proposed for the study. In the first phase 50 organizations

will be picked up purposively. In the second stage on the basis of Simple random

sampling, questionnaire survey will be conducted. Thus data will be collected from 800-

1000 subjects. Out of the fifty organizations purposive sampling will be used in the case

study research design, and only those organizations willing to share their secondary data

will be studied in depth.

7.0 Pilot Study

A pilot study will be conducted to pilot test two questionnaires in the national capital

region of India

8.1 Dependent Variable

8.1.1 Organisational commitment: Theoretical definition

Mowday, Steers and Porter (1979) define commitment as (a) a belief in and acceptance

of Organisational goals and values; (b) a willingness to exert effort towards

Organisational goal accomplishment; and (c) a strong desire to maintain Organisational

membership.

8.1.2. Operational definition:

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Organisational Commitment scale (Allen and Meyer, 1990), a 24 item scale, based on 7

point Likert scale, which contains items on three components of (a) affective

commitment; (b) normative commitment; (c) continuance commitment

8.2.0 Independant variables:

8.2.1.0 Organisational learning capability: Theoretical definition

‘A learning organization is an organization skilled at creating, acquiring and

transferring knowledge and at modifying its behavior to reflect new knowledge’. (Pg. 80).

Garvin (1993)

8.2.1.1 Operational Definition:

Organisational Learning Capability Questionnaire, (Ramnarayan, 1996). The instrument

consists of 46 items to measure six dimensions of learning capability.

8.2.2.0 Strategic HR roles: Theoretical definition

Ulrich 1997 defines the following:

‘Strategic Partner’ : HR professionals become strategic partners when they

participate in the process of defining business strategy, when they ask questions that

move strategy into action and when they design HR practices that align with business

strategy.

Administrative Experts, are those HR professionals who ferret out unnecessary costs,

improve efficiency and constantly find new ways to do things.

Employee Champions are those HR professionals who link employee contributions to

the organization's success.

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As Change Agents, HR executives help organizations identify a process for managing

change and to identify and implement processes for change.

Business partner is a dynamic equation which is:

Business Partner = Strategic Partner + Administrative Expert + Employee Champion +

Change Agent.

8.2.3Operational Definition:

Human Role Assessment Survey Questionnaire. (Ulrich’s 1997).This has 40 items, which

have to be rated on a five point Likert scale and measures the four roles of strategic

partner, administrative expert, employee champion and change agent. The business

partner role is the summation of the four roles.

8.3.0 Background variables

8.3.1 Gender: Male and female organisational members would represent this variable.

8.3.2 Hierarchical level: Lower, middle and top management levels are the three

hierarchical levels

8.3.3 Age: Demographic variable of chronological age.

8.3.4. Education: Education level of employees, high school, 10+2, graduation, post

graduation, Professional degrees.

8.4.0 Organisational variables:

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8.4.1.Organisational life cycle stage Infancy, growth, maturity or decline life cycle stage.

8.4.2 Size of the Organization: Small Organization (less than 499); Medium

Organization (500-4999) and Large organization (more than 5000) members.

8.4.3 Firm Performance:

The turnover is a widely used measure of Organisational productivity

8.5. Moderating Variable 8.5.2 Psychological Empowerment: Theoretical definition

Spreitzer, (1995), “Psychological empowerment is defined as a motivational construct

manifested in four cognitions: meaning, competence, self-determination and impact.”

8. 5.3 Operational definition:

Psychological empowerment scale (Spreitzer, 1995), a. 12 item scale divided into four

components of meaning, competence, self determination and impact, and is based on

Likert’s 6 point scale.

9.0 Data Collection:

The data will be collected from multiple sources from the organizations.

9.1.1 Primary data collection:

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Data collection tools of Ulrich (1996), Ramnarayan (1996), Spreitzer (1995), Allen and

Meyer(1990); along with background and organisational variables will be conducted in a

survey research design on the sample.

9.2 Secondary data collection:

Published materials, Survey reports, annual reports, media reports, along with archival

data will be collected, wherever available to construct case studies.

10.0 Data analysis:

10.1.Quantitative Data analysis:

Analysis of variance to find the significant difference between the organizations and

between the five variables.

Duncan’s Multiple range test to compare each organization with the other.

t tests/ z test to test the significance of difference

Spearman’s correlation co-efficient to find relationship between the variables.

Step wise multiple regression to find the predictor’s of the strategic HR roles.

10.2.Qualitative Data analysis:

Content analysis of secondary data, where available to establish chain of evidence

linking Strategic human resource roles to the other variables.

Pattern matching and explanation building by looking at data of the multiple cases.

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11.0 Implication and contribution of the study:

The study will contribute to the movement of HRM in India, it will help establish the HR

roles in India, and it will help in competency building at the organizations and will

contribute in validating the model of Ulrich in Indian cultural settings. It will clarify the

nature and effectiveness of the variables of Organisational learning capability,

Organisational commitment and psychological empowerment in Indian organizations. It

will contribute to the body of empirical research in India, as well as qualitative research

on the variables under study. It will further help the organizations in the sample to plan

diagnostic interventions based on the recommendation of the study. The study will

contribute in establishing the correlates of the strategic HR roles, unique to the national

culture of India.

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