HRM-Performance
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HRM and Performance
Dr. Achim Krausert
University of Nottingham Ningbo, China
Acknowledgement: These slides are partly based on material supplied by Professor Nicholas Bacon, who is the convenor of this module at the University of Nottingham, UK
Performance at the Individual Level
Context factors -technology -work systems -market conditions Competencies -Skills -Knowledge -Abilities
Behaviours -Actions -Decisions
35 30 25 20 15 10 5 0 <= 4 5 to 7 8 to 10 >=11
(Guest et al. 2003)
Annual Staff Turnover (%)
Methodology Issues
Research findings as trends (social sciences ≠ engineering) Cause and effect? Cross sectional vs. longitudinal Birdi et al. (2008) followed 308 companies over 22 yearsempowerment raised productivity after 1-4 years and teamworking after 6-9 years.
Outputs
Outcomes
Motivation
Krausert (2009), pp. 169 ff.
Performance at the Firm Level
Share price Profits
Processes • Work systems • Culture • Organisational structure
Contingent factor: product market strategy HCM for innovators / quality enhancers Control approach for cost reducers
Marchington et al. (2005), Sanz-Valle et al. (1999), Arthur (1992, 1994), Jackson, Schuler & Rivero (1989), Guthrie, Spell and Nyamori (2002), Blackburn and Rosen (1993)
Employee turnover, absenteeism Xiao Li
Competencies Motivation
Flexibility Lao Chen
Competencies Motivation
Xiao Wang
Competencies Motivation
Xiao Zhang
Competencies Motivation
Flexibility Lao Chen
Competencies Motivation
Xiao Wang
Competencies Motivation
Xiao Zhang
Competencies Motivation
Meta-analytical Evidence
85% of 92 studies find a positive impact of HCM on organisational performance – average impact = 20% (Combs et al. 2006) Internal fit most important aspect: Bundle of effective
practices rather than single initiatives Universally applicable in single industry and cross sectional studies
Guest’s findings: HR Practices and Turnover
Past performance of the evaluated individual or group Performance of others Logical deduction
Systematic approach to evaluation
Agreed in advance
Outputs
Outcomes
Motivation
Repertory Grid Method
Identify 3 top and 3 bottom performers
Compare 2 top performers with 1 bottom performer
Identify distinguishing performance dimension
Regular intervals
What to Appraise?
Context factors -technology -coworker behaviours -market conditions Competencies -Skills -Knowledge -Abilities
Behaviours -Actions -Decisions
Performance Appraisal
A formal process of evaluating the performance of an individual or group in relation to implicit or explicit performance expectations Performance expectations based on
(Buchanan, 1974, p. 533)
Weak but significant impact on on-the-job performance
(Riketta, 2Байду номын сангаас02; Allen and Mayer, 1996; Mathieu and Zajac, 1990; Mowday et al., 1982; Organ and Ryan, 1995; Randall, 1990)
Performance at the Firm Level
Share price Profits
Processes • Work systems • Culture • Organisational structure
Employee turnover, absenteeism Xiao Li
Competencies Motivation
Further triplet-wise comparisons
Repeat with different managers who are familiar with job
Attitudinal Organisational Commitment
‘A partisan, affective attachment to the goals and values of an organization, to one’s role in relation to the goals and values, and to the organization for its own sake, apart from its purely instrumental worth’