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Papers related to hotel employee perceptions/HRM strength - 2011 - Measurement in China.pdf

Strategic HRM as process: how HR system and organizational climate strength influence Chinese employee attitudes

Xiaobei Lia*, Stephen J. Frenkela and Karin Sandersb

aSchool of Organization and Management, Australian School of Business, The University of New South Wales, Sydney, Australia; bOrganizational Psychology and Human Resource Development,

Faculty of Behavioral Sciences, Twente University, Enschede, The Netherlands

In contrast to the high-performance work systems literature that focuses on HR practices, we follow Bowen and Ostroff in examining human resource management (HRM) processes, specifically the strength of an HR system (its distinctiveness, consistency, and consensus) and its contribution to the organizational climate (employees’ shared perceptions of the HR system). Based on 810 employees within 64 units in three Chinese hotels, we examine how employee perceptions of HRM system strength and organizational climate are associated with employees’ work satisfaction, vigor, and intention to quit. The distinctiveness of an HRM system was found to be related to the three employee work attitudes, and high climate strength increases both the positive relationship between consensus and work satisfaction, and the negative relationship between consensus and intention to quit. We draw on aspects of Chinese society to interpret these findings. Several important research and HR practice implications are highlighted and discussed.

Keywords: China; high-performance work system; human resource practices; organizational climate; strategic HRM; work attitudes

Introduction

An interest in the effects of high-performance work systems (HPWS) on employees in

service industries has been growing in recent years (Batt 2002; Boxall and Macky 2007).

HPWS is usually defined as a set of human resource (HR) practices aimed at increasing

employees’ abilities, motivation, and opportunity to participate in decision making (Tsui

and Wang 2002; Guest 2007; Sun, Aryee and Law 2007). HPWS, like high-commitment

Human Resource Management (HRM) (Benkhoff 1997; Agarwala 2003) and high-

involvement work systems (Xiao and Bjorkman 2006; Macky and Boxall 2008), assumes

that various types of HR practices interact to improve employees’ work attitudes,

ultimately contributing to positive employee behaviors and organizational effectiveness

(Boxall and Macky 2009). Despite some skepticism (Wood and Wall 2007), the weight of

empirical evidence favors this assumption (Hailey, Farndale and Truss 2005; Combs, Liu,

Hall and Ketchen 2006; Boxall and Macky 2009).

Rather than focusing on HR practices or the content of HRM, some academics (Bowen

and Ostroff 2004; see also Patterson, Warr and West 2004; Neal, West and Patterson 2005;

ISSN 0958-5192 print/ISSN 1466-4399 online

q 2011 Taylor & Francis

DOI: 10.1080/09585192.2011.573965

http://www.informaworld.com

Dr. Xiaobei Li is now a research fellow at Guanghua Leadership Institute, Guanghua School of Management, Peking University, China.

*Corresponding author. Email: xiaobei.li@gsm.pku.edu.cn

The International Journal of Human Resource Management,

Vol. 22, No. 9, May 2011, 1825–1842

Nishii, Lepak and Schneider 2008) have recently turned their attention to HRM process, in

particular, the way HR policies and practices are communicated to employees. Bowen and

Ostroff (2004) identify a strong HRM system as comprising three features: distinctiveness,

consistency, and consensus. They suggest that these features contribute to a strong

organizational climate defined as the shared perceptions of the organization in terms of

practices, policies, procedures, routines, and rewards (Bowen and Ostroff 2004: 205). The

establishment of a strong organizational climate builds on an individual’s psychological

climate, defined as an experientially based perception of what people ‘see’ and report

happening to them as they make sense of their environment (pp. 205).

When HR practices are perceived by employees as distinctive, consistent with each

other, and applied by key policy makers in a similar way, individual perceptions are likely

to converge and will tend to be reinforced by the collectivity. In other words, feelings of

well-being will lead to higher performance through ‘motivating employees to adopt

desired attitudes and behaviors that in the collective, help achieve the organization’s

strategic goals’. (Bowen and Ostroff 2004, p. 204)

In this article, we test Bowen and Ostroff’s key ideas by examining the effects of the three

features of an HRM system and shared perceptions regarding HPWS on three commonly

used measures of employee work attitudes: work satisfaction, vigor, and intention to quit.1 In

addition, we examine the moderating effects of organizational climate on the relationships

between features of an HRM system and employee work attitudes. Our contribution is to

subject a leading theory of strategic HRM process to empirical test and by so doing advance

our understanding of the mechanisms linking HR systems to employee attitudes. In pursuing

this path, we improve on a previous study by Sanders, Dorenbosch and de Reuver (2008) by

using three dependent variables rather than a single measure (affective commitment), and by

employing a more convincing measure of consensus based on employee perceptions of HR

policy and practice implementation rather than the extent of agreement as reported by line

and HR managers (Fiske and Taylor 1984; Boxall and Macky 2007; see also Sanders et al.

2008). Employee surveys in three five star-hotels located in comparable urban areas in China

provide the data for our study. Focusing on a single industry segment helps to minimize the

influence of labor and product markets, and other environmental characteristics (Baron and

Kreps 1999; Wright and Haggerty 2005). HPWS is relevant to these workplaces, because,

compared to other privately-owned organizations in China (Zhu 2005, Zhu, Thomson and

Cieri 2008), five-star Chinese hotels have been eager to adopt advanced HRM practices

including extensive training and formalized performance appraisal systems (Sun et al. 2007).

The remainder of this article is organized in four sections. First, we outline our key

concepts and theoretical framework followed by a discussion of motivating hypotheses.

Second, we describe the data and methodology. Third, we report our results that are

discussed in a fourth section that identifies some of the limitations of the study and

considers the implications for further research and HR policy and practice.

The research framework

As mentioned above, the key concepts in our study are features of an HRM system and

employee attitudes. The research framework is summarized in Figure 1, followed by an

outline of our hypotheses.

Relationships between HRM system features and employee attitudes

Based on attribution theory (Kelley 1973), the process view of HRM explains how HR

practices shape an individual’s psychological climate (Ostroff and Bowen 2000; Bowen

X. Li et al.1826

and Ostroff 2004). Employees use HRM messages as communication signals from

management to make sense of their work situation (Guzzo and Noonan 1994;

Schneider 2000). This sense-making process is facilitated by individual attributions about

cause–effect relationships (Nishii et al. 2008). When employees become increasingly

confident in making such cause–effect inferences, a strong psychological climate is likely

to emerge. As noted earlier, three features of an HRM system that contribute to a strong

climate are distinctiveness, consistency, and consensus (Bowen and Ostroff 2004).

Distinctiveness refers to an HRM system being visible, understandable, legitimate, and

relevant to employees’ goals (Kelley 1973; Bowen and Ostroff 2004; Sanders et al. 2008).

When the HRM process clearly captures attention, employees are more likely to attribute HR

messages to a purposeful management. Consistency refers to the features of an HRM system

being internally aligned. This means that HR practices reinforce one another synergistically

and are more likely to be viewed as a causal bundle having distinctive effects ultimately

attributable to management across contexts and time (Sanders et al. 2008, p. 414). Consensus

refers to the extent to which there is agreement among policy makers – typically HR and line

managers – in the way HR practices are implemented. Thus, when HRM policy

implementation, including procedures, are seen as highly consensual among decision makers,

employees are more likely to agree that these emanate from management, i.e. that there is a

cause–effect relationship. According to Bowen and Ostroff (2004), when an HRM system is

high in the three features referred to above, employees will tend to have a clearer view of

cause (HRM)–effect (a purposeful management) relationships and are likely to be strongly

influenced by these system properties, especially where it conveys positive messages. This

conjecture is largely but not entirely supported by the only empirical study we are aware of

that has tested Bowen and Ostroff’s key ideas. Sanders et al. (2008) used multi-actor data

(671 employees, 67 line-managers, and 32 HR managers) from 18 departments in four Dutch

hospitals to analyze the relationships between HRM system features and employees’

affective commitment. Distinctiveness and consistency were found to be positively related to

affective commitment, but consensus (measured as the deviance score of the perceptions of

line and HR managers concerning HR practices) did not predict affective commitment.

As noted above, in this study, we focus on three employee attitudes: work satisfaction,

vigor, and intention to quit rather than affective commitment as our dependent variables

and following Bowen and Ostroff (2004) we hypothesize that:

Employees’ perceptions of the distinctiveness, consistency, and consensus of the HRM system are positively related to their work satisfaction (H1) and vigor (H2), and are negatively related to intention to quit (H3).

HRM system features: Distinctiveness,

Consistency, and Consensus

HPWS Climate Strength

Employee attitudes: Work satisfaction, Vigor

and Intention to Quit

Individual Level

Unit Level

Figure 1. Hypothesized relationships linking HRM system features, HPWS climate strength and employee outcomes.

The International Journal of Human Resource Management 1827

Shared perceptions: the moderating effects of HPWS climate strength

Bowen and Ostroff (2004, p. 204) propose organizational climate as a mediator in the

relationship between HRM system strength and organizational performance. Sanders et al.

(2008) suggest that the concept of strong organizational climate used by Bowen and

Ostroff (2004) refers to climate strength rather than climate level. Although climate level

represents the convergent ratings of perceptions of a specific facet of the work situation

such as safety, service, or HRM (Schneider 1990, 2000; Klein, Conn, Smith and Sorra

2001; Schneider, Salvaggio and Subrirats 2002) and is usually measured by the mean of

individual perception scores, climate strength refers to the extent of agreement about the

climate. It is measured by homogeneity statistics relating to the aggregation of members’

perceptions, such as standard deviation and within-group correlations (Klein et al. 2001;

Luria 2008). Thus, the concept of climate strength more closely represents Bowen and

Ostroff’s (2004) concept of organizational climate as employees’ shared perceptions.

In this study, we define HPWS climate strength as the extent of shared perceptions of

HPWS in an organization. Where this is high, established norms induce conformity in

terms of responses and foster skills that facilitate appropriate attitudes and behavior

(Mischel 1973, 1977; Mischel and Peake 1982; Bowen and Ostroff 2004; Johns 2006).

According to organizational climate research, climate strength usually has a moderating

effect on outcomes (Gonzalez-Roma, Peiro and Tordera 2002; Schneider et al. 2002;

Ehrhart 2004). Specifically, the relationship between antecedents and outcomes is stronger

in a strong situation than in a weak one. Reflecting the convergence of group members’

perceptions regarding climate level, strong climate strength implies that associated

relationships of antecedents and outcomes are inclined to be interpreted in a similar way

by group members (Mossholder, Bennett and Martin 1998; Schneider et al. 2002; Yang,

Mossholder and Peng 2007). Moreover, contra Bowen and Ostroff (2004), Sanders et al.

(2008) found that organizational climate moderated rather than mediated the relationship

between consistency and affective commitment, this relationship being stronger when

employees had more similar perceptions concerning the existence of high commitment

work systems within their department. Accordingly, we expect that HPWS climate

strength has a moderating rather than mediating effect on the relationship between the

features of the HRM system and employee attitudes. In a situation where HPWS climate

strength is high, implying that employees share perceptions regarding HPWS (HRM

content), employees will be more confident about attributing this as having benign effects

on their work experience. Thus, it can be hypothesized that:

HPWS climate strength moderates the relationships between key features of an HRM system (distinctiveness, consistency and consensus) and work satisfaction (H4), vigor (H5), and intention to quit (H6) such that these relationships are stronger when HPWS climate strength is high.

Method

Sample and procedures

Data were collected from three five-star hotels, located in three urban cities (Shanghai,

Ningbo and Dongguan) in China. Each hotel has at least 200 rooms and is more than 4

years old. Each is privately owned and one is managed by an international hotel

group. Management was approached through personal contacts, which is useful in doing

research in China (Easterby-Smith and Malina 1999). Surveys were distributed to each

participating hotel. Sealed completed questionnaires were returned first to the hotel’s HR

manager and then to a researcher. For all three hotels, 810 valid responses of frontline

employees (90% response rate) were collected. This high response rate has been observed

X. Li et al.1828

in several Chinese management studies (see Cooke 2009). The dataset included 484

(59.8%) female and 326 (40.2%) male employees, with an average of 25.5 (SD ¼ 7.9)

years of age and an average tenure in the organization of 26.6 months (SD ¼ 37.15). Over

two-thirds of employees (68%) had obtained qualifications from vocational or high

schools and earned higher salaries than their counterparts in other local hotels.2

Each hotel consists of several service departments, such as catering, reception, and

security. Within each department, there are several work units. For example, the catering

department of one hotel includes banqueting, beverage, restaurants, and room service

units. Our dataset comprising the three hotels included 64 units.

Measures

The questionnaire was administered in Mandarin after initially being developed in

English. Two bilingual researchers back-translated the survey independently (Brislin

1980). In addition, a pilot study was conducted on a group of frontline employees; these

were subsequently excluded from the final dataset. The questionnaire was finalized with a

few changes in wording.

For the items of all scales, we used six-point rather than five-point Likert scales. This

was done in order to address Chinese people’s tendency to conceal positive emotions and

hence select midpoints of a range (Lee, Jones, Mineyama and Zhang 2002). Response

items ranged from 1 ¼ strongly disagree to 6 ¼ strongly agree.

Work satisfaction (Cammann, Fichman, Jenkins and Klesh 1983) was measured by a

three-item scale (Cronbach’s a ¼ 0.81). Two illustrative items were: ‘All in all, I am

satisfied with my job’ and ‘In general, I like working here’. Vigor (Schaufeli and Bakker

2004) was measured by a five-item scale (Cronbach’s a ¼ 0.74). Example items included

‘At my work, I feel bursting with energy’ and ‘When I get up in the morning, I feel like

going to work’. Intention to quit (Firth, Mellor, Moore and Loquet 2004) was measured by

a three-item scale (Cronbach’s a ¼ 0.84). For example, ‘I often think about quitting my

job’ and ‘I am starting to ask my friends/contacts about other job possibilities’.

High-performance HR practices was measured by a 17-item scale, modified from the

scale specifically developed by Sun et al. (2007) to study Chinese hotel employees. This

covered five HR practices related to training, internal promotion, employee participation,

results-oriented pay, and job security. Items included ‘I have had sufficient job-related

training’ and ‘My job allows me to make decisions on my own’. Each HR practice

demonstrated good reliability (Cronbach’s a ranged from 0.70 to 0.88). Assuming that the

system of HR practices rather than a single practice reflects an organization’s investment

in employees and influences the organization’s performance beyond the sum of such

practices (Rousseau 1995; Delery and Doty 1996; Allen, Shore and Griffeth 2003;

Whicker and Andrews 2004; Guest 2007), a HPWS index was developed along lines

similar to other scholars (Ramsay, Scholarios and Harley 2000; Batt 2002; Beugelsdijk

2008; Doellgast 2008). The sum of the item scores for each of the five HR practices

mentioned earlier was averaged and then an average was calculated across the five

practices (Cronbach’s a ¼ 0.72). Confirmatory factor analysis suggested a good fit with

the data as indicated by the fit statistics (x 2(109) ¼ 424.30; x 2/df ¼ 3.89; p , 0.001;

TLI ¼ 0.92; CFI ¼ 0.94; RMSEA ¼ 0.06).

Following several climate studies (Luria 2008; Sanders et al. 2008), climate strength of

HPWS was calculated as the inverse standard deviation of the HPWS index at the unit level.

Regarding the HRM system, distinctiveness was measured by a shortened five-item

scale developed by Frenkel, Li and Restubog (in press) with good reliability (Cronbach’s

The International Journal of Human Resource Management 1829

a ¼ 0.84). Example items included ‘HR practices here help me to achieve the company’s

goals’ and ‘HR practices here make me feel much more confident in my ability to do my

job well’. Consistency (Sanders et al. 2008) was assessed by within-respondent agreement

in relation to the HPWS index, operationalized as the inverse average deviation for each

HR practice for each respondent (consistency-based approach, Burke, Finkelstein and

Dusig 1999). Consensus (Delmotte, Winne, Gilbert and Sels 2007) was measured by a

modified four-item scale (Cronbach’s a ¼ 0.86), with items such as ‘HR practices are

delivered by mutual agreement between HR management and line management’ and

‘Management unanimously supports HR policies’. Confirmatory factor analysis

demonstrated that a two-factor (distinctiveness and consensus) structure

(x 2(26) ¼ 183.33; x 2/df ¼ 7.05; p , 0.001; TLI ¼ 0.94; CFI ¼ 0.97; RMSEA ¼ 0.08)

fits the data better than a one-factor structure (x 2(27) ¼ 322.63; x 2/df ¼ 11.95;

p , 0.001; TLI ¼ 0.89; CFI ¼ 0.93; RMSEA ¼ 0.11).3 Therefore, although distinctive-

ness and consensus were strongly related (see later), they were analyzed as two variables.

Based on the proposition that employees’ personal and employment characteristics are

likely to influence the three dependent variables, the following characteristics were included

as controls: age, gender, type of labor contract (permanent vs. temporary), educational level

(from junior middle school to master degree and above), and workplace tenure.

Most measures were based on self-report data collected at one point in time. The

analysis may, therefore, be vulnerable to the problem of common method variance (CMV)

(Podsakoff, MacKenzie, Lee and Podsakoff 2003). Spector (2006) suggests that CMV

caused by a single data source (a single rater rather than multi-raters) should be

distinguished from CMV caused by the same measurement techniques (such as item

formats, data collection procedures, key methods). Regarding the data source, as

addressed by many researchers, information on employee perceptions and attitudes is

difficult to measure accurately using methods other than self-reports (Frese and Zapf 1988;

Spector 2006). One way to confirm the accuracy of the self-report measures is to link them

with data from other sources. In Table 1, we attempted to compare the self-report measures

from the survey with information obtained from hotels and an industry report. As shown in

the table, the ranking of turnover rate for the three hotels accords with the intention to quit

ranking. Assuming a positive relationship between employee attitudes and performance

(Boxall and Macky 2009), employee self-reported work satisfaction and vigor match well

with the hotel performance ranking. Thus, it can be concluded that bias introduced by a

single source is likely to be limited.

Regarding CMV attributed to common method (survey), most of the correlations

between independent and dependent variables were significantly related (20.43 #

r # 0.52). This raises the possibility that the observed relationships were inflated. In order

Table 1. A comparison of self-reported measures and industry data.

Means of measured variables Objective figures

Organization Work satisfaction Vigor

Intention to quit

Turnover in 2008 (%)

Rankings of city-level hotel performance (by average revenue per available room)a

1. Hotel A 4.57 4.28 2.73 21 1 2. Hotel B 4.22 3.80 3.08 30 2 3. Hotel C 4.17 3.83 3.42 42 3

Source: aChina Hotel Industry Study report (CHIS 2008).

X. Li et al.1830

to rule out the possibility that CMV is so large that this alters the key results, we conducted

a method-variance–marker-variable analysis proposed by Lindell and Whitney (2001).

The rationale for this is to compare the original correlations between independent and

dependent variables with those after controlling a theoretically irrelevant marker-variable

obtained by the same method. If the correlations stay significant and non-zero, the original

correlations observed cannot reasonably be accounted for by a common method factor. In

our study, individual prevention self-regulatory focus, defined as the extent to which

individuals use prevention strategies to reach their goals (Kark and Van Dijk 2007), was

used as a marker-variable. A partial correlation analysis, as reported in Table 2, shows that

the relationships between independent and dependent variables continue to have

significant and non-zero coefficients. Hence, it can be concluded that the bias originating

from the same method has limited influence on the relationships in this study.

Data analysis

The data consist of employees (n ¼ 810) nested in units (n ¼ 64), which are situated in

three hotels. As the variance in the three employee attitude measures is only slightly related

to the hotel level (intra class correlations (ICC(1)’s) are below 0.05), this level was not

taken into account (LeBreton and Senter 2008). This means that the data can be

conceptualized at two levels: employee (level 1) and unit (level 2). Level 1 refers to

individual employee information in each unit (work satisfaction, vigor, and intention to quit

and independent variables). Level 2 captures the variance between units (climate strength).

Accordingly, it is appropriate to employ hierarchical two-level modeling, which allows

simultaneous analysis of the effects of both within- and between unit-levels (Raudenbush

and Bryk 2002). Parameter estimates and chi-square information based on this analysis is

analogous to beta coefficients and R-square indicators in regression analysis. The deviance

in chi-square of two models can be used to judge whether there is significant model

improvement. The cross-level interactions needed to test the hypotheses H4–H6 were

calculated by the interactions of mean-centered perception of the HRM system features

(level 1) and climate strength (level 2) in order to eliminate nonessential correlations

between the interaction terms and their component variables (Aiken and West 1991).

Results

Table 3 reports the means, standard deviations, and correlations between all variables at

the employee level. As shown in the table, distinctiveness and consensus between line and

HR were positively related to work satisfaction (r ¼ 0.52, p , 0.01 and r ¼ 0.42,

p , 0.01 respectively) and vigor (r ¼ 0.43, p , 0.01 and r ¼ 0.38, p , 0.01,

Table 2. Partial correlations among key variables after controlling for a marker-variable.

Variables 1 2 3 4 5

1. Distinctiveness 2. Consensus 0.63** 3. Work satisfaction 0.48** 0.37** 4. Intention to quit 20.41** 20.31** 20.66** 5. Vigor 0.39** 0.36** 0.43** 20.34*

Note: n ¼ 810; *p , 0.05, **p , 0.01; individual prevention self-regulatory focus measured in the same survey was controlled.

The International Journal of Human Resource Management 1831

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X. Li et al.1832

respectively), and were negatively related to intention to quit (r ¼ 20.43, p , 0.01 and

r ¼ 20.34, p , 0.01, respectively).

Table 4 reports the results of multi-level analyses, testing hypotheses H1–H6. Model 1

shows that several controls – most notably, age, and type of labor contract – had

significant effects. The (chi-square) deviance reported for Model 1 compared this model to

a model with no predictors. The significant chi-square decrease indicates that the control

variables significantly improved the model.

Model 2 examines the relationships between the three features of an HRM system and

the dependent variables. As anticipated, we found significant relationships between the

HPWS index and work satisfaction (0.38, p , 0.01), vigor (0.27, p , 0.01), and intention

to quit (20.26, p , 0.05). This means that a one unit increase in the independent variable

– in this case HPWS – is associated with increases in work satisfaction, vigor, and

intention to quit of the order of 0.38, 0.27, and 20.26 of a unit, respectively. For work

satisfaction, distinctiveness showed a significant effect (0.45, p , 0.01). Consistency and

consensus did not have significant influences on work satisfaction. Thus, the results

partially confirm H1.

For vigor, distinctiveness had a significant effect (0.27, p , 0.01). Consistency and

consensus did not have significant influences. The results indicate partial support for H2.

For intention to quit, distinctiveness showed a negative effect (20.50, p , 0.01) and

consistency showed a positive effect (0.28, p , 0.05), while consensus had no significant

influence. Thus, H3 was also partially supported.

Considering the three dependent variables together, the predicted relationships

between HRM system features and employee attitudes (H1–H3) were partially confirmed.

Distinctiveness in particular, demonstrated a strong influence on all three dependent

variables.

In Model 3, we explored the mediating effect of HPWS climate strength. Sanders et al.

(2008) hypothesized a positive relationship between climate strength and affective

commitment, and in line with Bowen and Ostroff (2004), a mediating effect for climate

strength. In an exploratory analysis, we tested the mediating effect of climate strength on

the three dependent variables in Model 3. This occurs when climate strength has

significant effects on the dependent variables and when the significant relationships that

exist between the HRM features and the dependant variables (shown in Model 2)

disappear (Baron and Kenny 1986). The results indicate that there was no significant effect

of climate strength on the three employee attitudes’ variables, nor do the results of the

HRM system features differ compared to Model 2.

In Model 4, we examined the moderating effects of HPWS climate strength on the

relationships between the HRM system features and the dependent variables. As illustrated

in Model 4, the interaction of climate strength and consensus had significant effects on

work satisfaction and intention to quit. For work satisfaction, the positive relationship

between the interaction and work satisfaction indicates that when climate strength was

higher, the effects of consensus on work satisfaction were stronger. This is depicted in

Figure 2, partially confirming H4.

For vigor, none of interaction effects were found to be significant, thus disconfirming

H5. Intention to quit had a significant and negative relationship between interaction of

climate strength and consensus. As illustrated in Figure 3, this suggests that when climate

strength was higher, the effect of consensus on intention to quit was stronger. This partially

supports H6.

Together, Model 4 shows that H4–H6, which predict the moderating effects of climate

strength on relationships between HRM system features and employee work attitudes,

The International Journal of Human Resource Management 1833

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X. Li et al.1834

were partially confirmed. The interaction of climate strength and consensus in particular

showed a strong influence on work satisfaction and intention to quit.

In sum, based on a study of employees in three five-star hotels in China, our research

confirms that employee perceptions of the distinctiveness, consistency, and consensus

associated with so-called high-performance HR practices significantly contribute to

employees’ work satisfaction and vigor, and reduce their intention to quit. Controlling for

specific HR practices, these features are in some respects significantly associated with our

three measures of employee work attitudes. Specifically, when employees see HR

practices as more distinctive, they are more satisfied, more enthusiastic about their work,

and less inclined to quit. However, consensus shows no significant effects on the three

variables. In contrast to part of H3, consistency has a positive relationship with intention to

quit. This means that when employees perceive HR practices as more internally consistent,

they are more likely to quit. We address this apparently surprising finding below.

Low Consensus High Consensus

W or

k Sa

ti sf

ac ti

on

Low Climate Strength

High Climate Strength

Figure 2. Effects of interaction between climate strength and consensus on work satisfaction.

Low Consensus High Consensus

In te

nt io

n to

Q ui

t

Low Climate Strength

High Climate Strength

Figure 3. Effects of interaction between climate strength and consensus on intention to quit.

The International Journal of Human Resource Management 1835

The results also showed that shared perceptions of HR practices (HPWS climate

strength) within a unit have a moderating effect on the relationships between perceptions

of HRM system features and measures of employee work attitudes. Two cross-level

interaction effects were found significant in this study: (1) HPWS climate strength

moderates the relationship between consensus and work satisfaction, and (2) HPWS

climate strength moderates the relationship between consensus and intention to quit. Both

interactions suggest that the relationship between consensus and employee outcomes is

stronger when HPWS climate strength is higher.

Discussion and conclusion

In contrast to the HPWS literature that focuses on HR practices, in this study we followed

Bowen and Ostroff (2004) in examining HRM processes, specifically the strength of an

HR system (its distinctiveness, consistency, and consensus) and its contribution to

organizational climate (employees’ shared perceptions of the HR system). Comparing the

detailed results of our study with those of Sanders et al. (2008), we found both similarities

and differences. One similarity is that the HRM system features have main effects on

employee work attitudes. In particular, distinctiveness has a strong influence on the three

measures of employee attitudes. This suggests that where HRM practices were perceived

as distinctive, visible, relevant, and legitimate, their effects on employee work attitudes

will be positive regardless of national culture. Both studies failed to find an interaction

effect between HPWS climate strength and distinctiveness (one of three HR system

features) on the three employee attitudes.

Regarding differences, the effects of consistency on employee attitudes varied in the

two studies. In Sanders et al. (2008), a positive relationship was found between

consistency and affective commitment for Dutch hospital employees, which would seem

to imply a negative relationship with intention to quit. However, as noted earlier, we found

a positive relationship between HRM consistency and intention to quit for Chinese hotel

employees. One possible explanation is that Chinese people value ‘rule-of-man’ rather

than ‘rule-of-law’ as a governance system (Jacobs, Gao and Herbig 1995). In other words,

they perceive social relationships to be more important than formal rules in management

decision making. The notion of ‘rule-of-man’ presumes that key decision makers are wise

and will not abuse their power and so those in higher positions are granted authority to

make decisions, which are seldom questioned. Regarding HR practices, this implies

variability and perceived inconsistency in relationships between managers and

subordinates, particularly when managers use quality of social relationships rather than

objective criteria to make important decisions regarding performance evaluation, pay, and

promotion. This might explain why, contrary to expectation, there is no relationship

between consistency in HR policies and intention to quit. Moreover, according to Jacobs

and colleagues (1995), compared to Europeans, ‘the Chinese hold a negative attitude

towards civil law . . . [Because] there was no civil law to protect their interests’ (pp. 31).

Treating HR policies and regulations as analogous to ‘laws’, employees may see such

regulations as distinctly unsupportive substitutes for personal relationships. This might

explain why there is a positive relationship between consistency – in HR policies and

procedures – and intention to quit.

This consideration invites an interpretation of a further difference in the two studies. In

contrast to the findings of Sanders et al. (2008), and as noted above, consensus was found

to have a significant interaction effect in our study. It is likely that a strong positive norm

reinforces existing relationships thereby explaining the interaction between HPWS

X. Li et al.1836

climate strength and consensus on employee work satisfaction and intention to quit;

however, the norm may not be sufficiently strong to impact work vigor because

enthusiasm for work is probably related to individual opportunities, contributions, and

accompanying rewards rather than more general HR policies and practices (Johns 2006).

Another possible explanation relates to cultural differences. Consensus tends to be

valued differently in the two cultures. With respect to Hofstede’s (1980, 1994) dimension

of collectivism, many cross-cultural studies have demonstrated (Triandis, Bontempo,

Villareal, Asai and Lucca 1988; Verbury, Drenth, Koopman, Muijen and Wang 1999;

Vliert, Shi, Sanders, Wang and Huang 2004) that Chinese people are more inclined than

their Dutch counterparts to act as members of groups rather as individuals. This suggests

that consensus may be more valued in China than in the Netherlands. Therefore, the

significant impact of the interaction of climate strength and consensus on work satisfaction

and intention to quit in our study can be interpreted as reflecting the importance placed on

workplace harmony, i.e. a consensus between employees (climate strength) and between

managers (consensus) in maintaining a stable, satisfied workforce. This contrasts with the

Netherlands, where, as shown by Sanders et al.’s study, there is no significant relationship

between interaction of these variables and affective commitment. These differences in

results suggest that future research would benefit by including cultural variables in studies

examining employee responses to HRM system features (Aumann and Ostroff 2006).

Finally, it is possible that this variation in the interaction effect of HPWS climate

strength on consensus in relation to employee attitudes in the two studies may reflect

measurement differences. As noted earlier, we used employee perceptions rather than

manager reports to measure this variable. We argued that in contrast to the findings of

Sanders et al., this is a more accurate measure, which yields results in accordance with our

hypotheses (H3 and H6). Future research will need to address this measurement issue more

carefully, an observation that leads us to consider additional implications of our study.

Limitations and implications for research and management practice

Our study has four main limitations that suggest ways in which future research might be

pursued. First, although potential problems were addressed earlier, the cross-sectional

design and reliance on single informants may nevertheless limit our confidence in

explaining the relationships between HRM system features and employee attitudes, and in

making cause–effect inferences. Future research would benefit by pursuing multi-source,

longitudinal studies. A second limitation is that we evaluated the effects of high-

performance HR practices and shared perceptions of employees only in relation to three

measures of employee attitudes. These could be extended to include additional variables

such as creativity and proactivity. Third, our model is relatively simple. Further

elaboration requires incorporation of additional moderator variables (e.g. task

interdependence) and clear specification of the mechanisms linking antecedent and

moderator variables to employee attitudes (Grant and Parker 2009). Social identity

and social exchange theory could prove useful in future model building, which ultimately

needs to include behavioral and attitudinal variables. Fourth and finally, our study was

restricted to a single industry. In order to generalize, it would be desirable for future

studies to include additional service industries.

Regarding implications for management practice, our results suggest that managers

should make their HR systems (sets of practices) attractive to employees and communicate

this clearly and frequently so that employees appreciate their value (Burton, Lauridsen and

Obel 2004; Ngo, Lau and Foley 2008). This is similar to internal employer branding

The International Journal of Human Resource Management 1837

(Edwards 2010). It implies that employees should be consulted regularly about the

distinctiveness and advantages of the organization’s HR practices. Problems associated

with such practices should be rectified immediately so that employee perceptions remain

strongly positive. This might be costly and so the potential benefits in terms of worker

satisfaction, work vigor, reduced labor turnover, and probably performance needs to be

weighed against these costs. Accordingly, managers may choose to be selective,

concentrating HR policy and practices on those aspects deemed to be most significant by

employees. Alternatively, they may wish to restrict their attention to those employees who

add the most value to the organization. However, this approach risks the possibility of

adverse reaction by other employees who perceive inequitable treatment.

HPWS climate strength is important in relation to the influence of intra-management

consensus on work satisfaction and intention to quit. This implies that it is important for

senior line management, their subordinates, and HR managers to display unity in

articulating and implementing HR policy. This unity confers legitimacy on policy and it

suggests effective implementation, with all managers knowing, articulating, and

implementing the policy in a consistent fashion. This avoids employees perceiving that

the policy is being applied selectively or inequitably causing confusion and dissatisfaction.

It is not enough that managers act in a united manner, rather than as suggested earlier, this

has to be complemented by communication so that HR policies and practices are noticed

and appreciated by employees.

Acknowledgements

Thanks to Xiongwen Lu and Min Li for facilitating data collection and Paul Edwards for comments on an earlier draft. Prof. Karin Sanders worked on this paper during a visit as Professorial Fellow at the School of Organization and Management, Australian School of Business, UNSW, Sydney, Australia.

Notes

1. Intention to quit is important for hotel employers because the turnover rates in the hotel industry average over 40% in several countries (Cheng and Brown 1998; Boella, Goss-Turner and Eade 2005). Five-star hotels do their best to limit turnover as they depend on providing consistently high-quality service.

2. Interviews with HR managers and employees at the three hotels suggested that employees’ salaries were higher than at other local hotels. Based on official statistics (NBSC 2008), we found that average salaries at each of the hotels were slightly lower than the local, all industry average pay rates as follows: RMB 1000 vs. 1030 (Dongguan), 2400 vs. 2892 (Shanghai), and 2100 vs. 2254 (Ningbo). However, the local all-industry average statistics overstate the salary rates for service workers because they include managers.

3. Consistency is an ipsative measure, derived from the average deviation of several items. Consequently, it is not included in the confirmatory factor analysis.

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Papers related to hotel employee perceptions/Paper 187.pdf

THE RELATIONSHIP BETWEEN

LINE MANAGER BEHAVIOR,

PERCEIVED HRM PRACTICES, AND

INDIVIDUAL PERFORMANCE:

EXAMINING THE MEDIATING

ROLE OF ENGAGEMENT

K E R S T I N A L F E S , C AT H E R I N E T R U S S , E M M A C . S O A N E , C H R I S R E E S , A N D M A R K G AT E N B Y

This article examines the role played by line managers in the link between

HRM practices and individual performance outcomes. Drawing on social ex-

change theory, the authors test a mediated model linking perceived line man-

ager behavior and perceived human resource management practices with

employee engagement and individual performance. The study focuses on

two self-report measures of individual performance; task performance and

innovative work behavior. Two studies with a total of 1,796 participants were

conducted in service-sector organizations in the United Kingdom and ana-

lyzed using structural equation modeling. The data reveal that perceived line

manager behavior and perceived HRM practices are linked with employee

engagement. In turn, employee engagement is strongly linked to individual

performance and fully mediates the link between both perceived HRM prac-

tices and perceived line manager behavior and self-report task performance

(study 1), as well as self-report innovative work behavior (study 2). The fi nd-

ings show the signifi cance of the line manager in the HRM-performance

link, and the mediating role played by employee engagement. © 2013 Wiley

Periodicals, Inc.

Keywords: perceived HRM practices, perceived line manager behavior, employee engagement, self-report task performance, self-report innova- tive work behavior

Correspondence to: Kerstin Alfes, Department of Human Resource Studies, Tilburg University, Warandelaan 2,

5037 AB Tilburg, The Netherlands, Phone: + 31 13 466 2499, E-mail: k.alfes@uvt.nl.

Human Resource Management, November–December 2013, Vol. 52, No. 6. Pp. 839–859

© 2013 Wiley Periodicals, Inc.

Published online in Wiley Online Library (wileyonlinelibrary.com).

DOI:10.1002/hrm.21512

840 HUMAN RESOURCE MANAGEMENT, NOVEMBER–DECEMBER 2013

Human Resource Management DOI: 10.1002/hrm

There is a case to be

made for focusing

on attitudinal or

behavioral outcomes

at the individual

level, where the

link between

experiences of HRM

practices and a

range of outcomes

is more proximal,

and which may be

considered to be

an intermediary

outcome and core

driver of overall

organizational

performance.

Introduction

A growing body of research has per- suasively argued that there is now evidence of a causal link between certain HRM practices and firm- level outcomes, such as financial

performance and organizational effectiveness (Batt, 2002; Datta, Guthrie, & Wright, 2005; Sun, Aryee, & Law, 2007; Wright, Gardner, Moynihan, & Allen, 2005). Efforts to unlock the “black box” between HRM interventions and performance outcomes have led to a number of studies that explore the mediating role played by either employee attitudes such as job satisfaction and commitment, behav-

iors such as task performance and organizational citizenship behav- ior (OCB), or experienced organi- zational practices such as perceived organizational support, organiza- tional justice, or job design (Kuvaas, 2008; Snape & Redman, 2010; Sun et al., 2007). Most re- cent studies situate their analyses within the framework of social exchange theory, arguing that or- ganizational HRM practices send overt and implicit signals to em- ployees about the extent to which they are valued and trusted, giving rise to feelings of obligation on the part of employees, who then recip- rocate through high levels of per- formance (Allen, Shore, & Griffeth, 2003; Gould-Williams, 2007; Purcell & Hutchinson, 2007).

Although substantial progress has been made, there are several areas where research evidence remains limited. First, although it has been argued that the role of line managers as agents in imple- menting HRM practices is fun- damental to understanding how employees interpret and respond to their employer’s HRM system (Holt Larsen & Brewster, 2003), studies that examine the line manager role alongside HRM pol- icy and practice remain rare (Den

Hartog, Boselie, & Paauwe, 2004; Tekleab & Taylor, 2003).

Second, few studies have used mea- sures of perceived HRM practices from the employee perspective, yet it has been shown that intended, implemented, and perceived HRM practices differ substantially (Conway & Monks, 2008; Gratton & Truss, 2003; Snape & Redman, 2010).

Third, most studies have focused on a relatively restricted range of potential media- tors, such as affective commitment or OCB (Allen et al., 2003; Snape & Redman, 2010). The HRM-performance literature has there- fore overlooked developments in other, related areas and specifically evidence link- ing levels of employee engagement with individual performance (Christian, Garza, & Slaughter, 2011; Kahn, 1990; Rich, LePine, & Crawford, 2010; Saks, 2006; Truss et al., 2006). The multi-factorial psychological construct of employee engagement, originally defined by Kahn (1990) as the harnessing of individuals’ selves to their role performance on physical, cognitive, and emotional levels, represents an alternative and conceptually promising factor that is increasingly used as a mediator linking a range of workplace phenomena as demon- strated in a recent meta-analysis by Christian et al. (2011).

Fourth, it has been argued that aggregate outcome variables used in the extant litera- ture, such as firm financial performance and organizational effectiveness, are too distal from the micro-level of HRM interventions, and that more proximal outcome indicators at the individual level would provide a bet- ter and more reliable measure (Paauwe, 2004; Purcell & Kinnie, 2007; Wright & Haggerty, 2005). A further consideration is that a focus on purely short-term financial gains may be at the expense of potentially desirable longer-term outcomes, such as sustainabil- ity and resilience at the organizational level, and well-being at the individual level (e.g., Boxall & Purcell, 2008; Guest, 2002; Ramsay, Scholarios, & Harley, 2000). There is a case to be made for focusing on attitudinal or behavioral outcomes at the individual level, where the link between experiences of HRM practices and a range of outcomes is more

LINE MANAGERS, HRM PRACTICES, AND THEIR RELATIONSHIP WITH ENGAGEMENT AND INDIVIDUAL PERFORMANCE 841

Human Resource Management DOI: 10.1002/hrm

proximal, and which may be considered to be an intermediary outcome and core driver of overall organizational performance (Wright & Haggerty, 2005). However, very few stud- ies have focused on behavioral outcomes at all (Ostroff & Bowen, 2000; Snape & Redman, 2010; Takeuchi, 2009), or examined the link between employee experiences of HRM and behavioral outcomes such as individual per- formance, aside from intent to quit (Allen, 2006; Conway & Monks, 2009).

To address these various limitations in the existing literature, we examine the rela- tionship between perceived line manager behavior, perceived HRM practices, and the individual-level outcomes of self-report task performance and self-report innovative work behavior, exploring the role of employee engagement as a mediating construct. Using a social exchange framework, we argue that employee experiences of HRM practices inter- act with perceived line manager behavior to impact on levels of employee engagement and individual performance (Figure 1). We test our model through structural equation modeling on questionnaire data obtained from two studies involving service-sector organizations in the United Kingdom.

Perceived HRM, Perceived Line Manager Behavior, and Employee Engagement Previous researchers have argued that com- plementary sets of HRM practices, rather than

individual HRM practices, can lead to higher levels of organizational performance (Combs, Yongmei, Hall, & Ketchen, 2006; Takeuchi, 2009). These bundles of HRM practices, com- monly referred to as high-performance HRM practices, are built on the notion that indi- vidual experiences of clusters of HRM prac- tices shape employees’ beliefs about the na- ture of the exchange relationship they enter into with their organization (Rousseau & Greller, 1994). Hence, in order to assess the impact of HRM, the entire system of HRM practices rather than individual practices should be taken into account (Wright & Boswell, 2002). A consensus is emerging that high-performance HRM practices are broadly focused around three areas (Conway, 2004; Wright & Boswell, 2002): (1) employee skills, including selective recruitment; (2) motiva- tion, including such practices as performance- based rewards; and (3) empowerment, includ- ing participation mechanisms (Snape & Redman, 2010). Most commentators argue that these act synergistically. Snape and Redman (2010, p. 4) define such an HRM sys- tem as consisting of “interconnected HR ac- tivities, designed to ensure that employees have a broad range of superior skills and abili- ties, which are utilized to achieve the organi- zation’s goals.” In the present study, we there- fore aim to assess how employees’ overall positive perceptions of high-performance HRM practices will be related to their behav- ior such as task performance and innovative work behavior.

FIGURE 1. Model Linking Perceived Line Manager Behavior and

Perceived HRM Practices to Individual Performance

Perceived

HRM

Practices

Employee

Engagement

• Self-report Task

Performance

• Self-report

Innovative Work

Behavior

Perceived

Line Manager

Behavior

842 HUMAN RESOURCE MANAGEMENT, NOVEMBER–DECEMBER 2013

Human Resource Management DOI: 10.1002/hrm

Although most researchers have argued that certain HRM approaches can drive up organizational performance (Batt, 2002; Datta et al., 2005; Huselid, 1995; Som, 2008), oth- ers have been more circumspect (Den Hartog et al., 2004; Gooderham, Parry, & Ringdal, 2008; Guest, Michie, Conway, & Sheehan, 2003; Truss, 2001). While large-scale surveys of senior HRM practitioners have helped to develop a broad understanding of relevant HRM factors, a focus on HRM as intended by the employer may not capture employees’ lived experiences of HRM, which arguably are more relevant in the HRM-performance chain (Wright & Boswell, 2002; Wright & Haggerty, 2005). Studies have in fact found that the links between intended, imple- mented, and perceived HRM strategies are poor, due to variability in implementation and diverse individual-level cognitive sche- mas (Edgar & Geare, 2005; Khilji & Wang, 2006; Kuvaas, 2008; Wright & Haggerty, 2005). However, research that focuses on the perceived HRM-performance linkage is rare. As Nishii, Lepak, and Schneider (2008, p. 504) argue: “[E]mpirical research that begins to explore the role of employees’ perceptions of HRM practices in the causal chain is sorely needed.” We respond to this call by focusing our attention on employee experiences of HRM practices, rather than simply intended HRM strategies. In doing so, we build upon two earlier studies. First, in an investigation involving 215 salespeople in a department store and 197 insurance agents, Allen et al. (2003) showed that perceptions of support- ive HRM practices—such as participation, reward fairness, and growth opportunities— contributed to the development of perceived organizational support, which mediated their relationship with job satisfaction and organizational commitment and showed a negative relationship with turnover. Second, Conway and Monks (2009) studied 288 employees in three Irish financial services firms and found that attitudes toward HRM practices had a greater impact on affective than on other forms of commitment, regard- less of context, and also established links between perceived HRM practices, intent to quit, and job satisfaction.

While early studies tended to propose a direct link between HRM and organizational performance, recent evidence suggests that the relationship is most likely mediated by a range of attitudinal and behavioral vari- ables at the individual level, particularly job satisfaction, affective and continuance com- mitment, task performance, and OCB (Den Hartog et al., 2004; Guest, Conway, & Dewe, 2004; Kinnie, Hutchinson, Purcell, Rayton, & Swart, 2005; Kuvaas, 2008; Snape & Redman, 2010; Takeuchi, 2009).

Studies of mediation often draw on social exchange theory to provide an explanatory framework. Social exchange theory is based on norms of reciprocity within social relationships (Blau, 1964; Emerson, 1976). It is argued that employees are motivated within the employ- ment relationship to demonstrate positive attitudes and behaviors when they perceive that their employer values them and their contribution (Cropanzano, Rupp, & Byrne, 2003; Kuvaas & Dysvik, 2010; Wayne, Shore, & Liden, 1997). Certain HRM practices may be viewed as signaling an intent for long-term investment in employees that obliges them to reciprocate with discretionary role behavior and contributions (Gong, Chang, & Cheung, 2010; Shaw, Dineen, Fang, & Vellella, 2009; Sun et al., 2007). As Hannah and Iverson (2002, p. 339) note: “HRM practices are viewed by employees as a ‘personalized’ commitment to them by the organization which is then recip- rocated back to the organization by employees through positive attitudes and behavior.”

Although social exchange theory has proven a useful lens through which to view the relationship between HRM practices and organizational performance, evidence con- cerning the mediating effects of the proposed range of attitudes and behaviors has so far proved contradictory. For example, while Sun et al. (2007) showed that OCB partially mediates the relationship between high-per- formance HRM practices and organizational performance, Kuvaas (2008) found no evi- dence of the mediating effects of affective commitment in the link between develop- mental HRM practices and individual per- formance, and Snape and Redman’s (2010) findings on mediation were inconclusive.

LINE MANAGERS, HRM PRACTICES, AND THEIR RELATIONSHIP WITH ENGAGEMENT AND INDIVIDUAL PERFORMANCE 843

Human Resource Management DOI: 10.1002/hrm

There is therefore no consistent evidence as to which mediators are most relevant, nor how they operate within mediated models. For example, it could be argued that the pro- posed attitudinal mediators of job satisfac- tion and commitment have no immediate relevance to individual performance (Judge, Bono, Thoresen, & Patton, 2001), as borne out by Conway and Monks’s (2009) study. OCB clearly is relevant for individual performance, but the focus is on extra-role rather than within-role performance, and a case could be made that employees’ task performance is equally important. There would therefore appear to be scope to search for an alterna- tive, and possibly more relevant, mediator. In order to address this point, we introduce the concept of employee engagement as a poten- tially significant mediating variable.

The construct of employee engagement was first proposed by Kahn (1990) to signify the expression of self in-role, involving physi- cal, cognitive, and emotional dimensions, and has since been the focus of extensive the- oretical and empirical research (Alfes, Truss, Soane, Rees, & Gatenby, 2010; Christian et al., 2011; Macey & Schneider, 2008; May, Gilson, & Harter, 2004; Rich et al., 2010; Rothbard, 2001; Truss et al., 2006). Engagement is con- ceived as a multi-factorial behavioral, atti- tudinal, and affective individual differences variable (Macey & Schneider, 2008; May et al., 2004; Rich et al., 2010). Researchers have argued that engagement differs from other attitudinal and behavioral constructs, includ- ing those most commonly used as mediators in many HRM practice studies: commitment, job satisfaction, and OCB. Engagement is seen as more than job satisfaction, since it implies activation and not merely satiation (Macey & Schneider, 2008). Equally, it differs from commitment, which is merely attitudi- nal, in that engagement additionally implies attentiveness to work and absorption in its performance (Saks, 2006). Engagement has some associations with discretionary effort and OCB (Campbell & Pritchard, 1976), but additionally refers purely to someone’s state of mind in, and behavior in relation to, the performance of their formal work role, while OCB is concerned with extra-role activities

(Bateman & Organ, 1983; Griffin, Parker, & Neal, 2008; Macey & Schneider, 2008).

There have been no prior studies examin- ing whether there is a link between HRM, or perceived HRM, and engagement. However, it would be reasonable to extrapolate, from the studies referred to earlier that have established a link between perceived HRM practices and a variety of other attitudinal or behavioral con- structs, that perceived HRM practices may be linked with employee engagement. This gives rise to our first hypothesis:

Hypothesis 1: Perceived HRM practices are posi- tively related to employee engagement.

Prior research has also acknowledged that line managers have a significant role to play in the HRM-performance chain (Bredin & Söderlund, 2007; Den Hartog et al., 2004; Kuvaas & Dysvik, 2010; Purcell & Hutchinson, 2007). They signal to employees the value placed upon them by the employer, both in terms of the way they implement HRM practices and through their leadership style (Den Hartog et al., 2004; McGovern, Gratton, Hope Hailey, Stiles, & Truss, 1997; Snape & Redman, 2010). As Purcell and Hutchinson (2007, p. 6) note, line manager behavior “has to be included in any causal chain seeking to explain and measure the relationship between HRM and organizational performance.”

In a multinational study, Holt Larsen and Brewster (2003) showed that line man- agers are taking on increasing responsibil- ity for HRM implementation. There have been a small number of previous studies on the role of line managers in implementing HRM. For example, in an exploratory study involving structured interviews in 12 orga- nizations, Purcell and Hutchinson (2007) found a symbiotic relationship for employees between HRM and front-line manager behav- ior. Kuvaas and Dysvik (2010), in a study of 331 employees in a Norwegian telecoms com- pany, similarly found that perceived invest- ment in employee development only led to increased work effort, work quality, and OCB when associated with high levels of perceived supervisor support. Equally, Kuvaas (2008) showed that employees can only respond

844 HUMAN RESOURCE MANAGEMENT, NOVEMBER–DECEMBER 2013

Human Resource Management DOI: 10.1002/hrm

positively to developmental HRM initia- tives when there is a high-quality employee- organization relationship in place.

While some prior studies have therefore suggested that perceived line manager behav- ior interacts with HRM practices in their impact on individual-level outcomes, a separate body of research has similarly shown that perceived line manager behavior can act as an anteced- ent to engagement (Bates, 2004; De Mello e Souza Wildermuth & Pauken, 2008; Frank, Finnegan, & Taylor, 2004). Line managers can foster trust relationships between them- selves and their direct reports, for example, through encouraging open communication, sharing critical information, and providing support (Settoon, Bennett, & Liden, 1996). This, in turn, will lead to positive emotional states and higher levels of employee engage- ment (Avolio, Gardner, Walumbwa, Luthans, & May, 2004). For instance, Robinson, Perryman, and Hayday (2004) showed how increased opportunities for upward feed- back led to higher levels of engagement, and Blizzard (2003) demonstrated that effective interpersonal relationships between employ- ees and managers raised engagement levels. This gives rise to our second hypothesis:

Hypothesis 2: Perceived line manager behavior is positively related to employee engagement.

Studies of engagement, like those of high- performance HRM practices, draw on social exchange theory to suggest that employees will become engaged with their work when antecedents are in place that signal to them that they are valued and trusted (Rich et al., 2010; Saks, 2006). Although no research has examined the link between HRM practices and engagement, empirical studies have demonstrated a link between high levels of engagement and the same outcomes as the high-performance HRM practices literature. Engaged employees invest themselves fully in their roles (Rothbard, 2001), which may lead to the enactment of active in-role per- formances (Ho, Wong, & Lee, 2011; Macey & Schneider, 2008). Engaged employees may achieve higher performance because they focus their efforts on work-related goals, are

cognitively vigilant, and are emotionally and socially connected to their work (Kahn, 1990). Since engaged employees feel more spirited, they can accomplish their in-role tasks with less effort (Hockey, 2000), and additionally invest time and resources in seeking new ways of delivering their work or changing and improving their environment (Ramamoorthy, Flood, Slattery, & Sardessai, 2005).

These findings have been supported by further recent studies. In a study of 245 fire- fighters, Rich et al. (2010) found that engage- ment mediated the relationship between value congruence, perceived organizational support, core self-evaluations, task perfor- mance, and OCB, while Sonnentag (2003) demonstrated that engagement leads to pro- active behavior, initiative taking, and the pursuit of learning goals. These findings are consistent with Christian et al.’s (2011) meta- analysis, which found support for a mediat- ing effect of engagement on the relationship between job characteristics, leadership, per- sonal traits, task performance, and OCB. This leads to our final set of hypotheses:

Hypothesis 3a: Employee engagement is positively related to task performance and mediates the re- lationship between perceived HRM practices and task performance.

Hypothesis 3b: Employee engagement is positively related to innovative work behavior and mediates the relationship between perceived HRM practices and innovative work behavior.

Hypothesis 4a: Employee engagement is positively related to task performance and mediates the rela- tionship between perceived line manager behavior and task performance.

Hypothesis 4b: Employee engagement is positively related to innovative work behavior and mediates the relationship between perceived line manager behavior and innovative work behavior.

Methods

Overview of the Research Process

We employed a cross-sectional research design in two case study organizations operating in

LINE MANAGERS, HRM PRACTICES, AND THEIR RELATIONSHIP WITH ENGAGEMENT AND INDIVIDUAL PERFORMANCE 845

Human Resource Management DOI: 10.1002/hrm

We employed a

cross-sectional

research design

in two case study

organizations

operating in the

service sector in the

United Kingdom.

the service sector in the United Kingdom (Bryman & Bell, 2007). This methodology was chosen because we were interested in explor- ing the patterns of associations within organi- zational settings between perceived HRM practices and line manager behavior, and their relationship with engagement and self- report individual performance. We used a questionnaire survey of employees in both organizations, which enabled us to gather data on the constructs of interest from a vari- ety of employees in each organization. The cases were chosen as they were fairly similar with regard to the range of different staff em- ployed, their size, and the sector they were operating in. Both online and paper versions of the questionnaire were created and admin- istered by the authors, and sent to a selection of employees with and without Internet ac- cess. In both organizations employees were selected in collaboration with the HR man- ager to ensure that the sample was representa- tive of the whole workforce. Employees were informed about the purpose of the study and its confidentiality, and encouraged to partici- pate in the survey within two weeks. In both organizations, employees were given time to complete the questionnaire during work. While the online responses were stored on a secure server, the paper questionnaires were returned directly to the researchers to ensure confidentiality. For study 1, we analyzed the relationships between perceived line manager behavior, perceived HRM practices, employee engagement, and self-report task perfor- mance. For study 2, we examined those rela- tionships with self-report innovative work behavior as a dependent variable.

Samples

Organization A is a support services partner in the United Kingdom providing business solutions for clients across the local govern- ment, transport, education, and defense sec- tors. A total of 2,500 employees from differ- ent locations were asked to take part in the survey. From this sample, 1,157 question- naires were returned. Listwise deletion of missing data led to a usable sample of 924 respondents, a response rate of 37 percent.

The sample comprised 72.5 percent men; the average age was 40.79 years (SD = 12.15); and the average tenure was 4.04 years (SD = 4.11). Respondents were from different levels in their organization and represented a range of occupational backgrounds, including profes- sionals (51.6 percent); administration (10.7 percent); managers or senior officials (14.9 percent); retail, customer, and personal ser- vices (2.3 percent); skilled trades (5.9 percent); machine operators (8.5 percent); and elemen- tary occupations (6.1 percent).

Organization B is a recycling and waste management company. The sample com- prised 2,217 employees, ensuring an accu- rate representation of workforce population. A total of 1,153 questionnaires were completed. Listwise dele- tion of missing data led to a usable sample of 872 respondents, which resulted in a slightly higher response rate of 39 percent. There were 25.9 percent female respon- dents within this sample. The average age was 41.42 years (SD = 11.56), and the average tenure was 5.92 years (SD = 5.72). Again, the respondents represented dif- ferent levels in the organization and diverse occupational backgrounds including professionals (12.3 per- cent); administration (21.4 percent); managers or senior officials (19.0 percent); retail, customer, and personal ser- vices (5.0 percent); skilled trades (4.3 per- cent); machine operators (33.0 percent); and elementary occupations (5.0 percent).

Measures

Perceived HRM Practices

Perceived HRM practices were measured based upon Gould-Williams and Davies’s (2005) HRM practices scale. This was chosen as it has been found to demonstrate high reli- ability and validity in previous studies of high-performance HRM systems (Gould- Williams, 2003; Gould-Williams & Davies, 2005), but at the same time is of a reasonable length to be included in an employee survey

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Human Resource Management DOI: 10.1002/hrm

including different occupational groups. Specifically, we asked employees to assess six HRM practices identified by the high-perfor- mance HRM practices literature—namely, the selection process, training opportunities, re- wards systems, career management, develop- ment opportunities, and feedback mecha- nisms. A sample item was “I am provided with sufficient opportunities for training and development.” The response scale ranged from 1 (“strongly disagree”) to 5 (“strongly agree”). The alphas were 0.83 for Organization A and 0.85 for Organization B.

Perceived Line Manager Behavior

Perceived line manager behavior was measured using four items derived from Cook and Wall (1980) and Unden (1996). The items asked for employee perceptions of the effectiveness, eq- uity, and integrity of their line manager. A sam- ple item was “I think my line manager is fair in his/her treatment of me.” The response scale ranged from 1 (“strongly disagree”) to 5 (“strongly agree”). The alphas were 0.93 for Organization A and 0.94 for Organization B.

Employee Engagement

We measured engagement using a scale devel- oped by Soane et al. (2012). The scale was chosen because it operationalizes Kahn’s (1990) original conceptualization of engage- ment as the extent to which employees invest themselves fully in their role by establishing meaningful connections to others, and expe- riencing positive cognitive and emotional re- actions to the task. In line with the multidi- mensional nature of engagement, the scale encompasses three subscales of engagement. Intellectual engagement focuses on the extent to which employees are cognitively involved in their work. There were three items (e.g., “I get completely absorbed in my work”). Affective engagement measures the extent to which employees are emotionally involved with, and attached to, their work. There were three items, including “I am happy when I do a good job.” Social engagement was assessed with three items and measures the extent to which employees talk to their colleagues

about how to improve their work. Items in- cluded “I talk to people at work about how to improve the way I do my job.” Response op- tions ranged from 1 (“strongly disagree”) to 5 (“strongly agree”) for all subscales. Because we were interested in an overall measure of en- gagement, the three subscales were aggregated to form an overall measure of engagement, resulting in alpha values of 0.81 for Organization A and 0.86 for Organization B.

Individual Task Performance

A five-item scale from Janssen and Van Yperen (2004) was used to assess individual task per- formance. We slightly altered the wording of the original scale to reflect the fact that em- ployees were asked to self-rate their perfor- mance. A sample item was “I always complete the duties specified in my job description.” The response scale ranged from 1 (“strongly disagree”) to 5 (“strongly agree”). The alpha was 0.81 for Organization A.

Innovative Work Behavior

We measured innovative work behavior with a five-item scale based on Janssen and Van Yperen (2004). Similarly to task performance, we changed the wording of the original items to enable employees to self-rate their innova- tive work behavior. A sample item was “Transforming innovative ideas into useful applications.” The response scale ranged from 1 (“never”) to 5 (“daily”). The alpha was 0.96 for Organization B.

The difficulties in gaining individual- level performance data have been thoroughly discussed in previous literature (Huselid & Day, 1991; Mannheim, Baruch, & Tal, 1997). We took additional steps to limit problems associated with common method variance as described next.

Data Analysis

Because all our variables were collected from a single source only, we had to deal with two concerns prior to proceeding to hypothesis testing: common method variance and dis- criminant validity.

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To examine and control for the influ- ence of common method bias in our study, we performed a series of confirmatory factor analyses (CFA) on both datasets. Following established recommendations (Hair, Black, Babin, Anderson, & Tatham, 2005) we cal- culated five fit indices to determine how the model fitted our data: χ2, goodness of fit index (GFI), comparative fit index (CFI), root mean square error of approximation (RMSEA), and standardized root mean square residual (SRMR). For GFI and CFI, values greater than .9 represent a good model fit, and for SRMR and RMSEA, values less than .07 indicate a good model fit (Hu & Bentler, 1998; Kline, 2005).

We initially performed a CFA on the full measurement model (Anderson & Gerbing, 1988) including all latent variables. Overall, the measurement models exhibited good psy- chometric properties (Organization A: χ2 = 407, df = 129, GFI = .95, SRMR = .04, RMSEA = .05, CFI = .96; Organization B: χ2 = 379, df = 129, GFI = .95, SRMR = .04, RMSEA = .05, CFI = .98) and all standardized regres- sions coefficients in the measurement mod- els were significant at the 0.001 level. To test for common method variance, we then con- ducted Harman’s single-factor test (Podsakoff, MacKenzie, Jeong-Yeon, & Podsakoff, 2003), which involves a CFA where all variables are allowed to load onto one general factor. The model exhibited very poor fit for both organi- zations (Organization A: χ2 = 3,595, df = 135, GFI = .56, SRMR = .15, RMSEA = .17, CFI = .44; Organization B: χ2 = 6,973, df = 135, GFI = .44, SRMR = .21, RMSEA = .24, CFI = .41), which provided a good indication that a sin- gle factor did not account for the majority of variance in our data.

Additionally, we conducted a second test as recommended by Podsakoff et al. (2003), introducing an unmeasured latent methods factor to our original measurement model allowing all items to load on their theoretical constructs, as well as on the latent methods factor. A comparison of both models revealed that including the method factor in the model significantly improved the overall fit of the model (Organization A: Δχ2(df) = 80(12); Organization B: Δχ2 (df)= 40(12)). However,

the χ2 difference test is distributed χ2, and researchers argue that χ2 values are very sen- sitive to large sample sizes and a high num- ber of observed variables, leading to biased results (Bentler, 1990; Bentler & Bonett, 1980; Bollen, 1989; Hair et al., 2005; Hu & Bentler, 1995; Kline, 2005). We therefore assessed the change of CFI values for both models as an indicator of significance as recommended by Byrne (2001). The change of CFI between both models was 0.02 for Organization A and 0.03 for Organization B, which is below the suggested rule of thumb of 0.05 (Bagozzi & Yi, 1990).

To determine whether the constructs in our model were distinct from each other, we performed a test of the scales’ discriminant validity following Fornell and Larcker (1981). We first calculated the average variance extracted for each scale variable. According to Fornell and Larcker (1981), scale variables are sufficiently different from one another if a scale’s average variance extracted is greater than its shared variance with any other scale variable in the model. This condition was met in both datasets, and we concluded that all scales were distinct from one another. The values are portrayed along the diagonals of Tables I and III, together with interscale cor- relations and descriptive statistics for all scale variables in both organizations.

Results—Study 1

Descriptive Statistics

Table I presents the means and standard de- viations for each scale, and interscale correla- tions, for all study variables for Organization A. The interscale correlations show the ex- pected direction of association and are all sig- nificant at the p < .01 level. Specifically, per- ceived HRM practices are positively related to perceived line manager behavior (r = .52). Moreover, employee engagement is positively associated with perceived HRM practices (r = .35), perceived line manager behavior (r = .34), and self-report task performance (r = .32). The relationships between perceived HRM practices (r = .11) and perceived line manager behavior (r = .18) and self-report

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performance are positive and significant, but weaker compared to the relationship between engagement and self-report performance. Gender is positively, but weakly, associated with self-report task performance (r = .11), while age is negatively associated with per- ceived line manager behavior (r = −.09), and management responsibilities is positively as- sociated with engagement (r = .21).

Tests of Hypotheses

We employed latent variable structural equa- tion modeling (Jöreskog & Sörbom, 1993) using maximum likelihood estimation in AMOS 18.0 (Arbuckle, 2006) to evaluate our model. Structural equation modeling simul- taneously estimates the structure within a se- ries of dependent relationships between la- tent variables with multiple indicators, while correcting for measurement errors (Bollen & Long, 1993; Hair et al., 2005). This approach seemed the most appropriate for testing our empirical model. Given that perceptions of HRM practices and line manager behavior are likely to be positively associated, both con- structs were allowed to correlate in the struc- tural model. Overall, the model provided a good fit for our data (χ2 = 414, df = 131, GFI = .95, SRMR = .05, RMSEA = .05, CFI = .96).

As the sample in Organization A consists of a diverse range of employees, we carried out multigroup analyses to test for the reliability

of our proposed model across different gen- ders, age groups, and hierarchical levels. Our results1 showed that although there were dif- ferences with regard to the strength of the association between the groups, we did not find any significant differences with regard to the overall model proposed. We therefore con- cluded that the proposed model was a consis- tent reflection of the relationships between perceived HRM, perceived line manager behavior, employee engagement, and self- report performance within Organization A.

Our hypothesized model implied that engagement mediates the link between the antecedents of engagement and self-report task performance. To analyze whether media- tion according to Baron and Kenny (1986) could be found in our model, we examined whether an alternative model would lead to a significant improvement in the model fit compared to our hypothesized model by test- ing a series of nested models (Anderson & Gerbing, 1988; Mayer & Davis, 1999). Table II presents the fit statistics for three alterna- tive models compared to our hypothesized model. We used the same five fit indices as described earlier and carried out sequential χ2 difference tests to compare all models to our hypothesized model.

In model 2, we added a direct path from perceived HRM practices to self-report task performance to test whether there was a direct association between both variables,

T A B L E I Means, Standard Deviations, and Correlations for Scale Variables—Organization Aa

Mean SD 1 2 3 4 5 6 7

1. Gender .27 .45 n/a

2. Age 40.79 12.15 −.16** n/a

3. Management

Responsibilities .50 .50 −.21** .15** n/a

4. Perceived HRM

Practices 3.05 .69 .04 −.05 .02 .67

5. Perceived Line

Manager Behavior 3.67 .87 .06 −.09** .03 .52** .87

6. Engagement 3.75 .47 .00 0.00 .21** .35** .34** .67

7. Self-Report Task

Performance 4.09 .51 .11** −0.04 .02 .11** .18** .32** .69

an = 924. The values reported on the main diagonal in italics are square roots of the average variance explained. According to Fornell

and Larcker’s (1981) discriminant validity test, this value must be larger than a focal variable’s zero-order correlations in the same row

and column.

**p < .01.

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as suggested in early strategic HRM research (Arthur, 1994; Huselid, 1995; Koch & McGrath, 1996; MacDuffie, 1995). As Table II shows, the model fit was lower; hence, we found no support for this model. For alternative model 3, we added a direct path from perceived line manager behavior to self- report task performance to examine whether perceived line manager behavior had a direct impact upon individual performance, as research indicates that managerial behavior may have a direct influence on performance (De Jong & Den Hartog, 2007). However, the fit statistics in Table II reveal that this additional path did not improve the overall model fit. For model 4 we combined both modifications and added direct paths from perceived HRM practices and perceived line manager behavior to self-report task perfor- mance, respectively. Again results in Table II show that we did not find an improvement in model fit. Hence, data from our nested model comparison suggested that the hypothesized

model fitted the data best and engagement mediated the link between perceived HRM practices, perceived line manager behavior, and self-report task performance. The stan- dardized path coefficients for this model are shown in Figure 2.

Results—Study 2

Descriptive Statistics

Table III shows the descriptive statistics for, and interscale correlations among, all study variables for Organization B. All correlations show the expected direction of association and are significant at the p < .01 level. Perceived HRM practices are positively corre- lated with perceived line manager behavior (r = .53). Furthermore, engagement is positively associated with perceived HRM practices (r = .37) and perceived line manager behavior (r = .36), and all three variables are positively correlated with self-report innovative work

T A B L E I I Structural Equation Model Comparisons—Organization Aa

Models χ2 (df) GFI SRMR RMSEA CFI Comparisons

Hypothesized: Model 1 414 (131)** .951 .045 .048 .964

Alternative Model 2b 411 (130) .952 .045 .048 .964 Model 2 compared to Model 1

Alternative Model 3c 414 (130) .951 .045 .049 .964 Model 3 compared to Model 1

Alternative Model 4d 407 (129) .952 .044 .048 .964 Model 4 compared to Model 1

an = 924. bDirect path from perceived HRM practices to self-report task performance. cDirect path from perceived line manager behavior to self-report task performance. dDirect paths from perceived HRM practices and perceived line manager behavior to self-report task performance.

**p < .01.

FIGURE 2. Standardized Path Estimates: Final Model Organization A

Perceived HRM

Practices

Employee Engagement

.37***

.31***

.25***

.57*** Self-report Task

Performance

Perceived Line Manager

Behavior

***p < 0.001.

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behavior (r between .21 and .39). The data also show a positive association between management responsibilities and our study variables (r between .09 and .26), and between being female and perceived line manager be- havior (r = .13) and engagement (r = .18), while the relationship between being female and self-report innovative work behavior is weak and negative (r = −.11).

Tests of Hypotheses

As for Organization A, we tested our hypoth- eses with structural equation modeling (Jöreskog & Sörbom, 1993) in Amos 18.0 (Arbuckle, 2006). Again we allowed perceived HRM practices and line manager behavior to correlate. The model revealed a very good overall fit (χ2= 385, df = 131, GFI = .95, SRMR = .05, RMSEA = .05, CFI = .98) for our hypothesized model. As for Organization A, we carried out multigroup analyses to test our proposed model across different genders, age groups, and hierarchical levels. As we did not find any significant differences with regard to the model proposed, we concluded that the model was overall an accurate reflection of the relationships between perceived HRM, perceived line manager behavior, employee engagement, and self-report innovative work behavior within Organization B.

Again, we aimed to determine whether an alternative model would better represent our data. We therefore tested and compared the same series of nested structural models as for Organization A using sequential χ2 difference tests. Five fit statistics and the model compar- isons are depicted in Table IV.

For the nested model comparisons we found substantively similar results for Organization B. As Table IV demonstrates, model 2, where we added a direct path from HRM practices to self-report innovative work behavior, fitted the data equally well as our hypothesized model ( Δχ2 (1) = 6.3, p < 0.025). This indicates that HRM practices might have a direct influence on innovative work behav- ior (Collins & Smith, 2006). However, the first model was superior to model 2, as it was more parsimonious. Table IV also demonstrates that the other two alternative models fitted our data less well than the hypothesized model. The stan- dardized path coefficients for the best-fitting model for Organization B are shown in Figure 3.

Discussion

Key Findings and Theoretical Implications

The purpose of this research was to develop and test a more complete model of how

T A B L E I I I Means, Standard Deviations, and Correlations for Scale Variables—Organization Ba

Mean SD 1 2 3 4 5 6 7

1. Gender .26 .44 n/a

2. Age 41.42 11.56 −.24** n/a

3. Management

Responsibilities .38 .49 −.14** .14** n/a

4. Perceived HRM

Practices 2.99 .76 .04 −.03 .11** .70

5. Perceived Line

Manager Behavior 3.53 .96 .13** −.08 .09** .53** .89

6. Engagement 3.63 .59 .18** −.03 .18** .37** .36** .72

7. Self-Report Innova-

tive Work Behavior 2.11 1.10 −.11** −.09 .26** .26** .21** .39** .91

an = 872. The values reported on the main diagonal in italics are square roots of the average variance explained. According to Fornell

and Larcker’s (1981) discriminant validity test, this value must be larger than a focal variable’s zero-order correlations in the same row

and column.

**p < .01.

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perceived line manager behavior, together with employees’ experiences of HRM prac- tices, affect levels of employee engagement and, further, how the relationship between HRM practices, perceived line manager behavior, and individual performance is me- diated through engagement. We thereby re- sponded to calls for studies analyzing the role of line managers in the HRM-performance chain (Guest, 2011; Purcell & Hutchinson, 2007). Data from 1,796 employees in two or- ganizations largely supported our theoretical framework. In both organizations, perceived HRM practices were positively associated with employee engagement (β = .31), lending sup- port to Hypothesis 1. Furthermore, perceived line manager behavior was positively associ- ated with engagement in both organizations (β = .25 and .26), supporting Hypothesis 2. Moreover, perceptions of HRM practices and

line manager behavior were positively corre- lated, supporting the notion of a joint effect on individual levels of engagement (r = .57 and .54). Engagement, in turn, led to higher levels of task performance (β = .37) and in- novative work behavior (β = .45), as measured by self-report questionnaires, and mediated the link between line manager behavior, HRM practices, and individual performance. Hence, Hypotheses 3 and 4 were fully supported. These results have several theoretical implica- tions, which we consider in turn.

First, we show that employees’ experi- ences of perceived line manager behavior are an essential element in the HRM-performance linkage. Viewed through the lens of social exchange theory, our data suggest that line managers have an important role to play, not just in the way they implement and enact HRM policy (Bowen & Ostroff, 2004), but also

T A B L E I V Structural Equation Model Comparisons—Organization Ba

Models χ2 (df) GFI SRMR RMSEA CFI Comparisons

Hypothesized: Model 1 385 (131)** .953 .046 .047 .978

Alternative Model 2b 378 (130) .953 .040 .047 .978 Model 2 compared to Model 1

Alternative Model 3c 384 (130) .953 .044 .047 .978 Model 3 compared to Model 1

Alternative Model 4d 379 (129) .953 .040 .047 .978 Model 4 compared to Model 1

an = 872. bDirect path from perceived HRM practices to self-report innovative work behavior. cDirect path from perceived line manager behavior to self-report innovative work behavior. dDirect paths from perceived HRM practices and perceived line manager behavior to self-report innovative work behavior.

**p < .01.

FIGURE 3. Standardized Path Estimates: Final Model Organization B

Perceived

HRM

Practices

Employee

Engagement

.45***

.31***

.26***

.54*** Self-report

Innovative Work

Behavior

Perceived Line Manager

Behavior

***p < 0.001.

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through their daily behavior toward their staff, which sends signals about the extent of the value placed upon them. Hence, employ- ees’ experiences of HRM occur along at least two dimensions, first their experiences of HRM policies and practices, and second the way they are treated by their line manager. Positive experiences of HRM practices alone appear insufficient to generate high lev- els of engagement and performance; rather, our data suggest that it is the combination of positive perceived line manager behavior and positive experiences of HRM practices together that is associated with an engaged and high-performing workforce. These find- ings support the argument that a systemic approach is needed when examining the HRM-performance linkage, one that focuses on the general working climate experienced by employees, which will inevitably include their perceptions of their line manager as well as HRM policy implementation (Purcell & Hutchinson, 2007).

Our findings also lend support to the small number of other studies that have dem- onstrated a link between positive experiences of HRM practices and individual-level perfor- mance outcomes. Data from our study show that where employees’ experiences of HRM practices are positive, self-report individual performance in terms of task performance and innovative work behavior is enhanced. This can be understood through the lens of social exchange theory, which suggests that where employees feel that their organiza- tion is investing in them through the posi- tive experiences they have of HRM policy and line manager behavior, they are more willing to reciprocate through high levels of engage- ment and performance. A focus on intended HRM strategy alone will not capture the lived experiences of employees and will omit critical dimensions of the exchange relationship. This reflects the findings of other studies that have suggested that it is not the HRM strategies intended by the organization that are most significant in the HRM-performance chain, but rather how employees experience those HRM practices (Gratton & Truss, 2003; Kinnie et al., 2005; Nishii et al., 2008). Consequently, this lends further weight to the argument that

studies of the HRM-performance linkage need to seek the views not just of HRM managers, but also of individual employees (Den Hartog et al., 2004).

Finally, we bring together two hitherto disparate bodies of literature by demon- strating that employee engagement acts as a mediator linking perceived HRM practices and perceived line manager behavior to self- report individual performance. No prior stud- ies have examined the link between HRM, employee engagement, and individual per- formance. Some earlier research has shown that attitudes are an important element in the HRM-performance chain, focusing on other attitudinal constructs such as commit- ment, job satisfaction, and OCB (Allen et al., 2003; Batt, 2002; Sun et al., 2007). Equally, several prior studies have argued that there is a link between perceived line manager behav- ior and engagement (May et al., 2004), and between engagement and individual perfor- mance (Rich et al., 2010). By bringing these lines of argument together, consistent with our predictions, our data suggest that engage- ment acts as an important mediator between HRM and individual performance. Although this is a new finding, it is in line with our predictions based on the engagement litera- ture (Christian et al., 2011; Halbesleben & Wheeler, 2008; Rich et al., 2010), and on the literature linking perceived HRM with attitudinal and behavioral outcomes (Allen et al., 2003; Snape & Redman, 2010). Within a social exchange relationship, employees’ positive perceptions of organizational invest- ments in them, communicated through line manager behavior and perceived HRM prac- tices, give rise to a willingness to engage cog- nitively, affectively, and behaviorally, and to consequent high levels of task performance and innovative work behavior.

Implications for Practitioners

Our data provide further support to the grow- ing interest in the changing relationship be- tween line managers and HRM professionals in the management of employees. The current study shows that line managers play an impor- tant role in creating and maintaining a positive

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Our study

demonstrates that it

is through effective

partnership that

HRM practitioners

and line managers

are able to elicit

positive responses

from their workforce.

environment in which employees are willing to engage and perform. This emphasizes the importance of a symbiotic relationship be- tween HRM professionals and line managers (Purcell & Hutchinson, 2007). Collaboration between both parties will enable the effective implementation of HRM practices, which are positively perceived by employees and encour- age them to reciprocate by enacting desired be- haviors. Our study demonstrates that it is through effective partnership that HRM practi- tioners and line managers are able to elicit posi- tive responses from their workforce.

Our findings have specific implications for HRM professionals. Arguably, the goal of strategic HRM is to evoke positive employee attitudes and improve performance. The cru- cial question for HRM practitioners is how to achieve these objectives. A key challenge is to ensure that HRM policies and practices are enacted in a consistent way by different line managers across the organization. One focus for HRM professionals should be the align- ment of line managers’ performance goals and objectives with desired strategic HRM outcomes, and the assessment of line manag- ers’ performance based on their approach to managing people.

Moreover, our data show that employee perceptions of HRM practices play an impor- tant role in determining individual perfor- mance and, in conjunction with perceived line manager behavior, are associated with higher levels of employee engagement. Creating a highly engaged workforce has become a significant focus for many organi- zations recently (MacLeod & Clarke, 2009; Truss, Soane, Alfes, Rees, & Gatenby, 2010), and our study indicates to HRM profession- als that line managers have to be integrated in any strategies designed to maintain or increase engagement levels.

Limitations

Although our research provides interesting insights into the causal chain linking line manager behavior, HRM practices, employee engagement, and individual performance, the findings should be assessed against the background of the limitations inherent in our

study. First, we collected data in each organi- zation at one point in time, which limits the conclusions that can be made regarding the causal order of our relationships. It might, for example, be possible that employee en- gagement leads to positive perceptions of HRM practices. Second, we relied on individu- als’ self-reports on all variables of our model, which raises concerns about possible com- mon method bias. However, our analysis indi- cated that common method bias was not an issue in either organization and the results ob- tained were stable in two different organiza- tions and generalizable across a number of demographic criteria. Moreover, in terms of the current study, our focus was on employee perceptions of HRM as the first link between HRM practices and outcomes (Wright & Boswell, 2002), and so we would argue that self-report measures might actually be the most valid measurement method for most of our constructs, as individuals are best placed to re- port their own levels of engage- ment, their perceptions of HRM practices, and line manager behav- ior. Hence, the only constructs that could have been measured by multiple data sources are self- report performance and innova- tive work behavior. Although at least two data sources are required to help rule out the validity threats of self-report and single-method bias (Donaldson & Grant-Vallone, 2002), a recent review of performance appraisal research sug- gests that performance ratings by line manag- ers might be equally biased as self-rated performance (Levy & Williams, 2004). Moreover, authors have recently questioned the assumption that common-method variance causes serious problems in organizational re- search (Spector, 2006). Nevertheless, we encour- age future researchers to collect data from mul- tiple sources to investigate our findings further.

Implications for Research

In our study we shed light on the roles line managers and HRM professionals play in

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shaping employees’ attitudes and behaviors at work. We have demonstrated that it is impor- tant to consider how line managers affect em- ployees’ perceptions of HRM practices and poli- cies, which supports the notion of a symbiotic relationship between both parties for the effec- tive management of people. We encourage fu- ture research to further explore the dynamics between HRM professionals and line managers in the enactment of HRM practices and their effect on employee attitudes and behaviors.

An interesting question arising out of our research is whether different occupational groups within one organization share the same perceptions of line management behavior, HRM practices, engagement, and individual performance. Although we found some vari- ability in path coefficients between individuals with and without management responsibili- ties, we did not find a significant difference with regard to the overall model. We encour- age future research to assess whether there are differences in individuals’ perceptions based on their occupational background. Indeed, Kinnie et al. (2005) suggest that the relation- ships depicted in our model may well vary between different groups of employees.

Future research might also analyze whether different leadership styles have a differential impact on employees’ percep- tion of, and attributions to, HRM systems. For example, would an engaging leader- ship style (Chartered Institute of Personnel and Development [CIPD], 2008) lead to a more positive evaluation of the HRM system compared to traditional transactional and transformational leadership styles? We also encourage consideration of how employ- ees’ perceptions of the wider organizational climate, such as perceived organizational support and organizational trust, might be related to perceived HRM practices and line management behavior.

Our study has demonstrated that it is important to consider employee perceptions when evaluating the impact of HRM practices. Future research could assess to what extent line managers’ perceptions of HRM practices influ- ence their employees’ perceptions of HRM practices, using multilevel data from different data sources in the organization. It might be

that line managers who have positive experi- ences of HRM themselves shape their subordi- nates’ perceptions and attitudes toward HRM.

Finally, we encourage researchers to evaluate changes in the effect of line man- ager behavior and HRM practices over time. By adopting longitudinal research designs, researchers will be able to demonstrate causal effects in the HRM-performance chain and assess the impact of any intervention designed to enhance employee attitudes and performance.

Conclusion

Our study has contributed to debates around the HRM-individual performance link through the development and testing of a mediated model incorporating employee en- gagement as the key attitudinal variable, and analyzing the role of line managers in this causal chain. Through structural equation modeling on a sample of 1,796 respondents from two organizations, we tested a number of hypotheses to determine how these factors are interrelated. We found that employees’ perceptions of line manager behavior and HRM practices are positively related to levels of employee engagement, and that engage- ment, in turn, mediated the link with self- report individual performance. These find- ings are consistent with social exchange the- ory, which suggests that organizations able to cultivate a climate of reciprocity will elicit positive attitudinal and behavioral outcomes from employees. We argue that HRM’s impact on performance outcomes is therefore indi- rect rather than direct, and that the focus of HRM efforts should be first on the effective selection, deployment, and performance management of line managers, second on supporting line managers to ensure the fair and consistent enactment of intended HRM practices, and third on developing and imple- menting employee engagement strategies. These factors together will create a virtuous cycle fostering high levels of performance.

Note

1. The full results are available from the fi rst author

upon request.

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KERSTIN ALFES is an assistant professor in the Department of Human Resource Studies

at Tilburg University. Her research interests include employee engagement, strategic hu-

man resource management, overqualifi cation, and the management of change. She has

written on these topics in journals such as Human Resource Management Journal; the

International Journal of Human Resource Management; Gender, Work & Organization;

and International Public Management Journal.

CATHERINE TRUSS is head of Group, People, Management and Organisation at Kent

Business School, University of Kent, UK. She has held research grants valued at over

£900,000 from the Economic and Social Research Council, the Chartered Institute of

Personnel and Development, the National Institute for Health Research, and Industry,

and has written or coauthored over 180 articles, papers, books, and reports. Her research

interests include strategic HRM, employee engagement, and meaningful work. She is

co-editor of Employee Engagement in Theory and Practice, published by Routledge in 2013.

EMMA C. SOANE is a lecturer in the Department of Management at the London School

of Economics. She is the academic director, CEMS MSc International Management; a

chartered occupational psychologist; and a chartered scientist. Her research interests

are centered on individual differences in leadership, personality, decision making, risk,

and engagement with work. She has written a number of journal articles, book chap-

ters, and practitioner articles. She coauthored the book Traders: Risks, Decisions, and

Management in Financial Markets published by Oxford University Press in 2006.

CHRIS REES is a senior lecturer in employment relations in the School of Management

at Royal Holloway, University of London. His current research centers on comparative

corporate governance and trade union responses to corporate social responsibility;

the cross-border transfer of employment practices in multinational corporations; and

European information and consultation regulations. His work has been published in jour-

nals such as Organization Studies, Work Employment and Society, the European Journal

of Industrial Relations, and Human Resource Management Journal.

MARK GATENBY is a lecturer in organizational behavior in the School of Management at

the University of Southampton. His research interests include public service reform, the

role of managers, and critical realism.

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Papers related to hotel employee perceptions/Paper 750.pdf

Contents lists available at ScienceDirect

Tourism Management

journal homepage: www.elsevier.com/locate/tourman

A cross-level investigation of the role of human resources practices: Does brand equity matter?

IpKin Anthony Wonga,b, Shi Xuc, Suk Ha Grace Chand, Mang Hea,∗

a School of Tourism Management Sun Yat-Sen University, Tangzhou Rd. 1, Zhuhai, China b Institute for Research on Portuguese-Speaking Country, City University of Macau, China c School of Hospitality & Tourism Management University of Surrey, UK d Faculty of International Tourism and Management, City University of Macau, Avenida Padre Tomás Pereira (N402), Taipa, China

A R T I C L E I N F O

Keywords: High−performance human resource practices Emotional exhaustion Intention to quit Brand equity Hotel Multilevel modeling

A B S T R A C T

The extant literature has suggested that high-performance human resources practices (HRPs), such as employee training, employment security, and a results-oriented appraisal system, promote favourable employee behaviors. This research predicts that such practices render a mechanism that reduces hotel employees’ propensity to quit through lowering their emotional exhaustion. However, does this mechanism work more effectively in hotels with a strong brand? To address this question, we propose a multilevel research model to assess the effectiveness of HRPs under different conditions of brand equity. Drawing on both social exchange theory and social iden- tification theory, the current study works to advance the literature by investigating the cross-level brand equity boundary condition on the HRPs−intention-to-quit moderated mediation process from two independent sets of data. It advances the literature by bridging the research gap between human resource management and brand management.

1. Introduction

Successful hospitality companies (e.g. Starbucks, Four Seasons Hotels and Kimpton Hotels and Restaurants) take advantage of high- performance human resource practices (HRPs) (e.g., scheduling flex- ibility, extensive training and development, selective hiring, trans- parent performance management policies, etc.) that lead to profitability and staff satisfaction (Hinkin & Tracey, 2010). The body of literature also points to the roles of HRPs in engendering favourable employee behaviors and mitigating negative outcomes (Sun, Aryee, & Law, 2007). Though HRPs are critical conduits for fostering employee motivation and performance, there is still a paucity of empirical research on HRPs in the tourism and hospitality industry (Karatepe & Vatankhah, 2014), especially in the hotel sector, where HRPs are institutionalized based on specific brand standards and value propositions that differentiate one hotel from another (Ivanova & Ivanov, 2015; Sun et al., 2007).

The importance of a brand is often manifested through its brand equity, which renders how people perceive its quality and associate with a given product or organization (Keller, 2003; Nam, Ekinci, & Whyatt, 2011; Prentice & Wong, 2016). However, a hotel's brand equity also encompasses an organizational strategy not only regarding how the hotel is positioned from the consumer perspective, but also how it treats

its employees in reaching its strategic goals. Unfortunately, existing research on brand management with respect to its impact on internal organizational members faces two limitations. First, branding studies are primarily germane to academic inquiry on consumers and hence, their core focus rests merely on how brand affects consumer behaviors (Aaker, 1996; Japutra, Ekinci, & Simkin, 2018; Ou, Verhoef, & Wiesel, 2017). Second, research pertaining to employee brand management largely focuses on how brands influence job applicant organizational images and employment choices (Jian & Collins, 2002; J.; Kim, York, & Lim, 2011; Wehner, Giardini, & Kabst, 2015), without looking into how an organizational brand could alleviate negative employee outcomes such as burnout and propensity to quit.

The objective of this study is to fill the aforementioned research gaps, to answer the question of how HRPs reduce employee turnover intention through the mediating process of emotional exhaustion, and to find out when this process works more effectively. From a broader theoretical perspective, we argue that HRPs render as a mechanism that alleviates employees' negative responses. Such a mechanism is condi- tioned on the research context (i.e., hotel), in that a hotel's brand equity works as a buffer that further helps to strengthen the impact of HRPs and hence, to better remedy negative employee behaviors. To support our contention, we draw upon social exchange theory, social

https://doi.org/10.1016/j.tourman.2019.04.013 Received 25 October 2018; Received in revised form 12 March 2019; Accepted 23 April 2019

∗ Corresponding author. E-mail addresses: wongipk@mail.sysu.edu.cn (I.A. Wong), s.xu@surrey.ac.uk (S. Xu), gracechan@cityu.mo (S.H.G. Chan), Hmang@mail.sysu.edu.cn (M. He).

Tourism Management 75 (2019) 418–426

Available online 26 June 2019 0261-5177/ © 2019 Elsevier Ltd. All rights reserved.

T

identification theory, and the interplay between these two theoretical foundations, to propose a cross-level model for investigating the aforementioned mechanism (see Fig. 1). The key contribution of this article lies in its synthesis between human resource practices and brand equity in understanding employee behaviors. It thus bridges the dis- ciplinary gap between marketing and management research domains by integrating brand management and human resource management (HRM) studies into a symbiotic research inquiry, in order to assess how hotel brand efforts could ultimately benefit internal organizational practices.

2. Theoretical background and hypotheses

2.1. High-performance human resource practices and outcomes

HRPs are holistic practices which can enhance the skills of the staff, encourage employee participation and voice in decision making, and improve motivation to put forth discretionary effort, and which col- lectively affect organizational performance and sustainable competitive advantage (Sun et al., 2007). As highlighted by the internal marketing perspective, employees should be seen as the most trusted resources that are available (Baker & Magnini, 2016). Internal marketing em- phasizes the importance of marketing concepts within the company by focusing on satisfying their employees with HRPs, which brings in sa- tisfied external customers (Joung, Goh, Huffman, Yuan, & Surles, 2015). The ability to identify and measure the results of internal mar- keting management not only indicates the level of success of such ef- forts (e.g., employee job satisfaction), but also informs the company as to whether the first link in the service profit chain (i.e., employees) is strong enough to sustain subsequent links (e.g., customer loyalty and profitability).

Recent literature has demonstrated the positive impact of HRPs across countries and industries in terms of individual- and organiza- tional-level outcomes (e.g., higher job satisfaction and firm perfor- mance). The empirical research on HRPs has bolstered the contention that investment in human resources can benefit long-term sustainable competitive advantage of the firm. For example, Delery and Doty (1996) identified seven key HRPs that positively impact return on average assets and return on equity; such practices include internal recruiting, tightly-defined job descriptions, profit sharing, formal training, job security, results-oriented appraisals, and voice mechan- isms. In an investigation of hospitality companies in the USA, Cho, Woods, Jang, and Erdem (2006) demonstrated that implementing 12 HRPs (e.g., information sharing and internal recruiting) was likely to lead to a lower turnover rate for non-managerial employees. Taking a relational perspective on employment relationship, Sun et al. (2007) found that the relation between HRPs and two key organizational outcomes (i.e., productivity and turnover) was mediated by

organizational citizenship behavior (OCB) in the hotel industry in China. Two key components of HRPs—namely, selection and trai- ning—were found to have a positive effect on employee innovation in Chinese hotels (Chang, Gong, & Shum, 2011). A study of Iranian hotel frontline employees demonstrated that the relation between HRPs and intention to leave was mediated by job embeddedness (Karatepe, 2013b). In a study of human service non-profit organizations, Selden and Sowa (2015) showed that implementing certain HRPs, such as leadership development and compensation, reduced voluntary em- ployee turnover.

We expected that HRPs would negatively impact turnover from the perspective of social exchange theory, especially considering the norm of reciprocity (Gouldner, 1960). According to this theory, when em- ployees' efforts are acknowledged by their employer offering benefits and progression opportunities, they will feel obligated to contribute to the success of their organization (Guchait & Cho, 2010). Therefore, it is important to realize that investments inherent in HRPs are an important mechanism to overcome employee turnover issues. Researchers (e.g., Newman, Thanacoody, & Hui, 2011) have argued that organizational policies on caring and supporting and investing in employees’ future career development would positively intervene in the turnover process and enhance affective organizational commitment of the employees. For example, Kehoe and Wright (2013) found that an aggregated per- ception of HRPs contributed to employee engagement and satisfaction and positively influenced their intent to remain in the organization.

HRPs, such as providing professional training, job security, pro- motion-from-within and investing in broad career paths, show that the organization intends to build a long-term exchange relationship with its staff. Taking training as an example, Becker (1962) points out that organizations invest in training programs to improve employees’ job performance. Existing literature has used the social exchange theory to explore the relationship among training, employee attitudes and be- haviors. For example, employers providing extensive training to em- ployees will result in employees reciprocating with motivation to learn new knowledge, and with loyalty via reduced turnover (Kesen, 2016). In addition, a negative relation between on-the-job training satisfaction and intention to quit was found in a recent study (Memon, Salleh, & Baharom, 2016). Based on the above argument, we proposed that:

Hypothesis 1. HRP is negatively associated with intention to quit.

HRPs have been argued to be related to employee turnover and retention. However, the underlying mechanisms are still speculative (Karatepe, 2013a; Sun et al., 2007). Very little research has explored the important role of employees' attitudes and perceptions of HRP im- plementation, or has investigated more proximal outcomes of HRPs that would play mediating roles in the HRPs–turnover relationship (Kehoe & Wright, 2013). Given the highly stressful work conditions for tourism and hospitality employees, involving unusual working hours and work overload with a high degree of human interaction, employees’ emo- tional exhaustion is a serious concern of management staff within this context. Therefore, it is vital for managers in the tourism and hospi- tality sector to adopt HRPs in order to accomplish favourable outcomes for their staff. In this study, we argue that employee perceptions of HRPs reduce their emotional exhaustion, which in turn influences their turnover intentions.

A few studies on HRPs have explored their influences on employees’ psychological outcomes, including employee subjective well-being and emotional exhaustion (Fan et al., 2014; Kroon, van de Voorde, & van Veldhoven, 2009). Emotional exhaustion is referred to as “the extent to which employees feel emotionally overwhelmed and drained by their work” (Janssen, Lam, & Huang, 2009, p. 788). High emotional ex- haustion has been demonstrated to lead to various negative job-related outcomes in the tourism and hospitality industry, including decreased job performance (Choi, Kim, Lee, & Lee, 2014), low extra-role perfor- mance (Yavas, Karatepe, & Babakus, 2018), high counterproductive workplace behaviors such as rude behaviors toward coworkers and

H2

Emotional Exhaustion

Human Resource Practice

Intention to Quit

Brand Equity

H5 H6

H3

H4

Organizational Level

Individual Level

H1

Fig. 1. Hypothesized multilevel model.

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customers (Hur, Moon, & Jun 2016), and high work–family conflict (Krannitz, Grandey, Liu, & Almeida, 2015). Those consequences even- tually lead to high turnover in organizations (Deery & Jago, 2015).

HRPs, on the other hand, could yield win-win outcomes leading to mutual benefits for both employers and employees (Fan et al., 2014; Harley, Allen, & Sargent, 2007). As discussed above, HRPs generate reciprocity (Gouldner, 1960); and reciprocity, as a key mechanism, influences employees’ positive psychological feelings in the workplace. For example, employees could gain task discretion when performing their work, and they would feel control of the pace of work. Employees could also benefit from HRPs in terms of more meaningful work, more secure jobs, improved communication channels, and more family- friendly measures; thus employees may experience less stressful work and lower emotional exhaustion. Several empirical studies (Harley et al., 2007; Kalmi & Kauhanen, 2008; Macky & Boxall, 2008) have concluded that individual stress levels and psychological strain would be reduced after companies implemented HRPs. For example, Fan et al. (2014) found that HRPs improved subjective well-being and decreased stress and burnout among Chinese healthcare employees. Conway, Monks, Alfes, and Bailey (2016) found that employee voice mechan- isms, as an HRP, act as a resource by giving employees a sense of control, which can reduce the deleterious effect of emotional exhaus- tion. Accordingly, we predicted the following:

Hypothesis 2. HRP is negatively associated with emotional exhaustion.

Emotional exhaustion could serve as a key mechanism relating HRPs with individual work-related attitudes. Emotional exhaustion acts as an antecedent to employee turnover (Lloyd, Boer, Keller, & Voelpel, 2015; Yavas et al., 2018). When employees feel emotionally exhausted, they experience depletion of their emotional resources. Employees tend to quit because of the discomfort resulting from high levels of emotional exhaustion in the workplace. Emotional exhaustion was also reported to result in employees' intention to quit in the hotel industry, according to Jung, Yoon, and Kim (2012). Although existing empirical literature has not yet examined the mediating role of emotional exhaustion linking HRPs with intention to quit, the mediation relationship should be consistent with social exchange theory, which implies that reciprocity influences a series of employees' positive psychological feelings in the workplace (Fan et al., 2014). Based on the previous discussion, it is suggested that HRPs would decrease emotional exhaustion, which in turn would decrease employees’ intention to quit. This conceptual scheme is in line with a mediation model. Taken together, we suggest that HRPs reduce intention to quit indirectly by reducing emotional exhaustion. In other words, the relation between HRPs and intention to quit is mediated by emotional exhaustion:

Hypothesis 3. Emotional exhaustion mediates the relation between HRPs and intention to quit.

2.2. Brand equity as a moderator

To develop further understandings of how organizational strategies affect employees' long-term decisions and attitudes, we now turn to theory and studies in the marketing literature. More specifically, lit- erature on branding suggests that by creating a unique and favourable brand image in the mind of customers, it is more likely that an orga- nization's products would be selected over similar offerings from other organizations (Yoo, Donthu, & Lee, 2000). Papasolomou and Vrontis (2006) advocate that high brand equity allows companies to exhibit influences that facilitate customer brand loyalty through strong name awareness, perceived quality, brand associations and credibility. In fact, brand equity has been well acknowledged as an organization's strategic asset; hence, this study defines brand equity as an organization's stra- tegic initiatives with an intended image that occupies “a distinct and valued place” in the mind of its targeted stakeholders (Keller, 2003, p. 44), including customers and employees. Importantly, our conceptual

definition of brand equity takes a resource-based view (Arend & Lévesque, 2010) to denote brand equity as an organizational resource (i.e., strategic asset), while such a resource also casts influences onto internal customers (e.g., employees). A positive brand can be con- sistently embraced by employees in championing the brand (Xiong & King, 2015), which positively affect customers' brand commitment (Erkmen & Hancer, 2015). In fact, studies in the marketing literature on brand equity have been applied to the management discipline in un- derstanding employee behaviors, as detailed below.

Our contention regarding the interaction between HRPs and brand equity stems from two theoretical streams of work: social exchange theory (Cropanzano, Anthony, Daniels, & Hall, 2017) and social iden- tity theory (Ashforth & Mael, 1989). The social identity theory posits that “individuals strive to achieve or to maintain positive social iden- tity,” which “is based on a large extent of favourable comparisons … the in-group must be perceived as positively differentiated or distinct from the relevant out-groups” (Tajfel, 1974, p. 16). Accordingly, working in an organization with a high brand equity helps an employee to maintain a sense of pride and prestige and hence, to become better identified with the organization (Löhndorf & Diamantopoulos, 2014). This process ultimately leads to favourable employee behaviors and brand-congruent practices. For example, Cable and Turban (2001) contended that brand equity could influence job seekers' decision making during the recruitment process, in such a way that companies with a strong brand would be favored by the job seeker. Kim, Jeon, Jung, Lu, and Jones (2012) also reported that employer brand equity positively impacts the intention of the job seeker to pursue a job op- portunity. In addition, Collins and Stevens (2002) noted that positive recruitment-related activities in the early stage, including media pub- licity, corporate sponsorships, personal or word-of-mouth endorse- ments and recruitment advertising, will positively influence graduating students’ application decisions.

Although there is existing research on brand equity from the job seeker perspective, little research is reported on how brand equity can play a role in influencing employee psychological outcomes (Erkmen & Hancer, 2015; Kimpakorn & Tocquer, 2010). In a study of luxury hotels in Thailand, Kimpakorn and Tocquer (2010) found that high hotel brand equity is characterized by a high commitment of the employee to support the brand. A strong brand name could stimulate employee identification with the organization, develop their supportive attitudes, and give them incentives to deploy their human capital to accomplish company goals (Vomberg, Homburg, & Bornemann, 2015). Jiang and Iles (2011) assert that if brand equity is high, it can help a company to build employee belongingness, emotional bonds and pride, and thus to reduce employee turnover. The opportunity for employees to ap- preciate the organization's brand values can engender employee com- mitment to the organization, resulting in the employees holding sy- nergetic values worthy of maintaining (King & Grace, 2009).

In a similar vein, brand equity may also impact employee emotional exhaustion. For example, Grandey (2003) found that surface acting, in comparison to deep acting, can significantly contribute to employee emotional exhaustion. However, when employees believe and act ac- cording to a brand standard and market position, it is easier for them to develop the authentic brand attitude from within, resulting in elevated positive emotions and hence, reducing emotional exhaustion and in- tention to quit (Xiong & King, 2015). When employees perceive the relevance between their brand delivery behaviors and their personal gains (e.g., positive feedback, or better compensation as a result of the improved organization performance), they are more likely to exert ef- fort in developing positive brand attitude, to carry out extra-role brand behaviors, and to experience less potential burnout; hence, they are more likely to remain in the organization (Xiong, King, & Piehler, 2013). Brand equity can also increase employees’ perceived brand meaningfulness, which can further enhance their feelings of accom- plishment and fulfilment of personal worth and higher order needs. With a strong perceived brand meaningfulness, employees could be less

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prone to experience emotional exhaustion, more motivated to reinforce their job performance, and hence, more committed to their jobs and the employer (Xiong & King, 2015).

Drawing on social exchange theory which is grounded in role of HRPs, in lieu of social identity theory which is grounded in the role of brand equity on employees, we propose a moderating influence of brand equity on the impact of HRPs. According to social exchange theory, support from an organization through HRPs signifies favourable exchange of resources (Grant, Dutton, & Rosso, 2008) and hence, lowers employee emotional exhaustion and intention to quit. We pre- dicted that this mechanism would be more effective when employees strongly identify with the organization (i.e., a strong brand), as they feel a sense of belongingness, prestige, joy, and positive self-image working in such a setting (Löhndorf & Diamantopoulos, 2014). That is, we argue that favourable social exchange renders a mitigation process that reduces employees’ negative outcomes. Such a process is condi- tioned upon the social context where they are embedded. When the social context makes available more resources (i.e., high brand equity) that help employees to attain greater gains, the exchange would possess greater benefits. This contention can be demonstrated by the resource- based view (Arend & Lévesque, 2010), which asserts that com- plementarity is present when the contributions of one resource to em- ployee outcomes grow in the presence of another resource, such that the joint impacts would exceed the sum of the separate impacts. In this article, we argue that brand equity moderates the relation between HRPs and its outcomes, such that combining both brand equity and HRPs yields the most positive results. The resource-based view further asserts that an organization is a system that involves interdependent resources; and heterogeneity in the distribution of resources would result in a sustainable competitive advantage (Carmeli & Tishler, 2004). Brand equity and HRPs individually give rise to positive employee outcomes. However, the resource-based view contends that the stra- tegic resources would achieve their full potential through acting in a complementary manner (Barney, 1991). Thus, with a strong brand, employees could be more stimulated to engage in HR practices to benefit themselves. Hence they would be less likely to experience emotional exhaustion; and as a consequence, their desire to leave an organization would be lower. Therefore, we hypothesized that HRP has a more acute impact on mitigating employee emotional exhaustion (and eventually turnover intentions) when brand equity is high than when brand equity is low.

Hypothesis 4. The relation between HRPs and emotional exhaustion is moderated by brand equity in that the relationship is stronger in hotels with a higher level of brand equity.

Hypothesis 5. The relation between HRPs and intention to quit is moderated by brand equity in that the relationship is stronger in hotels with a higher level of brand equity.

Hypothesis 6. The relation between emotional exhaustion and intention to quit is moderated by brand equity in that the relationship is weaker in hotels with a higher level of brand equity.

3. Methods

3.1. Research setting, participants, and procedure

Data were collected by two sources—from two independent sur- veys—in the context of hotels in Macau, China. The enclave is re- nowned as the “Asian Las Vegas” and is currently the world gambling capital, with a mix of international hotel chains such as Sheraton, JW Marriott, Ritz Carlton, Four Seasons, Conrad, Best Westin, and Holiday Inn; as well as local and regional operators. We first identified a list of 37 hotel properties that had an adequate size of clientele and staff body, from information provided by the local tourism authorities. These es- tablishments were primarily casino hotels. The first survey targeted

hotel guests with an objective to assess customer dispositions and be- haviors such as brand equity perceptions. For each selected property, a quota sampling method was adopted: a quota between 20 and 50 re- spondents was set depending on the size of the property. Next, a group of trained field investigators were instructed to intercept respondents at the exit of each selected property. We used a systematic sampling method with a skip interval of three to reduce sampling bias. A person- administered survey approach was employed to assist respondents in filling out the questionnaire. A total of 1393 subjects were recruited in the first survey. They included 52.1% males; 36.5% between the age of 20 and 29, 28.9% between the age of 30 and 39, and 21.2% between the age of 40 and 49; 65.0% from mainland China, 23.0% from Hong Kong, and the rest mostly from other Asian regions.

The second survey targeted hotel employees with an objective to assess employee perceptions and behaviors such as perceived human resource practices, emotional exhaustion, intention to quit, and orga- nizational tenure. Following the data collection procedure and sam- pling method of the first survey, a quota between 10 and 20 employees was identified. Systematic sampling was employed with a skip interval of three. Respondents were then intercepted at the employee exits, and a small gift was presented to each respondent upon completion of the survey. It is important to note that only frontline employees (i.e., line staff and managers) working in the hotel area were recruited in the survey, with filter questions ensuring their positions and work condi- tions. Both survey questionnaires were translated by two of the authors and two independent researchers, who were bilingual, using the back translation method. The sample of the second survey had 501 complete responses. Of the respondents, 54.9% were females; 40.9% were be- tween the age of 25 and 34, 33.3% were between the age of 35 and 44, and 19.6% were between the age of 45 and 54; 57.1% had a tenure of one to three years, while 20.8% had a tenure of three to five years; and the majority (i.e., 78.4%) were line employees, while the rest were line supervisors.

3.2. Measures

Scales used in the present study were all adopted from the existing literature, as we further discuss below. These multi-item scales were developed based on reflective measures, in that each observed variable (i.e., item) renders a manifestation of the latent construct (Diamantopoulos, Riefler, & Roth, 2008). Hence, the construct implied common causality in its corresponding items.

Human resource practice. We used Sun et al. (2007) 10-item four- factor high-performance human resource practice scale to assess the construct as “training,” “employment security,” “result-oriented ap- praisal,” and “participation.” The rating scale for each item ranged from 1 (strongly disagree) to 5 (strongly agree). An example of the training scale item was “The organization provides formal training programs to teach new staff the skills they need to perform their job.” An example of an employment security scale item was “The organization provides job guarantees to employees.” An example of a result-oriented appraisal scale item was “Employee performance is more often measured with objective quantifiable results.” An example of a participation scale item was “Employees are allowed to make decisions in their jobs.” The scale is adequately reliable with a Cronbach's alpha (α) of 0.90.

Emotional exhaustion. We adopted a four-item scale from Karatepe and Uludag (2008) to assess emotional exhaustion. Each item was as- sessed using a 9-point anchor ranging from 1 (strongly disagree) to 9 (strongly agree). Example items were “I feel burned out from my work” and “Working with people all day is really a strain for me.” The scale is highly reliable with an α of 0.95.

Intention to quit. We used a four-item scale adopted from Suazo (2009). Each item was evaluated using a 7-point anchor ranging from 1 (strongly disagree) to 7 (strongly agree). Example items were “At work, I will probably look for a job outside my current organization in the next year” and “I often think about quitting my job.” The scale is fairly

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consistent with an α of 0.91. Brand equity. We used a four-item measure adopted from Yoo et al.

(2000) to assess overall brand equity. Each item was evaluated using a 5-point anchor ranging from 1 (strongly disagree) to 5 (strongly agree). An example item was “If there is another brand as good as this hotel, I still prefer this hotel.” The scale is adequately reliable with α = .87. Next we aggregated the scale at the organizational level and validated its appropriateness. First, brand equity was significantly different among hotels (F(34, 1358) = 7.85, p < .001). Second, inter-member re- liability indexes (ICC[1] = .15, ICC[2] = .87) and median inter-rater agreement (rwg[j] = .85) were warranted. These evidences support aggregation of the scale at the macro (i.e., hotel) level.

Control variables. We controlled for gender (1= “male” and 2= “female”), age (1= “24 or less” and 6= “65 or above”), and or- ganization tenure (1= “less than one year” and 4= “five years or more) at the individual level. They were included in the analysis as control variables, as commonly reported in the literature (e.g., Hirst, van Knippenberg, Chen, & Sacramento, 2011). We further controlled for hotel star rating (0= “four star or below” and 1= “five star or above”) at the organizational level. Our rationale is supported by the fact that a hotel's brand equity and its impact could be affected by the hotel strategy, which could be assessed by the property's star rating, as Sun et al. (2007) acknowledged.

Data diagnostics. Drawing on recommendations from Podsakoff, MacKenzie, Lee, and Podsakoff (2003), we addressed common method bias (CMB) based on two approaches. First, data were collected from two independent sources: employee and customer surveys. Second, different scale anchors were used to mitigate CMB. We further diag- nosed CMB using Harman's single-factor test. Results indicate that CMB was not a limitation, as χ2/df= 11.14, greater than the 2.0 threshold. The marker variable technique was also used to further assess CMB. We used a 4-item scale of motivational climate adopted from Moore, Brown, and Fry (2015) to partial out the effects of the predictors on the criterion variable. The procedure suggests that controlling the marker variable does not affect the proposed relationships. We diagnosed multicollinearity using the variance inflation factor (VIF), and results demonstrate that it was not an issue in the study, as no VIF is greater than 2.0.

4. Results

Table 1 presents descriptive statistics and correlations among the variables of interest. Because data were obtained from two sources while analyses included both individual- and organizational-level con- structs, we diagnosed whether multilevel analysis was appropriate. Using hierarchical linear modeling (HLM), we first tested a null model into which no predictors were entered. Results provide support for the use of HLM with χ2

(33) = 177.76 (p < .001) and ICC1 = .23 for emo- tional exhaustion, and χ2

(33) = 151.79 (p < .001) and ICC1 = .20 for intention to quit. These statistics indicate that 20%–23% of the variance resided between organizations, to be explained by level 2 variables.

Hypotheses 1, 2, and 3 propose a relationship leading from HRP to intention to quit through emotional exhaustion. Results from Table 2

reveal significant relationships between HRP and emotional exhaustion (b=−0.22, p < .001), between HRP and intention to quit (b=−0.76, p < .001), and between emotional exhaustion and in- tention to quit (b = .52, p < .001). Using Baron and Kenny (1986) mediation procedure, we find a partial mediation relationship of the three variables. We then used the Sobel test to show that the mediation is significant (Z=−4.83, p < .001). Together, those results provide support for Hypotheses 1, 2, and 3.

We examined the cross-level interaction effects of brand equity in Model 3. Results reveal that the HRP×brand equity cross-level inter- action term is significant (γ=−1.71, p < .001), in support of Hypothesis 4. To illustrate the interaction graphically, we followed Aiken and West (1991) simple slope procedure to redefine the in- dependent and moderator variables into plus and minus one standard deviation from the mean and plotted the interaction in Fig. 2. Results show that the HRP effect on emotional exhaustion is only significant for hotels that enjoy a high level of brand equity (b=−1.57, t=4.43, p < .001). In other words, HRP has no impact on emotional exhaustion for employees embedded within low brand equity hotels (b=−.27, t = .92, p=n.s). On the contrary, HRP has an acute impact on miti- gating employee emotional exhaustion in high brand equity properties; hence, brand equity serves as a buffer of employee burnout and fatigue only in these establishments.

Results from Table 2 further reveal that while the HRP×brand equity cross-level interaction on intention to quit is not significant, the emotional exhaustion×brand equity interaction is significant (γ= .11, p < .05), supporting Hypothesis 6 but not Hypothesis 5. Using the simple slope procedure described above, we depict the interaction in Fig. 3. In particular, the slope of emotional exhaustion is slightly more salient for high brand equity hotels (blow brand equity = .47, t=4.65, p < .001 vs. bhigh brand equity = .59, t=5.94, p < .001). Yet, employee propensity to quit is significantly lower in these settings only when employee emotional exhaustion is low (Mlow brand equity= 2.10 vs. Mhigh

brand equity= 1.67); while such propensity is fairly similar when em- ployee emotional exhaustion is high (Mlow brand equity= 3.54 vs. Mhigh

brand equity= 3.50). In other words, brand equity is an effective buffer in reducing employees’ desire to quit only when their level of mental fa- tigue is relatively low, and it is ineffective in mitigating quitting pro- pensity when employees have already reached a high level of exhaus- tion.

Results further reveal that neither the direct effect of brand equity nor hotel star rating is significantly related to the two endogenous variables. Organization tenure has a moderate negative relationship with emotional exhaustion (b=−0.21, p < .10) and intention to quit (b=−0.08, p < .10). In summary, the moderated mediation re- lationship presented in Model 3 explains 37% of emotional exhaustion and 66% of intention to quit.

4.1. Auxiliary test

We tested two alternative models as follows. First, we examined the direct effects of brand equity and hotel rating to HRP. However, none of the effects were significant. We also tested the moderating effect of star rating on the relationship leading from HRP to intention to quit through emotional exhaustion, but found the moderating effect not to be sig- nificant.

5. Discussion

The present study investigates HRPs in the hotel setting and ex- plores how they could reduce employee emotional exhaustion and vo- luntary turnover intention. Based on the social exchange theory with respect to reciprocity between actors, we examined a mechanism in which HRPs act as favourable exchanges between employers and em- ployees. Through this mechanism, we contend that they could mitigate employee desire to quit through lowering their emotional exhaustion.

Table 1 Means, standard deviations, and correlations.

Variable Mean s.d. AVE 1 2 3 4

1. Human resource practice 3.76 .68 .50 (.90) 2. Emotional exhaustion 3.25 1.54 .82 -.59*** (.95) 3. Intention to quit 2.65 1.13 .72 -.61*** .83*** (.91) 4. Brand equitya 3.84 .38 .57 .07 -.18 -.15 (.87)

Note: ***p < .001. AVE=average variance extracted. Internal consistency reliabilities are in (parentheses). a. Values are operated at the organizational-level.

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Although HRPs act as a conduit to support employees at work, they might be more effective in some organizations and less in others. Drawing on the social identification theory, we predicted that brand equity of an organization works as a boundary condition that strengthens the role of HRPs. In turn, the proposed multilevel moder- ated mediation model presented in Fig. 1 works to contribute to the literature and the tourism and hospitality industry, as discussed in the following section.

5.1. Theoretical implications

From a broad theoretical perspective, this study makes an early attempt to bridge the gap between two disciplinary research areas: brand management and human resource management (HRM). As Colquitt and George (2011) in an editor's note at the Academy of Management Journal acknowledge, “Novel topics can often result from knowledge recombination, with something ‘new’ being created by building a bridge between two literature or disciplines” (p. 433). Carney, Gedajlovic, Heugens, Van Essen, and Van Oosterhout (2011) further contend that every theory (e.g., social exchange theory and the resource-based view), offers a useful perspective. However, none of the theories in isolation could explain the compound and multicolored or- ganizational form. Therefore, they suggest there is a need for future research to concurrently test multiple theories.

This study thus heeds the call from these scholars and contributes to the literature from two primary aspects. First, it integrates social ex- change theory and social identification theory to offer a synthesis of the two theoretical underpinnings in understanding how HRPs reduce employee turnover intentions. This study offers several substantive merits to the human resource literature, each of which adds nuances to the predominantly linear investigation of HR management on employee behaviors and firm performance, which have been the primary research interest in the tourism and hospitality industry for years (Cho et al., 2006; Karatepe & Uludag, 2008).

Although these prior studies have built the necessary foundation of the field, it is prudent to unpack the notion of institutional logic (Fong, Wong, & Hong, 2018) with respect to organizational identity and strategy by exploring the strategic imperative of the organizational- level brand on the role of HRPs. Drawing on an interplay between social exchange theory and social identity theory, results of this study warrant that the previously acknowledged linear relationship leading from HRPs to quitting intention is not only subject to the meditation of emotional exhaustion, but more importantly it is contingent upon the moderating role of organizational-level brand equity.

A brand not only acts as a strategic positioning metaphor that

Table 2 Results of hierarchical linear modeling.

Model 1a Emotional Exhaustion

Model 1b Intention to Quit

Model 2 Intention to Quit

Model 3a Emotional Exhaustion

Model 3b Intention to Quit

Individual-Level Control Gender .18 .01 -.09 .14 -.09 Age -.08 -.07 -.03 -.10 -.03 Tenure -.18† -.19* -.09† -.21† -.08†

Individual-Level Main Effects Human resource practice (HRP) −1.03*** (.167) -.76*** (.099) -.22*** (.044) -.92*** -.18*** Emotional exhaustion .52*** (.028) .53*** Cross-level effects Hotel star .07 .09 Brand equity (BE) -.39 -.23 HRP×BE −1.71** -.01 Emotional exhaustion×BE .11* R2 .28 .30 .41 .37 .66 ΔR2 .11 .09 .25

Noted: †p < .10, *p < .05, **p < .01, ***p < .001. Parameter estimates are unstandardized.

Note: HRP = high-performance human resource practice

0.0

0.5

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Low HRP High HRP

E m

ot io

na l E

xh au

st io

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Fig. 2. Human resource practice× brand equity interaction on emotional ex- haustion.

0.0

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Low Emotional Exhaustion High Emotional Exhaustion

In te

nt io

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t

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Fig. 3. Emotional exhaustion×brand equity interaction on intention to quit.

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renders an intended business image, product quality, and service standard of an organization in the eye of the consumers, it also lays the necessary internal organizational protocol as a means of organizational identification that guides employee behaviors. As Figs. 2 and 3 illus- trate, such an organizational identification driven from a strong brand has served as a buffer that on one hand reduces the negative effect of emotional exhaustion on intention to quit, and on the other hand fa- cilitates the positive influence of HRPs on lowering employees’ mental fatigue. Thus, we add new insights to the human resource literature by showcasing the heterogeneous nature of the HRPs–intention-to-quit mediated relationship by accounting for organizational contingencies through the cross-level role of a brand.

Second, this study seeks to build a bridge between two disciplinary areas: brand management and HRM. Despite these two research streams being closely related (as manifested in the current study), they have been isolated within their own disciplinary research domains. Whereas HRM literature has put a strong emphasis on reducing employees’ emotional exhaustion and quitting intentions as well as improving their job performance, the branding literature focuses on customer decision making and loyalty behaviors. The central tenet of brand management rests on how a brand could help in enticing consumers, how a brand and its affiliated products can be more attractive, hence yielding a competitive advantage over industry rivals.

Although a strong brand is imperative in maintaining long-term relationships with customers by building strong customer equity through strategic brand initiatives (Rust, Lemon, & Zeithaml, 2004; Wong, 2013), the current investigation looks beyond the lens of the traditional marketing domain. Importantly, a brand also renders a buffer that further mitigates the negative consequence of emotional exhaustion and strengthens the HRP initiatives. Our findings further reveal that such a buffering mechanism only works in organizations that enjoy a strong brand. That said, we believe this study helps ad- vance the extant literature by integrating brand management theore- tical accounts into the HRM research domain. The interplay between these two areas unveils a deeper understanding of why some of the best HRPs fail to achieve their intended objectives (Becker & Gerhart, 1996), perhaps due to an organization's branding strategy. By disentangling such strategic efforts through the proxy of brand equity, our study al- lows new insights on the nascent role of brand equity on HRM.

5.2. Managerial implications

The findings reported provide practicable implications to organi- zation leaders and HR professionals alike. The results demonstrate that the adoption of a configurational view of human resources can pay off; the building of HRPs powerfully influences the attitudes, perceptions and behaviors of the individual employees. Not only can these practices foster a positive workplace environment such as reducing employee emotional exhaustion, but HRPs also positively influence employee retention. Given the highly stressful working conditions of tourism and hospitality employees, emotional exhaustion and turnover issues could be serious concerns for managing employees in this industry (Zopiatis, Constanti, & Theocharous, 2014). Therefore, managers in this sector should adopt more HRPs so as to obtain positive outcomes for their employees. Investing in practices such as extensive training, employ- ment security, performance management processes, and employee participation would positively impact employee attitudes and beha- viors. Managers not only should be mindful of goals and objectives, they also should pay special attention to the entire system of HRPs to insure that the company encourages and incentivizes the appropriate and positive attitudes and behaviors of the staff.

The results of testing the moderated hypotheses suggest that the effect of HRPs is contingent upon brand equity. This finding clearly reveals the key role of the HR department in strengthening the brand internally. Therefore, tourism and hospitality organizations need to enhance their brand management to maximize the payoff from

adopting HRPs as a strategy to manage the employee–organization re- lationship. Firms that convey the value of the hotel via a strong and consistent brand will show a competitive advantage in the war for ta- lent. Encouraging conversations, seeking feedback from employees, explaining the job relevance to the customer, as well as including them in the brand development discussions, are critical ingredients to insure employees will internalize the brand's values (Xiong & King, 2015). If organizations make a concerted effort to encourage their employees to identify with the brand and internalize the brand into their self-concept, employees should be able to rationalize their attitudes and behaviors despite the challenges of the work environment in this sector. The significance of creating a brand interconnection with the employees at a deep level could go a long way toward reducing employee burnout and turnover. Advantages in retaining employees could translate into competitive advantages including generating and maintaining business. Additionally, because the results mirror studies in the marketing lit- erature, HR managers are advised to familiarize themselves with mar- keting concepts and to work jointly with marketing experts to ensure the organization is building a positive and coherent brand image in their employees' minds. Through this process, appropriate brand knowledge structures would be formed for employees that enable greater attraction and retention of employees, and increased motivation for them to deliver the brand promise.

5.3. Limitations and directions of future research

The substantive findings of this study should be interpreted in light of their limitations. First, we tested the impact of HRPs on intention to quit through emotional exhaustion. It is possible that other mediators, such as job embeddedness and career satisfaction, play a role in this process. Likewise, we used brand equity as a proxy for organizational strategic resources that lay a cross-level boundary condition of the proposed relationships at the individual level. Although we controlled for hotel star rating and other individual-level covariates, it is possible other organizational factors and situations, such as organizational cul- ture and service environment, could serve as strategic initiatives that exercise influence on individual behaviors. Future research could ex- tend the current study by assessing how other organizational settings and propositions, as well as individual-level mediators, could lead to a more comprehensive understanding of the phenomenon of interest.

Second, data of the study were drawn from 37 hotel operators in a popular travel destination in China. It is possible that people's cultural beliefs could play a role in the HRPs–intention-to-quit relationship, as Chinese are rooted with Confucian beliefs that highly value reciprocity. We encourage future research that investigates the role of cultural va- lues on HRP inquiries. Furthermore, we did not account for the impact of the nature of HRPs in this study. It is likely that different practices (e.g., training versus employment security) play different roles in af- fecting hotel employees' attitudes and behaviors. Thus, future studies could further investigate the role of each type of HRP in the tourism and hospitality industry.

Author contributions

IpKin Anthony Wong is the project leader of the study. He con- tributes to all aspects of the study including research design, data col- lection, data analysis, and manuscript preparation (i.e., introduction, literature review, methodology, results, and conclusions).

Shi Xu contributes primary on manuscript preparation of the study with a focus on literature review and implications.

Suk Ha Grace Chan contributes primary on research design and data collection.

Mang He contributes primary on data collection.

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Acknowledgment

This research was partially funded by the Fundamental Research Funds for the Central Universities at Sun Yat-Sen University (No. 18wkzd08) and by the Macau Foundation Grant (No. MF1705).

Appendix A. Supplementary data

Supplementary data to this article can be found online at https:// doi.org/10.1016/j.tourman.2019.04.013.

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Dr. IpKin Anthony Wong (PhD in University of Hawaii) is a professor of School of Tourism Management at the Sun Yat-Sen University, China. His current research interests include tourism and hospitality marketing, service quality management, international marketing, green marketing and tourism, casino management and gambling behaviors, branding and destination image, human resource manage- ment, among others. His publications appear in scholarly journals such as Tourism Management, Journal of Travel Research, International Journal of Hospitality Management, and more. He serves as a coordinating editor for International Journal of Hospitality Management and a board member for Journal of Travel Research, Cornell Hospitality

Quarterly, International Journal of Contemporary Hospitality Management, and Journal of Business Research.

Dr. Shi (Tracy) Xu is a Lecturer at University of Surrey School of Hospitality &Tourism Management. She holds a Ph.D. degree from the Pennsylvania State University. Dr. Xu has authored over thirty refereed journal articles and con- ference proceedings publications in hospitality & tourism. Dr. Xu received the Best Paper Award at the 20th Annual Graduate Education and Graduate Student Research Conference in Hospitality and Tourism, in Tampa, FL, 2015, and the Best Paper Award at the Southern Management Association Annual Conference, in Charlotte, NC, 2016.

Dr. Suk Ha Grace Chan is an assistant professor in City University of Macau. She received her Doctoral Degree in Hotel and Tourism Management from the Hong Kong Polytechnic University. Her research interests include ser- vice quality, organizational climate as well as tourism marketing and consumer behavior.

Dr. Mang He is an associate professor and deputy dean of School of Tourism Management at Sun Yat-sen University. His research interests are tourism policy, pro-poor tourism, sports tourism, health and wellness tourism, soundscape and tourism attraction.

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  • A cross-level investigation of the role of human resources practices: Does brand equity matter?
    • Introduction
    • Theoretical background and hypotheses
      • High-performance human resource practices and outcomes
      • Brand equity as a moderator
    • Methods
      • Research setting, participants, and procedure
      • Measures
    • Results
      • Auxiliary test
    • Discussion
      • Theoretical implications
      • Managerial implications
      • Limitations and directions of future research
    • Author contributions
    • Acknowledgment
    • Supplementary data
    • References

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Attribution theories in Human Resource Management research: a review and research agenda

Rebecca Hewett, Amanda Shantz, Julia Mundy & Kerstin Alfes

To cite this article: Rebecca Hewett, Amanda Shantz, Julia Mundy & Kerstin Alfes (2018) Attribution theories in Human Resource Management research: a review and research agenda, The International Journal of Human Resource Management, 29:1, 87-126, DOI: 10.1080/09585192.2017.1380062

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The InTernaTIonal Journal of human resource managemenT, 2018 Vol. 29, no. 1, 87–126 https://doi.org/10.1080/09585192.2017.1380062

Attribution theories in Human Resource Management research: a review and research agenda

Rebecca Hewetta  , Amanda Shantzb, Julia Mundyc and Kerstin Alfesd

arotterdam school of management, erasmus university, rotterdam, The netherlands; bTrinity Business school, Trinity college Dublin, Dublin, Ireland; cBusiness school, university of greenwich, london, uK; descP europe Wirtschaftshochschule Berlin, Berlin, germany

ABSTRACT There is no doubt that attribution theories have made their mark in social psychology and other related disciplines, but their application and extension to the field of HRs is in its infancy. Indeed, HR scholars have recently realized that understanding the process by which individuals explain the causes of behaviors and events provides insight into a host of HR-related issues. In our review of 65 papers, we identified three research streams with different foci – those that focused on HR system strength, on attributions that influence judgements and behaviors within functional HRM domains, and on the attributions employees make of the intent of HR practices. Notably, despite shared foundations, these three streams of literature rarely overlap. We summarize and provide theoretical and empirical directions for future research within each research area to help steer courses in these areas. Importantly, we also draw connections among the three streams to inspire future research to stretch the bounds of current theorizing on attributions in the field of HR.

Introduction

At the heart of attribution theory is the assertion that people are on a continuous quest to explain events that they encounter. Why did they reject my research proposal? Why did I receive a poor performance rating? Why is the train late? Attribution theory, originally developed by Fritz Heider in the early part of the twentieth century, ignited scholarly interest in such causal inferences. His work was subsequently developed by others in the field of social psychology; most notably Harold Kelley and Bernard Weiner, resulting in several complementary, and at times overlapping, theories of attributions (Fiske & Taylor, 1991). Despite their differences, each of these theories attempts to explain how people arrive at

© 2017 Informa uK limited, trading as Taylor & francis group

KEYWORDS attribution theory; hr attribution theory; hr system strength; hr process; review; hr theory

CONTACT rebecca hewett hewett@rsm.nl @DrBexh https://www.linkedin.com/in/rebeccahewett/

88 R. HEWETT ET AL.

causal inferences, what inferences they make, and the behavioral and attitudinal consequences of those inferences.

Although attribution theories generated great enthusiasm from social psycholo- gists prior to the 1980s, attention has since then been on the decline (Weiner, 2008). At the same time, the use of attribution theories in the field of HR has accelerated (see Figure 1). We do not foresee the pace slowing down anytime soon; as we write this review, two high impact journals within our field – Journal of Organizational Behaviour and Human Resource Management Journal – have recently released calls for papers for special issues on this topic. In part, this is because two key theories with attribution tenets at their heart – HR system strength (HRSS) (Bowen & Ostroff, 2004) and HR attributions theory (HRA) (Nishii, Lepak, & Schneider, 2008) – have invigorated attention in this area, and there has been a resurgence in the interest of the role of attribution theories in explaining the so called ‘black box’ between HR and performance (e.g. Ehrnrooth & Björkman, 2012; Ostroff & Bowen, 2016; Sanders, Shipton, & Gomes, 2014).

In addition to the two HR theories heavily influenced by attributions theories, the concept of attributions bubbles under the work of others in the HR domain. However, these theoretical and empirical developments have been largely oper- ating in silos, in part because they stem from different theoretical strands of attri- bution theories, they operate at different levels of analysis, and the object of the attribution differs. Consequently, we know very little about how these inter-related research streams are complementary and we have yet to address the possibility that they can be united under a general framework (Malik & Singh, 2014; Ostroff

Figure 1. summary of papers applying attributions theories to hr domain. notes: fhra = functional hr attributions; hrss = hr system strength; hra = hr attributions theory. graph based on count of papers from Table 1.

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 89

& Bowen, 2016). The purpose of this review is therefore to take stock of the appli- cation of attribution theories in the field of HR to help clear some paths among these burgeoning areas of research. In doing so, we also hope to inspire future research to investigate the application of attribution theories because they have a rich and well developed approach that has a great deal to say about a wide range of HR-related issues.

In the remainder of this paper, we firstly summarize three key strands of attri- bution theory that have been particularly influential in HR research. Doing so is important because we see connections between these different strands and their development, and theoretical and empirical advancements in how HR scholars have approached attribution theories. Next, we describe and draw insights from our review of the extant literature on attribution in HR, grouping studies into three themes: HRSS, attributions that feature within functional HR domains, and attributions of the intent of HR practices. Within each, we review papers and pro- vide suggestions for future research. This is followed by a discussion of how future studies might theoretically and empirically connect the three theoretical camps.

Attribution theories: a historical review

In this section, we summarize three theories of attribution. Heider’s ‘com- mon-sense’ psychology is reviewed first because its tenets sowed the seeds for the second and third variations of attribution theory: Kelley’s work on covariation and Weiner’s attributional theory. Although there are multiple strands of attribution theory, we focus on these three theories because they have been influential for organizational scholarship (Martinko, Harvey, & Dasborough, 2011) and have already been incorporated into the HR literature to some extent.1

Heider’s attribution theory

The conception of attribution approaches is found in the work of Fritz Heider (1958), who famously stated that individuals concoct common sense explanations of the world in order to make sense of, predict, and control events. Heider sug- gested that a layperson’s explanations are naïve, in that they are not scientifically conceptualized, analyzed, or tested. However, the process by which individuals arrive at explanations for events is akin to the way in which scientists arrive at explanations; that is, in a fairly logical and analytical manner. Heider’s most important thesis is that perceived causality influences the perceiver’s responses and actions. He elaborated this theory via several propositions, of which we sum- marize the most influential here.

The first key tenet of Heider’s work is the distinction between actions due to per- sonal causes versus those that are related to the environment. In other words, the attributions people make are dependent on whether the locus of causality for the behavior or event is the person (internal), or the environment (external), or both.

90 R. HEWETT ET AL.

Internal locus consists of both motivation and ability. For instance, an employee might be late for work because he or she is unmotivated or lacks the ability to arrive on time. However, motivation and ability are often insufficient; situational (external) factors also influence attributions. For example, if the employee is late on a morning with a blustery snowstorm, then arriving to work on time is a joint feature of the weather, motivation and ability. The manager uses information about motivation, ability, and situational factors to infer the cause of the event.

A second key proposition of Heider’s theory is the identification of certain ‘errors of attribution’ in how people make causal inferences. For instance, the fundamental attribution error occurs when individuals focus on internal, rather than external factors to explain another person’s behavior (Ross, 1977). Another error, called the actor-observer effect, describes the propensity for actors to attrib- ute their own actions to external causes (‘I received a poor performance appraisal rating because my manager is unfair’), while observers attribute the same actions to internal features (‘She received a poor performance appraisal rating because she is a poor performer’; Jones & Nisbett, 1972). Finally, Heider described the self-serving bias, which states that people attribute their own success to disposi- tional and internal factors, while external and uncontrollable factors are used to explain the reasons for their failure (Miller & Ross, 1975). For instance, employees who receive a promotion attribute this success to their talent, but if they fail to receive the promotion, they attribute it to management unfairness.

Kelley’s attribution theory

Heider’s theory was further expanded by Kelley (1967, 1973) who wrote several theoretical papers that drew attention to how individuals infer causes about a person’s behavior or events. When a person has access to multiple instances of the same behavior or situation, Kelley proposed that people employ a covariation principle to infer the causes.2 To illustrate this theory, imagine that a manager is irritable. In trying to understand why the manager is irritable, employees identify any potential causes for the irritability, and attribute the effect to the most likely cause based on the information available to them. Kelley (1967) outlined three types of covariation information that influence whether an observer attributes a person’s behavior to internal or external causes. The first is distinctiveness, which refers to the extent to which a person behaves in the same way across similar sit- uations. If the manager is irritable at home and at work (low distinctiveness), then an observer makes an internal attribution (e.g. the manager is generally an irritable person). Observations of different people allow for judgements to be made about the second type of covariation information, that is, consensus. If coworkers agree that the manager is irritable (high consensus), they make an internal attribution. The third is consistency, which refers to the extent to which a person behaves consistently over time. If the manager has been frequently irritated in the past, observers make an internal attribution because, regardless of the environment, the

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 91

manager becomes irritable on a frequent basis. Different combinations of infor- mation yield meaningful causal inferences about why an event occurred (see Fiske & Taylor, 1991 for a review of these combinations).3 Whereas the above example illustrates how the covariation principle explains attributions of an individual’s behavior, Kelley (1967) stated that observers attribute an event or behavior to a stimulus or entity (such as HR practices) when distinctiveness, consistency, and consensus are all high.

Weiner’s attributional theory

The third, and final model of attribution that we review here is the work of Weiner (1979), who explored attributions within domain-specific contexts, such as help- ing and achievement, and is oftentimes termed an attributional theory (Fiske & Taylor, 1991). Unlike Heider and Kelley, who presented somewhat static attribu- tion models, Weiner explained how causal attributions influence future expecta- tions, emotions, and performance. In his application to an achievement context, Weiner maintained that people respond emotionally (negatively or positively) to task success or failure based on the attributions that they make about the reasons for behavior after an event occurs (Weiner, 2008). Weiner therefore extended Heider and Kelley’s attribution theories by suggesting a temporal order for attri- butions, in that individuals consider the reasons for behavior or actions after the event which brings dynamism to the theory, in that these attributions can change over time according to the situation.

According to Weiner and colleagues, any task success or failure is followed by a search for the cause of the outcome along three dimensions: locus of causality (as in Heider’s work), stability, and controllability (Weiner, 1979; Weiner, Heckhausen, & Meyer, 1972). The stability of the behavior echoes Kelley’s work yet it is more clearly articulated by Weiner to explain how causal analysis is most informative when stable causes are identified (e.g. dispositions). Controllability is also impor- tant because people do not make causal attributions solely to understand why something happened, but also to control future events. Different combinations of locus of causality, stability and controllability in an achievement context are associated with attributions of ability, effort, task difficulty, and luck. For example, an employee is likely to make an ability attribution (‘My pitch wasn’t good enough to make the sale’) when the cause of the failure is seen as due to stable (‘I am not a good salesperson’) and controllable (‘I had the resources necessary to make the sale’) factors (Fiske & Taylor, 1991).

Together, Heider, Kelley and Weiner set down the theoretical foundations of attribution theories. In the remainder of this paper we draw on the key proposi- tions as a basis to examine the way the field of HR has leveraged attribution the- ories. We deliberately eschewed a graphical illustration of how the different social psychological attribution theories fit together because we concluded that doing so would blur the nuances of each strand of attribution theory. In his description

92 R. HEWETT ET AL.

Ta bl

e 1.

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r pr

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01 5)

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1)

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or k

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s

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 93

m ar

ch in

gt on

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l. (2

01 1)

su

rv ey

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u K

h r

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86 )

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qu

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f f ut

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; pe

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ve d

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ty

fo r f

ai lu

re ; h

iri ng

re

co m

m en

da tio

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(2

00 7)

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u K,

c hi

na , c

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ex

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si on

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98 9)

ex

pe rim

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a Pe

rf or

m an

ce e

va l-

ua tio

n m

an ag

er ’s

pr io

r a tt

rib u-

tio ns

fe rr

in a

nd D

irk s (

20 03

) su

rv ey

– c

ro ss

se c

u sa

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in ce

n- tiv

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w ar

ds In

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na l t

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g or

do n

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lb y

(1 98

9)

qu as

i-e xp

– c

ro ss

se c

n ot

st at

ed

g rie

va nc

e fil

in g

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nt to

fi le

g rie

v- an

ce g

re en

a nd

l id

en

(1 98

0)

ex pe

rim en

t u

sa Pe

rf or

m an

ce e

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ua tio

n Pe

rf or

m an

ce im

pr ov

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ct io

ns

g re

en be

rg (2

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su

rv ey

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pe at

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sa Pe

rf or

m an

ce -r

el at

ed

in ce

nt iv

es Pa

y- pe

rf or

- m

an ce

li nk

(C on

tin ue

d)

94 R. HEWETT ET AL.

St ud

y M

et ho

db Co

un tr

y of

d at

a co

lle ct

io n

H R

pr ac

tic e

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en ts

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es c

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g ro

th e

t a l.

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ey –

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c u

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rie va

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fil in

g le

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pe l (

20 08

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(1

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s a nd

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(1

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on

ta ke

n Kn

ow lto

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d m

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98 0)

ex

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u sa

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tio n

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lu -

at io

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rs ga

ar d

et a

l. (2

00 2)

su

rv ey

– c

ro ss

se c

u sa

m an

ag er

b eh

av io

rs

re la

tin g

to h

r pr

ac tic

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m an

ag er

tr

us tw

or th

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ha vi

ou r

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t i n

m an

ag er

o cB

fa irn

es s o

f h r

po lic

ie s

le vy

e t a

l. (1

99 8)

ex

pe rim

en t;

su rv

ey –

re

pe at

ed u

sa Pe

rf or

m an

ce e

va l-

ua tio

n sa

tis fa

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n w

ith a

pp ra

is al

fe

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ou rc

e, a

nd

pr oc

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m ay

o an

d m

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(2

01 0)

su

rv ey

– c

ro ss

se c

u sa

a Pe

rf or

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va l-

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so ur

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re m

ba ye

a nd

K ou

ab en

an

(2 01

3)

su rv

ey –

c ro

ss se

c fr

an ce

ac ci

de nt

a na

ly si

s co

m m

itm en

t t o

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de nt

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al ys

is ex

pl an

at io

ns fo

r ac

ci de

nt s

m ill

er a

nd W

er ne

r (2

00 5)

ex

pe rim

en t

u sa

a Pe

rf or

m an

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va l-

ua tio

n Ta

sk p

er fo

rm an

ce ,

co w

or ke

r’s c

on te

x- tu

al p

er fo

rm an

ce m

itc he

ll an

d Ka

lb

(1 98

2)

ex pe

rim en

t; qu

al –

in te

r- vi

ew s

u sa

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or m

an ce

e va

l- ua

tio n

su pe

rv is

or

ex pe

rie nc

e Pe

rf or

m an

ce im

pr ov

e- m

en t a

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ns

m ow

en , K

ei th

, B ro

w n,

an

d Ja

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n (1

98 5)

ex

pe rim

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u sa

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e va

l- ua

tio n

Pe rf

or m

an ce

Ta bl

e 1.

 (C on

tin ue

d) .

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 95

Q ui

no ne

s ( 19

95 )

ex pe

rim en

t u

sa Tr

ai ni

ng e

ffe ct

iv e-

ne ss

se lf-

effi ca

cy

ra em

do nc

k an

d st

rij bo

s ( 20

13 )

qu as

i-e xp

– c

ro ss

se c

n et

he rla

nd s

Pe rf

or m

an ce

fe ed

- ba

ck ed

uc at

io n

le ve

- la

ge fe

ed -

ba ck

co

nt en

t- se

nd er

st

at us

se nd

er

pe rf

or m

an ce

ap

pr ai

sa l

st ru

th er

s, W

ei ne

r, an

d al

lre d

(1 99

8)

ex pe

rim en

t u

sa Pe

rf or

m an

ce m

an -

ag em

en t

Ty pe

o f p

er so

nn el

de

ci si

on ta

ke n

Ta y

et a

l. (2

00 6)

su

rv ey

– re

pe at

ed si

ng ap

or e

re cr

ui tm

en t &

se

le ct

io n

se lf-

effi ca

cy

Ta yl

or a

nd P

ie rc

e (1

99 9)

su

rv ey

– re

pe at

ed n

ew Z

ea la

nd Pe

rf or

m an

ce e

va l-

ua tio

n To

m lin

so n

an d

ca rn

es

(2 01

5)

ex pe

rim en

t u

sa re

cr ui

tm en

t &

se le

ct io

n em

pl oy

ee ’s

pr ev

io us

hy

po cr

iti ca

l be

ha vi

ou r-

m an

ag er

’s ex

pl an

at io

n fo

r b ro

ke n

pr om

is e

Pe rc

ep tio

ns o

f b eh

av io

ur al

in

te gr

ity

Th om

ps on

e t a

l. (2

01 5)

ex

pe rim

en t

u sa

re cr

ui tm

en t &

se

le ct

io n

Pe rc

ep tio

ns o

f p er

so n-

en vi

- ro

nm en

t fi t

em pl

oy ab

ili ty

Tr ah

an a

nd s

te in

er

(1 99

4)

qu al

– in

te rv

ie w

s; q

’a ire

s u

sa a

D is

ci pl

in ar

y de

ci -

si on

s D

is ci

pl in

ar y

de ci

si on

ta

ke n

Tu ck

er a

nd r

ow e

(1 97

9)

ex pe

rim en

t ca

na da

h iri

ng d

ec is

io ns

ex pe

ct an

cy

(b as

ed o

n le

tt er

o f

re fe

re nc

e) To

lli a

nd s

ch m

id t

(2 00

8)

ex pe

rim en

t u

sa Pe

rf or

m an

ce fe

ed -

ba ck

se lf-

effi ca

cy g

oa l-s

et tin

g

W is

w el

l a nd

l aw

re nc

e (1

99 4)

ex

pe rim

en t

u sa

a Tr

ai ni

ng in

fe ed

ba ck

sk

ill s

fe ed

ba ck

sk ill

s

(C on

tin ue

d)

96 R. HEWETT ET AL.

St ud

y M

et ho

db Co

un tr

y of

d at

a co

lle ct

io n

H R

pr ac

tic e

A nt

ec ed

en ts

O ut

co m

e va

ria bl

es c

A tt

itu de

s Be

ha vi

or s

O th

er s

At tr

ib ut

io ns

o f i

nt en

t: H

R at

tr ib

ut io

ns th

eo ry

Ba co

n an

d Bl

yt on

(2

00 5)

qu

al –

in te

rv ie

w s

u K

Te am

w or

ki ng

g en

er al

p er

ce pt

io ns

ch en

a nd

W an

g (2

01 4)

su

rv ey

– c

ro ss

se c

ch in

a h

r sy

st em

Po sT

ur no

ve r i

nt en

t Ta

sk p

er fo

rm an

ce

fo nt

in ha

e t a

l. (2

01 2)

su

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THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 97

of the field, Weiner (2008, p. 154) stated that attribution theory is not a ‘central forest fire on which many heap woods and brush’ but rather that

the wind scattered the fire to various locations, giving rise to numerous smaller pockets of flame. There were indeed paths between these various bonfires, but nonetheless the fires remained separate, extinguished at different rates, and left separate legacies … there are many attribution-based theories and attribution is better characterized as a field of study rather than a theory.

We see the same dynamics occurring within the field of HR. HR scholars have drawn from different elements of attribution theories and yet we see little inte- gration of the different perspectives. However, the time is ripe to create ‘paths between these various bonfires’ because of the ways in which adaptations of attri- bution theories have evolved in the HR literature. In what follows, we review the literature in this area, followed by a discussion of how to clear the weeds to create paths among them.

Review of attribution theories applied to HRM

For this review, we searched for published articles which use attribution theo- ries to explain HR processes. We used major databases such as Business Source Premier and Science Direct, and examined papers that have been published in major HR and management journals, including: International Journal of Human Resource Management, Human Resource Management Journal, Human Resource Management, Personnel Psychology, Academy of Management Journal, Academy of Management Review, Academy of Management Annals, Journal of Applied Psychology, Journal of Organizational Behavior, Journal of Management, and Organizational Behavior and Human Decision Processes. We also examined all papers that cited either of the two most influential papers that have leveraged attribution theories to understand HR processes (Bowen & Ostroff, 2004; Nishii et al., 2008) to ensure that we identified all relevant papers. We included only empirical papers published in peer reviewed journals. We read each article care- fully to ensure we included only those studies that operationalized one of the established attribution theories. We excluded articles in which one of our selected attribution theories was used only in general terms. Although there is some over- lap between papers that consider HR-related topics with those in management and organizational behavior, we included only papers from these domains that applied attribution theories specifically to HR practices, rather than considering attributional processes in the management domain more broadly. We excluded research on leadership because other scholars have already considered the role of attributions theories in this domain (Martinko, Harvey, & Douglas, 2007). Our search incorporated all articles published or forthcoming as of May 2017.

Our search resulted in 65 papers which are summarized, along with their key features, in Table 1.4 We categorized them into three, broad theoretical perspec- tives. The first group of papers examines individuals’ perceptions of characteristics

98 R. HEWETT ET AL.

of the HR system to explain consistency in how individuals respond to HR prac- tices. This area of research is primarily inspired by the work of Kelley (1973), and later developments by Bowen and Ostroff (2004), who created HRSS theory. We identified 17 papers which examined this theoretical perspective. Of these, 15 specifically tested Bowen and Ostroff ’s model, and the remainder were more broadly inspired by the work of Kelley. The second area represents research pri- marily inspired by the early work of Heider (1958) on internal and external causal attributions and related work by Weiner (1985) on achievement attributions. These theoretical perspectives have been applied to understand individuals’ responses within specific, functional HR practices (FHRA). A total of 36 papers fit into this category, of which the majority examine achievement attributions related to performance management, or occupational health and safety concerns. The final research area is concerned with attributions of intent with respect to HR practices. This research is rooted primarily in Weiner’s (1985) attributional theory, and was most influentially developed in the HR domain by Nishii et al. (2008) who referred to it as HRA. We identified a total of 12 papers in this area, with seven specifically focusing on Nishii and colleagues’ more recent conceptualization.

HR system strength

Bowen and Ostroff ’s (2004) HRSS theory starts with the premise that the rela- tionship between HR and organizational performance is dependent on employees’ shared perceptions about the types of behaviors that the organization expects, values, and rewards. HRSS is a property of the organization, wherein HR practices send clear signals to employees that form the basis of psychological climate per- ceptions. Without a strong HR system, individual-level idiosyncratic perceptions of HR practices drive behavior.

At the center of HRSS theory is Mischel’s (1973) definition of strong situa- tions, which suggests that the influence of individual differences on behavior is thwarted under situations which provide structure and clarity regarding the types of behaviors that a person is expected to perform. Applying this theory to HR implies that the goal for organizations is to create strong HR systems that drive employees’ behavior in intended (i.e. strategic) ways. Bowen and Ostroff drew from Kelley’s work to propose nine meta-features of the HR system, grouped into distinctiveness, consistency, and consensus, that together signify a strong HR system. Specifically, they theorized that higher levels of visibility, understand- ability of the practices, strategic relevance, and legitimacy of authority indicate distinctiveness. Instrumentality, validity of practices, and consistency in messages provide consistency. Finally, consensus emerges when there is agreement among message senders and when practices are fair. These nine features together provide the conditions for a strong HR system.

We begin our review of studies with a discussion of measurement of HRSS, as this provides context in which to interpret research from this area. Next, we

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discuss its correlates. Then, we review evidence on the relative importance of each meta-feature, and conclude with the inter-relatedness of consistency, consensus and distinctiveness.

Measurement Bowen and Ostroff originally suggested that system strength is an organization- al-level variable, which has implications for both shared and individual-level outcomes, including climate (Ostroff & Bowen, 2016). Yet, we find very few stud- ies which have tested HRSS at the organizational- or unit-level. An ideal study design would mirror the work of climate researchers (e.g. Schneider, Salvaggio, & Subirats, 2002) and collect data from numerous groups or organizations to enable multi-level modeling to compare HRSS between groups. Although some research- ers have implied that their multi-level research examines the strength of the HR system (e.g. Stumpf, Doh, & Tymon, 2010; White & Bryson, 2013), multi-level research on the meta-features of distinctiveness, consistency and consensus is largely missing. We found one exception to this; Katou, Budhwar, and Patel (2014) aggregated individual perceptions of system strength to the organizational level across 133 organizations.

The general tendency towards relying on individual perceptions represents a significant limitation of this body of research, in that HRSS has not been compre- hensively tested as it was intended. Treating HRSS as an individual level perception implies that, rather than explaining how HR systems avoid idiosyncratic responses between individuals (Mischel, 1973), it explains variability in how individuals respond. The rest of our review focuses largely on this individual-level research, but conclusions about the value of system strength are limited because these stud- ies do not capture agreement among employees, a defining feature of HRSS theory.

Two self-report scales have been developed to capture employee-level percep- tions of HRSS. First, Delmotte, De Winne, and Sels (2012), rather than confirm- ing Bowen and Ostroff ’s (2004) original nine features, found support for seven. Delmotte and colleagues split justice into procedural and distributive, and failed to find support for the features of legitimacy, understandability, and instrumen- tality. A second scale, developed by Coelho, Cunha, Gomes, and Correia (2015), also failed to support Bowen and Ostroff ’s nine dimensions, instead finding eight. Agreement among decision makers was independent of the other features so it was excluded; therefore, consensus was equated only with fairness, thereby throwing into question whether consensus is different from the well-trodden area of justice. These two papers highlight issues with the psychometric properties of the HRSS construct measured at the individual-level, and might explain why empirical research in this domain has been relatively limited.

Moving beyond capturing only individual level perceptions, scholars have attempted to capture the collective nature of consistency, consensus and distinc- tiveness as originally set forth in HRSS theory. For example, in aiming to tap into consensus, both Sanders, Dorenbosch, and de Reuver (2008) and Guest and

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Conway (2011) examined the extent to which CEOs and HR managers agreed that HR is effective. Similarly, researchers have used indices of within-person agreement about the presence of multiple HR practices to indicate consistency. Sanders et al. (2008), for example, measured consistency as the within-person agreement regarding perceptions of different high commitment HR practices (e.g. ‘In my opinion there are enough training possibilities within the organization’). Likewise, Li, Frenkel, and Sanders (2011) examined climate strength as within-per- son agreement of perceptions of high performance work practices.

Finally, a few studies have explored one or more meta-features using qualitative methods of research. Stanton, Young, Bartram, and Leggat (2010) examined the three meta-features in three hospitals to understand how HR practices are inter- preted by, and operationalized across, different levels of management hierarchy and HR practitioners as an indicator of signal strength. Marchington, Rubery, and Grimshaw (2011) conducted 54 interviews across four multi-employer net- works to examine external influences on the consistency of HR practices operating within a network of firms. In a multiple-case study of health and social service organizations, Piening, Baluch, and Ridder (2014) interviewed HR managers and employees along all three meta-features with the aim of investigating the relation- ship between intended, implemented, and perceived HR practices. Finally, Baluch (2017) examined the three meta-features across eight social service organizations to shed light on the processes by which variations in employee perceptions of HR practices arise. These studies have brought rich insights into how HRSS operates within organizations and the broader contextual influences at play, but were not designed to determine whether organization-level system strength leads to its theorized outcomes, as Bowen and Ostroff ’s theory suggests.

Correlates of system strength Since most research in this area uses both self-report measures and cross-sec- tional designs, we report the correlates, rather than antecedents or consequences, of system strength. Overall, the results present a compelling picture that HRSS, conceptualized as an individual-level perception, is positively associated with desirable attitudes and behaviors.

Studies examining at least one of the meta-features of HRSS have found positive associations with the way that employees feel about their jobs, including work satisfaction, vigor (Li et al., 2011), motivation, commitment, and work engage- ment (Katou et al., 2014). HRSS is also positively related with how employees feel about their organization, including affective commitment (Sanders et al., 2008), organizational identification (Frenkel & Yu, 2011), and is negatively related to intentions to quit (Li et al., 2011). Moreover, HRSS is positively related to desir- able employee behaviors, including improvisation behavior (Rodrigues Ribeiro, Pinto Coelho, & Gomes, 2011), citizenship behavior (Katou et al., 2014), and coworker assistance (Frenkel & Yu, 2011). A positive relationship was also found between HRSS and perceptions of the HR function, including satisfaction with

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HR practices (Delmotte et al., 2012; Gilbert, De Winne, & Sels, 2015), job design (Piening et al., 2014), perceptions of justice in relation to HR practices (Frenkel, Li, & Restubog, 2012), and achievement of HR targets (Hauff, Alewell, & Hansen, 2016). Finally, HRSS has been related to senior management support (Stanton et al., 2010) as well as goal climate quality and strength in relation to management by objectives (Aksoy & Bayazit, 2014).

The only study to our knowledge that has examined the impact of HRSS over time was conducted by Bednall, Sanders, and Runhaar (2014). In a time-lag study, they did not find a significant bivariate relationship between HRSS (self-report measures combining perceptions of the three meta-features) and knowledge shar- ing, innovation, or reflection; however, they did find that HRSS strengthened the relationship between performance appraisal quality and these outcomes.

The relative importance of consensus, consistency and distinctiveness Although research has indicated that there is some agreement between key stake- holders with respect to HR practices (e.g. Guerci & Pedrini, 2014), studies focus- ing on the relationship between consensus and theorized outcomes has failed to support the value of this meta-feature.

Specifically, research has failed to detect significant relationships between consensus and employee performance (Guest & Conway, 2011), affective com- mitment (Sanders et al., 2008), or work satisfaction, vigor and intentions to quit (Li et al., 2011). Although still not universal, the meta-feature of consistency has found relatively more support in the literature. For instance, Sanders et al. (2008) found that consistency was positively related to affective commitment, and Li et al. (2011) found that it was negatively related to intentions to quit, although they did not find an association between consistency and either satisfaction or vigor. Unlike consensus and consistency, distinctiveness has been consistently related to employee outcomes. In research conducted by both Sanders et al. (2008) and Li et al. (2011), distinctiveness was the strongest predictor of target outcomes. Likewise, Aksoy and Bayazit (2014) found that consensus, as well as consistency, did not significantly predict the target outcomes in their study (goal quality and strength) but were significant predictors when mediated by distinctiveness, indicating per- haps that distinctiveness is a higher order dimension. This is perhaps not sur- prising given that classic works on attribution theories state that distinctiveness, or salience of a stimulus, drives attributions (Kelley, 1973; Taylor & Fiske, 1978).

The relationships among consensus, consistency, and distinctiveness Although Bowen and Ostroff (2004) stated that the three meta-features work in concert, there are differences in the level of dimensionality at which the meta-fea- tures have been modelled, which has implications for both theoretical and empir- ical development of the concept. Some research is based on average perceptions of HRSS as a whole (Frenkel & Yu, 2011; Katou et al., 2014; Rodrigues Ribeiro et al., 2011), others distinguish between the three meta-features (Guest & Conway,

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2011; Li et al., 2011; Sanders et al., 2008), and others go further and examine the individual sub-components proposed by Bowen and Ostroff (De Winne, Delmotte, Gilbert, & Sels, 2013; Gilbert et al., 2015; Hauff et al., 2016).

There are several theoretical implications of considering the concept of HRSS at lower levels of dimensionality (i.e. as three or nine dimensions). Firstly, it allows for the detection of differential effects of meta-features with different outcomes. For example, Hauff et al. (2016) found that visibility and intensity predicted deci- sion-makers’ assessment of the achievement of HR targets relating to the availa- bility and effectiveness of people resources, but not to targets relating to employee attitudes. Likewise, De Winne et al. (2013) concluded that different sub-dimen- sions had different relationships with key stakeholders’ perceptions of the role of HR, as defined by Ulrich (1997). Baluch (2017) found that, across multiple case studies, distinctiveness was high, yet consensus and consistency were low, suggesting that a broad overarching measure of HRSS may hide these nuances.

Second, considering the features of HRSS separately allows for the possibility of interactions among strength features. This proposition was tested, to some extent, by Liden and Mitchell (1985) who, drawing on Kelley’s (1973) original theory, examined configurations of the features of consistency, consensus and distinctiveness with respect to performance feedback. In support of Kelley’s the- ory, they found that individuals were more likely to make internal attributions for their performance if there was high consistency, low distinctiveness, and low consensus. Likewise, low consistency, high distinctiveness, and high consensus predicted external attributions. Also in support of Kelley’s original theory, Sanders and Yang (2016) predicted that high ratings on all three characteristics indicated that individuals’ causal attributions were focused on HR practice (the ‘entity’ in Kelley’s theory), and found that a high-high-high configuration strengthened the relationship between high commitment HR practices and affective commitment. This raises the possibility, highlighted by several scholars (Ostroff & Bowen, 2016; Piening et al., 2014), that the meta-features of HRSS may inter-relate, but we are not aware of any research that has empirically tested this proposition.

Summary and directions for future research using HRSS Even though Bowen and Ostroff ’s (2004) model of HRSS has been widely cited – over 2,000 times in 13 years – and was awarded the Academy of Management Review Decade Award in 2014, there is a relatively small body of research that has leveraged it (Ostroff & Bowen, 2016), and it has rarely been tested as it was originally conceived. This suggests that, while the propositions set out have intu- itive appeal to HR scholars, they are difficult to operationalize. This is reflected in the inconsistencies in how the framework is tested and issues relating to the psychometric properties of the measures. These inconsistencies may point to issues with the original theoretical framework, indicating that refinement is needed. Or, they may simply represent a lack of coherent understanding in how the framework should be applied.

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We identified several issues relating to the measurement of the construct. These issues go beyond methodology because they highlight inconsistencies in how HRSS is conceptualized, which has implications for the application of the theory. Although attempts have been made to measure HRSS in different ways, we agree with Ostroff and Bowen (2016) that doing so changes the nature of the construct, and therefore the expected relationships with other key variables. Like Ostroff and Bowen (2016), we notice that given the emphasis on climate in the original theory, it is surprising that very few studies have linked system strength to climate. These authors provided several avenues for future research in this regard, including examining whether HRSS can be ‘too strong’, where high levels of consensus might inhibit creativity, or stifle voice. Future research is also encouraged to verify and extend one of the key, yet untested tenets of HRSS – that consistency, consensus and distinctiveness leads to a shared sense of what the organization values and rewards.

Another important consideration is whether HRSS is a mediator or modera- tor of relationships between the content of HR, and individual or organizational outcomes. Although Bowen and Ostroff (2004) postulated that HRSS mediates HR systems and outcomes, several researchers have explored HRSS instead as a moderator of the relationship between individual perceptions and individual outcomes (e.g. Bednall et al., 2014; Katou et al., 2014; Sanders et al., 2008; Sanders & Yang, 2016). Research that finds a way to theoretically and empirically untangle its mediating versus moderating effect would be worthwhile.

Finally, there are remaining questions about the strategic focus of HRSS. Ostroff and Bowen (2016) stated that their theory focuses on the ways that HRSS enables ‘the creation of a strong organizational climate for a particular strategic focus – for example, service or cost leadership’ (p. 197). However, organizational and HR strategies also vary in the strength of their strategic focus, as well as their orien- tation toward employees. Future research could therefore borrow from existing classification schemes that map high-low strategic focus with high-low employee focus (see Piening et al., 2014) to determine the contextual features associated with, and outcomes of, various types of HR systems.

Functional HR attributions

Attribution theories have been used in the field of HR to explain interpersonal dynamics and attributions of behavior and events within several specific HR func- tional domains. Most of this research has drawn from Heider’s (1958) original conceptions of locus of causality and attributional errors, and Weiner’s (1985) attributional theory, yet some also draws from Kelley’s (1967) covariation model. In this section, we review research on specific functional HR attributions (FHRA) with respect to performance management, grievances and disciplinary action, recruitment and selection, training, and occupational health and safety. It is

104 R. HEWETT ET AL.

noteworthy that the object of attribution here shifts to the behavior of people, rather than to HR systems or practices.

Performance management Numerous studies dating back over 30 years have examined outcomes of achieve- ment-related attributions related to performance evaluation, evidencing the core tenets of Heider’s attribution theory. For example, Dugan (1989) found that man- agers’ evaluations of employee performance were influenced by their attributions of the cause of employees’ performance. Managers held employees responsible for poor performance when managers made internal attributions. Research has also investigated Kelley’s covariation principle in relation to performance attributions, largely finding support for it (Johnston & Kim, 1994).

In distinguishing between internal attributions of effort versus ability, Knowlton and Mitchell (1980) found that when supervisors believed that performance was due to effort, they made more extreme (positive or negative) performance eval- uations. This is important because managers’ attributions about whether poor performance is due to internal or external reasons influences the choice of action to address it. For example, managers responded negatively and gave more criti- cism to employees when they believed performance to be within the employee’s control (Zhang, Reyna, & Huang, 2011). In experimental studies, supervisors took more severe remedial action, targeted at the individual rather than the situation, when they made internal attributions about poor performance (Green & Liden, 1980) and were more likely to make recommendations for changing the work environment to improve performance (rather than focusing on ability or effort) when they made external attributions (Mitchell & Kalb, 1982). Supervisors were also more likely to follow company policy in how to deal with poor performance when they made internal performance attributions (Green & Liden, 1980).

Although the abovementioned research focused on supervisors’ attributions, other research has adopted an employee-centric stance. Here, research has shown that employees’ responses to positive and negative feedback on their performance is determined by the attributions that employees made for the feedback, and whether the source of the feedback is seen as credible (Bannister, 1986). Other research has found that recipients of feedback are more satisfied with the content, source and process of appraisal feedback when the feedback focused on internal attributions, which are therefore within their control (Levy, Cawley, & Foti, 1998), highlighting the self-serving bias. Likewise, Tolli and Schmidt (2008) found that employees reacted more strongly to performance feedback when they made inter- nal attributions about their own performance; when making internal attributions, positive feedback enhanced self-efficacy and goal revision, and negative feed- back diminished these outcomes. Although, somewhat counter to this, Taylor and Pierce (1999) found that individuals’ attributions of blame for lower-than-expected performance ratings (towards their supervisor, the organization, the system, or themselves) had no significant impact on attitudinal outcomes. The role of the

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relationship between supervisor and employee was reinforced in a study that showed that reactions to feedback was moderated by the recipients’ attributions for why the supervisor gave feedback, and the attributions were influenced by the quality of prior relationships (Hempel, 2008).

Grievances and disciplinary decisions Internal versus external attributions have also been explored with respect to employee grievances. For instance, in two field studies, Gordon and Bowlby (1989) found that individuals were more likely to raise a grievance in response to negative events if they believed that the grievance was due to their manager’s personal disposition. Likewise, individuals who attributed the cause of discrim- ination to their manager were more committed to make a legal claim about the action (Groth, Goldman, Gilliland, & Bies, 2002). In a related practice, several studies have applied attributions theories with respect to disciplinary decisions. For example, Trahan and Steiner (1994), in examining disciplinary actions taken against poor performance, found that nursing supervisors made more internal attributions for poor performance if they believed that incidents were more severe, and also if they believed the incident to be consistent with past performance. This is important because, as found in experimental studies with undergraduate students (Cole, 2008) and with HR practitioners and line managers (Klaas & Wheeler, 1990), disciplinary decisions were impacted by whether the perceived reasons for disciplinary problems were internal or external. Likewise, employees’ satisfaction with their supervisor has been found to relate to employee attributions of how supervisors made disciplinary decisions (Arvey, Davis, & Nelson, 1984) indicating that attributions are an important explanation for how both parties make judgements in the disciplinary process.

Selection and recruitment We identified only a handful of studies examining attributions within the context of selection. Tay, Ang, and Van Dyne (2006) examined the moderating role of locus of causality attributions on the relationship between interview success and subsequent self-efficacy for interviewing. They found that successful interview- ees had higher levels of interviewing self-efficacy when they believed that their success was due to internal, versus external, factors. Also examining locus of causality, Thompson, Sikora, Perrewé, and Ferris (2015) studied the attributions made by overqualified job candidates. They found that candidates who made external-uncontrollable attributions (being unemployed due to downsizing) for overqualification were viewed as a poorer fit for the job and less employable by recruiters than candidates who made internal-controllable attributions (greater work-life balance). In an experimental study, Tomlinson and Carnes (2015) found that when job candidates were provided with an external reason for an employer missing an interview appointment, they were more attracted to the organization compared to those who were not provided with a rationale.

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In the context of recruitment, Carless and Waterworth’s (2012) quasi-experi- mental study revealed that experienced recruiters vary their expectations about applicants’ future job performance, responsibility for failure, and hiring recom- mendations according to applicant levels of ability and effort. This supports earlier findings derived from experimental research carried out with a student sample by Tucker and Rowe (1979); they found that hiring decisions were influenced by causal attributions of past performance.

Training We found very few studies on attributions in the context of training that met our selection criteria for this review. Using an experimental design, Quinones (1995) first asked students to perform a relatively complex task. Next, the participants were randomly assigned to either a remedial or advanced training group (which subjects believed was assigned due to their past performance on the task), and they were asked whether their assignment to either the remedial or advanced training group was a matter of luck, effort, task difficulty or ability – drawing on Weiner’s attributional theory. They found that, for those who were assigned to the advanced training program, ability attributions were more strongly related to pre-training self-efficacy, whereas the opposite was true for those in the remedial condition. They concluded that being assigned to a remedial training group was especially detrimental to self-efficacy when people made ability attributions.

Health and safety A small stream of research has examined the role of causal attributions in the field of occupational safety management. A comprehensive summary of this literature is provided in Gyekye’s (2010) review paper, so in this review, we identified only papers published after Gyekye’s review. Gyekye (2010) summarized research that shows a predominance of external attributions by subordinate employees (accident victims and perpetrators) and internal attributions by supervisors (e.g. DeJoy, 1990; Gyekye & Salminen, 2004; Kouabenan, Medina, Gilibert, & Bouzon, 2001). This echoes research on performance appraisals and grievances, and illustrates the actor-observer effect articulated by Heider (1958). Work in this area has since been developed by Mbaye and Kouabenan (2013), whose field study of two industrial companies found that both managers and employees made more internal than external attributions when they had positive perceptions of post-accident analyses.

Another finding of interest is the relationship between accident experience and causal attributions. Research has uncovered a positive correlation between exter- nal attributions and unsafe behavior, and a negative correlation between internal attributions and unsafe behavior (e.g. Gonçalves, da Silva, Lima, & Meliá, 2008; Laughery & Vaubel, 2003; Niza, Silva, & Lima, 2008). This is of relevance within other HR domains in that employees who do not take personal accountability for their actions (e.g. bankers during the recent economic crisis) may make external attributions, and therefore may engage in riskier behavior in future.

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Summary and directions for future research in FHRA Attribution theories have underpinned various studies across FHRA that help scholars to understand how managers and employees attribute their own and each other’s’ behaviors, as well as work-related events. This area of research is mainly found in organizational psychology and management, and tends to use experi- mental methods, rather than the field studies that characterize most micro-HR research. This is problematic from an HR perspective given its applied nature. Future research in FHRA should investigate dynamics in the field with employees and managers to verify and extend these findings.

We also note that most of the research has been carried out in performance appraisals and occupational health and safety, whereas other functional areas such as selection and training have far fewer studies that contribute to our understand- ing of dynamics in these areas. In addition to building upon the functional areas identified in this review, future research should examine other HR functions, for example how employees and managers make attributions in the context of quality circles, work-life balance initiatives, employee monitoring, or assessment centers. Although replication of social psychological studies in an applied setting lends ecological validity to this area, research should go beyond mere replication of social psychological research in an applied context.

Another feature of this body of research is that it emphasizes the role of man- agers in the attribution process. That includes insights about how managers’ own attributions inform their decision-making (e.g. Dugan, 1989; Klaas & Wheeler, 1990; Zhang et al., 2011) and how they spillover to inform employees’ attributions (e.g. Arvey et al., 1984; Groth et al., 2002). The field of HR has been self-critical for neglecting line managers’ responsibility in implementing HR practices (e.g. Becker & Huselid, 2006; Khilji & Wang, 2006; Purcell & Hutchinson, 2007), despite their key role in the HR-performance chain. Nevertheless, this body of research which we label FHRA provides valuable insights into how managers influence the attributional process and outcomes.

Attributions of intent: HRA

Studies in the final cluster of research focus on employees’ attributions of why HR practices – either individually or in bundles – exist. Much of this research is a fusion of Heider’s (1958) attribution theory with Weiner’s (1979) attributional theory as applied to the HR context. As such, this research suggests that the intent behind HR practices can be classified as either internal or external, but also, in alignment with Weiner’s work, advances that there are subdivisions or content areas within internal and external attributions of intent.

The earliest work in this area was conducted by Koys (1988, 1991) who dif- ferentiated between employees’ perceptions of internal intent (i.e. to attract and retain employees) and external intent (i.e. to comply with legislation) of HR activ- ities. Koys (1991) found that managers reported higher levels of organizational

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commitment when they believed that HR practices were implemented for reasons of fairness, whereas legal compliance attributions had no significant relationship with commitment. The relevance of HR attributions to a specific HR practice, namely teamworking, was captured in a qualitative study by Bacon and Blyton (2005). Their analysis revealed that employees attribute teamworking to political, economic, institutional, or cultural factors. They found that economic and polit- ical rationales were viewed negatively because the former emphasizes manager self-interest, and the latter emphasizes shareholders above other stakeholders. Despite these earlier attempts to bring attribution of HR intent to the forefront of HR research, the stimulus that pushed research forward in this field was a study by Nishii et al. (2008), in which they set out HRA.

Nishii et al. (2008) proposed a model which categorizes HR attributions along three dimensions. The first, in line with Heider’s original theory, suggests that employees make internal or external attributions about the intent of HR practices. Internal attributions are those that lie within an organization’s control (to enhance commitment or enforce control) and external attributions are out of the organi- zation’s control (e.g. union or legal compliance). The second dimension focuses on individuals’ perceptions of whether the intended outcomes of the HR practice affects employees positively (encourage wellbeing or performance) or negatively (exploit employees or drive down costs). The third dimension identifies the focus of the practice; attributions of wellbeing and exploitation focus on the individual, whereas attributions of performance or cost saving focus on the organization. External attributions are not expected to be significantly related to the latter two dimensions, because employees see it as outside the organization’s control.

Choice of attributions of organizational intentions In their initial theoretical development, Nishii et al. (2008) identified five explana- tions that employees may make for why HR practices exist: (1) to enhance quality (performance); (2) to improve employee wellbeing; (3) to exploit employees; (4) to reduce costs; and (5) to comply with the union. The results of a confirmatory factor analysis showed that the first two attributions loaded onto one factor, and the second two attributions loaded onto another factor. Hence, Nishii et al. (2008) examined three attributions in their analyses, one that focused on job perfor- mance and wellbeing (labelled ‘commitment’), another on organizational costs and exploitation (‘control’), and a third on complying with union requirements.

Researchers have drawn from these findings in different ways. For instance, Tandung (2016) replicated Nishii et al.’s findings by measuring each attribution, and then, via a factor analysis, confirmed the same factor structure. A different approach was taken by Fontinha, José Chambel, and De Cuyper (2012) and D. Chen and Wang (2014); these authors combined items from Nishii et al.’s per- formance and wellbeing attributions to form a composite ‘commitment-focused’ attribution, and did the same with exploitation and cost items to form a composite ‘control-focused’ attribution measure. Still other researchers have chosen one scale

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from Nishii et al., rather than combining two. For instance, Shantz, Arevshatian, Alfes, and Bailey (2016) measured job performance and cost attributions, while excluding wellbeing, exploitation, and union motives altogether.

Review of empirical research We identified seven empirical studies which have explicitly tested Nishii et al.’s (2008) original conceptualization, focusing almost exclusively on testing theoret- ical outcomes of HRA. It should be noted that, much like the research on HRSS, empirical research in this area is primarily cross-sectional (the exception being Shantz et al., 2016) so conclusions about causality can only be tentative. In their original study, Nishii et al. found that commitment attributions were positively related to commitment and satisfaction, whereas control attributions were neg- atively related to these outcomes; union compliance was not significantly related to either employee attitude. This pattern of findings has been largely supported in later studies, with some nuances.

Fontinha et al. (2012) found that IT consultants who attributed their outsourc- ing organization’s HR practices as commitment-focused were more committed to both the outsourcing organization and host organization; the opposite relationship was found for control-focused attributions. This was replicated and extended by Chen and Wang (2014) who found that perceived organizational support par- tially mediated the relationship between commitment and control focused HRA with turnover intentions and supervisory-rated task performance. Using data collected at two points in time, Shantz et al. (2016) found that when employees perceived that their organization’s HR practices were intended to improve their job performance, they reported higher levels of job involvement and lower levels of emotional exhaustion. Conversely, when they attributed their HR practices to a cost-reduction intent, they experienced work overload which was related to higher levels of emotional exhaustion. Also examining wellbeing outcomes, although through a cross-sectional design, Tandung (2016) found that perfor- mance/wellbeing attributions were negatively related to turnover intentions, whereas exploitation/cost reduction attributions were positively related to it; job satisfaction mediated each relationship.

Making use of a large secondary dataset from Ireland, Valizade, Ogbonnaya, Tregaskis, and Forde (2016) conceptualized commitment-focused attributions as individuals’ perceptions of the strength of the relationship between employee participation practices and outcomes such as job satisfaction (e.g. ‘to what extent do you find committees to be related to your job satisfaction?’). They found that employee perceptions that participation practices lead to job satisfaction was pos- itively associated with several positive outcomes. Although this measure captures individuals’ beliefs about cause-and-effect relationships between participation practices and employee job attitudes, it says little about to what employees attribute the participation practices in the first place.

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These prior studies have almost exclusively focused on the higher order ‘com- mitment-focused’ and ‘control-focused’ attributions. We were unable to find research that distinguished between the focus of the attribution: employee (well- being or exploitation) or organization (performance or cost saving). Although Van De Voorde and Beijer (2015) theoretically discussed the difference between perfor- mance and wellbeing attributions, they operationalized performance attributions as employees’ belief that HR practices are intended, ‘… to get the most work out of employees’. This is akin to Nishii and colleagues’ exploitation attribution with a focus on the employee, and not the organization.

Summary and directions for future research in HRA Although only a relatively recent development, Nishii and colleagues’ study has been highly cited – garnering over 650 citations in the 9 years since it was pub- lished – but only a small number of studies have empirically tested it. From these, there is broad support for the theory in that commitment-focused attributions have generally been associated with positive outcomes, and control-focused attri- butions with negative ones.

There are several notable questions that remain unanswered. For instance, Nishii et al.’s (2008) original study examined the role of external attributions, but this aspect has been overlooked in subsequent studies. Examining external attributions is important because research suggests that they are influential in predicting outcomes (Mitchell & Kalb, 1982). Future research should consider external attributions beyond union or legal compliance, such as an organization’s desire to keep up with their competitors. However, the most important recom- mendation is for researchers to measure the actual intentions behind the HR practices (innovation, team-working, etc.) along with other plausible attributions in the context in which the organization operates.

We also note several questions about the role of mediators between HRA and outcomes. For instance, while some studies (e.g. Chen & Wang, 2014) established the same mediator for commitment and control attributions, Shantz et al. (2016) found different mediation mechanisms. Likewise, prior studies have examined one mediator at a time so whether previously identified mediators (e.g. job involve- ment, job satisfaction) are redundant or provide unique pathways to outcomes is a question for future study.

There is also a dearth of research on antecedents of HRA. Kelley (1973) sug- gested that individuals’ attributions are based on characteristics of the stimulus (i.e. the HR practice), the context of the stimulus, and the person (i.e. individual differ- ences). In the only study to examine an antecedent of HRA, Van De Voorde and Beijer (2015) found that the extent of coverage of high performance work practices predicted performance/exploitation and wellbeing attributions. However, there are likely many other antecedents, including characteristics of the person, such as work experience (Mitchell & Kalb, 1982), or attributional tendencies (e.g. Chao, Cheung, & Wu, 2011; Martinko, Moss, Douglas, & Borkowski, 2007) or features

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of the organization itself, such as its vision, structure or national culture (Chiang & Birtch, 2007).

A final observation refers to the definition and measurement of HRA. For instance, performance attributions were described and measured positively by Nishii et al. (2008) and Shantz et al. (2016), yet negatively by Van De Voorde and Beijer (2015). Future research should make clear how the theory and measurement of attributions fits within the constellation of existing theory and measurement, as HRA research takes flight.

Clearing the paths

A central aim of this paper is to ‘clear the paths’ between the three research streams – HRSS, FHRA, and HRA – that have applied attribution theories in different ways to HR scholarship. These three theories differ in several ways. First, they draw from different strands of attribution theories, whereby HRSS has drawn primarily from Kelley, FHRA from Heider, and HRA from Weiner. Second, they differ in the level of analysis. Whereas HRSS focuses on the organizational level of analysis, FHRA tends to focus on between-person variability in perceptions, and HRA has the capability to do both. They also differ in object, or the emphasis on what causes an effect. HRSS focuses on the meta-features of HR practices, FHRA focuses on the attributions made by managers and employees of one another and events, and HRA focuses on employees’ attributions of the HR practices. Although there have been calls to bring some of these theories together, most notably, HRSS and HRA (Ostroff & Bowen, 2016; Nishii et al., 2008; Malik & Singh, 2014), there have been few attempts to articulate how the three frameworks may interrelate. In this section, we make a preliminary attempt to explore some pathways between the perspectives. In doing so, we make suggestions in the hope to inspire future research to think creatively about finding synergies between and among them.

In bringing two or more of these frameworks together in a synergistic model, researchers should recognize several theoretical parameters. Firstly, HRSS must be conceptualized as it was originally intended – as a shared perception of system strength at the unit or organizational level. Should research continue to operation- alize system strength at the individual-level of analysis, then it must be based on homologous arguments between levels of analysis (Chen, Bliese, & Mathieu, 2005). Secondly, a model should recognize that there is variability in how individuals perceive and respond to HR practices (Nishii & Wright, 2008), while at the same time recognizing the possibility that shared perceptions can arise with sufficient within-unit agreement.5 The second parameter implies the third: that a strong system can be either positive or negative from the perspective of both employ- ees and/or the organization, and that these may be incompatible (Ehrnrooth & Björkman, 2012; Nishii et al., 2008). We also suggest that there are two notable omissions in HRSS and HRA which are evidenced in FHRA; the content of HR practices is relatively neglected, and so is the role of the line manager. It is these

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insights that we take from FHRA to inform our ideas on clearing pathways among the three theories. Below we describe three possible pathways among these frame- works, thereby inspiring research to examine FHRA in tandem with HRSS and/ or HRA theories.

Pathway 1: synergies between HRSS and HR attributions

Firstly, the relationship between HRSS and HRA might be interactive. For instance, group level perceptions of system strength might interact with individual level HR attributions to explain individuals’ perceptions of HR practices. This possibility was implied by Nishii et al. (2008) who suggested that although employees may agree about the climate (e.g. whether a strong HR system exists) they may disagree about why HR practices are in place. Bowen and Ostroff (2004) suggested that HRSS provides information to employees about which behaviors are expected, accepted and rewarded by HR practices. In this way, a stronger HR system pre- dicts positive outcomes on the basis that HR practices are intended to be benefi- cial to the individual and/or the organization. However, as Nishii and colleagues implied, it is possible for a strong system to have positive or negative consequences, depending on the message that is conveyed. An interaction between group-level perceptions of HRSS and individual-level HRA could explain why individuals’ per- ceptions vary from the intended messages conveyed by the practice. For example, a strong HR system might positively predict organizational performance because it clearly conveys information about desired behavior. However, some individuals within the organization who believe that the HR practices are in place to exploit them might respond by withholding performance. In this case, the HR system still predicts attitudinal outcomes, because it is strong, but individuals respond in different ways based on their evaluation of the system.

A second possibility is that HRSS moderates the relationship between shared HRA and group-level outcomes. Nishii et al. (2008) demonstrated that individu- al-level HRA predicted organizational commitment which, when shared, is asso- ciated with unit-level helping behavior and customer satisfaction. Although not addressed by Nishii and colleagues, it is also theoretically and empirically plausible that individuals’ attributions can also be shared, to form collective attributions which therefore explain group-level outcomes (Martinko et al., 2011). Drawing on HRSS theory, which explains the consistency in how practices are perceived within groups, this suggests that system strength moderates the relationship between shared HRA and collective attitudinal and behavioral responses, such that this relationship is stronger under a strong system. In other words, this model would explain consistency in reactions to HR practices.

These are only two possible theoretical models among many that can be explored to bring these two theories together. However, any model that identifies this synergy will share common features. For instance, these models recognize that HRSS and HRA operate on different levels so any relationship between the

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two constructs requires cross-level relationships between individual and group. Likewise, the two processes proposed above explain, respectively, consistency and variability in how individuals respond to HR practices. It may therefore be possible that these two cross-level interactions occur simultaneously.

In bringing HRA and HRSS together, there is also an opportunity for research- ers to identify a potential ‘dark’ side of HRSS. Although Ostroff and Bowen (2016) stated that their model is intended to be strategy-specific (e.g. practices driving a strategy for innovation, or for safety), their work sidelines the reality that in some cases, strong systems can be perceived by employees as controlling, thereby pre- dicting negative employee outcomes. For instance, Gilbert et al. (2015) suggested that in the case of a strong system, individuals might attribute an exploitative intent for the practice. They proposed that a strong system could undermine line managers’ sense of autonomy (and therefore intrinsic motivation), and be seen as a demand, with negative consequences. Likewise, Ehrnrooth and Björkman (2012) suggested that when HR systems are working ‘well’ (i.e. strongly) they promote work intensification. In their empirical study, they found that HRSS indirectly predicted higher workload via empowerment. A strong system overall might therefore have beneficial implications for some employees, and not others, allowing the possibility to incorporate other HR theories about strategic fit (e.g. Lepak & Snell, 1999; Schneider, Goldstein, & Smith, 1995). This is a fruitful line of enquiry that requires further investigation.

Pathway 2: process attributions relating to specific HR functions

Most research has adopted the frameworks of HRSS and HRA as intended, in that they examine attributional processes relating to the HR system as a whole (Bowen & Ostroff, 2004; Nishii et al., 2008). Although this strategic, system-level perspective explains how individuals process information about the HR system, it fails to offer insight about the design or implementation of individual practices (Piening et al., 2014). For example, common measures examining the HR sys- tem, or bundles of HR practices, simply take the average of employees’ views of whether several HR practices are in place (e.g. ‘training is provided to employees regularly’; Den Hartog, Boon, Verburg, & Croon, 2013) or if employees are sat- isfied with them (‘Is my performance appraisal fair and accurate?’; Alfes, Shantz, & Truss, 2012). This assumes that employees view HR practices in the same way when, in fact, not all employees are privy to all HR practices, and/or employees may view, for example, selection practices quite differently than appraisal. Indeed, there is empirical evidence to suggest that there is within-person variability in how employees view individual HR practices (e.g. Kinnie, Hutchinson, Purcell, Rayton, & Swart, 2005).

Here we see the potential for synergy between FHRA – which has provided insight about attributions related to specific characteristics of individual HR functions – and HRSS and HRA, which explain how and why individuals make

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Table 2. suggestions for future research.

Research focus Suggested research questions Selected methodological and other

choices

Within stream

hr system strength (hrss)

• (how) does organizational culture mediate the relationship between hrss and desirable outcomes?

• can hrss be ‘too strong’? Is there a ‘dark’ side to hrss?

• under what conditions do consistency, consen- sus and distinctiveness lead to a shared sense of what the organization values and rewards?

• multi-level and mixed methods to study culture

• experimental studies to examine the conditions of shared perceptions

• see ostroff and Bowen (2016) for more suggestions for future research

functional hr attributions (fhra)

• how might attribution theories help us to explain dynamics in other specific hr functional areas (e.g. work-life balance initiatives, quality circles, and employee monitoring)?

• how do attributions of hr practices change over time?

• are there certain sequential activities of specific hr practices which might predict attributions (e.g. annual performance appraisal)?

• field studies, including survey meth- odology, to strengthen ecological validity

• capitalize on natural events by conducting field experiments

• extend attribution theories, rather than merely apply them

hr attributions (hra)

• What mediates the relationship between hr attributions and employee outcomes?

• What leads to hr attributions? • Do some external attributions matter more than

internal ones?

• When designing scales for survey research, include the attribution of what the sample organization intends (what is their actual strategic focus)?

• ensure consistency in measurement of attributions

• Qualitative research to explore attri- butions specific to different contexts and organizations

Pathways

Pathway 1 – Syn- ergies between HR System Strength and HR Attributions

• (how) do group level hrss interact with individ- ual hra to explain individuals’ perceptions of hr practices?

• Do shared hra predict group-level outcomes, and is this moderated by hrss?

• are these processes simultaneous, explaining both group and individual outcomes?

• multi-level and mixed methods to capture within and between group effects

• longitudinal survey methods to test causality

• Qualitative research to explore how processes unfold

Pathway 2 – Process attribu- tions relating to specific HR functions

• how do individuals’ hra across different hr practices interact? (e.g. can positive attributions about talent management policies mitigate against negative attributions of performance appraisal?)

• how do attributions of specific hr practices influence individuals’ attributions of the practice in general?

• Does the strength of specific hr practices have a greater influence on overall impressions of hr system strength?

• multi-level methods to capture per- ceptions nested within practices

• measurement scales to allow for more detailed examination of attri- butions related to specific practices, or different aspects of practices

Pathway 3 – The role of manag- ers in forming HR attributions

• Do managers’ attributions spillover to employees’ attributions? What moderates this process?

• Is consensus of hr attributions amongst deci- sion-makers (e.g. line managers, hr profession- als, senior managers) necessary for a system to be strong?

• To what extent do individuals’ attributions about hr practices shape manager behaviors?

• multi-level methods to capture simultaneous employee–manager and manager–employee spillover of attributions

• Qualitative research to explore the role of different decision-makers in shaping perceptions of consensus

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attributions about HR practices. Whereas past HRA research has averaged employ- ees’ attributions of several HR practices (performance appraisal, development opportunities etc.), future research could untangle the HR practices to allow for variability in the attributions that individuals make about specific practices (e.g. ‘I believe that the reward policy is to cut costs, but that training practices are to help me to perform to my best’). Doing so enables a more detailed examination of how attributions interact between practices. For example, if competitive rewards pre- dict negative behavioral attributions towards teammates (Ferrin & Dirks, 2003), might this be mitigated by training and development believed to foster team cohesion? Although it was possible to examine interactions between attributions in most of the studies we reviewed given their approaches to measurement, it has yet to be explored in research.

Likewise, by focusing on the content of HR practices, as in FHRA research, it is possible to provide more nuance about how individuals make specific HR attribu- tions about individual practices. In the context of recruitment, for instance, future research might examine the attributions job seekers make of corporate social responsibility initiatives that feature in many job advertisements. Organizations that promote their socially responsible practices may be perceived positively or cynically by job seekers. These perceptions may be influenced by job seekers’ perceptions of its distinctiveness (whether it features heavily in the job descrip- tion), consensus (whether the company is known for being socially responsible), and consistency (whether the organization has a history of being involved in the community). This is aligned with research that shows that attributions matter in this context; Gatignon-Turnau and Mignonac (2015) found that public relations attributions undermine the positive relationship between employee perceptions of the corporate volunteering program and their perceptions of the organization’s prosocial identity.

Future research should also investigate other specific HR practices. Malik and Singh (2014) made a start in their development of a theoretical model of attribu- tions in the context of talent management. In line with the self-serving bias, they theorized that individuals selected into talent management programs attribute the organization’s motives for the program differently from unselected employees. Future research is needed to test and extend their model. Other HR practices that have yet to be investigated include elements of job design, including job rotation and international assignments. Family-friendly workplace practices may also exert different effects depending on whether employees attribute them to internal (the company cares about its employees) versus external (the company is audited for gender balance) reasons. This potential synergy between attributions relating to process (HRA and HRSS) and those focused on content (FHRA) could therefore explain more about the relationship between the implementation of HR practices and employees’ perceptions, which is sorely needed (Piening et al., 2014).

To facilitate this future research, scholars need to move away from the gen- eral measures used in prior studies. We suggest that future research considers in

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more detail the characteristics of the implemented HR practices in the sample organization, which would allow a more fine-grained look at specific HR prac- tices. For instance, rather than asking about training in general, questions could be asked about specific type and content of training programs that are offered in the organization.

Pathway 3: the role of managers in forming HR attributions

Managers play an important part in implementing HR practices (Purcell & Hutchinson, 2007), and there is evidence that manager perceptions of practices influence those of their employees (Den Hartog et al., 2013). The role of line man- agers in HRSS has been positioned differently by scholars. In its original concep- tion, HRSS recognizes managers in part through the concept of consensus among key decision-makers. Alternatively, Gilbert et al. (2015) suggested that a strong HR system precedes line manager behavior, rather than being partly indicative of it. In HRA there is no explicit recognition of the role of managers, although it is likely that managers play an important role in shaping the messages provided by the HR practices to inform attributions of intent (Piening et al., 2014). However, neither theory explicitly discusses the role of manager behaviors or attitudes in the HR attributional process. We therefore suggest that there are several ways in which future research, drawing on the FHRA perspective, could integrate line managers more comprehensively into the attributional process.

First, we know from FHRA research that the framing of HR practices – for example in Quinones’s (1995) research presenting a training intervention as devel- opment or remedial – influences individuals’ attributions and responses to HR practices (see also Cole, 2008). Line managers play an important part in whether HR practices are in fact implemented, and the quality of their implementation (Guest & Bos-Nehles, 2013; Woodrow & Guest, 2014). As part of this, the way that they communicate HR practices to employees informs the signals provided by the practices (Alvesson & Kärreman, 2007; Den Hartog et al., 2013). Therefore, it stands to reason that the message of intent communicated by managers influ- ences employees’ perceptions of the reason for said practice (HRA), and that this would be particularly the case when communication was consistent (HRSS). Line managers also make idiosyncratic attributions of HR practices which likely differ from, and precede, their employees’ attributions of the same HR practice, thus implying that managers’ attributions of HR practices spill over and influence employees’ attributions. This step in the process between line manager imple- mentation and employee reactions to HR practices has yet to be recognized, but is supported by evidence that managers’ attributions influence the attitudes and behaviors of their employees (e.g. Knowlton & Mitchell, 1980). Future research should therefore examine the relationship and potential spillover of line manager to employee attributions of individual and bundled HR practices.

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Likewise, there is some evidence that individuals’ attributions of intent are influenced by their evaluations (i.e. fairness, positive appraisals) of both their manager and HR practices. For example, Greenberg (2003) found that when per- formance-pay practices were particularly salient (i.e. strong), individuals were more likely to attribute fairness to the practice, rather than their manager. This was supported by Korsgaard, Brodt, and Whitener (2002), who found that employees were less likely to attribute negative encounters to their manager when HR prac- tices themselves were perceived to be unfair. This suggests that manager behav- iors and HR practices go hand in hand in influencing individuals’ attributions of said practices. A synergistic model of HR attributions could therefore recognize both the strength of the system, and the attributions of intent that the manager communicates in shaping individuals’ own attributions, attitudes and behaviors in response to the practice.

Methodological issues

There are some significant limitations regarding the methods employed in prior studies across the three domains of research we identified. One obvious finding is the dominance of survey and experimental methods of design over qualitative ones. Qualitative research can be employed to produce rich insights into the nature of relationships between the various constructs of interest, as well as to investigate the influences of wider social, political, and economic factors. Questions requiring a qualitative methodology that will develop research in this area include: What is the nature of the interplay between perceptions of HR practices and attributions? How does the relationship between individual HR attributions and shared percep- tions of HR systems lead to desired outcomes? What configurations of attributions are associated with strong or weak HR practices? What is the role of different levels of managers (senior versus line) in influencing employee attributions and how do these interact with managers’ role in promoting strong HR practices?

Turning to quantitative research, consistent with common criticisms of research on the HR–performance link (Paauwe, 2009; Wright & Ulrich, 2017), most of the studies highlighted in our review are cross-sectional. This is particularly the case for research under the auspices of HRSS and HRA. While this research is largely field-based and is therefore ecologically valid, its cross-sectional nature raises con- cerns about causal ordering between antecedents and outcomes. FHRA research, on the other hand, shows significant strengths in testing causal models in that it is based largely on experimental data. However, much of this research was conducted in a laboratory, so the extent to which the findings generalize to ‘the real world’ remains unclear. Likewise, the reliance on self-reported data also raises concerns related to response biases such as social desirability and common-method bias (Podsakoff, MacKenzie, & Podsakoff, 2012). Although a sub-section of this body of research has sought self-reported data from multiple sources (e.g. manager

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and employees), there is arguably a wealth of objective data available which could verify and extend research in this area.

We therefore suggest that future research would benefit from more methodo- logical rigor. In particular, longitudinal field-research and field experiments would provide a more robust test of causal chains, and fit more closely with Weiner’s (1979, 1985) conceptualization that attributions are time dependent in that they are predicted to occur after the event of observation. Likewise, the two distinct quantitative approaches – field-based surveys and lab-based experiments – could learn from each other. Field-based experiments would enable scholars to test causal links and therefore help develop these theoretical domains. Qualitative research would likewise enable further development of attribution theory as applied to HR scholarship, which despite high numbers of citations of some seminal studies (Bowen & Ostroff, 2004; Nishii et al., 2008), still requires empirical refinement.

Concluding remarks

This paper synthesizes and draws insights from HR research that has been informed by attribution theories developed in social psychology. An analysis of 65 papers revealed that attribution theories have much to say about HR-related issues. Through our review, we make several important contributions to HR schol- arly work. First, we highlight three streams of research that are rooted in different strands of attribution theories – HRSS, FHRA and HRA. Although attributions theories are a mainstay of social psychology, with a deep and rich history, they have only recently been fully leveraged by HR scholars. Even those well versed in HR theory are likely confused by different uses of attribution theories in HR research, and so this paper clarifies the history and explains the variety in the approaches used in HR scholarship. Second, like other review papers, it is only through bringing together extant literature that we can see patterns of findings and omissions of work that can direct future research. For each stream of research, we identified several future directions for research, and provided suggestions regarding methodology and other research choices. Some of our ideas for ‘what’s next?’ within each stream are summarized in the top half of Table 2. Third, our synthesis revealed that, despite their shared theoretical foundations, the three research streams rarely inform or inspire one another. We highlight several theo- retical propositions and future research questions that may help to ‘clear the paths’ among these currently disparate bodies of research. We have discussed potential avenues for future research throughout our review, and inspired by this we also provide some potential research questions and methodological considerations in the bottom half of Table 2. These all arise directly from our review and, although Table 2 does not provide an exhaustive list, we hope these questions stimulate future research to explore and expand on our proposed pathways.

Finally, this review has several implications for practice, both with respect to how attributions are formed and the outcomes of these attributions. Firstly,

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attributions-based perspectives suggest that strategic HR leaders must ensure that they have a clear picture of what the constellation of HR practices are intended to achieve, and whether the message that they convey is ‘strong’ and therefore clearly understood. This means that HR leaders need to understand how the system of HR practices is interpreted by both line managers who implement them, and employees as end-users, because intentions do not necessarily translate as antic- ipated. In practice, this requires a clear communication plan to ensure that con- sistent messages about the purpose of policies and procedures are received by line managers, and therefore relayed to employees through implementation. If there is misalignment between strategic intentions and how practices are interpreted, then HR leaders would be wise to investigate line manager and employee attributions for HR practices – asking ‘why do you think these HR practices exist in the first place?’ Furthermore, we know that how HR practices are perceived is likely to predict different responses from employees. This further contributes to the need to train managers in how to frame conversations about HR practices, to ensure that messages are consistent both with the intention of the practice, and framed in ways to engender positive attitudes. Likewise, the evidence that attributions can cause biases in decision-making from the manager’s perspective implies the need to train line managers in the impact of these biases. This is to ensure that managers get a ‘complete’ picture on which to base people-related decisions. Together, our conclusions and suggestions for future research therefore have implications both for scholarship and for practice. We hope that this review inspires new avenues of research on HR-related attributions, which have far reaching implications for the design and implementation of HR practices, and the impact of practices on individuals and organizations.

Notes

1. For readers interested in other attribution theories, Schachter’s (1964) theory of emotional ability, Bem’s (1967, 1972) self-perception theory, and Jones and Davis’ (1965) correspondence inference theory, may prove fruitful as the application of attribution theories to HR theory advances.

2. When a person lacks clear information about an event or behavior, they fall back on causal schemas, defined as ‘a general conception the person has about how certain kinds of causes interact to produce a specific kind of effect’ (Kelley, 1973, p. 151).

3. Despite the seemingly high cognitive effort involved in the covariation process, Kelley argued that people do not engage in extensive assembling of information as seemingly required by covariation analysis. Instead, people construct cause and effect patterns that enable them to make causal inferences relatively quickly.

4. Not all 65 papers are discussed in the body of the paper. Our review aimed to draw out the key insights so papers offering similar perspectives or conclusions are not always discussed.

5. Although Malik and Singh (2014) brought together HRSS and HRA in a theoretical framework to explain how employees respond to talent management programs, their theoretical model failed to account for variation in individual perceptions.

120 R. HEWETT ET AL.

Disclosure statement

No potential conflict of interest was reported by the authors.

ORCID

Rebecca Hewett   http://orcid.org/0000-0002-4340-3817

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  • Abstract
  • Introduction
  • Attribution theories: a historical review
    • Heider’s attribution theory
    • Kelley’s attribution theory
    • Weiner’s attributional theory
  • Review of attribution theories applied to HRM
    • HR system strength
      • Measurement
      • Correlates of system strength
      • The relative importance of consensus, consistency and distinctiveness
      • The relationships among consensus, consistency, and distinctiveness
      • Summary and directions for future research using HRSS
    • Functional HR attributions
      • Performance management
      • Grievances and disciplinary decisions
      • Selection and recruitment
      • Training
      • Health and safety
      • Summary and directions for future research in FHRA
    • Attributions of intent: HRA
      • Choice of attributions of organizational intentions
      • Review of empirical research
      • Summary and directions for future research in HRA
  • Clearing the paths
    • Pathway 1: synergies between HRSS and HR attributions
    • Pathway 2: process attributions relating to specific HR functions
    • Pathway 3: the role of managers in forming HR attributions
    • Methodological issues
  • Concluding remarks
  • Notes
  • Disclosure statement
  • References

Papers related to hotel employee perceptions/Paper 800.pdf

On being warm and friendly: the effect of socially responsible human resourcemanagement on employee fears of the threats of COVID-19

Jie He School of Business, Hunan Institute for Innovation and Development,

Hunan University of Science and Technology, Xiangtan, China

Yan Mao School of Tourism and Hospitality Management, Hubei University of Economics, Wuhan, China

Alastair M. Morrison International College, National Kaohsiung University of Hospitality and Tourism,

Kaohsiung City, Taiwan, and

J. Andres Coca-Stefaniak Department of Marketing, Events and Tourism, Business School,

University of Greenwich, London, UK

Abstract Purpose – This paper aims to investigate the influence of socially- responsible human resource management (SRHRM) on employee fears of external threats during the COVID-19 outbreak, based on social support and event system theories. COVID-19 caused sharp profit declines and bankruptcies of hotels, restaurants and travel agencies. In addition, employees faced threats to their health and job security. How to overcome employee anxieties and fears about the negative impacts of this crisis and promote psychological recovery is worthy of attention from researchers and practitioners. This research investigated the impacts of SRHRM on employee fears through organizational trust, with the COVID-19 pandemic playing a moderating role between SRHRM and employee fears. Design/methodology/approach – The hypotheses were tested through multiple linear regression analysis based on a survey of 408 employees in hospitality and tourism firms in China. Qualitative data were also gathered through interviews with selected managers. Findings – The results showed that SRHRM had a negative influence on employee fears of external threats by enhancing trust in their organizations. In addition, the strength of the COVID-19 pandemic positively moderated the effect of SRHRM on employee fears. When the pandemic strength was more robust, the negative effects of SRHRM on employee fears were more significant. Research limitations/implications – This research illustrated the contribution of SRHRM in overcoming employee fears of external threats in the context of COVID-19. It shed light on the organizational contribution of SRHRM to hospitality and tourism employee psychological recovery during the crisis. Originality/value – This research explored strategic HRM by examining the effects of SRHRM on employee fears in the midst of a severe crisis, specifically COVID-19. The moderation effect of event strength

This research is supported by China Scholarship Council, Hunan Educational Department Fund (18B227), Scientific Research Cultivation Project of HBUE (No. PYYB201907).

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Received 14April 2020 Revised 27 June 2020 28 August 2020 4 November 2020 Accepted 5 November 2020

International Journal of Contemporary Hospitality Management Vol. 33 No. 1, 2021 pp. 346-366 © EmeraldPublishingLimited 0959-6119 DOI 10.1108/IJCHM-04-2020-0300

The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/0959-6119.htm

andmediation effect of organizational trust were tested. It is of great value for hospitality and tourism firms to foster employee psychological recovery during a crisis such as COVID-19.

Keywords Organizational trust, Socially responsible HRM (SRHRM), Event system theory, COVID-19 event strength, Fear of external threats, Social support theory

Paper type Research paper

1. Introduction Employee fears of external threats represent negative psychological emotions involving uncertainty or danger resulting from undesirable events or harm from outside of the organization (Lebel, 2016). It is acknowledged that the COVID-19 pandemic broke out in China and spread worldwide, leading to profit declines and bankruptcies among hotels, restaurants and travel agencies. Compared to other industries, lockdown and social distancing policies directly caused steep declines in hospitality and tourism, because the sector relies on population mobility and personal service provided by employees (Yang et al., 2020). Hundreds of thousands of employees in hospitality and tourism companies faced threats to their health and job security because of the uncertainty and threat of loss brought by COVID-19, includingmajor hotel chains such asMarriott and Hyatt.

Evidence shows that fear of external threats leads to employee silence in organizations (Kish-Gephart et al., 2009), reduces creativity (Deng et al., 2019) and damages employee well- being, performance and organizational citizenship behavior (Raja et al., 2020). Therefore, overcoming employee anxiety and fear in the wake of the disastrous outcomes of COVID-19 and promoting employee psychological recovery drew significant attention from hospitality and tourism scholars and practitioners (Zenker and Kock, 2020).

To date, most research concerns the outcomes of employee fear (Kish-Gephart et al., 2009; Raja et al., 2020). However, the antecedents of employee fear seemingly have been neglected. It is acknowledged that human resource management (HRM) practices have a direct impact on employee psychological states, emotions, attitudes and behaviors in the hospitality and tourism industry (Kloutsiniotis and Mihail, 2020; Madera et al., 2017; Sun et al., 2007). Specifically, the role of socially responsible HRM (SRHRM) is highlighted during crisis situations.

SRHRM emphasizes a bundle of practices aimed at improving employee socially responsible capabilities, motivations and opportunities, often with humanitarian objectives and benefits (Shen and Benson, 2016; Shen and Zhang, 2019). SRHRM involves recruiting and retaining employees with a sense of social responsibility, providing CSR training and assessing employee social responsibility in performance appraisals, compensation and promotions (Zhao et al., 2019). For example, hotels and travel agencies trained and rewarded employees involved in socially responsible work during COVID-19 for receiving hospital medical staff, assisting community residents, providing transfer services and voluntarily working in cabin hospitals. These practices could significantly impact employee perceptions (Shen and Zhang, 2019).

However, most previous research focuses on the relationship between SRHRM and employee attitudes and behaviors under normal operational conditions (Jia et al., 2019; Shen and Benson, 2016; Shen and Zhang, 2019; Zhao et al., 2019). With the outbreak and spread of COVID-19, the pandemic caused hospitality and tourism companies to assume greater social responsibility and deal with relieving employee fears.

The impacts of SRHRM on employee fears of external threats need greater and more in- depth exploration. Generally, SRHRM affects employee attitudes and behaviors through organizational identity or social exchange (Newman et al., 2016; Jia et al., 2019). The effects

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of SRHRM practices during COVID-19 may differ from HRM under normal circumstances. It is possible that SRHRM influences employee emotions and fears in other ways during a major crisis.

This research set out to investigate the social and psychological processes of how SRHRM influenced employee fears of threats through social support theory (Cohen and Wills, 1985; Hobfoll et al., 1990). This theory refers to the supporting and helping actions from government, society, organizations, family and friends, and it is essential in promoting well-being and reducing stress (Hobfoll, 2001). COVID-19 necessitated HRM intervention through demonstrating social responsibility because government agencies were not always reliable and available while individual power was weak (Watkins et al., 2015). Therefore, HRM had to assume greater social responsibility, and this is especially required during a major crisis (Voegtlin and Greenwood, 2016).

According to social support theory, SRHRM is an important source impacting employees and organizational resources that may transform into individual resources through employee perceptions (Hobfoll et al., 2018). In this process, staff perceptions of organizational trust might mediate the effects of SRHRM in assisting employees to overcome fears of external threats when experiencing economic and social dissonance.

Organizational trust is defined as the willingness to believe in an organization and have confidence of its benevolence and capabilities (Gould-Williams, 2003; Jia et al., 2019). Organizational trust usually links HRM and employee attitudes as a mediating mechanism in the hospitality and tourism industry (Kloutsiniotis and Mihail, 2020). SRHRM represents organizational benevolence with respect to employees that improves their feelings, perceptions and attitudes (Alfes et al., 2013; Jia et al., 2019). SRHRM can promote organizational trust as a result of providing care and support to employees, protecting individual resources and reducing negative emotions such as fear (Halbesleben et al., 2014). It is proposed in applying social support theory that SRHRM is negatively related to employee fears of external threats.

Furthermore, the environment plays a role that influences the effectiveness of SRHRM, as it did with COVID-19. Based on an open systems view, organizations are not isolated islands; they are in systems impacted by external and internal environments. The environment and social resources interactively affect individual resources (Hobfoll et al., 1990; Hobfoll et al., 2018). Event system theory (EST) suggests their occurrence impacts feelings, thoughts and behaviors of actors (Morgeson et al., 2015). Events such as the COVID-19 crisis present complex environments involving novelty (event is varied and is an unexpected or new phenomenon), disruption (event changes normal, day-to-day activities) and criticality (event is important, essential and a priority) (Morgeson et al., 2015).

COVID-19 has been disruptive and critical to the hospitality and tourism industry, and its unexpectedness caused widespread, sharp performance decreases in the industry in which employees faced layoffs or job losses. It brought unprecedented challenges for hospitality and tourism HRM practices to embrace social responsibility and demonstrate compassion andwarmth for employees.

Unfortunately, the impacts of SRHRM on employee fears when faced with extreme dangers and uncertainty, such as during the COVID-19 pandemic, remain conceptually and empirically unexplored. Employee fears of external threats are psychological states or feelings of uncertainty and danger as a result of undesirable events (Lebel, 2016). Therefore, this research analyzed the moderating effect of the event strength of COVID-19 on the relationship between SRHRM and employee fears.

This research was aimed at making three contributions to the literature. First, it determined the effects of SRHRM on employee fears of external threats during COVID-19,

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thereby enriching the strategic HRM research in crisis situations. Second, it shed light on how SRHRM helped to overcome employee fears of external threats through enhanced organizational trust based on social support theory. In doing so, it explored the underlying mechanisms of impacts of SRHRM on employee fears. Third, it examined the moderating effects of the event strength of COVID-19 on the relationship between SRHRM and employee fears, and expanded the boundary conditions of SRHRM. The research conceptual model is shown in Figure 1.

2. Literature review and hypotheses 2.1 Socially responsible human resource management and organizational trust Trust is mutual confidence in another party’s capabilities and actions, including the perception of the benevolence and dependability of the other party (Mayer et al., 1995). Based on the perspective proposed by Gould-Williams (2003), organizational trust refers to employee beliefs about the capabilities, benevolence and predictability of the organization. Employees are willing to trust an organization when they have faith or confidence in its capabilities and benevolence, and the belief that the organization will not damage their interests or withhold benefits (Jia et al., 2019; Schuh et al., 2018).

It is reasonable to suggest that SRHRM may help in augmenting organizational trust. First, SRHRM practices promote employee trust motivation (Collins and Smith, 2006; Jiang et al., 2012). SRHRM may enhance organizational trust through incentives, compensation and promotions for social contributions (Shen and Zhu, 2011; Waring and Lewer, 2004). Specifically, companies can consider employee social performance in rewards and compensation, promotion and performance appraisals; this tends to increase employee willingness to believe that the company supports socially responsible behaviors and cares about employee benefits (Jia et al., 2019; Salas-Vallina et al., 2020).

Second, SRHRM practices improve employee trust through enhanced capabilities (Bombiak and Marciniuk-Kluska, 2019; Jiang et al., 2012). For example, training to position CSR as a core organizational value and matching personal identity with CSR identity in recruitment and selection encourage employees to have confidence in the benevolence and CSR abilities of organizations (Archimi et al., 2018). Therefore, the first hypothesis was proposed as follows:

H1. There is a positive relationship between SRHRM and organizational trust.

2.2 Organizational trust and employee fears of external threats Employee fears of external threats represent negative psychological assessments of dangers at work resulting from uncertainty and hazards (De Clercq, et al., 2017; Lebel, 2016). Uncertain and changeable environments produce challenges for organizations, leading to

Figure 1. Conceptual model

Socially-responsible HRM (SRHRM)

Fears of external threats

Organizational trust

Event strength of COVID-19

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employee fears of financial risks and job security threats. COVID-19 introduced high levels of unpredictability and peril for hospitality and tourism companies and their staff, including canceled bookings and the closure of tourist attractions. As a result, employees faced losing jobs, deep pay cuts and the ever-present danger of viral infection. Under these unusual circumstances, it was paramount to build greater levels of trust between organizations and employees to overcome the fears and anxiety.

Organizational trust plays a crucial role in overcoming employee fears of external threats. First, enhanced organizational trust encourages employees to have greater belief that companies can and will provide support and help to them to overcome their struggles emanating from COVID-19 and reduce fears of threats. Second, greater recognition of organizational benevolence makes staff feel that companies are prioritizing benefits to employees, and having such positive feelings about companies, can decrease fears of job losses (Xu et al., 2016). Third, trust in organizational capabilities and benevolence increases confidence that companies and staff share common visions and targets in uncertain situations.

Employees with high levels of organizational trust have greater career satisfaction (Ilkhanizadeh and Karatepe, 2018) and lesser negative attitudes (Ozturk and Karatepe, 2019). Evidence shows that organizational trust promotes employee commitment (Aryee et al., 2002), feelings of psychological safety (Jia et al., 2019) and greater ability to overcome fears (Lebel, 2016). Therefore, it was proposed that organizational trust has a negative association with fears of threats:

H2. Organizational trust is negatively related to employee fears of threats.

2.3 Mediation effects of organizational trust It is acknowledged that SRHRM can affect employee attitudes and behaviors in an indirect way (Jia et al., 2019; Newman et al., 2016; Shen and Benson, 2016). SRHRM practices are likely to impact employee social and psychological processes through social support (Hobfoll, 2001). Social support theory highlights the social relationships providing support and assistance to individuals and groups, making individuals sense attachment care in times of frustration and difficulty (Hobfoll et al., 1990).

According to social support theory, SRHRM gives employees material and emotional resources, care, friendship and a heightened sense of self-accomplishment in crisis situations. This organizational support and resources may be transformed into individual- level employee resources that assist in alleviating fears. Specifically, SRHRM can promote individual perceptions of trust in organizations that helps employees (Jia et al., 2019).

In addition, organizational trust makes employees recognize organizational support for retaining positive and reducing negative resources (Halbesleben et al., 2014; Hobfoll et al., 2018). Organizational trust emphasizing mutual confidence, loyalty and commitment about capabilities and actions transfers positive resources between organizations and employees (Ilkhanizadeh and Karatepe, 2018; Schnackenberg and Tomlinson, 2016). As a result, negative feelings are lessened through the elevated trust relationships between individuals and organizations (Jia et al., 2019; Peccei and Van De Voorde, 2019).

Therefore, organizational trust plays an important role in the social and psychological processes when SRHRM is impacting employee fears of external threats. SRHRM sends signals about organizational responsibility, benevolence and capabilities that enhance organizational trust and reduce fears of external threats (Newman et al., 2016). For example, SRHRM provided employees who were involved in volunteering work in cabin hospitals and transfer services with masks and protective suits, training to develop employee

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protection capabilities and rewards and promotions to those employees participating during COVID-19. The employees felt the support and benevolence of their employers and had greater confidence about their companies’ competitive standing and employee care. These SRHRM practices built employee trust in organizations and contributed to reducing employee fears of external threats. It is proposed, therefore, that SRHRM practices help in overcoming employee fears of external threats through organizational trust:

H3. Organizational trust mediates the relationship between SRHRM and employee fears of external threats.

2.4 Moderation effects of COVID-19 event strength The environment plays a crucial role in the process of social support transforming into personal resources (Hobfoll et al., 1990). Generally, the environment and social support have interactive effects on individuals. In addition, prior research recommends that it is important to explore the interactive effects of HR practices and contexts on employees (Becker and Huselid, 2010; Guest, 2017). As a severe crisis, COVID-19 crippled the hospitality and tourism industry and put employees at extreme health and economic risk. Thus, the pandemic constituted a highly significant external environmental situation, which influenced the effects of SRHRM practices on employees.

COVID-19 created high levels of uncertainty threatening or perceived to threaten security of life and property, and individual well-being. Event strength is an effective measure of the relevance and potential impacts of a crisis (Morgeson, 2005). It is the extent of novelty, disruption and criticality associated with a crisis (Morgeson et al., 2015). The disruption and criticality of the COVID-19 pandemic are highlighted in this research. Event strength introduces discontinuity into environments and reflects the degree to which an event is important, essential or a priority for organizations. According to EST, events influence individual thoughts, feelings and actions (Bundy et al., 2017; Morgeson et al., 2015).

As the COVID-19 event strength was very strong, the negative impacts of SRHRM on employee fears of threat were likely to be more significant. First, COVID-19 was hugely disruptive bringing great changes in HRM practices in hospitality and tourism companies. The more disruptive an event, the more likely it will change feelings and attitudes of the actors (Morgeson et al., 2015). COVID-19 was extremely unsettling, making employees afraid about health threats, economic losses and leading to mental anguish and confusion about the future. As such, it may be expected that HRM will fulfill its social responsibilities in this catastrophe (Hobfoll, 2001).

Evidence shows that crises motivate organizations to engage in helping others to reduce physical and psychological devastation (Muller et al., 2014) . SRHRM offering resources and support for socially responsible behaviors is more recognized by staff, and the positive resources passing from organizations to employees are greater (Watkins et al., 2015). COVID-19 would not have influenced the effects of SRHRMwere it not so disruptive.

Second, COVID-19 was of critical importance and a priority for hospitality and tourism companies and staff, and to deal with COVID-19 became essential and a priority issue for the industry. When a crisis is more critical, it is likelier to change feelings and attitudes (Morgeson and DeRue, 2006; Morgeson et al., 2015). Companies were requested to suspend providing services immediately on January 24th, 2020 in China, hotels and tourism attractions closed and numerous bookings were canceled. Because of the seriousness of COVID-19, employees were more afraid of external threats, and needed care and help from their employers. Dealing with COVID-19 became the most important issue for all organizations.

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In this respect, SRHRM had to support and encourage employee socially responsible behavior and demonstrate care for staff members in greater need of support and feelings of attachment. The positive resources delivered through SRHRM help employees overcome fear, especially during crises. It is reasonable to posit that the stronger the COVID-19 event strength, the more significant was the negative effect of SRHRM on employee fears of external threats. Therefore, assuming greater social responsibility is more conducive to reducing employee fears of threats, the fourth hypothesis was proposed as follows:

H4. COVID-19 event strength positively moderates the relationship between SRHRM and employee fear of external threats. As the COVID-19 event strength gets stronger, the negative impact of SRHRM on employee fears of threats is more significant.

3. Methodology 3.1 Measures Five-point Likert scales were used to measure SRHRM, COVID-19 event strength and organizational trust ranging from “strongly disagree” (1) to “strongly agree” (5), and fear of external threat ranging from “not at all” (1) to “very often” (5). The scales used for these four variables are now described. The questionnaires were originally constructed in English, and conventional and back translation was independently done by two Chinese bilingual academics (Sun et al., 2007). The scales for event strength and organizational trust in their English and Chinese versions were tested and showed good reliability and validity.

3.1.1 Socially responsible human resource management. The scale for SRHRM from Shen and Zhu (2011) was applied. The items were as follows: My company considers personal identity – CSR identity fit in recruitment and selection; My company provides adequate CSR training to promote CSR as a core organizational value;My company provides CSR training to develop employees’ skills in stakeholder engagement and communication;My company considers employee social performance in promotions; My company considers employee social performance in performance appraisals; My company relates employee social performance to rewards and compensation. The scale showed good reliability with Cronbach’s a of 0.912.

3.1.2 COVID-19 event strength. The measures of COVID-19 event strength focused on event disruption and criticality and followed the Liu and Liu (2017) scale. Cronbach’s a was 0.782. The important items included: This event is critical for the long-term success of our company; This event is a priority to our company; This is an important event for our company; This event disrupts our company’s ability to get its work done; This event causes our company to stop and think about how to respond; The event required our company to change the way we work.

3.1.3 Organizational trust. The scale of organizational trust was adapted from Gould- Williams (2003). The important items included: I am treated fairly by this organization; In general, I trust this organization to keep its promises or commitment to me and other employees; This organization has always kept its promises about the demands of my job and the amount of work required of me; I trust management to look after my best interests; This organization has always kept its promises about my career development. Cronbach’s awas 0.919.

3.1.4 Fears of external threats. The measures for fears of external threats were adapted from Lebel (2016) and asked how frequently people felt fearful during COVID-19. The items were: The economic downturn will negatively impact this organization; This organization will

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lose sales or revenue; There will be layoffs at this organization; Our organization will lose business to competitors; An industry downturn will negatively impact this organization. Cronbach’s awas 0.830.

3.1.5 Control variables. The researchers controlled for demographic factors (age, gender, educational level, position and tenure and company ownership) related to individuals (Liu et al., 2010). In addition, the location of respondents was controlled. Since Wuhan was the center of COVID-19 in China followed by other areas of Hubei Province, two dummy variables (D1 and D2) were created – D1 was denoted by (0,1) where 1 = “areas of Hubei Province except Wuhan,” 0 = “other”; D2 was (0,1), where 1 = “areas of China except Hubei Province,” 0 = “other.”

3.2 Sample and procedures A questionnaire survey was conducted of employees in hospitality and tourism companies (including hotels, travel agencies, scenic spots, tourism planning companies and others) during the outbreak of COVID-19 in February in China. The respondents were from hotels including the Banyan Tree and InterContinental hotels in Hangzhou, Hyatt hotels in Ningbo, Marriott hotels inWuhan, Ctrip travel inWuhan, and the BES Cultural TourismGroup.

There were two reasons for choosing hospitality and tourism companies. First, COVID-19 directly impacted the industry especially as the disease spread in China in January, and since China was the first country to experience COVID-19. The hospitality and tourism companies were almost stagnant and faced significant challenges across several months. Second, in a labor-intensive service industry, the development of a hospitality and tourism company relies on human resources, and employee psychological states directly affect the quality of service, customer satisfaction and loyalty. Therefore, employee psychological state recovery is a key to the healthy and sustainable development of the hospitality and tourism industry.

Questionnaires were sent to employees throughWeChat, a viable method to survey more respondents without face-to-face contact. The snowballing technique was followed as by Sun et al. (2007). A total of 436 responses were received. Of these, 408 valid questionnaires were retained after excluding 28 invalid forms because of inattentiveness (completion in less than 3 min) and having obvious tendencies in answers (the same answers for more than eight consecutive questions).

It is noteworthy that 175 respondents were from Wuhan (42.9%), the epicenter of the COVID-19 outbreak; 158 respondents were from other areas of Hubei Province outside of Wuhan (38.7%); and 75 respondents were from other areas in China outside of Hubei (18.4%). Males represented 55.1% and females were 44.9% of the respondents. Most of the employees were aged 20–39 (72.8%), and 64.2% had college degrees or higher. Frontline employees were 38.5%; supervisors accounted for 19.4%; and middle-senior managers were at 42.2%.

In addition, semistructured interviews with managers from hotels and tourism companies in Wuhan were conducted to provide deeper qualitative evidence to confirm and explain the relationships presented in the theoretical model (Zhuang et al., 2018). Hotels and tourism companies in Wuhan were used for this research because they were obviously and directly affected by the COVID-19 crisis. The interviews provided evidence to better understand relationships in organizational SRHRM, organizational trust, COVID-19 event strength and employee fears of external threats. The respondents were five managers from brand hotels, travel agencies and tourism planning companies in Wuhan, and each interview lasted for around 50–90min.

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4. Results 4.1 Confirmatory factor analysis LISREL 8.80 was applied to test the validity of key variables. COVID-19 event strength was treated as a second-order variable, involving event disruption and criticality. The validity of event disruption and criticality was tested in the confirmatory factor analysis (CFA) process. The CFA results showed that the five-factor model (SRHRM; event disruption; event criticality; organizational trust; fears of external threats) fit the data better than alternative models. The five-factor model (x 2/df = 3.94 < 5; NFI = 0.94; NNFI = 0.94; CFI = 0.95; IFI = 0.95; RMSEA = 0.085 < 0.01) showed more acceptable fit than alternative models (Table 1). The variables all possessed acceptable degrees of internal consistency and reliability.

4.2 Descriptive statistics The means, standard deviations, correlations and reliability statistics for the key variables are presented in Table 2. The correlation analysis indicated that SRHRM was positively related to organizational trust (r= 0.729, p< 0.01), and negatively related to fears of external threats (r = �0.260, p < 0.01). Organizational trust was negatively related to fears of external threats (r=�0.246, p< 0.01).

4.3 Hypothesis testing SPSS 22 process 3.3 was used to test the mediating effect of organizational trust and moderating effect of event strength. The mediating effects testing process was as follows: During step 1, examining the relationship between SRHRM and organizational trust, SRHRM was positively related to organizational trust (M1: b = 0.738, p < 0.001) (Table 3). SRHRM had a positive effect on organizational trust. This result supportedH1.

Table 1. Results of confirmatory factor analysis (CFA)

Models Factors x 2/df RMSEA NFI NNFI CFI IFI

One-factor HRMþEDþECþTOþFT 13.30 0.174 0.77 0.77 0.79 0.79 Two-factor SRHRMþEDþEC; TOþFT 10.99 0.157 0.81 0.81 0.83 0.83 Three-factor SRHRM; EDþEC; TOþFT 8.67 0.137 0.86 0.85 0.87 0.87 Four-factor SRHRM; EDþEC; TO; FT 4.67 0.095 0.92 0.93 0.94 0.94 Five-factor SRHRM; ED; EC; TOþFT 3.94 0.085 0.94 0.94 0.95 0.95

Note: N = 408. RMESE = root-mean-square error of approximation; NFI = normed fit index; NNFI = non- normed fit index; CFI = comparative fit index; IFI = incremental fit index; SRHRM: socially responsible HRM; ED: event disruption; EC: event criticality; TO: trust in organizations; FT: fear of external threats

Table 2. Descriptive statistics and correlations for key variables

Mean SD 1 2 3 4

1 SRHRM 3.97 0.68 1.00 2 COVID-19 event strength 4.20 0.53 0.453** 1.00 3 Organizational trust 4.01 0.68 0.729** 0.437** 1.00 4 Fear of external threats 2.88 0.98 �0.260** 0.035 �0.246** 1.00

Notes: *p< 0.05; **p< 0.01; ***p< 0.001

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H2 proposed that organizational trust had a negative effect on fears of external threats. The result indicated that organizational trust was negatively associated with fears of external threats (M2: b =�0.288, p < 0.01) (Table 3), supporting H2.

Third, the mediation effect of organizational trust between SRHRM and fears of external threats was regressed after demographic variables were controlled, and there was a significant mediating effect of organizational trust between SRHRM on employee fears of external threats. In addition, the bootstrapping procedure was applied based on 5,000 samples with a 95% confidence interval (CI) to test the mediation effect of organizational trust. The results showed an indirect effect = �0.213, SE = 0.064, 95% CI = (�0.331, �0.075), not including 0. The 95% CI bootstrap test confirmed that the mediation effect of organizational trust between SRHRM and fears of external threats was significant, supportingH3.

The moderating effect of COVID-19 event strength was tested by regression analysis. The results showed that SRHRMwas negatively related to fears of external threats (M2: b = �0.273, p < 0.01), whereas COVID-19 event strength positively impacted fears of external threats (M2: b = 0.309, p < 0.01). The results indicated that the interactive effect of SRHRM and COVID-19 event strength was negatively related to fears of external threats (M2: b = �0.215, p < 0.01) (Table 3), suggesting that COVID-19 event strength had a negative moderating effect on fears of external threats.

In addition, the 95% CI bootstrap test showed the slope computation at high (1 SD above the mean: b = �0.387, 95% CI = [�0.603, �0.170]), mean (b = �0.273, 95% CI = [�0.475, �0.072]) and low (1 SD below the mean: b = �0.160, 95% CI = [�0.379, 0.061])

Table 3. Mediating effect of organizational trust

and moderating effect of event

strength

Variables Organizational trust Fear of external threats

M1 M2 Constant 3.814 3.851

Control variables Gender 0.075 �0.046 Age �0.011 0.195* Education 0.060 0.179* Ownership 0.021 �0.038 Position �0.052 �0.088 Tenure 0.024 �0.062 D1 �0.058 �0.274* D2 0.018 �0.087

Independent variables SRHRM 0.738*** �0.273**

Mediator Trust in organizations �0.288**

Moderator ES 0.309** SRHRM*ES �0.215** R 0.741 0.434 R2 0.549 0.188 F 53.952 7.637 P 0.000 0.000

Notes: *p< 0.05; **p< 0.01; ***p< 0.001; SRHRM: socially responsible HRM; ES: event strength

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(Table 4). The index demonstrated that the negative relationship between SRHRM and fears was significant when the event strength was at the mean and high levels, whereas it was not significant when event strength was at a low level. Event strength played a significant moderating role between SRHRM and fears of external threats. The stronger the event strength, the more significant was the negative effect of SRHRM on fears of external threats. H4 was thus supported.

The moderating effect of COVID-19 event strength between SRHRM and fears of external threats was as shown in Figure 2. This indicates that the higher the COVID-19 event strength, the more significant was the negative effect of SRHRM on fears of external threats.

4.4 Alternative model analysis Organizational support and resources impact individual resources through perceived trust (Halbesleben et al., 2014; Hobfoll et al., 2018). Therefore, this research proposed that SRHRM reduced fears through enhanced perceived organizational trust. To compare with the original model, the mediating and outcome variables were reversed, and then the new alternative model was examined. In the alternative model, fear of external threats was the mediating effect, and organizational trust was the outcome variable. The results showed that the relationship between fears and organizational trust was much weaker (M4: b = �0.073, p < 0.05) (Table 5), and the moderating effects of event strength on organizational trust were not significant (M4: b=�0.013, ns).

The bootstrapping procedure was applied based on 5,000 samples with a 95% CI to test the mediation effect of fears of external threats. The results showed an indirect effect = 0.026, SE = 0.010, 95% CI = (0.008, 0.047). The effect of organizational trust on fears of external threats was stronger andmore significant than the effect of fears of external threats on organizational trust. Therefore, the results supported the model that SRHRM impacts

Table 4. Index of moderation results

Moderator (COVID-19 event strength) Effect Boot SE P Bootstrap 95% CI LLCI ULCI

Low (�SD) �0.160 0.111 0.151 �0.379 0.061 Mean �0.273 0.102 0.008 �0.475 �0.072 High (þSD) �0.387 0.110 0.001 �0.603 �0.170

Figure 2. Moderating effect of COVID-19 event strength 1

1.5

2

2.5

3

3.5

4

4.5

5

Low SRHRM High SRHRM

Fe ar

o f e

xt er

na l t

hr ea

ts

Low Event strength High Event strength

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fears through organizational trust, and the original model was more robust and acceptable than the alternative one. 4.4.1 Qualitative research. Qualitative evidence was gathered to supplement the quantitative findings. Semistructured interviews were conducted with managers from hotels and tourism companies in Wuhan to provide deeper qualitative evidence to explain the relationships presented in the conceptual model (Zhuang et al., 2018). Hotels and tourism companies in Wuhan were used, and the five interviews were with experienced managers in hotels and tourism companies, including CITIC Travel (Hubei) Company, New Beacon Hotels Group (Wuhan) and BES Cultural Tourism Group. The data from the interviews are shown in Table 6.

The interviews provided further evidence to confirm and more deeply understand the relationships among SRHRM, organizational trust, COVID-19 event strength and fears of

Table 5. Mediating effect of

fear of external threats and

moderating effect of event strength

Variables Fear of external threats Organizational trust

M3 M4 Constant 2.685 4.040

Control variables Gender �0.029 �0.046 Age 0.194 0.002 Education 0.160 0.074 Ownership �0.052 0.020 Position �0.078 �0.053 Tenure �0.061 0.015 D1 �0.238 �0.076 D2 �0.097 0.019

Independent variables SRHRM �0.354*** 0.645**

Mediator Fear of external threats �0.073*

Moderator ES 0.181** SRHRM*ES �0.013 R 0.363 0.756 R2 0.132 0.571 F 6.714 43.769 P 0.000 0.000

Notes: *p< 0.05; **p< 0.01; ***p< 0.001; SRHRM: socially responsible HRM; ES: event strength

Table 6. An overview of

interview

Interviewees Gender Company type Position Duration

Wang Female Travel agency Senior manager 74 min Zheng Male Travel agency Junior manager 54 min Tang Male Five-star hotel Senior manager 57 min Yin Male Tourism planning company Senior manager 89 min Liu Male Travel agency Senior manager 83 min

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external threats. First, the feedback suggested that SRHRM enhanced organizational trust. This trust is influenced by HRM practices, and SRHRM delivers support and care to staff and gives employees greater confidence in organizational capabilities and benevolence. Generally, SRHRM impacts the trust relationships in organizations (Jia et al., 2019). The following statement confirmed this relationship:

There are regular training sessions on socially responsible work. For example, the travel agency goes to communities to organize film-watching and delivers goods to communities and nursing homes. The purpose is certainly to expand the brand influence of the travel agency in the local area. At the same time, these activities promote social and community well-being. We are trained to implement these plans and learn how to communicate with communities. Besides, our company supports socially responsible behavior and activity. During COVID-19, our company purchased masks and protective suits from overseas, and donated money to hospitals and the Red Cross.

It is quite fair in our company, and the company respects your contribution and performance. I trust our company to keep its promises. For example, I was a sales champion, and was promoted from a salesman to a middle-level manager. Employees get along well and show high loyalty to the company (Liu, senior manager in travel agency).

Second, organizational trust helped to overcome fears of external threats. Greater organizational trust tended to heighten people’s beliefs about organizational capabilities and benevolence. If employees have organizational trust, they feel safer and show less fear (Lebel, 2016; Xu et al., 2016), as echoed in the following:

This organization treats its employees fairly and has kept its promises about my development and individual interests. For example, our company is a leading organization and highlights improving employee leadership capabilities. In addition, our leader has great capacity in achieving organizational goals, and to cultivate new employees. Occasionally, I thought about the negative effects of COVID-19 on investment confidence and business, profits and even layoffs. However, I am still optimistic about our company although times are still hard for us now. I believe this company cares about employee interests, and I identify with our brand and management. I have faith that our company is better than most others in the industry. We keep positive and communicate positive feelings to our customers (Yin, senior manager in a tourism planning company).

Third, organizational trust played a mediating role between SRHRM and fears of external threats. According to social support theory, SRHRM representing organizational support and care is a critical resource helping individuals overcome fears of external threats (Hobfoll, 2001). When provided with social support, people have lesser resource loss through enhanced trust, because trust helps individuals realize resource gains (Halbesleben et al., 2014), as evidenced in this statement:

In recruitment and selection, it is necessary to check the CSR identity fit between individuals and organizations, and consistency with company philosophy about love and social responsibility. Our company highlights social responsibility and dedication values, and there are socially responsible practices to support blind children and deaf schools. We have to learn some sign language to communicate with these children, and the company has trained us to do so. In addition, the company promotion, appraisal and incentive management consider socially responsible behaviors, and employees are motivated to engage in these activities. During COVID19, I was a volunteer worker at the Second Yangtze River Bridge to maintain traffic order and measure body temperatures. Our company praised me as “the most beautiful volunteer” and wrote an article published by headquarters.

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Generally speaking, our company is fair. It keeps its promises to employees and has helped in my career development, and I have learned much in this company. In addition, I trust our leader; she is great. I admire her capabilities and strategic perspectives.

Because of COVID-19, there is a decrease in performance and profits. However, our company promised employees a basic income. In addition, our company did not lay off any employees, and even tried to recruit new employees. We are not fearful, and we are confident about our company in all aspects, such as competitive products, and close customer relationships. We will be stronger after COVID-19 (Zheng, junior manager in a travel agency).

Fourth, the COVID-19 event strength augmented the negative effects of SRHRM on fears. It has been suggested that environmental contexts impact the effects of HRM on employees (Guest, 2017). Indeed, the COVID-19 event strength augmented the negative relationship between SRHRM and fears. When a crisis is stronger, employees are more eager for support and care from their organizations (Watkins et al., 2015). The more disruptive and critical was the pandemic, the more negative were the effects of SRHRM on fears of external threats. External events can instigate differences in organizational management and outcomes, and it is of value to explore event system theory in organizational behavior research (Liu and Liu, 2017), as stated by this interviewee:

Our hotel supported and affirmed employee social responsibility behavior, returning lost money and firefighting, for example. Our hotel praised socially responsible behavior and wrote articles to advocate those behaviors in our official account (on WeChat) and OA system, and incentives were provided as well. Our hotel supported employees to engage in fighting the pandemic and provided volunteering services in COVID-19.

Well, there is a great impact of the pandemic on the service industries. The customers of the hotel used to be dominated by business guests; they have disappeared during COVID-19. There were no travelers in this area. All conferences and banquets in the hotel were stopped; this was really a shock. The hotel group pursued rapid development and brand extension, but now transformation became the first priority with the changing consumption habits of guests. The hotel conference room bookings were cancelled. Receiving business guests changed to local community service, and housekeeping, cleaning and elderly care. In addition, fighting with COVID-19 became the most important work in our hotel.

We stopped operations and made great contributions in isolation during the pandemic. The hotel supported and encouraged employees to take social responsibility in COVID-19. They had to take risks, and deserve praise, extra allowances and incentives. In the process of serving medical teams, we encourage employees to improve service quality and to work creatively, for instance, organizing birthday parties for medical staff and improving the safety protection of the hotel.

Although performance and profits decreased during COVID-19, the hotel did not lay off employees. We applied job rotation and worked online to resolve difficulties brought by the pandemic. Sometimes, we felt anxious but not fearful. This depended on the successful business transformation (Tang, senior manager in five-star hotel).

5. Conclusions and implications 5.1 Conclusions The purpose of this research was to explore how SRHRM influenced fears of external threats in hospitality and tourism companies during COVID-19. The results suggested that SRHRM helped to overcome fears in the COVID-19 pandemic through greater organizational trust. In

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addition, COVID-19 event strength accentuated the negative effects of SRHRM on fears of external threats.

The main conclusions from the qualitative evidence were as follows. First, SRHRM is an important organizational resource supporting employees to deal with a crisis. Second, resources from organizations are transformed into individual resources through greater organizational trust. Third, the external COVID-19 crisis strengthened the negative effects of SRHRM on fears. The stronger the COVID-19 crisis, the greater was the negative impact of SRHRM on fears. Most of the existing literature focuses on the effects of SHRM in normal conditions. However, more research to explore HRM with social responsibility in crises should be conducted in the future.

This research investigated the effects of SRHRM in overcoming fears of external threats in hospitality and tourism companies in China following the COVID-19 outbreak. The results showed that organizations played an important role in improving employee negative psychological states in the disastrous COVID-19 pandemic. HRM should be warm-hearted and take greater responsibility in a major crisis such as COVID-19. Unlike HRM under normal conditions, the expanded conceptual model illustrated the value of SRHRM in reducing fears during COVID-19 through elevated organizational trust. More creativity and research are needed during crises in the future to improve organizational HRM in times of uncertainty and threatening environments.

5.2 Theoretical implications First, this research explored the effects of SRHRM on employee fears during a crisis, thus contributing to strategic HRM research in hospitality and tourism. Most of the existing literature focuses on the impacts of SRHRM on individual attitudes under normal conditions (Jia et al., 2019; Newman et al., 2016; Pham et al., 2019; Shen and Zhang, 2019; Zhao et al., 2019). However, HRM must assume more social responsibility, especially in major crises, and help employees to deal with negative emotions (Parkes and Davis, 2013; Voegtlin and Greenwood, 2016; Watkins et al., 2015).

The findings demonstrated that SRHRM sends positive messages to employees and builds a stronger trust relationship that helps them overcome fears of threats. This research fills a literature gap by explaining the effects of SRHRM on overcoming fears of external threats in the COVID-19 pandemic. In addition, the study is in response to the call for more responsible HRM research, and it enriches strategic HRM research (Shen and Benson, 2016; Morgeson et al., 2013; Voegtlin and Greenwood, 2016).

Second, this investigation improves the understanding of the underlying mechanisms about the effects of SRHRM on employee fears of external threats. On the foundation of social support theory, this empirical work provided evidence that SRHRM enhances organizational trust and contributes to reducing fears of external threats. According to social support theory, organizations can be an important resource and offer a sense of attachment to people (Hobfoll, 2001; Hobfoll et al., 2018), and organizational trust may mediate the effect of SRHRM and make individuals value resource protection and reduce resource loss (Halbesleben et al., 2014).

This paper supports the view that SRHRM helped to overcome negative psychological states during the COVID-19 pandemic through enhanced organizational trust. Therefore, it confirmed the process of organizational resources contributing to individual resources (Halbesleben et al., 2014; Hobfoll et al., 2018).

Third, this research extends the strategic HRM literature by applying event strength as a boundary condition to explain the impacts of SRHRM on employee fears

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of external threats. According to event system theory, events occur and play critical roles in shaping individual thoughts, feelings and actions (Morgeson et al., 2015; Liu and Liu, 2017). The COVID-19 pandemic worldwide shocked hospitality and travel companies and their employees. This research tested the moderating effect of COVID- 19 event strength between SRHRM and fears of external threats and provided an integrative view about the effects of SRHRM.

The COVID-19 event strength made the effects of SRHRM greater in reducing fear of external threats. The more disruptive and critical are crises like COVID-19, the more SRHRM is needed in hospitality and tourism companies. Therefore, this research provides a comprehensive understanding about the effects of SRHRM in the COVID-19 pandemic and potentially the results can help to improve crisis management in organizations (Bundy et al., 2017; Williams et al., 2017).

5.3 Managerial implications Hospitality and tourism companies should help employees to overcome fears of external threats during crises like the COVID-19 pandemic. The ongoing prosperity of the hospitality and tourism industry depends on population mobility and uninterrupted, quality service; therefore, the lockdown and social distancing policies during COVID-19 had a direct and negative impact. The crisis relief efforts of government agencies were not always timely, available, reliable or effective. In addition, personal resources and power were insufficient and too weak to deal with the pressures of COVID-19. Therefore, organizations should provide support and help to employees during and in the aftermath of a crisis.

SRHRM can be a critical organizational resource for overcoming employee fears. SRHRM provided masks and protective suits to employees involved in volunteering work in cabin hospitals and transfer services, trained employees in protection skills and resilience capabilities and rewarded employees engaging in socially responsible work during COVID-19. Therefore, employees sensed the support and benevolence of their employers and had greater confidence about their companies’ competitive standing and employee care. This augmented organizational trust leading to reductions in fears of threats. It is valuable for hospitality and tourism companies to adopt SRHRM to build trust and to address severe challenges such as COVID-19, thereby helping employees to overcome fears of economic and psychological threats.

Managers must highlight organizational trust, especially during crisis situations. Greater organizational trust makes employees more appreciate the resource support from their organizations and transform these into individual resources in difficult times. In addition, enhanced trust can transform organizational resources to individual employee resources, and this helped employees overcome fears during COVID-19. Building organizational trust is essential in promoting the relationships between organizations and employees and in hospitality and tourism industry recovery.

SRHRM should be applied in hospitality and tourism companies, especially in tragic events such as the COVID-19 pandemic. The COVID-19 outbreak in China and worldwide from January 2020 inflicted severe negative impacts on hospitality and tourism companies and employees. SRHRM helps hotels and travel agencies to improve employee trust during crises. Specifically, responsible recruitment and selection, CSR training and education and the related performance appraisal, compensation and promotion involve social

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responsibility. These SRHRM practices strengthen employee organizational support perceptions and contribute to organizational trust and reduce employee fears in facing the great challenges during a major crisis.

SRHRM was effective in the COVID-19 crisis in China. The more severe the COVID-19 event strength, the more significant were the negative effects of SRHRM on fears of threats. This is because COVID-19 made organizations and employees become a community of common destiny. Employees are not a burden for companies in a crisis but represent a sustainable resource to be relied upon in recovery. Being warm and friendly when there is a huge need is not only a humanitarian gesture but also should become a requirement for hospitality and tourism companies and their HRM departments.

5.4 Limitations and future research directions It is acknowledged that there are several shortcomings in this analysis. First, the research focus was on employee perceptions of SRHRM, organizational trust and fears of external threats. The cross-sectional design is limited in explaining the causality relationship between SRHRM and fears of external threats. In the future, longitudinal research is needed to explore the causality relationship between SRHRM and fears of external threats.

The data were collected from employees in hospitality and tourism companies, and having a single source inevitably leads to common variance. An attempt was made to control for common variance bias by examining whether the common variance bias was acceptable in this research. Future researchers should gather data from multiple sources including managers and employees and develop multilevel research studies on SRHRM and individual outcomes. In addition, this research focused only on hospitality and tourism and may not be generalizable to other economic sectors; thus, the conceptual model should be tested in different industries in the future.

Third, this analysis emphasized the effects of SRHRM on fears of threats. Although it is valuable to reduce fears of threats during a crisis, examining the effects of SRHRM on positive psychological outcomes and mediating effects are also important directions for the future.

Finally, this research did not consider the impacts of organizational context. For example, leadership and HRM are important antecedents of staff attitudes and behaviors. In the future, an expanded conceptual model should be designed to test the interaction effects of leadership and SRHRMpractices.

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About the authors Jie He PhD, is Assistant Professor in Hunan Institute for Innovation and Development, School of Business, Hunan University of Science and Technology, Xiangtan, P. R. China.

Yan Mao, PhD, is Professor in the School of Tourism and Hospitality Management, Hubei University of Economics, Wuhan, P. R. China. Yan Mao is the corresponding author and can be contacted at: 965170158@qq.com

Alastair M. Morrison, PhD, is Chair Professor in International College, National Kaohsiung University of Hospitality and Tourism, Taiwan.

J. Andres Coca-Stefaniak, PhD, is Associate Professor in Business School, Department of Marketing, Events and Tourism, University of Greenwich, London.

For instructions on how to order reprints of this article, please visit our website: www.emeraldgrouppublishing.com/licensing/reprints.htm Or contact us for further details: permissions@emeraldinsight.com

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  • On being warm and friendly: the effect of socially responsible human resource management on employee fears of the threats of COVID-19
    • 1. Introduction
    • 2. Literature review and hypotheses
      • 2.1 Socially responsible human resource management and organizational trust
      • 2.2 Organizational trust and employee fears of external threats
      • 2.3 Mediation effects of organizational trust
      • 2.4 Moderation effects of COVID-19 event strength
    • 3. Methodology
      • 3.1 Measures
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      • 3.2 Sample and procedures
    • 4. Results
      • 4.1 Confirmatory factor analysis
      • 4.2 Descriptive statistics
      • 4.3 Hypothesis testing
      • 4.4 Alternative model analysis
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    • 5. Conclusions and implications
      • 5.1 Conclusions
      • 5.2 Theoretical implications
      • 5.3 Managerial implications
      • 5.4 Limitations and future research directions
    • References

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Employee perceptions of HR practices: A critical review and future directions

Ying Wang, Sunghoon Kim, Alannah Rafferty & Karin Sanders

To cite this article: Ying Wang, Sunghoon Kim, Alannah Rafferty & Karin Sanders (2020) Employee perceptions of HR practices: A critical review and future directions, The International Journal of Human Resource Management, 31:1, 128-173, DOI: 10.1080/09585192.2019.1674360

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Employee perceptions of HR practices: A critical review and future directions

Ying Wanga , Sunghoon Kimb� , Alannah Raffertyc� and Karin Sandersd�† aSchool of Economics and Management, Tongji University, Shanghai, China; bThe University of Sydney Business School, Sydney, Australia; cDepartment of Employment Relations and Human Resources, Griffith Business School, Griffith University, Brisbane, Queensland, Australia; dSchool of Management, UNSW Business School, University of New South Wales, Sydney, Australia

ABSTRACT Scholars are directing more attention to employee percep- tions of human resources (HR) practices and have explored issues such as whether and how employees’ idiosyncratic or collective perceptions of HR practices shape employee out- comes. To further this area of research, we seek to deter- mine what authors mean when they refer to “employee perceptions of HR practices”. We review 105 articles from leading human resource management journals and find that employee perceptions of HR practices is not a mono- lithic concept. Rather, following previous scholars, we iden- tify three distinct components of employee perceptions of HR practices: the ‘what’, ‘how’, and ‘why’. We critically sum- marize extant literature on these three components of employee HR perception and propose future research direc- tions, including enriching the theoretical foundations of HR communication, embracing cross-national contexts, and enhancing practical relevance.

KEYWORDS Employee human resource perceptions; perceived human resource strength; human resource attributions

Over the last decade, the strategic human resource management field has paid increasing attention to employee perceptions of human resource (HR) practices (Beijer, Peccie, Van Veldhoven, & Paauwe, in press; Hewett, Shantz, Mundy, & Alfes, 2018; Ostroff & Bowen, 2016; Sanders, Shipton, & Gomes, 2014). Human resource management (HRM) scholars largely agree that employee perceptions of HR practices play a key role in influencing the effectiveness of these practices (e.g. Den Hartog, Boon, Verburg, & Croon, 2013; Jensen, Patel, & Messersmith, 2013; Jiang, Hu, Liu, & Lepak, 2017). At the individual level, employee perceptions of HR practices have been shown

CONTACT Sunghoon Kim sunghoon.kim@sydney.edu.au Work and Organisational Studies, The University of Sydney Business School, Abercrombie Building, Darlington, Sydney, NSW 2006, Australia�Sunghoon Kim, Alannah Rafferty and Karin Sanders contributed equally to this paper. †Karin Sanders was working on this paper during an appointment as a Visiting Professor at the Aston Business School (Work & Organisational Psychology), Aston University, Birmingham, UK. � 2019 Informa UK Limited, trading as Taylor & Francis Group

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 2020, VOL. 31, NO. 1, 128–173 https://doi.org/10.1080/09585192.2019.1674360

to mediate and moderate relationships between an organization’s HR practi- ces and employees’ attitudes and behaviors (e.g. Aryee, Walumbwa, Seidu, & Otaye, 2012; Liao, Toya, Lepak, & Hong, 2009). At the organizational level, employee perceptions of HR practices have been identified as antece- dents of unit-level performance (Bowen & Ostroff, 2004). The rapidly expanding literature in this field has led to growing diversity

in the way scholars conceptualize and operationalize employee HR percep- tions. For example, the phrase “employee HR perceptions” has been used when discussing the perceived existence of certain HR practices within an organization as well as when discussing employees’ understanding of employers’ intentions behind HR practices. In this review, we aim to enhance clarity regarding the different approaches taken when researchers use the phrase “employee HR perceptions”. We build on Ostroff and Bowen’s (2016) work and identify three approaches that have been adopted when considering employee HR perceptions: the ‘what’, ‘how’, and ‘why’ of HR practices. The ‘what’ of an HR practices approach considers the content of HR practices through which an employer delivers messages to employees. The ‘how’ of an HR practices approach recognizes the possibility that the same HR content may lead to divergent outcomes depending on how such practices are framed and received by employees. The ‘why’ of an HR practi- ces approach looks at the potential discrepancies in the way employees judge the motivations that lie behind their organization’s introduction of HR prac- tices. We critically summarize existing research in the HR perception litera- ture and adopt this three-fold lens to organize research in the area and to offer directions for future research. Our study contributes to the HR perceptions field in two ways. First, we

clarify the “employee perceptions of HR practices” construct and review research progress on the three different components (the ‘what’, ‘why’ and ‘how’) that have been subsumed under this umbrella construct. We critic- ally summarize extant literature on the three components of employee HR perceptions and propose future research directions. Our review indicates that different components of employee HR perceptions address different aspects of the HR process, and rely on different theoretical assumptions and methodological approaches. Our review reveals that we lack knowledge about how the three different components of HR perceptions complement each other. In this review, we take stock on the different research streams in the field of employee perceptions of HR practices. Our review identifies the merits, limitations, and hidden assumptions of each research stream. We seek to help scholars develop integrative research across different com- ponents of employee HR perceptions. Second, we extend prior reviews in this domain, presenting new

insights. In relation to the ‘what’ component of employee perceptions of

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 129

HR practices, we build on work by Beijer et al. (in press), who provide an insightful review on perceptual measures of HR practices. We extend Beijer et al.’s work by offering additional perspectives on how employee perceptions of HR are conceptualized and operationalized in the litera- ture. Hewett et al. (2018) offered a summary of HR perception research through the lens of attribution theory. We build on this research by expanding the theoretical domain related to the ‘how’ and ‘why’ compo- nent of HR perception research. Specifically, we identify several theoret- ical approaches that we suggest would enrich this area. Our review also builds on, but goes beyond, Ostroff and Bowen’s (2016) work in the HR strength research stream (the ‘how’ of employee perceptions). Finally, Farndale and Sanders (2017) discuss the connection between national cultures and HR strength. We build on their insights and consider the implication of cultural influences on the dynamics of employees’ HR per- ceptions. Below, we explain the methodology adopted in this review. We then investigate the difference between the assumptions, concepts, and measures of the three components of employee HR perceptions. Next, we critically review the empirical findings on the perceived ‘what’, ‘how’, and ‘why’ of HR practices, and offer insights into how research in these areas of inquiry should advance.

Methods

In identifying relevant articles, we used various keywords on employee perceptions of HR practices, including “HR(M) process,” “HR(M) strength,” “HR(M) attribution,” “HR(M) perception,” “HR(M) rating,” “HR(M) experience,” and “employee perceived HR(M)”. We focus on research published after 2004, when Bowen and Ostroff’s (2004) land- mark paper on employee HR perception appeared. However, we also considered earlier seminal books and articles that underpin this litera- ture. As our attention is on employee perceptions of HR practices, we exclude studies on managers’ perceptions of HR (Leung, Foo, & Chaturvedi, 2013; Wright, McMahan, Snell, & Gerhart, 2001). We focus on HR systems and practices as the target of employee’s perceptions. Therefore, we exclude studies with a perceptual target other than HR practices such as the HR department (e.g. Buyens & De Vos, 2001; Stirpe, Trullen, & Bonache, 2013). Our review focuses on articles appeared in high quality journals, indicated by A� and A rankings in the Australian Business Deans Council (ABDC) journal list. We identified 105 articles to be reviewed (see Table 1) and we grouped them into three categories: the what (HR content), the how (HR strength), and the why (HR attribution) of employee perceptions of HR. The majority (75 out of

130 Y. WANG ET AL.

Ta bl e 1.

Re vi ew

of em

pi ric al

st ud

ie s on

em pl oy ee

H R pe rc ep tio

n.

St ud

y Co

nc ep tu al iz at io n of

Em pl oy ee

Pe rc ep tio

ns of

H R Pr ac tic es

In de pe nd

en t Va ria bl es

D ep en de nt

Va ria bl es

M od

er at or s

M ed ia to rs

Co nt ex t

D at a An

al ys is

Pe rc ei ve d H R Co

nt en

t Ed ga r an d G ea re

(2 00 5)

PR

Em pl oy ee

se lf- re po

rt s ab ou

t H RM

pr ac tic e (2 0- ite m

de ve lo pe d fr om

st ud

ie s in cl ud

in g G ue st ,1

99 9;

Jo hn

so n,

20 00 )

Em pl oy ee

pe rc ei ve d

H RM

pr ac tic e

O rg an iz at io na l

co m m itm

en t, jo b

sa tis fa ct io n,

an d fa irn

es s

O rg an iz at io ns

in N ew

Ze al an d

M ul tip

le re gr es si on

Br ow

ni ng

(2 00 6)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H RM

pr ac tic es

(s ev en

ca te go

rie s)

Em pl oy ee

pe rc ep tio

ns of

H RM

pr ac tic es

Em pl oy ee

pe rc ep tio

ns of

se rv ic e be ha vi or

O rg an iz at io na l

co m m itm

en t

So ut h Af ric an

se rv ic e

or ga ni za tio

ns M ul tip

le re gr es si on

M ac ky

an d Bo

xa ll

(2 00 7)

IJ H RM

Em pl oy ee

sc or es

on an

hi gh

pe rf or m an ce

w or k sy st em

(H PW

S) in de x (1 6 ite m

de ve lo pe d fr om

st ud

ie s in cl ud

in g

Be ck er

& H us el id ,1

99 8)

Em pl oy ee

pe rc ei ve d H PW

S Co

m m itm

en t

Tr us t in

m an ag em

en t an d

jo b sa tis fa ct io n

N ew

Ze al an d

em pl oy ee s

M ul tiv ar ia te

an al ys is of

va ria nc e

(M AN

CO VA

)

Ta ke uc hi ,L ep ak ,

W an g,

an d

Ta ke uc hi

(2 00 7)

JA P

Em pl oy ee

ra tin

gs of

H PW

S (2 1- ite m

ad ap te d fr om

Le pa k & Sn el l, 20 02 )

hi gh

pe rf or m an ce

w or k

sy st em

(H PW

S) Re la tiv e es ta bl is hm

en t

pe rf or m an ce

Co lle ct iv e hu

m an

ca pi ta l

an d de gr ee

of es ta bl is hm

en t

so ci al

ex ch an ge

Co m pa ni es

in Ja pa n

H ie ra rc hi ca l

lin ea r re gr es si on

Ku va as

(2 00 8)

JM S

Em pl oy ee

pe rc ep tio

ns of

de ve lo pm

en ta l

H R pr ac tic es

(2 1- ite m

de ve lo pe d fr om

M ey er

& Sm

ith ,2

00 9)

Em pl oy ee

pe rc ei ve d

de ve lo pm

en ta l

H R pr ac tic es

Tu rn ov er

in te nt io n an d

w or k pe rf or m an ce

Em pl oy ee -o rg an iz at io n

re la tio

ns hi p

(p er ce iv ed

or ga ni za tio

na l

su pp

or t, af fe ct iv e

co m m itm

en t,

an d ju st ic e)

N or w eg ia n sa vi ng

s ba nk s

H ie ra rc hi ca l

lin ea r m od

el in g

M ac ky

an d Bo

xa ll

(2 00 8)

AP JH R

Em pl oy ee

ex pe rie nc e of

hi gh

- in vo lv em

en t w or k pr oc es se s (4 1- ite m

de ve lo pe d fr om

Kn ig ht -T ur ve y, 20 04 ;

Va nd

en be rg ,R

ic ha rd so n,

& Ea st m an ,1

99 9)

Em pl oy ee

pe rc ei ve d

hi gh

-in vo lv em

en t

w or k pr oc es s

Jo b sa tis fa ct io n,

st re ss

an d

fa tig

ue ,a nd

w or k-

lif e ba la nc e

O rg an iz at io ns

in N ew

Ze al an d

M ul tiv ar ia te

an al ys is

of co va ria nc e

Co nw

ay an d M on

ks (2 00 9)

H RM

J

Em pl oy ee

pe rs pe ct iv es

on hi gh

co m m itm

en t- H RM

(H C- H RM

;5 2- ite m

de ve lo pe d fr om

Bo se lie ,D

ie tz ,&

Bo on

,2 00 5)

Em pl oy ee

pe rc ei ve d

H C- H RM

Co m m itm

en t an d in te nt io n

to le av e

Fi na nc ia ls er vi ce s

fir m s in

Ire la nd

H ie ra rc hi ca l

lin ea r m od

el lin g

G el la tly ,H

un te r, Cu

rr ie ,

an d Irv in g (2 00 9)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

de ve lo pm

en t,

st ab ili ty

an d re w ar d - or ie nt ed

H R

pr ac tic es

(9 -it em

fr om

Po rt er ,P

ea rc e,

Tr ip ol i, & Le w is ,1

99 8)

Em pl oy ee

pe rc ep tio

ns of

de ve lo pm

en t, st ab ili ty

an d re w ar d - or ie nt ed

H R pr ac tic es

Th e m em

be rs hi p in

th e

fo ur

pr of ile s w he re

af fe ct iv e an d

co nt in ua nc e

co m m itm

en t is hi gh

vs lo w

O rg an iz at io ns

in Ca na da

M ul tin

om ia l

lo gi t an al ys is

H er rb ac h et

al .( 20 09 )

H RM

Em pl oy ee

pe rc ep tio

ns of

H R pr ac tic es

th at

ar e re le va nt

to re ta in in g ol de r

w or ke rs

in em

pl oy m en t (1 4- ite m )

Em pl oy ee

pe rc ei ve d

tr ai ni ng

op po

rt un

iti es ,

av ai la bi lit y of

ne w

ro le s,

fle xi bl e w or ki ng

co nd

iti on

s, an d

Ea rly

re tir em

en t

Af fe ct iv e co m m itm

en t,

hi gh

-s ac rif ic e

co m m itm

en t, an d la ck

of al te rn at iv es

co m m itm

en t

Fr en ch

pr iv at e fir m s

H ie ra rc hi ca l

lin ea r m od

el in g

(c on tin ue d)

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 131

Ta bl e 1.

Co nt in ue d.

St ud

y Co

nc ep tu al iz at io n of

Em pl oy ee

Pe rc ep tio

ns of

H R Pr ac tic es

In de pe nd

en t Va ria bl es

D ep en de nt

Va ria bl es

M od

er at or s

M ed ia to rs

Co nt ex t

D at a An

al ys is

en co ur ag em

en t to

re tir e ea rly

Ka s�e ,P

aa uw

e, an d

Zu pa n (2 00 9)

H RM

Ex pe rie nc ed

H R pr ac tic es

(4 7- ite m )

M ut ua le

xp er ie nc ed

H R

pr ac tic es

(w or k de si gn

, in ce nt iv es ,a nd

tr ai ni ng

)

Kn ow

le dg

e so ur ci ng

an d sh ar in g

St ru ct ur al ,a ffe

ct iv e, an d

co gn

iti ve

re la tio

ns or ga ni za tio

ns in

Sl ov en ia

Re gr es si on

an al ys is

(M ul tip

le Re gr es si on

Q ua dr at ic

As si gn

m en t

Pr oc ed ur e)

Li ao

et al .( 20 09 )

JA P

Em pl oy ee

pe rs pe ct iv es

of H PW

S (4 4- ite m

de ve lo pe d fr om

D el er y & D ot y, 19 96 ;

Sc hn

ei de r, W hi te ,&

Pa ul ,1

99 8;

Za ch ar at os ,B

ar lin g,

& Iv er so n,

20 05 )

M an ag er

pe rc ei ve d

H PW

S Em

pl oy ee

in di vi du

al se rv ic e

pe rf or m an ce

an d

cu st om

er sa tis fa ct io n

Em pl oy ee

pe rc ei ve d H PW

S, em

pl oy ee

hu m an

ca pi ta l, em

pl oy ee

ps yc ho

lo gi ca l

em po

w er m en t, an d

em pl oy ee

pe rc ei ve d

or ga ni za tio

na ls up

po rt

Ja pa ne se

na tio

na lb

an k

H ie ra rc hi ca l

lin ea r m od

el in g

Ko oi j, Ja ns en ,D

ik ke rs ,

an d D e La ng

e (2 01 0)

JO B

Em pl oy ee

pe rc ep tio

ns of

H R pr ac tic es

Em pl oy ee

pe rc ep tio

ns of

de ve lo pm

en t an d

m ai nt en an ce

H R pr ac tic es

Af fe ct iv e co m m itm

en t an d

jo b sa tis fa ct io n

Ag e

Ar tic le s fr om

da ta ba se s

of Ps yc hi nf o

an d Ab

iIn fo rm

M et a- an al ys is

Sh ih ,C

hi an g,

an d H su

(2 01 0)

IJ H RM

Em pl oy ee

pe rc ei ve d hi gh

in vo lv em

en t

w or k sy st em

(H IW

S 26 -it em

fr om

Ba e,

Ch en ,W

an ,L aw

le r, & W al um

bw a,

20 03 ;C

he n,

La w le r, & Ba e, 20 05 )

Pe rc ei ve d H IW

S Jo b sa tis fa ct io n,

jo b

pe rf or m an ce

Pe rc ei ve d w or k-

fa m ily

co nf lic t

M ul tin

at io na lc om

pa ni es

in Ta iw an

St ru ct ur al

eq ua tio

n m od

el in g

Ve ld ,P

aa uw

e, an d

Bo se lie

(2 01 0)

H RM

J

Em pl oy ee

H RM

pe rc ep tio

n (1 4- ite m

fr om

Bo on

,D en

H ar to g,

Bo se lie ,a nd

Pa au w e (2 01 1)

fo r au to no

m y an d

pe rf or m an ce

m an ag em

en t, 2- ite m

fr om

va n Ve ld ho

ve n an d M ei jm an

(1 99 4) ,2

-it em

fr om

Ri or da n,

Va nd

en be rg ,a nd

Ri ch ar ds on

(2 00 5)

fo r co m m un

ic at io n,

an d 5- ite m

fr om

Co lq ui tt (2 00 1)

fo r

in fo rm

in g be ha vi or )

Em pl oy ee

H RM

pe rc ep tio

n W ar d co m m itm

en t

Cl im at e fo r qu

al ity

an d

cl im at e fo r sa fe ty

W ar ds

an d

ou tp at ie nt

cl in ic s

M ul tip

le Re gr es si on

Bo on

et al .( 20 11 )

IJ H RM

Em pl oy ee

ex pe rie nc ed

H PW

S (3 8- ite m

de ve lo pe d fr om

st ud

ie s in cl ud

in g

Ca bl e & Ed w ar ds ,2

00 4;

G ue st

& Co

nw ay ,2

00 2;

Ry an

& Sc hm

it, 19 96 )

Em pl oy ee

pe rc ei ve d

H PW

S O rg an iz at io na l

co m m itm

en t, in te nt io n

to sh ow

O rg an iz at io na l

ci tiz en sh ip

be ha vi or

(O CB

), jo b sa tis fa ct io n,

an d in te nt io n to

le av e

Pe rs on

-o rg an iz at io n (P -O )

fit an d pe rs on

-jo b

(P -J ) fit

Re ta il an d he al th

ca re

co m pa ni es

in th e

N et he rla nd

s

H ie ra rc hi ca l

lin ea r m od

el in g

Ch en ,Z

ha ng

,a nd

Fe y

(2 01 1)

IJ H RM

Ag en t- fo cu se d co lla bo

ra tiv e

H R pr ac tic es

(9 -it em

) Ag

en t- fo cu se d co lla bo

ra tiv e

H R pr ac tic es

an d

st re ng

th of

tie s

Sa le s pe rf or m an ce

Ex te rn al

ne tw or k si ze

an d ra ng

e In su ra nc e ag en ts

in a lif e

in su ra nc e co m pa ny

in Ch

in a

Re gr es si on

an al ys is

El or za

et al .( 20 11 )

IJ H RM

Em pl oy ee

ra te d th e pr es en ce

of AM

O en ha nc in g H R pr ac tic es

(2 2- ite m

M an ag er

pe rc ei ve d AM

O en ha nc in g H R pr ac tic es

Em pl oy ee

pe rc ei ve d AM

O en ha nc in g H R pr ac tic es

Sp an is h

m an uf ac tu rin

g pl an ts

M ul til ev el

St ru ct ur al

eq ua tio

n m od

el in g

132 Y. WANG ET AL.

Af fe ct iv e co m m itm

en t,

pr od

uc tiv ity ,a nd

ab se nt ee is m

Fa rn da le ,H

op e- H ai le y,

an d Ke lli he r (2 01 1)

PR

Em pl oy ee

pe rc ep tio

ns of

hi gh

co m m itm

en t pe rf or m an ce

m an ag em

en t pr ac tic es

(6 -it em

)

Em pl oy ee

pe rc ep tio

ns of

hi gh

co m m itm

en t

pe rf or m an ce

m an ag em

en t pr ac tic es

co m m itm

en t

Tr us t in

em pl oy er

D is tr ib ut iv e, pr oc ed ur al ,

an d in te ra ct io na lj us tic e

Fo ur

or ga ni za tio

ns in

th e

U ni te d Ki ng

do m

(U K)

M ul tip

le Re gr es si on

Ar ye e et

al .( 20 12 )

JA P

Em pl oy ee

ex pe rie nc ed

H PW

S (4 4- ite m

fr om

Li ao

et al ., 20 09 )

U se

of H PW

S Se rv ic e pe rf or m an ce

an d

br an ch

m ar ke t

pe rf or m an ce

Se rv ic e or ie nt at io n

Ex pe rie nc ed

H PW

S, em

po w er m en t cl im at e,

an d ps yc ho

lo gi ca l

em po

w er m en t

Ba nk s in

G ha na

H ie ra rc hi ca l

lin ea r m od

el in g

Al fe s, Sh an tz ,e t al .

(2 01 3)

IJ H RM

Em pl oy ee

pe rc ei ve d H PW

S (9 -it em

de ve lo pe d fr om

G ou

ld -W

ill ia m s &

D av ie s, 20 05 )

Em pl oy ee

pe rc ei ve d H PW

S O CB

an d tu rn ov er

in te nt io n

Pe rc ei ve d

or ga ni za tio

na l

su pp

or t an d

le ad er -m

em be r

ex ch an ge

Em pl oy ee

en ga ge m en t

U K se rv ic e- se ct or

or ga ni za tio

ns H ie ra rc hi ca l

lin ea r m od

el in g

Al fe s, Tr us s, So an e,

Re es ,a nd

G at en by

(2 01 3)

H RM

Em pl oy ee

pe rc ei ve d H R pr ac tic es

(9 -it em

de ve lo pe d fr om

G ou

ld -W

ill ia m s &

D av ie s, 20 05 )

Em pl oy ee

pe rc ei ve d H R

pr ac tic es ;p

er ce iv ed

lin e

m an ag er

be ha vi or

Ta sk

pe rf or m an ce

an d

in no

va tiv e

w or k be ha vi ou

r

Em pl oy ee

en ga ge m en t

U K se rv ic e- se ct or

or ga ni za tio

ns St ru ct ur al

eq ua tio

n m od

el in g

An g et

al .( 20 13 )

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H PW

S (3 0- ite m

de ve lo pe d fr om

Ed ga r & G ea re ,2

00 5;

va n Ve ld ho

ve n & M ei jm an ,1

99 4;

Za ch ar at os

et al ., 20 05 )

M an ag er

pe rc ei ve d H PW

S Af fe ct iv e co m m itm

en t,

in te nt io n to

le av e,

en ga ge m en t, an d jo b

sa tis fa ct io n

Em pl oy ee

pe rc ei ve d H PW

S Au

st ra lia n ho

sp ita l

M ul tip

le lin ea r Re gr es si on

Ba lu ch ,S al ge ,a nd

Pi en in g (2 01 3)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H R sy st em

s (1 2-

ite m

in th e N H S N at io na l

St af f Su rv ey )

Em pl oy ee

pe rc ep tio

ns of

H R sy st em

s Pa tie nt

sa tis fa ct io n

Em pl oy ee

ci vi lit y to w ar ds

pa tie nt s; jo b ef fic ac y,

an d in te nt io n to

le av e

En gl is h pu

bl ic

ho sp ita ls er vi ce s

St ru ct ur al

eq ua tio

n m od

el in g

D en

H ar to g et

al .

(2 01 3)

JO M

Em pl oy ee

pe rc ep tio

ns of

H PW

S (1 0- ite m ) M an ag er

pe rc ei ve d H PW

S Sa tis fa ct io n an d pe rc ei ve d

un it pe rf or m an ce

Co m m un

ic at io n

Em pl oy ee

pe rc ei ve d H PW

S Re st au ra nt

ch ai n in

th e

N et he rla nd

s M ul til ev el

St ru ct ur al

eq ua tio

n m od

el in g

Je ns en

et al .( 20 13 )

JO M

Em pl oy ee

pe rc ep tio

ns of

H PW

S (1 5- ite m s

de ve lo pe d fr om

G ou

ld -W

ill ia m s &

D av ie s, 20 05 ;T ru ss ,1

99 9)

M an ag er

Pe rc ei ve d H PW

S Tu rn ov er

In te nt io n

Jo b co nt ro l

Em pl oy ee

pe rc ei ve d H PW

S; An

xi et y; Ro le

ov er lo ad

U K go

ve rn m en t

H ie ra rc hi ca l

lin ea r m od

el in g

Ke ho

e an d W rig

ht (2 01 3)

JO M

Em pl oy ee

pe rc ep tio

ns of

H PW

S (1 5- ite m

de ve lo pe d fr om

Co m bs ,L iu ,H

al l, &

Ke tc he n,

20 06 ;H

us el id ,1

99 5;

Su n,

Ar ye e,

& La w ;2

00 7;

W ay ,2

00 2)

Em pl oy ee

pe rc ei ve d

H PW

S O CB

,a bs en te ei sm

,a nd

in te nt io n to

re m ai n

O rg an iz at io na lc om

m itm

en t Fo od

se rv ic e or ga ni sa tio

n H ie ra rc hi ca l

lin ea r m od

el in g

Pi en in g,

Ba lu ch ,a nd

Sa lg e (2 01 3)

JA P

Em pl oy ee

pe rc ep tio

ns of

H R sy st em

(1 8- ite m )

a. Ch

an ge s in

em pl oy ee

ra te d H R sy st em

;b .

Ch an ge s in

fin an ci al

pe rf or m an ce ;c .

Ch an ge s in

cu st om

er sa tis fa ct io n

a. Ch

an ge s in

cu st om

er sa tis fa ct io n an d

ch an ge s in

fin an ci al

pe rf or m an ce ;

b. Ch

an ge s in

jo b

sa tis fa ct io n;

c. ch an ge s

in em

pl oy ee

pe rc ei ve d

H R sy st em

a. Ch

an ge s in

jo b

sa tis fa ct io n;

b. Ch

an ge s

in em

pl oy ee

pe rc ei ve d

H R sy st em

;c .c ha ng

es in

jo b sa tis fa ct io n

En gl is h pu

bl ic

ho sp ita ls er vi ce s

G en er al m et ho

d of

m om

en ts

(G M M ) es tim

at or

(c on tin ue d)

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 133

Ta bl e 1.

Co nt in ue d.

St ud

y Co

nc ep tu al iz at io n of

Em pl oy ee

Pe rc ep tio

ns of

H R Pr ac tic es

In de pe nd

en t Va ria bl es

D ep en de nt

Va ria bl es

M od

er at or s

M ed ia to rs

Co nt ex t

D at a An

al ys is

Ta ke uc hi

an d Ta ke uc hi

(2 01 3)

IJ H RM

Em pl oy ee

pe rc ei ve d H RM

pr ac tic es

(1 1- ite m )

Em pl oy ee

pe rc ei ve d

H RM

pr ac tic es

Tu rn ov er

in te nt io n,

af fe ct iv e co m m itm

en t,

co nt in ua nt

co m m itm

en t, jo b

in vo lv em

en t an d jo b

qu al ity

im pr ov em

en ts

P- O fit ,P

-J fit

H ea lth

ca re

or ga ni za tio

ns in

Ja pa n

St ru ct ur al

eq ua tio

n m od

el in g

W rig

ht & N is hi i( 20 13 )

Ch ap

te r

Em pl oy ee

pe rc ei ve d H R pr ac tic es

Co nc ep tu al pa pe r

Ya m am

ot o (2 01 3)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H RM

ba se d on

th e co m m itm

en t m od

el (2 3- ite m

de ve lo pe d fr om

st ud

ie s in cl ud

in g

Ar th ur ,1

99 4;

H us el id ,1

99 5;

Pf ef fe r, 19 98 )

Em pl oy ee

pe rc ei ve d H RM

ba se d on

th e

co m m itm

en t m od

el

Re te nt io n

In te r- or ga ni za tio

na l

ca re er

se lf- ef fic ac y

an d sp ec ia lty

co m m itm

en t

Pr iv at e- se ct or

co m pa ni es

M ul tip

le re gr es si on

Bo on

an d Ka ls ho

ve n

(2 01 4)

H RM

Em pl oy ee

pe rc ep tio

ns of

H C- H RM

(2 2

ite m

fr om

Le pa k & Sn el l, 20 02 )

Em pl oy ee

pe rc ep tio

ns of

H C- H RM

O rg an iz at io na lc om

m itm

en t Ta sk

pr of ic ie nc y

W or k en ga ge m en t

Co m pa ni es

in th e

N et he rla nd

s, G er m an y, Au

st ria ,

G re ec e, Sw

itz er la nd

, th e U K,

an d th e

U ni te d St at es

H ie ra rc hi ca l

lin ea r m od

el in g

Ed ga r an d G ea re

(2 01 4)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H C- H RM

(1 8-

ite m

de ve lo pe d fr om

Pf ef fe r, 19 94 ,

19 98 ;W

oo d & Al ba ne se ,1

99 5)

Em pl oy ee

pe rc ei ve d

H C- H RM

D ep ar tm

en t ta sk

pe rf or m an ce

Jo b sa tis fa ct io n,

af fe ct iv e

co m m itm

en t, an d O CB

N ew

Ze al an d te rt ia ry

in st itu

tio ns

M ul tip

le lin ea r Re gr es si on

Ka to u et

al .( 20 14 )

H RM

Pe rc ei ve d H R pr ac tic es

(1 6- ite m ,f ro m

Ki nn

ie ,H

ut ch in so n,

Pu rc el l, Ra yt on

,& Sw

ar t, 20 05

Em pl oy ee

pe rc ei ve d

H R pr ac tic es

O rg an iz at io na lp

er fo rm

an ce

M an ag er

pe rc ei ve d

fe at ur es

of H R pr ac tic es

Em pl oy ee

re ac tio

ns (e .g .,

m ot iv at io n,

co m m itm

en t,

en ga ge m en t, O CB

)

G re ek

or ga ni za tio

ns St ru ct ur al

eq ua tio

n m od

el in g

Kn ie s an d Le is in k

(2 01 4)

H RM

J

Em pl oy ee

pe op

le m an ag em

en t ac tiv iti es

(7 -it em

re ga rd in g su pp

or tiv e

H R pr ac tic es )

Em pl oy ee

pe op

le m an ag em

en t ac tiv iti es

Ex tr a- ro le

be ha vi ou

r Au

to no

m y, ab ili ty ,

an d co m m itm

en t

Co op

er at iv e

in su ra nc e co m pa ny

Re gr es si on

(t ak e in to

ac co un

t no

n- in de pe nd

en ce

of ob

se rv at io ns )

Pe te rs ,P

ou ts m a, va n

de r H ei jd en ,

Ba kk er ,a nd

de Br ui jn

(2 01 4)

H RM

Em pl oy ee

ex pe rie nc ed

ne w

w ay s to

w or k

(e .g ., te le w or k)

Im pl em

en te d

em po

w er m en t an d

em pl oy ee

pe rc ei ve d

ne w

w ay s to

w or k

W or k- re la te d flo w

Pu bl ic an d pr iv at e

or ga ni za tio

ns in

th e

ne th er la nd

s

H ie ra rc hi ca l

lin ea r m od

el in g

Sh en

an d Le gg

et t

(2 01 4)

PR

Em pl oy ee

pe rc ep tio

ns of

H RM

pr ac tic es

(1 5- ite m

ad ap te d fr om

Su n et

al .,

20 07

an d 5- ite m

re ga rd in g

re cr ui tm

en t an d sl ec tio

n)

Pe rc ep tio

ns of

H RM

pr ac tic es

Pe rc ei ve d

or ga ni za tio

na lj us tic e

H uk ou

st at us

Co m pa ni es

in Ch

in a

O ne -w ay

be tw ee n

gr ou

ps M AN

O VA

Ve rm

ee re n (2 01 4)

IJ H RM

Em pl oy ee

pe rc ei ve d H RM

(3 9- ite m

ad ap te d fr om

Ap pe lb au m ,B

ai le y,

Be rg ,&

Ka lle be rg ,2

00 0;

Bo on

,2 00 8;

Ah m ad

& Sc hr oe de r, 20 03 ;G

ou ld -

Li ne

m an ag er

tr an sf or m at io na l

le ad er sh ip

Pe rc ei ve d un

it pe rf or m an ce

Li ne

m an ag er

im pl em

en te d

an d em

pl oy ee

pe rc ei ve d H RM

A D ut ch

m un

ic ip al ity

H ire ra rc hi ca l

lin ea r m od

el in g

134 Y. WANG ET AL.

W ill ia m s, 20 03 ;H

us el id ,1

99 5;

W rig

ht ,

G ar dn

er ,M

oy ni ha n,

& Al le n,

20 05 )

Ya na do

ri an d Va n

Ja ar sv el d (2 01 4)

IR

Em pl oy ee

re po

rt s of

H PW

S (1 0- ite m

de ve lo pe d fr om

M oh

r & Zo gh

i, 20 08 ;

Za tz ic k & Iv er so n,

20 06 )

Fo rm

al H PW

S, in fo rm

al H PW

S, an d

un us ed

H PW

S

Jo b sa tis fa ct io n an d

w or kp la ce

pr of ita bi lit y

St at is tic s Ca na da

w or kp la ce

an d

em pl oy ee

su rv ey

O rd in al

lo gi st ic re gr es si on

Fo ss

et al .( 20 15 )

H RM

Em pl oy ee

pe rc ep tio

ns of

re w ar ds

fo r

kn ow

le dg

e sh ar in g de ve lo pe d fr om

Ca br er a, Co

lli ns ,a nd

Sa lg ad o (2 00 6) ;

M au re r an d Ta ru lli (1 99 4)

(7 -it em

)

Re w ar ds

fo r kn ow

le dg

e sh ar in g

Au to no

m ou

s m ot iv at io n

to sh ar e kn ow

le dg

e Au

to no

m y- pr om

ot in g

jo b de si gn

an d

kn ow

le dg

e sh ar in g

su pp

or tiv e cl im at e

Kn ow

le dg

e- in te ns iv e

fir m s in

D en m ar k

H ie ra rc hi ca l

lin ea r m od

el in g

M ad en

(2 01 5)

PR Em

pl oy ee

pe rc ei ve d hi gh

-in vo lv em

en t H R

pr ac tic es

(1 0- ite m

fr om

Ya ng

,2 01 2)

Em pl oy ee

pe rc ei ve d hi gh

- in vo lv em

en t

H R pr ac tic es

In di vi du

al in no

va tio

n an d

fe ed ba ck

in qu

iry W or k en ga ge m en t an d

le ar ni ng

-g oa l

or ie nt at io n

O rg an iz at io ns

in Tu rk ey

St ru ct ur al

eq ua tio

n m od

el in g

W eh ne r, G la rd in i, an d

Ka bs t (2 01 5)

H RM

Em pl oy ee

pe rc ep tio

ns of

re cr ui tm

en t

pr oc es s ou

ts ou

rc in g (n o ou

ts ou

rc in g,

ou ts ou

rc in g of

pr es el ec tio

n, ou

ts ou

rc in g of

pr es el ec tio

n an d

te le ph

on e in te rv ie w ,a nd

co m pl et e

ou ts ou

rc in g)

Ex te nt

of re cr ui tm

en t

pr oc es s ou

ts ou

rc in g

Jo b ac ce pt an ce

in te nt io n

Se rv ic e pr ov id er

im ag e

an d em

pl oy er

im ag e

Em pl oy er

at tr ac tiv en es s

an d sa tis fa ct io n w ith

th e re cr ui tm

en t pr oc es s

G ra du

at e st ud

en ts

in Bu

si ne ss

Ad m in is tr at io n

an d Ec on

om ic s

Sc en ar io -b as ed ,

be tw ee n- su bj ec t

ex pe rim

en t st ud

y

An dr ee va

an d

Se rg ee va

(2 01 6)

H RM

J

Te ac he r pe rc ei ve d m ot iv at io n (3 -it em

fr om

Ki an to ,A

nd re ev a, & Sh i, 20 11 ;

3- ite m

fr om

Fo ss ,M

in ba ev a,

Pe de rs en ,&

Re in ho

lt, 20 09 ), ab ili ty

(3 -

ite m

de ve lo pe d ba se d on

st ud

ie s

in cl ud

in g Jia

ng ,L ep ak ,H

u, & Ba er ,

20 12 ), an d op

po rt un

ity (7 -it em

fr om

W u,

H su ,&

Ye h,

20 07 )- en ha nc in g

H R pr ac tic es

Ab ili ty

an d m ot iv at io n-

en ha nc in g H R pr ac tic es

Kn ow

le dg

e- sh ar in g

be ha vi or

O pp

or tu ni ty -e nh

an ci ng

H R pr ac tic es

Ab ili ty ,i nt rin

si c an d

ex tr in si c m ot iv at io n to

sh ar e kn ow

le dg

e

Sc ho

ol s fr om

a Ru

ss ia n un

iv er si ty

St ru ct ur al

eq ua tio

n m od

el in g

Ca st an he ira

an d St or y

(2 01 6)

H RM

Em pl oy ee

pe rc ep tio

ns of

pe rf or m an ce -

or ie nt ed

H R pr ac tic es

(1 4- ite m

de ve lo pe d fr om

Le pa k & Sn el l, 20 02 ;

Ta ke uc hi

et al ., 20 07 )

Em pl oy ee

pe rc ei ve d

pe rf or m an ce -o rie nt ed

H R pr ac tic es

Af fe ct iv e co m m itm

en t

sa vo rin

g st ra te gi es

W or k en ga ge m en t

A la rg e re ta il st or e

Pa th

an al ys is

Co nw

ay et

al .( 20 16 )

H RM

Em pl oy ee

pe rc ep tio

ns of

pe rf or m an ce

m an ag em

en t (3 -it em

de ve lo pe d fr om

Ke ho

e & W rig

ht ,2

01 3;

Le pa k & Sn el l,

20 02 ); em

pl oy ee

vo ic e (4 -it em

)

Em pl oy ee

pe rc ei ve d

pe rf or m an ce

m an ag em

en t an d

em pl oy ee

vo ic e

Em ot io na le

xh au st io n

an d en ga ge m en t

Em pl oy ee

vo ic e

A pu

bl ic -s ec to r

or ga ni za tio

n in

Ire la nd

St ru ct ur al

eq ua tio

n m od

el in g

El or za

et al .( 20 16 )

PR Em

pl oy ee

pe rc ei ve d H PW

S (1 6- ite m

de ve lo pe d fr om

D el er y & D ot y, 19 96 ;

Va nd

en be rg

et al ., 19 99 )

M an ag er

pe rc ei ve d H PW

S D is cr et io na ry

be ha vi ou

r Em

pl oy ee

pe rc ei ve d H PW

S M an uf ac tu rin

g co m pa ni es

in Sp ai n

H ie ra rc hi ca l

lin ea r m od

el in g

Fr en ke la

nd Be dn

al l

(2 01 6)

H P

Em pl oy ee

pe rc ep tio

ns of

tr ai ni ng

op po

rt un

ity (3 -it em

de ve lo pe d fr om

W ay ne ,S ho

re ,&

Li de n,

19 97 ) an d

pr om

ot io n op

po rt un

ity (2 -it em

de ve lo pe d fr om

Sp ec to r, 19 85 )

Em pl oy ee

pe rc ei ve d

Tr ai ni ng

an d pr om

ot io n

op po

rt un

iti es

D is cr et io na ry

w or k ef fo rt

In te ra ct io na lj us tic e

Pr oc ed ur al

ju st ic e, ca re er

ex pe ct at io n,

an d fe lt

ob lig at io n to

w or k un

it

Cl er ic al

an d

ad m in is tr at iv e

em pl oy ee s at

br an ch

le ve li n a la rg e ba nk

St ru ct ur al

eq ua tio

n m od

el in g

Ki lro

y, Fl oo d,

Bo sa k,

an d Ch

ên ev er t

(2 01 6)

H RM

J

Em pl oy ee

pe rc ep tio

ns of

hi gh

in vo lv em

en t w or k pr ac tic es :

au to no

m y (3 -it em

,S pr ei tz er ,1

99 5) ,

in fo rm

at io n sh ar in g (3 -it em

,L aw

le r,

M oh

rm an ,&

Le df or d,

19 95 ), no

n-

Em pl oy ee

pe rc ei ve d hi gh

in vo lv em

en t

w or k pr ac tic es

Em ot io na le

xh au st io n

an d de pe rs on

al iz at io n

Ro le

co nf lic t, ro le

ov er lo ad ,

an d ro le

am bi gu

ity A Ca na di an

ge ne ra lh

os pi ta l

St ru ct ur al

eq ua tio

n m od

el in g

(c on tin ue d)

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 135

Ta bl e 1.

Co nt in ue d.

St ud

y Co

nc ep tu al iz at io n of

Em pl oy ee

Pe rc ep tio

ns of

H R Pr ac tic es

In de pe nd

en t Va ria bl es

D ep en de nt

Va ria bl es

M od

er at or s

M ed ia to rs

Co nt ex t

D at a An

al ys is

m on

et ar y re co gn

iti on

(3 -it em

, Tr em

bl ay ,C

lo ut ie r, Si m ar d,

Ch ên ev er t,

& Va nd

en be rg he ,2

01 0) ,a nd

tr ai ni ng

an d de ve lo pm

en t (6 -it em

,T re m bl ay

et al ., 20 10 )

M a, Si lv a, Ca lla n,

an d

Tr ig o (2 01 6)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H R pr ac tic es

(1 0- ite m

de ve lo pe d fr om

Sc hu

st er ,1

98 2)

Em pl oy ee

pe rc ei ve d

co m m itm

en t an d

co nt ro lH

R pr ac tic es

Tu rn ov er

in te nt io n an d jo b

sa tis fa ct io n

M ul tin

at io na lf irm

s an d

do m es tic

fir m s

in Ch

in a

H ie ra rc hi ca l

lin ea r m od

el in g

M on

ks et

al .( 20 16 )

H RM

J Em

pl oy ee

pe rc ep tio

ns of

tr ai ni ng

an d

de ve lo pm

en t, pe rf or m an ce

m an ag em

en t, pa rt ic ip at io n,

jo b

ro ta tio

n an d m en to rin

g (8 -it em

)

Em pl oy ee

pe rc ei ve d

le ar ni ng

-e nh

an ci ng

em pl oy m en t pr ac tic es

an d ta sk

in te rd ep en de nt

w or k pr ac tic es

Kn ow

le dg

e ex ch an ge

an d

co m bi na tio

n Re fle xi vi ty

Kn ow

le dg

e w or ke rs

in Ph

ar m ac eu tic al

an d

In fo rm

at io n an d

co m m un

ic at io ns

te ch no

lo gy

se ct or s in

Ire la nd

an d th e U K

St ru ct ur al

eq ua tio

n m od

el in g

So lb er g an d D ys vi k

(2 01 6)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H R in ve st m en t

(7 -it em

de ve lo pe d fr om

Ku va as

& D ys vi k, 20 09 ;L ee

& Br uv ol d,

20 03 )

Em pl oy ee

pe rc ei ve d

in ve st m en t in

em pl oy ee

de ve lo pm

en t

In te rn al em

pl oy ab ili ty

or ie nt at io n

an d ac tiv iti es

Pe rc ei ve d so ci al an d

ec on

om ic ex ch an ge

re la tio

ns hi p

Th e N or w eg ia n di vi si on

of a m ul tin

at io na l

te ch no

lo gy

se rv ic e

an d m an ag em

en t

co ns ul tin

g fir m

Pa th

an al ys is

Ag ar w al

an d Fa rn da le

(2 01 7)

H RM

J

Em pl oy ee

pe rc ei ve d H PW

S (2 1 ite m ,

Ta ke uc hi

et al ., 20 07 )

Em pl oy ee

pe rc ei ve d

H PW

S Cr ea tiv ity

im pl em

en ta tio

n Ps yc ho

lo gi ca lc ap ita la nd

ps yc ho

lo gi ca ls af et y

A ph

ar m ac eu tic al

fir m

Pa th

an al ys is

An dr ee va ,V

an ha la ,

Se rg ee va ,R

ita la ,

an d Ki an to

(2 01 7)

H RM

J

Em pl oy ee

pe rc ep tio

ns of

ap pr ai sa lo

f kn ow

le dg

e be ha vi ou

rs (3 -it em

) an d

re w ar ds

fo r kn ow

le dg

e be ha vi ou

rs (3 -it em

)

Em pl oy ee

pe rc ei ve d

re w ar ds

an d

pe rf or m an ce

ap pr ai sa l

of kn ow

le dg

e be ha vi ou

rs

Ra di ca la nd

in cr em

en ta l

in no

va tio

n ou

tc om

es Fi ni sh

co m pa ni es

St ru ct ur al

eq ua tio

n m od

el in g

An g et

al .( 20 17 )

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

re cr ui tm

en t (6 -

ite m ,Z

ac ha ra to s et

al ., 20 05 ), tr ai ni ng

an d de ve lo pm

en t (6 -it em

,Z ac ha ra to s

et al ., 20 05 ), an d he al th

an d sa fe ty

cl im at e (8 -it em

,E dg

ar & G ea re ,2

00 5)

Le ad er

H R pr ac tic es

M em

be r he al th

& w el lb ei ng

an d m em

be r

in te nt io n to

le av e

M em

be r H R pr ac tic es ,

M em

be r so ci al

co nn

ec te dn

es s, an d

le ad er -

m em

be r ex ch an ge

Au st ra lia n M en s Sh ed s

H ie ra rc hi ca l

lin ea r m od

el in g

D um

on t, Sh en ,a nd

D en g (2 01 7)

H RM

Em pl oy ee

pe rc ep tio

ns of

H R pr ac tic es

th at

en ha nc e po

si tiv e en vi ro nm

en t

ou tc om

es (6 -it em

)

Em pl oy ee

pe rc ei ve d

gr ee n H RM

Ex tr a- ro le

an d in -r ol e

gr ee n be ha vi ou

r In di vi du

al gr ee n va lu es

Ps yc ho

lo gi ca lg

re en

cl im at e A Ch

in es e su bs id ia ry

of an

Au st ra lia n

m ul tin

at io na l

en te rp ris e

St ru ct ur al

eq ua tio

n m od

el in g

Jia ng

et al .( 20 17 )

H RM

Em pl oy ee

pe rc ei ve d H R pr ac tic es

(1 3-

ite m

de ve lo pe d fr om

pr ev io us

re se ar ch ,e

.g ., Ch

ua ng

& Li ao ,2

01 0;

Le pa k & Sn el l, 20 02 )

M an ag er

an d Co

-w or ke r

H R pe rc ep tio

ns Em

pl oy ee

H R pe rc ep tio

ns D is si m ila rit y to

m an ag er

an d

co -w or ke rs

Ch in es e in su ra nc e

co m pa ny

an d

go ve rn m en ta la

ge nc y

H ie ra rc hi ca l

lin ea r m od

el in g

Ki lro

y et

al .( 20 17 )

H RM

Em pl oy ee

pe rc ep tio

ns of

hi gh

in vo lv em

en t w or k pr ac tic es :

Em ot io na le

xh au st io n an d

de pe rs on

al iz at io n

P- O fit

A Ca na di an

ge ne ra lh

os pi ta l

St ru ct ur al

eq ua tio

n m od

el lin g

136 Y. WANG ET AL.

au to no

m y (3 -it em

,S pr ei tz er ,1

99 5) ,

in fo rm

at io n sh ar in g (6 -it em

,L aw

le r

et al ., 19 95 ), no

n- m on

et ar y

re co gn

iti on

(3 -it em

,T re m bl ay

et al .,

20 10 ), an d tr ai ni ng

an d de ve lo pm

en t

(3 -it em

,T re m bl ay

et al ., 20 10 )

Em pl oy ee

pe rc ei ve d

hi gh

in vo lv em

en t

w or k pr ac tic es

Li et

al .( 20 17 )

H RM

Em pl oy ee

pe rc ep tio

ns of

re w ar d fo r

cr ea tiv ity

(3 -it em

de ve lo pe d fr om

Ba er ,O

ld ha m ,&

Cu m m in gs ,2

00 3)

Em pl oy ee

pe rc ei ve d

re w ar d fo r cr ea tiv ity

Cr ea tiv e pe rf or m an ce

Ch al le ng

e an d th re at

ap pr ai sa l

Cr ea tiv ity -r el at ed

in tr in si c

m ot iv at io n

A co ns tr uc tio

n gr ou

p in

Ch in a

H ie ra rc hi ca l

lin ea r m od

el in g

Li an d Fr en ke l( 20 17 )

IJ H RM

Em pl oy ee

H PW

S (1 7- ite m

de ve lo pe d

fr om

Su n et

al ., 20 07 )

Su pe rv is or

pe rc ep tio

ns of

H R pr ac tic es

W or k en ga ge m en t

Su pe rv is or -s ub

or di na te

hu ko u

st at us

si m ila rit y

Le ad er -m

em be r ex ch an ge

an d em

pl oy ee

pe rc ep tio

ns of

H R pr ac tic es

A pr iv at e- ow

ne d ho

te l

in Ch

in a

H ie ra rc hi ca l

lin ea r m od

el in g

Li u et

al .( 20 17 )

AM J

Em pl oy ee

pe rc ei ve d pe rf or m an ce -

or ie nt ed

H R pr ac tic es

(3 6- ite m ) an d

m ai nt en an ce -o rie nt ed

H R pr ac tic es

(1 2- ite m ) de ve lo pe d fr om

G on

g, H ua ng

,a nd

Fa rh

(2 00 9)

Em pl oy ee

pe rc ei ve d

pe rf or m an ce -o rie nt ed

H R pr ac tic es

Cr ea tiv ity

an d

fir m

in no

va tio

n Fi rm

ow ne rs hi p an d

em pl oy ee

pe rc ei ve d

m ai nt en an ce -

or ie nt ed

H R pr ac tic es

D om

ai n- re le va nt

sk ill s

M et al lu rg ic al

fir m s

in Ch

in a

H ie ra rc hi ca l

lin ea r m od

el in g

Sc ho

pm an ,K

al sh ov en ,

an d Bo

on (2 01 7)

IJ H RM

Em pl oy ee

pe rc ei ve d H C- H RM

(2 2 ite m s

de ve lo pe d fr om

Le pa k & Sn el l, 20 02 )

Em pl oy ee

pe rc ei ve d

H C- H RM

M ot iv at io n to

co nt in ue

to w or k

Tr an sf or m at io na ll ea de rs hi p

an d in tr in si c m ot iv at io n

D ut ch

he al th

ca re

or ga ni za tio

ns Pa th

an al ys is

Ve ld

an d Al fe s (2 01 7)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H R sy st em

(1 0-

ite m

de ve lo pe d fr om

Kr oo n,

va n de

Vo or de ,&

va n Ve ld ho

ve n,

20 09 )

Em pl oy ee

pe rc ei ve d

H R sy st em

W ar d co m m itm

en t an d

ne ed

fo r re co ve ry

Cl im at e fo r w el l-b

ei ng

an d

cl im at e fo r ef fic ie nc y

A Lo ng

-T er m

Ca re

or ga ni za tio

n in

th e

N et he rla nd

s

H ie ra rc hi ca l

lin ea r m od

el in g

Bo s- N eh le s an d

M ei je rin

k (2 01 8)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

th e pr es en ce

of H RM

pr ac tic es

(3 1- ite m

fr om

Li ao

et al ., 20 09 ;T ak eu ch ie

t al ., 20 07 )

Li ne

m an ag er

pe rc ep tio

ns of

or ga ni za tio

na lH

RM su pp

or t & ca pa ci ty

an d

em pl oy ee

pe rc ep tio

ns of

LM X

Af fe ct iv e co m m itm

en t

Li ne

m an ag er

m ot iv at io n

to im pl em

en t H R

pr ac tic es

an d em

pl oy ee

pe rc ep tio

ns of

th e

pr es en ce

of H RM

pr ac tic es

En gi ne er in g fir m s in

th e

N et he rla nd

s H ie ra rc hi ca l

lin ea r m od

el in g

D el lo

Ru ss o,

M as ci a,

an d M or an di

(2 01 8)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H R pr ac tic es

(6 -it em

) Em

pl oy ee

pe rc ep tio

ns of

H R pr ac tic es

In di vi du

al pe rc ep tio

ns of

pr oa ct iv ity

cl im at e,

or ga ni za tio

na lc lim

at e

fo r pr oa ct iv ity ,a nd

ap pr op

ria te ne ss

of ca re

H RM

st re ng

th (d ep ar tm

en t le ve l)

Ita lia n ho sp ita lc om

pa ni es

H ie ra rc hi ca l

lin ea r m od

el lin g

Fl et ch er

et al .( 20 18 )

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

tr ai ni ng

an d

de ve lo pm

en t (3 -it em

de ve lo pe d fr om

Ro bi ns on

,H oo ke r, & H ay da y, 20 07 )

Em pl oy ee

pe rc ei ve d

tr ai ni ng

an d

de ve lo pm

en t

In te nt io n to

st ay

Em pl oy ee

en ga ge m en t, jo b

sa tis fa ct io n,

em ot io na l

ex ha us tio

n, an d

ch an ge -r el at ed

an xi et y

Co m pa ni es

in th e U K

H ie ra rc hi ca l

lin ea r m od

el in g

G ko re zi s, G eo rg io u,

an d Th eo do

ro u

(2 01 8)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H PW

S (1 1- ite m

fr om

Ta ke uc hi

et al ., 20 07 ;C

ha ng

& Ch

en ,2

01 1)

Em pl oy ee

pe rc ei ve d H PW

S In te nt io n to

le av e

H R- re la te d

ed uc at io n

ba ck gr ou

nd

O rg an iz at io na lc yn ic is m

Pr iv at e ho

sp ita ls

in Cy pr us

Re gr es si on

an al ys is

Ko oi ja

nd Bo

on (2 01 8)

H RM

J Em

pl oy ee

pe rc ep tio

ns of

hi gh

- pe rf or m an ce

w or k pr ac tic es

(1 4- ite m )

Em pl oy ee

pe rc ep tio

ns of

hi gh

-p er fo rm

an ce

w or k pr ac tic es

Af fe ct iv e co m m itm

en t

ov er

tim e

Ca re er

st ag e

P- O fit

ov er

tim e

A D ut ch

un iv er si ty

St ru ct ur al

eq ua tio

n m od

el in g

(c on tin ue d)

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 137

Ta bl e 1.

Co nt in ue d.

St ud

y Co

nc ep tu al iz at io n of

Em pl oy ee

Pe rc ep tio

ns of

H R Pr ac tic es

In de pe nd

en t Va ria bl es

D ep en de nt

Va ria bl es

M od

er at or s

M ed ia to rs

Co nt ex t

D at a An

al ys is

Li ,W

an g,

Va n

Ja ar sv el d,

Le e, an d

M a (2 01 8)

AM J

Em pl oy ee

ex pe rie nc ed

hi gh

-in vo lv em

en t

w or k sy st em

(H IW

S; ite m s fr om

th e

em pl oy ee

su rv ey

co lle ct ed

by St at is tic s Ca na da )

Em pl oy ee

ex pe rie nc ed

H IW

S In no

va tio

n Th e ho

m og

en ei ty

of H IW

S ex pe rie nc es ,

th e st ra te gi c

im po

rt an ce

of in no

va tio

n, an d th e

ch ur n in

hu m an

re so ur ce s

W or kp la ce s in

Ca na da

O rd er ed

pr ob

it re gr es si on

s

M € ak el € a an d Ki nn

un en

(2 01 8)

IJ H RM

Su pp

or tiv e H R pr ac tic es

de ve lo pe d fr om

ea rli er

lit er at ur e (e .g ., Iv an ce vi ch ,

Ko no

pa sk e, & D eF ra nk ,2

00 3;

Je ns en ,

20 14 ;W

el ch

& W or m ,2

00 6)

(5 -it em

)

Em pl oy ee

pe rc ei ve d

su pp

or tiv e H R pr ac tic es

Jo b ex ha us tio

n, vi go

r an d

sa tis fa ct io n w ith

tr av el

fo r w or k

W or kl oa d & pr es su re ,

an d ris ks

of tr av el

de st in at io n

M ul tin

at io na lc om

pa ni es

an d Fi nn

is h tr ad e

un io n m em

be rs

St ru ct ur al

eq ua tio

n m od

el lin g

M ak he ch a et

al .( 20 18 )

IJ H RM

Ex pe rie nc ed

H R pr ac tic es

(c on

te nt ,

pr oc es s, & in te nt )

In te nd

ed H R pr ac tic es

Em pl oy ee

ex pe rie nc ed

H R pr ac tic es

e. g. ,l ow

co m m un

ic at io n &

lo w

co m pr eh en si on

ab ili ty

Ac tu al H R pr ac tic es

Re ta il se ct or

in In di a

Ca se

st ud

y

Yo us af

et al .( 20 18 )

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H C- H RM

(1 7- ite m

de ve lo pe d fr om

Sa nd

er s,

D or en bo

sc h,

et al ., 20 08 )

Em pl oy ee

pe rc ei ve d hi gh

co m m itm

en t H RM

O rg an iz at io na la

nd oc cu pa tio

na l

tu rn ov er

in te nt io n

Af fe ct iv e

oc cu pa tio

n co m m itm

en t

Af fe ct iv e

or ga ni za tio

na l

co m m itm

en t

In do

ne si a re st au ra nt s

H ie ra rc hi ca l

lin ea r m od

el in g

Ba ya zi t an d Ba ya zi t

(2 01 9)

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

av ai la bi lit y of

fle xi bl e w or k ar ra ng

em en ts

(4 -it em

de ve lo pe d fr om

Al le n,

20 01 )

Em pl oy ee

pe rc ei ve d

av ai la bi lit y of

fle xi bl e

w or k ar ra ng

em en t

Pe rc ei ve d ge ne ra lh

ea lth

Pe rc ei ve d fa m ily -

su pp

or tiv e cu ltu

re Fl ex ib ili ty

I-d ea ls ,w

or k- to -

fa m ily

co nf lic t, fa m ily -

to -w or k co nf lic t

Fi rm

s in

Tu rk ey

Pa th

an al ys is

Bo s- N eh le s an d

Ve en en da al ( 2 01 9)

IJ H RM

Em pl oy ee

pe rc ei ve d H R pr ac tic es

(1 4-

ite m

fr om

Bo se lie ,H

es se lin k, Pa au w e,

& va n de r W ie le ,2

00 1)

Em pl oy ee

pe rc ei ve d

tr ai ni ng

& de ve lo pm

en t,

co m pe ns at io n,

in fo rm

at io n sh ar in g,

an d su pp

or tiv e

su pe rv is io n

In no

va tiv e w or k be ha vi or

In no

va tiv e cl im at e

M an uf ac tu rin

g co m pa ni es

in th e

N et he rla nd

s

Re gr es si on

an al ys is

Ch oi

(2 01 9)

AP JH R

Th e ex te nt

to w hi ch

em pl oy ee s ag re ed

or di sa gr ee d th at

ea ch

pr ac tic e w as

us ed

by th ei r pe rs on

al ex pe rie nc e

an d un

de rs ta nd

in g of

H R pr ac tic es

(8 -it em

)

H R sy st em

s Fi rm

pe rf or m an ce

an d jo b

sa tis fa ct io n

Em pl oy ee

pe rc ei ve d

H R sy st em

s So ut h Ko

re an

m an uf ac tu rin

g fir m s

H ie ra rc hi ca l

lin ea r m od

el in g

Co ok e et

al .( 20 19 )

IJ H RM

Em pl oy ee

pe rc ep tio

ns of

H PW

S (1 6- ite m

de ve lo pe d fr om

Ba e & La w le r, 20 00 ;

Pr ie to

& Sa nt an a, 20 12 ;S ea rle

et al .,

20 11 ;S un

et al ., 20 07 ;T ak eu ch i

et al ., 20 07 )

Em pl oy ee

pe rc ep tio

ns of

H PW

S en ga ge m en t

re si lie nc e

Ch in es e ba nk in g in du

st ry

St ru ct ur al

eq ua tio

n m od

el in g

Be ije r et

al .( in

pr es s)

H RM

J Cr iti ca lr ev ie w

of th e m ea su re m en t of

H R

pr ac tic es

(e m pl oy ee

vs m an ag er ) us ed

Li te ra tu re

re vi ew

138 Y. WANG ET AL.

in th e pa pe rs pu

bl is he d be tw ee n

20 00

an d 20 17

Pe rc ei ve d H R St re ng

th D or en bo

sc h et

al .

(2 00 6)

M R

Co ns en su s on

an d le gi tim

ac y of

th e H R

m es sa ge

(1 5- ite m

on co ns en su s an d

20 -it em

on le gi tim

ac y de ve lo pe d

fr om

Bo se lie

et al ., 20 05 ;D

el er y &

D ot y, 19 96 ;S an de rs

& Va n de r Ve n,

20 04 ;T su i&

W an g,

20 02 )

Co ns en su s an d le gi tim

ac y

of th e H R m es sa ge

Co m m itm

en t st re ng

th D ut ch

ho sp ita ls

H ie ra rc hi ca l

lin ea r m od

el in g

Sa nd

er s, D or en bo

sc h,

et al .( 20 08 )

PR

D is tin

ct iv en es s (7 -it em

ab ou

t re le va nc e

an d 10 -it em

ab ou

t au th or ity

de ve lo pe d fr om

U lri ch ,1

99 7) ;

Co ns is te nc y (w ith

in -r es po

nd en t

ag re em

en t on

H RM

ite m s)

D is tin

ct iv en es s, co ns is te nc y

an d co ns en su s

Af fe ct iv e co m m itm

en t

Cl im at e st re ng

th D ut ch

ho sp ita l

H ie ra rc hi ca ll in ea r

m od

el in g

Ko st er

(2 01 1)

IJ H RM

Th e in te ns ity

an d co ns is te nc y of

pe rc ei ve d H R pr ac tic es

(It em

s ab ou

t em

pl oy ee

pe rc ep tio

ns of

H R pr ac tic es

fr om

ES S an d ca lc ul at ed )

Th e in te ns ity

an d

co ns is te nc y of

pe rc ei ve d H R pr ac tic es

O rg an iz at io na lc om

m itm

en t

an d w or k ef fo rt

O rg an iz at io ns

in 26

Eu ro pe an

co un

tr ie s

H ie ra rc hi ca ll in ea r

m od

el in g

Li et

al .( 20 11 )

IJ H RM

D is tin

ct iv en es s: 5- ite m

sc al e (F re nk el

et al ., 20 12 ); Co

ns is te nc y: w ith

in -

re sp on

de nt

ag re em

en t on

H RM

ite m s;

Co ns en su s: 4- ite m

sc al e (D el m ot te ,D

e W in ne ,G

ilb er t, & Se ls ,2

00 7)

D is tin

ct iv en es s, co ns is te nc y,

an d co ns en su s

Em pl oy ee

w or k sa tis fa ct io n,

vi go

r, an d in te nt io n

to qu

it

Cl im at e st re ng

th Ch

in es e ho

te l

H ie ra rc hi ca l

lin ea r m od

el in g

D el m ot te

et al .( 20 12 )

IJ H RM

D is tin

ct iv en es s: 10 -it em

;C on

si st en cy :

9- ite m ;C

on se ns us :1

2- ite m

Be lg ia n pr iv at e

se ct or

co m pa ni es

Sc al e de ve lo pm

en t

& va lid at io n

Eh rn ro ot h an d

Bj or km

an (2 01 2)

JM S

Vi si bi lit y (In

te ns ity ), re le va nc e

(m ea ni ng

fu ln es s) ,&

va lid ity

of H R

sy st em

(8 -it em

on vi si bi lit y, 8- ite m

on re le va nc e,

an d 16 -it em

on va lid ity )

Vi si bi lit y, re le va nc e,

an d va lid ity

Em pl oy ee

cr ea tiv ity ,w

or k

lo ad ,a nd

jo b

pe rf or m an ce

Ps yc ho

lo gi ca l

em po

w er m en t

IT co ns ul ta nt

co m pa ny

in Sw

ed en

St ru ct ur al

eq ua tio

n m od

el in g

Fr en ke l, Li ,e

t al .

(2 01 2)

BJ IR

D is tin

ct iv e an d co ns is te nc y (1 0-

ite m

sc al e)

D is tin

ct iv e an d co ns is te nc y

N eg at iv e em

ot io ns

an d

em ot io na le

xh au st io n

D is tr ib ut iv e, pr oc ed ur al ,

an d in te ra ct io na lj us tic e

M an uf ac tu rin

g or ga ni za tio

ns St ru ct ur al

eq ua tio

n m od

el in g

Fr en ke l, Re st ub

og ,a nd

Be dn

al l( 20 12 )

IJ H RM

D is tin

ct iv en es s, co ns is te nc y, an d

co ns en su s (1 2- ite m

sc al e)

D is tin

ct iv en es s, co ns is te nc y,

an d co ns en su s

D is cr et io na ry

w or k ef fo rt

an d co -w or ke r

as si st an ce

Pr oc ed ur al

ju st ic e,

or ga ni za tio

n id en tif ic at io n,

an d

di st rib

ut iv e ju st ic e

An al co ho

lic be ve ra ge

fir m

an d a

te le co m m un

ic at io ns

co m pa ny

St ru ct ur al

eq ua tio

n m od

el in g

Pe re ira

an d G om

es (2 01 2)

IJ H RM

St re ng

th of

th e H R sy st em

(4 2- ite m

fr om

Co el ho

et al ., 20 15 )

St re ng

th of

th e H R sy st em

an d tr an sf or m at io na l

le ad er sh ip

O rg an iz at io na lp

er fo rm

an ce

O rg an iz at io na lc lim

at e

A m ul tin

at io na l

co m pa ny

Pa th

an al ys is

D e W in ne

et al .( 20 13 )

IJ H RM

D is tin

ct iv en es s: 10 -it em

sc al e;

Co ns is te nc y: 9- ite m

sc al e; Co

ns en su s:

12 -it em

sc al e

Pe rc ei ve d ef fe ct iv en es s in

th e fo ur

H R ro le s;

D is tin

ct iv en es s,

co ns is te nc y,

an d co ns en su s

Pe rc ei ve d ge ne ra l

ef fe ct iv en es s of

th e

H R de pa rt m en t

Be lg ia n pr iv at e

se ct or

co m pa ni es

M ul tip

le lin ea r

Re gr es si on

(c on tin ue d)

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 139

Ta bl e 1.

Co nt in ue d.

St ud

y Co

nc ep tu al iz at io n of

Em pl oy ee

Pe rc ep tio

ns of

H R Pr ac tic es

In de pe nd

en t Va ria bl es

D ep en de nt

Va ria bl es

M od

er at or s

M ed ia to rs

Co nt ex t

D at a An

al ys is

Fa rn da le

an d Ke lli he r

(2 01 3)

H RM

Ju st ic e in

pe rf or m an ce

ap pr ai sa l( 5- ite m

de ve lo pe d fr om

Fo lg er

& Ko

no vs ky ,

19 89 ;S ka rli ck i, Fo lg er ,&

Te sl uk ,1

99 9)

Em pl oy ee

pe rc ei ve d ju st ic e

in pe rf or m an ce

ap pr ai sa l

Af fe ct iv e co m m itm

en t

Tr us t in

se ni or

m an ag em

en t

Fi rm

s in

th e U K

H ie ra rc hi ca ll in ea r

m od

el in g

Re dm

on d (2 01 3)

H RM

Re le va nc e an d fa irn

es s (6 -it em

) Re le va nc e an d ju st ic e of

co m pe te nc y m od

el Jo b pe rf or m an ce ,

or ga ni za tio

na l

ci tiz en sh ip

be ha vi ou

r, an d em

pl oy ab ili ty

Ex ch an ge

re la tio

ns hi p

N or w eg ia n co ns ul tin

g, ba nk in g,

& pr op

er ty

m an ag em

en t

or ga ni za tio

n

M ul tip

le lin ea r

Re gr es si on

Be dn

al l, Sa nd

er s, an d

Ru nh

aa r (2 01 4)

AM LE

D is tin

ct iv en es s, co ns is te nc y, an d

co ns en su s (1 6- ite m

ad ap te d fr om

D el m ot te

et al ., 20 12 )

Pe rf or m an ce

ap pr ai sa lq

ua lit y

Pa rt ic ip at io n in

in fo rm

al le ar ni ng

ac tiv iti es

D is tin

ct iv en es s,

co ns is te nc y,

& co ns en su s

D ut ch

vo ca tio

na l

ed uc at io n

tr ai ni ng

sc ho

ol s

H ie ra rc hi ca ll in ea r

m od

el in g

Pi en in g et

al .( 20 14 )

H RM

Em pl oy ee

pe rc ei ve d H R pr ac tic es

(e .g .,

vi si bi lit y of

H R pr ac tic es )

In te nd

ed H R pr ac tic es

(e .g .,

ag re em

en t am

on g H R

de ci si on

-m ak er s)

Pe rc ei ve d H R pr ac tic es

(e .g ., vi si bi lit y of

H R pr ac tic es )

O rg an iz at io n’ s ab ili ty

to le ve ra ge

its re so ur ce ;e m pl oy ee

ex pe ct at io ns

of H RM

Im pl em

en te d H R pr ac tic es

(e .g ., de gr ee

of ce nt ra liz at io n of

th e

H R fu nc tio

n)

H ea lth

an d so ci al se rv ic e

or ga ni za tio

ns in

G er m an y

M ul tip

le ca se

st ud

y

Su m el iu s et

al .( 20 14 )

H RM

Vi si bi lit y, va lid ity ,p

ro ce du

ra la nd

di st rib

ut iv e ju st ic e of

pe rf or m an ce

ap pr ai sa l( PA

)

e. g. ,t op

m an ag em

en t

in te rn al iz at io n of

PA ,

su pe rv is or

co m m itm

en t

to PA

pr oc es s, an d pa st

ex pe rie nc e of

PA

Pe rc ei ve d vi si bi lit y, va lid ity ,

pr oc ed ur al

an d

di st rib

ut iv e ju st ic e of

PA

N or di c M N Cs

M ul tip

le ca se

st ud

y

H ef fe rn an

an d D un

do n

(2 01 6)

H RM

J

D is tr ib ut iv e ju st ic e (9 -it em

de ve lo pe d

fr om

Co lq ui tt ,2

00 1) ,p

ro ce du

ra l

ju st ic e (9 -it em

de ve lo pe d fr om

Sw ee ne y & M cF ar lin ,1

99 3;

Ty le r &

Li nd

,1 99 2)

an d in te ra ct io na lj us tic e

(1 0- ite m

de ve lo pe d fr om

Co lq ui tt ,2

00 1)

H PW

S Jo b sa tis fa ct io n,

af fe ct iv e

co m m itm

en t,

w or k pr es su re

D is tr ib ut iv e, pr oc ed ur al ,

an d in te ra ct io na lj us tic e

Iri sh

fir m s

H ie ra rc hi ca l

lin ea r m od

el in g

Sa nd

er s an d Ya ng

(2 01 6)

H RM

D is tin

ct iv en es s, co ns is te nc y, an d

co ns en su s (m

an ip ul at io ns

an d

D el m ot te

et al ., 20 12 )

H ig h co m m itm

en t- H RM

Af fe ct iv e co m m itm

en t an d

in no

va tiv e be ha vi ou

r Em

pl oy ee

H RM

st re ng

th O rg an iz at io n in

th e

N et he rla nd

s H ie ra rc hi ca ll in ea r

m od

el in g an d

sc en ar io -

ba se d ex pe rim

en t

Ba lu ch

(2 01 7)

IJ H RM

Pe rc ei ve d di st in ct iv en es s, co ns is te nc y,

an d co ns en su s of

H RM

Em pl oy ee

pe rc ei ve d

H R st re ng

th W el l-b

ei ng

N on

-p ro fit

or ga ni za tio

ns in

th e U K

M ul tip

le ca se

st ud

y

Be dn

al la nd

Sa nd

er s

(2 01 7)

H RM

D is tin

ct iv en es s, co ns is te nc y, an d

co ns en su s (1 6- ite m

ad ap te d fr om

D el m ot te

et al ., 20 12 )

Fo rm

al le ar ni ng

op po

rt un

ity Sh or t- an d lo ng

-t er m

pa rt ic ip at io n in

in fo rm

al le ar ni ng

ac tiv iti es

Em pl oy ee

pe rc ei ve d

H RM

sy st em

st re ng

th

M id dl e sc ho

ol s in

th e

N et he rla nd

s La te nt in te rc ep t m od

el s

Fa rn da le

an d Sa nd

er s

(2 01 7)

IJ H RM

D is tin

ct iv en es s, co ns is te nc y, & co ns en su s

Pe rc ei ve d H R st re ng

th Em

pl oy ee

ou tc om

e Cu

ltu ra lv al ue s an d

cu ltu

ra l

tig ht ne ss /lo

os en es s

Co nc ep tu al pa pe r

H au ff et

al .( 20 17 )

H RM

H RM

sy st em

st re ng

th (7 -it em

de ve lo pe d

ba se d on

O st ro ff & Bo

w en ,2

00 0)

H RM

ta rg et

ac hi ev em

en t

(e .g ., em

pl oy ee

O rg an iz at io ns

in G er m an y

Re gr es si on

an al ys is

140 Y. WANG ET AL.

H RM

sy st em

st re ng

th an d

nu m be r of

im po

rt an t

H RM

ta rg et

co m m itm

en t, hi gh

pe rf or m an ce )

Sa nd

er s et

al .( 20 18 )

H RM

D is tin

ct iv en es s, co ns is te nc y & co ns en su s

(1 5- ite m ,f ro m

Co el ho

et al ., 20 15 )

Pe rf or m an ce -b as ed

re w ar d

In no

va tiv e be ha vi ou

r Em

pl oy ee

pe rc ei ve d

H R st re ng

th an d

un ce rt ai nt y

av oi da nc e of

th e co un

tr y

O rg an iz at io ns

fr om

di ffe

re nt

in du

st rie s in

10 co un

tr ie s

H ie ra rc hi ca l

lin ea er

m od

el in g

Al fe s et

al .( 20 19 )

H RM

Em pl oy ee

pe rc ep tio

ns of

H R sy st em

st re ng

th (9 -it em

fr om

Fr en ke l, Li ,

et al ., 20 12 )

Em pl oy ee

pe rc ep tio

ns of

H R sy st em

st re ng

th En ga ge m en t in

ch an ge -

su pp

or tiv e be ha vi or

St at e po

si tiv e af fe ct ;

pe rc ei ve d or ga ni za tio

na l

su pp

or t, an d co pi ng

w ith

or ga ni za tio

na l

ch an ge

Po lic e fo rc e in

th e U K

St ru ct ur al

eq ua tio

n m od

el in g

Ch ac ko

an d Co

nw ay

(2 01 9)

H RM

J

Em pl oy ee

pe rc ei ve d ev en t- si gn

al le d H RM

sy st em

st re ng

th (1 2- ite m

ad ap te d

fr om

D el m ot te

et al ., 20 12 )

H R ev en t va le nc e

D ai ly w or k en ga ge m en t

Em pl oy ee

pe rc ei ve d ev en t-

si gn

al le d H RM

sy st em

st re ng

th an d cl ea r

ex pe ct an cy

pe rc ep tio

ns

Cu st om

er -f ac in g,

ad m in is tr at iv e, an d

pr of es si on

al st af f at

a Lo nd

on lo ca la

ut ho

rit y

Re gr es si on

us in g

cl us te r- ro bu

st st an da rd

er ro rs

H R A tt ri bu

ti on

N is hi ie

t al .( 20 08 )

Pp sy ch

Em pl oy ee

in te rn al

(c om

m itm

en t- fo cu s

an d co nt ro lf oc us ) an d ex te rn al

(u ni on

co m pl ia nc e)

H R at tr ib ut io n

(2 5- ite m )

Em pl oy ee

in te rn al an d

ex te rn al

H R at tr ib ut io n

Cu st om

er sa tis fa ct io n

Af fe ct iv e co m m itm

en t,

sa tis fa ct io n,

an d O CB

A se rv ic e fir m

St ru ct ur al

eq ua tio

n m od

el in g

Fo nt in ha

et al .( 20 12 )

PR Em

pl oy ee

in te rn al

H R at tr ib ut io n (6 -it em

fo r co m m itm

en t- fo cu s an d 6- ite m

fo r

co nt ro lf oc us )

Co m m itm

en t- fo cu se d H R

at tr ib ut io n an d co nt ro l-

fo cu se d H R at tr ib ut io n

Af fe ct iv e co m m itm

en t to

th e cl ie nt

or ga ni za tio

n Af fe ct iv e co m m itm

en t to

th e ou

ts ou

rc in g

co m pa ny

Po rt ug

ue se

ou ts ou

rc in g

co m pa ni es

in th e

in fo rm

at io n

te ch no

lo gi es

se ct or

St ru ct ur al

eq ua tio

n m od

el in g

W eb st er

an d Be eh r

(2 01 3)

JO B

Em pl oy ee

pr om

ot io n cr ite ria

at tr ib ut io n

(1 6- ite m

fo r pe rf or m an ce -b as e an d

no n- pe rf or m an ce -b as e m ob

ili ty )

Re ce iv ed

a pr om

ot io n

Ta sk

pe rf or m an ce

an d O CB

Eg o- de fe ns iv en es s

Pr om

ot io na lj us tic e,

or ga ni za tio

na l

co m m itm

en t, an d

pr om

ot io n

cr ite ria

at tib

ut io n

Al um

ni ,M

BA an d EM

BA st ud

en ts

of on

e la rg e

un iv er si ty

in th e

M id w es te rn

U .S .A

St ru ct ur al

eq ua tio

n m od

el in g

Va n de

Vo or de

an d

Be ije r (2 01 5)

H RM

J

Th e m ea ni ng

s em

pl oy ee s at ta ch

to H PW

S (1 0- ite m

fo r em

pl oy ee

w el l-

be in g an d ge t th e m os t w or k ou

t of

em pl oy ee s)

H PW

S Co

m m itm

en t an d jo b st ra in

W el l-b

ei ng

fo cu se d an d

pe rf or m an ce

fo cu se d

H R at tr ib ut io ns

D ut ch

or ga ni za tio

ns H ie ra rc hi ca ll in ea r

m od

el in g

Sh an tz

et al .( 20 16 )

H RM

J Pe rf or m an ce

an d co st

at tr ib ut io ns

on tr ai ni ng

,s el ec tio

n, re w ar d,

pe rf or m an ce

ap pr ai sa l, an d

pa rt ic ip at io n (1 0- ite m

de ve lo pe d

fr om

N is hi ie

t al ., 20 08 )

Pe rf or m an ce

an d

co st

at tr ib ut io ns

Em ot io na le

xh au st io n

Jo b in vo lv em

en t

an d w or k ov er lo ad

A co ns tr uc tio

n an d

co ns ul ta nc y

or ga ni za tio

n in

th e U K

Pa th

an al ys is

H ew

et t et

al .( 20 18 )

JO B

A ne w

m ea su re

de si gn

ed fo r H R

at tr ib ut io n fo r pu

rp os e of

or ga ni za tio

na lw

or kl oa d (1 8- ite m )

In fo rm

at io n (p er ce pt io ns

of di st rib

ut iv e an d

pr oc ed ur al

fa irn

es s)

Co m m itm

en t an d

co nt ro la

tt rib

ut io ns

Be lie f (c yn ic is m ) an d

m ot iv at io n

(p er so na l

re le va nc e)

Ac ad em

ic s in

th e U K

M ul tip

le lin ea r re gr es si on

a A M J (A ca de m y of

M an ag em

en t Jo ur na l);

AM LE

(A ca de m y of

M an ag em

en t Le ar ni ng

an d Ed uc at io n) ; AP

JH R (A si a Pa ci fic

Jo ur na l of

H um

an Re so ur ce s) ; BJ IR

(B rit is h Jo ur na l of

In du

st ria l

Re la tio

ns );

H P

(H um

an Pe rf or m an ce );

H RM

(H um

an Re so ur ce

M an ag em

en t) ; H RM

J (H um

an Re so ur ce

M an ag em

en t Jo ur na l);

IJ H RM

(In te rn at io na l Jo ur na l of

H um

an Re so ur ce

M an ag em

en t) ; IR

(In du

st ria l Re la tio

ns );

JA P

(J ou

rn al

of Ap

pl ie d

Ps yc ho

lo gy );

JM S

(J ou

rn al

of M an ag em

en t St ud

ie s) ; JO B

(J ou

rn al

of O rg an iz at io na l Be ha vi or );

JO M

(J ou

rn al

of M an ag em

en t) ;M

R (M

an ag em

en t Re vu e) ;P

ps yc h (P er so nn

el Ps yc ho

lo gy ); PR

(P er so nn

el Re vi ew

).

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 141

105) examine the ‘what’ of HR perception. Nearly half (49 out of 105) of the articles were published over the last five years, indicating the growth in this research over time. In terms of outlet, International Journal of Human Resource Management (38), Human Resource Management (23) and Human Resource Management Journal (14) emerged as three most important journals for employee HR perception research.

Common assumptions in employee HR perception research

Before reviewing research on the three components of employee HR per- ceptions research, we consider the major assumptions that underlie much of this literature stream. Despite the wide range of topics addressed, we identify several common assumptions on which the extant research is built. The first assumption is that HR practices function as a communication mechanism from employer to employee. Whether by design or by accident, HR practices deliver certain messages to employ- ees (Bowen & Ostroff, 2004). Messages can be embedded in HR content (the ‘what’) or in the way HR practices are implemented (the ‘how’). In this line of reasoning, employee HR perceptions encapsulate the messages employees, either individually or collectively, receive from their employ- ers by observing or experiencing HR practices. A second assumption is that employees may disagree with their employ-

ers regarding the types of HR practices implemented and the reason(s) behind the implementation of these practices. This premise distinguishes the HR perception literature from prior strategic HRM research. Strategic HRM studies tend to assume that top-level managers are aware of imple- mented HR practices. Therefore, they measure firm-level HR, often based on subjective responses from a single senior manager who is deemed to have more knowledge of HR practices than others in the organization including employees (Gerhart, Wright, Mahan, & Snell, 2000; Huselid & Becker, 2000). The employee HR perceptions literature explicitly acknowl- edges the potential disparity between HR practices perceived by managers and those perceived by employees, highlighting the importance of employ- ees’ subjective experience of HR as a driver of workplace outcomes. The third assumption underlying this field is the potential divergence

among employees in their perceptions of HR practices (Bowen & Ostroff, 2004). Employees may have idiosyncratic observations of the HR practices available in their organization because HR practices are designed differently across different groups of employees within an organization (Liao et al., 2009), or employees may consider certain HR practices as irrelevant to themselves, and so do not make themselves aware of their potential benefits or costs. Even within the same work

142 Y. WANG ET AL.

group, individuals may develop varied understandings about which HR practices are available to them and why such practices were introduced by the organization. This may be attributable to individual differences, such as personalities or experiences in prior jobs (Wright & Nishii, 2013), or social influences from colleagues (Jiang et al., 2017). In this line of reasoning, the interpersonal divergence of HR perception within an organization is not an error to be controlled for, but the phenomenon of interest that explains the effects of HR practices on outcomes.

The perceived ‘what’ of HR practices

Theoretical underpinning Studies of the perceived ‘what’ of HR practices concern the content of HR practices implemented in an organization as subjectively experienced by employees (e.g. Jiang et al., 2017). If HR practices are to influence employee outcomes, they must first exist in the minds of employees (Wright & Nishii, 2013) because cognition is a crucial precursor of sub- sequent attitudes and behaviors (Fiske & Taylor, 1991; Gray, Bougon, & Donnellon, 1985). Each HR practice or a set of HR practices (HR bun- dles) is deemed to signal its own messages to employees. For instance, high-performance work practices are assumed to convey that an employer is sincerely supportive and committed to his or her employees (Alfes, Shantz, Truss, & Soane, 2013; Choi, 2019). If such HR practices signal an employer’s goodwill, then they should induce positive employee reactions. This logic is justified by established theories of social exchange (Cropanzano & Mitchell, 2005) and psychological contract theory (Rousseau, 1995; Rousseau & Tijoriwala, 1998). The basic argument underlying this approach is that the goodwill that underlies the delivery of HR practices (such as high-performance work systems) will encourage employees to reciprocate by displaying positive workplace behaviors.

Measurement The measurement items used in the what of HR perception literature are often similar to HR practice measures previously used to capture firm- level HR practices from senior managers. Beijer et al. (in press) report that two sets of approaches are used when designing the ‘what’ of HR perception measures. The first approach compares descriptive and evalu- ative measures of HR practices. Descriptive measures seek to capture the reality of HR practices as cognitively recognized and remembered by employees. Employees might be asked whether the selection process involves interview panels (Edgar & Geare, 2005) or how many hours of formal training are offered to employees (Kehoe & Wright, 2013).

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 143

Evaluative measures, on the other hand, ask employees about their assess- ment or evaluation of HR constructs. For example, researchers have asked employees to consider whether “a rigorous selection process is used to select new recruits” (Jensen et al., 2013) or whether “staff are given mean- ingful feedback regarding their individual performance” (Alfes, Shantz, et al., 2013). After reviewing this field, Beijer et al. (in press) concluded that evaluative HR measures appear to dominate the literature. Based on our review, we identify additional approaches that have been

used when measuring the ‘what’ of HR perception. Specifically, we dis- tinguish observation-based versus experience-based HR measures. Observation-based HR measures capture employees’ perception of HR availability by placing respondents as third-person observers. An example of observation-based HR perception measurement asks employees whether they observe the occurrence of formal evaluation in their own work unit (Kehoe & Wright, 2013). In contrast, experience-based HR measures are designed to capture HR practices as directly experienced by the responding employees. For example, one measure asks whether respondents themselves have received formal performance evaluation (Conway, Fu, Monks, Alfes, & Bailey, 2016). Table 2 presents example questionnaire items that reflect these two distinct approaches.

Table 2. Examples of perceived “what” of HR practices measures. Observation-based measure Experience-based measure

Descriptive Selection: Interview panels are used during the recruitment and selection process in this organization (Edgar & Geare, 2005)

Selection: I am administered many assessment tools—including personality, aptitude, and skill tests—prior to employment in our firm (Liu et al., 2017)

Development: On average, how many hours of formal training do associates in this job receive each year? (Kehoe & Wright, 2013)

Development: In the past 12 months, have you received any classroom training related to your job? (Yanadori & Van Jaarsveld, 2014)

Performance management: At least once a year associates in this job receive a formal evaluation of their performance (Kehoe & Wright, 2013)

Performance management: I receive a formal evaluation of my performance at least once a year (Conway et al., 2016)

Rewards: Our company rewards employees for sharing information (Andreeva et al., 2017)

Rewards: The rewards I receive include fringe benefits (bonuses) in addition to a fixed salary (Castanheira & Story, 2016)

Evaluative Selection: A rigorous selection process is used to select new recruits (Jensen et al., 2013)

Selection: I think that the selection method of promotion is successful (Yamamoto, 2013)

Development: This organization puts in a great deal of effort in organizing for internal career development (Kuvaas, 2008)

Development: How satisfied do you feel with the level of training you receive in your current job? (Katou et al., 2014)

Performance management: Staff are given meaningful feedback regarding their individual performance, at least once each a year (Alfes, Shantz, et al., 2013)

Performance management: The criteria of performance appraisal are clear to me (Castanheira & Story, 2016)

Rewards: Individuals in my work unit receive special recognition for unique contributions (Li et al., 2017)

Rewards: The rewards I get from this company are associated, at least in part, to my performance (Castanheira & Story, 2016)

144 Y. WANG ET AL.

We argue, based on our review, that different types of HR perception measures produce somewhat different empirical results. In general, evalu- ative- rather than descriptive-based measures, and experience- rather than observation-based measures, tend to show stronger relations with employee outcomes. One potential reason for such findings may be the performance-cue effect (Lord, Binning, Rush, & Thomas, 1978; Shondrick, Dinh, & Lord, 2010), which occurs when a measurement method provides a prompt that facilitates the rater’s retrieval of performance-related infor- mation from his or her memory. In such a situation, evaluators’ responses could be biased toward the given performance cues (Binning, Zaba, & Whattam, 1986). This indicates the need to be careful when interpreting the results of the what of HR perception studies in the literature, as they could be a product of the measures used. We would encourage future research to carefully consider whether substantive or performance cue effects are in operation when interpreting the results of their study.

Major findings A major concern in this research stream has been demonstrating that HR content as perceived by employees may not be the same as HR con- tent as perceived by their managers. Empirical studies confirm that HR perceptions vary across the organizational hierarchy. For instance, Liao et al. (2009) indicate that the HR practices reported by employees were not as similar to those of managers as the latter would like them to be. Across studies of perceived HR content (Ang, Bartram, McNeil, Leggat, & Stanton, 2013; Ang et al., 2017; Aryee et al., 2012; Choi, 2019; Den Hartog et al., 2013; Elorza, Aritzeta, & Ayestaran, 2011; Elorza, Harris, Aritzeta, & Balluerka, 2016; Jensen et al., 2013; Jiang et al., 2017; Li & Frenkel, 2017; Liao et al., 2009; Vermeeren, 2014), the average correl- ation between manager and employee perceptions of HR content is mod- erate (r¼ 0.37 on average). However, the size of the HR perception gap between managers and employees may differ. For example, studies have found that managers’ communication quality (Den Hartog et al., 2013) and hukou status similarity (Li & Frenkel, 2017) may enhance the per- ceptual congruence between managers and employees. Employee perceptions of the ‘what’ of HR affect a number of employee

outcomes, including organizational commitment (Edgar & Geare, 2005; Macky & Boxall, 2007), turnover intentions (Kuvaas, 2008), job satisfaction (Macky & Boxall, 2008), early retirement (Herrbach, Mignonac, Vandenberghe, & Negrini, 2009), service performance (Liao et al., 2009), organizational citizenship behavior (Alfes, Shantz, et al., 2013), knowledge sharing (Foss, Pedersen, Reinholt Fosgaard, & Stea, 2015), and emotional exhaustion (Conway et al., 2016). Studies also reveal several moderators that

THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 145

may amplify the relationship between perceived HR content and employee outcomes such as employees’ individual characteristics (Li, Deng, Leung, & Zhao, 2017), organizational characteristics (Liu, Gong, Zhou, & Huang, 2017), and perceived organizational support (Kuvaas, 2008). In sum, the ‘what’ of employee HR perception literature concerns the

content of HR practices as perceived by employees and the impact of these perceptions on workplace outcomes. This literature complements prior strategic HRM literature by demonstrating the mediating mecha- nisms through which HR practices are translated into employee out- comes. One of the limitations of this research is the inconsistency in measuring employees’ perceived HR content. Studies use a diverse array of HR perception measures (descriptive, evaluative, observation-based, and experience-based) without properly reflecting on the potential influ- ence of the choice of measurement on study results. Another limitation of research in the area is the relative lack of interest on the determinants of the perceived content of HR, especially organizational-level antece- dents. Future research should focus on the potential influence of the dif- ferent types of HR content measures on study results.

The perceived ‘how’ of HR practices

Theoretical underpinnings Employee perceptions of the ‘how’ of HR practices involve employee views of how HR practices are designed and implemented (Delmotte, De Winne, & Sels, 2012). This research stream is distinctive from the studies of the ‘what’ of HR practices in the sense that the focus is about the pro- cess through which HR messages are delivered to organizational mem- bers. A central assumption of research on the ’how’ of HR practices is that even a well-intended HR system may not produce its best possible outcomes if employees fail to make sense of it in a coherent, consistent and unified way. The dominant concept in this literature is “HR strength”. A strong HR

system ensures that employees’ collective understanding of HR practices is well aligned to the intentions of management (Bowen & Ostroff, 2004). The notion of HR strength has its foundations in situational strength research (Mischel, 1973; Bowen & Ostroff, 2004; Katou, Budhwar, & Patel, 2014; Ostroff & Bowen, 2000). In a strong situation, employees share a common understanding of the organization’s policies, practices, procedures, and goals, and the behaviors that are expected and rewarded (Bowen & Ostroff, 2004). In contrast, in a weak situation, employees experience a high degree of ambiguity regarding what is being expected in their organizational lives, which produces a wide variability

146 Y. WANG ET AL.

in the workplace attitudes and behaviors displayed (Ostroff & Bowen, 2000). Researchers have argued that a strong situation influences employee attitudes and behaviors, and therefore, that it is critical that features of an HR system allow for the creation of a strong situation. Bowen and Ostroff (2004) name nine features of HR practices that can

foster a strong situation in which unambiguous messages about an organization’s intended attitudes and behaviors can be sent to employees. Building on Kelley’s (1973) covariation theory, these authors suggest that an HR system will result in a strong situation when it is distinctive, con- sistent, and consensus generating (Bowen & Ostroff, 2004). Specifically, they elucidate four characteristics that can foster distinctiveness: visibility, understandability, legitimacy of authority, and relevance; three character- istics that establish consistency: instrumentality, validity, and consistent HR messages; and two characteristics that can result in consensus: agree- ment among principal HR decision makers and fairness. In short, HR strength is intrinsically tied to the features of organizational practices that result in employees developing shared perceptions of organization- ally desired behaviors. One of the theoretical challenges yet to be resolved in this area is the

unit of analysis adopted when considering HR strength. In their seminal study, Bowen and Ostroff (2004) proposed that HR strength is an organ- izational-level construct that mediates between the HRM system and firm-level performance. However, most studies in this area operational- ized HR strength at the individual-level and often linked it to individual- level outcomes. Ostroff and Bowen (2016: p. 198) expressed concerns about this trend and argued that the individual-level construct of “perceptions of HRM system strength”, although meaningful in its own right, should be differentiated from the collective-level construct of “HRM system strength”.

Measurement Studies have used a variety of methods to measure HR strength as per- ceived by individuals, including assessing the within-person variability of HR ratings to measure consistency (e.g. Sanders, Dorenbosch, & de Reuver, 2008; Li, Frenkel, & Sanders, 2011). A study by Delmotte et al. (2012) was one of the first to design a scale to measure perceived HR strength. More recently, Coelho, Cunha, Gomes, and Correia (2015), and Hauff, Alewell, and Hansen (2017) designed scales to measure perceived HR strength. Although these scales are widely used in empirical studies, Ostroff and Bowen (2016) concluded that the field still lacks a compre- hensive and sophisticated measure of HR strength (p. 199; see also Hewett et al., 2018; Sanders et al., 2014). Until a widely recognized

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measure of HR strength at different levels of analysis is developed, it will be difficult to systematically accumulate knowledge on the effects of the ‘how’ of HR practices (Ostroff & Bowen, 2016).

Empirical findings In general, studies show that employee-perceived HR strength is associ- ated with positive employee outcomes such as organizational commit- ment (Farndale & Kelliher, 2013), job satisfaction (Heffernan & Dundon, 2016), vigor (Li et al., 2011), well-being (Baluch, 2017), task performance (Redmond, 2013), creativity (Ehrnrooth & Bjorkman, 2012), organiza- tional citizenship behavior (Frenkel, Restubog, & Bednall, 2012), HR effectiveness (De Winne, Delmotte, Gilbert, & Sels, 2013), and organiza- tional performance (Pereira & Gomes, 2012) while being negatively related to turnover intentions (Li et al., 2011) and negative emotions (Frenkel, Li, et al., 2012). While some studies have identified perceived HR strength as a moder-

ator of relationships between HR practices and outcomes (Bednall & Sanders, 2017; Sanders & Yang, 2016; Sanders et al., 2018), other studies have identified HR strength as an outcome. For instance, Sumelius, Bj€orkman, Ehrnrooth, M€akel€a, and Smale’s (2014) research indicated that employees’ prior experiences of performance appraisal influence their perception of HR strength. They also reported that how employees per- ceive HR strength is influenced by their relationship to managers. In sum, while the work of Bowen and Ostroff (2004, 2016) reflects an

impressive theoretical development that has moved HRM research fur- ther by emphasizing the importance of employees’ understandings of the organizational context, several concerns currently limit research in this area. In particular, the lack of consensus as to the level at which the HR strength construct should be assessed, and the lack of a comprehensive and sophisticated measure(s) of HR strength, hinders progress in the field. Future research needs to focus on building theory around HR strength at the higher (team or organizational) level while developing valid and reliable measures at all levels of analysis. In addition, while some studies have examined HR strength as a moderator, studies exam- ining HR strength as a mediator are virtually nonexistent. As such, researchers need to consider HR strength as a mediator between HR practices and outcomes. Another limitation of research in this area is the lack of knowledge about the determinants of HR strength. Finally, with few exceptions, HR strength research follows a universalistic approach. In a theoretical article, however, Farndale and Sanders (2017) challenge this approach and propose that the effects of employee perceptions of HR strength may depend on the cultural values across nations. Building

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a contingency perspective, they theorize HR strength could be more effective when aligned with certain cultural values of employees. This issue needs to be theoretically and empirically considered in different cross-national contexts.

The perceived ‘why’ of HR practices

Theoretical underpinnings Employees’ perceived ‘why’ of HR practices refers to their causal explana- tions regarding management’s motivations for implementing particular HR practices (Nishii, Lepak, & Schneider, 2008). The perceived ‘why’ of HR practices is distinctive from the perceived ‘what’ and ‘how’ of HR practices. Specifically, employees with the same perceived HR content and HR strength may disagree with each other about why those HR practices were put into place. In their seminal work, Nishii et al. (2008) propose multiple types of HR attributions. Internal HR attributions involve employees’ beliefs that their company is responsible for its HR decisions. Internal HR attributions can be further divided into those associated with a firm’s business needs and strategies (cost control or quality enhancement) or the firm’s employee-related philosophy (employee-well-being orientation or employee-exploitation orientation). External HR attributions are based on the view that the implementation of HR practices is a result of complying with pressure from outside the company (such as trade unions or labor legislation). This multi-faceted categorization of HR attribution emerged as a dominant framework to conceptualize employees’ interpretation of their company’s motives behind HR practices. An important assumption in this research stream is employees’ personifi-

cation of their organization, which refers to the phenomenon of “anthromorphism”. This phenomenon involves the process of attributing humanlike qualities to nonhuman entities (Epley, Waytz, & Cacioppo, 2007). Through anthromorphism, employees consider their company as a humanlike agent who takes intentional actions (Ashforth, Schinoff, & Brickson, in press). When a company is personified, employees interpret its HR practices in the same way they interpret other people’s behaviors (Coyle- Shapiro & Shore, 2007). Then, HR practices are subject to employees’ attri- butional processes through which employees formulate their interpretation about organization’s motivation(s) to implement such HR practices. Whether employees personify their organization is a matter of debate.

Ashforth et al. (in press) suggest that the anthromorphism is a prevalent phenomenon and has been embraced by several strands of management scholarship such as literature on perceived organizational support,

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psychological contract theory, and employee-employer relationship. If we build on this research, then it would appear that the HR attribution lit- erature is built on a valid assumption. However, Coyle-Shapiro and Shore (2007) warn that employees’ anthromorphism should not be taken for granted. Some employees may find it difficult to anthromorphize their organization due to personal or situational reasons. If this is the case, then the underlying assumption of the HR attribution perspective may have limited validity. We suggest that this assumption needs to be explicitly considered and tested in different organizational environments. In this way, researchers could then determine whether or when employ- ees personify their organization.

Measurement Nishii et al. (2008) developed the most widely used measurement tool in this stream of research. The authors discuss two archetypes: commitment HR attribution, which is composed of service quality enhancing and employee well-being attributions; and control HR attribution, which involves cost-reduction and exploitation. Although most empirical stud- ies directly borrow the Nishii et al. scales to evaluate employee attribu- tion, a few scholars have developed their own measures of HR attributions (e.g. Webster & Beehr, 2013).

Empirical findings Overall, commitment attributions, compared to control attributions, have a more noticeable positive impact on employee behaviors and attitudes (Nishii et al., 2008; Shantz, Arevshatian, Alfes, & Bailey, 2016; Van de Voorde & Beijer, 2015; Webster & Beehr, 2013). For example, research indicates that commitment attributions are positively related to employee commitment to the organization (Fontinha, Chambel, & De Cuyper, 2012) and job satisfaction (Nishii et al., 2008), while control attributions are positively related to work overload and emotional exhaustion (Shantz et al., 2016). Recently, Hewett, Shantz, and Mundy (2019) examine the antecedents of HR attributions, applying attribution theory (Kelley & Michela, 1980) to the influence of information (perceptions of distribu- tive and procedural fairness), beliefs (organizational cynicism), and motivation (perceived relevance) on employees’ interpretation of employ- er’s intent behind a workload model. The results of a study of 347 UK academics show that fairness and cynicism are important for the forma- tion of HR commitment attributions; these factors also interact in such a manner that distributive fairness buffers the negative effect of cynicism.

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In sum, in comparison to the ‘what’ and ‘how’ of employee percep- tions, research on the ‘why’ is less developed (Sanders, Guest, & Rodrigues, 2017). One area where research is especially needed is the determinants of HR attributions (Hewett et al., 2019). Many studies have identified multiple types of HR attributions and explored their impact on employee outcomes; however, knowledge is limited on how such employ- ees HR attributions are formulated. In addition, we need to develop a more nuanced understanding about the role of culture in employee HR attribution. Some empirical findings across nations appear to contradict each other. For instance, while Nishii et al. (2008) demonstrate that an exploitation attribution has a negative effect on employee and organiza- tional outcomes in the US, in other countries such as China, the Netherlands, and the United Kingdom it has a positive effect (Sanders et al., 2018). Future research is needed to address considerations con- cerning the role of cultural values on the ‘why’ of HR perceptions.

Future directions

Enrich the theories of HR communication

Perhaps most crucially, research on employee perceptions of HR practi- ces reveals that HR practices function as a mechanism of communication between employer and employees. An important direction for future research is to enrich the theoretical grounding of the literature by draw- ing from established theories shown to be useful in understanding the phenomenon of communication and information processing in manager- ial settings, particularly in the areas of information processing, signaling, and sensemaking. Information-processing theory suggests that individuals go through a

series of processes when they seek to understand their surrounding envi- ronments. Individuals first select and organize pieces of information from the environment and then attach their interpretation and judgment to the acquired information (Fiske & Taylor, 1991; Sanders, Yang, & Li, in press). The selection stage involves choosing the cues, signals, and stimuli to which they will pay attention. In the organization stage, indi- viduals assign new information to extant categories familiar to them and group information into meaningful, orderly, and useful sets. In the inter- pretation and judgment stage, individuals translate the organized infor- mation and give it meaning. In other words, individuals make a judgment about a person or event, and about the cause of the behavior. Information processing theory is highly relevant to employee HR per-

ceptions research. The selecting and organizing information stages relate to the pieces of HR information employees choose to recognize (the

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‘what’ of employee perception). Experimental research can provide new insights in how and why employee perceive the same HR practices in an organization differently. In addition to personality factors and the cul- tural value orientations of employees, saliency of different HR practices can play a role. For instance, HR practices related to maternity leave and flexible work can be expected to be more salient for pregnant employees and/or employees with young children. Other employees may not be aware of these HR practices and thus do not perceive them. Future research can examine which HR practices are more salient for which cat- egories of employees and why this is the case. Interpretation and judgment of the perceptions of HR practices

involve attribution processes (Kelley, 1973), and therefore are related to HR strength and HR attributions of employee perceptions of HR practi- ces (the ‘how’ and ‘why’ of employee perceptions). Future research on employee HR perceptions can readily draw from the rich stock of know- ledge in the information processing literature. For example, the moti- vated information processing perspective posits that individuals may see and understand different things depending on their underlying motiva- tions (De Dreu, 2007). This suggests that employee memory and aware- ness of HR content may be biased depending on individuals’ personal needs or other motivations (Sanders et al., in press). The theory of infor- mation processing could inspire researchers to explore the relationship between the ‘what’ aspect of HR perception and the ‘how’ and ‘why’ of HR attributions. This requires more studies that theoretically and empir- ically examine the interrelationship among these three dimensions of HR perceptions. Experimental research can be especially helpful to explore relationships as it can be assumed that perceptions, interpretation and attribution occur simultaneously. Experimental research can help to untangle these relationships. However, information processing theories can be criticized as very descriptive frameworks that do not provide a clear understanding of the different elements and the moderators that influence the relationship between the different elements and outcomes. So, in addition to further theoretical development, experimental research can provide the opportunity to unravel the different elements and learn more about how they influence different employee outcomes. Signaling theory can help us further explain the phenomenon of

employee perceptions of HR practices. Signaling theory concerns ways to reduce information asymmetry between the signaler, or information senders, and information receivers by way of signaling activities (Spence, 2002). The relevance of signaling theory to management research in gen- eral has been recognized with some authors identifying this theory as relevant to HR perception research (Connelly, Certo, Ireland, & Reutzel,

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2011; Ehrnrooth & Bjorkman, 2012; Bednall, Sanders, & Yang, 2019; Sanders et al., in press). This theory views HR practices as signals sent from managers towards employees. The theories on signals, signal send- ers, and signal receivers can further inspire HR perception research. For instance, future research can explore HR signaling dynamics in relation to different types of signalers, or the ‘who’ of HR perception. In today’s organization, the implementation of HR involves various actors including CEOs, HR professionals, and line managers (Op de Beeck, Wynen, & Hondeghem, 2016). In addition, the popularization of new HR delivery modes such as self-service and shared service is reshaping the sources from which employees receive HR messages (Huang & Martin-Taylor, 2013; Maatman, Bondarouk, & Looise, 2010). Future research may inves- tigate how employees’ attitudes and behaviors could vary depending on employees’ perceptions regarding the senders of HR messages. Future research can also draw from signaling theory when examining

the ‘when’ of HR practices, or the temporal aspect of HR implementation. According to signaling theory, a high level of signal frequency creates sig- nals that are more visible and efficacious (Connelly et al., 2011). This may suggest that the frequency of certain HR practices (for instance, the fre- quency of performance evaluations) may generate more positive employee responses. Signaling theory also suggests that signaler’s choice of timing and duration of signal matters (Connelly et al., 2011). Future research may build on these insights and examine how employees’ HR perceptions are influenced by the temporal aspect of HR implementation in terms of the perceived frequency of HR practice implementation. Finally, researchers can further investigate the nature of HR message

receivers, or the ‘whom’ of HR perception. Signaling theory highlights the role of the receiver in the signaling process. There are two receiver-related signaling processes, receiver attention and receiver interpretation. Receiver attention refers to “the extent to which receivers vigilantly scan the environ- ment for signals” (Connelly et al., 2011, p. 54). Receiver attention is particu- larly essential when signals are weak and inconsistent. Receiver interpretation captures “[T]he processes of translating signals into perceived meaning” (Connelly et al., 2011, p. 54). Receivers have their own agency to interpret noted signals. Therefore, the same signals could be interpreted differently by individual receivers. These insights suggest that the dynamics of HR signal- ing are affected by employees’ attention and interpretation. For instance, employees may pay varied levels of attention to certain HR practices depend- ing on their position, tenure, and employment status. Sensemaking can be defined as “[T]he processes whereby organizational

members translate an organizational event and construct a meaningful explanation for that event” (Greenberg, 1995, p.185). The sensemaking

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literature posits that employees collectively make sense of their organiza- tional lives, which affects their attitudes and behaviors. Research explicitly acknowledges that employee perception and judgment of an organiza- tional event are socially constructed. Therefore, it is not surprising that HR perception research recognizes the usefulness of sensemaking litera- ture. For instance, the “strong HR climate” concept (Bowen & Ostroff, 2004) is directly correlated with employees’ collective sensemaking. The relevance of the sensemaking literature provides opportunities for

future HR perception research. A promising future avenue is to examine the connections between broader institutional environments and employ- ees’ sensemaking in relation to HR practices. Employees’ sensemaking of their organizational practice is deeply affected by how the practice is conceived, legitimated, and categorized in broader societies (Maitlis & Christianson, 2014; Weber & Glynn, 2006). This suggests that future HR perception research can be enriched by drawing from the recent develop- ment of the micro-foundation of institutional theory.

Enlarge the empirical grounds across nations

A notable trend in the literature on employee HR perceptions is the increasing number of studies in non-Western contexts. This expansion in the range of empirical contexts is a welcome phenomenon. Such stud- ies confirm the cross-cultural generalizability of established knowledge on HR perceptions. However, there is a great need for research that explores the possible impact of cultural and institutional environments on the dynamics of employee HR perceptions. There could be meaning- ful cross-cultural differences in the way employees perceive the ‘what’, ‘how’, and ‘why’ of HR practices. Kim and Wright (2011) suggest that employee attributions of HR can vary across social and cultural environ- ments. They argue that the same set of HR practices may stimulate divergent employee attributions in different contexts. Job security policies may lead to varied attributional reactions across nations. In a country with a liberal labor market, where companies have a large scope of dis- cretion in hiring and firing, employees are likely to interpret job security as an expression of an employer’s goodwill, because it is not a legally mandated practice. However, in a country with strong employment pro- tection regulations, employees may interpret job security as an employ- er’s passive action of legal compliance. This difference in attributional processes may help explain why the same practice may lead to conflict- ing outcomes in different countries. Recently, Farndale and Sanders (2017; see also Sanders et al., 2018)

proposed that employee perceptions of the ‘how’ of HR may lead to

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varied outcomes depending on the national values of cultures and coun- tries. Building on a contingency perspective, they theorize that HR strength could be more effective when it aligns with certain cultural val- ues of employees. It is possible HR strength may have a stronger impact on employee outcomes in a low power distance culture where employees can easily voice their concerns to managers. Future studies that test and extend such ideas on cross-cultural differences are encouraged. A challenge for cross-national examination of employee HR perception

is to make informed choices between emic and etic approaches (Morris, Leung, Ames, & Lickel, 1999). The emic approach takes the perspective of cultural insiders, highlighting the experiences unique to a cultural group. Followers of this method place a high value on qualitative meth- ods such as ethnographic fieldwork to discover the indigenous view of the world. The etic approach takes the view of outsider and often focuses on a slice of human experience that can be legitimately compared across different cultures through standardized measures. Recognizing the differ- ence between emic and etic approaches is especially necessary when the subject of research is related to human cognition and judgment. Because HR perception studies center on employees’ cognitive and sub-

jective experiences, researchers will face unavoidable methodological chal- lenges when they set out to conduct HR perception research across different cultural settings. For instance, many studies of employee HR attri- bution develop their measurement items by directly borrowing from Nishii et al. (2008), which assumes that an external attribution captures union compliance. Such measurement items may have very different meanings in countries with different industrial relations systems, such as China, where the CEO can be a member of a trade union, or European countries, where national regulations dictate many high performance work practices (Paauwe & Boselie, 2003). Therefore, one cannot assume that the measure- ments in Nishii et al. (2008) will capture the same kinds of employee per- ceptions across different national contexts. In fact, Nishii et al. constructed their own measures through a series of processes to come up with context- ually valid items. Future research on employee HR perception will need to follow such an approach rather than uncritically borrow measurements items developed in different empirical contexts. This echoes the suggestion of Hewett et al. (2018) that emphasizes the potential benefits of qualitative inquiry in employee HR perception research.

Enhancing practical relevance

An increasing concern in HR scholarship is the practical relevance of the knowledge contained in the academic literature. Studies reveal a sizable

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gap between the academic community and HR practitioners (Cohen, 2007; Deadrick & Gibson, 2007; Rynes, Giluk, & Brown, 2007; Sanders, van Riemsdijk, & Groen, 2008). Nicolai and Seidl (2010) suggest the practical relevance of management knowledge can take three forms: instrumental relevance, conceptual relevance, and legitimating relevance. Instrumental relevance refers to the capacity of knowledge to solve prac- tical problems at hand. Conceptual relevance provides practitioners theor- etical frameworks with which they can better understand the reality of a workplace. Legitimating relevance is the role of scholastic knowledge as a mechanism to provide legitimacy to a person or a practice in the field. The most frequently used form of practical relevance in management lit- erature is that of conceptual relevance, often expressed in a statement about how the findings in a study can help practitioners better under- stand the unintended consequences of a phenomenon (Nicolai & Seidl, 2010). Similarly, the extant employee HR perceptions literature focuses on

conceptual relevance, helping practitioners better understand which HR practices will work better under what conditions. Many articles include a note in the section on practical implications urging practitioners to rec- ognize the potentially serious negative consequences of poorly managed employee HR perceptions, and vice versa. Kehoe and Wright (2013) warn practitioners that without consistent implementation of HR practi- ces, a well-designed HR system may not produce best-intended out- comes. Yousaf, Sanders, and Yustantio (2018) advise practitioners to understand which HR practices influence employees in the manner intended by management. In the same vein, several studies provide sup- plementary advice such as conducting regular data collection on employ- ees’ HR perceptions (Cooke, Cooper, Bartram, Wang, & Mei, 2019; Fletcher, Alfes, & Robinson, 2018; Liao et al., 2009). In addition to con- ceptual relevance, researchers may claim their findings contain legitimat- ing relevance. For instance, Kilroy, Flood, Bosak, and Chênevert (2017) state that HR professionals can use their findings to build a case for investing in HR and thus overcome the problem of employee burnout. What is missing in the HR perception literature is the issue of instru- mental relevance. For a branch of social science, the limited instrumental relevance may not necessarily be a serious issue (Nicolai & Seidl, 2010). However, demand is increasing for research that provides specific solu- tions to problems field practitioners experience. One way to enhance the instrumental relevance of employee HR per-

ception research is to pay more attention to the drivers of employee HR perceptions. In our review, 82 empirical studies examined the consequen- ces of employee perceptions of HR practices, while only 20 investigated

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the factors that shape employee perceptions of HR practices (Ang et al., 2013; Ang et al., 2017; Aryee et al., 2012; Bos-Nehles & Meijerink, 2018; Choi, 2019; Chacko & Conway, 2019; Elorza et al., 2011; Elorza et al., 2016; Den Hartog et al., 2013; Heffernan & Dundon, 2016; Hewett et al., 2019; Jensen et al., 2013; Jiang et al., 2017; Li & Frenkel, 2017; Makhecha, Srinivasan, Prabhu, & Mukherji, 2018; Piening, Baluch, & Ridder, 2014; Sumelius, Bj€orkman, Ehrnrooth, M€akel€a, & Smale, 2014; Van de Voorde & Beijer, 2015; Vermeeren, 2014; Webster & Beehr, 2013). The recent review by Hewett et al. (2018) acknowledge the lack of understanding regarding the antecedents of HR perception. Future research could provide more knowledge directly relevant to practitioners by identifying antecedents of employee HR perception that are under the discretion of managerial decisions, such as organizational structure or modern HR information technologies.

Conclusion

Scholars have called for examination of employee perceptions of HR prac- tices so as to uncover the “black box” between HR practices and perform- ance (Bowen & Ostroff, 2004; Den Hartog et al., 2013; Wright & Nishii, 2013). In response, researchers have begun to examine employee percep- tions of HR practices in a systematic and rigorous fashion. We propose that progress can be expedited by enriching the theoretical grounding of research in this area, enlarging the empirical scope to consider, for example, cross-cultural issues, and enhancing practical relevance. We hope this review sparks more studies of employee perceptions of HR practices, with a clear understanding of the multiple aspects of this con- struct and a deeper understanding of the intricacies involved in the for- mulation and evolution of employee perceptions of HR in the workplace.

Disclosure statement

No potential conflict of interest was reported by the authors.

Funding

National Natural Science Foundation of China (No. 71902144) and China Postdoctoral Science Foundation (No. 2019M651594)

ORCID

Ying Wang http://orcid.org/0000-0003-1850-9393 Sunghoon Kim http://orcid.org/0000-0002-4374-9332 Karin Sanders http://orcid.org/0000-0002-0385-1690

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  • Abstract
    • Methods
    • Common assumptions in employee HR perception research
      • The perceived ‘what’ of HR practices
    • Theoretical underpinning
    • Measurement
    • Major findings
      • The perceived ‘how’ of HR practices
    • Theoretical underpinnings
    • Measurement
    • Empirical findings
      • The perceived ‘why’ of HR practices
    • Theoretical underpinnings
    • Measurement
    • Empirical findings
    • Future directions
      • Enrich the theories of HR communication
      • Enlarge the empirical grounds across nations
      • Enhancing practical relevance
    • Conclusion
    • Disclosure statement
    • References

Papers related to hotel employee perceptions/Paper 984.pdf

Tourism Management 87 (2021) 104385

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Pushing forward high-performance work systems in the hotel industry: A procedural-justice climate to promote higher unit-level outcomes

Jaewan Yang a, Youngsang Kim b, Peter B. Kim c,*

a College of Business, Hankuk University of Foreign Studies, 107 Imun-ro, Dongdaemun-gu, Seoul, 02450, South Korea b SKK Business School, Sungkyunkwan University, 25-2 Seonggyungwan-ro, Jongno-gu, Seoul, 03063, South Korea c School of Hospitality and Tourism, Auckland University of Technology, 423 WH Building, 49 Wellesley St East, Auckland, 1010, New Zealand

A R T I C L E I N F O

Keywords: High-performance work system (HPWS) Collective organizational citizenship behavior (OCB) Organizational service performance Procedural-justice climate Hotels

A B S T R A C T

In this study, we examine how the high-performance work system (HPWS) can be used to promote positive employee behavior leading to higher organizational service performance in the hotel industry. Specifically, we suggest that the collective organizational citizenship behavior (OCB) of employees links the HPWS to organi- zational service performance, and a stronger procedural-justice climate of a hotel strengthens the relationship between the HPWS and the collective OCB. Using multi-source data drawn from 5290 employees across 180 independent franchise hotels in North America and customer feedback on each surveyed hotel, we found that the collective OCB mediates the relationship between the HPWS and organizational service performance, and when hotels have a stronger procedural-justice climate, the mediating effect is more salient. The implications of these findings for tourism researchers and practitioners are discussed.

1. Introduction

The literature of strategic human-resource management (SHRM) indicates that the organizational use of progressive human-resource management practices is linked to various unit-level performance out- comes, such as manufacturing performance, customer-service satisfac- tion, and profits (Subramony, 2009). Within these findings, high-performance work systems (HPWS) and bundles of inter- connected human-resource (HR) practices are theorized to provide ev- idence of the strategic value of employees and to communicate enhanced expectations for employee performance and contribution (Liao & Chung, 2004).

However, research on the performance implications of HPWS is still unclear, and the research findings are limited in generalizability, because most studies examining the HPWS–firm performance relation- ship have been conducted in the manufacturing sector (e.g., Arthur, 1994). The service industry differs from other industries because prod- ucts (intangibles) are developed and consumed simultaneously, and customers are part of the service production in the industry (Kandam- pully, Keating, Kim, Mattila, & Solnet, 2014; Liao, Toya, Lepak, & Hong, 2009). Moreover, HR practices are mainly institutionalized to differen- tiate one hotel from others within the tourism and hospitality sectors

(Ivanova & Ivanov, 2015). Hence, in the tourism and hospitality context where employees play a critical role in satisfying customers for orga- nizational success and sustainability (Kim, Gazzoli, Qu, & Kim, 2016), the HPWS–organizational performance relationship is particularly relevant.

Extant research suggests that human-capital resources, social ex- change, HR climate, or collective attitudes and behavior (e.g., Jiang, Lepak, Hu, & Baer, 2012; Messersmith, Patel, Lepak, & Gould-Williams, 2011; Takeuchi, Lepak, Wang, & Takeuchi, 2007) may function as a mediating process in the HPWS–performance relationship; nevertheless, we are unsure how these factors work and what other processes should be studied in the service context. Furthermore, extant research in the tourism and hospitality literature has mainly focused on how HR prac- tices affect individual employee outcomes, such as emotional exhaustion and intention to quit (Wong, Xu, Chan, & He, 2019), individual orga- nizational citizenship behavior (OCB; Pham, Tučková, & Jabbour, 2019), service-oriented OCB (Kloutsiniotis & Mihail, 2020b), and work engagement and individual performance (e.g., Karatepe & Olugbade, 2016), relying on the data collected from employees and managers using surveys, rather than organizational outcomes measured by customers. Thus, studies that examine the relationship between the HPWS and organizational service performance are rare.

* Corresponding author. E-mail addresses: jwyang@hufs.ac.kr (J. Yang), ykim03@skku.edu (Y. Kim), pkim@aut.ac.nz (P.B. Kim).

Contents lists available at ScienceDirect

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https://doi.org/10.1016/j.tourman.2021.104385 Received 31 March 2020; Received in revised form 16 June 2021; Accepted 17 June 2021

Tourism Management 87 (2021) 104385

2

Given the importance of maintaining good service performance in the tourism and hospitality industry, more studies that examine how the HPWS influences service performance are imperative. In a similar vein, Kloutsiniotis and Mihail (2020a), in their recent review of the HPWS research in the tourism and hospitality context, called for empirical research that scrutinizes the mechanism of the HPWS-organizational performance link. However, the majority of HPWS empirical studies in the tourism and hospitality context utilized a cross-sectional research design that is exposed to the issues of common-method variance (Pod- sakoff, MacKenzie, Lee, & Podsakoff, 2003) and reverse causality (Guest, 2011), making it difficult to develop better understandings of the HPWS-organizational service performance linkage.

In developing better knowledge of the effect induced by using HPWS in organizations, it is critical to identify the role and function of em- ployees’ judgment for the exchange relationships between employees and the organization they work for, namely, justice perception (Wu & Chaturvedi, 2009). In fact, previous studies showed that the procedural-justice climate, shared perceptions of the procedural justice in decision-making experienced by employees, substantially influences employee behaviors (e.g., Colquitt, NOE, & Jackson, 2002; Naumann & Bennett, 2000). Bowen and Ostroff (2004) suggested that organizational climate plays a critical role in how HR practices are implemented, and the procedural-justice climate can constitute a critical organizational context in the HPWS–performance relationship. However, to the best of our knowledge, no empirical attempts have been made to examine the moderating role of the procedural-justice climate to investigate the ef- fect of HPWS in any organizational context.

In this study, we address the aforementioned gaps in the literature. In doing so, first, using social-exchange theory (Blau, 1964; Cropanzano, Rupp, Mohler, & Schminke, 2001), we contend that organizations with more investment in HPWS improve the collective organizational citi- zenship behavior (OCB), because employees are expected to reciprocate by collectively increasing their helping behavior, which in turn leads to organizational service performance. In a service context, service per- formance can be categorized into (1) employee service-related behavior of serving and helping their customers or (2) service effectiveness, such as the consequences of employee service behavior (Liao & Chung, 2004). Following this categorization, we define organizational service perfor- mance as organizational consequences (e.g., customer satisfaction, intention to return) from employees’ service performance behavior, which is frequently used in SHRM research that integrates a service context (e.g., Chen, Zhu, & Zhu, 2015). This study differs from previous studies of the HPWS in the tourism and hospitality industry that focus on individual employees OCB (e.g., Kloutsiniotis & Mihail, 2020b; Safavi & Karatepe, 2018) given that we examine collective OCB and its mediating role between the HPWS and organizational service performance in the hotel industry.

Second, using theory on the strength of the HR system (Bowen & Ostroff, 2004), we also argue that the positive effect of HPWS on OCB largely depends on how strong the organization’s procedural-justice climate is, which helps shape a situation in which behavior is accepted and rewarded by developing the consensus of the HPWS per- ceptions among employees (Bowen & Ostroff, 2004). We believe that it is of particular importance to identify how the procedural-justice climate affects the HPWS-organizational performance linkage, because it could provide important insights into the mixed findings on the effect of HPWS (e.g., Liao et al., 2009), the inter-organizational differences of HR systems (Nishii & Wright, 2008) and the quality of practice imple- mentation (Khilji & Wang, 2006).

Last, we endeavor to provide additional theoretical and methodo- logical clarity about the HPWS–service performance linkage by using multi-sourced unit-level data, drawn from hotel employees and their customers, to test a research model with a lagged study design to address the issues of common-method variance (Podsakoff et al., 2003) and reverse causality (Guest, 2011).

2. Theory and hypotheses

Fig. 1 presents our conceptual model for testing the moderating ef- fect of the procedural-justice climate on the linkages among HPWS, collective OCB, and organizational service performance. Given that the mechanism of how the HPWS affects organizational performance in the service context is not well known, we aim to provide new insights into the linkage from the HPWS to the organizational service performance, along with the organizational context that would make this linkage stronger.

2.1. HPWS and collective OCB

SHRM research suggests that the HPWS plays an important role in influencing organizational resources, employees’ performance, and competitive advantage (Jackson, Schuler, & Jiang, 2014). According to ability–motivation–opportunity (AMO) theory and SHRM-related per- spectives, the effect of the HPWS on organizational outcomes is gener- ally believed to operate through the improved ability (human-capital resources), motivation, and opportunity for employees to engage in behavior that is important to the organization (e.g., Arthur, Herdman, & Yang, 2021; Jiang et al., 2012; Li, Wang, van Jaarsveld, Lee, & Ma, 2018). Other scholars also suggest that the HPWS improves the devel- opment of the organizational climate (Bowen & Ostroff, 2004), internal social structure (Evans & Davis, 2005), or social exchange (Takeuchi et al., 2007). We focus here on the role of the HPWS, which includes selective staffing, extensive training and development, promotional opportunities, contingent compensation, information sharing, rigorous performance appraisal, employee participation and autonomy, and employment security, in shaping employee motivation and behavior in the form of collective OCB that is important for improved customer satisfaction.

In particular, the HPWS is an important organizational driver to facilitate social exchange between the organization and its employees (Takeuchi et al., 2007). The use of the HPWS is theorized to provide evidence of the organization’s expanded investment in, and valuing of, employees (Collins & Kehoe, 2017). To the degree that employees experiencing the practices perceive that the value received within the exchange relationship is increased, they are expected to reciprocate by collectively improving their own contribution to the exchange via behavior that helps the organization’s functioning and performance (Cropanzano & Mitchell, 2005; Walton, 1985). In doing so, patterns of mutual reciprocal obligation activated between the organization and employees give rise to a deeper and more protracted relationship be- tween the organization and its employees over time (Mossholder, Richardson, & Settoon, 2011; Sun, Aryee, & Law, 2007).

OCB represents discretionary behavior that operates outside task performance but is important to organizational functioning and per- formance (Organ, 1988; Podsakoff, Ahearne, & MacKenzie, 1997). Whereas the study of OCB has largely focused on antecedents to indi- vidual acts of OCB, the study of collective levels is critical, because the effect on organizational performance depends not on single instances of the behavior, but on the collective effects of many behavioral instances among groups of employees (Ehrhart, 2004; Organ, 1988). The

Fig. 1. Theoretical model (HPWS = high-performance work system; OCB = organizational citizenship behavior).

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organization’s ability to tap and leverage discretionary behavior across populations of employees has long been argued to be an important consequence of the HPWS (Walton, 1985), as demonstrated in past research (Messersmith et al., 2011; Sun et al., 2007). Thus, we expect that levels of the HPWS will be positively associated with levels of OCB.

Hypothesis 1. Unit-level HPWS perceptions will be positively associ- ated with collective OCB.

2.2. The mediating role of collective OCB on the relationship between unit-level HPWS perceptions and organizational service performance

Collective OCB is an important contributor to shaping the service experience for customers (Borman & Motowidlo, 1993; Organ, 1988) and has served as the central behavioral construct in several studies that model the determinants of customer satisfaction (Schneider, Ehrhart, Mayer, Saltz, & Niles-Jolly, 2005; Schneider & Bowen, 1985). Although in-role performance behaviors may be strongly linked to organizational service performance, we suggest that collective OCB also plays an important role in contributing to organizational service performance for the following reasons. First, organizations with high levels of collective OCB are more likely to maintain a relation-based social and supportive climate for helping others, which leads to more cooperation and collaboration (Collins & Smith, 2006). In addition, the helping behavior of employees can facilitate the sharing of information, knowledge, and experience among coworkers, which may increase collective employee productivity and effectiveness (Sun et al., 2007). Accordingly, em- ployees’ willingness to identify and act on opportunities to contribute beyond task-related expectation, when considered at the organizational level, might improve the customer-service experience by forming a supportive climate, which increases coworker cooperation and coordi- nation and the efficient and effective deployment of resources and in- formation (Podsakoff & MacKenzie, 1997).

Of equal importance, in a dynamic service environment in which the customers and employees directly interact in the creation of the service, employees might be expected to make additional efforts to report and react to changing customer needs (Podsakoff & MacKenzie, 1997). Prior studies have shown positive associations between aggregate OCB levels and customer-service experience (Walz & Niehoff, 2000), product quality (Podsakoff et al., 1997), and operating efficiency and effective- ness (Sun et al., 2007; Walz & Niehoff, 2000). These findings are further supported by a meta-analytic review reporting a positive relationship of OCB with unit-level performance and customer satisfaction (Podsakoff, Blume, Whiting, & Podsakoff, 2009). Since unit-level HPWS perceptions influence the development of collective OCB, which then affects orga- nizational service performance, we hypothesize:

Hypothesis 2. The relationship between unit-level HPWS perceptions and organizational service performance will be mediated by collective OCB.

2.3. The moderating effect of procedural-justice climate

Research suggests that organizational justice is a multi-dimensional construct consisting of perceptions of fairness related to various facets of the employee’s experience with the organization (Colquitt, 2001; Cropanzano, Prehar, & Chen, 2002). Several sub-dimensions of justice perceptions have been empirically derived, including procedural, interpersonal, and interactional justice (Colquitt, 2001). Procedural justice describes generalized individual perceptions of the fairness of processes used in decisions affecting employees (Lind & Earley, 1992). In examining the effects of HPWS on critical organizational outcomes, the study of procedural-justice perceptions is appropriate, because it captures perceptions of the justice of the processes used in the exchange process between the individual and the organization (Cropanzano et al., 2002).

Whereas less attention has been given to understanding the dynamics

and consequences of justice perceptions at the group and organizational level, commonly referred to as the procedural-justice climate (Colquitt et al., 2002; Naumann & Bennett, 2000), a growing number of studies demonstrate the pivotal role that aggregated justice perceptions play in the development of improved unit-level attitudes, behavior, and per- formance outcomes (e.g., Colquitt et al., 2002; Naumann & Bennett, 2000; Whitman, Caleo, Carpenter, Horner, & Bernerth, 2012). The procedural-justice climate describes a distinct group-level cognition about the relative fairness experienced by a group and involves a referent shift from perceptions regarding their individual experiences to perceptions of the collective experience at the group or unit level (Naumann & Bennett, 2000; Colquitt et al., 2002). When collectively exposed to decision-making practices, employees develop shared per- ceptions of the fairness of various processes used within the organiza- tion. A meta-analytic review of the justice-climate literature showed positive associations between the procedural-justice climate and group-level attitudinal and performance outcomes (Whitman et al., 2012).

As some scholars have pointed out, mere exposure to various prac- tices is not enough to elicit organizationally desirable behavioral re- sponses (Bowen & Ostroff, 2004; Nishii, Lepak, & Schneider, 2008). Maintaining a good procedural-justice climate is necessary to make the HPWS effective. Colquitt et al. (2002) provide evidence of robust re- lationships between the procedural-justice climate and employee as- sessments of the quality of the exchange relationship (e.g., perceptions of leader–member exchange quality, trust, and perceived organizational support). This suggests that increases in procedural-justice perceptions affect the quality of the employee–organization exchange. In terms of HR practice deployment, procedural-justice perceptions provide important information about the quality of the exchange, whereas perceived HR practices provide information about the content, or cur- rency, of the organization’s offerings in the exchange relationship. Therefore, two organizations with employees reporting equivalent levels of perceived HPWS may experience different behavioral re- sponses, depending on the relative effectiveness of implementation in practice.

The quality of exchange relationship can be judged by the attributes of the organizational decision-making processes that are important to procedural-justice perceptions, including consistency, accuracy, sup- pression, representativeness, correctability, and ethicality – i.e., if em- ployees perceive that their interests are represented and that their perspectives are heard and valued (Cropanzano & Mitchell, 2005). Thus, organizational tendencies against each of these criteria are expected to reflect the quality of the exchange relationship guiding the execution of HR practices (Colquitt, LePine, Piccolo, Zapata, & Rich, 2012). For example, research suggests that the benefits of performance appraisals, a program common to most definitions of HPWS, depend not just on their establishment, but also on their fair and effective administration (Erdogan, 2002). Thus, although employees may report participation in a regular performance-appraisal process, employee responses to this practice depend on the quality of the exchange – i.e., the degree to which it is characterized by consistency, accuracy, and suppression of bias in its implementation, and this same logic could be applied to all facets of the HR system.

In fact, these attributes are consistent with the principles suggested by Bowen and Ostroff (2004), who argue that organizationally intended HR systems can signal to employees which behaviors are valued and rewarded and can be effectively implemented under a strong climate for HR systems that include consistency, consensus, and distinctiveness. For implementing HR practices, employees’ attributions of ‘Why does our organization use the set of specific HR practices it adopted?’ shape their attitudes and behaviors at work. For this reason, an organization’s use of HPWS can be effective if employees conclude that their employer uses the current HR practices to produce high-quality service and products, and foster employee well-being. Thus, we contend that the degree to which the HPWS elicits the desired behavioral responses will depend on

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embedding these practices in the context of high-quality exchange relationships.

Beyond its effect on the exchange relationships between employees and employer, the procedural-justice climate will operate as a heuristic that will shape employee interpretations of the intents of the HPWS (Bowen & Ostroff, 2004; Nishii et al., 2008; Nishii & Wright, 2008). When employees are exposed to HPWS in a weak procedural-justice climate, they are unlikely to conclude that these practices are evi- dence of their value and importance to the organization. Moreover, because procedural justice affects employee trust in the organization (Colquitt et al., 2012), a weak procedural-justice climate will affect the perceived trustworthiness of the organization as an exchange partner, further eroding the strength of the linkage between HPWS and the desired behavioral outcome. However, when a strong procedural-justice climate is maintained within the organization, employees exposed to HPWS may regard their organization as a trustworthy exchange partner.

Taken together, we contend that the procedural-justice climate is a necessary condition for the realization of the theorized behavioral out- comes of the HPWS. As such, it serves as a potentially important source of inter-organization differences in understanding the linkage between the HPWS and employees’ collective behavioral responses (i.e., OCB). That is, we contend that the procedural-justice climate provides an important indicator of the prevailing fairness in managerial decision- making and thus an important insight into the effect of the HPWS on the collective OCB. When the procedural-justice climate is strong, we expect that this climate helps ensure the effectiveness of managerial implementation of the HPWS and the desired employee interpretation of their value to the organization. Conversely, a weaker procedural-justice climate would make it less likely that these practices will be imple- mented in a fair and effective way – thereby reducing the likelihood that the HPWS will be interpreted as an expression of the employee’s value to the organization.

Hypothesis 3. The procedural-justice climate will moderate the rela- tionship between the unit-level HPWS and the collective OCB, such that the relationship will become stronger when the unit has a stronger procedural-justice climate.

Although Sun et al. (2007) demonstrated the mediating role of OCB in the relationship between HR practices, turnover, and productivity, the mediating role of the aggregate OCB in the relationship between perceived HPWS and service outcomes has not been tested directly. Although we anticipate that OCBs would operate as a mediating mechanism through which HPWS affects organizational service perfor- mance at the unit level, we expect that this relationship will depend on the strength of the procedural-justice climate within the organization. Specifically, we expect to find evidence of the mediating role of OCB in the relationship between HPWS and organizational service performance only within a strong procedural-justice climate.

Hypotheses 4. The mediated relationship between the unit-level HPWS and organizational service performance through the collective OCB will be moderated by the procedural-justice climate.

3. Methods

3.1. Data collection and sample

Data for this study were obtained through the cooperation of a hotel franchise and management company with brands representing low-cost, business-traveler, extended stay, and luxury market segments. Inde- pendent North American franchise locations were selected by corporate operational personnel in an effort to represent a diversity of locations, market orientations, and performance. Although the franchise agree- ments stipulate specific standardized physical plant, technological, and marketing requirements, franchise operators may adopt HR practices of their own choosing. Thus, the sample provides excellent natural controls

on extraneous sources of variance and can better isolate the focal effects of HR practices, the procedural-justice climate, and OCB on hotel service outcomes. Additionally, the service-intensive context of the hotel in- dustry, and the fact that employees and customers interact directly in the creation of the service experience, make the meditational role of organizational citizenship especially appropriate (Bowen, Gilliand, & Folger, 1999).

In total, 204 hotels participated in the study. A team composed of doctoral-level researchers specialized in management administered the data collection, with the exception of the customer satisfaction survey. Hotel managers at the designated locations participated in a conference call in which the study methodology and requirements were explained. They were then sent instructions, survey packets, and a sealed collection box for the confidential return of completed surveys. The employee survey was administered for three months preceding the collection of customer-satisfaction data. In order to reduce common-source differ- ences resulting from obtaining the perceptions of HR practices, procedural-justice climate, and OCB from the same employees, half of the employees were asked to answer a survey that included items measuring perceived HPWS, whereas the other half answered a survey that included items measuring procedural-justice perceptions and OCB. All employees were assured of the confidentiality of their responses and were provided with envelopes in which to seal their completed surveys before placing them in the sealed collection box.

Service performance data for the months following our employee data collection were provided by the corporate offices based on estab- lished and ongoing customer-satisfaction surveys conducted at each location. The headquarters surveyed approximately 50 customers who had stayed at each hotel that month. Customers visiting each hotel location had a chance to fill out a customer-satisfaction survey before they left the hotel. Following the collection of employee survey data, three monthly observations for each location were retained for analysis.

Out of 10,276 surveys sent out to the employees working for the 204 hotels, 5577 complete and useable responses were returned for an overall response rate of 54.2%. Specifically, the response rates were 53.9% (fairness and OCB survey) and 54.4% (HPWS survey). To generate meaningful unit-level averages for our variables, we limited our sample to hotels with at least three employee survey responses for all employee response variables. The final sample included 5290 employees across 180 hotels, for an average of 29.39 employees per hotel (divided equally between the two different employee surveys). The sample size was reduced to approximately 50% of the initial sample. Of the re- spondents, 64% were female; the average length of service in the in- dustry was 6.28 years; and the average organizational tenure was 3.52 years. The mean values of number of rooms and hotel age were 167.29 rooms and 15.23 years, respectively.

Although the sample mostly consisted of employees who frequently interacted with hotel guests (approximate 94%), there were some em- ployees, such as engineering and maintenance employees, who rarely interacted with hotel guests. Thus, we created a restricted sample that excluded the latter kind of employees. To find out how much the full sample differed statistically from the restricted sample, we compared the restricted sample with the full sample for HPWS, procedural justice, and OCB, and found that the two samples did not significantly differ from one another.

3.2. Measures

3.2.1. Perceived HPWS (unit level) This measure was designed to capture employees’ shared awareness

of the organizational HR practices used in the hotel. Following the suggestions of Chan (1998) and Klein, Conn, Smith, and Sorra (2001), in order to capture meaningful unit-level differences, respondents were asked to report their awareness of the HR practices experienced by the group (hotel). In doing so, we intended to use employees as informants about HR practices used in the hotel, rather than capture their individual

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experiences. We regarded the use of multiple employee informants as an appropriate way to capture employees’ shared awareness without committing a level-based misspecification error arising from the use of a single or a few key informants (Arthur & Boyles, 2007). This approach also increased inter-rater reliability by reducing measurement errors (Gerhart, Wright, McMahan, & Snell, 2000).

We followed relevant review articles (e.g., Lawler, 1992) and empirical studies (e.g., Zacharatos, Barling, & Iverson, 2005) to construct a measure of perceived HR practices. The final measure included 15 items to measure job autonomy, participation in decision making, employee involvement, training, performance appraisal and feedback, pay for performance, and information sharing. These items are listed in Table 1. These HR practices were consistent with the HPWS outlined by Lepak, Takeuchi, and Snell (2003) and measures appearing in other studies of SHRM literature (e.g., Den Hartog, Boon, Verburg, & Croon, 2013; Liao et al., 2009).

We created a composite variable of perceived HR practices by averaging all 15 items, following empirical procedures of previous SHRM studies. The reliability of the scale was α = 0.89. Because we conducted the analysis at the organizational level as the average rating for perceived HR practices across each location, we examined within- hotel agreement (and between-hotel differences) in perceived HR practices prior to aggregation. We calculated intra-class correlations (ICC), based on one-way ANOVA results (Gerhart et al., 2000); ICC(1) for this measure was 0.08 (p < .001), indicating significant between-hotel differences, and ICC(2) was 0.58, suggesting a moderate level of within-hotel agreement. Although the value of ICC(2) is slightly below the recommended level, this value is consistent with past pub- lished research on the organizational-level measures of HPWS provided by multiple employee respondents (e.g., Liao et al., 2009; Takeuchi et al., 2007). Also, the median within-group agreement0 (rwg) for this measure was 0.70, which exceeds the suggested criterion of 0.60 (James, 1982).

3.2.2. Procedural-justice climate We adapted five items from past research (e.g., Niehoff & Moorman,

1993) to measure employee perceptions of justice. This measure cap- tures the extent to which employees agree that the decision-making process is fair and transparent as well as the extent to which the work- place shares job- or organization-relevant information with employees. The literature on organizational justice has suggested the existence of a unit-level climate of procedural justice (Whitman et al., 2012). The climate of justice is the “favorability of the team’s ratings of procedural justice” (Colquitt et al., 2002, p. 87). Based on Chan’s (1998) compo- sition approach, we used a group (hotel) referent in the survey to capture the collective experience of employees. These items are also listed in Table 1. The reliability of this measure was 0.88. We created a composite variable of the procedural-justice climate by averaging the five items. ICC(1) was 0.08 (p < .001), and ICC(2) was 0.55, again suggesting a moderate level of within-hotel agreement, which we deemed sufficient to justify aggregation. The median rwg for this measure was 0.55, which is around the recommended rule of thumb.

3.2.3. Collective OCB We adopted four items from the work of Podsakoff, MacKenzie,

Moorman, and Fetter (1990) to measure unit-level OCB. This measure indicates the extent to which employees are willing to engage in tasks or roles that are not required as part of their job responsibility. Although many early studies operationalized OCB at the individual level (e.g., Bateman & Organ, 1983; Williams & Anderson, 1991), many group-level studies have also used an OCB (e.g., Nishii et al., 2008; Walz & Niehoff, 2000). Organ’s (1988) measure included five different dimensions: altruism, courtesy, civic virtue, conscientiousness, and sportsmanship. Because hotel employees were used for sampling, we used civic-virtue items, which are intended to capture helping behavior among em- ployees to improve the service experience of customers.

Table 1 The result of confirmatory factor analysis.

Factor Scale items Second-/ first-order factor loading

T- value

AVEa CRb

HPWS Employees have lots of freedom to decide how to do their work.

0.90 0.50 fixed 0.44 0.92

If a problem occurs, employees can fix it without involving management.

0.42 16.95

It is easy for employees to share their ideas with management.

0.76 24.06

Employees are encouraged to participate in decisions that affect their work.

0.73 23.65

Employees are not afraid to speak up if there is a problem.

0.67 22.72

If a decision is being made in my department, everyone is involved.

0.63 22.12

This hotel values performance more than how long you have worked here.

0.88 0.55 fixed

Managers let people know when they are doing a good job.

0.69 25.47

The pay system encourages employees to work hard.

0.59 23.14

Employees at this hotel will earn more money if they do a good job.

0.54 21.68

The hotel values employee training and growth.

0.81 27.78

Lots of training is provided to employees.

0.74 26.65

Employees have enough information to do their jobs well.

0.84 0.79 fixed

Employees are given information about hotel goals and performance.

0.68 31.64

Employees know what they need to do to perform their job well.

0.65 30.37

Procedural justice

All job decisions in this department are made in a fair way.

0.68 fixed 0.59 0.88

When making decisions about my job, our department offers reasons that make sense.

0.71 39.40

Information on decisions is provided when employees ask for it.

0.80 27.20

When decisions are made about our jobs, this hotel considers employee needs.

0.84 34.70

When decisions are being made, this hotel attempts to make sure everyone is heard.

0.82 34.43

OCB I make suggestions to improve this hotel.

0.53 fixed 0.52 0.81

0.69 18.38

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The Cronbach’s alpha for this measure was 0.81. We created a composite variable of OCB by averaging the four items. Again, we calculated the aggregation1 statistics for this measure. ICC(1) was 0.03 and statistically significant (p < .001). ICC(2) was 0.32. ICC(2) values are sensitive to the size of the group (Bliese, 2002), and the level of ICC (2) in the current study was similar to those found in previous SHRM studies (e.g., Liao et al., 2009; Nishii et al., 2008; Takeuchi et al., 2007). The median rwg for this measure was 0.69.

3.2.4. Organizational service performance Customer-service performance data were offered by the corporate

head office. We used two service performance variables from this survey to test the hypothesized model: overall customer satisfaction, in which customers were asked to assess their total service experience at the hotel, and intention to return, which captures their willingness to use the hotel again. We used service performance data averaged over the three months following the completion of the employee data collection (e.g., Wright, Gardner, & Moynihan, 2003; Wright, Gardner, Moynihan, & Allen, 2005). The scale used to measure organizational service perfor- mance was 1–100. This was a bipolar scale, with 1 as the minimum possible (worst) score and 100 as the maximum possible (best) score.

3.2.5. Control variables To further control for extraneous variance that might systematically

affect our study variables, several control variables were included in the analysis. These controls included unit size, measured by the number of rooms, unit age (years since established), and hotel brand. Because four brand types were represented in the sample, dummy variables were created and included in the analysis.

4. Results

Before analysis, we checked the factor structure of the variables included in the study. Table 1 presents the results of confirmatory factor analysis (CFA) for the HPWS, procedural justice, and OCB. The service performance variables were not included, because they were qualita- tively different (index scores averaging multiple responses over a period) from other variables. We needed two CFA models, because the three variables were collected from two different sources. For the HPWS,

we tested two alternative models to check the factor structure. First, we tested a single-factor model with all 15 items loaded to one factor. The fit statistics for this model were acceptable, but not strong enough (Chi- square = 19.43, p <. 01, CFI = 0.89, NNFI = 0.88, RMSEA = 0.08, SRMR = 0.05). We then tested a second-order model that included three first- order factors loaded to a second-order factor. The second model showed good fit statistics (Chi-square = 8.25, p < .01, CFI = 0.96, NNFI = 0.95, RMSEA = 0.05, SRMR = 0.03); the change in Chi-square was 1019.90 and was statistically significant (p < .01). Thus, we retained the second- order factor structure. For the CFA testing of procedural justice and OCB, the fit statistics for the two-factor model were strong enough (Chi- square = 5.41, CFI = 0.99, NNFI = 0.99, RMSEA = 0.04, SRMR = 0.03), so we retained the factor structure. We also estimated the average variance extracted (AVE) and composite reliability (CR) for the three variables. The AVE and CR values were all acceptable and above the recommended cut-off (0.50 and 0.70 for AVE and CR, respectively), except for the AVE value of HPWS, which was slightly lower than 0.50; however, this was not a problem, because the CR was higher than 0.60 (Fornell & Larcker, 1981). Thus, we retained the current HPWS factor structure, given that the CR value of HPWS was sufficiently high at 0.92.

Table 2 presents the means, standard deviations, and inter- correlations between variables. The patterns of the correlations are consistent with the hypothesized relationships between variables. For example, the correlation between perceived HPWS and collective OCB was positive and statistically significant (r = 0.42, p < .01). The corre- lations between collective OCB and two service-performance variables, overall customer satisfaction (r = 0.26, p < .01) and intention to return (r = 0.26, p < .01), were also positive and statistically significant.

In testing hypotheses, we conducted a series of ordinary least-squares (OLS) regressions. Although we collected some data from individual responses, our conceptual and empirical interests in this study reside at the unit level. Because lower-level variables cannot be used to estimate the variance of higher-level variables, past studies aggregated individual-level responses to create unit-level variables and then con- ducted a single-level analysis (e.g., Lepak et al., 2003; Messersmith et al., 2011; Wright et al., 2003, 2005). Following Chan’s (1998) approach, we aggregated individual-level (Level 1) data to create unit-level (Level 2) variables and then tested unit-level relationships.

Hypothesis 1 predicted that HPWS would be positively associated with collective OCB. Table 3 (Model 2) shows that the perceived HPWS was positively and significantly related to the collective OCB (b = 0.33, p < .001) and, after accounting for the control, produced a change in R2

of 0.14 (p < .001). Thus, the results supported Hypothesis 1. Table 4 shows the results of testing Hypothesis 2, which predicted

that collective OCB would mediate the relationship between the perceived HR practices and service performance. The result shows that collective OCB was a statistically significant predictor of customer satisfaction (Model 2: b = 2.47, p < .05) and intention to return (Model 6: b = 2.95, p < .05), when controlling for the perceived HPWS. To bolster our findings of significant mediation, we adopted the bootstrap approach suggested by Preacher and Hayes (2004). Compared to a more traditional test of mediation (e.g., Sobel test), bootstrap analysis adjusts for the non-normal distribution of mediated effects (MacKinnon, Lock- wood, Hoffman, West, & Sheets, 2002) and provides the most powerful and reasonable way to obtain confidence limits for indirect effects under different conditions (Preacher & Hayes, 2008). We estimated the 95% confidence intervals (CIs) using a bootstrap test based on 5000 samples with replacement (Preacher & Hayes, 2008). The result showed that the indirect effect of the perceived HPWS on overall customer satisfaction and intention to return was 0.79 (95% confidence interval [CI] = [0.05, 1.75]) and 0.95 (95% confidence interval [CI] = [0.15, 2.00]) for each. These results confirmed that the indirect effects via collective OCB were significant, which supports Hypothesis 2.

Hypothesis 3 predicted that the association between the perceived HPWS and the collective OCB is dependent on the level of the procedural-justice climate. To test the interaction, we followed the

Table 1 (continued )

Factor Scale items Second-/ first-order factor loading

T- value

AVEa CRb

I volunteer for tasks that are not required. I am willing to do things that help this hotel outside of my normal duties.

0.82 24.88

I am willing to work harder than I have to in order for this hotel to do well.

0.82 24.89

Note. HPWS = high-performance work system; OCB = organizational citizenship behavior; a. AVE = Average variance extracted; b. CR = Construct reliability.

1 We were not necessarily interested in justifying the existence of a group- level construct of OCB. We used the average score of the within-unit re- sponses of OCB, because we believed that more OCB at each hotel enabled customers to experience better service, and benefitted the hotel, as the service literature suggests (Bowen, Gilliland, & Folger, 1999; Schneider et al., 2005). In other words, the levels of within- and between-unit variance are less critical in testing our hypotheses. The effect of the overall level of OCB was what we were interested in. Thus, we used the average score of OCB to test our hypotheses.

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procedure suggested by Aiken and West (1991). Before analysis, we centered both variables on the mean of each variable, and created the interaction term, Perceived HPWS * Procedural-justice Climate. Table 3 (Model 4) shows that the interaction term was statistically significant (b = 0.25, p < .05) and produced a significant change in R2 of 0.02 (p <

.05). To gain a better understanding of the nature of this interaction, Fig. 2 shows the interaction between the perceived HPWS and procedural-justice climate on collective OCB. The figure shows that in a weak procedural-justice climate (b = 0.03, n.s.; one standard deviation (SD) below the mean), the relationship between the perceived HPWS and collective OCB was not significant. However, consistent with Hy- pothesis 1, when there was a strong procedural-justice climate (b = 0.23, p < .01; one SD above the mean), this relationship was positive and significant, suggesting that the procedural-justice climate significantly strengthens the relationship between the perceived HPWS and the col- lective OCB. Therefore, Hypothesis 3 was also supported.

Finally, Hypothesis 4 suggested that the indirect effect of the perceived HPWS on customer-service performance through collective OCB is dependent on the strength of the procedural-justice climate. To test this hypothesis, we conducted moderated-mediation analysis (Edwards & Lambert, 2007). An important advantage of this type of analysis is that the moderation and mediation can be tested simulta- neously. Table 5 shows the conditional indirect effects for weak or strong procedural-justice climates. For three different conditions (low, one SD below the mean; medium, mean; high, one SD above the mean) of procedural-justice climate, we calculated the indirect effects of perceived HPWS on both customer-service performance variables. We estimated the 95% CIs following the procedures we used for testing Hypothesis 2. Table 5 shows that the indirect effects on overall customer satisfaction under the medium condition were 0.32, and under the high condition, 0.58. The bootstrap CIs for these indirect effects did not include a zero, showing statistically significant indirect effects. How- ever, in a weak procedural-justice climate, the indirect effect was not significant. In the model with customer intention to return as an

Table 2 Means, standard deviations, and inter-correlations between study variables.

Variable Mean Standard deviation 1 2 3 4 5 6 7 8 9

1. Unit age 15.23 12.65 2. Unit size 167.29 92.95 .34** 3. Brand dummy 1 .36 .48 -.45** -.58** 4. Brand dummy 2 .08 .27 .01 .35** -.22** 5. Brand dummy 3 .03 .16 -.17* -.13 -.13 -.05 6. Perceived HPWS 3.56 .37 -.15* -.26** .23** -.24** .07 7. Procedural-justice climate 3.73 .42 -.26** -.34** .29** -.19* .11 .56** 8. Collective OCB 4.09 .31 -.08 -.17* .17* -.14 .02 .42** .56** 9. Overall customer satisfaction 86.47 5.88 -.43** -.49** .57** -.15* .02 .28** .40** .26** 10. Intention to return 83.70 6.98 -.41** -.49** .53** -.12 .13 .28** .38** .26** .93**

Note. N = 180; HPWS = high-performance work system; for dummy coded variables, business class hotel is the omitted brand; *p < .05; **p < .01.

Table 3 Moderating effect of procedural-justice climate on the relationship between perceived high-performance work system and collective organizational citi- zenship behavior (OCB).

Variable Model 1 Model 2 Model 3 Model 4

Step 1 Constant 4.11*** 4.10*** 4.04*** 4.03*** Brand dummy 1 .07 .04 .02 .01 Brand dummy 2 -.11 -.03 -.02 -.05 Brand dummy 3 .05 .01 -.04 -.03 Unit age .00 .00 .00 .00 Unit size .00 .00 .00 .00 Step 2 Perceived HPWS .33*** .12 .13* Step 3 PJC .37*** .35*** Step 4 Perceived HPWS × PJC .25* R-squared .05 .18*** .34*** .36*** Change in R-squared .14*** .16*** .02*

Note. N = 180; unstandardized regression coefficients; for dummy coded vari- ables, business class hotel is the omitted brand; HPWS = high-performance work system; PJC = procedural-justice climate; *p < .05; **p < .01, ***p < .001.

Table 4 Mediating effect of collective organizational citizenship behavior (OCB) on the relationship between perceived high-performance work system and organiza- tional service performance.

Variable Collective OCB

DV = overall customer satisfaction

DV = intention to return

Model 1 Model 2 Model 3 Model 5 Model 6

Constant 4.10*** 81.34*** 74.13*** 74.63*** 68.40*** Brand dummy

1 .04 4.25*** 4.15*** 6.83*** 4.67***

Brand dummy 2

-.03 .58 .65 5.98** 1.83

Brand dummy 3

.01 .15 .13 6.02* 4.53

Unit age .00 -.09** -.09** -.07 -.08* Unit size .00 -.01* -.01* -.02** -.02** Perceived

HPWS .33*** 1.96* 1.15 2.63* 1.50

Collective OCB

2.47* 2.95*

R-squared .18*** .41*** .42*** .44*** .41***

Note. N = 180; unstandardized regression coefficients; for dummy coded vari- ables, business class hotel is the omitted brand; DV = dependent variable; *p < .05; **p < .01, ***p < .001.

Fig. 2. Plot of interaction of perceived high-performance work system (HPWS) with procedural-justice climate on collective organizational citizenship behavior (OCB). Note. High procedural-justice climate = one standard deviation above the mean; low procedural-justice climate = one standard deviation below the mean.

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outcome variable, the results from the bootstrap analysis were consis- tent with those of customer satisfaction. The indirect effects on intention to return for the medium and high conditions were .38 and .69, respectively, and the bootstrap CIs did not include a zero. However, under the low condition, the indirect effect was not statistically signif- icant. Thus, the results supported Hypothesis 4.

5. Implications of the findings

5.1. Theoretical implications

We believe that our findings have several significant theoretical implications. First, the study provides significant insights into under- standing the HPWS–performance linkage in the service and hotel sector. Although previous studies (e.g., Arthur, 1994; Jiang et al., 2012; Mes- sersmith et al., 2011; Takeuchi et al., 2007) suggested several theoretical mechanisms and examined the empirical relationships of the linkage, our understanding of the linkage is not yet clear in that research findings are mixed (Kroon, Voorde, & Veldhoven, 2009), the causal relationship is unclear (Wright et al., 2003), and the connection between stated HR practices and actual HR is weak (Liao et al., 2009). Kloutsiniotis and Mihail (2020a) reported in their recent review of HPWS research in the tourism and hospitality sectors that only one of the 28 empirical studies investigated the causal process (i.e., the HR black box) of the HPWS-organizational service performance. Although there might be multiple approaches, one way to understand this HR black box is to focus on the issue of HR practice implementation. Recent studies of SHRM specifically focused on providing insights into ‘why effective implementation of HR practices is important’, and ‘how we can effec- tively implement HR practices’ (e.g., Sikora, Ferris, & Van Iddekinge, 2015; Yang & Arthur, 2019). We have added to this line of research to understand the HR black box from the viewpoint of HR practice implementation. Specifically, we have shown the robustness of the links between the HPWS and service performance at the unit levels, with collective, rather than individual OCB as a mediating mechanism.

Second, our research also underscores the pivotal role of fairness perceptions by demonstrating the effect on the expected return on organizational investments in HR practices, and thus contributes to exploring the contextual effect of the HPWS (e.g., Ployhart & Moliterno, 2011). Although a long line of research has demonstrated the impor- tance of justice in shaping employee behavioral and performance out- comes (Colquitt, Conlon, Wesson, Porter, & Ng, 2001; Colquitt et al., 2013), organizations would be well served by paying attention to procedural-justice perceptions as a necessary context for HR practice implementation. In addition, as we have demonstrated, the effect of procedural-justice perceptions is also present at the unit level. Specif- ically, our study indicates that the robustness of the links between the

HPWS, OCBs, and service performance depends on the coupling of HR practices with a strong procedural-justice climate. Our findings show that the link between the HPWS and service performance is strengthened when a strong climate for procedural justice develops within an orga- nization. This suggests that the procedural-justice climate may strengthen the signal to employees that the current HPWS is appro- priate, acceptable, and fair, and thus boost the social-exchange re- lationships from the effect of the HPWS on organizational service performance via collective OCB. Hence, assessments of practice content and assessment of exchange quality jointly influence the prediction of unit-level behavioral responses, which allows us to test and examine the theory on the strength of the HR system (Bowen & Ostroff, 2004). Future research needs to further explore how different types of climate per- ceptions influence how content of the HPWS affect employee attitudes and behavioral outcomes.

Third, this study provides additional theoretical and methodological clarity to the HPWS research in the service and hospitality industry. Although some studies showed the positive effect of the HPWS on organizational performance in service settings (e.g., Liao & Chung, 2004), the findings are still unclear and need more empirical examina- tion. For this reason, several calls for more rigorous research design and data usage in the service setting have been made (e.g., Kloutsiniotis & Mihail, 2020a). However, we have yet to observe many meaningful at- tempts or much progress. In this study, we tested the hypothesized moderated mediation model by using the data drawn from employees working in several different brands of a large hotel franchise and their customers. Moreover, we also used data drawn from hotel customers who visited each hotel location to measure the effectiveness of the ser- vices delivered to the customers. Along with this use of multi-sourced data, we used a lagged study design to address the issues of common-method variance (Podsakoff et al., 2003) and reverse causality (Guest, 2011; Wright et al., 2005). Based on these points, we believe that this study is meaningful, in that we explicitly incorporated several issues raised in past HPWS research in a service setting and found meaningful relationships between focal constructs.

Finally, we also tap into the issue of the within-organizational vari- ance of HR systems. As previous studies (e.g., Nishii & Wright, 2008) have pointed out, employee perceptions of the HPWS that their orga- nization uses differ significantly across employees. This finding may not be surprising. However, what is surprising is that most SHRM studies assumed that the effect of HPWS was uniform across employees within a single organization. This assumption is problematic, not only for indi- vidual employees, but also at the work group and organization (unit) levels, because the assumption (1) masks different effects of HPWS across individuals and work units and (2) weakens the overall effects of HPWS on multiple organizational outcomes. In this study, the levels of justice climate become the source weakening the effect of the HPWS on the organization’s service performance. Organizations cannot develop a strong justice climate when they are not effective in implementing HPWS and when employees do not agree on their experiences of the HPWS (Nishii & Wright, 2008). Consequently, as demonstrated here, it is likely that considerable differences remain in the quality of the unit-level exchange relationships in which HPWS are embedded.

5.2. Managerial implications

Our study provides several important managerial implications for the tourism and hotel industry. First, the findings reveal the importance of the HPWS in terms of its desirable effects on employees and organi- zational performance in the hotel industry. In tourism organizations, such as hotels, human-capital resources are often considered to be a cost center rather than an investment center. Our study clearly shows that implementing a set of HPWSs improved the service performance of hotels through the collective OCB of employees. Given the competitive market situation, high-quality human-capital resources can be a good source of sustainable competitive advantages to differentiate a hotel

Table 5 Bootstrap test of conditional indirect effect of perceived high-performance work system on customer-service performance at different levels of procedural-justice climate.

a. Overall customer satisfaction Perceived

HPWS Boot indirect effect

Boot SE Boot lower CI

Boot upper CI

− 1 SD (− 0.42) .06 .21 -.24 .69 Mean (0) .32 .22 .03 .92 +1 SD (0.42) .58 .32 .08 1.43

b. Intention to return Perceived

HPWS Boot indirect effect

Boot SE

Boot lower CI

Boot upper CI

− 1 SD (− 0.42) .08 .23 -.29 .71 Mean (0) .38 .25 .03 1.08 +1 SD (0.42) .69 .38 .12 1.69

Note: N = 180; HPWS = high-performance work system; Confidence interval (CI) = 95%; SE = standard error; Bootstrap sample size = 5000.

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from others, in providing customized services for demanding consumers. Our results provide a clue as to how the HPWS affects a hotel’s orga- nizational service performance; that is, employees under HPWS are likely to make an extra effort in serving customers. This empirical evi- dence can be recommended to senior managers who make a strategic decision to properly allocate organizational resources that in the hotel industry are often limited (Ivanova, Ivanov, & Magnini, 2016). For example, our findings suggest that to better understand how HPWS in- fluences organizational service performance, hotel companies (franchi- sors) need to monitor the performance of each property (franchisee) in terms of the extra-role behavior of employees within each hotel (col- lective OCB).

Second, our findings about the moderating function of a procedural- justice climate also present an interesting implication for tourism and hospitality professionals to successfully facilitate the HPWS. Given that with technological advances, employees can now easily access internal and external information about organizational processes (Wenzel, Krause, & Vogel, 2019), how fairly managers conduct organizational processes should be brought to the attention of tourism and hospitality managers. The salient effects of the HPWS can be expected, particularly when hotel employees collectively perceive their organization as fair in the organizational process. In other words, even if hotels invest in their human-capital resources, they are unlikely to obtain desirable organi- zational outcomes in an unfair organizational climate. Accordingly, we suggest that a hotel corporation should help each hotel establish a fair organizational climate to maximize the contribution of HPWS and monitor the level of the justice climate across hotels on a regular basis.

Last, the finding that both the content and the process of HR systems jointly affect important outcomes of hotel operations also provides managerial implications. Recent studies of SHRM clearly showed the critical role of frontline managers in implementing HR practices (e.g., Sikora et al., 2015; Yang & Arthur, 2019). Although HR practices are designed by HR people (HR directors, managers, practitioners), it is the frontline manager who actually uses them. For this reason, frontline managers need to know their HR systems in depth and to properly use such systems. To make this happen, each hotel needs to find ways to increase managers’ awareness of the HR practices that the hotel adopts. One way of doing this is to provide hotel managers with training pro- grams. Given that in our sample, each hotel had much discretion in designing its own HR system, each unit itself should design and provide training programs to its managers. However, frontline managers also need to properly use the HR practices adopted by their hotel, because the way HR practices are applied to each employee affects the employee perception of HR practices. Managerial training and development in the effective use of HR practices can also be useful (Bos-Nehles, Van Riemsdijk, & Kees ).

6. Conclusions, limitations, and future research

As the SHRM literature suggests, the clear divide between ‘content’ and ‘process’ is artificial (e.g., Helfat, 2009, pp. 30–34). The same logic would apply to the case of observing the effect of HPWS on employee behavior and organizational performance (Arthur, Herdman, & Yang, 2016). In this study, we examined the effect of the HPWS (content) on the collective OCB and organizational service performance under the influence of the procedural-justice climate (process). We found that employee responses to the HPWS and consequently the effect of the HPWS on organizational service performance (i.e., overall customer satisfaction and intention to return) are contingent on the strength of the procedural-justice climate. This finding suggests that the content and implementation of HPWS might indicate independent constructs but should work simultaneously with the process to present the intended effect of HPWS adopted by the organization. For the organization hop- ing to promote organizational performance through people, more efforts to effectively implement the HPWS appear indispensable.

There are several features of the study that limit our capacity to

generalize these findings. First, the hotel industry represents an espe- cially intensive service context, so it is appropriate to examine the causal linkages that are important for improving customer-service outcomes. However, we limited our sample to a single hotel franchise group in a single industry. Although this limitation is offset in part by the natural controls of extraneous variance imposed by the sample, to ensure generalizability, future research should focus on other industries and more diverse samples. Indeed, research conducted in other service- delivery contexts also represent an important research direction.

Also, we used lagged service performance data to provide more confidence in the hypothesized causal direction of the proposed re- lationships. However, given the cross-sectional nature of the employee- provided measures, definitive conclusions about the causal direction of these relationships are not possible. Additional longitudinal research is necessary to further confirm the temporal ordering of these effects (Schneider et al., 2005; Wright et al., 2003, 2005).

Last, a cursory review of items employed in past research to assess perceived HR practices reveals that measures often include both items requesting objective assessments of the adopted HR practices and items targeting subjective judgments of the quality of implementation (e.g., Patel & Conklin, 2012). For this reason, research should pay attention to the measurement of HR practices perceived by employees to ensure clarity about whether these assessments target the content of practices or evaluative judgments of the exchange quality between an employer and employees through HR practices. Therefore, empirical attention to the measurement of perceived HR practices is warranted.

Credit author contribution statement

Jaewan Yang: Conceptualization, Data curation, Investigation, Methodology, Formal analysis, Writing – original draft. Youngsang Kim: Formal analysis, Methodology, Writing – original draft. Peter B. Kim: Conceptualization, Methodology, Writing – original draft.

Funding

In conducting this work, Jaewan Yang was supported by the Hankuk University of Foreign Studies Research Fund.

Impact statement

This study examines how human resource systems can be useful for generating positive employee behaviors and higher organizational per- formance in hotels. Our findings benefit not only the hotel industry, but also the overall society in three ways. First, the study demonstrates the idea “investment in people pays off”. Although employees are often considered as costs in tough competitions, this study provides a strong justification for the pursuit of a more employee-centered organization. Second, the study suggests a powerful way that would benefit the service economy. When high investment and fair treatment are experienced, service employees would display more positive behaviors fulfilling customer expectations. Finally, our findings can be applied to many different organizations and institutions. That is, it is not just about ‘what’ but also ‘how’ when it comes to the implementation of practices and policies that are adopted to benefit our society.

Declaration of competing interest

The authors have no conflicts of interest to declare.

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Jaewan Yang is an assistant professor of organization and human resource management at the college of business, Han- kuk University of Foreign Studies. His research interests include strategic human resource management, HR digital trans- formation, group process and leadership, and workplace climate. He has served on numerous committees and advisory boards for the Korean government.

Youngsang Kim is an assistant professor of organization and human resources at SKK Business School, Sungkyunkwan Uni- versity. He received his PhD from the University of South Car- olina. His primary research focuses on strategic human capital, strategic human resource management, contingent workers, turnover, workplace diversity, and environmental sustainability.

Peter B. Kim is a professor in the School of Hospitality and Tourism and an associate director of New Zealand Tourism Research Institute at the Auckland University of Technology. He received his PhD from the Pamplin College of Business at the Virginia Tech University. His primary research focuses on ser- vice management and marketing in the contexts of hospitality and tourism.

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  • Pushing forward high-performance work systems in the hotel industry: A procedural-justice climate to promote higher unit-le ...
    • 1 Introduction
    • 2 Theory and hypotheses
      • 2.1 HPWS and collective OCB
      • 2.2 The mediating role of collective OCB on the relationship between unit-level HPWS perceptions and organizational service ...
      • 2.3 The moderating effect of procedural-justice climate
    • 3 Methods
      • 3.1 Data collection and sample
      • 3.2 Measures
        • 3.2.1 Perceived HPWS (unit level)
        • 3.2.2 Procedural-justice climate
        • 3.2.3 Collective OCB
        • 3.2.4 Organizational service performance
        • 3.2.5 Control variables
    • 4 Results
    • 5 Implications of the findings
      • 5.1 Theoretical implications
      • 5.2 Managerial implications
    • 6 Conclusions, limitations, and future research
    • Credit author contribution statement
    • Funding
    • Impact statement
    • Declaration of competing interest
    • References

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Introduction

The analysis of employment relationships (ERs) at an organizational level has been examined from two differ- ent points of view: employee versus employer. The first perspective, that of employees, has focused mainly—in terms of published papers—on the psychological contract and the responses developed by employees as a conse- quence of the organization’s failure to fulfill some of its promises, frustrating employees’ expectations about career prospects or compensation, for example (Birtch et al., 2016; Conway & Coyle-Shapiro, 2012; Guest, 2004). The second perspective—of the employer—is much more limited in the literature and has focused previ- ously on analyzing the relationships between inducements offered by the organization and its expectations about

employees’ behavior or the effects of Leader-Member Exchange (LMX) and the development of sustainable strategies on ERs (Audenaert et al., 2017; Bornay- Barrachina et al., 2012; Lopez-Cabrales & Valle-Cabrera, 2020; Tsui et al., 1997). The employer’s perspective on the ER is distinct from the employee’s perspective, focus- ing on exchange between the organization and jobholders, instead of on individual perceptions of exchange (Shore et al., 2004; Tsui et al., 1997). Therefore, when examining

Strength of HRM systems and perceived organizational support as determinants of employment relationships: The perspective of HR managers and workers’ representatives

Mirta Díaz-Fernández , Alvaro López-Cabrales and Ramón Valle-Cabrera

Abstract This article seeks to explain and understand how the strength of a human resource management (HRM) system and perceived organizational support (POS) determine employment relationships (ERs) in organizations and the behaviors they generate in terms of organizational citizenship behavior (OCB) and intentions to remain (IR). A typology of ERs is proposed, considering perceptions about the HRM system (Ability, Motivation, and Opportunity [AMO] model), its strength, and POS. An analysis was adopted, looking into organizations in two separate studies in service sectors (hospitality and financial services), taking as informants to 130 and 87 HRM managers and 30 workers’ representatives as proxies of organizations and employees, respectively. Cluster analysis and analysis of variance (ANOVA) were conducted, and results are congruent with theoretical frameworks such as Attribution Theory and Social Exchange Theory. Depending on how stakeholders understand the way in which the HRM system is implemented and the level of POS, certain ERs are developed and explain employees’ responses in terms of OCB and IR behaviors.

JEL CLASSIFICATION: M1.

Keywords Employment relationships, AMO HRM practices, strength of HRM system, perceived organizational support, organizational citizenship behavior, intention to remain

Universidad Pablo de Olavide, Sevilla, Spain

Corresponding author: Mirta Díaz-Fernández, Universidad Pablo de Olavide, Carretera de Utrera, Km1., 41013 Sevilla, Spain. Email: mdiafer@upo.es

977506 BRQ0010.1177/2340944420977506Business Research QuarterlyDíaz-Fernández et al. research-article2020

Regular Paper

2 Business Research Quarterly

the employee’s perspective, the focus is on knowing the consequences and reactions from employees when they perceive a breach in the commitments and promises they expect from the firm. In a different way, analysis of the employer’s perspective studies what the organization expects from employees in accordance with the offers made by managers, management systems, and/or firm strategy. Both approaches contribute to the literature with interesting but partial results. The question we ask here is whether it is possible to understand ERs between the two parties when we only have information from one side.

This article considers that the study of ER should include the two main groups of stakeholders, employees and employers, and that their reactions must be understood as a consequence of their perceptions of the entire human resource management (HRM) system (content of the HRM System) offered by a firm to its employees and how it is applied (HRM process). For example, a manager may expect and understand that an employee’s intention to remain in his or her firm will be lower than at other firms that are able to pay higher salaries and offer better devel- opment prospects to their employees. Moreover, both per- ceptions (employees vs employer) may differ, as what is high for managers may be perceived as low for employees. Hence, we believe all perceptions are necessary and useful to gain a better understanding of behavior in organizations (Liao et al., 2009; Nishii & Lepak, 2008). Hence, the two broad research questions we attempt to answer are as fol- lows: first, how do employers and employees perceive the HRM system? What is the degree of employer/employee agreement? Where do disagreements in perceptions occur? And second, what are the effects of such perceptions on employee behavior?

To address the research questions proposed, we must take into account the way ERs are analyzed. In this regard, in this article, not only do we consider a partial aspect of these working relationships (compensation, career man- agement, type of contract, etc.) as analyzed mainly in the literature (Conway & Coyle-Shapiro, 2012; Guest, 2004), but we also consider the whole HRM system, as it affords us a more comprehensive understanding than if practices are studied in isolation or individually (Combs et al., 2006). We have chosen the Ability, Motivation, and Opportunity (AMO) model (Appelbaum et al., 2000; Jiang et al., 2012; Paauwe & Boselie, 2005) as it covers the whole HRM system. However, in line with Bowen and Ostroff (2004), we also believe that perceptions about the strength (process) of such a system, in other words, how that HRM system is applied or implemented (Bowen and Ostroff, 2004; Ostroff & Bowen, 2016), can explain behaviors and the nature of ERs. Attribution Theory indi- cates individual perceptions about the intentions pursued by the HRM system, the applied procedures, and relation- ships among variables condition behaviors (Hewett et al., 2018; Nishii & Lepak, 2008). In other words, the way in

which the development and application of the HRM sys- tem (process) is perceived directly explains employee behaviors.

As well as HRM Strength, a second variable related to ERs studied here is perceived organizational support (POS). This variable contains aspects not included in the strength of the HRM system, such as the degree to which a firm values employees’ contributions and pays attention to aspects related to their well-being, which also affects employees’ behavior (Edwards, 2009; Eisenberger et al., 1986; Lee & Peccei, 2007). In this case, Social Exchange Theory (Blau, 1964) and the norm of reciprocity (Gouldner, 1960) indicate that employee behaviors will reflect the degree to which they perceive that the firm pays attention to and supports aspects that go beyond just the issues set out in their formal employment contract. Therefore, HRM system strength and POS, as we will detail further, have been related to certain employee behaviors, specifically, their intention to remain (IR) and organizational citizen- ship behavior (OCB), both of which have received atten- tion from researchers due to their impact on organizations (Kehoe & Wright, 2013).

The conceptual development of both explanatory vari- ables allows us to identify four different types of ER and to offer different hypotheses regarding how each one of the ER models is associated not only with different employee behaviors in terms of IR and OCB but also with different levels within the AMO systems that emphasize different HRM practices.

A last issue to be highlighted is our choice of inform- ants for analyzing ERs. First, HRM managers in our sam- ple as organizational representatives and managers with the most qualified knowledge in the object of our study. And second, workers’ representatives. We decided to ask them as informants because it was impossible to get a rep- resentative sample of employees in all the sample firms and workers’ representatives are democratically elected by all employees to be their proxies in the collective bargain- ing processes. We consider that both informants (HRM managers and workers’ representatives) are quite qualified and well-known of issues that we analyze in this article, so they can provide a global vision in each sector (Arthur & Boyles, 2007; Bou-Llusar et al., 2016; Spanish Law 36/2011, articles 62, 63, and 88).

Overall, we believe this article, based on Social Exchange Theory and Attribution Theory, makes four con- tributions to the literature on ERs and HRM. First, by pro- posing a novel analytical framework of ERs based on the strength of the HRM system and POS, setting out four dif- ferent employment models. This would be a contribution from the strand of research initiated by Tsui et al. (1997), because our proposal assesses the ER considering manag- ers’ and employees’ perceptions about HRM system strength and POS, instead of Tsui’s interests in induce- ments versus expectations from a managerial perspective

Díaz-Fernández et al. 3

only. Second, by highlighting the effects of each ER model on employees’ extra role behaviors and intention to remain in the organization, instead of considering firm perfor- mance as the main outcome of ER, as Wang et al. (2003) did. Third, we identify the values of each dimension of the AMO model for each of the four employment models. This is a contribution as it is a way of analyzing the content of the ER itself. And fourth, we contrast perceptions from two different stakeholders in ER: HRM Managers and union representatives, thereby seeking to enrich the indi- vidual and the organizational perspective of ER.

The structure of this article is as follows: the next sec- tion is dedicated to the development of the theoretical framework that supports our proposed ER typology and specific hypotheses regarding ERs and employee behav- iors. The third section contains the empirical analyses, and the article ends with conclusions and implications in the fourth and last section.

Theoretical background and hypotheses

As Shore et al. (2014) pointed out, the term “Employment Relationship” (ER) is vague, encompassing many issues, and it has been studied from several theoretical frame- works. This article adopts a firm-level perspective, to understand and explain the behaviors displayed by the main stakeholders involved in ERs, as the internal factors that determine such behaviors. Therefore, the theoretical frameworks that support our analyses are Attribution Theory (Kelley, 1967; Kelley & Michela, 1980) and Social Exchange Theory (Blau, 1964), as both of them explain that behavior is a form of response to the assumptions and interpretations made about organizational actions and decisions.

Analysis of some of the definitions provided for ERs shows that these definitions refer to an exchange agree- ment between employer and employee whereby the employer hires people to contribute to the production of goods and services that generate benefits by means of their manual/intellectual work in exchange for compensation (Bosch, 2004; Torka et al., 2005). Boxall (2013) notes that the quality of ERs is good when employer and employee achieve an alignment or fit in terms of capacities, commit- ments, and contributions, with such a balance providing benefits for both parties.

The above clearly highlights two aspects that should be considered: first, the content of the exchange and, second, the players within the relationship. An analysis of exchange requires the specification of which aspects endow it with content, while the second aspect establishes the perspec- tive from which the analysis is performed: employee or employer. Given that this latter aspect—the perspective adopted—can condition the analysis of the former, we will

start by looking at this point and highlighting its most rel- evant features.

ER perspectives: employer or employee

A review of the existing literature on the subject reveals a clear imbalance in the attention paid to the players within ERs, with a major focus on the employees’ perspective and the predominant use of Social Exchange Theory (Blau, 1964) and the Psychological Contract (Coyle-Shapiro & Kessler, 2002 ; Guest, 2004) as the frameworks used for analysis.

As Guest and Conway (2002) pointed out, the Psychological Contract attempts to capture the employers’ or employees’ perceptions of their ERs in terms of their reciprocal obligations. The focus of the Contract is on the fulfillment of expectations, obligations, and promises, considering the effects of such compliance on employee satisfaction, well-being, commitment to the organization, and performance.

In addition, a key concept in the analysis of ERs is reci- procity (Gouldner, 1960). Reciprocity means that one party (the employee) will behave in the same way and with the same intensity as the other (the employer) to compen- sate for the behavior and/or decisions of the latter (Social Exchange Theory: Blau, 1964), and this would explain the development of extra role behaviors by the employee. However, as pointed out by Coyle-Shapiro and Shore (2007), it is interesting to take into account that the rule of reciprocity has some limitations when applied to ER anal- ysis, since it does not work in the same way for economic and social exchanges, and also because the value attached to the content of the exchange is different, depending on the parties involved.

On the contrary, when ERs have been studied from the employers’ point of view, they have been analyzed accord- ing to the inducement-contribution model of March and Simon (1958). One example of this approach is the study carried out by Tsui et al. (1997) and other subsequent papers based on her proposed ER (Hom et al., 2009; Tsui & Wu, 2005; Wang et al., 2003). Tsui et al. (1997) defined ERs as the managers’ expectations regarding employees’ contributions to the firm in response to organizational inducements. Tsui’s proposal has been further developed in other studies linking ER to other variables such as com- pany strategy and ownership structure (Wang et al., 2003), staff turnover and commitment (Hom et al., 2009), flexi- bility and learning (Lopez-Cabrales et al., 2011), as well as human capital and business innovation (Bornay-Barrachina et al., 2012).

In contrast to the two approaches mentioned above— separate analyses from either the employees’ or employers’ point of view—a third path may be taken, which aims to capture the perspectives of the employer and the employee

4 Business Research Quarterly

regarding the dimensions that characterize the ER. Empirical studies show that employees’ perceptions regard- ing these practices vary significantly from the reports com- piled by managers (Liao et al., 2009; Nishii & Lepak, 2008). This article aims to fill this gap by suggesting that the analysis of ERs should include the perceptions of both the employer and the employee in terms of what the busi- ness organization offers, thereby setting it apart from exist- ing studies. Coyle-Shapiro and Kessler (2002) examine the content of the Psychological Contract from the perspective of the employer and the employee, giving consideration to their mutual obligations and the effects of a perceived rup- ture or breach of the contract on commitment and OCB, as well as on subsequent behavior. Taylor and Tekleab (2004) also lean toward this tendency, considering both the employer and employee in their analysis, albeit the authors focus on agreements governing reciprocal obligations between the two parties as well as the consequences of breaking those agreements on job satisfaction, staff turno- ver, OCB, and performance. Atkinson (2007) demonstrates, based on interviews carried out with employers and employees, the consequences of breaching the obligations established between the parties on the development of extra role behaviors.

Content of the ER

The literature seems to suggest that ERs can be linked to development and training opportunities, the abilities and knowledge of individuals, the involvement of employees in decision-making processes, job security, and fair pay systems, among others (Roehling et al., 2000). All the ele- ments mentioned above are linked to the management pro- cesses that share the firm’s human resource system, which allows us to consider the necessity of studying all of them in an integrated manner.

Taking into account the content of ERs, this article pro- poses focusing on the HRM system and, more specifically, on human resource management practices that act in rela- tion to the competences, abilities, and capacities of people (ability-enhancing), which affect motivation through the establishment of reward systems linked to individual or group performance, or to promotion (motivation-enhanc- ing), and those linked to the opportunities open to employ- ees to participate in the organization’s formal processes (opportunity-enhancing) (Kehoe & Wright, 2013). These practices determine the “What” of the HRM system. The AMO framework (Appelbaum et al., 2000) focuses on the importance of taking into account variables at the individ- ual level, such as employees’ skills and competences, their motivation, and their opportunity to participate. Paauwe and Boselie (2005: 69) have pointed out that the AMO framework is a key element when explaining the effect of HRM practices on both firm and employee performance (Appelbaum et al., 2000; Boselie et al., 2005).

The literature has widely demonstrated the relation- ships between the AMO model and OCB, turnover inten- tions, employee affective commitment, and individual performance (Gardner et al., 2011; Knies & Leisink, 2014). However, analysis of employee and employer per- ceptions of such relationships (AMO-individual behav- iors) has been scarce. This fact is interesting, since the employees’ perception of their ERs could be a determinant when explaining their behavior.

Strength of the HRM system and POS as dimensions of the ER: a typology of ERs

The contradictory results obtained when analyzing the effects of HRM systems within organizations justify the need for researchers to pay attention not only to the con- tent of HRM systems but also their processes (Heffernan et al., 2016; Katou et al., 2014; Sanders et al., 2014). In doing so, we propose to study employees’ and employers’ perceptions, taking into account two dimensions: “strength of the HRM system” (Bowen & Ostroff, 2004) and “Perceived Organizational Support (POS)” (Eisenberger et al., 1986). The reason for this choice of variables is that both of them exert an influence on employees’ behavior (Delmotte et al., 2012; Lee & Peccei, 2007).

As Ostroff and Bowen (2016) suggest, HRM system strength has implications with regard to the way employ- ees perceive the exchange agreement they have with their employer. What is distinctive about the strength concept is that it is focused on the HRM process, that is, how the HRM system is distributed, implemented, and how it sends messages to employees and generates a climate within the organization. Different studies have found the positive impact of a strong HRM system on commitment (Cafferkey et al., 2019) or work engagement and OCB (Katou et al., 2014).

POS was chosen as a second explanatory variable for ER because it also aims to capture employees’ behaviors, since POS is defined as perceptions regarding the extent to which the firm values employees’ contributions and pays attention to aspects related to their well-being (Allen et al., 2003; Eisenberger et al., 1986; Lee & Peccei, 2007). As Baran et al. (2012) pointed out, POS explains the relation- ships between employer and employee, based on social exchange and its effects on relevant outcomes such as citi- zenship behavior and turnover. Furthermore, POS is used as a mediator to explain the relationship between HRM practices and employee behaviors such as improved com- mitment, job satisfaction, organizational citizenship, cus- tomer-oriented behaviors, and reduced employee turnover (Gavino et al., 2012; Meyer & Smith, 2000; Rhoades et al., 2001).

Following Bowen and Ostroff (2004) and Ostroff and Bowen (2016), HRM system strength is defined by its dis- tinctiveness, consistency and consensus, variables that

Díaz-Fernández et al. 5

positively affect a psychological and organizational cli- mate that produces individual and firm performance. The distinctiveness of an HRM system would be defined as the extent to which it stands out and captures employees’ attention, arousing their interest. It has four dimensions (Delmotte et al., 2012): Visibility, the degree to which employees have a clear idea of HR practices, know which HR programs are implemented and what can and cannot be expected of the HR department; Understandability, the degree to which employees understand how HR practices work. Based on Attribution Theory and research from Kelley (1967) and Feldman (1981), if employees perceive that stimuli are unclear or ambiguous, they cannot under- stand how they work. Legitimacy means that the HR func- tion is perceived as a high-status and high-credibility function; and finally, Relevance is defined as the degree to which HR initiatives and practices are perceived as useful, significant, and relevant for employees’ daily work.

A second feature of a strong HRM system is its consist- ency. For employees to make accurate attributions about what behaviors are expected and rewarded, attributional principles of causation must be present. These notions are related to Kelley’s (1967) concept of consistency. Consistency generally refers to establishing an effect over time whereby the effect occurs each time the entity is pre- sent, regardless of the form of the interactions.

Thus, consistency focuses on features such as instru- mentality, validity, and consistent HRM messages. Instrumentality can be defined as the degree to which HR practices and programs positively influence levels of motivation, competence, and empowerment and are thus able to steer the behavior of employees in the desired direction. Validity refers to the degree to which there is an agreement between what HR practices purport to do and what they actually do. Finally, the continuity and stability of HR practices over time are considered consistent HRM messages.

A strong HRM system implies consensus or agreement among employees and managers with regard to the even- effect relationship. In this case, procedural justice—the degree to which the process whereby decisions are reached or outcomes are allocated is fair (Folger & Cropanzano, 1998)—and distributive justice—the degree to which the allocation of benefits and resources (the result of a deci- sion) is fair—are the main drivers of this consensus.

Although HRM system strength could be a powerful dimension for information about how managers and employees perceive the ER, a second dimension to explore to understand employee behaviors is POS, as analyzed by both managers and workers. POS is the employee’s belief that organizational practices help to fulfill his or her socio- emotional needs and that the firm also values his or her contributions and is even concerned about his or her well- being (Eisenberger et al., 1986). The literature has pointed out that HRM practices that contribute to employees’

development, favor their participation in decision making, and are fair in rewarding workers are an antecedent to POS, having a positive impact on satisfaction at work, employee commitment, and intention to remain (IR) (Allen et al., 2003; Shore & Wayne, 1993). Rhoades et al. (2001) found that favorable working conditions and rewards increase POS and minimize quit intentions. HRM systems can be perceived as practices that invest in employees, meaning organizational inducements and commitments to workers, favoring their identification with the firm and enhancing their intention to remain and display extra role behaviors (Edwards, 2009). Research also shows that the effects of POS are not always produced directly on employees’ behaviors but rather are mediated by other variables such as, for example, affective commitment, and they can even be reduced by the perception of the support that supervisors give to employees (Lee & Peccei, 2007; Maertz et al., 2007; Wayne et al., 1997). Some research demonstrates that POS activates socio-emotional aspects that buffer the negative effects of some job aspects on employee well-being (Babalola, 2010; Byrne & Hochwarter, 2008). In this regard, Armeli et al. (1998) pointed out that reciprocity may drive improvements in employee performance and involvement. Baran et al. (2012) detail papers that demonstrate the relationships between affective commitment and POS in non-US con- texts, thus explaining employee behaviors.

In this article, we propose that, depending on the per- ceived high or low strength of the HRM system and high or low POS, four different ERs can be deduced (Figure 1). We think that this approach takes a step further than other ER typologies, proposed as relational versus transactional, and which are based on the specification and duration of relationships, or other types suggested by Tsui et al. (1997, 2005) which are focused on inducements from the organi- zation to employees and managers’ expectations regarding workers’ behaviors.

The case of ER1 supposes ERs that are high in both aspects: Strength of HRM system and POS. As mentioned

St re

ng ht

H RM

sy te

m Lo

w

H ig

h

ER2 Hypotheses 3.1. & 3.2

Medium AMO Medium OCB

Medium IR

ER1 Hypotheses 1.1. & 1.2

High AMO High OCB

High IR

ER3 Hypotheses 2.1. & 2.2

Low AMO Low OCB

Low IR

ER4 Hypotheses 4.1. & 4.2 AMO Higher than ER2 OCB Higher than ER2

IR Lower than ER2

POS Low High

Figure 1. Theoretical model.

6 Business Research Quarterly

earlier, previous research (Allen et al., 2003; Shore & Wayne, 1993; Wayne et al., 1997) suggests that a high level of POS is due to the perception that the HRM system (antecedent to POS) contains HRM practices associated with the three dimensions that define the AMO model (Abilities-, Motivation-, and Opportunities-enhancing practices); hence, these practices should also have a high assessment. Moreover, considering that POS is positively and directly associated with satisfaction at work, employee commitment, and IR (Allen et al., 2003; Eisenberger et al., 1990), and taking into account that developmental HRM practices that contribute to employee motivation also posi- tively affect IR and activate OCB (Shaw et al., 1998), we might think that these employee behaviors should be pre- sent in this type of ER. Studies indicate that high POS and strong HRM systems are important for extra role behaviors and commitment (Allen et al., 2003; Kim et al., 2016). Furthermore, when HRM practices clearly set out desira- ble behaviors, individual outcomes such as OCB and lower turnover and absenteeism (proxies of intention to remain) are reinforced (Jackson et al., 2014).

The arguments set out above have led us to label this ER an “Efficient and Productive ER” and to propose our first hypotheses:

H1.1. Employment Relationship ER1, defined by high values in both perceptions about HRM Strength and POS, will be characterized by AMO systems with high values in Abilities-, Motivation-, and Opportunity- Enhancing Practices.

H1.2. Employment Relationship ER1, defined by high values in both perceptions about HRM Strength and POS, will be characterized by a high level of OCB and a high level of IR.

The opposite model would be ER3, characterized by a weak, deficient, and ambiguous HRM system. Based on the above reasoning, one might expect that a low level of POS not only translates into a weak HRM system (AMO) in terms of its content, but also that ambiguity in the way it is defined, low level of consensus and lack of consistency (weak HRM system) will provoke employee behaviors associated with intentions to leave the organization and an absence of OCB (Jackson et al., 2014; Jiang et al., 2012). This ER is inconsistent, and we might label it an “Unproductive and Inefficient ER.” Consequently, our second hypotheses are as follows:

H2.1. Employment Relationship ER3, defined by low values in both perceptions about HRM Strength and POS, will be characterized by AMO systems with low values in Abilities-, Motivation-, and Opportunity- Enhancing Practices.

H2.2. Employment Relationship ER3, defined by low values in both perceptions about HRM Strength and

POS, will be characterized by a low level of OCB and a low level of IR.

Whereas these cases provide a certain equilibrium (both high and both low) in terms of Strength and POS, that is not the case with the other ERs, which can be understood differently. Situation ER2 shows a clear imbalance, since the HRM system is perceived to be strong, that is, clearly defined, well structured, and fair, but it is perceived as sup- porting only organizational requirements, but not employ- ees’ needs—suggesting a low assessment on POS. In such a case, employees will look to improve support from the organization, showing their dissatisfaction through absen- teeism and a lack of extra role behaviors. Employees sim- ply comply with organizational standards and procedures. The low value in POS suggests that HRM practices are mainly focused on the job instead of the employee. Therefore, the values associated with HRM system will be lower than ER1. These relationships will generate low commitment and work satisfaction (Allen et al., 2003), so OCB is not expected (Shore & Wayne, 1993). However, the value obtained in Strength of the HRM system, that is, the positive assessment made of the system’s distinctive- ness, consistency in application, and procedural justice may explain an employee’s willingness to remain in the organization, because the working climate can be positive (Bowen & Ostroff, 2004). As DeNisi and Smith (2014) suggested, strong HRM systems send clearer messages about behaviors required at work and how they can be lev- eraged by HRM practices (AMO systems in our case). Disagreement or dissatisfaction with this type of ER is not because of the “process” of the HRM system (attribution theory), but rather because of the lack of support to per- sonal issues that are extra job-oriented (exchange theory). Therefore, this ER is clearly organization-oriented, and we have labeled it “Organization-Oriented and Highly- Structured ER,” suggesting our third hypotheses:

H3.1. Employment Relationship ER2, defined by high values in perceptions about HRM Strength and low POS, will be characterized by AMO systems with val- ues in Abilities-, Motivation-, and Opportunity- Enhancing Practices, lower than ER1.

H3.2. Employment Relationship ER2, defined by high values in perceptions about HRM Strength and low POS, will be characterized by a low level of OCB and a moderate level of IR.

Finally, ER4 implies a low perception of HRM strength but a high level of POS. Based on the theoretical arguments explained previously, the high value in POS could be explained by perceptions about HRM practices that cover individual needs but they fail in the administration, imple- mentation, formalization, and clarity of the HRM system itself, as it can be observed from their low values in Strength.

Díaz-Fernández et al. 7

Taking into account reasonings from Social Exchange Theory, OCB in employees will be moderated, as if employ- ees perceive that the organization cares about their well- being and values their contribution (POS) they have a motivation to improve their outcomes (Gavino et al., 2012). Also, the low values in Strength of HRM system, suggesting the lack of formalization and presence of discretionality fol- lowing the Attribution Theory, make us expect low values in IR. The lack of either clear or formal performance appraisal mechanisms that assess and reward employees’ results define this type of ER as inefficient (DeNisi & Smith, 2014). This model could be called the “Employee-Oriented and Poorly-Structured ER.” Therefore, we can set out our final hypotheses:

H4.1. Employment Relationship ER4, defined by low values in perceptions about HRM Strength and high POS, will be characterized by AMO systems with mod- erate values in Abilities-, Motivation-, and Opportunity- Enhancing Practices, higher than ER2.

H4.2. Employment Relationship ER4, defined by low values in perceptions about HRM Strength and high POS, will be characterized by a moderate level of OCB and a low level of IR, lower than ER2.

Methods

This article combines perceptions from two ER stakehold- ers, HR managers and employees’ representatives. The research focused on two different sectors, Hospitality and Financial Services, for the purpose of studying how the different variables behave in each sector. The first sector— hospitality—has the highest impact on Spanish gross domestic product (GDP); the second—financial services— has experienced dramatic changes in recent years during the financial crisis. In 2017, the hospitality sector’s contri- bution to the country’s GDP was 13.7%, whereas the financial services sector’s contribution was 14.2% (INE, 2017). In addition, during the last decade, both activity sectors have overcome different challenges and difficul- ties. Financial services firms, on the other hand, have dras- tically downsized their networks of branches and offices. Whereas, in 2008, there were 45,662 financial service offices and branches in Spain, by 2018, this number had fallen to 27,706. Financial services firms have also had to deal with new information technologies (IT). IT develop- ments have changed the relationships between financial services firms and their customers (Banco de España, 2018; INE, 2017).

We performed two different and separate studies focused on hotels and financial services firms, respec- tively, namely “Study 1: hotels” and “Study 2: financial services firms.” We studied 4-star hotels and financial ser- vices firms with more than 50 employees. We chose this size of firm because Spanish labor regulations require such

firms to comply with the obligation to have trade union representatives. Our two populations, applying these requirements, included 392 hotels and 295 financial firms.

Respondents

To gather information from the employers’ point of view, we called the HR Managers who represented the organiza- tion and who were experts in the topic of our research. Our decision to consider the expectations of HR managers is justified because they are ultimately responsible for designing and implementing the HRM system, in terms of the distinctiveness of the messages it sends out, consist- ency in the way HR practices work, and the degree of con- sensus they generate. This choice of managerial perceptions is similar to the one made by Tsui in her research (Tsui et al., 1997; Wang et al., 2003). Therefore, this article introduces the perceptions and beliefs of such managers regarding the content of HRM systems, their strength, and the impact they believe such variables have on the behav- iors of the employees for whom they are responsible.

We sent a questionnaire to each HR manager in both populations, that is, we sent a questionnaire to HR manag- ers in each hotel and financial services firm. We received 130 valid questionnaires from hotels and 87 from financial firms, representing a 33.16% and 29.49% response rate, respectively.

To obtain information from the employees’ point of view, we decided to call their trade union representatives, and we contacted the largest unions in the Spanish hospi- tality and financial service sectors. These unions—which have participated in collective bargaining processes in their respective sectors, negotiating employees’ working conditions—were in charge of sending the questionnaire to workers’ representatives in the hotels and financial ser- vices firms surveyed. In this case, we obtained data from 30 valid questionnaires in each sector from workers’ repre- sentatives who participated in the last collective bargain- ing in each sector. They are representatives of all the employees in both samples we are analyzing (Law 36/2011, article 88 point 4). Collective bargaining agreements are agreements between union representatives and firm repre- sentatives and they set out the rights and responsibilities of all employees. (Specifically, collective bargaining agree- ments standardize the following issues: work schedule and productivity, training, career, salaries and compensations, overtime remuneration, holidays, and work–life balance; Estatuto de los Trabajadores, articles 62 and 63, Law 36/2011.)

Measurements

All the items included in the questionnaire assess the vari- ables through a 5-point Likert-type scale, ranging from 1 (Totally disagree) to 5 (Totally agree). They are detailed

8 Business Research Quarterly

below. All HR managers and workers’ representatives answered the same questionnaire.

HRM. To analyze HRM practices, we considered the AMO system. We measured the AMO system using the scales proposed by Gardner et al. (2011). The scale identifies three different sets of HRM practices: HRM practices that reinforce abilities. Examples of items are as follows: appli- cants undergo structured interviews before being hired; applicants for this job take formal tests (paper and pencil or work sample) before being hired; on average how many hours of formal training do employees in this job receive each year?; HRM related to motivation, for example: Pay raises for employees in this job are based on job perfor- mance; employees in this job have the opportunity to earn individual bonuses (or commissions) for productivity, per- formance, or other individual-performance outcomes; qualified employees have the opportunity to be promoted to positions of greater pay and/or responsibility within the company; and HRM practices that favor opportunity, for example: How often do employees receive formal com- pany communication regarding company goals (objec- tives, actions, and so on)?; how often do employees receive formal company communication regarding operating per- formance (productivity, quality, customer, satisfaction, and so on)?; how often do employees receive formal com- pany communication regarding financial performance (profitability, stock price, and so on)?

Strength of the HRM system. We measured the strength of HRM systems using the scale proposed by Delmotte et al. (2012). These authors measured the three dimensions of HRM strength referred to as distinctiveness, consistency, and consensus, as proposed by Bowen and Ostroff (2004). The scale includes items such as: In this organization, rewards are clearly related to performance; In this organi- zation, the results of the yearly appraisals are generally considered to be fair; HR staff have enough authority to get their ideas accepted; In this organization, HRM is synony- mous with excellent work; The HR practices implemented in this organization sound good in theory, but do not work in practice; The appraisal procedure developed by the HR department has in practice other effects than the intended ones (Reverse coded); Top management and HR manage- ment clearly share the same vision; and Management unan- imously supports HR policy in this organization.

POS. We measured POS using the scale proposed by Rhoades et al. (2001). These authors identify only one dimension for POS. This scale includes items such as: The organization really cares about my well-being; the organi- zation values my contributions to its well-being; the organ- ization strongly considers my goals and values; the organization shows little concern for me; and the organiza- tion is willing to help me if I need a special favor.

Extra role behaviors. We considered organizational citizen behavior (OCB) and intention to remain (IR) as extra role employee behaviors. In this study, we used the scale from Kehoe and Wright (2013) to measure OCB and IR. Spe- cifically, Kehoe and Wright (2013) identify two dimen- sions, one dimension for OCB and another for IR. The OCB scale includes items such as: I provide constructive suggestions about how my department can improve its effectiveness; for issues that may have serious conse- quences, I express my opinions honestly even when others may disagree; I “touch-base” with my coworkers before initiating actions that might affect them; I encourage oth- ers to try new and effective ways of doing their job; and I help others who have large amounts of work. The IR scale includes items such as: I would turn down a job with more pay to stay with this organization; I plan to spend my career at this organization; I intend to stay at this organiza- tion for at least the next 12 months; and I do not plan to look for a job outside of this company in the next 6 months.

Data analyses and results

We performed two different studies in two different sec- tors. First, we analyzed the reliability and validity of each construct and then we separately tested the proposed hypotheses in both studies, Study 1: hotels and Study 2: financial services firms.

We performed confirmatory factor analysis (CFA) to assess the internal reliability and validity of each construct. Furthermore, discriminant validity was guaranteed for both studies. Then, we performed a two-step cluster analy- sis and an analysis of variance (ANOVA) to identify differ- ent types of ER and test the proposed hypotheses in each study.

To perform CFA on our sample (Goodness of fit: χ2: 2,362.008; p: .02251; Bentler–Bonnet normed fit index [BB-NFI]: 0.896; Bentler–Bonnet non-normed fit index [BB-NNFI]: 0.0.952; comparative fit index [CFI]: 0.967; root mean square error of approximation [RMSEA]: 0.036), we considered all of the information obtained from 247 questionnaires completed by 130 HR managers and 30 workers’ representatives from hotels, along with 87 HR managers and 30 workers’ representatives from financial firms. We obtained three factors for the AMO model, namely ability, motivation, and opportunity (t = 2.670, t = 3.230, and t = 4.445, respectively). Three factors related to the strength of HRM systems were found: consensus, distinctiveness, and consistency (t = 2.955, t = 3.169, t = 3.466, respectively). In addition, we obtained a second- order factor as a measure of the strength of the HRM sys- tem (t = 3.22; goodness of fit: χ2 = 152.2521, p = .02640, BB-NFI = 812, BB-NNFI = 0.949, CFI = 0.952, and RMSEA = 0.042). For POS, OCB, and IR, we found one factor for each one, namely POS (t = 6.86), OCB (t = 3.53), and IR (t = 4.12), respectively. Table 1 shows the results of

Díaz-Fernández et al. 9

discriminant validity, and Table 2 includes descriptive sta- tistics and correlations. We concluded from Table 1 that the scales were reliable and that convergent and discrimi- nant validities were confirmed. The reliability of the scales was measured by the composite reliability value, which in all cases was greater than or equal to 0.7. Convergent validity was confirmed by the average variance extracted, which in all cases was greater than 0.5. Discriminant valid- ity was also confirmed, as the average variance extracted (principal diagonal in Table 1) was higher than the square of the correlations between factors.

Next, we tested the proposed hypotheses on our two sub-samples: hotels and financial firms.

Study 1: hotels

To identify different types of ER, cluster analysis was employed as a classic technique of explorative research. In this study, we followed a two-step cluster analysis. Two- step cluster analysis is an adequate way to determine the number of clusters (Chiu et al., 2001). Using this tech- nique, methodical concerns regarding the determination of the adequate number of clusters are addressed and over- come (Ketchen & Shook, 1996): two-step cluster analysis identifies groupings by running pre-clustering first and

then applying hierarchical methods. Since it uses a quick cluster algorithm upfront, it can handle large data sets that would take a long time to compute using hierarchical clus- ter methods. Furthermore, two-step cluster analysis also automatically selects the number of clusters, a task nor- mally assigned to the researcher in other cluster methods.

To identify and classify groups of homogeneous responses, we conducted a cluster analysis for the total number of cases in our hotel population (160 question- naires, 130 from HR manager and 30 from workers’ repre- sentatives). We found three different clusters: two of them included 80 and 50 firms that grouped answers only from HR managers and a third cluster was composed of 30 employees’ representatives, exclusively. We also con- ducted ANOVA to assess differences between clusters in terms of the type of ER (measured by the Strength of the HRM system and POS), assessment of the AMO system, and employees’ behaviors.

The strength of the HRM system and POS were consid- ered as variables to classify firms into clusters, as men- tioned above. Our results show three different clusters. Specifically, Clusters 1 and 2 contained answers from HR managers and Cluster 3 from workers’ representatives. Figure 2 shows the different clusters and how they are placed within our proposed theoretical architecture.

Table 1. Results from discriminant validity.

Abilities- enhancing HRM practices

Motivation- enhancing HRM practices

Opportunity- enhancing HRM practices

Strength of HRM system

POS OCB IR

Abilities-enhancing HRM practices 0.6262 Motivation-enhancing HRM practices 0.3003 0.6172 Opportunity-enhancing HRM practices 0.3163 0.3452 0.6841 Strength of HRM system 0.2404 0.2349 0.1282 0.7928 POS 0.2907 0.3143 0.1807 0.1905 0.6976 OCB 0.2853 0.4573 0.1917 0.1547 0.3498 0.7364 IR 0.1929 0.1940 0.2502 0.2407 0.2923 0.2907 0.6061

HRM: human resource management; POS: perceived organizational support; OCB: organizational citizenship behavior; IR: intentions to remain. Average variance extracted (AVE) is in the main diagonal. The rest of the numbers correspond to the existing squared correlations between factors. AVE is higher than the square of the correlations existing between the factors. Discriminant validity is guarantee.

Table 2. Correlations and descriptive statistics.

Abilities Motivation Opportunity Strength of HRM system

POS OCB IR M* SD

Abilities 1 1.68 0.42 Motivation 0.428** 1 1.61 0.75 Opportunity 0.583* 0.373** 1 1.67 0.82 Strength of HRM system 0.308* 0.440** 0.447** 1 2.22 0.73 POS 0.480** 0.310** 0.480** 0.436* 1 1.97 0.99 OCB 0.380** 0.669** 0.331** 0.437* 0.344** 1 2.34 0.99 IR 0.285* 0.348** 0.400* 0.365** 0.293** 0.358** 1 2.50 0.87

HRM: human resource management; POS: perceived organizational support; OCB: organizational citizenship behavior; IR: intentions to remain. *p < .05; **p < .01.

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The means of the clustering variables for each of the three clusters obtained are shown in Table 3. An ANOVA was performed to evaluate the quality of variable means across the clusters and thus assess the distinctiveness of each cluster. An F-test confirms that these means differ significantly across the three clusters for all clustering variables.

Specifically, in our first cluster, C1 (80 firms), the val- ues for both strength of HRM system and POS are the highest. This cluster is also characterized by being the one with the highest means for each one of the AMO practices

for the HRM system. Means obtained by our outcomes (OCB and IR) are also the highest in our population. These results support hypotheses 1.1 and 1.2.

In the second cluster, C2, composed of 50 firms, assess- ments made by HR managers demonstrate a moderate degree of Strength of the HRM system (2.35), a value that is below the mean in the Likert-type scale. The same respondents, HR managers, also consider that support given by the organization to its employees (POS) has even a lower score (2.2). According to these values, the ER model contained in this cluster can be placed above the upper limit of the ER3 model that we have called “Inefficient and Unproductive,” and it is closer to the most efficient ER1 model. The assessment made by these man- agers of the content of the HRM system (AMO practices) is closer to the average in our scale for opportunity- and motivation-enhancing practices (2.9) but higher for skill- enhancing practices (3.41). Therefore, it could be said that in this cluster, the weaknesses of ERs are not found on the side of the AMO practices (HRM content), which are close to or above the average. The problems are due to the appli- cation of the HRM system, as the value of the HRM System Strength found was below average. The perception of HR managers regarding the emergence of extra role behaviors (OCB) is moderate (2.93) but slightly higher with respect to employees’ intention to remain (2.86). These results are more optimistic in relation to our hypoth- esis 2.2, since this cluster is closer to the most efficient ER defined here. In terms of the assessment of the AMO sys- tem, this second cluster does not support hypothesis 2.1, although this requires specific comment, which we will set out in detail in the “Discussion” section.

Finally, for our third cluster, in which we collected answers from workers’ representatives, values for both strength of the HRM system (1.35) and POS (1.2) are the

Figure 2. Clusters location in theoretical framework. Clusters 1 and 2 refer to HR Managers and Cluster 3 refers to workers’ representatives from hotels sector (blue colored). Clusters 4 and 5 refer to HR Managers and Cluster 6 refers to workers’ representatives from financial sector (red colored). Variables range from 1 to 5.

Table 3. Cluster analysis and ANOVA: ER configurations.

Study 1: Hotels Study 2: financial firms

Cluster 1 (n = 80) mean

Cluster 2 (n = 50) mean

Cluster 3 (n = 30) mean

ANOVA F Cluster 4 (n = 34) mean

Cluster 5 (n = 53) mean

Cluster 6 (n = 30) mean

ANOVA F

Strength of HRM system

3.73 2.35 1.35 87.501** 3.37 1.98 1.43 13.438**

POS 3.8 2.2 1.2 114.066** 3.52 2.13 1.27 4.814* OCB 3.65 2.93 1.96 25.379** 4 1.55 0.95 20.464** IR 3.51 2.86 2.06 26.988** 4.25 1.51 0.11 4.011* Ability 3.56 3.41 2.2 29.379** 4.05 2.7 0.13 6.427* Motivation 3.56 2.9 2.03 15.649** 4.10 2.75 0.18 7.367* Opportunity 3.4 2.9 2.15 8.376** 4.11 2.81 0.06 8.689**

ANOVA: analysis of variance; HRM: human resource management; POS: perceived organizational support; OCB: organizational citizenship behavior; IR: intentions to remain; HR: human resource; ER: employment relationship. Clusters 1 and 2 refer to HR Managers. Cluster 3 refers to workers’ representatives. Clusters 4 and 5 refer to HR Managers. Cluster 6 refers to workers’ representatives. Variables range from 1 to 5. *p < .05; **p < .01.

Díaz-Fernández et al. 11

lowest. In this case, values obtained by HRM practices are also the lowest, clearly below the average in our scale. In terms of behaviors, workers’ representatives state that their unwillingness to display OCB (1.96) and their desire to remain in the organization is also at the lowest level (2.06). These results support hypotheses 2.1 and 2.2.

We were unable to test hypotheses 3 and 4, as we did not find cases fulfilling the conditions laid down for type 2 and 4 ERs in the hotel sector.

Study 2: financial firms

We replicated the statistical analysis performed in the pre- vious study in the financial sector. We performed a cluster analysis to identify similar groups in our sample from the financial services sector. We considered the 117 responses from financial organizations (87 HR managers and 30 workers’ representatives) and we obtained three different clusters (Table 3).

As in Study 1, we performed a two-step cluster analysis. We found three different clusters using strength of the HRM system and POS as classifying variables. Specifically, clusters 4 and 5 included answers from HR managers, and cluster 6 from workers’ representatives (Figure 2). Cluster 4 and cluster 5 included 34 and 53 financial firms, respec- tively. In both cases, the answers came from HR managers. The last cluster, cluster 6, includes 30 responses from employees’ representatives only. We carried out an ANOVA to identify differences in the strength of the HRM system and POS, that is, differences in terms of ERs.

The results of the ANOVA are shown in Table 3. Statistical differences of the three clusters obtained are guaranteed by the F-test values.

In the financial sector sample, cluster 4 (C4, 34 firms) is characterized by the highest values for both strength of the HRM system (3.37) and POS (3.52). This cluster could be labeled ER 1. Also, in C4 we found the highest values for each of the AMO practices, above 4 points in all the cases and individual behaviors (OCB, 4 and IR, 4.25). Hypotheses H.1.1 and H.1.2 are therefore supported.

Cluster 5, C5, includes 53 financial firms. In this case, the values obtained for strength of HRM (1.98) and POS (2.13) are below the average, so it is an ER3, although they are higher than C6. In C5, OCB (1.55) and IR (1.51) values are below the mean in the Likert-type scale, although the AMO values are closer to the mean in the Likert-type scale (3 points), but lower than those obtained in cluster 2 (hotels). Therefore, we can say that hypothesis 2.1 is not supported but—as in the case of study 1—hypothesis 2.2 is supported. This result deserves further explanation, which can be found in the “Discussion” section.

Finally, cluster 6, C6, is made up of the 30 employees’ representatives from financial firms. In cluster 6, both strength of the HRM system and POS are the lowest in Study 2, again named ER3. Furthermore, the values of all

the variables considered in this study, that is, AMO, OCB, and POS, are the lowest. Hypotheses H.2.1 and H.2.2 are therefore supported.

Discussion

This article explores how the different stakeholders in the ER, employees’/workers’ representatives and employers, perceive the content and process of HRM and the conse- quences of such ERs in terms of individual behaviors. Several issues can be highlighted from the theoretical and empirical analysis.

The first aspect that can be deemed a novel contribution of this article is that, in contrast to proposals based on the Psychological Contract that take as a reference time and performance requirements (transactional, relational, tran- sitional and balanced, see Rousseau, 1989) or even the proposals made by Tsui et al. (1997), based on induce- ments and expected contributions, we argue that there is a possibility of defining and identifying different ER models taking into account perceptions from employers and employees about the two variables proposed in this study: the Strength of the HRM system and POS. We believe that studying both aspects (“How” HRM is implemented— strength—and POS) as explanatory factors of ERs will help to improve understanding of these relationships. This article has identified four different models of ERs, taking into consideration the perceptions of HR managers and workers’ representatives, obtaining a valid methodology to study ERs within organizations.

A second contribution is related to the way in which the diverse models of ERs that we identify are different in terms of perceptions surrounding the content of the HRM system itself. It seems that to the extent that the ER is bet- ter defined in terms of the content (the “What”), that is, regarding skills, motivations, and opportunities that could be enhanced (AMO Practices), the perception of the Strength of the HRM system (the “How”) is also higher. We might consider the possibility of a certain relationship between these variables (“content” and “process”), thereby opening up the “black box” (Guest, 2004) that conceals the way in which HRM is applied in firms.

This pattern relating content and strength of the HRM system was obtained in both studies—hotels and financial services firms—although they yielded a few differences that are worthy of specific comment. It was found that the financial sector is always higher in its assessment of AMO practices than the hospitality sector, from a managerial perspective. This difference may be understood from a contextual approach as consequence of the specific char- acteristics of these sectors, such as the educational back- ground of employees or the characteristics of the specific work they perform (contingent approach). If we observe the assessments made by workers’ representatives, they consistently score lower and have a more critical attitude

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in the financial sector than in the hospitality sector. This could be explained by the higher educational profile and qualifications in financial service firms, having a more questioning attitude toward management. In all cases, unions in both sectors have a very pessimistic perception of both content (AMO practices) and process (strength). These results highlight the need to consider both approaches in the study of ERs, including new contextual variables (Martín-Alcázar et al., 2005).

It is also interesting to note that, in both studies, it was possible to identify a cluster of firms whose HR managers do not rate their HRM systems very highly, that is, below or close to the mean in the assessment scale for AMO- Enhancing practices, with some specific exceptions. Overall, the conclusion we can draw from these results is that it is possible to find different ER models within a sec- tor, each one of which is characterized by different HRM systems.

As a third contribution, we would like to highlight the association established between the ER model and employ- ees’ behaviors, both in terms of the propensity to develop extra role behaviors (OCB) and the intention to remain in the organization (IR) (Wright & Nishii, 2013). This result offers a better explanation and understanding of how employees react to different organizational decisions. From the point of view of HR managers, in cases where ERs are based on strong HRM systems and high levels of POS, managers expect high extra role behaviors and inten- tion to remain and, more importantly, when the ER changes, managerial perceptions of employees’ behaviors also change. This relationship between the model of ER and employees’ behaviors is observed in both sectors ana- lyzed in this article.

From the perspective of the union or workers’ repre- sentatives, the low scores they predict for OCB and IR are coherent with the type of ER they perceive. These results are clearly supported and congruent with theoretical frameworks such as Attribution Theory and Social Exchange Theory, from both sides, HR Managers and unions. The interpretation and assessment made by each one of the stakeholders in the ER also explain the behav- iors that they perceive. Depending on the way they under- stand the signals being sent out, by the way in which HRM is implemented (Attribution Theory) and how the organi- zation supports employees’ needs (Social Exchange Theory), employees’ responses in terms of behaviors also vary.

Finally, as mentioned above, it is interesting to note the different perceptions that give rise to the identification of the diverse models of ERs between companies within the same sector. Such differences not only exist between the perceptions of managers and workers’ representatives, as the literature highlights, but also between managers them- selves. The results obtained in both studies confirm our theoretical argument regarding the need for knowledge

about the perceptions of both sides of the ER to provide a better understanding and explanation for the reasons behind their behaviors (Liao et al., 2009; Nishii & Lepak, 2008; Wright & Nishii, 2013). This gap or disagreement is coherent with Ostroff and Bowen (2016), who stated that relationships between line managers’ reports of the prac- tices in place in their unit and employees’ reports of their experiences with the practices are relatively weak, typi- cally within a .20 correlation range.

From a practical point of view, we think that this article makes a relevant contribution as it allows us to identify both stakeholders in ERs, their main differences in percep- tion, and which practical actions can be taken to reduce their disagreements. Organizations themselves would also benefit from information about the content of their HRM system, the process followed to implement such practices, and the effects or outcomes being generated. Undoubtedly, an interesting question for both managers and employees would be to study the effects of both crises—the 2008 financial crisis and the Covid pandemic—on ERs and spe- cially regarding the loss of employee benefits and advan- tages in working conditions.

We cannot bring this article to a close without first reflecting on its limitations. The first limitation is the fact that we were unable to identify firms that apply two of the four models of ERs defined in our theoretical framework. The reason for this might be related to our second limita- tion: the sample. It would be desirable to have not only a higher response rate from firms but also a direct answer from employees. It might be possible to undertake case studies, interviewing employees, who could be members of unions or not, to identify differences in perceptions among employees themselves, between employees and workers’ representatives, and between the union repre- sentatives and management. The low level of union mem- bership among Spanish workers could cast doubt on the degree of concordance between the perceptions of work- ers’ representatives and those of employees. The compari- son between such perceptions would be interesting to analyze. We see in this a potential future strand of research, which would allow us to ascertain whether employees and managers from different departments in the organization perceive the ER differently, and the extent to which their perceptions and level of disagreement might affect and explain different outcomes such as OCB and IR. Furthermore, in a similar way to Audenaert et al. (2018), another potential area of research would be to measure the level of agreement between managers and unions, and to consider it as a moderator between ERs and POS/IR would also be interesting.

In summary, we believe that the research questions posed at the beginning of the article have been answered, contributing to new proposals to be considered in the anal- ysis of ERs: the identification of new models of ERs through the consideration of new variables, the effects of

Díaz-Fernández et al. 13

such models on employees’ behaviors, the study of the per- spectives held by the two main stakeholders in ERs, namely, employers (HR managers) and employees (work- ers’ representatives), so we could contrast perceptions from both of them, and also the existence of different ER models within the same sector.

Declaration of conflicting interests

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: Financial support for this article was provided by the Spanish Ministry of Economy and Competitiveness, R&D Plan (ECO2013-44274-P).

ORCID iDs

Mirta Díaz-Fernández https://orcid.org/0000-0002-4792-6500

Alvaro López-Cabrales https://orcid.org/0000-0001-6735-0425

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Papers related to hotel employee perceptions/Rosa-Navarro et al. 2019 - Disentangling the strength of the HRM.pdf

Disentangling the strength of the HRM system: effects on employees reactions

Dolores de la Rosa-Navarro, Mirta Díaz-Fernández and Alvaro Lopez-Cabrales

Department of Business Administration, Pablo de Olavide University, Sevilla, Spain

Abstract Purpose – A strong HRM system (encompassing the dimensions of distinctiveness, consistency and consensus) facilitates a collective interpretation of Human Resource Management (HRM) practices in a common direction, and consequently, a conjoint response by employees. The purpose of this paper is two fold: first to argue that those dimensions have a direct impact on the reaction of employees (organisational citizenship behaviour, OCB and intention to remain, IR); and second, the authors propose that these dimensions are not independent, but rather can interact in such a way that consensus impacts on the consistency of an HRM system, and consistency mediates the relationship between consensus and OCB and IR. Design/methodology/approach – The authors surveyed HR managers and employees from a sample of 102 Spanish hotels. Specifically, HR managers were asked to complete a questionnaire assessing the dimensions of HRM strength, and employees completed a different questionnaire reporting their levels of OCB and IR. The authors examined the reliability and validity of measures by means of Confirmatory Factor Analysis. Finally, structural equations models were applied to test direct effects and mediating hypotheses. Findings – As an initial finding, the authors obtained two dimensions of HRM strength: consistency and a new factor, which is a combination of distinctiveness and consensus, labelled the “Reputation” of the HRM system. A second result is that such the reputation of the HRM system positively affects OCB and IR. Third, consistency mediates in the relationships between the reputation of the HRM system and OCB and IR. Research limitations/implications – Although the authors are aware of the limitations of our paper, regarding the cross-sectional data design and the assessment of HR strength by managers, the authors believe that the results highlight the importance of HRM system strength, since it affects individual outcomes. Originality/value – One of the valuable contributions made by this paper is that the authors obtained two dimensions for HRM strength instead of the three proposed by Bowen and Ostroff (2004): consistency and reputation (as a combination of distinctiveness and consensus). The authors explain that the new dimension is related to the concept of employer branding, emphasising HRM system’s internal image, facilitating common expectations that guide employees towards the desired responses. Second, Reputation impacts Consistency, improving employees’ OCB and IR; hence, the dimensions of HRM system strength are not independent, but they are better able to interact in order to affect employee outcomes. Keywords Intention to remain, Organizational citizenship behaviour, Strength of HRM system Paper type Research paper

1. Introduction The main theoretical approaches to understanding the influence of Human Resource Management (HRM) on organisational results have focused on HRM practices as drivers of performance and competitiveness. The behavioural approach (Schuler and Jackson, 1987) argues that certain HRM practices develop employees’ skills, knowledge and motivation in such a way that their behaviours contribute to the implementation of strategy and the achievement of strategic goals. For its part, the resource-based view (Barney, 1991) relies on certain characteristics of human resources and the way in which they are managed by means of specific HRM practices to provide a source of sustainable competitive advantage (Wright et al., 1994). These research streams study the content of HRM practices. Employee Relations: The

International Journal Vol. 42 No. 2, 2020

pp. 281-299 © Emerald Publishing Limited

0142-5455 DOI 10.1108/ER-12-2018-0322

Received 13 December 2018 Revised 9 April 2019

26 June 2019 Accepted 16 August 2019

The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/0142-5455.htm

This work was supported by FEDER/Ministerio de Ciencia, Innovación y Universidades-Agencia Estatal de Investigación (ECO2017-82208-P) and Ministerio de Economia y Competitividad, Plan Nacional de IþDþ I (ECO2013-44274-P).

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the HRM system

According to Bowen and Ostroff (2004), the content of an HRM system refers to the set of practices devised for meeting strategic goals. However, this approach seems to be insufficient to answer the question regarding how HRM affects organisational performance (Paauwe, 2009; Boselie et al., 2005). In that respect, researchers have shifted the focus from HRM content onto process (Bowen and Ostroff, 2004; Nishii et al., 2008). Research has gradually moved away from an exclusive focus on HRM content and static concepts of positioning towards HRM processes and a dynamic approach (Heffernan et al., 2016). HRM process refers to “the features of an HRM system that send signals to employees that allow them to understand the desired and appropriate responses and form a collective sense of what is expected” (Bowen and Ostroff, 2004, p. 204).

As long as perceptions are shared by employees, the intended attitudes and behaviours are more likely to be achieved (Bowen and Ostroff, 2004). A strong organisational climate will facilitate a collective interpretation of HRM practices in a common direction, and consequently, a conjoint response by employees. Bowen and Ostroff (2004), on the basis of Kelley’s (1967) attribution theory, propose the features that make a strong HRM system, which are distinctiveness, consistency and consensus. The distinctiveness of an HRM system implies that it stands out in the environment, showing it to be significant, thereby drawing attention and provoking certain uniformity in employees’ reactions (Bowen and Ostroff, 2004). Consistency generally refers to coherence in the event-effect relationship, which remains steady over time regardless of people and contexts (Katou et al., 2014). Consensus refers to features that produce agreement in employees’ views of the event-effect relationship, in part because there is agreement among the message senders (Sanders et al., 2008).

In spite of the interest surrounding the concept of strength and its popularity among HRM researchers (Bednall et al., 2014; Coelho et al., 2012; Delmotte et al., 2012; Katou et al., 2014; White and Bryson, 2013), there is a research gap surrounding the way the different dimensions work together in order to achieve employee outcomes. Indeed, Ostroff and Bowen (2016), in their critical review of the research being developed about their proposal of strength, suggested that distinctiveness, consistency and consensus are not in fact independent dimensions and that they can influence each other. Therefore, this paper pursues two specific objectives: first, to study the effects of HRM strength on employee reactions in the form of organisational citizenship behaviours (OCB) and intentions to remain (IR), as a strong HRM system creates a shared attribution of meaning to HRM practices, thereby generating common expectations, and conjoint attitudes and behaviours. Second, to ascertain whether the different dimensions of HRM strength influence each other in order to trigger these expected effects. This second objective is relevant and novel because it empirically verifies the suggestion made by Ostroff and Bowen (2016) that those dimensions might be related to one other.

One distinctive feature of this paper is the perspective chosen to study such relationships. Previous research testing the strength of HRM systems has focused on employees as respondents who assess distinctiveness, consistency and consensus. The logic behind this is that it is not only important to offer certain HRM practices to employees (HRM content) but also to ensure they are similarly perceived by employees, in order to achieve the employer’s intended aims (Nishii et al., 2008). This paper adopts managerial perceptions in order to assess the strength of HRM systems. As HR managers are the key players who design HRM practices and policies, this paper focuses on their perceptions in terms of the distinctiveness of the messages they send out, consistency in the way HR practices work and the degree of consensus they generate. Although more respondents and perceptions are usually recommended to avoid the Common Method Bias, the literature has stated the validity of using just one informant, the HRmanager, in cases where very specific information is required that this person knows (Arthur and Boyles, 2007; Bou-LLusar et al., 2016). By asking HR managers, we are seeking to ascertain how the HRM system is introduced or how it is actually applied, following the typology developed by Renkema et al. (2017). It is similar to the

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approach taken byWhitener (2001), who only asked HR managers about “High Commitment” HRM practices while employees reported their commitment and perceptions of trust and organisational support.

Therefore, this paper seeks to make two specific contributions. First, it addresses the interrelationship between the dimensions of HRM system strength and extends present conceptual understanding by suggesting that some of the dimensions mediate in the explanation of OCB and IR. Second, as an empirical result, a new dimension named “Reputation of HRM system” will explain the internal relationships between distinctiveness, consistency and consensus; as such dimensions can influence each other. The theoretical proposal and empirical testing of the notion that HRM strength dimensions are combined and that they also interact in order to influence employees’ reactions is a general contribution that responds to Ostroff and Bowen (2016) call for research about how the features outlined for HRM strength might operate together, as these authors suggest, for example.

The structure of this paper is as follows. The next section is dedicated to explaining in detail the concept of HRM strength and its impact on employees’ reactions. Section 3 is concerned with how such dimensions work together and influence each other. Section 4 contains methods and results, closing with a final point that sets out the discussion and implications of the results obtained.

2. Strength of the HRM system and its effects on employees’ reactions HRM departments design practices that configure the HRM system to be implemented within organisations. The strength of the HRM system (Bowen and Ostroff, 2004) could mean that the area of HR works well, has credibility, and is valued by employees and other organisational units. In that sense it can be related to the notion of perceived organisational competence, which means that employees trust in the organisation’s ability to achieve its goals and objectives (Kim et al., 2016). Individuals who perceive that their organisations have a high level of organisational competence may feel that several of their socio-emotional needs are being met, such as the need for esteem, a sense of belonging or the need for emotional support, which feeds into employee commitment (Kim et al., 2016). Therefore, the process approach seems to have its own weight in explaining certain employee reactions, regardless of the HRM practices offered.

Although Bowen and Ostroff (2004) postulated that HRM system strength mediates HR practices and outcomes, the research reveals its direct effect on employees’ attitudes and behaviours. Different studies have found the positive impact of a strong HRM system on work satisfaction, vigour (Li et al., 2011), motivation, commitment (Katou et al., 2014; Hauff et al., 2017; Cafferkey et al., 2019) or work engagement and OCB (Katou et al., 2014).

Furthermore, the good reputation of a firm in terms of corporate social responsibility allows employees to meet their basic needs and feel satisfied (Vlachos et al., 2013). The multiple needs model of organisational justice (Cropanzano et al., 2001) suggests that employees’ reactions to social responsibility actions derive from instrumental-, relational- and morality-based needs (Rupp et al., 2006), which are related to the satisfaction of needs regarding control, a sense of belonging and the need for meaningful existence, respectively. In a similar way, a strong HRM system can help to satisfy those needs. The need for control can be satisfied, as the consistency of HR practices implies continuity and stability over time. The perception of justice enhances the quality of the social exchange relationships between employees and organisations (Rupp et al., 2006), making employees feel part of the firm and thus helping to satisfy the need for a sense of belonging. The need for meaningful existence also can be satisfied, as the HRM system takes into account the interests of the employees; its procedures and decisions are considered fair, and it has credibility and legitimacy. The foreseeable motivation and satisfaction of employees will probably lead to higher levels of OCB. At the same time, the positive image or reputation of the HRM system

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can feed into the expectations of employees, in such a way that they are ready to invest in extra-role behaviour in order to get a similar response from the firm.

Therefore, this paper proposes that each of the dimensions of the strength of the HRM system (distinctiveness, consistency and consensus) will positively impact on OCB and intention to remain, as explained below.

2.1 Effects of distinctiveness on employee reactions The first dimension, distinctiveness, refers to those features that make an HRM system stand out, drawing the attention of the employee (Bowen and Ostroff, 2004). In order to do so, situational characteristics are salient and visible to the majority of employees in their daily work activities. Visibility can be enhanced as there are a greater number and type of practices, increasing the complexity of the HRM system and its scope, allowing a greater number of employees to be exposed to those practices (Bowen and Ostroff, 2004).

However, such practices must be useful to employees, a second feature of distinctiveness. Employees can satisfy some of their needs because the HR practices are relevant, that is, they are significant not only for organisational goals, but also for individual ones.

Another characteristic of distinctiveness is understandability, in the sense that it is important not only to communicate the existence of HR practices offered to employees, but also to explain how they work (Bowen and Ostroff, 2004). Based on attribution theory and research from Kelley (1955) and Feldman (1981), if employees perceive that stimulus are unclear or ambiguous, they cannot understand how they work, transparency can help to foster the legitimacy of the HR decision-makers’ authority, as it avoids suspicion and rumours among employees (Gillespie and Dietz, 2009). Employees are more likely to conclude that the organisation has good intentions, thereby facilitating the acceptance of HR policies.

Furthermore, the legitimacy of authority implies that subordinates accept someone else as a model who sets behavioural standards (Kelman and Hamilton, 1989), and in turn, they are ready to perform according to such standards. This legitimacy will be attributed to the HRM function when it is perceived to be a high-status and high-credibility function, which depends largely on senior management support and the strategic importance given to that area (Bowen and Ostroff, 2004). Communicator credibility is a key factor in the attribution or influence processes (Rousseau, 1995).

In order to understand the influence of distinctiveness on employee reactions, the relevance dimension could be key, since it means that an organisation offers HR practices that are important for employees and help to satisfy their needs. OCB has been found to be a common reaction when individuals perceive their working conditions to be satisfying (Organ and Ryan, 1995; Dalal, 2005). According to social exchange theory and the norm of reciprocity (Gouldner, 1960), employees respond in ways that benefit the organisation and other employees. Prior to displaying citizen behaviour, employees probably perceive that the workplace processes, outcomes and interactions are fair and feel committed to the organisation (Dalal, 2005). Consequently, they will probably have the intention to remain.

The other components of distinctiveness help to explain OCB and IR as they attribute credibility to the message (legitimacy of authority) and make it easier to perceive (visibility), and be understood (understandability). However, the essential influence on OCB and IR is the relevance of what it is offered.

In sum, when HR practices are relevant for employees, they have been communicated in a way that is easy to understand (understandability), employees know what can be expected (visibility) and they attribute a legitimacy of authority to persons responsible for HR policies, they are more likely to feel that their interests and needs are taken into account, reinforcing their motivation and leading them to greater levels of commitment, IR and extra-role behaviours.

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Based on the previous arguments, the first research hypothesis posited is as follows:

H1a. Distinctiveness is positively related to OCB and the intention to remain.

2.2 Effects of consistency on employee reactions The second dimension, consistency, refers to the stability of the HRM system itself. It is composed of instrumentality, which means that there is a clear cause-effect relationship so that employees really know the consequences of their behaviours. It guarantees the existence of an adequate incentives system that rewards the desired behavioural pattern (Bowen and Ostroff, 2004). According to Vroom’s (1964) expectancy theory, individual motivation is explained by three factors: valence, instrumentality and expectancy. Thus, instrumentality together with the relevance of the HR practices could boost levels of employee motivation (Bowen and Ostroff, 2004), leading them to increase their commitment to the organisation and their extra-role behaviours as well (Lavelle et al., 2007).

Instrumentality can help to construct a predictable working environment, providing employees with a greater sense of control as they can know and understand the consequences of their behaviours. In this regard, employees have guidelines for a better orientation of their behaviours, and thus they are less likely to experience disappointments or rupture of their psychological contract, consequently decreasing their intentions to leave (Rousseau, 1995).

Consistency also refers to the coherency between what HRM practices are aiming to achieve and what they actually achieve. It is what Bowen and Ostroff (2004) called validity. This coherence regarding the behaviour of HRM actors gives them credibility, which is necessary in order influence employee behaviour. The credibility of the issuer is a prerequisite for modifying the conduct of the recipient (Rousseau, 1995).

The third component of consistency pertains to consistency between different HR practices. This concept has repeatedly been presented as strategic HRM, as it is the foundation of the configurational approach. This model highlights the synergistic effects resulting from this fit, in such a way that the practices reinforce each other producing a joint positive effect (Huselid, 1995; Delery and Doty, 1996). In fact, the literature on strategic HRM also refers to it as horizontal fit, in contrast to vertical fit, which refers to the coherence between an HRM system and other external and organisational factors (Schuler and Jackson, 1987). However, so far, research has not yielded any definitive findings regarding the best results of the consistency of HR practices. Effectively, the HPWS or ability–motivation–opportunity model (AMO) has been associated with greater levels of productivity, commitment or extra-role behaviours (Huselid, 1995; Jiang et al., 2012), along with decreased turnover and absenteeism (Batt and Valcour, 2003).

However, it cannot be affirmed definitively whether those results are explained by coherence among HR practices or by the superiority of such practices (Huselid, 1995). Studying the strength of an HRM system provides a better understanding of the particular influence of consistency on OCB and the intention to remain. This concept is studied through the process approach, in contrast to the content approach, where the congruence of HR practices is studied through configurations. In addition to the synergies derived from the conjoint action of HR practices acting in the same direction, consistency helps to set employee expectations, sending them a clear message about what is expected of them and what they can receive in exchange (Baron and Kreps, 1999). Therefore, expectations are more realistic, and there will be fewer possibilities of breaking the psychological contract, which in turn reduces employees’ intentions to leave (Robinson and Morrison, 2000). Employees perceive a more stable and predictable working environment, which can enhance the credibility of the organisation when it comes to influencing their behaviours, in terms of OCB and IR.

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According to the preceding discussion, the second research hypothesis formulated is as follows:

H1b. Consistency is positively related to OCB and the intention to remain.

2.3 Effects of consensus on employee reactions The last dimension of the strength of an HRM system is consensus. In order to promote consensus with regard to the reaction of employees, there are at least two requisites: the existence of consensus among HR decision-makers or “message senders”, and the fairness of the HRM system; both distributive and also procedural justice (Bowen and Ostroff, 2004).

There is more likely to be consensus among employees if they see that the message senders agree among themselves (Rousseau, 1995). Agreement among HR decision-makers helps to increase the legitimacy of the HRM system’s authority, as HR managers and line managers are supported by senior management. Hence, employees appreciate the coherence among the different agents, facilitating the acceptance and implementation of HRM policies (Bowen and Ostroff, 2004). Additionally, the extent to which employees perceive that the process for allocating benefits and resources (procedural justice), and the results of that distribution are fair, positively affects the capacity of the HRM system to influence employee attitudes and behaviours (Waldman and Bowen, 1998). In order to obtain procedural justice, the reasons behind any decisions made must be well explained (Özbek et al., 2016). The perception of fairness facilitates the acceptance of proposed HR practices, thus contributing to the credibility and legitimacy of the HR department.

The interest of researchers in studying organisational justice has largely focused on work-related outcomes, grounding its influence in trust (Colquitt and Rodell, 2011), organisational commitment (McFarlin and Sweeney, 1992) and OCB (Moorman, 1993). In this present study, organisational justice is analysed as part of the strength of an HRM system, but it is also expected to have an impact on OCB. Again the authors base their hypotheses on the norm of reciprocity, arguing that when managers treat employees fairly, employees respond with high levels of OCB (Organ, 1988). Thus, a positive social exchange emerges, where both parties are making a mutual investment, reinforcing the employees’ commitment and their intention to remain (Tsui et al., 1997).

Based on the previous arguments, the third hypothesis formulated is as follows:

H1c. Consensus is positively related to OCB and the intention to remain.

3. Internal relationships within the dimensions of HRM strength The meta-features of HRM system strength explained above may interrelate, but this proposition has not been empirically tested (Hewett et al., 2018). Considering the features separately allows for the possibility of interactions between them. In this regard, Sanders and Yang (2016) found that a high combination of the three features strengthened the relationship between high commitment HR practices and affective commitment.

Although such interactions may exist and would provide a promising strand of research, we have not found any research testing whether some features may be precursors to the development of others, as proposed by Ostroff and Bowen (2016). They argue that consensus among key HR decision-makers is a precursor to consensus among employees. Consensus among decision-makers and agents of the HRM system sends out a consistent message to employees, thus facilitating a similar interpretation of these practices among employees. They maintain that the lack of consensus could explain some of the inconsistent findings regarding the importance of HRM system strength and HPWS (Ostroff and Bowen, 2016).

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An HRM system comprises different agents: not only HR experts who work in the HRM department, but also senior management, who set the strategic objectives that determine HRM policies, and line managers who apply these practices (Rousseau, 1995; Graen and Uhl-Bien, 1995). Different agents at different levels within the organisation with different responsibilities are simultaneously sending messages about the employment relationship (Rousseau and Greller, 1994). Accordingly, it is hard to ensure consensus between all the agents and their respective messages. If message senders do not agree regarding the intended message, consistency will likely be hampered (Bowen and Ostroff, 2004). The managerial perceptions communicated by the HRM philosophy can mutually reinforce employees’ shared perceptions of their working climate (Kellner et al., 2016). When employees receive clear and uniform communications about HRM, this can create a strong situation and positively influence organisational performance outcomes (Bowen and Ostroff, 2004).

An important part of consistency is stability over time. HRM practices will acquire their meaning across time, and expected behaviours are more likely to be achieved if HR practices are administered consistently over time (Bowen and Ostroff, 2004). The stability of such practices over time enhances agreement among employees in relation to what is expected of them and what they expect of the organisation in return (Rousseau and Wade-Benzoni, 1994). The desired stability will be easier to achieve if there is consensus among decision-makers; otherwise different messages coming from different sources create an unpredictable working environment, where employees do not know in advance the consequences of their behaviours. A lack of consensus promotes ambiguous situations subject to individual interpretation as employees try to reduce uncertainty by interacting and consulting with one another to develop shared interpretations (Bowen and Ostroff, 2004). Therefore, consensus is especially important among senior executive managers and the HR department, as they seem to perform a key role in the dissemination of HRM philosophy (Kellner et al., 2016). The consistency between the tangible and intangible elements of the HRM architecture requires a fluid relationship between the HR department and senior management (Kellner et al., 2016).

Based on previous arguments, we propose that consensus among HR decision-makers will facilitate the consistency of the different HRM practices, as the complementarity of these practices requires the agreement of the different agents involved in the design and implementation of the HRM system. Consequently, H2 is formulated as follows:

H2. Consensus will promote the consistency of the HRM system.

However, in spite of the importance of consensus among HR decision-makers, previous research has not found any relationships between consensus and employee performance (Guest and Conway, 2011), affective commitment (Sanders et al., 2008), or work satisfaction, vigour and intentions to quit (Li et al., 2011). However, regarding consistency, Sanders et al. (2008) found that it was positively related to affective commitment, and Li et al. (2011) found that it was negatively related to intentions to quit. These results lead us to think about the possible mediating role that consistency plays between consensus and individual outcomes. The overall idea is that employees will behave in a better way in terms of OCB and IR if the consensus among HR decision-makers has been translated into consistent HRM practices. We argue that consensus among HR decision-makers will help to develop consistent and complementary HRM practices (Baron and Kreps, 1999), which in turn will foster common expectations among employees and their adequate response.

Therefore, it is assumed that consensus among HR decision-makers is a prerequisite of consistency (Ostroff and Bowen, 2016), and that the latter will fully mediate the relationship between consensus and the intended effects (Figure 1). Hence, we finally propose that:

H3. Consistency will mediate the relationship between consensus, OCB and intention to remain.

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4. Method 4.1 Population and sample The hypotheses formulated here were tested out in the hospitality sector because tourism is one of the most relevant industries in the Spanish economy. During the last financial crisis it suffered a tremendous blow, so HRmanagers are quite concerned about employees’ behaviours because of the high level of turnover within this sector. The population included 4-star Spanish hotels with more than 50 employees from the SABI database, containing 392 firms. Questionnaires were sent to each firm in the population. The HR manager and four employees per firm were selected as respondents. Finally, we received completed questionnaires (one HR manager and four employees) from 102 firms, giving a response rate of 26.02 per cent.

HR managers were chosen because they have in-depth knowledge of the HRM system implemented in their firm. Furthermore, HR managers are involved in designing the HRM system and also receive feedback about different HRM practices from employees and other managers in their firms, and they also assess employees’ behaviours at work. Hence, it was felt that HR managers would be the best respondents for questions about the strength of the HRM system as they can assess the HRM level introduced, as suggested by Renkema et al. (2017). Questions related to OCB and IR, on the other hand, were answered by the four employees from each firm.

Regarding the specific characteristics of our sample, it comprised 102 four-star Spanish hotels with more than 50 employees. In general, these hotels are successful and well- established firms, although the oldest hotel has been running for 93 years and the youngest for 3 years, giving an average “age” of 27.14 years when the data were collected. With regard to the gender of the employees that answered our questionnaire, 213 were women and 195 were men (52.28 and 47.72 per cent, respectively). All of these employees occupied non-managerial positions. These 408 employees were distributed in five different labour categories: reception and reservations, administration, cleaning and maintenance, catering and other services (spa, golf and social events organisation). Specifically, 59 employees (14.38 per cent) work in reception and reservations, 109 employees (26.79 per cent) in administration, 103 employees (25.16 per cent) in cleaning and maintenance, 109 employees (26.79 per cent) in catering and 21 employees (6.86 per cent) in other services such as spa, golf and social events organisation.

We have data from two different types of respondents from each firm: HR managers and four employees. Therefore, first of all, we determined whether the employees’ responses within each firm were similar, calculating the inter-rater agreement ratio (rwg) for OCB and IR following the procedures described by James et al. (1993). In both cases, we obtained favourable values: rwgedwards¼ 0.81 for OCB and rwg¼ 0.71 for IR. These results point to the agreement of the various respondents from the same firm and ensure the validity of aggregating the employees’ responses surveyed at the same firm. So, for each item, we used the average of the responses from the four employees from the same firm.

Consensus Consistency

IR

OCB

Distinctiveness

Figure 1. Theoretical model

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An ANOVA was performed to identify potential non-response bias. The ANOVA was carried out between respondent and non-respondent firms, considering industry membership, number of employees and revenue. The results revealed no significant differences between respondent and non-respondent firms, indicating that the data were not affected by non-response bias, as shown in Table I.

4.2 Measurement Strength of the HRM system. Following Bowen and Ostroff (2004), three dimensions of HRM strength were identified: distinctiveness, consistency and consensus. The three dimensions of HRM system strength were measured using the scale proposed by Delmotte et al. (2012), who measured it as a composite of three subscales, which included the dimensions of distinctiveness, consistency and consensus. All the items included in the questionnaire were measured using a five-point Likert scale.

Organisational citizenship behaviour (OCB). The scale proposed by Kehoe and Wright (2013) was used to measure OCB. Employees were asked to indicate, on a scale from 1 to 5, the extent to which they agreed with six items related to their OCB.

Intention to remain (IR). We used the scale proposed by Kehoe and Wright (2013) to measure IR. Employees answered four items regarding their intention to remain with the firm on a scale from 1 to 5.

Confirmatory Factor Analysis (CFA) was performed to assure the reliability and validity of all the scales considered in this study. Table II shows the results of the CFA (Goodness of fit: χ2¼ 417.7866; p¼ 0.01327; BB-NFI¼ 0.731; BB-NNFI¼ 0.939; CFI¼ 0.946; RMSEA¼ 0.037). Two factors were obtained for strength of HRM system – unlike the proposal formulated by Bowen and Ostroff (2004) – namely reputation of the HRM system (t¼ 3.10) and consistency (t¼ 3.21). Reputation of the HRM system comprised the dimensions of distinctiveness and consensus proposed by Bowen and Ostroff (2004). We have chosen the name “reputation” because the new construct includes items regarding distinctiveness sub-dimensions of visibility (e.g. “employees are regularly informed about the initiatives taken by the HR department”), legitimacy (items like “in general, the HR staff are appreciated in this organisation”) and relevance (“the HR department in this organisation has high added value”, for example). The sub-dimensions of consensus included in reputation of the HRM system are agreement and distributive justice, and comprised items such as “Senior management and HR management clearly share the same vision” and “in this organisation, rewards are clearly related to performance”, respectively. We consider that this new construct assesses the good image and credibility of the HRM system and the extent to which it is agreed.

Related to extra-role behaviour, two factors were obtained: OCB (t¼ 3.66) and IR (t¼ 3.62).

Table III shows correlations between factors as well as descriptive statistics and Cronbach’s α.

Table III shows the reliability and validity of the scales used in this study. Reliability of the scales is guaranteed. Composite reliability is higher than 0.7 in all cases. Convergent

Mean SD F Sig.

Number of employees Respondent (0) Non-respondent (1)

1,599.38 1,796.05

2,017.008 2,978.421

6.047 0.542

Sales revenues Respondent (0) Non-respondent (1)

2.0E+008 2.0E+008

184,093,973.2 174,238,074.2

1.829 0.196

Labour costs Respondent (0) Non-respondent (1)

35,494,039 36,014,511

32,748,343.301 31,526,154.948

2.540 0.111 Table I.

Analysis of non- response bias

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Reputation of HRM system Consistency OCB IR

Employees are regularly informed about the initiatives taken by the HR department

0.567

The HR staff has enough authority to get their ideas accepted 0.624 In this organisation, HRM is synonymous with excellent work 0.549 In general, the HR staff is met with much appreciation in this organisation

0.540

The HR department undertakes exactly those actions that meet our needs

0.636

The HR department in this organisation has a high added value 0.576 Many of the practices introduced by the HR department are useless (R)

0.510

HR management and line management are clearly on the same wavelength

0.674

All HR staff members in this firm mutually agree with the manner in which employees are managed

0.711

Top management and HR management clearly share the same vision

0.617

Management unanimously supports HR policy in this organisation

0.660

In this organisation, the distribution of bonuses and other rewards is perceives as fair by employees

0.482

In this organisation, employees consider promotions as fair 0.555 If employees perform well, they get the necessary recognition and rewards

0.616

In this organisation, rewards are clearly related to performance 0.522 In this organisation, the results of the yearly appraisals are generally considered as fair

0.608

The HR instruments for employee appraisal succeed in encouraging the desired behaviour

0.574

The HR practices implemented in this firm sound good in theory, but do not function in practice (R)

0.731

The appraisal procedure developed by the HR department, has in practice other effects than the intended effects (R)

0.565

There is a wide gap between intended and actual effects of HR initiatives (R)

0.688

The various HR initiatives send inconsistent signals (R) 0.603 The successive initiatives introduced by the HR department often clash badly (R)

0.542

Employees provide constructive suggestions about how their department can improve its effectiveness

0.663

For issues that may have serious consequences, employees express their opinions honestly even when others may disagree

0.689

Employees encourage others to try new and effective ways of doing their job

0.756

Employees help others who have large amounts of work 0.658 Employees willingly share their expertise with their coworkers 0.700 I plan to spend my career at this organisation 0.802 I intend to stay at this organisation for at least the next 12 months

0.756

I do not plan to look for a job outside of this company in the next 6 months

0.710

Notes: Goodness of fit: χ2¼ 417.7866; p¼ 0.01327; BB-NFI¼ 0.731; BB-NNFI¼ 0.939; CFI¼ 0.946; RMSEA¼ 0.037. All items are significant at 99 per cent

Table II. Confirmatory analysis factor (standardized solution)

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validity is assured by the average variance extracted (AVE), which in all cases is higher than 0.5 (Table IV ).

4.3 Results In order to test the proposed hypotheses, structural equations models (SEM) were used in order to analyse the goodness of fit of two different and opposite models using EQS 6.4 statistical software. It is an appropriate technique for identifying the presence of mediating role of consistency in the relationships between visibility/consensus and OCB/IR. Two different analyses were applied, simultaneously, each one corresponding to a different dependent variable, OCB vs IR.

The results show a direct and positive relationship between reputation of the HRM system and consistency (Model 2 in Tables V and VI), and between consistency and OCB and IR (Model 3 in Table V and Model 3 in Table VI). These results indicate that H1b is supported. Furthermore, as shown by Model 1 in Table V and Model 1 in Table VI, there are direct and positive relationships between reputation of the HRM system and OCB and IR, respectively. As reputation combines items from distinctiveness and consensus, H1a and H1c are partially supported.

Mean SD Reputation of HRM system Consistency OCB IR

Reputation of HRM system 3.9846 0.9644 (0.900) Consistency 4.6000 0.7635 0.496** (0.893) OCB 4.6462 0.6689 0.563** 0.462** (0.828) IR 4.0462 0.1197 0.481* 0.144*** 0.478** (0.872) Notes: Cronbach’s α appear on the diagonal. *po0.05; **po0.01; ***po0.001

Table III. Correlations and

descriptive statistics

Reputation of HRM system Consistency OCB IR Composite reliability

Reputation of HRM system 0.858 0.932 Consistency 0.246 0.729 0.856 OCB 0.317 0.213 0.731 0.886 IR 0.231 0.020 0.228 0.582 0.824 Notes: The values in the diagonal are the average variance extracted of each factor (AVE); The rest of the numbers correspond to the existing squared correlations between factors

Table IV. Discriminant validity

Independent variables Model 1 dependent

variable OCB Model 2 dependent variable consistency

Model 3 dependent variable OCB

Reputation of HRM system 0.362** 0.390** 0.303** Consistency 0.125*

Goodness of fit χ2 200.0437 200.0307 199.1097 p 0.02893 0.02897 0.02838 BB-NFI 0.746 0.746 0.748 BB-NNFI 0.930 0.930 0.930 CFI 0.940 0.940 0.940 RMSEA 0.047 0.047 0.047

Table V. Results related to OCB

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Since a new dimension was created for this study, namely “Reputation” of the HRM system, which combined distinctiveness and consensus, H2 could not be tested in the way it was theoretically suggested originally. Nevertheless, the new dimension of “reputation”was seen to have a positive and significant effect on consistency. As the new dimension mixes items from distinctiveness and consensus, H2 is partially supported.

The final tests conducted sought to ascertain whether consistency mediates in the relationships between reputation of the HRM system and OCB and IR (H3). In order to do so, the method proposed by Baron and Kenny (1986) and Judd and Kenny (1981) was used, which consists of estimating three models.

Model 1:

Y ¼ b11 Xþe1:

Model 2:

Me ¼ b21 Xþe2:

Model 3:

Y ¼ b31Xþb32Meþe3;

where Y is the dependent variable, X the independent variable and Me is the mediator variable. Furthermore, the following conditions must be met:

(1) in the second equation, β21 must be significant;

(2) in the third equation, β32 must be significant; and

(3) in the third equation, β31 must be less than (in absolute terms) β11 in the first equation.

Tables V and VI show the results for the regressions where the independent variables (OCB and IR, respectively) and the mediator variable (consistency) are considered. The pattern for different coefficients related to reputation of the HRM system, consistency, OCB and IR fulfil all the aforementioned proposed conditions (Baron and Kenny, 1986; Judd and Kenny, 1981).

Therefore, the results initially support the mediating effect of consistency in the relationships between reputation of the HRM system and OCB and IR as shown in Tables V and VI and in Figure 2. These results indicate that H3 is supported.

5. Discussion, implications and future research lines The main objectives of this paper were, first, to study how HRM process or strength (instead of content) is associated with employee outcomes and, second, to see the internal configuration

Independent variables Model 1 dependent

variable IR Model 2 dependent variable consistency

Model 3 dependent variable IR

Reputation of HRM system 0.345*** 0.390** 0.288** Consistency 0.121*

Goodness of fit χ2 240.7726 200.0307 239.9788 p 0.02897 0.02897 0.03118 BB-NFI 0.741 0.746 0.742 BB-NNFI 0.937 0.930 0.936 CFI 0.945 0.940 0.944 RMSEA 0.044 0.047 0.044

Table VI. Results related to IR

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and relationships within HRM strength itself. To this end, a survey was conducted on a sample of HR managers and employees in the hospitality sector, since these managers make major decisions regarding HR issues. In light of the results obtained, this paper makes a contribution to the theory and has practical implications that can be discussed.

In relation to the first objective, our results confirm the direct and positive effects of HRM system strength on both OCB and IR. However, only two features are identified: reputation and consistency. In any case, this research has corroborated that employees are more committed and engaged when the HRM system is strong, specifically when the HRM system has a strong reputation (it is visible, relevant, legitimate, agreed and fair) and a high level of consistency. Our results are in line with previous studies such as those of Sanders et al. (2008), Li et al. (2011), Hauff et al. (2017) and Cafferkey et al. (2019), which have revealed the direct impact of HRM system strength on individuals’ attitudes and behaviours. Hence, the few empirical studies conducted to date have shown that the features of the HRM system have value in themselves, regardless of the specific HR practices, highlighting the relevance of the HRM process approach (Hauff et al., 2017).

In relation to the second objective of the paper, that is, to test the internal effects between the dimensions of strength, we have found that a new dimension labelled “reputation of the HRM system” improves its consistency. In other words, it is not possible to talk about consistent HRM systems unless they guarantee, as a prerequisite, certain mixed characteristics of distinctiveness and consensus. This result confirms and even enriches somewhat the proposal made by Ostroff and Bowen (2016) that consensus is the necessary antecedent to develop strong HRM systems, although in this case a hybrid between distinctiveness and consensus is considered to be the antecedent. Furthermore, the fact that consistency mediates between the reputation of an HRM system and OCB seems to reinforce that suggestion. In any case, more research is needed to confirm the interrelations between the features of HRM system strength. In that regard, Hauff et al. (2017) pointed out that “the different components of strength are more interrelated than expected” (p. 725).

It is also interesting to note the failure to obtain three reliable and valid dimensions of HRM strength, such as the theoretical ones of distinctiveness, consistency and consensus. Interestingly, the measurement model used here defined a new dimension that combines items from distinctiveness and consensus. It seems that HR managers consider both dimensions to be a single factor, pertaining to the “Reputation” of the HRM system, as it combines notions of visibility, relevance, legitimacy, agreement and fairness. These dimensions are related to the concept of employer branding, which emphasises the organisation’s goal relating to managing its identity as an employer and creating an image for itself as a “great place to work” to attract potential and retain current employees

Reputation of HRM system

Consistency

IR

OCB

0.362**

0.121*

0.125*

0.390**

0.345***

Notes: *p<0.05; **p<0.01; ***p<0.001

Figure 2. Tested model

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(Ambler and Barrow, 1996). Our results are in line with these kinds of studies, where brand distinctiveness and brand prestige were found to have a positive effect on employees’ brand commitment (App and Büttgen, 2016). Along similar lines, we have found that the “reputation” of the HRM system is positively related to OCB and intention to remain.

Hence, an interesting question arises regarding the differences and similarities between the notion of employer branding and the reputation feature of the HRM system. The origin and the objectives of these concepts are different. Employer branding comes from the field of marketing and emphasises the company’s image, establishing the identity of the firm as an employer for its actual and potential employees (Edwards, 2009). Whereas the reputation of the HRM system is focused on the internal image, facilitating common expectations that guide employees towards the desired responses. Therefore, reputation, as part of the HRM system strength, seeks to achieve certain behaviours among employees, playing a central role in the translation of designed into implemented HRM practices (Bowen and Ostroff, 2004). In short, reputation is a feature of the HRM system that seeks to influence employees’ behaviour, whereas the main objective of employer branding is to create the identity of the firm as an employer, highlighting its differentiated offering regarding its competitors (Backhaus and Tikoo, 2004).

In previous studies, distinctiveness was the strongest predictor of target outcomes (Hewett et al., 2018), as found by Li et al. (2011) in relation to work satisfaction and vigour, or in the case of Sanders et al. (2008) in relation to affective commitment. Furthermore, Aksoy and Bayazit (2014) found that consensus and consistency were significant predictors of goal quality and strength but only when mediated by distinctiveness. In our case, the distinctiveness dimension merges with consensus, but our relabelling as “reputation” emphasises the image and relevance of the HRM system, as explained above, in line with the concept of employer branding, which in turn necessarily implies a certain degree of distinctiveness.

The HRM contextual approach (Farndale et al., 2017; Martín-Alcázar et al., 2005) can also be helpful in understanding this interesting but unexpected result. Following this approach, the HRM function is integrated within the macro-social framework with which it interacts, conditioning HRM strategy. Therefore, the Spanish economic context, and especially in the case of the hospitality sector that has suffered the effects of recent crises, may explain managerial concerns regarding how to enhance the legitimacy and good image of the HRM function. Consequently, the reputational dimension of the HRM system is outstanding in this particular context, although future research should explore this in more detail.

The results discussed previously also have some interesting practical implications. First, HR managers should be aware of the need to guarantee the good image and respectfulness of the HR function; something that is critical in the “post crisis” context and which is covered by the new dimension of “Reputation”. Hence, it is suggested that HRM departments should invest in reporting their practices to employees, explaining how they add value, agree with line managers or how well performance is rewarded, to cite a few examples of reputational practices. Second, our results show that investment in this “Reputation” of the HRM system will produce positive outcomes, as it leverages both IR and OCB in employees. Finally, if managers consider OCB to be an extra-role behaviour and a bonus over and above the mere IR, they must design and implement HRM systems that guarantee at the same time its consistency and reputation. In other words, consistency will motivate OCB, and such consistency will benefit from a good reputation of the HRM system. Again, it is recommended that managers do their best in explaining how intended and realised HRM practices converge, something that is critical in the case of performance appraisals.

These results present certain limitations. First, the cross-sectional data design is not the best choice for testing causality within internal dimensions of HRM system strength.

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A longitudinal data set would be preferable. Second, variables were measured by just one of the main actors involved in HRM: HR managers. Bou-LLusar et al. (2016) recognise that HR managers can be key informants because they possess the most qualified knowledge about the variables studied. Nevertheless, it would be interesting to complement and even compare their point of view by considering the perceptions of employees or workers’ representatives regarding these issues. In this regard, the work carried out by Sanders et al. (2008) is outstanding and could be used as a guideline for methodological issues. Third, it would have been useful to verify empirically whether OCB and IR help to improve hotel results ( financial ratios, customer satisfaction, etc.), since the literature suggests that employee behaviours can influence firm performance (Katou et al., 2014; Sarikwal and Gupta, 2013).

However, the limitations explained above could provide potential and promising research avenues to explore. Other future research lines could address questions regarding the need to consider new ways of managing employees. In this regard, one option would be to explore the extent to which the strength dimensions we obtained leverage the effects of HRM practices that are oriented towards sustainability or social responsibility, as these practices are concerned with the needs of employees and other stakeholders (Barrena-Martínez et al., 2019; Guerci et al., 2018). Future research might also establish links between the reputation of an HRM system and employer branding, as suggested previously. Finally, subsequent research could study other possibilities of internal relationships within the concept of strength, considering the new feature of reputation. This new feature, reputation, might moderate the relationship between consistency and OCB, as a reputational HRM system can act as a valid vehicle to reinforce consistent messages sent to employees, for example.

In summary, the findings presented here demonstrate the effects of HRM strength dimensions on employee OCB and IR. A different internal configuration of strength dimensions is obtained, suggesting interactions between them. These results make a contribution to the emerging debate surrounding HRM content vs process and how they interact in order to produce employee outcomes, a debate that is generating high expectations among researchers and practitioners.

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About the authors Dolores de la Rosa-Navarro is Assistant Professor of Business Administration in the Business Administration Department, Pablo de Olavide University (Seville). She received a PhD Degree in Business Administration from the Pablo de Olavide University in 2006. She has been Visiting Scholar at the Carlos III University (Madrid), Tilburg University (The Netherlands) and King’s College of London. Her current work focuses on research in organisational behaviour, leadership, and employment relationships. She has published in journals like British Journal of Management or European Journal of Management and Business Economics. Dolores de la Rosa-Navarro is the corresponding author and can be contacted at: mdrosnav@upo.es

Mirta Díaz-Fernández is Assistant Professor of Management in the Universidad Pablo de Olavide, Spain. Her research interests include strategic human resource management, compensation, individual competencies and intellectual capital. Her publications include The International Journal of Human Resource Management, Business Research Quarterly and Personnel Review.

Alvaro Lopez-Cabrales is Associate Professor of Human Resource Management in the Business Administration Department, Pablo de Olavide University (Seville), where he obtained his Doctorate Degree in 2003. He has been Visiting Scholar at the Texas A&M University, in the USA. His current work focuses on research in human capital, employment relationships, organisational capabilities and innovation. He is publishing his research in international journals as Human Resource Management, R&D Management, Personnel Review, British Journal of Management or The International Journal of Human Resource Management.

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