HRM Process Advantage for Firm Performance

Abstract

To date, most research focused on the possibility of a link between HRM and Organizational Performance has tended to home in on the content of HRM policies, practices, and strategies, and explore which of them make a difference to organizational outcomes. The presupposition in such research is that " what is done is more critical than how it is done " . In this study, based on social context and social influence theories, the HRM-Organizational Performance relationship has been examined from an HRM process vantage point. It was proposed that employees' perceptions of organizational level characteristics of the HRM process would reflect the " strength " of HRM. This strength would influence the formation of an organizational HRM climate for empowerment, commitment and citizenship. Further, HRM process strength would influence employee performance and voluntary employee turnover. The construct of HRM process strength was validated using Structural Equation Modeling analysis. Regression and Hierarchical Linear Modeling Analyses showed that HRM process strength influences employees' attitudes and behaviors, their performance, and voluntary employee turnover.