HRM Process Advantage for Firm Performance

Abstract

To date, most research focused on the possibility of a link between HRM and Organizational Performance has tendedto home in on the content of HRM policies, practices, and strategies, and explore which of them make a difference toorganizational outcomes. The presupposition in such research is that “what is done is more critical than how it isdone”.In this study, based on social context and social influence theories, the HRM-Organizational Performancerelationship has been examined from an HRM process vantage point. It was proposed that employees’ perceptions oforganizational level characteristics of the HRM process would reflect the “strength” of HRM. This strength wouldinfluence 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 ofHRM process strength was validated using Structural Equation Modeling analysis. Regression and HierarchicalLinear Modeling Analyses showed that HRM process strength influences employees’ attitudes and behaviors, theirperformance, and voluntary employee turnover.