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      • Human Resources and Organizational Behaviour
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      • HARVEST
      • Edwards School of Business
      • Human Resources and Organizational Behaviour
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      The Effects of Strategic HR System Differentiation on Firm Performance and Employee Outcomes

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      Date
      2018-09-04
      Author
      Schmidt, Joseph
      Pohler, Dionne
      Willness, Chelsea
      Publisher
      Human Resource Management
      Type
      Article
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      Abstract
      The purpose of this research was to understand the extent to which firms apply different human resource management systems to different occupations within the same organization (HR differentiation), and how this influences both firm and employee outcomes. We conducted two studies pertaining to these questions. The first study was based on data collected from managers and the results showed that firms differentiate their HR investments based on the strategic value of occupations, which was further associated with the human capital of those occupations; differentiation in human capital was also associated with firm performance. The second study was based on data obtained from non-management employees. The findings of this study indicated that employees who were recipients of less HR system investment had lower fairness perceptions, which were further associated with turnover intentions and organizational citizenship behavior. Although the evidence from these studies suggests that firms may realize benefits from HR differentiation, managers should carefully consider how to balance the effects of differentiation on firm performance and employee well-being before implementing such systems.
      Citation
      Schmidt, J. A., Pohler, D., & Willness, C. R. (2018). Strategic HR system differentiation between jobs: The effects on firm performance and employee outcomes. Human Resource Management, 57(1), 65-81. https://doi.org/10.1002/hrm.21836
      URI
      http://hdl.handle.net/10388/9040
      DOI
      10.1002/hrm.21836
      Subject
      human resource management
      high performance work systems
      human capital
      turnover
      fairness perceptions
      organizational citizenship behavior
      Description
      This is the pre-peer reviewed version of the following article: Schmidt, J. A., Pohler, D., & Willness, C. R. (2018). Strategic HR system differentiation between jobs: The effects on firm performance and employee outcomes. Human Resource Management, 57(1), 65-81, which has been published in final form at https://doi.org/10.1002/hrm.21836. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
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