The Effects of Strategic HR System Differentiation on Firm Performance and Employee Outcomes
Date
2018-09-04
Authors
Schmidt, Joseph
Pohler, Dionne
Willness, Chelsea
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Human Resource Management
ORCID
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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.
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.
Keywords
human resource management, high performance work systems, human capital, turnover, fairness perceptions, organizational citizenship behavior
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
Degree
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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
Part Of
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DOI
10.1002/hrm.21836