Fr-SYM-652-2 - Organizational Performance, Employee Well-Being And Differential Effects Of HRM Subsystems: Mutual Gains Or Conflicting Outcomes?

Human resource management
Strategic HR
Organizational performance, employee well-being and differential effects of HRM subsystems: Mutual gains or conflicting outcomes?
C. Ogbonnaya 1,*, J. Messersmith 2
1Norwich Business School, University of East Anglia, Norwhich, United Kingdom, 2College of Business Administration, University of Nebraska–Lincoln, Lincoln, United States
Main Abstract Content: Purpose
Based on the ability-motivation-opportunity (AMO) model, human resource management (HRM) practices can be categorized into three subsystems – ability-, motivation- and opportunity-enhancing practices – each of which may have differential effects on outcomes. We investigate differential effects of these HRM subsystems on employee well-being and organizational performance. Our expectations about the nature of these effects are based on: (1) the mutual gains perspective, according to which HRM practices promote organizational performance through their positive influence on employee well-being; and (2) the conflicting outcomes perspective, which stipulates that the performance gains of HRM practices usually occur through an intensification of the work process.
We use multilevel data from the 2012 Finnish Practices of Working Life survey and examine hypothesized relationships by multilevel analysis in the Mplus software program.
Preliminary results show subsystems of HRM practices have varied effects on employee well-being and organizational performance. The effects of motivation-enhancing practices are consistent with the mutual gains perspective, whereas opportunity-enhancing practices corroborate the conflicting outcomes perspective.
Research/Practical Implications
This study highlights trade-offs among employee well-being and organizational performance and identifies best sets of HRM practices for high-quality jobs.
There has been a common assumption in organization research that HRM practices operate as a coherent system directed towards improving organizational performance. Recently, however, scholars have challenged this assumption arguing that subsets of HRM systems exist and account for varying levels of variance in outcomes. We systematically explore these differential effects and enhance our knowledge of how distinctive approaches to HRM might be beneficial for an organization.


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