Fr-SYM-652-7 - Combining Different Opportunity-Enhancing HR Practices: Consequences For Wellbeing And Organization Performance

Human resource management
Strategic HR
Combining different opportunity-enhancing HR practices: consequences for wellbeing and organization performance
R. De Reuver 1,*, B. Kroon 1, U. Elorza 2, D. Madinabeitia 2
1Deparment of Human Resource Studies, Tilburg University, Tilburg, Netherlands, 2Department of Industrial Management, Mondragon University, Mondragon, Spain
Main Abstract Content: Purpose
The current paper tested two competing models to explain the combined effects of different opportunity-enhancing HR practices: direct participation (team voice) and indirect participation (employee co-ownership) on employee well-being and organizational performance. The complementary model postulates that the coexistence of multiple opportunity-enhancing HR practices leads to more positive organizational outcomes. In contrast, the substitute model presumes that having direct participation next to indirect participation hinders the realization of positive organizational outcomes.
Financial performance data of 99 Spanish hypermarkets were combined with questionnaire data of 5907 employee (response rate 59%) reports on voice and satisfaction. We performed moderated mediation analyses, to examine the mediation (complementary model) and moderation (substitution model) effect of direct participation on the association between indirect participation and collective work satisfaction / organizational productivity.
Findings indicate that direct participation mediated in the indirect participation-satisfaction association (complementary model). In addition, we found a negative interaction between direct and indirect participation in relation to financial performance (substitution model).
Generalization may be limited because data were collected in one single co-operative chain of hypermarkets.
This study implies that the combination of direct and indirect participation has positive effects on employee well-being, but does not benefit financial performance. Maximizing the benefits of direct and indirect participation for organizational outcomes requires a balanced strategy.
This is the first study to examine the differential impact of multiple opportunity-enhancing HR practices on collective employee wellbeing and organizational performance at the same time.

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