Does Technical or Strategic HRM Provide a Better Explanation of Organization Performance?
Affiliation(s)
Department of Human Resource, Far Eastern Memorial Hospital, Taiwan. Department of Business Administration, National Chengchi University, Taipei, Taiwan.
Department of Human Resource, Far Eastern Memorial Hospital, Taiwan. Department of Business Administration, National Chengchi University, Taipei, Taiwan.
ABSTRACT
This study is to examine the ability of technical HRM versus strategic HRM in predicting organizational performance in the health care industry. A postal survey was distributed to the HR managers of all the hospitals in Taiwan, with a response rate of 56%. Hierarchical regression analyses were based on data from the 277 responding hospitals. From the result, we found that technical HRM is more important in explaining perceived organizational performance, and strategic HRM is better at predicting human capital accumulation. Technical HRM does not moderate the relationship between strategic HRM and perceived organizational performance, but it does moderate HR strategy and human capital accumulation.
KEYWORDS
Human Resource Management, Technical HRM, Strategic HRM, Organizational Performance, Human Capital
Human Resource Management, Technical HRM, Strategic HRM, Organizational Performance, Human Capital
Cite this paper
Yang, C. and Lin, C. (2014) Does Technical or Strategic HRM Provide a Better Explanation of Organization Performance?. iBusiness, 6, 52-62. doi: 10.4236/ib.2014.62007.
Yang, C. and Lin, C. (2014) Does Technical or Strategic HRM Provide a Better Explanation of Organization Performance?. iBusiness, 6, 52-62. doi: 10.4236/ib.2014.62007.
References
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[1] Hitt, M.A., Bierman, L., Shimizu, K. and Kochhar, R. (2001) Direct and Moderating Effects of Human Capital on Strategy and Performance in Professional Service Firms: A Resource-Based Perspective. Academy of Management Journal, 44, 13-28.
http://dx.doi.org/10.2307/3069334 [2] Roos, G., Fernstrom, L. and Pike, S. (2004) Human Resource Management and Business Performance Measurement. Measuring Business Excellence, 8, 28-37.
http://dx.doi.org/10.1108/13683040410524711 [3] Schuler, R.S. (1992) Strategic Human Resource Management: Linking People with the Needs of Business. Organizational Dynamics, 21, 18-32.
http://dx.doi.org/10.1016/0090-2616(92)90083-Y [4] Wright, P.M. and McMahan, G.C. (1992) Theoretical Perspectives for Strategic Human Resource Management. Journal of Management, 18, 295-320.
http://dx.doi.org/10.1177/014920639201800205 [5] Huselid, M.A., Jackson, S.E. and Schuler, R.S. (1997) Technical and Strategic Human Resource Management Effectiveness as Determinants of Organizational Performance. Academy of Management Journal, 40, 171-188.
http://dx.doi.org/10.2307/257025 [6] Youndt, M.A., Snell, S.A., Dean, J.W. and Lepak, D.P. (1996) Human Resource Management, Manufacturing Strategy, and Firm Performance. Academy of Management Journal, 39, 836-866.
http://dx.doi.org/10.2307/256714 [7] Schuler, R.S. and Jackson, S.E. (2005) A Quarter-Century Review of Human Resource Management in the US: The Growth in Importance of the International Perspective. Management Revue, 16, 1-25. [8] Becker, B.A. and Huselid, M.A. (1998) High Performance Work Systems and Firm Performance: A Synthesis of Research and Managerial Applications. Research in Personnel and Human Resources Management, 16, 53-101. [9] Collins, C.J. and Clark, K.D. (2003) Strategic Human Resource Practices, Top Management Team Social Networks, and Firm Performance: The Role of Human Resource Practices in Creating Organizational Competitive Advantage. Academy of Management Journal, 46, 740-751.
http://dx.doi.org/10.2307/30040665 [10] Chan, L.L., Shaffer, M.A. and Snape, E. (2004) In Search of Sustained Competitive Advantage: The Impact of Organizational Culture, Competitive Strategy and Human Resource Management Practices on Firm Performance. International Journal of Human Resource Management, 15, 17-35.
http://dx.doi.org/10.1080/0958519032000157320 [11] Teece, D.J., Pisano, G. and Shuen, A. (1997) Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18, 509-533.
http://dx.doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z [12] Grant, R. (1996) Prospering in Dynamically Competitive Environments: Organizational Capability as Knowledge Integration. Organization Science, 7, 375-88.
http://dx.doi.org/10.1287/orsc.7.4.375 [13] Barney, J.B. (1991) Firm Resources and Sustained Competitive Advantage. Journal of Management, 17, 99-120.
http://dx.doi.org/10.1177/014920639101700108 [14] Lepak, D.P. and Snell, S.A. (1999) The Human Resource Architecture: Toward a Theory of Human Capital Allocation and Development. Academy of Management Review, 24, 31-48. [15] Delery, J.E. and Doty, D.H. (1996) Modes of Theorizing in Strategic Human Resource Management: Test of Universalistic, Contingency, and Configurational Performance Predictions. Academy of Management Journal, 39, 802-835.
http://dx.doi.org/10.2307/256713 [16] Youndt, M.A. and Snell, S.A. (2004) Human Resource Configurations, Intellectual Capital, and Organizational Performance. Journal of Managerial Issues, 16, 337-360. [17] Sheehan, C. (2005) A Model for HRM Strategic Integration. Personnel Review, 34, 192-209.
http://dx.doi.org/10.1108/00483480510579420 [18] Bhattacharya, M., Gibson, D.E. and Doty, D.H. (2005) The Effects of Flexibility in Employee Skills, Employee Behaviors, and Human Resource Practices on Firm Performance. Journal of Management, 31, 622-641.
http://dx.doi.org/10.1177/0149206304272347 [19] Minbaeva, D. (2005) HRM Practices and MNC Knowledge Transfer. Personnel Review, 34, 125-144.
http://dx.doi.org/10.1108/00483480510571914 [20] Bontis, N. (1998) Intellectual Capital: An Exploratory Study that Develops Measures and Models. Management Decision, 36, 63-76.
http://dx.doi.org/10.1108/00251749810204142 [21] Davis, P. (2006) Beyond Human Resource Management in Co-Operatives. Cross Cultural Management, 13, 69-95.
http://dx.doi.org/10.1108/13527600610643493 [22] Roos, J., Roos, G., Dragonetti, N.C. and Edvinsson, L. (1997) Intellectual Capital: Navigating in the New Business Landscape. Basingtoke, Macmillan. [23] Bontis, N. and Fitz-enz, J. (2002) Intellectual Capital ROI: A Causal Map of Human Capital Antecedents and Con sequents. Journal of Intellectual Capital, 3, 223-247.
http://dx.doi.org/10.1108/13527600610643493 [24] Rutherford, M.W., Buller, P.F. and McMullen, P.R. (2003) Human Resource Management Problems over the Life Cycle of Small to Medium-Sized Firms. Human Resource Management, 42, 321-341.
http://dx.doi.org/10.1002/hrm.10093 [25] Snell, S.A. and Dean, J.W. (1992) Integrated Manufacturing and Human Resource Management: A Human Capital Perspective. Academy of Management Journal, 35, 467-504.
http://dx.doi.org/10.2307/256484 [26] Terpstra, D.E. and Honoree, A.L. (2003) The Relative Importance of External, Internal, Individual and Procedural Equity to Pay Satisfaction. Compensation and Benefits Review, 35, 67-80. http://dx.doi.org/10.1177/0886368703259005 [27] Rondeau, K.V. and Wagar, T.H. (2001) Impact of Human Resource Management Practices on Nursing Home Performance. Health Services Management Research, 14, 192-202.
http://dx.doi.org/10.1258/0951484011912690 [28] Huselid, M.A. (1995) The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance. Academy of Management Journal, 38, 635-672.
http://dx.doi.org/10.2307/256741 [29] Bae, J. and Lawler J.J. (2000) Organizational and HRM Strategies in Korea: Impact on Firm Performance in an Emerging Economy. Academy of Management Journal, 43, 502-517.
http://dx.doi.org/10.2307/1556407 [30] Koch, M. and McGrath, R. (1996) Improving Labor Productivity: Human Resource Management Policies Do Matter. Strategic Management Journal, 17, 335-354.
http://dx.doi.org/10.1002/(SICI)1097-0266(199605)17:5<335::AID-SMJ814>3.0.CO;2-R [31] Morath, J. (2003) Changing the Healthcare Culture: The Consumer as Part of the System and Care Implement Strategies Built around Improving the Quality of Care and with an Evidence-Based Perspective of the Patient at the Center. Frontiers of Health Services Management, 19, 17-28. [32] Scott, C.M. (2003) The Impact of the Consumer on Healthcare Delivery. Frontiers of Health Services Management, 19, 41-44. [33] Herzlinger, R.E. (2002) Let’s Put Consumers in Charge of Health Care. Harvard Business Review, 80, 44-55.