HR practices produces
The alignment of HR practices produces interconnected and complimentary functions and eventually forming synergy that can contribute to increase productivity and corporate financial performance (Huselid, 1995). HRM practices, when bundled, contribute to overall firm performance through motivating employees to adopt desired attitudes and behaviors (Bowen & Ostroff, 2004). Chang (2005) argues that employees perceived HR practice as a special and specific practice rather than in separate forms.
Furthermore, individual’s overall attitudes towards each HRM practices can be characterized by an outline of the idea held about each HR practices (Fishbein, 1963). Consequences of HRM Practices HRM practices have a tangible and various intangible organizational consequences. Prior researches have found support for the role of HRM practices in predicting organizational commitment (Davidson, 1998; Kinicki, Carson & Bohlander, 1992; Ogilvie, 1986), job satisfaction (Bradley et al. , 2004; Hoon, 2000; Yeung & Berman, 1997), and procedural justice (Edgar & Geare, 2005; Greenberg, 1990; Kurland & Egan, 1999; Wooten & Cobb, 1999).
Organizational commitment. Organizational commitment is the identification and involvement of employees to an organization where they adhere to its goals and values, exert effort on its behalf and maintain a desire for organization membership (Mowday, Steers & Porter, 1979). Previous studies have shown that HRM practices are positively related to organizational commitment (Ogilvie, 1986; Davidson, 1998). For example, Barlett (2001) found that training influences employee organizational commitment.
Training involvement, access to training programs, and training support from managers and colleagues lead to higher affective organizational commitment. This is because employees perceive that the training provided by the organization can only be efficiently used to the organization. Applying these knowledge, skills and abilities to other organizations will not guarantee desirable outcomes. This will lead the employees to be committed to the organization. Procedural justice. Procedural justice is the fairness of methods and procedures by which decisions are made in the organization (Moorman, 1991, as cited by Tang et al.
, 2006). HRM practices and procedural justice are significantly related. (Dineen, Noe, & Wang. , 2004. ). For instance, Edrogan, Kraimer, and Liden (2001) found that perceived validity and knowledge of the performance criteria in appraisal systems creates procedural justice. According to Folger and Cropanzano (1998), process appraisal systems where employees are aware of the purpose and criteria for appraisal, given the chance to provide inputs during appraisal, and performance assessments are made based on objective information contributed to positive perceptions of procedural justice.
Furthermore, two way communications between the appraiser and the appraisee’s willingness to discuss how ratings were made can influence the perception of fairness. (Folger & Konovsky,1989;Korsgaard & Robertson, 1995). Job satisfaction. Job satisfaction is a gratifying feeling that has resulted from the value of a person’s work (Locke, 1976; Steijn, 2002). Previous studies have shown that HRM practices are positively related to job satisfaction (Bradley et al. , 2004). For example, employees who work in organizations that offer training to develop skills are more likely to report that they are satisfied.
Employees are more satisfied when they perceive that organization provides them full support (Bradley et al. , 2004). Furthermore, HRM practices that could help employees adjust and find a good fit with the firm also contributes to job satisfaction (Stevens, Oddou, Furuya, Norihito, Bird & Mendenhall, 2006). For example, firms that provides job descriptions that are specific makes the employees adapt easily to their tasks. Job Satisfaction Job satisfaction is a pleasurable emotional state resulting from the valuation of his or her work (Locke, 1976; Steijn, 2002).
Even though job satisfaction is a highly personal experience, there are a number of facets that seem to contribute the most to feelings of job satisfaction. Steijn (2002) stated that mentally challenging work, adequate compensation pay, career opportunity, the ready availability of promotions, people that are friendly, considerate, or good-natured superiors contribute to job satisfaction (Johns & Saks, 2000). For instance, the ready availability of promotions is positively related to job satisfaction. The promotion given enhances the perception of the employees that they are valued enough by the organization (Garrido, Perez, & Anton, 2005).
Antecedents of Job Satisfaction Previous studies have shown that compensation (Bassett, 1994; Locke, 1983 as cited by Testa, 1999), opportunity for advancement (Schneider, 1994; Ting, 1997), psychological climate (Smith, 1992 as cited by Testa, 1999), and leadership style (Howell & Frost, 1989; Testa, 1999) are antecedents of job satisfaction. Compensation. The total monetary value an employee receives. Prior study has shown that compensation is related to job satisfaction (Bassett, 1994; Testa, 1999). An example of which is when performance-related pay is in place, satisfaction is higher.
Employees perceived that certain levels of performance are equal to specific amounts of compensation that satisfies them (Bradley et al. , 2004). Opportunity. The total gathering of economic, sociological, psychological, educational, physical, and chance factors that combine to shape one’s career (Jackson, 1990). Past research has shown that opportunities for advancement are significantly related to job satisfaction (Ting, 1997). For example, opportunities fulfill employees’ expectations of promotion in their work life (Dessler, 2000). It opens the possibility for career growth which makes them satisfied (Ting, 1997).
Psychological climate. An individual’s interpretation of the environment in a way that is psychologically meaningful (Zhdanova, 2005). Recent research on psychological climate supports the notion that satisfaction with organizational vision may affect overall job satisfaction (Ellickson, 2002; Testa, 1999;). For example, an organization that offers working conditions that employee’s value would lead to higher job satisfaction. The employee’s and organization’s values should be aligned for the employee to have a positive perception towards his/her working environment which results to job satisfaction (James ; James, 1992; Testa, 1999).
Leadership style. Leadership style refers to the influence exerted by a superior to the individual/group toward the achievement of goals (Robbins, 2005). Hinkin and Tracey (1994) found that transformational leadership has an impact on job satisfaction. Charismatic leaders get their effects by clearly stating an inspiring goal which clarifies a mission for followers and communicates values that have significance for them. Furthermore, individuals working under a charismatic leader had higher job satisfaction. (Howell ; Frost, 1989; Testa, 1999).