This section will present a summary of the variables discussed in the review of related literature. HRM practices. HRM practices are organized approach of managing people in its most effective and efficient way to improve performance on firms and address the concerns of employees (Stone, 1998). It contributes to organizational success through intervention that enables the business to develop performance and properly utilize its employees (Fombrum, Tichy, & Devanna, 1984; Guest, 2002;).
The consequences of HRM practices are organizational commitment (Davidson, 1998; Kinicki et al., 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). Job satisfaction. Job satisfaction is the overall evaluation of an employee’s job (Locke, 1976; Steijn, 2002). The antecedents of job satisfaction are compensation (Bassett, 1994; Testa, 1999), opportunity for advancement (Schneider et al. , 1992; Ting, 1997), psychological climate (Smith, 1992, as cited by Testa, 1999), and leadership style (Howell & Frost, 1989; Testa, 1999).
The consequences of job satisfaction are OCBs (Bateman & Organ, 1983;Organ, 1988; Smith et al. ,1983), turnover (Evans & Irvine, 1995; Slattery, 2005; Smith & Speight, 2006) and performance (Brayfield and Corckett, 1995; Garrido et al. , 2005). Organizational Trust. Organizational trust is a social phenomenon (Blau, 1964; Luhamann, 1988; Sztompka, 1999; Zand, 1972) and is based on the expectation that another individual will act benevolently towards one (Meyer et al. ,1995). The theory related to organizational trust is social exchange (Blau, 1964).
The antecedents of organizational trust are psychological contract (Costa 2001;Robinson, 1996), leadership style (Mankin & Perry, 2004;Robbins 2005; Zeffane & Connel, 2003) and organizational communication (O’Reilly & Robert, 1974; Gardner & Moynihan, 2005; Tsai & Ghoshal, 1998) and the types organizational trust are deterrence-based, knowledge-based, and identification-based (Kramer & Tyler, 1996). Organizational citizenship behaviors. OCBs are defined as behaviors of individuals doing jobs and tasks that are beyond their formal requirements (Organ, 1988).
The theories related to OCBs are social exchange (Blau, 1964), and norm of reciprocity (Gouldner, 1960). The types of OCBs are OCB-O or organizational citizenship behavior, which is intended for the organization and OCB-I or organizational citizenship behavior, which is intended for individuals (Williams & Anderson, 1991) and the antecedents of OCBs are procedural justice (Alotaibi, 2001 (Organ, 1988; Moorman et al. , 1993), organizational commitment (Alotaibi, 2001; Meyer & Allen, 1997; Moorman et al. , 1993), and job satisfaction (Alotaibi, 2001; Moorman et al., 1993; Tang 1998). Empirical Studies.
Previous empirical studies examined HRM in relation to job satisfaction (Bradley et al. , 2004; Garrido et al. , 2005), organizational commitment (Ogilvie, 1986), turnover, productivity, and corporate financial performance (Huselid, 1995), perceived procedural justice, and organizational commitment (Chang, 2005). Furthermore, sequential tree analysis conducted by Guest et al (1994) found support for the conceptualization of HRM as bundled programs in relation to employee outcomes.
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