Tendencies such as the increasing spread of market globalization, new technological developments, the reduction of product life cycles and aggressive competition, are generating high levels of environmental changes and uncertainty for organizations of...
Tendencies such as the increasing spread of market globalization, new technological developments, the reduction of product life cycles and aggressive competition, are generating high levels of environmental changes and uncertainty for organizations of all types. these circumstances require rapid responses through adaptation of organizational attitudes and capabilities, which lead to innovative management approaches and organizational methods.
Human resource management researchers have struggled to elaborate the underlying mechanism explaining how human resource systems relate to organizational performance after universalistic perspectives were supported by a majority of studies investigating the positive relationship between high performance human resource management system and firm performance.
In this environments, managers require a new type and level of contribution from employee ability. In order to successfully compete under dynamic conditions, employee’s performance of a fixed set of prescribed tasks is no longer considered adequate. Instead, competitive advantage comes from employees who are engaged in broad open-ended and interdependent roles. From an individual perspective, human resource flexibility is a key success factor in current competitive environments.
In this study, high performance management system is defined as the bundle of human resource practices, which elements constructed selective staffing, extensive training, result-oriented appraisal, and incentive rewards. Construct elements of human resource flexibility are employee’s skill flexibility, behavior flexibility, relation flexibility.
The specific objectives of this study can be summarized as follows:
First, to definition the concept of high performance human resource management system and its underlying dimensions.
Second, to definition the concept of human resource flexibility and its underlying dimensions.
Third, to examine the effects of high performance human resource management and human resource flexibility on firm performance.
Lastly, to examine the mediating effects of the high performance human resource management system and human resource flexibility on the process of influencing to firm performance.
To fill the void, hypotheses in this study predicted human resource flexibility that would mediate the relationship between high performance human resource management system and firm performance. The research model among the variables in this study was as follows:
These theoretical models were tested with a sample of 138 firms in Korea. The analysis of data was undertaken by using AMOS.
The Summary of the verification results is follows:
First, most of high performance human resource management system and human resource flexibility had positive effects on human resource performance
Second First, most of high performance human resource management system and human resource flexibility had positive effects on firm’s financial performance
Third, human resource flexibility had mediated the relationship between high performance human resource management system and firm performance
The results of the present research may be demonstrated that organizations or managers could achieve a high level of management practices that lead to firm performance by enabling human resource to be flexible through high performance human resource management system. Using a certain set of human resource practices known to elicit high performance will be a competitive strategy for employer and employees.