In changing business environments searching for new Human Resource Management System(HRMS) to make human resources true strategic asset is no longer new phenomenon.Nevertheless. there are few empirical studies with systematic theoretical framework tha...
In changing business environments searching for new Human Resource Management System(HRMS) to make human resources true strategic asset is no longer new phenomenon.Nevertheless. there are few empirical studies with systematic theoretical framework that reveal how HRMS contribute to increase organizational performance. This study examines three sub-dimensions of HRMS such as motivation. skill formation and opportunity for participation and its effect on turnover and sales volume using Workplace Panel Survey by Korean Labor Institute (2003). Empirical model incorporating impact of dynamic business environments on commitment oriented HRM policies. a relationship between these policies and three sub-dimensions of HRMS and impact of these sub-dimensions of HRMS on organizational performance was developed and tested. Structural equation modeling which is not traditional analysis method was used in analyzing hypotheses considering debates regarding methodological rigorousness in current researches in the field. The findings are as follows.Dynamic business environments have significant impact on adoption for commitment oriented HRM policies. Commitment oriented HRM policies have significant inf1uence the implementation of motivation. skill formation and opportunity for participation HRM practices that are indeed a concrete enforcement of these policies. The degree of internalization of three sub-dimensions of HRMS has positive impact on two performance variables. but the degree of inf1uence is not same. Skill formation has significant inf1uence to reduce turnover. but motivation and opportunity for participation have marginal impact on this variable. On the other hand. skillformation and motivation HRM practices have significant positive impact on sales volume. while the impact of this performance indicator is not important in terms of opportunity for participation HRM practices. Finally. the low turnover increase marginally sales volume . The implications and limits of this study as well as the directions for future studies were mentioned.