Session Summary

Session Number:541
Session ID:S372
Session Title:Impact of Human Resources on Organizational Performance
Short Title:HR's Impact on Org Performance
Session Type:Division Paper
Hotel:Hyatt West
Floor:3
Room:Field
Time:Monday, August 09, 1999 12:20 PM - 2:10 PM

Sponsors

HR  (Lynn Shore)mgtlms@langate.gsu.edu (404) 651-3038 

General People

Chair Cohen, Debra J. George Washington U. dcohen@gwu.edu (202) 994-7055 
Discussant Marler, Janet H. Cornell U. jhm15@cornell.edu (607)-272-4510 
Discussant Whitener, Ellen M. U. of Virginia emw8r@virginia.edu (804)-924-7091 

Submissions

Human Resource Management Practices and Voluntary Turnover: Theoretical and Empirical Integration 
 Menna, Ty  U. of Arkansas, Fayetteville tmenna@comp.uark.edu (501) 575-7237 
 Delery, John E. U. of Arkansas, Fayetteville jdelery@comp.uark.edu (501) 575-6230 
 Gupta, Nina  U. of Arkansas, Fayetteville ngupta@comp.uark.edu (501)-575-6233 
 Faught, Kent S. U. of Arkansas, Fayetteville kfaught@comp.uark.edu (501) 575-7237 
  Macro-level predictors of voluntary turnover rates of an organization are identified from the literature. Following the human capital paradigm, employer inducements and employer expectations are considered critical in determining quit rates. Inducements are operationalized as pay, job security, employee participation, information-sharing, training, and procedural justice, and expectations are operationalized as performance- based pay. Following psychological and economic research, alternative job opportunities are also viewed as critical in predicting voluntary turnover. This variable is operationalized as local unemployment rates. Despite promising results when considered separately, human capital and available job opportunities studies rarely integrate these perspectives. We investigate the main and interactive effects of inducements, expectations, and alternative opportunities in a sample of 92 plants manufacturing concrete pipe and products. Data were obtained from the plant manager of each facility, and were supplemented through information available on the World Wide Web. Results show that pay and job security have strong main effects on quit rates, that performance-based pay is not related to this outcome, and that alternative job opportunities also has a strong effect with respect to quit rates. Only one inducement - procedural justice - interacted with alternative job opportunities in the prediction of voluntary turnover. These results are discussed in terms of their relevance for explicating strategic human resource management in general and turnover dynamics in particular.
 Keywords: turnover; strategic HRM; organization-level analysis
Designing a HR System: The roles of HR specialists and senior managers 
 Mc Mackin, John F. Dublin City University Business School john.a.mcmackin@aib.ie (01) 230 1692 
 Monks, Kathy  Dublin City University Business School Kathy.Monks@dcu.ie (01) 704 5397 
 The importance of research showing the impact of HRM on firm performance is now widely recognised. However, remarkably little is known about how this relationship operates, and this dearth of understanding poses a serious threat to the credibility of research on the topic. This paper reports the results of a study which looks at one element of this relationship by investigating how HR practices emerge and why they may or may not form part of a cohesive ‘HR system’. The qualitative research reported here was conducted in the wholesale banking arm of a major international financial institution and included in-depth interviews with senior line management as well as HR managers. Our analysis suggests that there are manifold layers to the concept of ‘practice’, and that the HR practices in use in this organisation were the result of a complex series of negotiations and interpretation. We consider the implications of these findings for both research and practice.
 Keywords: HR practitioners; HR system; line managers
Drug testing programs and their impact on workplace accidents 
 Lockwood, Frank S. Tallahassee Community College fslockwood@netally.com 850-922-8154 
 Klaas, Brian S. U. of South Carolina klaasb@darla.badm.sc.edu (803) 777-4901 
 Logan, John E. U. of South Carolina loganj@darla.badm.sc.edu 803-777-5973 
 Sandberg, William R. U. of South Carolina sandberg@darla.badm.sc.edu 803-777-5980 
 Using a time-series design, this study examines the impact of introducing drug-testing programs on workplace accidents. Using data from three seperate hotels, we examined the impact associated with pre-employment testing programs and the impact associated with programs that included both pre-employment and random testing. The results of the interrupted time-series analysis suggest that the introduction of pre-employment testing did not affect the trend line for workplace accidents. However, the introduction of a program including both pre-employment and random testing was associated with a significant reduction in workplace accidents resulting from a downward shift in the trend line for accidents. The implications for the design of drug-free workplace programs are discussed as are the implications for future research.
 Keywords: drug; testing; accidents
Relational Principal-Agent Contracts, Employment Risk, and Firm Survival 
 Gomez-Mejia, Luis R. Arizona State U., Main Luis.Gomez-Mejia@asu.edu (602)-9658221 
 Nuñez-Nickel, Manuel  Universidad de Jaen mnunez@ujaen.es (34)-953-212-611 
 Gutierrez, Isabel  U. Carlos III isagut@eco.uc3m.es (34)-91-624-9627 
 We examine how relational contracts in an agency relationship affect the sensitivity of executive´s length of service to firm performance. We also examine the extent to which executive terminations enhance or hinder organizational survival. Using a sample of 276 Spanish newspapers during a 27 years period (1966-1993), our findings show that length of service of executives operating under a relational contract (those with family bonds to owners) is less responsive to observed performance results than that of their counterparts without such ties. The former also remains on their post longer as the firm's probability of death increases. CEO successions exert a positive effect on newspaper survival suggesting that agent entrenchment under a relational contract may be prejudicial to the principal. These findings have important implications for agency theory since relational contracts are shown to have a negative impact on agents' accountability for performance outcomes and this accountability (as reflected in managerial succession) improves organizational survival.
 Keywords: Agency theory; performance; entrenchment