Organisational Citizenship Behaviour
This study intends to determine about the relationship of HRM practises on employee behaviours, particularly job performance, organisational citizenship behaviour, and intention to quit among employees in the UK marketing industry. To answer the main problem, the following sub-problems are drawn: 1. What is the perception of marketing professionals on HRM practises? 2. What is the level of: a. employees’ turnover intention b. employees’ job performance
c. employees’ organisational citizenship behaviour 3. Is there a significant relationship between perception of HRM practises and the following: a. turnover intention b. job performance c. organisational citizenship behaviour At . 05 level of significance, the following hypotheses were tested: 1. There is a significant relationship between HRM practises to the following: a. turnover intention. b. job performance. c. organisational citizenship behaviour.
HRM practise is an important topic in the field of human resource since it increases the level of motivation, working habits, skills, and abilities of employees (Delaney & Huselid, 1996). With good implementation of various HRM practises, organisations could retain talented employees (Pare et al. , 2001). These could also serve as a communication tool between the employer and the employee since it sends messages that the employee could use to make sense and define the essence of their work (Bowen & Ostroff, 2004).
In addition, the existence of HRM practises has positive effects since it delivers a message to employees that the company is devoted to the welfare of the employees, and in developing management that will benefit both the company and its employees. Further, employees are likely to perceive the HRM practises as effective with the use of communication through information sharing, communicating with supervisors, promotes employee’s understanding of the purposes and expectations of the system, along with increased chances to participate in the decision-making process, and reduce employee’s misinterpreting current practises (Chang, 2005).
By examining HRM practises, organisations give a clear view on how to design systems that would encourage their employees to exert more effort towards the achievement of company goals. Thus, HRM practises portray an essential role in boosting firm performance and develop competitive advantage (Becker & Huselid, 1998; Delery & Doty, 1996). When employees perceive HRM practises effective, they will evaluate the practises in a more positive way (Kossek & Block, 2000 as cited by Chang, 2005).
In addition, HRM practises facilitate positive employee outcomes and attitudes (Edgar & Geare, 2005). Bundles of human resource management practises on organisation performance are a significant subject matter on human resource management since these practises reinforce and produce synergy that can be a source of the company’s competitive advantage (Bowen & Ostroff, 2004; Guest, Conway & Dewe, 2004; Huselid, 1995). It was described as constructive synergistic results, where collectively is greater than the sum of its parts (Conway & Dewe, 2004).
In accordance with resource based theory proposed by Barney (1991), proper combination of practises can be a source of competitive advantage (Bowen & Ostroff, 2004; Guest, Conway & Dewe, 2004; Huselid, 1995). Further, the complicatedness of human resource value formation procedure create human resource management basis of competitive advantage that is valuable, rare, imitable, and non-substitutable qualities of employees’ talents and skills (Bowen & Ostroff, 2004; Huselid, 1995). These four fundamental requirements should be met and aligned with different strategies in order to acquire a unique source of competitive advantage.
The first criterion of sustainable competitive advantage is valuable capabilities, it is a capability that allows the firm to exploit opportunities or counteract pressure in its external environment. The second criterion is rare capability; it is capability that few of the competitors possess. The third criterion is imitable capability, it is capability that other organisation cannot easily replicate or imitate. For example, the trust and loyalty of employees to their employer and to the organisation, interpersonal relationship, etc.
(Hitt, Ireland, & Hoskisson, 1995). The last criterion is nonsubstitutable, it is a “capability that has no strategic equivalent” (Hitt, Ireland, & Hoskisson, 1995; p. 87). MacDuffie (1995) acquires that “it is the combination of practises in a bundle, rather than the individual practises that shapes the pattern of interactions between and among managers and employees…” (Guest, Conway & Dewe, 2004: p. 81). Furthermore, if two or more bundles of HRM practises are strategically equal, they can be independently used to apply similar strategies.
For instance, performance management system that observe and assess the performance of individual and work groups, if strongly aligned with the company’s compensation system and other forms of incentives could induce the motivational level of highly skilled employees. In accordance to Macduffie’s studies, the term HRM bundle is equal to HRM system, a unique rational combination of practises made approximately an organisational reason. Macduffie (1995) also stresses the significance of the combination human resource management practises rather than individual practises (Huselid, 1995; Guest, Conway & Dewe, 2004).
The literature will focus on internal career opportunity, training, performance appraisal, employment security, employee participation, job description, and compensation. “Implicit in the notion of a ‘ bundle’ is the idea that practises within bundles are interrelated and internally consistent, and that ‘more is better’ with respect to the impact on performance, because of the overlapping and mutually reinforcing effect of multiple practises” (Guest, Conway & Dewe, 2004: p.
81). According to Macduffie (1995), disinclination to recognize the logic of a multiplicative approach which states that the lack of single practise will conclude in a score of zero. In addition, HRM practises as a bundle may be compelling when it is maintained to be interdependent and internally consistent since there practises provide equally strengthen conditions that boost employee motivation and skill acquisition (Chang 2005).