Journal of Organizational Effectiveness People and Performance · 2014 · 153 citations · 18 references
ManagementHuman Resource ManagementEmployee RelationsStakeholder EngagementStrategic Human Resource ManagementStakeholder AnalysisStakeholder ManagementStakeholder TheoryProfitability DriversProfitability MeasurementStakeholder Model
The current work on organizational effectiveness adopts a multiple‑stakeholder model that considers many more stakeholders than earlier studies. The paper aims to trace how the HRM–OE relationship has evolved over the past three decades and to illustrate how firms now use HRM to improve OE, addressing challenges posed by a broader stakeholder model, while providing a systematic review from both academic and practitioner perspectives. The authors conduct a systematic review comparing past and current HRM–OE research, applying the multiple‑stakeholder framework to analyze how the relationship has changed. They find that the HRM–OE relationship differs markedly between past and current work, and that the multiple‑stakeholder model gives HR professionals greater opportunities to demonstrate their impact on OE beyond firm profitability.
Purpose – The purpose of the paper is to describe how the understanding of the relationship between human resource management (HRM) and organizational effectiveness (OE) has evolved during the past three decades and to provide examples how firms are using HRM to improve their OE today by addressing several challenges that result from a broader stakeholder model. Design/methodology/approach – This paper reviews the past and current work on the relationship between HRM and OE. Findings – This findings indicate that the relationship between HRM and OE is very different when comparing the past with the current work on the relationship between HRM and OE. A major reason for this is the current work on OE uses the multiple stakeholder model that accounts for many more stakeholders than the past work. Practical implications – Human resource (HR) professionals have the opportunity to demonstrate many ways by which HRM can influence OE, and not just solely on the basis of firm profitability. Thus the use of the multiple stakeholder model today offers the HR professional and the HR profession many more opportunities to demonstrate their importance and impact. Originality/value – A systematic review and comparison of the past and current relationship between HRM and OE using the multiple stakeholder model have not been using both the viewpoints of both academics and practitioners.
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