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Causal relationship between HRM policies and organisational performance: Evidence from the Greek manufacturing sector

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  • Katou, Anastasia A.
  • Budhwar, Pawan S.

Abstract

Summary Blending insights from the contingency theory, the resource-based view, and the AMO theory, the purpose of this paper is to investigate the HRM-performance causal relationship in the Greek context. The empirical research is based on a sample of 178 organisations operating in the Greek manufacturing sector. Using structural equation modelling the results of the study revealed that the ability to perform (resourcing and development), motivation to perform (compensation and incentives), and opportunity to perform (involvement and job design) HRM policy domains are moderated by business strategies (cost, quality, innovation), and additionally, the motivation to perform is further moderated by managerial style and organisational culture. Further, the results indicate that the impact of HRM policies on organisational performance is fully mediated by employee skills, attitudes, and behaviour. The paper concludes that although the motivation to perform HRM policy domain causes organisational performance, through employee attitudes, it may be supported that organisational performance positively moderates the effectiveness of this HRM policy domain, raising thus the question of reverse causality.

Suggested Citation

  • Katou, Anastasia A. & Budhwar, Pawan S., 2010. "Causal relationship between HRM policies and organisational performance: Evidence from the Greek manufacturing sector," European Management Journal, Elsevier, vol. 28(1), pages 25-39, February.
    • Handle: RePEc:eee:eurman:v:28:y:2010:i:1:p:25-39
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    Cited by:

    1. Della Torre, Edoardo, 2019. "Collective voice mechanisms, HRM practices and organizational performance in Italian manufacturing firms," European Management Journal, Elsevier, vol. 37(3), pages 398-410.
    2. Kennedy A. M. Gichira & Prof. Isaac M. Nkari & Dr. Catherine K. Kaimenyi, 2023. "Green Human Resource Management Practices and Performance: Testing the Moderating Role of Firm Size Using Evidence from Firms Listed on the Nairobi Securities Exchange, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 292-301, November.
    3. Paul Kivinda Muisyo & Su Qin & Thu Hau Ho, 2021. "The role of green HRM in driving a firm's green competitive advantage: the mediating role of green organizational identity," SN Business & Economics, Springer, vol. 1(11), pages 1-19, November.
    4. Nwankwo Cosmas Anayochukwu & Kanyangale Macdonald Isaac, 2019. "Market Orientation and Survival of Small and Medium Enterprises in Nigeria," Foundations of Management, Sciendo, vol. 11(1), pages 291-304, January.
    5. Ramaisa Aqdas & Nik Ab Halim Nik Abdullah, 2019. "High Performance Work System and Export Performance," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 7(2), pages :245-256, June.
    6. Aftab Tariq Dar & Mohsin Bashir & Faheem Ghazanfar & Muhammad Abrar, 2014. "Mediating Role of Employee Motivation in Relationship to Post-Selection HRM Practices and Organizational Performance," International Review of Management and Marketing, Econjournals, vol. 4(3), pages 224-238.
    7. Hamzah Al-Mawali & Tri-Dung Lam, 2016. "Customer Accounting and Environmental Uncertainty: Sequential Explanatory Study," International Review of Management and Marketing, Econjournals, vol. 6(3), pages 532-543.
    8. Slavich, Barbara & Cappetta, Rossella & Giangreco, Antonio, 2014. "Exploring the link between human resource practices and turnover in multi-brand companies: The role of brand units’ images," European Management Journal, Elsevier, vol. 32(2), pages 177-189.
    9. Rajwinder Singh & H. S. Sandhu & B. A. Metri & Rajinder Kaur, 2010. "Relating Organised Retail Supply Chain Management Practices, Competitive Advantage and Organisational Performance," Vision, , vol. 14(3), pages 173-190, July.
    10. Mercedes Úbeda‐García & Bartolome Marco‐Lajara & Patrocinio C. Zaragoza‐Sáez & Encarnación Manresa‐Marhuenda & Esther Poveda‐Pareja, 2022. "Green ambidexterity and environmental performance: The role of green human resources," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(1), pages 32-45, January.
    11. Stirpe, Luigi & Zárraga-Oberty, Celia, 2017. "Are High-Performance Work Systems always a valuable retention tool? The roles of workforce feminization and flexible work arrangements," European Management Journal, Elsevier, vol. 35(1), pages 128-136.
    12. Njoroge Paul Thumbi & Bula Hannah & Wanyoike Rosemarie, 2021. "Moderating Effect of Organizational Culture on the Relationship between Organizational Learning and Employees’ Performance in Classified Hospitality Firms in Kenya," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(12), pages 1-51, July.
    13. Sulaiman Olusegun Atiku & Ziska Fields, 2016. "The Relationship between Entrepreneurial Culture and Sustainable Competitive Advantage in the Banking Sector," Journal of Economics and Behavioral Studies, AMH International, vol. 8(2), pages 26-39.
    14. Escribá-Carda, Naiara & Balbastre-Benavent, Francisco & Teresa Canet-Giner, M., 2017. "Employees' perceptions of high-performance work systems and innovative behaviour: The role of exploratory learning," European Management Journal, Elsevier, vol. 35(2), pages 273-281.
    15. Sulaiman Olusegun Atiku & Ziska Fields & Ethel Abe, 2017. "Cultural Values and Human Resource Outcomes in the Nigerian Banking Industry," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 67(2), pages 26-46, April-Jun.
    16. Rahul Raj & Kailash B.L. Srivastava, 2013. "The Mediating Role of Organizational Learning on the Relationship among Organizational Culture, HRM Practices and Innovativeness," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 38(3), pages 201-223, August.
    17. BUCATA George & ROTARIU Irina, 2016. "The Importance Of Human Resources Department In Private Companies," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 68(1), pages 21-31, June.
    18. Usama Najam & Sadia Ishaque & Saadia Irshad & Qurat-ul-ain Salik & Maria Shams Khakwani & Malka Liaquat, 2020. "A Link Between Human Resource Management Practices and Customer Satisfaction: A Moderated Mediation Model," SAGE Open, , vol. 10(4), pages 21582440209, November.
    19. Mihail, Dimitrios M. & Kloutsiniotis, Panagiotis V., 2016. "The effects of high-performance work systems on hospital employees' work-related well-being: Evidence from Greece," European Management Journal, Elsevier, vol. 34(4), pages 424-438.
    20. Italo Cesidio Fantozzi & Luca Martuscelli & Sebastiano Di Luozzo & Massimiliano M. Schiraldi, 2024. "Soft Skills, Attitudes, and Personality Traits: How Does the Human Factor Matter? A Systematic Review and Taxonomy Proposal through ProKnow-C Methodology," Businesses, MDPI, vol. 4(2), pages 1-21, May.
    21. Shakeel Sarwar, Jawad Iqbal, 2020. "Framework Development of High Performance Work Systems (HPWSs) and Faculty Productivity: A Qualitative Approach," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 7(1), pages 1-13, March.

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