نظم عمل عالي الاداء والرضا في العمل 2014 Guo Ming, Liao Ganli and Chu...

2014 Pakistan Journal of Statistics 751

Pak. J. Statist.

2014 Vol. 30(5), 751-766

HIGH-PERFORMANCE WORK SYSTEMS,

ORGANIZATIONAL IDENTIFICATION AND JOB SATISFACTION:

EVIDENCE FROM CHINA

Guo Ming, Liao Ganli and Chu Fulei

School of Economics and Management, Beijing Jiaotong University

Beijing, 100044, P.R. China Corresponding author Email: [email protected]

ABSTRACT

With a growing body of strategic human resource management research, it has established an important relationship between high-performance work systems (HPWS) and employee attitudes and behaviors, underlying mechanisms that link the connection is unclear. This study investigates whether or not HPWS positively affects job satisfaction in Chinese management context and explores the role of organizational identification in relationship between HPWS and job satisfaction. The data was collected from 358 telecom employees and their managers across 12 city-level branch companies of China Mobile and China Unicom, which are the top 2 largest telecom companies in China. The results showed positive and significant correlation between HPWS and job satisfaction. The organizational identification was found to mediate the moderate the relationship between perception of the existence of HPWS and job satisfaction.

KEYWORDS

High-performance work systems; Organizational identification; Job satisfaction.

INTRODUCTION

Strategic human resource management (SHRM) scholars and practitioners have increasingly indicated HPWS positively influence organizational performance (Bae & Lawler, 2000; Delaney & Huselid, 1996; MacDuffie, 1995), but the mechanisms through which HPWS works is unclear, (Bowen & Ostroff, 2004; Delery & Shaw, 2001). Combs (2006) has especially focused on the mechanisms in service industry. Many scholars suggest that the indirect relationship and the link flowing between these two variables are mediated by the responses and reactions of employees (Takeuchi, Chen & Lepak, 2009; Wu & Chaturvedi, 2009; Chadwick & Dabu, 2009; Ramsay et al., 2000). Utilization of HPWS could influence employees attitude and behavior to achieve their goals and help the organizations to get higher organizational performance and competitive advantages. The mediating factors that link HPWS to organizational performance include organizational citizenship behavior, job satisfaction, employee empowerment, organizational commitment (Macky & Boxall, 2007; Messersmith, Patel & Lepak, 2011; Wood & Menezes, 2011). Though to some extent the mechanisms through which HPWS works are unfolded, some scholars propose that links between HPWS and employee outcomes are oversimplified (Bowen & Ostroff, 2004; Nishii & Wright, 2008).

High-Performance Work Systems, Organizational Identification 752

The positive effect of HRM depends on a set of operative premises, and we need to

understand HRM in the context of organizations and their environment. Based on

overview of many empirical research results, Jackson &Schuler (1995) stated that the

content and effectiveness of HRM were influenced by internal and external

environments. Emphasizing the importance of contextualizing in Chinese management

research, Tsui (2006) argued that scholars should consider the influences from not only

organizational environment but also history, economic, politics, culture, society, et al.

factors. The HPWS originated on American soil, and the early empirical researches were

in American management context. Though universal studies provided evidence that

HPWS positively affects the organizational performance and employees attitudes (Guthrie, 2001; Gibbs & Ashill, 2013; Hyondong, 2013), the researches in China showed

opposite conclusions. Some scholars reported that HPWS has a positive influence to

organizational performance (Sun et al., 2007; Fan & Bjrkman, 2003; Xu & Yang, 2005;

Cheng & Zhao, 2006; Zheng et al., 2006), but others argued that the positive relationship

didnt exist (Liu, Zhou &Chao, 2005; Zhang, 2006). The context-specific approach to the HPWS in China is increasingly recognized.

Job satisfaction plays an important role for job performance. Researcher found that

employees who are satisfied with their job are preferred to stay with their employers

(Bashir et al., 2011). Many researchers have reported that HPWS operates by providing

employees training to improve their knowledge and skills, opportunities to take part in

decision making process, and autonomy in work (Guest, 2002; Liao et al., 2009), which

made the employees feel satisfaction (Guest, 1999, 2004).Besides the theoretical

deduction, some empirical researches have supported there is a positive relation between

HPWS and job satisfaction(Bashir et al., 2011; Macky & Boxall, 2008; Messersmith,

Patel & Lepak, 2011). Our purpose in this study is to investigate whether or not HPWS

positively affects job satisfaction in Chinese management context. The data in this study

was collected from 358 telecom employees and their managers across 12 city-level

branch companies of China Mobile and China Unicom, which are the top 2 largest

telecom companies in China. The research results could test the applicability of HPWS in

China and enrich the empirical research of HPWS in different context. In addition, we

extend previous research findings by exploring the mechanism how HPWS affects job

satisfaction. Based on social identity theory, organizational identification affects lots of

individual level factors including job satisfaction (Gioia, Schultz & Corley, 2000; Sluss

& Ashforth, 2007). Therefore, we also examine the mediator of organizational

identification between these two variables.

LITERATURE REVIEW AND HYPOTHESIS

Measure of HPWS

HPWS, also named high-performance HR systems, high-performance HR practices,

or high-involvement work systems. Although the terminology is different, the definitions

are similar. It can been seen as a bundle of separate but correlated human resource

practices which aims to improve the capacities and abilities of employees (Takeuchi

et al., 2007). Scholars have not come to a consensus on the measure of HPWS, but most

of them agree that HPWS contains strict process of recruitment and selection, extensive

training and practices, authorization and involvement, pay designing based on

Ming, Ganli and Fulei 753

performance, and some other dimensions (Huselid, 1996; Batt, 2002; Kintana, et al.,

2006).The positive association between HPWS and organizational outcomes has been

found by some SHRM practitioners and researchers. For instance, the financial

performance of the enterprises, voluntary turnover of employees, firm productivity and

flexibility, and innovation performance (Bjrkman, 2002; Delery & Doty, 1996; Cappelli

& Neumark, 2001; Guthrie, 2001; Evans & Davis, 2005). Buthow HPWS affects

organizational outcomes is unclear. Many of recent studies focus on the mechanisms that

enable the relationship between HPWS and organizational outcomes (Guest, 2011).

In former studies, HPWS were accessed at organizational level and the information

about HPWS was mostly from the report of managers (Liao et al., 2009). The theoretical

premise was that report from managers could reflect the real HRM situation, because

managers set organizational HRM policies. But it was increasingly recognized that

employees perception of HRM is different from the real HRM practices operated by organizations (Kinnie et al., 2005; Purcell & Hutchinson, 2007; Liao et al., 2009).

Scholars began to explore the influence of HPWS on organizational outcomes in

perspective of employees perception (e.g. Kinnie et al., 2005; Chen, 2012). But employees are likely to differ in the perception of HPWS, because they are at different

positions and from different departments of organizations. So we aggregate the

perception of HPWS formed at individual level to organizational level. In addition,

because the variables of organizational identification and job satisfaction in this study are

both at individual level, aggregating perception of HPWS may mitigates the concern of

common method variance (Gerhart, 2008).

The Context: HPWS in China

By comparison with HPWS research in America and other western counties, the

researches in China showed different conclusions. Some scholars reported that HPWS

affects the organizational performance and employees attitudes. For example, Fan & Bjrkman (2003) tested the association between HRM and organization performance in

62 manufacturing foreign invested enterprises in China. The positive association was

found between HPWS and organization performance. Moreover, the extent and degree to

which organizations used HPWS was also examined. On the basis of matching data from

201 employees and 32 HR managers of 32 Chinese companies, Miao (2013) found that

HPWS evaluated by HR managers positively affected employee attitudes. Leader-

member exchange partially mediated the positive influence of HPWS on employee

attitudes. Likewise, the point of view was supported by meta-analysis (Zhang, Li & Yao,

2012) and empirical researches of Chinese textile and garment enterprises (Zhang et al.,

2011), pharmaceuticals industry (Zhang & Li, 2008), finance industry (Zhao & Zhao,

2010), and so on. Taking the opposite point of view, some scholars argued that there were

little evidences demonstrate the associations between HPWS and firms performance, as

well as employees attitudes (Zhang, 2006; Jiang & Zhao, 2004). A recent study proposed by Liu, Zhou &Chao (2005) has analyzed the 83 Chinese chain stores and the results

showed that all of HR practices of HPWS did not affect organizational profit rate, market

share, or sales growth.

HPWS and Job Satisfaction

Herzberg (1959) introduced a motivation-hygiene theory, also named two factor

theory, which proposed that job satisfaction can be caused by several certain factors, and


on the opposite, job dissatisfaction can also be caused by a set of separate factors in

organizations. As we know, the motivation needs of employees can be regarded as

achievements, successes, skills or some other individual realizations in the organizations.

Therefore, once these needs of employees are satisfied, they will feel happy. According to

AMO theory proposed by Appelbaum et al. (2010), there were three correlated ways

make HPWS contribute to the enhancement of performance, either of the employees or

the organizations (Cooke, 2001; Mackey & Boxall, 2007). These three ways are as

follows: (a) accessing and developing human capital to enhance employees knowledge and skills; (b) increasing employees motivation to work hardly and efficiently; (c) offering opportunities to employees in order to take part in the decision making

process and performance improving process. Within this framework, we could assume

that organizations gratify the employees motivation needs through utilization of HPWS, which make them satisfied. Furthermore, through elements of HPWS, it is likely that

employees will better fit the jobs due to the knowledge and skills enhancing. The fitness

will contribute to the improvement of the satisfaction and perception which makes the

employees feel more competent to the jobs (Messersmith, Patel, & Lepak, 2011). In

addition, in this study we adopt the framework of AMO theory that HPWS were

composed of three kinds of HR practices, they are ability-enhancing, motivation-

enhancing, and opportunity-enhancing practices. There is evidence that HPWS influence

organizational outcomes and employees attitudes and behaviors both individually and in its entirety.

Besides the theoretical deduction, there are evidences from empirical researches that

HPWS is positively related to job satisfaction. Sun & Zhang (2009) found that

empowerment and training opportunity in HPWS can increase employee satisfaction in

both state-owned and private enterprises. The influence effect is stronger in state-owned

than in private enterprises, and teamwork will undermine employee satisfaction in private

enterprises and have no effort in state-owned enterprises. Research work by Messersmith,

Patel, & Lepak (2011) reported that the enhanced levels of job satisfaction, as well as the

organizational commitment, psychological empowerment are related to the department

level of HPWS. Based on an analysis for the steel industry in the U.S., Berg (1999)

examined the influence of different HPWS practices on job satisfaction and demonstrated

that the relationship between these two variables mainly depended on the definitions of

the roles and duties of the jobs. Moreover, the relationship between employees and

managers was the key to balance the responsibilities of the jobs and the families.

According to the study of a rural Australian hospital, Young et al. (2010) proposed that

HPWS was notably related to job satisfaction, and social identify mediated the

association between them. Formally, we assume the following:

Hypothesis 1: Employees perceptions of HPWS will be positively associated with job satisfaction.

Hypothesis 1a: Employees perceptions of ability-enhancing practices will be positively associated with job satisfaction.

Hypothesis 1b: Employees perceptions of motivation-enhancing practices will be positively associated with job satisfaction.

Hypothesis 1c: Employees perceptions of opportunity-enhancing practices will be positively associated with job satisfaction.


HPWS and Organizational Identification The definition of organizational identification can be seen as the perceptions of organizational member, such as the sense of oneness and belonging (Ashforth & Mael, 1989). Organizational identification positively affects the employees supportive behaviors for understanding the organizational goals (Hekman et al., 2009). The more organizational identification employees have, the more they will support the organizations and feel like members of the organization. Their objects will keep consistent with the organizational values and goals, which will motive the employees and improve their job performance (Dukerich, Golden & Shortell, 2002). According to social exchange theory, individuals and organizations exchange not only physical objects but also psychological objects, such as trust, support, self-esteem et al. When individuals receive economic and emotional resources from their organization, they would be under the obligation to repay the organization. Then individuals develop identification with the organization. Through utilization of HPWS, organizations provide employees economic and socio-emotional resources. Sun et al. (2007) reported that HPWS aimed to set up an exchange association between the organization and employee in the long run. In a mutually beneficial exchange, employees will repay the organizations through attitudes and behaviors that benefit the organizations, which will enhance their organizational identification. There is also evidence from empirical researches that HPWS are positively related to organizational identification. Based on multilevel analysis of data from HR managers and 402 employees across 42 enterprises, Li & Wei (2011) found that some HPWS practices, such as incentive compensation and staff flow, influenced the organizational identification positively and significantly. Formally, we assume the following:

Hypothesis 2: Employees perceptions of HPWS will be positively associated with organizational identification.

Hypothesis 2a: Employees perceptions of ability-enhancing practices improved will be positively associated with organizational identification.

Hypothesis 2b: Employees perceptions of motivation-enhancing practices will be positively associated with organizational identification.

Hypothesis 2c: Employees perceptions of opportunity-enhancing practices will be positively associated with organizational identification.

In the view of the social identity theory, several authors proposed that lots of individual level factors, one of which is job satisfaction can be affected by organizational identification (Gioia, Schultz & Corley, 2000; Sluss & Ashforth, 2007). Some studies indicated that job satisfaction was the outcome variable of organizational identification. The evaluation dimension of career identification and team identification could enhance job satisfaction significantly, and so is the emotion dimension of school identification and occupation identification (Dick, 2004). Based on data collected from 6 dance teams in the Republic of Korea, Kwon (2010) examined the relationships among three variables of female dancers organizational identification, job satisfaction, and organizational commitment. It was tested that organizational identification affected job satisfaction and organizational commitment. Wei, Chen & Zhang (2007) indicated that employees with high organizational identification tended to consider themselves as representation of organizations, and organization benefits were their primary consideration, which was easy to create organizational citizenship behavior, cooperative attitude, and job satisfaction. Furthermore, several researches demonstrated that organizational


identification can mediate the relationship between job satisfaction and other variables. Li & Wu (2013) reported that the partly mediating role of organizational identification also existed between the core self-evaluations and job satisfaction of senior middle school teachers. Formally, we assume the following:

Hypothesis 3: The association between employees perceptions of HPWS and job satisfaction can be mediated by organizational identification.

Hypothesis 3a: The association between employees perceptions of ability-enhancing practices and job satisfaction can be mediated by organizational identification.

Hypothesis 3b: The association between employees perceptions of motivation-enhancing practices and job satisfaction can be mediated by organizational identification.

Hypothesis 3c: The association between employees perceptions of opportunity-enhancing practices and job satisfaction can be mediated by organizational identification.

METHOD

Procedure In this paper, data was collected from a sample of 358 employees and their managers from 12 city-level branch companies of China Mobile and China Unicom, which are the top 2 largest telecom companies in China. The sampling was administered by the researchers with assistance from the managers of each firm. Three questionnaires were developed: the first one is designed to describe the HPWS, the second one records the organizational identification and the third one is used to describe the job satisfaction for the telecom employees. All the questionnaires were designed in English and translated into Chinese. The Chinese version was reverse translated and pilot tested to ensure consistency. Moreover, some remedies to reduce potential common method bias were adopted. For instance, the demographic such as the age is used to separate variables in the design. In order to reduce the influence of CMB, the positive and negative words were used as well as the different scale types.

HPWS: A list of human recourse practices was developed based on the AMO (ability, motivation, opportunity) model which is proposed by Appelbaum in 2000. We assessed the abilities by exploring the degree to which perception of employee perceived the use of structured employment interviews, the extensive formal training, the long-term potential in accelerating the speed of development, and the general trait of selected job candidates. A sample question is The training procedure which is offered by organization is highly official and systematic. All these practices are assessed by eight items and in order to enhance the level of abilities, skills and capacity under the employment context. Then, we measured the motivation practices by asking employees the questions about the performance appraisal and the available bonuses on account of the individual and group performance level, the high standard of salary for the diversity scales of job accomplishment during the work, and the merit-based promotion opportunities. This category includes seven items. For example, The organization evaluates my job performance based on the objective and measurable results. At last, we used fifteen items to measure the opportunity practices by asking about the regular


information sharing communication, the implementation of formal participation processes and the fair complaint procedures, the existence of employee autonomy in job design modifications. A sample question is I have the opportunity to put forward the advices about the job. All these practices make the employees believe that they can have greater opportunities to make a difference which is an important contribution to the establishment in the organization. The categories of the answers were as follows: 1=absolutely disagree and 7=totally agree instead of simply asking whether these practices are present or not. Cronbachs and related reliability measures of factor analysis were used to test the validity of each category. All categories of practices had

satisfying Cronbachs (average =0.78).

As the literature review mentioned above, the existence of HPWS is expected to occur in the organization group level rather than the employee level, so that it could be the appropriate indicator for the construction of human resource management. Moreover, it allows us to test the consistency between the employees perception and the organization level of HPWS. Therefore, these thirty items were split into the organization group level based on the employees perception, and a shift composition model was adopted to the HRM perception method. The intra class correlation coefficients (ICCs) were calculated at the organization level for the HPWS. And the ICCs (ICC1 = .21, ICC2 = .61) for the HPWS perception index showed that the responses to the high level were demonstrated by employees aggregation.

Organizational Identification: It was measured with six-items by Mael and Ashforth (1992) which was introduced in previous studies. The six items are: (a) I feel like an individual censure when organization were criticized by the others; (b) the opinion proposed by others about my organization makes me feel interesting; (c) I usually use the vocabulary we instead of they when organization is mentioned; (d) I feel like it is my success when organization achieve the success; (e) I feel like an individual applause when organization win the applause; (f) When the organization is criticized by the media, I feel embarrassment. The answering categories of the questionnaires were range from: 1=totally disagree, 7=totally agree. The value of Cronbachs , which must satisfied >0.80, was .739 in this paper.

Job Satisfaction: We use the questionnaire which was constructed by Weiss, Dawis, England & Lofquist (1967). This instrument is designed to measure satisfaction with 20 different job aspects which were carefully refined, developed and validated. All these items are considering the independence, variety, creativity, and achievement (noneconomic factors), and satisfaction with security, company policies, pay, and working conditions (economic factors). A sample question is I am satisfied with my working condition. And the Cronbachs was 0.852 in this sample.

Control Variables: In our analysis, the position and age were considered. We controlled the employees position as a fixed effect in this paper because different positions vary in the job ability and possibility of attracting committed and motivated. We also included the age as an important control variable to fix the impact on the HPWS, organizational identification, and job satisfaction which may be showed at employee or organization levels.


Sample A total of 358 usable questionnaires were returned. There are about 54.1% of the respondents were male. About 57% of the employees were in the department of management, about 29% were in the department of professional skills, and 14% were in the

department of administrative department. Cronbachs and related reliability measures of factor analysis were used to test the validity of each category. All categories of HPWS practices (ability, motivation, and opportunity), organizational identification and job

satisfaction had satisfying Cronbachs . The statistical description on the HPWS, organizational identification and job satisfaction were showed in Table 1, respectively.

Table 1

Sample Descriptions

Scale Min Max Mean SD Alpha

Ability-enhancing practices 1.50 6.75 4.34 1.40 0.913

Motivation-enhancing practices 1.28 6.85 4.66 1.20 0.845

Opportunity-enhancing practices 2.73 6.60 4.83 0.91 0.812

Organizational identification 2.16 7.00 5.39 1.03 0.739

Job satisfaction 2.95 6.50 5.11 0.88 0.852

ANALYSIS AND RESULTS

To further analyze, Pearson correlations were calculated between the variables. Although moderate relationship existed between several variables, the multi-collinearity was insignificant. The results appear in Table 2 and show that, as predicted, significant positive correlations were found among all the dimensions of HPWS and job satisfaction. On the other hand, positive association was also emerged between HPWS and organizational identification. Examination of the correlations reveals that the more implement of HPWS in the organization, the higher satisfaction to employee will have.

The hypothesis 1 and hypothesis 2 were tested by the correlation analysis. The correlation coefficients between the HPWS and organizational identification are 0.454, 0.509 and 0.564 for ability, motivation and opportunity practices, respectively. In the same way, the correlation coefficients between HPWS and job satisfaction are 0.619, 0.695 and 0.784 for these three dimensions, respectively. All the significant level reached 99% in our analysis. All the significant level reached 99% in our analysis. The Hypothesis 1, 1a, 1b, 1c, 2, 2a, 2b and 2c were supported.

Table 2

Pearson Correlation Analysis

1 2 3 4 5

1. Ability-enhancing practices 1

2. Motivation-enhancing practices 0.668** 1

3. Opportunity-enhancing practices 0.759** 0.792** 1

4. Organizational identification 0.454** 0.509** 0.564** 1

5. Job satisfaction 0.619** 0.695** 0.784** 0.560** 1

*p


A traditional three step method which used to explore the mediating variable, namely

the organizational identification, was adopted in the relationship between HPWS and job

satisfaction for the telecom employees. This method is proposed by Baron and Kenny in

1986 which is conventionally applied in organization psychology to explore the influence

of mediating role. According to the method, we needed to test that HPWS leads to job

satisfaction; that organizational identification leads to job satisfaction; and that when

HPWS and job satisfaction are included, and the organizational identification was

controlled, HPWS loses their importance, that is, organizational identification can be seen

as the mediator between these two variables. To examine the effects of the mediator

about the three components of HPWS, we repeated the analysis with the AMO three

dimensions.

Based on the method, we examine the causal relationship between the HPWS and job

satisfaction, as well as the organizational identification. As can be seen from table 3, we

found that the variance explained by HPWS was 63.0% (p


the regression, the coefficient (p


mediated the association in opportunity- enhancing practices, but did not mediate in

motivation-enhancing practices. The mediating role of organizational identification was

showed in Figure 1. It was showed variables of employees attitude are not independent, and interaction among them existed.

Fig. 1: The Mediating Role of Organizational Identification

Limitations

The positive association between utilization of HPWS and employees attitudes was tested in this study. But in the area of HPWS researches, employees attitudes are just factors that link utilization of HPWS to employees performance, then to organizational outcomes. Practitioners focus on enhancing organizational outcomes through utilization

of HPWS. Further research should examine the influence of employees attitudes on individual performance and organizational outcomes in Chinese management context,

and then explore the whole influencing chain from utilization of HPWS to organizational

outcomes. This study chose job satisfaction and organizational identification as variables

to explain the employees attitudes. Besides these two variables, there are some other important attitude factors, such as organizational commitment, organizational citizenship

behaviors, which should be considered in future researches. The data of this study was

collected from a sample of employees from China Mobile and China Unicom, which are the top 2 largest telecom companies in China. There are perfect HRM systems and

advanced HRM conceptions at both of the companies, which may be one of the

underlying reasons why HPWS works. Future researches should consider the quality of

HRM as control variable.

CONCLUSION

In the sum, our results demonstrate the utilization of HPWS positively affected

employees organizational identification in Chinese management context, as well as job satisfaction, while organizational identification mediated the association between

utilization of HPWS and job satisfaction. This study tested the applicability of HPWS in

China, and enriched the research on the mechanism how HPWS worked. Furthermore,

this study suggested the importance of utilization of HPWS at Chinese enterprises. In

order to improve the employees positive attitudes to enhance individual performance, the enterprises should act on the utilization of HPWS.

Organization

Level

Employee

Level

Ability-

enhancing

Practices

Opportunity-

enhancing

Practices

Motivation-

enhancing

Practices

Organization

Identification Job

Satisfaction


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