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Strategic HRM and organisational performance: does turnover intention matter?

Strategic HRM and organisational performance: does turnover intention matter? Applying the job-demand resources model and the psychological contract theory, this paper aims to examine the mediating influence of employee turnover intentions (ETI) on the relationship between strategic human resource management (SHRM) and perceived organisational performance (POP).Design/methodology/approachWith a two-phase data-collection method, 200 complete responses were collected through an online questionnaire survey. This study applied a structural equation modelling to examine the multivariate associations and provided comprehensive outcomes for the proposed hypothesised model.FindingsThis study suggests that SHRM has direct significant effects on both ETI and POP; partial mediational effect on POP via ETI; and ETI has negative effect on POP.Practical implicationsThis paper suggests that organisations aiming higher POP should encourage SHRM and improve their strategic approaches of HRM. The implications of the study results can help organisations to recognise the adverse effects of ETI and effective SHRM outcomes.Originality/valueDespite the significant relationship between HRM and organisational performance, limited empirical research has been conducted on the mediational influence of ETI. This paper examines the unique meditational role of ETI on the relationship between SHRM and POP, which has not been utterly observed from employee perspective. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Organizational Analysis Emerald Publishing

Strategic HRM and organisational performance: does turnover intention matter?

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1934-8835
DOI
10.1108/ijoa-09-2019-1877
Publisher site
See Article on Publisher Site

Abstract

Applying the job-demand resources model and the psychological contract theory, this paper aims to examine the mediating influence of employee turnover intentions (ETI) on the relationship between strategic human resource management (SHRM) and perceived organisational performance (POP).Design/methodology/approachWith a two-phase data-collection method, 200 complete responses were collected through an online questionnaire survey. This study applied a structural equation modelling to examine the multivariate associations and provided comprehensive outcomes for the proposed hypothesised model.FindingsThis study suggests that SHRM has direct significant effects on both ETI and POP; partial mediational effect on POP via ETI; and ETI has negative effect on POP.Practical implicationsThis paper suggests that organisations aiming higher POP should encourage SHRM and improve their strategic approaches of HRM. The implications of the study results can help organisations to recognise the adverse effects of ETI and effective SHRM outcomes.Originality/valueDespite the significant relationship between HRM and organisational performance, limited empirical research has been conducted on the mediational influence of ETI. This paper examines the unique meditational role of ETI on the relationship between SHRM and POP, which has not been utterly observed from employee perspective.

Journal

International Journal of Organizational AnalysisEmerald Publishing

Published: May 7, 2021

Keywords: Mediation; Strategic human resource management; Employee turnover intentions; Perceived organisational performance

References