HRM System Impact on Employee Trust
HRM System Impact on Employee Trust
[Link]/[Link]
MRR
36,7 Justice, trust and employee
reactions: an empirical
examination of the HRM system
674
Anastasia A. Katou
Department of Marketing and Operations Management,
University of Macedonia, Thessaloniki, Greece
Abstract
Purpose – The purpose of this study is to investigate the impact of an integrated HRM system
(content, process and climate) on employee reactions (motivation, commitment, work engagement, and
organizational citizenship behaviour (OCB)), through the mediating role of organizational justice
(distributive, procedural and interactional) and organizational trust (integrity, competence and
dependability), which has not been fully studied in the past.
Design/methodology/approach – The study is based on a national sample of 133 organizations
from the public and private sectors in Greece and on data obtained from 1,061 employees. The
statistical method employed is structural equation modelling.
Findings – The findings of the study suggest that the HRM process has a higher impact on employee
reactions than HRM content. Additionally, the findings support the idea that procedural and
distributive justice are related more to trust dependability and integrity, and that procedural justice is
a better predictor of employee reactions than distributive justice.
Research limitations/implications – The study does not allow for dynamic causal inferences
because the data was collected using a questionnaire at a single point in time. Furthermore, the
findings of the study may not generalize across borders, because the study was applied in the Greek
context, which has different labour relations with respect to other countries.
Practical implications – The study has clear implications for both managers and decision makers,
because it suggests that employees are more committed and satisfied when the HRM system is more
consistent and distinctive, more rewarding and provides opportunities for training.
Originality/value – The theoretical significance of the study is important, because it suggests that
both the content and the process of HR practices, as perceived by employees, strongly influence
employees’ reactions, such as motivation, commitment, work engagement and organizational
citizenship behaviour OCB.
Keywords HRM content, HRM process, HRM climate, Justice, Trust, Employee reactions, Greece,
Human resource management
Paper type Research paper
1. Introduction
An HRM system usually consists of three parts: content, process and climate (Bowen
and Ostroff, 2004). HRM content refers to the individual HR policies and practices that
make up an HRM system (Boselie et al., 2005). HRM process refers to the method by
which HR policies and practices are communicated to employees (Li et al., 2011). HRM
climate refers to how HR policies and practices are experienced by employees
Management Research Review (Kinnie et al., 2005). HRM climate is influenced by both HRM content and process (Bowen
Vol. 36 No. 7, 2013
pp. 674-699 and Ostroff, 2004).
q Emerald Group Publishing Limited In investigating the relationship between HRM systems and employee reactions
2040-8269
DOI 10.1108/MRR-07-2012-0160 early studies concentrated on the content – reactions relationship (Boselie et al., 2005).
Later studies considered that HRM climate, or HR policies and practices as Justice and
experienced, mediate the causal relationship between content and reactions (Wright employee
and Nishii, 2004). Recent studies suggest that HRM climate mediates the causal
relationship between process and reactions (Li et al., 2011). However, Bowen and reactions
Ostroff (2004) proposed that HRM content and process must be integrated effectively in
order to investigate the HRM system – employee reactions relationship. This is the
first objective of the present paper. In other words, this study examines the existence 675
and the strength of the influence of both the content and the process of the HRM
system on employee reactions, such as employee motivation, commitment, work
engagement and organizational citizen behaviour (OCB).
Considering that the HR policies and practices regulate the relationships between
employers and employees, the content and process of an HRM system determines how HR
policies and practices are experienced by employees (Kinnie et al., 2005). Constructive
shared perceptions about HR policies and practices across employees, or a strong HRM
climate, are positively related to organizational justice, which in turn builds trust in the
organization (Zhang and Agarwal, 2009; Rhoades and Eisenberger, 2002). However,
although research links justice, or the fairness of the HRM system, to a variety of employee
attitudes, few studies have examined the relationship between organizational justice
and employee reactions through organizational trust (DeConinck, 2010). This is the second
objective of the present paper. In other words, this study examines the existence and the
strength of the influence of various dimensions of organizational justice and
organizational trust on employee reactions.
Some studies demonstrate that distributive justice (fairness of outcomes employees
receive) does not significantly affect trust in the organization (Konovsky and Pugh,
1994). Other studies show that both distributive justice and procedural justice
(the fairness of the procedures by which decisions are made) are related to trust in the
organization (Alexander and Ruderman, 1987; Kumar et al., 1995; Tyler and Lind, 1992).
In particular, procedural justice seems to be a better predictor of employee reactions
(Folger and Konovsky, 1989), but the effects of distributive and procedural justice on
organizational trust give mixed results (Wong et al., 2006).
Summarizing, the purpose of this paper is two-fold. The first purpose is to investigate
the HRM system – employee reactions relationship by integrating into the HRM system,
the content, process and climate dimensions of HR policies and practices. The second
purpose is to investigate whether organizational justice and trust mediate the
relationship between the HRM system and employee reactions. This will advance our
understanding of the HRM-employee reactions relationship.
3. Method
3.1 Sample
680 Data for this research was collected in October and November 2011 using a
questionnaire survey, which was distributed to the employees of public and private
organizations in the manufacturing, services and trade sectors covering the whole of
Greece. The questionnaires were administered by 100 individuals pursing management
degrees at a Greek business school, who helped to collect data from their organizations
and also from their contact organizations. The survey instrument was distributed to
400 organizations with more than 20 employees. The questionnaires were completed
with help from the people who administered them, after the latter had attended a seminar
for training purposes. Following Gerhart et al. (2000) who suggest that the reliability of
HR measures will be increased by using five to ten respondents per firm, the samplers
were asked to concentrate on eight respondents from each organization; two at senior
management level (one from the HRM/Personnel Department and one from the Finance
Department if possible), two at middle management level (including line managers) and
four at other level of employment. 3,200 questionnaires were distributed altogether.
1,061 usable questionnaires were returned from the employees in 133 organizations,
a response rate of 33.25 percent at the organization level, and 33.16 percent at the
employee level. Table I shows the demographic characteristics of the respondents.
3.2 Measures
Table II summarizes the measuring instruments with respect to constructs used in the
study, the authors who initially developed the instruments, the subscales used and the
items used in each subscale. For all items five-point scales were used.
3.2.1 HRM content. The construct of HRM Content (i.e. HR practices) comprised of
four subscales: resourcing, development, reward and relations (Armstrong, 1996). The
items for each subscale were measured on a scale ranging from 1 – low use to 5 – high
use. Example items included, “how would you rate the level of use of the performance
appraisal policy in your organization?” and “how would you rate the level of use of the
involvement policy in your organization?”
3.2.2 HRM process. The construct of HRM process (i.e. HR practice features)
comprised of three subscales: distinctiveness, consistency and consensus (Bowen and
Ostroff, 2004). Each subscale included a number of sub-subscales as shown in Table II.
For example, distinctiveness comprised of four sub-subscales: visibility, intelligibility,
legitimacy and relevance. In developing the items in each sub-subscale we followed
Delmotte et al. (2007). The items for each sub-subscale were measured on a Likert scale
ranging from 1 – totally disagree to 5 – totally agree. Examples of the items included
“HR practices are known to everybody in this company” (visibility) and “the HR
department in this organization has a high added value” (relevance).
3.2.3 HRM climate. The construct of HRM climate (i.e. HR practices as experienced)
was organized into four subscales: resourcing, development, reward and relations
(Armstrong, 1996). In developing the items in each subscale we followed Kinnie et al. (2005).
The items for each subscale were measured on a scale ranging from 1 – very little to
Justice and
Number Percentage
employee
Sector reactions
Manufacturing 297 28.0
Services 437 41.2
Trade 327 30.8
Ownership 681
Public 198 18.7
Private 863 81.3
Size (in number of employees)
20-100 565 53.3
101-200 296 27.9
200 þ 200 18.9
Mean size (^ standard deviation) 113.62 (^105.14)
Sex
Male 630 59.4
Female 431 40.6
Position
Senior manager 133 12.5
Middle manager 249 23.5
Other employee 679 64.0
Age (in years)
-25 110 10.4
26-35 339 32.0
36-45 343 32.7
46 þ 269 25.4
Mean age (^ standard deviation) 38.08 (^9.87)
Seniority (in years)
1-5 378 35.6
6-10 270 25.4
11-15 175 16.5
16 þ 238 22.4
Mean seniority (^ standard deviation) 10.39 (^7.96) Table I.
Sample demographic
Note: n ¼ 1,061 measures of respondents
5 – very much. Example items included, “overall, how satisfied do you feel with your
current career opportunities?” and “how satisfied are you with your pay compared with the
pay of the other people at your work place?”
3.2.4 Organizational justice. The construct of organizational justice (i.e. fairness of
the HR system) consisted of three subscales: distributive justice, procedural justice and
interactional justice (Niehoff and Moorman, 1993). The items for each subscale were
measured on a Likert scale ranging from 1 – totally disagree to 5 – totally agree.
Examples of the items included “employees consider promotions to be fair in this
organization” (distributive justice), “all job decisions are applied consistently across all
affected employees” (procedural justice), and “the general manager offers adequate
justification for decisions made about my job” (interactional justice).
3.2.5 Organizational trust. The construct of organizational trust was composed of
three subscales: integrity, competence and dependability (Paine, 2003). The items
for each subscale were measured on a Likert scale ranging from 1 – totally disagree to
5 – totally agree. Examples of the items included, “this organization treats people like
MRR Percent of
36,7 Number of variance
Construct Instrument author Subscales items Cronbach’s a explained
me fairly and justly” (integrity), “this organization has the ability to accomplish what it
says it will do” (competence), and “this organization can be relied on to keep its
promises” (dependability). We note here that according to Mishra’s (1996) model of
trust, these three dimensions are among the factors that determine organizational trust.
3.2.6 Employee reactions. The construct of employee reactions consisted of four
subscales: motivation (Lockwood, 2010), organizational commitment (Allen and Meyer,
1990), work engagement (Schaufeli et al., 2002) and organizational citizenship behaviour
(Niehoff and Moorman, 1993). Each subscale included a number of sub-subscales
as shown in Table II. For example, organizational commitment contained three
sub-subscales: affective commitment, continuance commitment and normative
commitment. Similarly, OCB contained five sub-subscales: altruism, courtesy,
sportsmanship, conscientiousness and civic virtue. The items for each sub-subscale
were measured on a Likert scale ranging from 1 – totally disagree to 5 – totally agree.
Examples of the items included, “I feel loyal to my company” (affective commitment) and
“I am always punctual” (conscientiousness).
3.2.7 Controls. Several additional organizational and individual variables were
controlled for in order to rule out alternative explanations of the findings (Turnley and
Feldman, 2000). Specifically, we used the organizational controls of sector, ownership
and size, and the individual controls of gender, age, seniority and position, as shown in
Table II. Each of the controls was estimated as a single latent variable.
In developing the constructs of the study we followed a three step approach. First,
each sub-subscale was developed as a weighted average of all the items comprising the
sub-subscale, with weights being the factor loadings of the items in a confirmatory
factor analysis (CFA). Second, each subscale was developed in a similar way using as
items the sub-subscales already developed in step one. Finally, each construct was
developed in a similar way using as items the subscales developed in step two.
correlation coefficients
reactions
employee
Means, standard
deviations, and
in the study
Table III.
685
MRR We assessed the overall model fit following Bollen’s (1989) recommendation to examine
36,7 multiple indices, since it is possible for a model to be adequate on one fit index but
inadequate on many others. We used the x 2-test (with critical significance level
p , 0.05) and the normed-x 2 ratio (with critical level no more than 3, or at most 5),
the goodness of fit index (GFI, with critical level not lower than 0.80, or 0.70 for complex
models), the normed fit index (NFI, with critical level not lower than 0.90),
686 the comparative fit index (CFI, with critical level not lower than 0.90), and the root
mean squared error of approximation (RMSEA, with critical level not more than 0.05,
0.08, and 0.10 to indicate excellent, good, and mediocre fit, respectively) (Kenny, 2011).
4. Results
Table III displays the means, standard deviations, and the bivariate correlation
coefficients between all the constructs used in the study. We observe strong, positive and
significant correlations between all structural constructs, supporting the hypotheses of
the study. However, results based on correlations, although interesting, may be
misleading due to the interactions between several variables. Therefore, in order to
isolate the possible links between the variables involved in the research framework
shown in Figure 1, the results with respect to five estimated models are reported in
Table IV. The first four models treat each of the employee reactions (i.e. motivation,
commitment, work engagement and organizational citizenship behaviour) as the
ultimate dependent construct in the model, while in the fifth aggregate model the
dimensions of the ultimate dependent construct refer to the four individual employee
reactions studied previously. For each model we present two types of results. The first
refers to full mediation, where the links with question marks in the complete framework
in Figure 1 are not present, reflecting a more parsimonious model. The second refers to
the complete model presented in Figure 1 (i.e. including the links with question marks),
reflecting partial mediation.
In all cases the estimated standardized coefficients reported in Table IV are highly
significant and the GFI confirmed the validity of all models. However, it must be noted
here that the x 2 are significant and indicate that the proposed models are not adequate
representations of the entire set of relationships. Considering that x 2 statistics may be
inflated by high sample sizes and high correlation coefficients, the value of the normed-x 2
(i.e. value of x 2/degrees of freedom) was used instead. In our cases this value is less than 3,
confirming the validity of our models (Pedhazur and Pedhazur-Schmelkin, 1991).
Comparing the diagnostics and the number of significant links that exist between the
constructs for each model we see that the specification of the partially mediated models
is preferable to the full mediation models. Considering that both the direct and the
indirect standardized effects are significant, we may conclude that the indirect
hypotheses of the study with respect to mediation are supported. This means that
organizational justice partially mediates the relationship between HRM climate and
organizational trust, and organizational trust partially mediates the relationship
between organizational justice and employee reactions. For the partial mediation
alternative of the aggregate employee reactions model (see results in the last column
in Table IV) the mediating relationships are also shown in Figure 2. The circles represent
the related latent variables and the bold arrows indicate the structural relationships
between the corresponding variables. The numbers that are assigned to each arrow are
the estimated standardized coefficients.
Model 3: work Model 4: organizational Model 5: employee
Model 1: motivation Model 2: commitment engagement citizenship behaviour reactions
Full Partial Full Partial Full Partial Full Partial Full Partial
mediation mediation mediation mediation mediation mediation mediation mediation mediation mediation
Content ! climate 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40
Resourcing 0.72 0.72 0.72 0.72 0.72 0.72 0.72 0.72 0.72 0.72
Development 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81
Rewards 0.86 0.86 0.86 0.86 0.86 0.86 0.86 0.86 0.86 0.86
Relations 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74
Process ! climate 0.68 0.69 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68
Distinctiveness 0.92 0.92 0.92 0.92 0.92 0.92 0.92 0.92 0.92 0.92
Consistency 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95
Consensus 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81
Climate ! justice 0.95 0.93 0.95 0.90 0.95 0.91 0.95 0.90 0.95 0.91
Climate ! trust 0.62 0.65 0.63 0.60 0.66
Resourcing 0.81 0.81 0.81 0.81 0.81 0.81 0.82 0.82 0.81 0.81
Development 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89
Rewards 0.81 0.81 0.81 0.82 0.81 0.82 0.82 0.82 0.81 0.82
Relations 0.83 0.83 0.83 0.83 0.83 0.83 0.83 0.83 0.83 0.83
Justice ! trust 0.94 0.28 0.91 0.27 0.92 0.28 0.91 0.31 0.92 0.26
Justice ! reactions 0.68 ns 0.39 0.09 * 0.31
Distributive 0.83 0.84 0.83 0.84 0.83 0.84 0.83 0.84 0.83 0.84
Procedural 0.81 0.83 0.82 0.85 0.82 0.85 0.82 0.85 0.81 0.85
Interactional 0.77 0.78 0.77 0.79 0.77 0.79 0.77 0.79 0.77 0.79
Trust ! reactions 0.80 0.19 0.79 0.80 0.68 0.39 0.50 0.42 0.85 0.59
Integrity 0.88 0.89 0.89 0.88 0.89 0.89 0.89 0.89 0.88 0.88
Competence 0.81 0.82 0.82 0.82 0.81 0.82 0.82 0.82 0.82 0.82
Dependability 0.88 0.89 0.90 0.90 0.89 0.90 0.89 0.90 0.89 0.90
Motivation
Recognition 0.87 0.86
Incentives 0.89 0.90
Relations 0.89 0.89
(continued)
reactions
employee
Estimates of SEM
Justice and
687
Table IV.
36,7
688
MRR
Table IV.
Model 3: work Model 4: organizational Model 5: employee
Model 1: motivation Model 2: commitment engagement citizenship behaviour reactions
Full Partial Full Partial Full Partial Full Partial Full Partial
mediation mediation mediation mediation mediation mediation mediation mediation mediation mediation
Commitment
Affective 0.90 0.90
Continuance 0.60 0.60
Normative 0.69 0.69
Work engagement
Vigor 0.87 0.87
Dedication 0.88 0.88
Absorption 0.77 0.77
Organizational
citizenship behaviour
Altruism 0.69 0.69
Courtesy 0.79 0.79
Sportsmanship 0.75 0.75
Conscientiousness 0.73 0.73
Civic virtue 0.66 0.66
Employee reactions
Motivation 0.73 0.74
Commitment 0.83 0.82
Work engagement 0.81 0.81
Organizational citizen
behavior 0.65 0.64
Organizational controls
! content
Sector 0.16 0.14 0.15 0.15 0.15 0.14 0.15 0.15 0.15 0.14
Ownership 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49
Size 0.21 0.21 0.21 0.21 0.21 0.20 0.21 0.21 0.21 0.21
(continued)
Model 3: work Model 4: organizational Model 5: employee
Model 1: motivation Model 2: commitment engagement citizenship behaviour reactions
Full Partial Full Partial Full Partial Full Partial Full Partial
mediation mediation mediation mediation mediation mediation mediation mediation mediation mediation
Organizational controls
! process
Sector 0.09 0.08 0.08 0.08 0.08 0.07 0.08 0.08 0.08 0.08
Ownership 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59
Size 0.21 0.21 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20
Individual controls !
reactions
Gender 0.06 * 0.01ns 0.11 0.11 0.11 2 0.01ns 0.19 0.18 0.13 0.09
Age 20.02ns 0.01ns 0.09 0.09 0.05 0.10 0.06 0.07 0.06 0.08
Seniority 20.01ns 0.05 * 0.14 0.15 0.16 0.32 0.20 0.22 0.15 0.19
Position 20.12 0.02ns 20.02ns 20.01ns 2 0.05ns 0.28 0.06ns 0.08 * 20.03ns 0.06 *
Diagnostics
x2 415.77 390.35 377.76 365.83 409.77 396.48 454.89 444.47 489.35 480.59
df 295 293 295 294 295 293 348 346 321 319
p 0.000 0.000 0.001 0.003 0.000 0.000 0.000 0.000 0.000 0.000
Normed x 2 1.41 1.33 1.28 1.24 1.39 1.35 1.31 1.28 1.52 1.51
RMSEA 0.051 0.046 0.042 0.039 0.049 0.047 0.042 0.042 0.057 0.056
NFI 0.97 0.97 0.97 0.97 0.96 0.97 0.96 0.96 0.96 0.96
CFI 0.99 0.99 0.99 0.99 0.99 0.99 0.99 0.99 0.99 0.99
GFI 0.84 0.85 0.85 0.86 0.84 0.85 0.84 0.84 0.82 0.83
Notes: Significant at: * p , 0.10; no star , 0.001; figures represent standardized construct coefficients; italic figures represent standardized structural
coefficients; ns – non-significant
reactions
employee
Justice and
689
Table IV.
36,7
690
MRR
Figure 2.
0.81 0.83
Consensus Relations
Chi-Square = 480.59 df = 319 p-value = 0.000 Normed Chi-Square = 1.51 RMSEA = 0.056 NFI = 0.96 CFI = 0.99 GFI = 0.83
The results indicate that for all cases the links within the HRM system (i.e. from HRM Justice and
content and process to HRM climate) and the link connecting the HRM system and the employee
employee reactions system (i.e. from HRM climate to organizational justice and
organizational trust) are the same in all models. In addition, the common links within the reactions
employee reaction system (i.e. from organizational justice to organizational trust) do not
differ significantly in all models. Finally, the specific links within the employee reaction
system (i.e. from organizational justice to employee reactions, and from organizational 691
trust to employee reactions) are different depending on the type of employee reaction.
5. Findings
There are five major findings of this study. First, the content and the process of HR
practices, as perceived by employees, strongly influence employees’ reactions, such as
motivation, commitment, work engagement and OCB. In particular, considering the
highest values of the standardized coefficients of the items reported in Table IV, rewards
and training and development (content) and consistency and distinctiveness (process)
are the most important drivers that produce shared perceptions among employees
(climate), which in turn influence employee reactions, such as incentives, affective
commitment, dedication and sportsmanship, through organizational justice and trust.
Second, the impact of the HRM process on employee reactions is much stronger than
the impact of HRM content. This finding is important because most studies have
investigated either the influence of HRM content on employee attitudes (Kinnie et al.,
2005; Purcell and Hutchinson, 2007) or the influence of the HRM process on employee
reactions (Frenkel et al., 2011; Li et al., 2011).
Third, HRM climate, organizational justice and organizational trust serially mediate
the relationship between the content and process of the HRM system, and employee
reactions. Furthermore, in this serially mediated procedure, organizational justice
influences employee reactions through organizational trust. The findings indicate that
the impact of the HRM system is stronger for employee commitment, and less for work
engagement, motivation and organizational citizenship behaviour.
Fourth, procedural and distributive justice are related to organizational trust,
supporting the findings of Alexander and Ruderman (1987), Kumar et al. (1995) and
Tyler and Lind (1992). In addition, procedural justice seems to be a better predictor of
employee reactions, supporting Folger and Konovsky (1989) and Nikbin et al. (2012).
Fifth, considering the controls used in the study, the results indicate that motivation,
commitment, work engagement and OCB are higher in the services and trade sectors,
private organizations and larger organizations in the Greek context. In addition, the
results show that motivation, commitment, work engagement and OCB are higher
among women, older people, people who have worked longer in the organization, and
people in lower positions.
6. Discussion
6.1 Contribution
The contribution of this study can be related to its two objectives. According to the first
objective, we found that both the content and the process of the HRM system influence the
employee reactions of employee motivation, commitment, work engagement and
organizational citizenship behaviour. Thus, the study, by integrating both the HRM
content and process in investigating the HRM system – employee reactions relationship,
MRR confirms and extends empirical evidence focusing on either the content or the process
36,7 alone in investigating the HRM – reactions relationship (Bowen and Ostroff, 2004).
Furthermore, the study, by establishing that the strength of the influence of HRM process
is stronger than the influence of HRM content, breaks new ground in investigating the
HRM system – employee reactions relationship. This is because it indirectly confirms that
it is more important to communicate effectively to employees the existing HR policies and
692 practices than to try to apply new ones. Specifically, for countries like Greece, which have
been affected by the economic and financial crisis, concentrating on costly HR practices,
such as rewards and training and development, is not enough unless an effort is also made
to communicate these HR policies and practices (and others) more consistently and
distinctively. Moreover, using consistent and distinctive procedures of communication
may not incur any additional costs to the organization.
According to the second objective we found that organizational justice and trust
mediate the relationship between the HRM system (content, process and climate) and
employee reactions. Specifically, in this study we traced the strength of the influence
of various dimensions of both organizational justice and organizational trust on
employee reactions. This study contributes to the growing number of studies that try to
open the black box ofthe HRM – employee reactions relationship (Paauwe, 2009;
van de Voorde et al., 2010, 2012). Accordingly, we argue in this study that researchers
can go beyond looking at the two end-points of the relationship, and illuminate the
intervening stages of the HRM-employee reactions relationship. This study supports the
view that employee reactions do not just depend on HRM content and process that may
shape the perceptions of individuals (Bowen and Ostroff, 2004), but that these
perceptions of individuals influence specific factors of organizational justice and trust,
which in turn influence employee reactions. Thus, contrary to Wong et al. (2006) who
argue that the relationship between organizational justice and trust produces mixed
results, the results of the present study indicate that procedural and distributive justice
are related to trust, dependability and integrity, which in turn influence employee
reactions. In countries like Greece, which are experiencing economic and financial crisis,
employee reactions may be very sensitive to trust and justice in the organization, due to
the uncertainties that have grown during the period of crisis.
Beyond the above, an important further contribution of this work relates to the
general findings with respect to the controls used in the investigation. We found that
organizational and individual controls do matter when examining the HRM-reactions
relationship. Specifically, although we connected organizational and individual controls
with all constructs of the model, we found significant links only between organizational
controls (sector, owner, size) and HRM content and process, and between individual
controls (gender, age, seniority, position) and employee reactions. These results add
value to the growing evidence suggesting that organizational characteristics have
differential effects on HRM systems (Katou, 2012), and individual characteristics have
differential effects on perceptions of employees ( Johnson et al., 2009; Lin, 2008).
7. Conclusions
This study provides an empirical test of the HRM-employee reactions relationship.
We followed Bowen and Ostroff (2004) in examining the content of an HRM system,
expressed by actual HR practices (resourcing, training, rewards and relationships) and
the process of the HRM system, specifically the strength of the HRM system
(distinctiveness, consistency and consensus) and their contribution to HRM climate
(employees’ shared perceptions of the HRM system). In addition, we examined the
mediating role of organizational justice (distributive, procedural and interactional
justice) and trust (integrity, competence and dependability) in the relationship between
employees’ shared perceptions of the HRM system and employee reactions (motivation,
commitment, work engagement and OCB).
We conclude that, in the integrated system of HRM content and process (Bowen and
Ostroff, 2004), the HRM process has a greater impact on employee reactions than the
HRM content. Furthermore, we found that organizational justice mediates the
relationship between HRM climate and trust, and that trust mediates the relationship
between organizational justice and employee reactions. In particular, we found that
procedural and distributive justice is related more strongly with trust, dependability and
integrity, and also we found that procedural justice is a better predictor of employee
MRR reactions than distributive justice. Therefore, this study provides a useful starting
36,7 point for future research that could investigate the impact of both the content and the
process of HRM systems on employee reactions, mediated by organizational justice and
trust.
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