Strategic HRM as process: how HR system and organizational climate strength influence Chinese employee attitudes

Abstract

In contrast to the high-performance work systems literature that focuses on HR practices, we follow Bowen and Ostroff in examining human resource management (HRM) processes, specifically the strength of an HR system (its distinctiveness, consistency, and consensus) and its contribution to the organizational climate (employees' shared perceptions of the HR system). Based on 810 employees within 64 units in three Chinese hotels, we examine how employee perceptions of HRM system strength and organizational climate are associated with employees' work satisfaction, vigor, and intention to quit. The distinctiveness of an HRM system was found to be related to the three employee work attitudes, and high climate strength increases both the positive relationship between consensus and work satisfaction, and the negative relationship between consensus and intention to quit. We draw on aspects of Chinese society to interpret these findings. Several important research and HR practice implications are highlighted and discussed.

Keywords:

• China
• high-performance work system
• human resource practices
• organizational climate
• strategic HRM
• work attitudes

Acknowledgements

Thanks to Xiongwen Lu and Min Li for facilitating data collection and Paul Edwards for comments on an earlier draft. Prof. Karin Sanders worked on this paper during a visit as Professorial Fellow at the School of Organization and Management, Australian School of Business, UNSW, Sydney, Australia.

Notes

Dr. Xiaobei Li is now a research fellow at Guanghua Leadership Institute, Guanghua School of Management, Peking University, China.

1. Intention to quit is important for hotel employers because the turnover rates in the hotel industry average over 40% in several countries (Cheng and Brown 1998; Boella, Goss-Turner and Eade 2005). Five-star hotels do their best to limit turnover as they depend on providing consistently high‐quality service.

2. Interviews with HR managers and employees at the three hotels suggested that employees' salaries were higher than at other local hotels. Based on official statistics (NBSC 2008), we found that average salaries at each of the hotels were slightly lower than the local, all industry average pay rates as follows: RMB 1000 vs. 1030 (Dongguan), 2400 vs. 2892 (Shanghai), and 2100 vs. 2254 (Ningbo). However, the local all-industry average statistics overstate the salary rates for service workers because they include managers.

3. Consistency is an ipsative measure, derived from the average deviation of several items. Consequently, it is not included in the confirmatory factor analysis.