Jeroen Delmotte

Unravelling the Hrm-Performance Link: Value-Creating and Cost-Increasing Effects of Small Business Hrm

The majority of empirical studies on the HRM-performance link report a positive story. The costs associated with the productivity rise due to high performance work practices (HPWP) have been largely neglected. The purpose of this study is to develop a conceptual framework that maps both the value-enhancing and cost-raising impact of HPWP. In addition, we want to pronounce upon their overall effect on financial performance. To test our model, we rely on a sample of small businesses. Understanding both performance and cost-related effects of the implementation of HPWP is particularly valuable for small businesses since they often lack financial resources to implement HPWP and benefit less from economies of scale compared to their larger counterparts. Study results indicate that although greater use of HPWP is associated with increased productivity, this effect is offset by increased labour costs. However, we find an overall positive effect of HPWP on firm profitability.

HR outsourcing: threat or opportunity?

Purpose – The debate on human resource (HR) outsourcing is polarised. HR outsourcing is seen as an opportunity for the HR function by some and as a threat by others. The first view suggests that HR outsourcing is an instrument creating time for HR to become a strategic partner. The second view considers HR outsourcing as a cost‐cutting instrument gradually reducing HR staff. The purpose of this study is to examine whether HR outsourcing is a manifestation of a strategic HR focus, a cost‐cutting HR focus or both.Design/methodology/approach – The sample is obtained from an economy‐wide, cross‐sectional survey. The data cover 1,264 organisations with ten employees or more.Findings – Results indicate that organisations with a strong focus on HR cost‐cutting do not outsource more than organisations with a weaker focus on HR cost‐cutting. The analyses show a positive relationship between a strong focus on strategic human resource management (HRM) and the level of HR outsourcing.Research limitations/implications...

Toward an assessment of perceived HRM system strength: scale development and validation

The purpose of this study was to develop and validate a theoretically grounded instrument to measure perceived HRM system strength. Relying on the work of Bowen and Ostroff, we identify different constructs capturing measurable features of a strong HRM system. Next, we develop items to measure these constructs, and use two different samples to validate the instrument. The resulting instrument builds on 11 constructs, organized along 3 different hierarchical levels. It is useful for HR practitioners in evaluating their functioning and for researchers to further test and develop theoretical insights in the HRM–performance relationship.