DOI QR코드

DOI QR Code

Outcome and Antecedent of Organizational Effectiveness: Moderation Effect of Strategy

  • KIM, Boine (Department of Global Commerce, Hoseo University)
  • Received : 2022.02.07
  • Accepted : 2022.03.12
  • Published : 2022.06.30

Abstract

Purpose - This exploratory study analyzes the performance of the business from the HRM point of view. Analyzed the influence of HRM and organization effectiveness on business performance. Also moderating effect of the strategy is analyzed. Research design, data, and methodology - Two outcome variables are measured, non-financial performance and financial performance. Two organizational effectiveness variables are measured, job satisfaction and organizational commitment. And two HRM areas are measured, HRM practice and organizational culture. Finally, two strategies are measured as moderators, market strategy and product/service strategy. This study analyzed employees of 554 from the 7th HCCP. This study used SEM and MCFA. Result - The results of turnover intention, growth rate, and profit rate verified the influence of HRM and organizational effectiveness. Overall results showed a contrary effect of education & training system implement and participation on job satisfaction and organizational commitment. Among organizational culture, innovation and relation positively affect job satisfaction and organizational commitment. However, antecedents influencing turnover intention, growth rate, and profit rate bear no resemblance. And the MCFA result shows that strategy's group differentiation analysis is meaningful in turnover intention not in financial performance. Conclusion - Based on this study result, management suggestions for turnover intention, growth rate, profit rate, and organizational effectiveness are made. Especially, due to the company's strategy.

Keywords

References

  1. Abbasi, S. M., & Hollman, K. W. (2000). Turnover: the real bottom line. Public Personnel Management, 2(3), 333-342. https://doi.org/10.1177/009102600002900303
  2. Abednego, A., & Purba, C. B. (2021). The reaction caused by work stress, job satisfaction, and organizational commitment to turnover intention on the employees at PT. Bali towerindo sentra, TBK. Dinasti International Journal of Digital Business Management, 2(3), 400-4009.
  3. Anwar, K., & Balcioglu, H. (2016). The relationship between transformational leadership characteristics and effecitiveness: a case study of construction companies in Erbil. International Journal of Science Technology and Management, 5(2), 250-256.
  4. Baer, J., & Jiang, K. (2012). How does human resource management influence organizational outcomes? a meta-analytic investigation of mediating mechanisms. Academy of Management Journal, 55(6), 1264-1294. https://doi.org/10.5465/amj.2011.0088
  5. Barney, J. B. (1986). Organizational culture: can it be a source of sustained competitive advantage. Academy of Management Review, 11(3), 656-665. https://doi.org/10.5465/AMR.1986.4306261
  6. Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. NJ: John Wiley & Sons.
  7. Chen, Y. C. (2010). Structural investigation of the relationship between working satisfaction and employee turnover. The Journal of Human Resource and Adult Learning,6(1), 41-50.
  8. Cho, S. H. (2010). The moderating effect of strategic human resource development on the relationship between investment on HRD and organizational performance. The Korean Journal of HRD Quarterly, 12(2), 1-18.
  9. Choi, B. J., & Oh, K. S. (2012). A study on job satisfaction through lifelong education for small & medium business workers. Journal of Digital Convergence, 10(4), 333-339. https://doi.org/10.14400/JDPM.2012.10.4.333
  10. Faems, D., De Winne, S., Maes, J., & Sels, L. (2003). The effect of individual HR domains on financial performance: evidence from Belgian small businesses. The International Journal of Human Resource Management, 16(5), 676-700. https://doi.org/10.1080/09585190500082790
  11. Fajarto, S. P., Aima, M. H., & Karsono, B. (2019). The effect of compensation and job satisfaction on increasing productivity of Asuransi Jasindo head office employees mediated by motivation variable. International Journal of Innovative Science and Research Technology, 4(7), 100-113.
  12. Frinses, K. E., Laba, R., & Reni, A. (2021). Effect of organizational culture and organizational strategy towards organizational effectiveness with knowledge management as an intervening variable. Hasanuddin Journal of Business Strategy, 3(1), 65-78. https://doi.org/10.26487/hjbs.v3i1.413
  13. Habib, S., Aslan, S., Hussain, A., Yasmeen, S., & Ibrahim, M. (2014). The impact of organizational culture on job satisfaction, employee commitment and turnover intention. Advances in Economics and Business, 2(6), 215-222. https://doi.org/10.13189/aeb.2014.020601
  14. Hameed, A. A., & Anwar, K. (2018). Analyzing the relationship between intellectual capital and organizational performance: a study of selected private banks in Kurdistan. International Journal of Social Sciences & Educational Studies, 4(4), 39-52. https://doi.org/10.26449/sssj.322
  15. Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and oraganizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677-694. https://doi.org/10.1037/a0021987
  16. Kang, C. S., & Lee, Y. G. (2018). The impact of transactional leadership to organizational commitment: the mediating effect of followership. Journal of Digital Convergence, 16(11). 81-87. https://doi.org/10.14400/JDC.2018.16.11.081
  17. Khan, Y. W., Hassan, M., Jalles, T., & AsadUllah, M. (2020). Job satisfaction, organizational commitment and other factors' impact on turnover intention of private employees: an empirical evidence from education sector of Pakistan. Journal of Geography and Social Sciences, 2(2), 200-215.
  18. Kim, J. H. (2014). The role of HR's a strategic partner: the effects of human resource management and human resource development on the organizational effectiveness(Master Thesis). Ewha Womans University, Seoul.
  19. Kim, Y. J. (2018). Analysis on firms growth and employment capability across a firm's characteristics. The Journal of Management & Economics, 40(2), 211-236. https://doi.org/10.22828/MERI.2018.40.2.009
  20. Kimberly, J. R., & Quinn, R. E. (1984). Managing organizational transitions. McGraw-Hill/Irwin.
  21. Leen, J. M. (2017). An empirical study on the effects of organizational culture and organizational justice of electric power public enterprise on job satisfaction: focusing on mediating effects of trust in the leader(Doctoral dissertation). Hoseo University, Chunan.
  22. Lepak, A. J., Marchillo, K., Pichereau, S., Craig, W. A., & Andes, D. R. (2012). Comparative pharmacodynamics of the new oxazolidinone tedizolid phosphate and linezolid in a neutropenic murine Staphylococcus aureus pneumonia model. Antimicrobial Agents and Chemotherapy, 56(11), 5916-5922. https://doi.org/10.1128/aac.01303-12
  23. Lund, D. B. (2003). Organizational culture and job satisfaction. Journal of Business & Industrial Marketing, 18(3), 219-236. https://doi.org/10.1108/0885862031047313
  24. Luthans, F. (2011).Organizational behavior: an evidence-based approach, 12th Edition. OH: Thomson South-Western.
  25. Magginson, L. C., Franklin, G. M., & Byrd, M. J. (1995). Human resources management. Houson: Dame Publishing.
  26. Mathis, R. L., & Jackson, J. H. (2008). Human resource management, 12th Edition. OH: Thomson South-Western.
  27. Neal, A., West, M. A., & Patterson, M. G. (2005). Do organizational climate and competitive strategy moderate the relationship between human resource management and productivity?. Journal of Management, 31(4), 492-512. https://doi.org/10.1177/0149206304272188
  28. Park, S. H. (2012). Assessing relationships among mentoring, trust, organizational commitment, and human resource competence: a latent growth modeling approach. Korean Business Education Review, 27(3), 251-277.
  29. Pirzada, D. S., Hayat, F., Ikram, A. A., Ayub, M., & Waheed, K. (2013). Impact of human resources management practices on turnover, productivity and corporate financial performance. European Journal of business and Management, 5(10), 163-177.
  30. Prasety, J. H., Ariawan, J., & Ariyanto, E. (2021). An excellent trateg in reducing trunove rintention at Permata Keluarga Bekasi Hospital. International Journal of Scientific & Technology Research, 10(1), 162-168.
  31. Quresh, T. M., Akbar, A., Khan, M. A., Sheikh, R. A., & Hijazi, S. T. (2010). Do human resource managment practices have an impact on financial performance of banks? African Journal of Business Management, 4(7), 1281-1288.
  32. Rahman, W., Rahman, H., & Ali, F. (2015). Interrelationship of employee development, organizational commitment, job satisfaction and their impact on turnover intentions. City University Research Journal, 5(2), 301-314.
  33. Raikes, L., & Vernier, J. F. (2004). Rewarding and retaining key talent: are you ready for the recovery? Tower Perrin.
  34. Riketta, M. (2002). Attitudinal organizational commitment and job performance: a meta-analysis. Journal of Organizational Behavior, 23(3), 257-266. https://doi.org/10.1002/job.141
  35. Saleem, T., & Gul, S. (2013). Drivers of turnover intention in public sector organizations: pay satisfaction organizational commitment and employment opportunities. Middle-East Journal of Scientific Research, 17(6), 697-704.
  36. Sims, R. R. (2002). Organizational success through effective human resources management. Westport: Greenwood Publishing Group.
  37. Varshney, D. (2014). Impact of self-concept on turnover intention: an empirical study. American International Journal of Contemporary Research, 4(10), 87-96.
  38. Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: a comparison of approaches. Academy of Management Review, 11(4) 801-814. https://doi.org/10.5465/AMR.1986.4283976
  39. Wu, C. H., Wang, Y., & Mobley, W. H. (2012). Advances in Global Leadership. Bingley: Emerald Group Publishing Limited.
  40. Yang, H. S. (2003). A Longitudinal Test of Two Competing Perspectives About the Effects of HR Systems on Firm Performance. Korean Management Review, 32(2), 597-625.