Vai trò trung gian của hrm bền vững trong mối quan hệ giữa tự Động hóa thông minh, hạnh phúc của nhân viên, sự bất an trong công việc và hiệu suất của nhân viên
INTRODUCTION
Research Background
The 4 th Industrial Revolution and its recent rapid acceleration drive increasing the workplace‘s digital transformation across industries Intelligent Automation (e.g., artificial intelligence, advanced technologies) affects not only the firm performance, but also may have wide ranging impact on the employees In facts, there is an increasing number of organizations that have adopted digital technology and advanced technologies at work to improve firm performance and manage their employees (Cooke et al., 2022) However, it has been reported that digital workplace and algorithm management have been not only affecting a diverse range of social-psychological, workers‘ physical and mental health (Vyas & Butakhieo, 2021), but it have been also an impact on Job Insecurity in the modern workplaces Furthermore, the COVID-19 pandemic lead to technological change faster, which means new technological advancements and skill requirements have been incorporated into work practices Technological changes have revolutionized traditional human resource functions, creating more challenges for the sustainability of an organization‘s Human Resource Management, employees‘ Job Insecurity and work stress, especially for low-skill workers, middle-aged group or senior employees over 50 years of age
Intelligent Automation has prompted both employers and employees to explore alternative work arrangements, influencing organizational performance Recent studies indicate that many organizations are increasingly adopting technologies for videoconferencing and remote employee monitoring (Vyas & Butakhieo, 2021) However, evidence suggests that such remote monitoring can stifle employee creativity, ultimately leading to decreased organizational performance (Nell et al.).
2020), but also could pose a serious security risk to them and their corporations that causes of stress, insecurity, reduced Employee Performance and/or work productivity (Hodder,
Research indicates that heightened virtual team dynamics may lead to diminished communication richness compared to in-person interactions, potentially resulting in conflicts and misalignment that hinder team performance (Dirani et al., 2020) Furthermore, the integration of remote work during the COVID-19 crisis raises significant questions about its impact on team effectiveness and collaboration.
2 emotions, such as anxiety and stress, can best be communicated in virtual work where social and emotional cues are relatively limited (Kniffin et al., 2021)
Sustainable Human Resource Management (SHRM) practices are increasingly vital for organizations and employees to navigate crises effectively (Lu et al., 2022) This study emphasizes SHRM practices grounded in common good values, which enhance Employee Performance by aligning with the human-centered agenda of the International Labor Organization for future work Such practices address ethical concerns arising from traditional strategic HRM approaches that often neglect organizational responsibilities to employees (Aust et al., 2020) Furthermore, a sustainable HRM approach aligns with the UN's 17 Sustainable Development Goals, facilitating an inclusive and resilient Covid-19 recovery as advocated by the ILO (ILO, 2021; Samans, 2021) However, organizations may worry that adopting SHRM practices focused on the common good could diminish efficiency and Employee Performance, as employees balance performance goals with non-business objectives (Aust et al., 2020).
Digital technology significantly influences modern workplaces, reshaping work practices and the roles of employees However, the specific changes in work practices and the impact of Intelligent Automation on employee performance remain unclear.
This study aims to explore the impact of sustainable HRM practices on employee well-being and performance within companies rooted in Asian cultures The relationship between Intelligent Automation, sustainable HRM, and employee performance remains a topic of discussion, highlighting the need for research to understand the mediating factors involved in this process.
Research Objective
This study aims to explore the relationship between Intelligent Automation, Job Insecurity, Employee Well-being, Employee Performance, and Sustainable HRM, with a focus on changes in workplace practices in Vietnam and Korea It seeks to identify how positive synergies among these variables can be enhanced through the mediating role of Sustainable HRM Additionally, the study highlights the benefits of implementing Sustainable HRM in organizations, demonstrating how employers can effectively manage and promote the long-term positive impacts of Intelligent Automation by fostering Employee Well-being.
[Figure 1-1] The research model for the thesis
Research Method
This study aims to integrate traditional qualitative research methods to explore theoretical concepts with quantitative research methods to examine the relationships among Intelligent Automation, Job Insecurity, Employee Well-being, Employee Performance, and Sustainable HRM By emphasizing subjective interpretation, qualitative methods will provide insights into how individuals perceive and experience their environments across various social and cultural contexts Additionally, a survey will be conducted and analyzed using quantitative methods and statistical techniques to uncover correlations.
This study aims to survey current employees to gather insights into their perceptions, experiences, and attitudes The findings will enhance our understanding of the organizational, social, and cultural contexts in which these employees operate.
This study will employ statistical methods to analyze survey data, focusing on the comparative benefits of Sustainable HRM for companies The findings will highlight the intermediary role of Sustainable HRM in relation to Intelligent Automation, Job Insecurity, Employee Well-being, and Employee Performance.
In data analysis, key processes such as analysis synthesis, interpretation, and induction are essential Analysis synthesis involves organizing and summarizing collected data, while interpretation focuses on understanding and explaining the results Induction is a method for deriving general principles from individual cases, which in this study aims to deepen the understanding of how Sustainable HRM enhances both employee and company performance This approach will bridge the gap between theory and practice, offering valuable insights for companies navigating the Fourth Industrial Revolution.
Research Scope
In order to effectively achieve the purpose of the study, this study will be limited to the following research scope
This research examines the influence of Intelligent Automation on employee performance, specifically within companies that implement cutting-edge technologies The study will focus on a Korean financial institution operating in Vietnam, as well as Vietnamese technology firms that successfully utilize automation to enhance their operations.
The study primarily focuses on recent research, analyzing papers, statistics, and academic data from 2019 to 2024 Additionally, the author will reference earlier studies, particularly those prior to 2019 that are well-validated and frequently cited, to gain a comprehensive understanding of the definitions and concepts related to the variables under investigation.
Data will be analyzed using the statistical program SPSS, and if necessary, Excel regression analysis, Power BI will also be used
Research Structure
LITERATURE REVIEW
Research on Intelligent Automation
Intelligent Automation is an advanced technology that automates business processes traditionally performed by employees, utilizing next-generation software This approach mimics various work activities such as language processing, vision, execution, thinking, and learning, allowing companies to enhance their operational efficiency without human intervention By implementing Intelligent Automation, organizations can accelerate their processes, reduce costs, improve quality, and streamline decision-making, ultimately contributing to better employee well-being and performance.
To grasp the key variables in this study, it's essential to differentiate between Intelligent Automation and artificial intelligence Intelligent Automation integrates robotic process automation and business process management with advanced technologies like AI, process mining, intelligent character recognition, optical character recognition, and analytics to create autonomous end-to-end processes that can think, learn, and adapt without human input In contrast, artificial intelligence focuses on designing digital computers and programs capable of executing tasks that typically require human intelligence, including speech recognition, language translation, decision-making, and visual perception A computer demonstrates intelligence when it performs tasks traditionally associated with human capabilities.
[Figure 2-1] Scope of Intelligent Automation
A study titled "Automation and the Future of Work: A Social Shaping of Technology Approach" by Debra Howcroft and Phil Taylor (2022) explores the factors influencing automation and its anticipated impacts on the workforce.
According to Winner (1985), technological innovation, including automation, can be likened to political institutions as it profoundly impacts various aspects of daily life, such as work, communication, and consumption The choice of technology can, in effect, determine the form of politics that shapes people's lives, influencing their experiences over time.
Technological innovation often builds upon existing technologies, as seen with the creation of the iPhone in 2003 This groundbreaking device was developed using a multi-channel platform originally designed for the iPod and iTunes, showcasing how hardware and software integration can lead to significant revenue generation for companies like Apple (Montgomery & Roscoe, 2013).
Uber serves as a prime example of how technological innovation can reshape industries, as highlighted by Hughes (1987) Often referred to as "devastating innovation," Uber has not only transformed transportation methods but also revolutionized the revenue models within the sector (Cohen & Kietzmann, 2014) By positioning itself as a technology broker focused on enhancing mobility through artificial intelligence, Uber has introduced the concept of "partner drivers," significantly increasing its recruitment capabilities (Uber, 2022) With the backing of venture capital, Uber initially set lower fares, allowing it to outcompete traditional transportation options and create job insecurity for conventional taxi drivers (Rahman & Helen, 2019).
Economists have varying perspectives on the effects of automation on the labor market While early studies, such as those by Frey and Osborne (2017), warned of potential job losses, others, like Autor (2015), argue that while some jobs may vanish, new opportunities will arise Additionally, Roberts (2015) notes that although automation can replace human labor, it may lead to a decrease in new value creation over time, particularly when considering the capital costs involved.
Technological innovation can lead to short-term cost savings for companies, but these benefits diminish over time as competitors imitate successful technologies, eroding any comparative advantage For instance, a bank that effectively implements Robotic Process Automation (RPA) may initially enjoy increased profits; however, as others adopt similar technologies, profit margins decline While automation can yield immediate productivity gains, it ultimately fails to resolve the inherent contradictions of capital accumulation Research by Graetz and Michaels (2018) indicates that while automation can provide significant returns within a repayment period of 2 to 18 months, its long-term adoption remains limited.
The decision to implement automation hinges on a cost comparison between human labor and machines, necessitating a significant reduction in capital expenditures for automation relative to labor costs However, the unpredictable consequences of automation mean that future costs and benefits remain merely long-term estimates Due to this uncertainty, companies often prioritize short-term gains through immediate cost reductions, such as labor-intensive innovations or processes that promise quick returns (Cushen & Thompson, 2016).
In February 2020, the U.S labor force peaked at 164.6 million, while the U.K labor force reached 32.98 million in November 2019, marking significant milestones in employment trends (USBLS, 2020; ONS, 2020) Analyzing job trends further highlights the dynamics within these labor markets (Spencer & Slater, 2020; Thompson).
A study by Bessen (2016) found that while automation has caused job losses in specific sectors, it has not significantly affected overall employment levels in the U.S Additionally, Graetz and Michaels (2018) noted that digitization has resulted in the loss of lower-skilled jobs; however, it has simultaneously created profits in higher-skilled positions This shift has led to a redistribution of the workforce and an increase in wage inequality, but it has not resulted in a net decrease in jobs overall.
A European study conducted between 1995 and 2015 highlights that information and communication technology (ICT) not only replaces routine repetitive tasks but also enhances creative activities (Lewney et al., 2019) Overall, digitization has significantly automated various processes in our daily lives.
9 have significantly helped with repeatability and standardization, and these processes have particularly helped processes for pay or low-paying jobs (Spencer, 2018)
A systematic review titled "Artificial Intelligence, Robotics, Advanced Technology, and Human Resource Management" highlights that Intelligent Automation technologies present numerous opportunities for enhancing HRM by offering innovative methods for employee management and boosting organizational performance However, the study also identifies significant technical and ethical challenges associated with these advancements (Demetris Vrontis et al., 2021).
From the perspective of Human Resource Management (HRM), understanding AI involves analyzing the specific services and jobs it will affect A relevant theory suggests that AI is likely to replace jobs at the task level rather than the entire job level, focusing on tasks that are repetitive and less complex (Huang & Rust, 2018).
As AI technology evolves, it poses a dual challenge: while it has the potential to replace human jobs and present a threat, it also fosters collaboration between humans and machines, creating opportunities for enhanced synergy This partnership can significantly boost sales and enhance service delivery by offering tailored solutions to customers, ultimately providing more valuable services (Marinova et al., 2017; Singh et al., 2017).
Research on Job Insecurity
A study titled "The Role of Perceived Control in the Relationship between Job Insecurity and Psychosocial Outcomes: Moderator or Mediator?" explores how perceived control influences the connection between job insecurity and psychosocial outcomes Researchers Tinne Vander Elst and Nele highlight the significant impact that perceived control can have on mitigating the negative effects of job insecurity on individuals' mental health and well-being.
De Cuyper, Hans De Witte, 2010)
Job insecurity significantly threatens workers' well-being, leading to heightened anxiety about potential job loss Employment is crucial not only for financial stability but also for social interaction, making its loss particularly distressing (De Witte, 1999; Jahoda, 1982) The stress associated with job insecurity permeates daily life, causing employees to experience constant unease (De Witte, 1999; Jacobson, 1991; Sverke et al., 2002) Consequently, workers may feel psychologically destabilized and struggle to cope in such unpredictable environments, where a lack of control and feelings of incompetence can adversely impact their overall quality of life.
A study conducted by Tinka van Vuuren, Jeroen P de Jong, and Peter G.W Smulders in 2018 examines the connection between subjective job insecurity and job performance across various employment groups, utilizing a representative sample from the Netherlands The findings reveal a significant relationship between perceived job insecurity and the performance levels of employees, highlighting the impact of job security on workplace productivity.
Numerous studies indicate that job insecurity adversely impacts employee performance (Cheng and Chan, 2008; Gilboa et al., 2008; Jiang and Lavayse, 2018; Sverke et al., 2002) According to Shoss (2017), this effect can be understood from two angles First, job insecurity increases stress levels, negatively influencing workers' income, organizational identity, and psychological autonomy, ultimately leading to decreased job performance Second, employees may perceive job insecurity as a psychological breach of contract, resulting in diminished performance as they feel their employer has failed to provide adequate job security (De Cuyper and De Witte, 2005, 2006).
This study aimed to explore the relationship between job insecurity and self-assessed job performance among Dutch workers, revealing a negative correlation between these two variables The findings align with previous research by Cheng and Chan (2008) and Gilboa et al (2008), indicating that job insecurity adversely affects workers' self-evaluation of their performance across different companies.
Workers experiencing anxiety about their job or the company's future may see a decline in their job performance, which can exacerbate feelings of job insecurity This reduced performance not only affects individual output but can also negatively impact overall company results, potentially leading to employee dismissal.
A study by Taewoo Nam (2018) investigates the connections between perceived job insecurity, technology usage, and the anticipated sustainability of jobs in the context of the Fourth Industrial Revolution The research emphasizes how these factors interact and influence individuals' long-term outlook on employment stability amidst rapid technological advancements.
The rapid advancement of technology in recent years presents both new opportunities and significant challenges for workers While innovations can lead to job creation, they also pose a threat to employment, with the potential for widespread job loss According to the World Technology Network (WTN), this phenomenon, termed "creative destruction," occurs when technology replaces existing jobs, often resulting in more job eliminations than anticipated As these technological changes continue to unfold, billions of individuals worldwide are expected to be impacted.
According to Schwab (2016), nearly half of U.S jobs face a significant risk of automation, particularly impacting workers during rapid technological changes The rise of artificial intelligence in the Fourth Industrial Revolution has heightened concerns about job security, with many fearing that automation could lead to the disappearance of current positions Frey and Osborne (2015) highlighted that the risks are particularly pronounced in the manufacturing and service sectors, supporting the notion that we are experiencing an "era of technological unemployment."
As technology continues to advance in factory environments, blue-collar and low-skilled workers face increasing risks to their job security The rapid development of automation and innovative technologies makes it increasingly difficult for these workers to secure alternative employment opportunities.
Job awareness about the long-term future of workers significantly impacts job insecurity, as employees who perceive their jobs as sustainable over the next few decades tend to feel more secure, whereas those who anticipate their jobs becoming obsolete within the same timeframe experience heightened instability and uncertainty about their career prospects.
Recent findings reveal that workers experiencing Job Insecurity are not only concerned about their current positions but also anticipate long-term instability in their careers This sentiment is compounded by a growing belief that automation and robots could potentially replace human jobs, leading to a pessimistic outlook on their professional futures.
Job insecurity among employees poses a significant challenge for organizations, as it can adversely impact overall performance (Cheng and Chan, 2008; Sverke et al., 2002) Research has consistently shown that job insecurity leads to decreased job satisfaction, lower organizational commitment, and diminished job performance Consequently, it is essential for HRM professionals to prioritize strategies aimed at alleviating workers' job insecurity.
A recent study highlights that job insecurity decreases when employment relies on interpersonal relationships As the Fourth Industrial Revolution progresses, many jobs, particularly those that lack creative thinking and interpersonal interaction, such as telemarketers and postal workers, are at risk of automation (Handel, 2012) However, roles that emphasize communication and relationship-building are likely to thrive in the future (World Economic Forum, 2016) Consequently, companies must adapt by integrating technology and redefining worker roles, rather than simply replacing human employees with machines.
A recent study titled "Job Insecurity and the Changing Workplace: Recent Developments and Future Trends in Job Insecurity Research" by Cynthia Lee, Guo-Hua Huang, and Susan J Ashford (2018) enhances our understanding of job insecurity in the evolving work environment.
Research on Employee Well-being
One study focuses on ―The impact of automation and artificial intelligence on worker well-being.‖ and investigates the relationship between automation and Employee Well-being (Luísa Nazareno, Daniel S Schiff, 2021)
Automation, including AI, has important features that make it possible to do tasks that only workers thought could be done on a computer, and furthermore, its potential is great
A recent study indicates that while automation can alleviate stress and improve workers' health, it does not necessarily enhance job satisfaction The reduction in stress is attributed to the minimization of repetitive and tedious tasks, but this benefit has its limits, as automation cannot fully replace creative or complex work Consequently, while automation simplifies certain aspects of work, it does not provide a comprehensive solution to all stressors in the workplace.
For workers, including health, welfare is a very important social issue, but it is overlooked in discussions about automation, artificial intelligence, and the future of labor
A study by Tinne Vander Elst et al (2012) examines the mediating role of psychological needs frustration in the connection between job insecurity and work-related well-being The findings reveal a significant relationship between job insecurity and overall employee well-being, highlighting the importance of addressing psychological needs to improve workplace satisfaction.
Job insecurity significantly impacts workers and organizations by inducing stress and diminishing well-being It leads to reduced work engagement, increased mental and physical strain, and lower job satisfaction Consequently, this insecurity undermines employees' commitment, negatively affecting both individual performance and overall organizational effectiveness (Cheng & Chan, 2008; Probst, 2008; Sverke et al., 2002).
The study highlights that job insecurity leads to increased stress and diminished work-related happiness, as employees' psychological needs—such as autonomy, belonging, and competence—are not met This emotional strain results in a loss of vitality within the organization, illustrating the detrimental effects of job insecurity on workers.
A study titled "The Job Insecurity Scale: A Psychometric Evaluation Across Five European Countries" examines the connection between job insecurity and psychometric evaluation Conducted by Tinne Vander Elst, Hans De Witte, and Nele De Cuyper in 2014, the research highlights the significant impact of job insecurity on psychological well-being across diverse European contexts.
Anxiety over potential job loss significantly impacts employee well-being, as it diminishes their sense of control in uncertain situations Furthermore, when workers perceive themselves as incompetent, they often believe they cannot continue with their current employer, increasing the likelihood of seeking opportunities elsewhere or transitioning to a different field.
Job insecurity significantly impacts workers' organizational commitment and performance evaluations, with varied effects on health across different countries Studies indicate that while job insecurity negatively affects health in Dutch, Spanish, and British workers, this effect is not as pronounced in Belgian and Swedish samples Overall, job insecurity is more strongly linked to employees' commitment and performance within their organizations (Cheng & Chan, 2008; Sverke et al., 2002).
The study by Zheng et al (2015) investigates Employee Well-being (EWB) within organizations, presenting a theoretical model and developing a scale for its measurement It emphasizes the structural dimensions of EWB and examines the relationship between EWB and Employee Performance, highlighting the importance of fostering well-being to enhance organizational productivity.
This study explores the implications of Employee Well-Being (EWB), emphasizing its role in enabling employees to monitor and enhance their own well-being as a diagnostic tool for improving job performance Effectively managing and enhancing job performance is crucial for organizational success and contributes significantly to individual career growth and self-development The findings indicate that EWB has a positive impact on worker performance, encouraging employees to prioritize their well-being.
19 again and also take necessary steps to achieve better well-being, which can eventually have a positive effect on the company's job performance
The study categorizes Employee Well-being (EWB) into three dimensions: Living Well-being (LWB), Work Well-being (WWB), and Psychological Well-being (PWB) By utilizing these categories, companies can effectively measure and manage EWB, allowing managers to gain insights into their employees' well-being levels This proactive approach not only enhances labor-management relations but also contributes positively to employees' lives Organizations like Microsoft Research Asia in China exemplify how implementing well-being programs can lead to sustainable improvements in workers' EWB and overall quality of life.
This study highlights the importance of sustainable human resource management (HRM) focused on workers' well-being, demonstrating its positive impact on both employee performance and overall company success By providing insights into the actual working lives of employees, the findings can guide state policies aimed at fostering a harmonious labor market and enhancing societal well-being for workers.
[Table 2-3] Summary of Employee Well-being Research
Automation and AI technology alleviate stress by minimizing repetitive and simple tasks; however, they cannot fully eliminate stress as creative and complex tasks remain irreplaceable It is essential to address workers' health and welfare as significant social issues in the context of automation and AI discussions.
Job insecurity significantly impacts both individual and organizational performance by diminishing employee well-being, commitment to work, job satisfaction, and overall organizational loyalty This decline is primarily driven by the stress associated with job insecurity, which hinders the fulfillment of essential psychological needs such as autonomy, belonging, and competence.
Job insecurity has a detrimental impact on employees' well-being, organizational commitment, and work performance, with varying health effects across different countries In the Netherlands, Spain, and the United Kingdom, job insecurity correlates negatively with these factors, while Belgium and Sweden show no significant impact This indicates that job insecurity is more strongly linked to workers' commitment and performance levels.
Employee well-being (EWB) plays a crucial role in enhancing immersion, concentration, and productivity in the workplace It encompasses three key components: life well-being (LWB), work well-being (WWB), and psychological well-being Fostering a healthy work environment that addresses these aspects can significantly boost overall employee performance and satisfaction.
Research on Employee Performance
A study by Uttara Jangbahadur and Vandna Sharma (2017) investigates the theoretical implications of Employee Development (ED) within organizations, aiming to uncover the relationships between ED, Human Resource Management (HRM), and Employee Performance.
Human capital theory emphasizes that effective HRM practices are crucial for achieving sustainable, long-term results By implementing appropriate HRM strategies, organizations can enhance employee job satisfaction, boost commitment, and improve skills, motivation, and overall competence among workers.
Competitive advantages over competition are achieved through strategically designed training programs that are considered essential in most organizations (Barney,
Numerous organizations implement training and development programs to enhance both individual and organizational performance (Brown, 2005) Research by Pfeffer, Hatano, and Santalainen (1995) highlights that engagement and empowerment play crucial roles in boosting employee performance and positively influencing the work environment Furthermore, management's transparency regarding performance goals fosters greater employee commitment (Peccei, Bewley, Gospel & Willman, 2003) Consequently, these practices are integral to the capacity development of employees, suggesting a strong link between HRM practices and employee development (ED).
The HRM program focuses on enhancing managerial skills through education, coaching, engagement, empowerment, and delegation By assigning individual or team tasks, it equips managers with essential leadership capabilities, ultimately leading to improved job performance (Hamilton & Bean, 2005).
The company's focus on self-development aims to enhance employees' career skills by boosting productivity and equipping them with the capability to effectively tackle work-related challenges.
According to Kinicki, Carson, and Bohlander (1992), effective career development enhances job satisfaction and deepens employee engagement, as supported by Colarelli and Bishop (1990) This research suggests that an organization's development programs aim to boost employees' knowledge and skills, fostering greater job satisfaction and engagement, which ultimately leads to improved company performance and reduced long-term turnover rates.
A recent study by Komal Khalid and Samina Nawa examines the impact of various employee participation types—delegative, consultative, worker director, and worker union—on employee retention The research highlights how employee compensation moderates this relationship, suggesting that effective participation strategies can enhance retention when coupled with appropriate compensation.
Empowering employees through free participation fosters innovation and helps companies gain a competitive edge by harnessing new ideas (Yukl, 2010) Additionally, non-financial incentives like delegation of authority enhance employee motivation, leading to increased productivity and longer work engagement (Sajjad, 2011).
High employee turnover can hinder a company's ability to achieve its goals, making it essential to retain skilled workers Implementing effective retention strategies not only reduces turnover costs but also minimizes recruitment and training expenses Additionally, these efforts help preserve the company's valuable talent, ensuring a more stable and productive workforce.
Bhatnagar (2007) highlights that increased worker participation correlates with higher retention and productivity levels within a company To enhance these outcomes, management should implement practices that encourage active employee involvement and offer suitable compensation for extended hours based on employee needs Recognizing the value of their workforce, companies can benefit significantly by developing innovative engagement strategies focused on their top performers and providing diverse compensation options, ultimately aiding in the achievement of organizational goals.
The other study focuses on ―Influence of learning and working climate on the retention of talented employees‖ and discovers the relationship between employee
22 development and employee retention (Natalie Govaerts, Eva Kyndt, Filip Dochy, Herman Baert, 2020)
Employees are less likely to leave a company when they feel they are learning, growing, and actively participating Conversely, feelings of stagnation and a lack of presence can drive them to seek opportunities elsewhere Establishing clear working rules and fostering a culture of learning and participation significantly boosts employee motivation If companies create an environment that allows workers to focus on and enhance their strengths, they can encourage retention and commitment By promoting development opportunities and supporting employees in their growth, organizations can ensure that their workforce remains engaged and contributes positively to the company.
[Table 2-4] Summary of Employee Performance Research
Effective Human Resource Management (HRM) implementation is integral to developing employee competencies Key HRM practices, including systematic training, information sharing, and authority delegation, enhance job satisfaction, engagement, and skill development, ultimately boosting performance Furthermore, providing career development support fosters long-term employee growth and strengthens organizational commitment Consequently, HRM implementation plays a vital role in enhancing both individual and organizational performance through focused employee development.
The leadership development program focuses on enhancing managerial competence, ultimately boosting work performance This highlights the strong connection between human resource management and employee development, which plays a crucial role in increasing organizational competitiveness.
Free participation and delegation of authority by employees helps to achieve corporate goals and enhance competitiveness through the creation of new ideas In addition, delegation of authority and
Capacity building through non-monetary motivational strategies can significantly enhance employee retention, which is crucial for achieving corporate objectives High turnover rates can impede a company's success, making it essential to focus on fostering long-term commitment from skilled personnel By increasing employee participation and offering suitable compensation, organizations can improve both turnover rates and productivity Ultimately, these efforts help retain top talent and drive the attainment of corporate goals.
To reduce employee turnover, it is crucial for companies to foster an environment where employees feel they can continuously learn, grow, and engage When growth opportunities are limited and employees feel disconnected, they are more likely to seek new job prospects By establishing clear work rules, procedures, and offering avenues for learning and participation, organizations can significantly enhance employee motivation Conversely, a lack of such an environment may lead to increased job changes Ultimately, companies can minimize turnover and encourage greater contributions by focusing on the development of employees' strengths.
Research on Sustainable Human Resource Management
Sustainable Human Resource Management (SHRM) has evolved from traditional strategic HRM, which primarily focuses on achieving business goals In contrast, SHRM encompasses a broader spectrum of organizational objectives, emphasizing the integration of sustainability into HR practices This approach establishes a crucial link between conventional HRM and sustainability, aligning with corporate environmental, social, and governance (ESG) initiatives Ultimately, SHRM aims to achieve long-term economic, human, and environmental outcomes simultaneously, fostering a more responsible and sustainable organizational framework.
2030 Agenda for Sustainable Development sets Sustainable Development Goals and provides strategies, goals, activities, and management practices that human resource practitioners can be applied to sustainability outcomes (Robin Kramar, 2022)
One study focuses on ―Current thinking on contemporary careers: the key roles of Sustainable HRM and sustainability of careers‖ and approaches the sustainability of careers,
24 departing from contemporary views on Sustainable Human Resource Management (HRM) and key concepts in the current career literature (Ans De Vos, Beatrice IJM Van der Heijden,
The continuity of employment is crucial for individual career development, enhances overall company performance, and contributes to the effective functioning of the labor market, as highlighted by Baruch et al (2015, 2016) and Greenhaus et al.
Sustainable HRM plays a vital role in the career development and fulfillment of employees, a concept rooted in the Brundtland report and evolving into an important discussion on job continuity (World Commission on Environment and Development, 1987) A career is characterized as a progression of professional experiences that develop over time (Arthur, Hall, and Lawrence, 1989) This progression is significant not only for individual workers but also for organizations striving to achieve sustainable outcomes (De Lange AH et al., 2015).
A sustainable career for workers aligns with their life values, contributing to personal and family satisfaction It meets their economic needs while promoting psychological well-being and stability Additionally, it offers flexibility and opportunities for skill development, allowing individuals to adapt to evolving interests and requirements Ultimately, a sustainable career fosters continuous learning and skill enhancement, enabling workers to remain competitive and extend their professional longevity.
A recent study by Diaz-Carrion, López-Fernández, and Romero-Fernandez (2020) explores Sustainable Human Resource Management (HRM) and its impact on employee engagement The researchers developed a comprehensive measurement instrument designed to systematically assess Sustainable HRM systems, providing valuable insights into the relationship between sustainable practices and employee involvement.
To maximize the benefits of corporate social responsibility (CSR), companies should incorporate activities focused on their employees Implementing Socially Responsible Human Resource Management (SR-HRM) is a key CSR initiative that enhances workers' job satisfaction and overall quality of life This proactive approach to HRM is essential for meeting the expectations of various stakeholders and is recognized as a fundamental aspect of sustainable business practices (Aust, Muller-Camen, Poutsma, 2018).
25 workers' needs and contributing to the improvement of the company's image (Sen, Benson,
Incorporating Strategic Human Resource Management (SR-HRM) enhances employee engagement and strengthens psychological contracts between the organization and its workforce (Farrukh et al., 2019) This approach not only increases employee tenure but also helps the company reduce HR management costs, fostering a sustainable environment for long-term success (Barrena-Martínez et al., 2019) Additionally, by fulfilling its responsibilities to internal employees, the organization can secure legitimacy with external stakeholders, including government entities and the broader community (Jamali et al., 2015).
Another study focuses on ―Sustainable Human Resource Management: six defining characteristics‖ and identifies six characteristics of Sustainable HRM which explain the divergence with Strategic HRM (Robin Kramar, 2022)
Employment potential refers to an employee's ability to secure and generate income both within and outside their current organization (Berntson, Sverke, and Marklund, 2006) In today's dynamic environment, companies face challenges in guaranteeing job security; however, they can enhance workers' skills by providing developmental opportunities (O'Donogue, Maguire, 2005) Continuous investment in employee skill development is crucial, as engaged employees contribute positively to overall company performance (De Cuyper, De Witte, 2005).
The concept of 'employment potential' encompasses several paradoxes that companies face First, organizations must efficiently utilize their workforce while also ensuring that employees are valuable assets sought after by other firms Second, while maximizing productivity, companies should allow workers to engage deeply in their roles to achieve high performance Additionally, although it is crucial to cultivate high-performing employees who contribute significantly to the organization, the risk of turnover among these talented individuals can lead to financial losses However, research suggests that these paradoxes may be reconciled through a holistic approach, indicating that 'employment potential' can create a win-win situation for both workers and companies, fostering psychological well-being and job security for employees.
26 future through job safety, and companies can improve their performance by helping them become immersed (De Cuyper and De Witte 2011)
A recent study titled "Sustainable HRM, Training for Employability, and Organizational Outcomes: The Moderating Role of Competitive Intensity" explores the intersection of Sustainable Human Resource Management (HRM) and employability The research investigates how sustainability-focused HR practices influence organizational outcomes, highlighting the importance of competitive intensity in this relationship (Mattia Martini, Egidio Riva, Elisabetta Marafioti, 2023).
From a sustainability perspective, companies support the employability of workers to create value for both the company and its workers (Aust et al., 2020; Ybema et al., 2020;
De Prins et al., 2014) To do this, companies must respond to multifaceted career development needs to meet the expectations of companies and workers (Bonfiglioli et al.,
In today's competitive labor market, companies should view employability as an investment, focusing on developing employee competencies that extend beyond specific jobs and organizational limits By enhancing workers' skills and capabilities, businesses can significantly improve their workforce's marketability and adaptability (De Vos and Van der Heijden, 2017).
Investing in worker employability is essential for enhancing company performance and improving labor market conditions, such as functional flexibility, job stability, and overall well-being This investment not only boosts the appeal of both workers and companies within society but also increases the likelihood that skilled employees may seek opportunities elsewhere as their capabilities grow It is crucial to address the potential conflicts arising from these positive yet paradoxical outcomes.
2020), it may make companies hesitate to actively invest in employability (Zhang et al., 2015)
Companies must adopt a comprehensive approach to investing in employability from a sustainability perspective, as highlighted by Ybema et al (2020) By fostering an environment that supports training, organizations can help workers develop skills that enhance their value in both internal and external labor markets (Hirsig et al., 2014) Implementing employability training through Sustainable HRM practices not only addresses the essential needs of the company and its employees but also boosts the chances of securing internal and external job opportunities This internal training enables employees to excel in their current roles while becoming competitive candidates for future sustainable careers Ultimately, such structured training enhances employee capabilities, leading to improved overall company performance (Arocena et al., 2009; Ybema et al., 2020).
According to exchange theory, companies that invest in their employees foster loyalty, which positively influences organizational performance (Cropanzano and Mitchell, 2005) By enhancing employability, businesses can expect a return in the form of increased productivity and commitment from their workforce, ultimately yielding greater value than the initial investment (De Cuyper and DeWitte, 2011).
Investing in employee employability enhances workers' skills, leading to greater job satisfaction and a willingness to commit to longer hours in appreciation of the company's support for their professional growth.