Effectiveness of human resource management practices in small and medium enterprises in thai nguyen province

So, understanding the effect of Human Resource Management practices on organizational performance may help many small and medium enterprises in Thai Nguyen province increase their organi

EFFECTIVENESS OF HUMAN RESOURCE MANAGEMENT PRACTICES IN SMALL AND MEDIUM ENTERPRISES

IN THAI NGUYEN PROVINCE

A DISSERTATION PAPER

Presented to School of Graduate Studies Central Philippine University, Philippines

In Collaboration with Thai Nguyen University, Vietnam

ACKNOWLEDGMENT

This dissertation has been conducted in the Doctoral Program in Business Management in the framework of academic cooperation between Central Philippine University and Thai Nguyen University During the period of writing my dissertation, I have gained the precious knowledge for my job as well as my scientific research works

First and foremost, I would like to express my sincere appreciation to my supervisors Prof Lee Song Kun and Assoc Prof Dr Do Anh Tai for giving me considerable time and guiding me enthusiastically through the completion of this research

I would like to express my gratitude to officials who freely gave me their time for the interviews The interviews that were granted to me at the enterprises with managers that provided managers' perspective to the purpose of this study I am very thankful to Officials of Thai Nguyen province for providing me number of secondary information and much help to the interviews at the agencies

I would like to thank to all of my professors of the Doctor Program in Business Management, managers and staffs of International Cooperation Center for Training and Study Abroad for their enthusiastic help in my research and dissertation

I also would like to thank my interview partners who conducted the survey with

me I would like to mention all of my colleagues who encouraged me to do the dissertation

Last but not least, I specially would like to give inmost thanks to my family who always encouraged and helped me through the time doing the dissertation

Thai Nguyen, June 2020

Pham Thi Thanh Phuong

LỜI CẢM ƠN

Luận án này được thực hiện trong khuôn khổ hợp Chương trình hợp tác học thuật giữa Đại học Cetral Philippines và Đại học Kinh tế và Quản trị Kinh doanh, Đại học Thái Nguyên Trong thời gian viết luận văn, tôi đã có được nhiều kiến thức quý giá cho công việc cũng như các công trình nghiên cứu khoa học của tôi

Đầu tiên, tôi muốn bày tỏ sự cảm ơn chân thành của tôi đến Giáo sư Lee Song Kun

và Phó giáo sư, Tiến sĩ Đỗ Anh Tài đã dành thời gian hướng dẫn tôi rất nhiệt tình trong quá trình hoàn thành nghiên cứu này

Tôi muốn bày tỏ lòng biết ơn đến lãnh đạo, nhân viên công tác tại các cơ quan, ban ngành, doanh nghiệp tỉnh Thái Nguyên đã dành thời gian cung cấp cho tôi thông tin thứ cấp Các nhà quản lý đã cung cấp những quan điểm của nhà quản lý cho mục đích của nghiên cứu này

Tôi xin cảm ơn tất cả các giảng viên, chuyên gia của Chương trình đào tạo về Quản trị kinh doanh, các lãnh đạo và nhân viên của Trung tâm Hợp tác Đào tạo Quốc tế vì

sự giúp đỡ nhiệt tình của họ trong nghiên cứu luận án của tôi

Tôi cũng muốn cảm ơn các đối tác phỏng vấn đã thực hiện khảo sát với tôi

Tôi muốn gửi lời cảm ơn đến tất cả các đồng nghiệp đã khuyến khích động viên tôi trong suốt quá trình học tập cũng như làm luận án này

Cuối cùng nhưng không kém phần quan trọng, tôi đặc biệt muốn gửi lời cảm ơn sâu sắc đến gia đình tôi, những người luôn khuyến khích và giúp đỡ tôi trong suốt thời gian làm luận án

Thái Nguyên, tháng 6 năm 2020

Phạm Thị Thanh Phương

LỜI CAM ĐOAN

Tôi xin cam đoan rằng, các số liệu và kết quả nghiên cứu trong luận án này là trung thực và chưa được sử dụng để công bố cho bất kỳ một nghiên cứu nào khác

Tôi xin cam đoan rằng, mọi sự giúp đỡ cho việc thực hiện luận án đã được cảm ơn

và các thông tin trích dẫn trong luận án đều được chỉ rõ nguồn gốc

Thái Nguyên, tháng 6 năm 2020

Tác giả luận án

Phạm Thị Thanh Phương

TABLE OF CONTENTS

ACKNOWLEDGMENT i

LỜI CẢM ƠN ii

COMMITMENT iii

LỜI CAM ĐOAN iv

TABLE OF CONTENTS v

LIST OF TABLES vii

LIST OF FIGURES ix

ABSTRACT x

CHAPTER 1 THE PROBLEM AND ITS SETTING 1

1.1 Background and Rationale of the Study 1

1.2 Objectives 4

1.3 Hypotheses 5

1.4 Theoretical Framework 6

1.4.1 Human Resources (HR) and Human Resource Management (HRM) 6

1.4.2 The model of human resource management and performance 7

1.5 Conceptual Framework 9

1.6 The operational definitions 12

1.6.1 The definition of HRM practices 12

1.6.2 HRM outcomes variables 14

1.6.3 Organizational Performance 14

1.6.4 Effectiveness of Human Resource Management Practice 15

1.7 Scope and Limitation 17

1.8 Significance of the Study 17

CHAPTER 2 REVIEW OF RELATED LITERATURE AND STUDIES 19

2.1 Related Literature 19

2.1.1 Definitions of SMEs 19

2.1.2 Human resource management 21

2.1.3 Organizational performance of enterprises and relationship with HRM 30

2.2 Related Studies 33

CHAPTER 3 METHODOLOGY 39

3.1 Research Design 39

3.2 Population, Sample Size and Sampling Techniques 41

3.3 Research Instrument 42

3.4 Data Gathering Procedure 46

3.4.1 Secondary data 46

3.4.2 Primary data 46

3.5 Pilot Test 46

CHAPTER 4 DATA PRESENTATION, ANALYSIS AND INTERPRETATION 50 4.1 The profile of the respondents 50

4.2 The Method of Data Analysis 51

4.3 Scale Purifications 52

4.3.1 Item Purification for Recruitment and Selection Scale 52

4.3.3 Item Purification for Training and Developing Scale 55

4.3.4 Item Purification for Job Evaluation Scale 56

4.3.5 Item Purification for Employee Commitment Scale 57

4.3.6 Item Purification for Organizational Performance Scale 58

4.3.7 Scale Reliability 60

4.4 Measurement Model 60

4.5 Hypothesis Testing 66

4.6 Summary of Hypothesis Testing 70

4.7 Evaluate the effectiveness of Human Resource Management 72

4.7.1 Effectiveness of Recruitment and Selection 72

4.7.2 Effectiveness of Salary and Welfare 73

4.7.3 Effectiveness of Training and Development 74

4.7.4 Effectiveness of Job Evaluation 75

4.7.5 Effectiveness of Employee Commitment 76

4.7.6 Effectiveness of Organizational Performance 77

CHAPTER 5 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 79 REFERENCES 94

APPENDIX 100

LIST OF TABLES

Table 2.1: Classification of enterprises by total capital and number of laborers in

VietNam 21

Table 2.2: Outcome of research on the link between HR and oragnizational performance 34 Table 3.1 The Sampling Tecknique by type of enterprise 41

Table 3.2 Items used for Measuring Variables 42

Table 3.3 The Scale and Standard to Evaluate the Effectiveness of Human Resource Management Practice 44

Table 3.3 The Criteria to Evaluate the Effectiveness of Human Resource Management Practice 44

Table 3.4 The EFA Results for Pilot Test 47

Table 4.1 Frequency and Percentage Distribution of the Respondents in Terms of the Business Organization Affiliated With 50

Table 4.2 Characteristics of Sample 51

Table 4.3 Values of Cronbach’s Alpha 51

Table 4.4 Descriptive Statistics of Recruitment and Selection Scale 52

Table 4.5 Item Purification for Recruitment and Selection Scale 53

Table 4.6 The Descriptive Statistic Results of Salary and Welfare Scale 54

Table 4.7 Item Purification for Salary and Welfare Scale 54

Table 4.8 The Descriptive Statistic Results of Training and Developing Scale 55

Table 4.9 Item Purification for Training and Developing Scale 56

Table 4.10 The Descriptive Statistic Results of Job Evaluation Scale 56

Table 4.11 Item Purification for Job Evaluation Scale 57

Table 4.12 The Descriptive Statistic Results of Employee Commitment Scale 57

Table 4.13 Item Purification for Employee Commitment Scale 58

Table 4.14 The Descriptive Statistic Results of Organizational Performance Scale 59

Table 4.15 Item Purification for Organizational Performance Scale 59

Table 4.16 Scale Reliability 60

Table 4.17 Measurement Model Results for Recruitment and Selection Scale 61

Table 4.18 Measurement Model Results for Salary and Welfare Scale 62

Table 4.19 Measurement Model Results for Training and Development Scale 62

Table 4.20 Measurement Model Results for Job Evaluation Scale 63

Table 4.21 Measurement Model Results for Employee Commitment Scale 63

Table 4.22 Measurement Model Results for Organizational Performance Scale 64

Table 4.23 Measurement Model Results 65

Table 4.24 Construct Correlation Matrix 66

Table 4.25 The Regression Values from Structural Equation Modeling 69

.Table 4.26 Results of hypothesis 71

Table 4.27 The effectiveness of Recruitment and Selection 72

Table 4.28 The effectiveness of Salary and Welfare 73

Table 4.29 The effectiveness of Training and Development 74

Table 4.30 The effectiveness of Job Evaluation 75

Table 4.31 The effectiveness of Employee Commitment 76

Table 4.32 The effectiveness of Organizational Performance 77

LIST OF FIGURES

Figure 1.1: The Human Resource Cycle 7

Figure 1.2: The relationship between strategic HRM and performance 8

Figure 1.3: HRM - performance linkage model 8

Figure: 1.4: HRM activities, HRM outcomes and performance 9

Figure 1.5: Research Paradigm 10

Figure 1.6: Research Model 11

Figure 3.1 The Research Procedure 40

Figure 4.1 Structural Equation Modeling for Research Model 70

ABSTRACT

Many small and medium enterprises in Thai Nguyen province face with difficulty that the ineffectiveness of human resource management is low It's very hard to complete the creation incentives for employees to be able to attract and retain talented people who can help organization to compete and win in the dynamic and constantly changing market economy So, understanding the effect of Human Resource Management practices on organizational performance may help many small and medium enterprises in Thai Nguyen province increase their organizational performance

The general objective of this study is to analyze the impact of human resource management practices to the performance of small and medium enterprises in Thai Nguyen province, to find solutions to improve performance by helping small and medium enterprises overcome the limitations in human resource management and improve the quality of human resources This study attempted to examine the effectiveness of Human Resource Management practices in Thai Nguyen SMEs Research on Human Resource Management practices and their outcomes such as commitment and organizational performance have rarely been conducted in SMEs in Thai Nguyen Data were collected on managers’ perceptions about Human Resource Management practices and their outcomes, organizational performance through structured questionnaire Sample consisted of 400 managers or people in managerial board who are working in Thai Nguyen SMEs Multiple Regression, Cronbach alpha, Pearson correlation coefficient and descriptive statistics, EFA and SEM were used for various analyzes of this study The findings of the research revealed that Human Resource Management practices are significant predictors of organizational performance

This study contributed to the theoretical knowledge about Human Resource Management practices as an important factor affecting employee’s commitment and organizational performance The study also offers some useful managerial implications for SMEs to improve human resource quality The results from data analysis show that four factors of human resource management (welfare and salary, training and developing, recruitment and selection, job evaluation) affect employee’s commitment, and in turn, employees’ commitment affect organizational performance The results from data analysis also show that employees evaluate the effectiveness of recruitment and selection, welfare and salary, training and development and job evaluation at average level It means that these activities need to be improved

From the research results, this study proposed several managerial recommendations for managerial boards in small and medium enterprises in Thai Nguyen province These recommendations may help managers in small and medium enterprises to improve employees’ satisfaction and employees engage more on commitment working for company From high level of commitment, the organizational performance will be improved.

CHAPTER 1 THE PROBLEM AND ITS SETTING

1.1 Background and Rationale of the Study

According to Esra Nemli Caliskan (Journal of Naval science and Engineering), “the human resource management function has consistently faced a battle in justifying its position in organizations At good times when there are enough budgets, firms easily justify expenditures on training, staffing, rewards and employee involvement systems, but when faced with financial difficulties, such human resource systems get the earliest cutbacks” Therefore, in any circumstances, human resource management will bring business performance for businesses; help to create a competitive advantage for them

Human resource is considered "endogenous" dominant economic development - society in general and business performance in particular According to economic experts, the trend of international economic integration and world context is more volatile than the victory will belong to the nation; these companies have high-quality human resources For Vietnam, to promote industrialization, modernization and international economic integration, Vietnam needs a large force of highly qualified personnel, which is able to work in the development of environmental technologies and compete Therefore, development of human resources quality, high professional level, especially with the ability to adapt quickly to rapid changes in science and technology is a key factor ensuring the economy Vietnam development towards modernization and sustainability

Therefore, human resource is the core factor determining the success of small and medium enterprises Human resource is one of competitive factors helping businesses effectively manage other resources, such as finance and other resources Small and medium-sized enterprises in Vietnam are types of enterprises (companies) majority and play an important role in creating jobs and increasing incomes for workers, help mobilize social resources for the first development, poverty reduction

However, SME owners who set up and operate the business are often engineers or technicians themselves They have a manager, has engaged directly in production and the level of expertise in the management of enterprises is not high In addition, most SME owners are not involved in management training formal, they have insufficient knowledge

of enterprise management; only management experience and subjective opinion Most Vietnam enterprises are small, weak financial health, lack of strategic and long-term

vision, which leads that the attention and investment to human resources and employees have not been focused on business leaders Meanwhile, in many countries around the world, workers are always regarded as the most important factor contributing to the development of the company and position In fact, the successful businesses having a staff

of high and particular qualifications have a common point that employees are very satisfied with the working environment, as well as the position of processing enterprises remuneration they receive This makes for loyal employees, efforts to contribute to the enterprise and the country, in which Japan is one of the most obvious examples

In the trend of strong growth of the world economy in general and Vietnam in particular, SMEs play an increasingly important role in the economy SMEs create more and more jobs, mobilize more funds in residential as well as contribution to GDP growth in the country However, in the increasingly fierce competition, SMEs need to invest more attention to human resources to create competitive advantages for companies These companies need to drive improvements in business management mechanism, always uphold the human factor in the organization and improve the effectiveness of human resource management further with view to improving productivity and competing capability

Thai Nguyen is a province located in the Northern Midlands and Mountains region

- one of the regional economic and cultural centers, having many comparative advantages

in geographical location, favorable climate, mineral resources, and talents This creates favorable conditions for small and medium enterprises development Small and Medium Enterprises (SMEs) in Thai Nguyen province have developed strongly and contributed to create employments, increased GDP, and raised the nation’s volume of exports However, SMEs have found difficulties on the way to develop due to lack of management experience and human resources, and due to uncertainty within the business environment As a result, SMEs often faced obstacles during their operations

There are around 2034 small and medium enterprises in Thai Nguyen province The development of SMEs in Thai Nguyen province in recent years has contributed to creating an industrial production value increase over the years In particular, in 2010, the total value of industrial production of the whole province (at constant prices in 2010) was VND 24,902.3 billion, in 2017 it was VND 571,424.8 billion, up 18.9% compared to the 2016 estimate ( 23 times higher than 2010) and the industrial production growth rate through the period of 2006 -

2010 reached 15.45% / year, 2011 - 2016 reached 76% / year and the average of 11 years from

2006 to 2016 reached 46 %/year In addition, the development of SMEs in the province has created jobs for 15,703 workers, contributing to stabilizing and ensuring social security [Statistical Yearbook of Thai Nguyen, from 2010- 2018]

Although there have been many policies to support businesses, but in the process of operation, small and medium enterprises still face difficulties such as: Outdated technology; lack of ground; Business capital is limited Some businesses have a demand for bank loans to serve production and business activities but still have difficulty in accessing capital The reason is that the financial information of some enterprises lacks transparency and does not fully reflect the situation of production and business, causing difficulties in the loan appraisal process Assets do not guarantee enough for loans, management levels and operating capacity are low, production and business activities are fragmented, there is no in-depth investment However, the biggest obstacle is currently Now, for small and medium-sized enterprises, they have to compete with imported goods domestically Besides, the "landing" of foreign-invested enterprises in the province will make small and medium-sized enterprises face more intense competition in terms of product structure and price With more limited management capacity and potential, the market loss will be what SMEs fear However, the weakness of human resource management is the big problem with SMEs in Thai Nguyen province

Human resource management in these units is quite limited From planning, recruitment, arrangement and arrangement of personnel in enterprises, there are still many weaknesses These weaknesses affect the business performance of the company Labor productivity is low and the level of employee attachment to enterprises is quite limited According to the author's preliminary survey, 70% of small and medium enterprises in Thai Nguyen province have difficulty in human resource management, of which 35% think

it is difficult for employees to switch jobs About 25% of small and medium enterprises have difficulty in recruiting issues These issues has affected production and business results of small and medium enterprises [Statistical Yearbook of Thai Nguyen, from 2010- 2018]

There are some studies about human resource management The dissertation of author Mai Van Luong (2019) about human resource management at Bank for Investment and Development of Vietnam, the author has analyzed the human resource management practice in a bank In the dissertation of Nguyen Thanh Binh (2007) about improving the

management of Vietnam's aviation human resources by 2015, the author has analyze the status of human resource management of Aviation Industry in Vietnam.

Up to date, there is no research study on the effectiveness of human resource management practices on organizational performance of the enterprises in Thai Nguyen province Therefore, the dissertation provides descriptive findings of human management practices and organizational performance in SMEs in Thai Nguyen province The study aims at finding solutions to help small and medium enterprises in Thai Nguyen province develop quality human resource and enhance organizational performance

1.2 Objectives

General objective:

The general objective of this study is to analyze the effect of human resource management practice on human resource management outcomes and organizational performance, and also analyze the effectiveness of human resource practice in small and medium enterprises in Thai Nguyen province

In solving the research problem, this study has the specific objectives:

- To study and clarify the effect of the human resource management practices (Recruitment and selection, Salary and welfare, Job Evaluation, Training and developing)

on human resource outcomes in employee’s perspective (Employee’s Commitment) of small and medium enterprises in Thai Nguyen province

- To study the effect of human resource outcomes (Employee’s Commitment) on organizational performance of small and medium enterprises in Thai Nguyen province according to employee’s perspective

- To assess the effectiveness of human resource management practices in small and medium enterprises in Thai Nguyen province

- To propose some recommendations and policies to improve the human resource management practices and to increase the organizational performance of small and medium enterprises in Thai Nguyen province

1.3 Hypotheses

With view to analyzing the effectiveness of human resource management practices

to organizational performance in small and medium enterprises in Thai Nguyen province, the following hypotheses will be tested:

The quality of recruitment and selection will lead to the good satisfaction of employees and then employees will engage more on commitment to work for company Therefore, the following hypothesis will be proposed:

Hypothesis 1: Recruitment and selection is positively related to the commitment of

human resource (employee’s commitment) in small and medium enterprises in Thai Nguyen province The higher quality of recruitment and selection, the higher commitment

of human resource is

When employees feel satisfied with salary, they will think to work for company for long time and engage more on commitment to contribute their ability to company Therefore:

Hypothesis 2: Salary and welfare is positively related to the commitment of human

resource in small and medium enterprises in Thai Nguyen province The higher quality of Salary and welfare policy, the higher commitment of human resource is

If company evaluate properly the performance of employees and pay the salary suitable with contribution of employees, they may feel satisfied and engage more on commitment to work for company Therefore:

Hypothesis 3: Job Evaluation is positively related to commitment of human

resource in small and medium enterprises in Thai Nguyen province The higher quality of Job Evaluation, the higher commitment of human resource is

If company has proper training programs for employees to improve their ability, they may feel more satisfied with their job and also commit to work for company for long time

Hypothesis 4: Training and developing is positively related to commitment of

human resource in small and medium enterprises in Thai Nguyen province The higher quality of Training and developing policy, the higher commitment of human resource is

When employees engage more on commitment, they seem to work for company for long time They also want to contribute their ability for the development of company Therefore, the performance of company will be increased The high level of commitment leads to the higher organizational outcomes The desire of human resource practitioners to show the value of what they do for the whole organization is of long standing: even Drucker (1954) emphasized that personnel management are worried “about their inability

to prove that they are making a contribution to the enterprise” The presenting HRM as a new approach to personnel management has provided an opportunity to contradict to repeated criticisms that human resources do not add value to the organization Emphasizing strategic contribution, closer alignment to business, the involvement of line management and focusing on employee involvement provided assumptions and expectations that HRM contributes to a range of positive organizational outcomes Therefore, the researchers have become active carrying out empirical research aimed at providing evidence that HRM results in higher organizational performance Therefore, the following hypothesis was proposed:

Hypothesis 5: Commitment of human resource is positively related to higher

organizational performance in small and medium enterprises in Thai Nguyen province

1.4 Theoretical Framework

1.4.1 Human Resources (HR) and Human Resource Management (HRM)

According to Armstrong M (2006), Human Resource Management (HRM) is a strategic and coherent approaching to the management of an organization’s most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives So HRM involves all management decision and practices that directly affects the people, or human resources, who work for the organization The HRM is shown as this figure

Boxall, P., Purcell, J & Wright, P (2007) distinguished between an organization’s human resources (the skilled and experienced employees) and human resources systems They argued that an organization’s human resources have a greater potential to generate value on a sustainable basis The human resources must exhibit high levels of skill and the willingness, motivation, and commitment to exhibit productive behavior that are generated by the human resource practices Thus, HRM practices elicit some behavioural outcomes in addition to the improvement of skills and abilities of employees Barney (1991) argued that human resources

can provide a source of sustained competitive advantage when four basic requirements are met, that is, through valuable, rare, inimitable and well organized human resources As a result, it is important that a firm adopts human resource management HRM practices can make best use of its employees

Figure 1.1: The Human Resource Cycle

Source: Armstrong M (2006), A Handbook of Human Resource Management Practice, p.6

1.4.2 The model of human resource management and performance

Many researchers on human resource management shown that HR practices may lead to higher business performance HR practices can create value for a firm when the individual practices are aligned to develop critical resources or competencies David Guest’s (1997), present the relationship between human resource management and performance by the following model The model has the dimensions of analysis: HRM strategy, HRM practices, HRM outcomes, performance outcomes and financial outcomes This assumption that improved performance is achieved through the people in the organization Guest (1997) used the expectancy theory to develop a more coherent rationale about HRM and performance link The model proposes that the performance depends on high motivation, skill, abilities HRM practices lead to high employee commitment, high quality staff and high flexible staff HRM helps to achieve appropriate HRM outcomes The three figures 2.2, 2.3 and 2.4 demonstrate the relationship between HRM practices, HRM outcomes and financial performance

Rewards

Performance

Development

Performance Management Selection

Figure 1.2: The relationship between strategic HRM and performance

(Source: Guest (1997)

Figure 1.3: HRM - performance linkage model

Source: Paul A K and Anantharaman R N (2003), Impact of people management practices on organizational performance: analysis of a causal model, International Journal

of Human Resource management, Vol.14, p.1249

HRM practices Intervening variables Operating performance

Employee Competence Team work Organizational Commitment Customer orientation

Financial Performance

Employee Productivity

Product quality Speed of delivery Operating cost

Business

strategy

HR strategy

HRM practices

HR effectiveness

HR outcomes:

competence commitment flexibility

Quality of goods and services

Productivity

Financial performance

Figure: 1.4: HRM activities, HRM outcomes and performance

(Paauwe and Richardson, 1997)

Source: Boselie, P., Dietz, G., Boon, C (2005), "Commonalities and contradictions in HRM and performance research", Human Resource Management Journal, Vol 15, p.2

Further, HRM practices such as training, job design, compensation and incentives directly affect the operational performance parameters, viz., employee retention, employee productivity, product quality, speed of delivery and operating cost More recently, A number of researchers have reported that HR practices are positively linked with organizational and employee performance (Guest, 2011)

To understand the HR outcomes of this model, Dyer and Reeves (1995), showed that human resource outcomes, such as: turnover, absenteeism, job satisfaction, commitment and financial accounting outcomes, such as profit, return on assets, and return

on investment The model of Guest as basic, many researchers studied and developed their researching, like D.Armstrong (2006)

1.5 Conceptual Framework

The study aimed to analyze the effectiveness of human resource management practices to organizational performance in small and medium enterprises in Thai Nguyen province First we have to identify strategic HRM practices These are HMR practices such as: planning, job analysis, recruitment and selection, job performance, training and promotion, salary and benefit, relationships with managers and relationships with

colleagues The HMR outcomes are competence, commitment, flexibility and the organizational performance are: quality of the products/services, profits, sales and satisfaction of customer needs The challenge then is to identify the measures of performance that truly predict long-term success of SMEs (Holloway et al., 1995)

Figure 1.5: Research Paradigm

We depart from the assumption that HRM practices do not lead directly to firm performance (Guest, 1997) Rather they influence firm resources, such as the human capital of the firm, or employee behavior So, it is through the creation of a skilled, motivated and empowered work force that HRM practices influence operational performance This improvement in operational performance can then lead to higher organization performance

Over the years, researchers have devoted a great deal of time and attention to establishing and examining the linkage between HRM practices and organisational performance Based on the evidence and findings, it is becoming increasingly clear that HRM is an important component that can affect organizational effectiveness leading to improved performance Though the link between HRM and organizational performance is considered a “black box”, that is, lack of clarity as to “what exactly leads to what” (Gerhart, 2007) however, the positive relationship between HRM and organizational performance cannot be over emphasized Empirical research surrounding the HRM and

performance debate over the last decade or so demonstrates evidence that “HRM does matter” (Huselid, 1995) Guest (1997) argues the distinctive feature of HRM is its assumption that improved performance is achieved through the people in the organization The work produced by Huselid, 1995, that examined the relationship between HR practices and corporate turnover, profitability and market value found that his HR index was significantly related to the gross rate of return on assets (a measure of profitability) and Tobin’s Q (the ratio of the market value of a firm to its book value) This means that if appropriate HR policies, processes and strategies are introduced a substantial impact on organizational performance can be made It is important to realize that the effectiveness of HRM policies depends on its alignment with other business strategies Interestingly, Hyde

et al (2008) examining the impact of HRM practices on firm profitability found little support for a positive relationship between HRM practices and firm profitability

Figure 1.6: Research Model

To study the effect of human resource management practice on HRM outcomes and organizational performance, several control variables would have to be included into the model to capture other organizational and environmental forces that are related to both the adaptation of HRM policies and organizational performance (Delaney & Huselid, 1996),

Organizational Performance

because the choice of control variables in the analysis can have an important effect on the result (Guest, 2001)

1.6 The operational definitions

1.6.1 The definition of HRM practices

Human resource management: Human Resource Management includes conducting job analyses, planning personnel needs, recruiting the right people for the job, orienting and training, managing wages and salaries, providing benefits and incentives, evaluating performance, resolving disputes, and communicating with all employees at all levels Examples of core qualities of HR management are extensive knowledge of the industry, leadership, and effective negotiation skills (Business dictionary.com)

Small and medium-sized enterprises are business organizations with business registration to conduct production, supply and exchange of goods and services in the market to maximize the interests of consumers, through which to maximize profits of the owner of the assets of the business

According to the model of human resources management model, Guest (1997), the practices of human resource management include human resource planning, job analysis, recruitment and selection, job evaluation, training and development, salary and welfare, relationships Therefore, they are independent variables in this study The practices of human resource management impact on HRM outcomes and HMR outcomes impact on organizational performance of enterprises

* Recruitment and Selection Scale

Recruitment and selection is the process of finding, attracting and selecting candidates to apply for a job in business To measure the recruitment and selection scale, four items were used with five-point scale (from Strongly Disagree to Strongly Agree) adapted from Signh K (2004):

RS1 The recruitment and selection systems in your company are highly scientific and

rigorous

RS2 In the company, line managers and HR managers participate in selection

RS3 Valid and standardized test are used when required in the recruitment and

selection

RS4 Recruitment and selection system in the company selects those having the desired

knowledge, skill and attitudes

* Salary and Welfare Scale

Salary is defined as a fix regular payment that employers pay employees on a monthly basis at minimum Welfare is defined as extra payment given to employees beside their salaries To measure the salary and welfare scale, five items were used adapted from the research of Williams et al (1999) with 5-point scale from strongly Disagree to Strongly Agree

SW1 My current salary is in line with my capacities and my contribution to the

company SW2 My salary is equitable with other employees at work

SW3 Welfare policies of the company are clear and accurate

SW4 Welfare policies demonstrate the careful caring of administrators for employees SW5 Employees receive full benefit and attractive welfare

* Training and Developing Scale

Labor training is the process of teaching and retraining knowledge and skills for workers to do their job better Developing is bringing employees to a higher position in the enterprise To measure Training and Developing Scale, four items (5-point scale) were used adapted from the research of Tran Kim Dung (2011):

TD1 I was fully trained all skills to perform my job

TD2 The company has always facilitated to improve my knowledge and skills to work TD3 Promotion policies of the company are fair

TD4 The company always makes advanced opportunities for qualified people

* Job Evaluation Scale

A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization Four items were used adapted from the research of Tran Kim Dung (2011):

JE1 My ability is recognized equally

JE2 My salary is adequate with my contribution

JE3 My job is evaluated equally

JE4 I feel satisfied with company’s job evaluation

1.6.2 HRM outcomes variables

They are impacted by HRM practices and they impact on organizational performance of enterprises Commitment refers to attachment and loyalty and is associated with the feelings of individuals about their organization According to Mowday et al (1982), the commitment has three characteristics:

- A strong desire to remain as a member of the organization

- A strong belief in and acceptance of the values and goals of the organization

- A readiness to exert considerable effort on behalf of the organization

Therefore, it is measured as the following criteria:

EC1 Employees have strong effective commitment in the company because they want EC2 Employees perceive that the costs of leaving the company are greater than the

costs of staying in the company

EC3 Employees with high levels of normative commitment stay with the company

because they feel they ought to

EC4 I intend to do my job with the best ability

1.6.3 Organizational Performance

Organizational performance variable is dependent variable According to Signh K (2004), in the research of the impact of HRM practices on firm performance for 359 firms in

India, organization performance is measured as evaluation of managerial employees Four items adapted from Mowday et al (1982) were used to measured organizational performance (5-point scale), as followings:

COM1 - The sales of the company is good in comparison with other companies

COM2 - The quality of the company's products is good

COM3 - The products of the company meet the needs of customers

COM4 - The profit of the company is good in comparison with other companies

1.6.4 Effectiveness of Human Resource Management Practice

Managing and implementing HRM practices in a way to meet HRM objectives, fulfilling organizational strategic objectives, providing the best service that meets internal customers’ needs and enhances the HRM outcome (employee satisfaction)

Effective Staffing (Recruiting, Selecting): Having the right candidates with the

appropriate skills, from different resources and guaranteeing the best fitting of employees’ needs It is most effective when using updated recruiting technologies

Effective Compensation: The systems that recognize and encourage individual and

team performance, satisfying internal customer needs and requirements; by applying adequate and equitable payments

Effective Training and Development: Ensuring that employee’s at all

organizational levels are continuously acquiring the needed knowledge and skills required

to develop their performance, attitude and quality of work It is most effective when using updated training tools and technologies

Effective Performance Appraisal: It is the appraisal that is oriented toward

ensuring performance development and measuring employee’s actual performance It is most effective when based on the objectives that support the strategic directions of the organization and using updated performance appraisal technologies

Employees Satisfaction: Employee’s positive emotional state results from the

effective HRM practices

To evaluate effectiveness of human resource management practice, the following items were used

Effectiveness of Recruitment and Selection

ERS1 You evaluate the effectiveness of determining the employee recruitment demand in your

company

ERS2 You evaluate the effectiveness of in attracting the number of the employee as compared to

employee recruitment demand in your company

ERS3 You evaluate the suitable method of recruitment in your company

ERS4 You evaluate the effectiveness of the process of employee selection

ERS5 You evaluate the suitable method of selection in your company

Effectiveness of Salary and Welfare

ESW1 You evaluate the equality in salary policy of your company

ESW2 You evaluate the clearance and transparent in salary policy of your company

ESW3 You evaluate the effectiveness of salary and welfare policy in ensuring employee’s

life in your company

ESW4 You evaluate the effectiveness of salary and welfare in motivating employee to work

in your company

ESW5 You evaluate the effectiveness of salary and welfare in creating employee loyalty in

your company

Effectiveness of Training and Development

ETD1 You evaluate the effectiveness of money spending for training and development in

your company

ETD2 You evaluate the suitable content of training and development program in your

company

ETD3 You evaluate the knowledge and skills of a group of people who are in charge of

training and development program in your company

ETD4 You evaluate the necessary facility of training and development program

ETD5 You evaluate the suitable method in training and development program in your

EJE1 You evaluate the fairness of job evaluation in your company

EJE2 You evaluate the suitable method of job evaluation in your company

EJE3 You evaluate the standard and criteria of job evaluation in your company

EJE4 You evaluate the effectiveness of the procedure of job evaluation

Effectiveness of Employee Satisfaction

EEC1 You evaluate the level of satisfaction with the work you are doing now

EEC2 You evaluate the level of support receiving from your coworkers in your company EEC3 You evaluate the relationship with your coworkers in your company

EEC4 You evaluate the level of responsiveness receiving your company

EEC5 You evaluate the level of linking between you and the core values of the company

Effectiveness of Organizational Performance

EOP1 You evaluate the effectiveness of the process of organization performance

EOP2 You evaluate the suitable method of selecting the organization performance in your

1.7 Scope and Limitation

- Place of the study: This study was carried out in Thai Nguyen province

- Duration of the study:

Secondary data: The data of period of 2015 – 2018 was used to analyze

Primary data collected in 2017

- The scope of the study is to research the effectiveness of human resource management practices on organizational performance in SMEs in Thai Nguyen province, but only conducted research for small and medium enterprises operating in the industrial sector (except for enterprises in the services sector and trade)

- The limitation of the study is to research only for small and medium enterprises operating in the industrial sector However, for other types of businesses, the study did not mention in research Besides, the research is limited in Thai Nguyen province - with the socio-economic conditions, which is different from other localities

1.8 Significance of the Study

- Through doing this study, the research results may help managers in small and medium enterprises in Thai Nguyen province understand deeply the role of human resource practices on improving enterprise’s outcomes

- The finding from this research may propose some useful solutions for managers

of small and medium enterprises in Thai Nguyen province to accelerate their employees commitment in working for company by improving human resource management practices

- The findings also help small and medium enterprises in Thai Nguyen province pay more attention to how the managers can achieve employees’ commitment and then in turn, gain the improvement in company’s performance It can be considered as one of solutions to keep employees’ loyalty with the company In real situation, when employees feel satisfied with the managers, they may contribute much their ability to the companies

- From the solutions to help managers in small and medium enterprises in Thai Nguyen province pay attention to employees’ lives and encourage employees to contribute their ability to company’s outcomes

- The improvement in performance of small and medium enterprises in Thai Nguyen province may help Thai Nguyen province increase the budget through taxes

- For policy makers, findings of research on the relationship between the activities of human resource management and business performance of small and medium-sized enterprises help them make wage policy, remuneration policy and other policies This creates a legal framework for the activities of human resource management of enterprises

- For the researchers, the findings about the impact of human resource management

to the business performance of small and medium enterprises are highly applicable models

CHAPTER 2 REVIEW OF RELATED LITERATURE AND STUDIES

The objectives of this chapter are to review previous research related to the areas of human resource management practices in SMEs and to build a model of the effectiveness

of human resource management practices on organizational performance of SMEs in Thai Nguyen province

2.1 Related Literature

2.1.1 Definitions of SMEs

Qualitative definitions define small and medium enterprises based on their qualitative aspects In the USA, based on four key factors identified by the 1947 Committee of

Economic Development (CED), the authorities define a small firm to be one which:

1) Has independent management

2) Has capital supplied and ownership held by an individual or small group

3) Has an area of operation which is localized in one community

4) Is small in relation to other firms in the industry

In the UK, the Bolton Committee adapted the qualitative definitions It identified three major aspects of small business:

Firstly, in economic terms, a small firm is one that has a relatively small share of the market, and is unable to influence the price or quantity of goods or servicing

Secondly, an essential aspect of a small firm is that its owner or part owner manages it in a personalized way, and not through the medium of a formal management structure

Thirdly, it is also independent in the sense that it does not form part of a larger enterprise and that the owner-managers should be free from outside control in making their principal decisions

Quantitative definition defining small and medium enterprises based on their quantitative aspects Unfortunately, quantitative aspects may be difficult to be measured Firstly, there are varieties of ways in which enterprise size can be measured, including: (1) Number of employees; (2) Sales revenue or turnover; (3) total assets, and (4) net worth The first of these is the most widely used to measure size in qualitative definitions of small enterprise around the world, although the second and the third also find significant use

Secondly, the quantitative aspects of small enterprises vary from industry to

industry and from country to country For example, an enterprise, which is small in one industry such as cement manufacture, may be regarded as large in another industry such as trading or tourism Similarly, an enterprise, which is considered small by the USA standards, may be relatively large in other countries such as Thailand, Malaysia or

Vietnam

The quantitative definitions of SMEs, especially their quantitative aspects, are very

important because they provide the basics for carrying out research and gathering statistical information They also provide quantitative standards for the comparative studies between

SMEs in one country and SMEs in another country

In Vietnam, Business establishments that have registered their business according to business law are divided into three levels: very small, small and medium according to the sizes of their total capital (equivalent to the total assets identified in an enterprise’s accounting balance sheet) or the average annual number of laborers (total capital is the priority criterion), concretely as follows:

SMEs include many forms of business organizations such as private enterprises, limited companies, joint stock companies, cooperatives and business households or family businesses However, this study only focuses on the forms of business that set up a formal system of human resource management Based on this criterion, private enterprises, limited companies, and joint stock companies are the objects of this study

Table 2.1:

Classification of enterprises by total capital and number of laborers in Vietnam

Very small enterprises Small-sized enterprises Medium-sized enterprises

Number of laborers Total capital

Number of laborers Total capital

Number of laborers

VND 20 billion or less

Between over

10 persons and

200 persons

Between over VND 20 billion and VND 100 billion

Between over

200 persons and 300 persons

II Industry

and

construction

10 persons or fewer

VND 20 billion or less

Between over

10 persons and

200 persons

Between over VND 20 billion and VND 100 billion

Between over

200 persons and 300 persons

III Trade

and service

10 persons or fewer

VND 10 billion or less

Between over

10 persons and

50 persons

Between over VND 10 billion and VND 50 billion

Between over

50 persons and

100 persons

Source: Decree 56/2009/ND-CP

2.1.2 Human resource management

2.1.2.1 The definition of human resource management

Human Resource Management is the management of human resources It is

designed by the HR Department to maximize employee performance in service of an employer's strategic objectives.HR is primarily concerned with the management of people within organizations, focusing on policies and on systems HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and rewarding (e.g., managing pay and benefit systems) (https://en.m.wikipedia.org)

Armstrong M (2006) defines Human Resource Management (HRM) as a strategic and coherent approach to the management of an organization’s most valued assets - the people working there who individually and collectively contributes to the achievement of the objectives HRM involves all management decision and practices that directly affects the people, or human resources, who work for the organization

2.1.2.2 The goals of human resource management

According to Armstrong’s handbook of human resource management practice (Page 5), the goals of human resource management are:

- Support the organization in achieving its objectives by developing and implementing human resource strategies that are integrated with the business strategy

- Contribute to the development of a high- performance culture

- Ensure that the organization has the talented, skilled and engaged people it needs

- Create a positive employment relationship between managers and employees and climate of mutual trust

- Encourage the application of an ethical approach people management

In “Personnel and human resource management”, published by Thomson learning, Gerald Cole, 2002, the goals of human resource management are:

- Ensure that the organization’s human resource needs in the next five years are met both in term of numbers and categories of employees

- Maintain wage and salary levels sufficient to recruit, retain and motivate staff at all levels in the organization

- Ensure top priority given to development of leadership skill for key personnel

- Ensure effective training and development opportunities for all staff to improve skills and develop flexible of roles

-Develop effective communication systems between managers and other employees and between departments and functions

2.1.2.3 The HR practices

* Recruitment and selection

Recruiting is the process of attracting qualified applicants from social labor force and the labor force within the organization Recruiting is important to influence the selection process and the quality of human resources in the organization Selection is the process of evaluating the candidates in many different aspects based on the requirements of the job to

find the right people with the requirements set out in the number of people who were attracted in the recruiting process

In view of Bratton et al (2012) (Human resource management: Theory and Practice), the stages of recruitment and selection process are:

* Salary and welfare

A great deal of research shows that offering high wages can reduce voluntary turnover (Shaw et al., 1998) In France, "The pay is understood as wages, salaries or basic, ordinary or minimum and everything benefits, paid directly or indirectly in cash or patch, which the employers pay for workers under the employment of workers " In Japan: “ Wages are remuneration in cash and in kind paid to employees on a regular basis, for time working or for actual labor, together with remuneration for the time not working, such as the annual vacation, paid holidays or holidays Wages excluding the contribution of employers to social insurance and pension funds for employees and benefits that workers enjoy thanks to this policy The money is paid when retiring or terminating labor contracts are not considered wages In Vietnam there are many different concepts of wages Some concepts of wages can be raised as follows: "Wages are the price of labor was formed through an agreement between the labor user and employee matching supply and demand

of labor in the market economy" "The salary is the amount of money that workers receive when they have completed or will complete a certain job, but the work is not prohibited by law" "Wages are anonymous earnings often that employees are entitled from the" work

"Wages are understood as the monetary amount that employers pay for employees when they complete the job by function and duties prescribed by law or the two sides agreed in the labor contract " Wages are only one expression, another name of wages Wages tied more directly to the purchase agreement related labor and is often used in the field of production and business, services, civil contracts for workers hired deadline The concept

of remuneration is commonly used in the hiring agreement on the free market and it should

be called the price of labor (In Vietnam, on the free market the term "wages" is often used

to pay for manual labor, and "remuneration" refers only to pay for mental work)

Fewer than two heads, methods of remuneration can be grouped though many methods are in number: remuneration on time basis and remuneration on result basis (Various incentive schemes are also there which provides monetary or non-monetary benefits for the workers.) This is also the method of remuneration that most companies are

applying now Michael Armstrong (2006) mentioned that we should give motivation,

commitment, job engagement and discretionary behavior by valuing and rewarding people

in accordance with their contribution

* Job performance

According to Stephan J Motowidlo PhD (Job Performance, 2003): Performance antecedents include both direct determinants, such as knowledge, skill, motivation, habits,

and situational opportunities and constraints, and indirect determinants, including individual differences in ability and personality and some types of situational variables Performance reviews are more concerned with the development and motivation of staff by looking at what areas are important to the performances of individuals and how well they

are doing A final indicator is the use of an evaluation system (indicator 3) The use of

these systems can be important for perceptions of procedural and distributive justice The direct determinants are presumed to mediate effects of the indirect determinants on job performance through causal mechanisms that involve the capacity to learn, opportunity to learn, motivation to learn, and dispositional fit

Job performance evaluation is often understood as a measure of systematic, formal and public job performance compared with the standard already set Job performance evaluation is measured by the results of the work that can be quantified by the score, list of events, or compared with the performance of individual work Job performance evaluation is measured in a systematic way because it is built according to the order, it includes the basic elements, there is an intimate relationship with each other, that is: The job performance standards measuring the work done according to the criteria of standards and feedback

between the employees and the management department Performance appraisal as the process of reviewing the strengths and weaknesses associated with the work of a person or a group in organization (Cascio WF 2006)

The objective of the assessment work carried out within an organization:

- For workers: job performance evaluation provides basic information about the job situation of workers, to help them know their capabilities, gaps in work history to draw experience and improve job performance

- For the manager: Evaluation conducted to help them grasp the situation of the work of employees, which in turn can make the right personnel decisions, such as training and development, compensation, promotions money…

The structure of the performance appraisal system work:

- Job performance standards: It is a system of indicators / criteria to express the requirements of the completion of a job in terms of quantity and quality Requirements for job performance standards are: Standard to show what workers do on the job and how to

do good; standards should reflect a reasonable request of quantity, quality, in line with job characteristics

- Measure the job performance: That is making the management assessment taking into account the level of job performance of workers Otherwise, quantifying the work done under the aspects has been identified in advance

- Feedback: Usually done through a formal discussion between the leaders of departments and employees at the end of cycle review to reconsider the whole situation of the employee's work In this discussion, the workers know the results of how his job performance is evaluated, knowing the strengths and weaknesses in the implementation of their work, knowing directions complete truth the job

* Training and developing

Training and developing is understood, as the activities to maintain and improve the quality of human resources of the organization, is a prerequisite to the organization so that it can stand and win in a competitive environment Training and developing include two main topics related to activities and training activities related to the development of human resources Promotion means putting workers in a working position with a higher salary, prestige and greater responsibility, so that they have better working conditions and more opportunities for development

According to Armstrong et al (2014), learning and development is the process of acquiring and developing knowledge, skills, capabilities, behaviors and attitudes through learning or developmental experiences Training and development is done through methods such as job training, courses taught by experts to help workers develop their skills and capacity to meet the requirements of enterprises “Training and improvement refers to planned efforts by which an organization facilitates the learning of job-related behavior for a part of employees The overall objective of training is to achieve knowledge and skills which lead to increased personal skills in one or more areas of expertise and through this, required motivation background is provided and improved to do job properly”

* The relationships

The relationships with managers and colleagues strongly impact on organizational performance Employees need to get the support from colleagues when they need, feel comfortable to work with other colleagues (Hill, 2008) And employees must find their colleagues reliable (Chami and Fullenkamp, 2002) In other study of Pettrson (1998), he arued that the interaction between employees within a business is crucial for accomplishing the organizational goals

2.1.2.4 The human outcomes employees (commitment)

Guest (1997) stated that: The assumption is that “appropriate” HRM practices tap the motivation and the commitment of employees.’ An explanation of the impact of HRM is based

on three propositions: 1) that HR practices can make a direct impact on employee characteristics such as engagement, commitment, motivation and skill; 2) if employees have these characteristics it is probable that organizational performance in terms of productivity, quality and high levels of customer service will improve; and 3) if such aspects of organizational performance improve, the financial results achieved by the organization will improve

In the same opinions, John Purcell and his colleagues, provides further analysis of the make-up of this so-called ‘black box’ They present evidence about the value of best practice HRM to workers and organizations and use ‘best practice’/‘high commitment’ HRM interchangeably

Delery and Doty (1996) give an extensive overview of three alternative modes of

theorizing the HRM-performance link The universalistic perspective states that a fixed set

of best practices can create surplus value in various business contexts Irrespective of strategy, the introduction of these practices has an additional effect on performance

(Huselid, 1995; Ichniowski and Shaw, 1999; Pfeffer, 1994) Contingency approaches, by

contrast, start with the assumption that the selection of a combination of HRM practices is determined by the strategy used; that, in turn, strategic choice is influenced by environmental features and that organizations which achieve ‘vertical fit’ between HRM choices, strategic options and environmental features will perform better than other organizations (Baird and Meshoulam, 1988; Youndt et al., 1996) Finally, the

configurational perspective is based on a holistic system approach Here, not only vertical

fit but also the importance of horizontal fit and equifinality are emphasized Horizontal fit implies that efforts must be devoted to the implementation of internally consistent bundles

of HRM practices (Arthur, 1994; MacDuffie, 1995) Equifinality implies that various organizations may well introduce various HRM configurations but can, nonetheless,

achieve equal performances

In the relationship between HR outcomes and organizational performance, Michael Armstrong (2006) (Strategic Human Resource Management: A Guide to Action Kogan Page London p 77-78) shown as follow:

Managing knowledge and

intellectual capital

Focuses on both organizational and individual learning and on providing learning opportunities and opportunities to share knowledge in a systematic way Ensures that vital stocks of knowledge are retained and deals with improving the flow of knowledge, information and learning within the organization

High-performance

management

Develops a performance culture that encourages high performance in such areas as productivity, quality, levels of customer service, growth, profits and, ultimately, the delivery of increased shareholder value Empowers employees to exhibit the discretionary behaviours most closely associated with higher business performance such as risk taking, innovation, knowledge sharing and establishing trust between managers and subordinates

Therefore, HRM practices impact on employee commitment, contribution and

flexibility (Guest et al 2000b, p31) In short, the more HR practices that are used, the more effectively they appear to be used in enhancing organizational performance Guest et al (2003, p311) showed some strong evidence there were links between high commitment

HRM and performance, their study fails to provide any convincing indications that greater application of HRM is likely to result in improving corporation performance’ There are a number of significant findings that confirm, overturn or extend previous work that investigated the links between high commitment HRM and performance The researchers used the AMO model, which argued that in order for people to perform better The studies used a range of different proxies for the same HR practice

An important implication of this transformation is that it may change the competencies that HR professionals must master in order to be successful Baill (1999), for example, has suggested that “traditional” HR competencies have not gone away, but rather must be supplemented with additional skills, such as a better understanding of the business Brockbank, Ulrich, and Beatty (1999) also noted that over the past decade HR