Devolution of HRM and organizational performance: evidence from India

Abstract

PurposeDevolution of human resource management to the line managers is an area that has received ample research attention, yet it remains a relatively unexplored area in the Indian context. Some researchers have examined the nature of devolution in India, but there is still a dearth of studies that establish the devolution‐organizational performance link. Thus, this paper study is carried out to explore the above link in the Indian context.Design/methodology/approachThe paper is based on primary data obtained through a structured research instrument from senior human resource executives of top ranking companies in India. Scale unidimensionality, reliability, and validity were assessed.FindingsThe structural equation modeling capabilities of LISREL 8.50 are employed to assess the relationship between devolution and organizational performance. It is found that the structural model fits the data well. The model shows that devolution has a significant direct and positive impact on organizational performance.Research limitations/implicationsThe research instrument developed for the above study has been tested in the Indian context only. It needs to be tested and cross‐validated on other samples indifferent settings, cultures, and countries to further test its unidimensionality, reliability, and validity.Practical implicationsThe paper has implications for both academicians and practitioners because it explores a largely untouched upon area in the Indian context.Originality/valueThe paper is unique in the sense that it develops a reliable and valid instrument for measuring devolution and then explores the devolution‐performance link.