The behavioral model logic: a micro-level examination of competitive strategies, HR practices and employee outcomes

Abstract

PurposeThe behavioral framework presents a logic for understanding the relationships between characteristics of the organization and the HRM system. Drawing on this logic to connect the broader management oriented area of strategy with HRM, a micro-level lens is used to examine how competitive strategies and human resource (HR) practice subsystems cohere to influence employees' role behaviors and performance outcomes.Design/methodology/approachOnline survey data were collected from 301 employees working in the retail trade and hospitality segments of New Zealand's service industry.FindingsRelationships represented in the behavioral model are supported. Specifically, this study finds identifiable differences between the types of HR practices employed and the competitive strategy followed by an organization. Distinguishable sets of HR practices could also be connected to discernible employee role behaviors, which in turn, were related to strategically-aligned performance outcomes. Some commonality in these relationships were evident however.Practical implicationsHR practitioners need to be cognizant of their organization's competitive strategy and ensure the design and messages sent by their HRM system supports the realization of desirable employee role behaviors that promote organizational success. This alignment is supported with job descriptions that clearly articulate to prospective employees the role behaviors required, along with screening processes that support this assessment.Originality/valueThis descriptive, exploratory study presenting data about the alignment between competitive strategies, HR practices, behavioral and performance outcomes contributes to our understanding of contingency arguments and employees' experiences and reactions to HRM. Moreover, by adopting a particularistic focus, this research is able to highlight the salient role of context in SHRM research.