Assessing HR department effectiveness: managerial perspective in Polish firms

Abstract

Abstract Purpose This paper aims to determine variations in how different groups of stakeholders, such as top managers, HR managers, and line managers, perceive HR department effectiveness. Additionally, it explores the relation between different views on HR department effectiveness and multidimensional firm performance, encompassing proximal and distal outcomes. Design/methodology/approach The study comprised 150 Polish firms, with questionnaires collected from top managers, HR managers, and line managers within each organization. The analysis involved regression analysis and testing for two regression coefficients to confirm the hypotheses. Findings Research highlighted variations in how stakeholders perceive HR department effectiveness and its influence on organizational outcomes. Notably, top managers exhibited a strong association between HR department effectiveness and firm performance, especially concerning organizational and market performance. Surprisingly, assessments by HR managers and line managers did not display a stronger correlation with proximal outcomes, such as employee productivity and firm growth, compared to top managers, indicating a convergence in perspectives between different managerial levels. Originality/value Viewed through a managerial perspective, this paper emphasizes the significance of (dis)agreement in perceptions of HR department effectiveness at various hierarchical levels. In particular, this article enhances our knowledge of how top managers perceive HR department effectiveness, which has been relatively underexplored in prior research. Furthermore, it underscores the importance of top management as a critical stakeholder in HRM.