Hrm practices in software industry

These are:. Critiques have shown various industries where a different set of policies are used M. Armstrong, n. So, there needs to be an interaction between the organization and the environment so that the policies are executed in favor of the organization. One strategy if fitted in one organization does not necessarily mean that it will fit in another.

This can be due to different external environment, availability of resources, technology, management style, and working practice. Hence it is best to think of good practices rather than the best practices.

Storey talks about two forms of HRM. It focuses on notions of tight strategic control. It emphasizes the role of management in cutting the cost by keeping only the required number of workers in the organization. Its main elements are close integration of human resource policies, systems, and activities with business strategy.

The second form is soft HRM that focuses on the human side. This lays importance on communication among employees and motivation among them to lead the organization.

They consider employees as a valuable asset and a source of competitive advantage because of their commitment, reliability, skills, and efficiency. Thus, this model can be used to illustrate the gap between rhetoric and reality in workforce management. The disadvantage of hard HRM is that people get tired of control. The control may lead to productive efficiency for some time but in the long run, the strategy will collapse. This problem cannot be seen in the soft HRM model, but it has its own set of weaknesses.

The cost of training, enhancing skills, increased wages, number of staff for support increases. Due to collaborative decisions, decision making is delayed. Sometimes, the middle managers in such a framework are discouraged as they may not find their value appreciated.

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The HRMP and innovation relationship in firms is tested in a variety of contexts in this systematic review. This review declares that HRMP and innovation in firms are being empirically explored and has an international appeal as different countries are encompassed. Laursen and Foss declared that the attention to HRMP and innovation in firms goes back to the late nineties.

Their paper is considered to be essential in inspecting the relationship between HRMP and innovation in firms. Thus, the current study took the year as a starting point to inspect the previously mentioned relationship.

The variance of interest in such a relationship is quite noticed since Figure 1. Furthermore, the quality of the journals used was distributed accordingly. In addition, articles revealed a spread over 15 countries, namely, China and Spain dominated the articles count, eight articles for China and seven for Spain, the USA, the UK and Korea counted for two articles each. The rest of the articles were distributed along 10 countries mainly located in Europe.

Thus, suggesting an opportunity for a globalized research, if supported with more samples from different countries. Human resources theories were spotted such as, namely, human capital theory is used to explain the relationship between innovations and organizational culture; social context theory to explain the organizational culture and employee behavior relationship Lau and Ngo, Moreover, learning theories is noticed, for example: organizational learning theory used to explain the impact of knowledge enhanced on innovation Chang et al.

Furthermore, the resource-based view RBV usage is prominent either in isolation or in complementarities. While for the later, RBV has been combined with creativity theory as an antecedent for creativity, thus leading to innovation Beugelsdijk, ; institutional theory to grab a better understanding of the context as RBV alone fails to do so Cooke and Saini, ; and dynamic capabilities DC to enhance innovative performance Messersmith and Guthrie, In addition, the social exchange theory was used in combination with equity theory.

Both theories support the claim that employees value the relationship with organization relative to incentives and rewards received Jiang et al. Thus, when employees are valued, they reciprocate the organization with an extra effort and novelty in doing things. Also, the job characteristics theory is used in combination with social cognitive theory to the support the impact of change-oriented HRMS Lee et al.

Job characteristics theory increases self-responsibility toward the change and social cognitive theory enhances self-efficacy. Besides, the presence of knowledge-based view not to be ignored in explaining the importance of knowledge management's impact on innovation Andreeva et al. Finally, the usage of the ability, motivation, opportunity AMO framework developed by Bailey is noticed to be prominent after the year To analyze the methodology characteristics three aspects have been examined, namely, the industry, the unit of analysis and methods adopted.

The main industry that has been noticed in the chosen articles is the manufacturing sector as it is present in 11 articles. The information and communication technology, is present in 6 papers. The food and beverage, automotive and service industry is present in four research studies. The wholesale trade, computer software industry, electronics, chemical industry, construction and hotel industry was noticed to be covered in 3 articles.

The catering, transportation, financial service and textile industry is allocated in two papers. The health and personal service, retail trade, internet and added values services, biotechnology and pharmaceutics and metallurgy industry were inspected in one article each.

What is noticed of what been mentioned above that the focus is on the manufacturing industry and there are still some industries to be covered such as oil, education and advertising industries. However, what is interesting that one of the articles excluded the agriculture sector. This may raise some questions and would constitute an opportunity for future research.

The individual is the essential unit of investigation of HRMP and innovation in firm research. As noticed, almost all of papers have focused on either top or middle management to represent the firm without giving an attention to the lower level of employees. The empirical systematic literature review revealed some aspects about the methodological trends used.

In total, 27 studies used questioners or surveys interchangeably for data collection, only two of them were longitudinal, while the rest were cross-sectional. Moreover, two studies used a mixed approach of a questioner and an interview. Furthermore, the rest two articles have adopted an interview approach with a longitudinal nature, thus a total of four articles having a longitudinal approach. Moreover, the majority of researchers have adopted HMR practices in isolation to inspect its impact on performance Wright and Boswell, However, there is a call for adopting sophisticated HRMS to induce product and technological innovation Shipton et al.

HRMP when adopted as a system, is expected to evoke innovation as noticed in many research studies, for example: De Winne and Sels , Lopez-Cabrales et al. However, it has been found that isolated HRMP induce innovation to a certain extent. However, their interactive impact will be more significant Beugelsdijk, ; Shipton et al. Additionally, Jimenez-Jemenez and Sanz-Valle in their study announced a lack of support for the claim that HRMP in isolation would induce innovation.

Moreover, the aspect of integration and fit is highlighted as; HRM system alone might not induce innovation unless accompanied by an organizational culture that supports innovation.

On the other hand, the alignment of HRMP toward the same goal may have a negative effect Andreeva et al. It is noticed that most researchers agree on the notion of the bundle, however, lack of agreement is noticed relative to the type of practices to integrate in the system Jimenez-Jemenez and Sanz-Valle, In summary, HRMS that builds knowledge capabilities evokes flexibility and learning is highly used in research.

Moreover, commitment systems are quite noticed, however, the concepts of fit, culture and collaboration need to be more research as few studies have been encountered. Additionally, the same systems encompassing different HRMP were used for different purposes.

Furthermore, different systems have been used for the same purpose. Systems used for different purposes are high performance work system, high commitment human resource system. The first was used to; motivate, build human and social capital Messersmith and Guthrie, ; to enhance adaptive capability Wei and Lau, ; and induce innovative work behavior Fu et al.

Utilization of HRMP in isolation is quite noticed and adopted in recent research studies. The practices used can be categorized according to their purpose of usage.

Lau and Ngo used three practices directed toward mindfulness; Jiang et al. Different definitions of innovation have been encountered, thus a trial has been conducted to set a certain trend for the definitions adopted. The definition by West and Far, used by Jiang et al. It captures the deliberate behavior directed toward new products, ideas and processes , that is new to the adopting unit and beneficial for the organization and society.

Moreover, its usage has been noticed to be mainly for the technological products and processes. Next, the prominent author relied upon in defining innovation was Damanpour, as there has been three definitions established during the following years , and The articles are developed by: Diaz-Fernandez et al.

Such definitions consider innovation as a performance outcome. Moreover, it captures the innovative strategy, product, project, process and organizational innovation. Furthermore, the measuring scale of patents and the classification of radical and incremental innovation was realized.

Additionally, innovation as newness in products, services, work and practices is addressed relying on Rogers, In addition, innovation has been considered to be embedded in knowledge according to kogut and Zander , Nonaka and Smith et al. The mediators used are as follows: Organizational culture, knowledge management capacity, unique knowledge, valuable knowledge, adaptive capability, innovation-oriented strategy, employee creativity, cross-functional research and development, absorptive capacity, innovative work behavior, human and social capital, firm ownership and middle managers innovative behavior.

On the other hand, the moderators incorporated are, namely, environmental dynamism, strategic activities, compensation and benefits, employee creativity, work-family conflict and work climate.

Moreover, the direct relationship is categorized into bundles, isolation and utilization of both approaches. First, trying to find the best bundle of practices for product innovation in firms, Laursen and Foss adopted two systems, namely, the first composed of nine practices and the second composed of two; however, both having a learning objective.

Their sample was Danish firms with at least employees. Results indicated that the complementarities effect between practices enhances their impact on innovation, however, only seven of the first system had a positive significant impact. Moreover, Shipton et al. The system adopted is learning-oriented composed of six practices.

Results indicated a significant impact on product production and technology innovation, however, no impact on the process.

Also, De Winne and Sels , with a sample of startup firms in Belgium inspected the impact of HRMP as a bundle on product, process and service innovation. The systems composed of five practices directed toward knowledge creation and retention.

Results indicated high positive significance between the bundle of practices and the mentioned types of innovation. High commitment HRMP was used such as internal promotion, group-based performance appraisal among six practices. It was noticed the existence of a positive influence on product and process innovation, yet this influence varies relative to sectors. Furthermore, Messermith and Gutherie handled a sample of firm in the USA having 20 to employees. HPWS was adopted, it supported the emergence of product, organizational but not process innovation.

Besides, Zhou et al. Both systems indicated a positive impact on organizational innovation, however, when implemented together, a negative interactions emerges this hindering innovation. The commitment-based system was used by Ceylan , which enhanced various forms of innovation This positive impact on innovation is also reflected when studying firms with 50 employees or more in Spain Nieves and Osorio, In summary, different usage of HRMP systems shown a positive association with product innovation, however, little evidence is provided to support the emergence of process innovation.

Moreover, innovation level varies among sectors as some are influenced by specific types of system of practices. Thus, according to the sector, careful selection of practices should be adopted. Furthermore, it was noticed that when implementing two different types of systems, the impact of both systems on innovation is diminished. This is explained according to ambidexterity as there should be a balance if more than one system is adopted.

Next, Vogus and Wellborne examined the USA by a sample of firms having an average of employees. HRMP was used in isolation, results indicated that innovation output is strongly increased by these practices. Moreover, Beugelsdijk examined the Dutch context with a sample of firms having a minimum of 5 employees. Outcomes highlighted the importance of adopting practices that stress training and incentives to induce incremental innovation such as follows: training, performance-based pay.

While, for radical innovation the adopted practices should induce autonomy. Then, Shipton et al. They adopted a set of practices that evoke exploratory learning; results indicated that induction, appraisal, training and teamwork had a significant impact on product innovation yet; appraisal had no impact on technical system innovation.

Moreover, contingent reward had no impact on both types of innovation, however, when combined with other practices as a system its impact becomes obvious. In addition, the combined influence had a stronger impact on technical innovation.

Moreover, Chang et al. However, the joint adoption had a negative impact on incremental innovation. Besides, Andreeva et al. The separate impact of rewards and appraisals was positive on incremental innovation, however, no interaction impact.

While, for radical innovation rewards had a positive impact while the interactive impact was negative.

This supports the notion of careful selection when combing practices. In summary, various HRMP have been examined if being used would enhance innovation, surprisingly most studies revealed that single practices would evoke innovation. However, when combined with each other innovation will be hindered. Thus, contradicting what has been mentioned above relative to the impact of bundles of HRMP on innovation.

Finally, the existence of a mediating or moderation mechanism to explain the HRMP and innovation linkage is noticed. The system used to create cross-functional teams that support change. It had a positive impact on innovation through the organizational culture. Moreover, knowledge management capacity as a moderator was adopted by Chen and Huang while examining Taiwanese firms. Results supported the mediating impact between HRMP as a bundle and innovation administrative and technical.

Furthermore, Lopez-Cabrales et al. Two types of bundles was adopted; knowledge-based and Collaborative HRMP mediated by valuable knowledge and unique knowledge respectively. Hence, both systems had no direct effect, while only collaborative HRMP has an impact on innovation mediated by unique knowledge.

In addition, partial support has been recognized when examining the HPWS and product innovation relationship mediated by adaptive capability Wei and Lau, Also, Cooke et al. Strong influence has been noticed, which was explained by the adoption of practices supporting each other. Also, Jiang et al. All practices indicated a positive mediation, however, training and performance appraisal were not.

The test conducted in the German context with a sample of firms having 50 employees and above Stock et al. Training and rewards had a strong influence on product program innovativeness, however, recruitment had no impact. Besides, the mediating role of absorptive capacity between flexibility-oriented HRMS and incremental innovation was inspected in China.

Both systems indicated a significant association with firm innovativeness, however, when implemented together the positive impact fades Chang et al. The study was conducted in Spain handling sample of firms. As well, Fu et al. The sample included firms and results supported the direct and the mediated relationship. Subsequently, Donate et al.