Human Resource Management Practices, Person-Environment Fit and Financial Performance in Brazilian Publicly Traded Companies
The relation between Human Resource Management (HRM) practices and organizational performance remains the subject of substantial literature. Though many studies demonstrated positive relationship, still major influencing variables are not yet clear. This study considers the Person-Environment Fit (PE Fit) and its components, Person-Supervisor (PS), Person-Group (PG), Person-Organization (PO) and Person-Job (PJ) Fit, as possible explanatory variables. We analyzed PE Fit as a moderator between HRM practices and financial performance in the “best companies to work” in Brazil. Data from HRM practices were classified through the High Performance Working Systems (HPWS) construct and data on PE-Fit were obtained through surveys among employees. Financial data, consisting of return on invested capital (ROIC) and price earnings ratio (PER) were collected for publicly traded best companies to work. Findings show that PO Fit and PJ Fit play a significant moderator role for PER but not for ROIC.
[1] J. Chowhan, “Unpacking the black box: understanding the relationship between strategy, HRM practices, innovation and organisational performance.” Human Resource Management Journal, vol. 26, pp. 112-133, 2016.
[2] N. Fu et al., “How do high performance work systems influence organisational innovation in professional service firms?” Employee Relations, vol. 37, pp. 693-707, 2015.
[3] J. P. Guthrie, P. C. Flood, W. Liu, and S. Maccurtain, “High performance work systems in Ireland: human resource and organizational outcomes.” International Journal of Human Resource Management, vol. 20, no. 1, pp. 112-125, 2009.
[4] K. Van De Voorde, and S. Beijer, “The role of employee HR attributions in the relationship between high-performance work systems and employee outcomes.” Human Resource Management Journal, vol. 25, pp. 62-78, 2015.
[5] L. Q. Wei, and C. M. Lau, “High Performance Work Systems and Performance: The Role of Adaptive Capability.” Human Relations, vol. 63, no. 10, pp. 1487-1511, 2010.
[6] J. P. Macduffie, “Human Resource Bundles and Manufacturing Performance: Organisational Logic and Flexible Production Systems in the World Auto Industry.” Industrial and Labour Relations Review, vol. 48, no. 2, pp. 197221, 1995.
[7] E. W. Rogers, and P. M. Wright, “Measuring organizational performance in strategic human resource management: Problems, prospects, and performance information markets.” Human Resource Management Review, vol. 8, no. 3, pp. 311-331, 1998.
[8] R. Kaplan, and D. Norton, “The Balanced Scorecard-Measures that drive performance.” Harvard Business Review, vol. 72, no. 1, pp. 71-79, 1992.
[9] A. L. Kristof, “Person-organization Fit: An integrative review of its conceptualizations, measurement, and implications.” Personnel Psychology, vol. 49, no. 1, pp. 1-49, 1996.
[10] R. Cropanzano, and M. S. Mitchell, “Social Exchange Theory: An interdisciplinary review.” Journal of Management, vol. 31, no. 6, pp. 874-900, 2005.
[11] M. Huselid, “Impact of human resource management on turnover, productivity and corporate financial performance.” Academy of Management Journal, vol. 38, no. 3, pp. 635-672, 1995.
[12] J. Purcell, “Best practice and best fit: Chimera or cul-de-sac?” Human Resource Management Journal, vol. 9, no. 3, pp. 26-41, 1999.
[13] M. A Youndt, S. A. Snell, J. W. Dean, and D. P. Lepak, “Human resources management, manufacturing strategy, and firm performance.” Academy of Management Journal, vol. 39, no. 4, pp. 836-866, 1996.
[14] P. Boxall, and J. Purcell, “Strategy and Human Resource Management.” London: Palgrave, p. 368, 2003.
[15] B. E. Becker, and M. A. Huselid, “Strategic Human Resource Management: where do we go from here?” Journal of Management, v. 32, pp. 898–925, 2006.
[16] J. E. Delery, and D. H. Doty, “Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions.” Academy of Management Journal, vol. 39, pp. 802-835, 1996.
[17] H. Do, “High-Performance Work Systems and Organisational Performance: evidence from the Vietnamese Service Sector”, Doctor of Philosophy Aston University June 2016.
[18] R. Miles, and C. Snow, “Fit, failure, and the hall of fame.” New York: Free Press, 1984.
[19] L. Donaldson, Teoria da contingência estrutural. In “Handbook de Estudos Organizacionais: modelos de análise e novas questões em estudos organizacionais.” S. Clegg, C. Hardy and W. R. Nord, São Paulo: Atlas, 1999.
[20] D. P. Lepak, and S. A. Snell, “Examining the Human Resource Architecture: The Relationships among Human Capital, Employment, and Human Resource Configurations.” Journal of Management, vol. 28, pp. 517-543, 2002.
[21] J. B. Barney, “Looking inside competitive advantage.” Academy of Management Executive, vol.17, no.4, pp. 49-61, 1995.
[22] A. M. Ayanda, O. R. Lawal, and P. Ben-Bernard, “Effects of Human Resource Management practices on Financial Performance of banks.” Transnational Journal of Science and Technology, vol. 4, no.2, pp. 1-16, April 2014.
[23] L. Dyer, and T. Reeves, “Human resource strategies and firm performance: What do we need to know and where do we need to go?” International Journal of Human Resource Management, vol. 6, pp. 656-670, 1995.
[24] A. M. B. Oliveira, and A. J. Oliveira, “Gestão de Recursos Humanos: Uma metanálise de seus efeitos sobre desempenho organizacional.” Revista de Administração Contemporânea, vol. 15, no. 4, pp. 650-669, 2011.
[25] S. Selden, L. Schimmoeller, and R. Thompson, “The influence of high Performance Work Systems on voluntary turnover of new hires in US state governments.” Personnel Review, vol. 42, pp. 300-323, 2013.
[26] E. F. Fama, L. Fisher, M. C. Jensen, and R. Roll, “The adjustment of stock prices to new information.” International Economic Review, vol. 10, pp. 1-21, 1969.
[27] K. Lewin, “Dynamic theory of Personality.” New York: McGraw-Hill, 1935.
[28] J. R. Edwards, and C. L. Cooper, “The Person-Environment Fit approach to stress: Recurring problems and suggested solutions.” Journal of Organizational Behavior, vol. 11, pp. 293-307, 1990.
[29] M. M. M. Siqueira, “Proposição e análise de um modelo para comportamentos de cidadania organizacional.” Revista de Administração Contemporânea, vol. 7, pp. 5-184, 2003.
[30] E. A. Locke, The nature and causes of job satisfaction. In. “Handbook of industrial and organizational psychology.” M. Dunnette, Eds. Chicago: Rand McNally, 1976, pp. 1297–1350.
[31] J. R. P. French, R. D. Caplan, and R. V. Harrison, “Mechanisms of job stress and strain.” Chichester: Wiley & Sons, 1982.
[32] P. M. Muchinsky, and C. J. Monahan, “What is Person-Environment congruence? Suplementary versus complementary models of Fit.” Journal of Vocational Behavior, vol. 31, pp. 268-277, 1987.
[33] F. Dansereau, J. Cashman, and G. Graen, “Instrumentality theory and equity theory as complementary approaches in predicting the relationship of leadership and turnover among managers.” Organizational Behavior and Human Performance, vol. 10, pp. 184-200, 1973.
[34] J. B. Vancouver, and N. W. Schmitt, “An exploratory examination of person- organization fit: Organizational goal congruence.” Personnel Psychology, vol. 44, pp. 333-352, 1991.
[35] R. M. Dienesch, and R. C. Liden, “Leader-member exchange model of leadership: A critique and further development.” Academy of Management Review, vol. 11, pp. 618-634, 1986.
[36] A. V. Carron, “Cohesiveness in sport groups: Interpretations and considerations.” Journal of Sport Psychology, vol. 4, pp. 123-138, 1982.
[37] D. Yukelson, R. Weinberg, and A. Jackson, “A multidimensional group cohesion instrument for intercollegiate basketball.” Journal of Sport Psychology, vol. 6, pp. 103-117. 1984.
[38] M. Tepeci, “The Effect of Personal Values, Organization Culture, and Person-organization Fit on Individual Outcomes in the Restaurant, Industry.” Unpublished Doctoral Dissertation, Pensylvania: State University, 2001.
[39] R. Decooman et al., “Person-Organization Fit: Testing socialization and attraction-selection-attrition hypotheses.” Journal of Vocational Behavior, vol. 74, no. 1, pp. 102-107, 2009.
[40] A. L. Kristof-Brown, R. D. Zimmerman, and E. C. Johnson, “Consequences of individuals fit at work: a meta-analysis of Person-Job, Person-Organization, Person-Group, and Person-Supervisor Fit.” Personnel Psychology, vol. 58, pp. 281-342, 2005.
[41] J. R. Edwards, Person-Job Fit: A conceptual integration, literature review, and methodological critique. In “International review of industrial and organizational psychology”, C. L. Cooper, and I. T. Robertson Eds., vol. 6, pp. 283-357, 1991.
[42] C. Boon, and M. Biron, “Temporal issues in Person–Organization Fit, Person–Job Fit and Turnover: The role of leader–member Exchange.” Human Relations, vol. 69, no. 12, pp. 2177-2200, 2016.
[43] H. S. Park, and S. Y. Shin, “The role of the star player in a cohesive group.” Small Group Research, vol. 46, pp. 415-430, 2015.
[44] D. S. Derue, and J. R. Hollenbeck, The search for internal and external fit in teams. In “Perspectives on Organizational Fit.” C. Ostroff, and Judge, T. A Eds., New York: Lawrence Erlbaum Associates, 2007, pp. 259-285.
[45] D. S. Derue, and F. P. Morgeson, “Stability and change in person-team and Person-Role Fit over time: The effects of growth satisfaction, performance, and general self-efficacy.” Journal of Applied Psychology, vol. 92, pp. 1242-1253, 2007.
[46] A. E. M. V. Vianen, “Person–Environment Fit: A Review of Its Basic Tenets.” Annual Review of Organizational Psychology and Organizational Behavior, vol.5, no.1, pp.75-101, 2018.
[47] A. S. B. Shmailan, “The relationship between job satisfaction, job performance and employee engagement: An explorative study.” Business Management and Economics, vol. 4, no. 1, pp. 1-8, 2016.
[48] N. Ahmad, and M. Jameel, “HRM practices as predictor of employee Performance and Job Satisfaction: A Study of Nespak, Pakistan.” Arabian Journal of Business and Management Review (Nigerian Chapter), vol. 4, no.1, 2016.
[49] P. Asquith, and D. Mullins, Signaling with dividends, stock repurchases and equity issues. Financial Management, vol.35, no.3, pp. 27-44, 1986.
[50] P. Thompson, “The trouble with HRM.” HR Management Journal, vol. 21, no. 4, pp.355-367, 2011.
[51] A. Saks, and B. A. Ashforth, “Longitudinal investigation of the relationship between job information sources, applicant perceptions of fit and work outcomes.” Personnel Psychology, vol. 50, pp. 395-426, 1997.
[1] J. Chowhan, “Unpacking the black box: understanding the relationship between strategy, HRM practices, innovation and organisational performance.” Human Resource Management Journal, vol. 26, pp. 112-133, 2016.
[2] N. Fu et al., “How do high performance work systems influence organisational innovation in professional service firms?” Employee Relations, vol. 37, pp. 693-707, 2015.
[3] J. P. Guthrie, P. C. Flood, W. Liu, and S. Maccurtain, “High performance work systems in Ireland: human resource and organizational outcomes.” International Journal of Human Resource Management, vol. 20, no. 1, pp. 112-125, 2009.
[4] K. Van De Voorde, and S. Beijer, “The role of employee HR attributions in the relationship between high-performance work systems and employee outcomes.” Human Resource Management Journal, vol. 25, pp. 62-78, 2015.
[5] L. Q. Wei, and C. M. Lau, “High Performance Work Systems and Performance: The Role of Adaptive Capability.” Human Relations, vol. 63, no. 10, pp. 1487-1511, 2010.
[6] J. P. Macduffie, “Human Resource Bundles and Manufacturing Performance: Organisational Logic and Flexible Production Systems in the World Auto Industry.” Industrial and Labour Relations Review, vol. 48, no. 2, pp. 197221, 1995.
[7] E. W. Rogers, and P. M. Wright, “Measuring organizational performance in strategic human resource management: Problems, prospects, and performance information markets.” Human Resource Management Review, vol. 8, no. 3, pp. 311-331, 1998.
[8] R. Kaplan, and D. Norton, “The Balanced Scorecard-Measures that drive performance.” Harvard Business Review, vol. 72, no. 1, pp. 71-79, 1992.
[9] A. L. Kristof, “Person-organization Fit: An integrative review of its conceptualizations, measurement, and implications.” Personnel Psychology, vol. 49, no. 1, pp. 1-49, 1996.
[10] R. Cropanzano, and M. S. Mitchell, “Social Exchange Theory: An interdisciplinary review.” Journal of Management, vol. 31, no. 6, pp. 874-900, 2005.
[11] M. Huselid, “Impact of human resource management on turnover, productivity and corporate financial performance.” Academy of Management Journal, vol. 38, no. 3, pp. 635-672, 1995.
[12] J. Purcell, “Best practice and best fit: Chimera or cul-de-sac?” Human Resource Management Journal, vol. 9, no. 3, pp. 26-41, 1999.
[13] M. A Youndt, S. A. Snell, J. W. Dean, and D. P. Lepak, “Human resources management, manufacturing strategy, and firm performance.” Academy of Management Journal, vol. 39, no. 4, pp. 836-866, 1996.
[14] P. Boxall, and J. Purcell, “Strategy and Human Resource Management.” London: Palgrave, p. 368, 2003.
[15] B. E. Becker, and M. A. Huselid, “Strategic Human Resource Management: where do we go from here?” Journal of Management, v. 32, pp. 898–925, 2006.
[16] J. E. Delery, and D. H. Doty, “Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions.” Academy of Management Journal, vol. 39, pp. 802-835, 1996.
[17] H. Do, “High-Performance Work Systems and Organisational Performance: evidence from the Vietnamese Service Sector”, Doctor of Philosophy Aston University June 2016.
[18] R. Miles, and C. Snow, “Fit, failure, and the hall of fame.” New York: Free Press, 1984.
[19] L. Donaldson, Teoria da contingência estrutural. In “Handbook de Estudos Organizacionais: modelos de análise e novas questões em estudos organizacionais.” S. Clegg, C. Hardy and W. R. Nord, São Paulo: Atlas, 1999.
[20] D. P. Lepak, and S. A. Snell, “Examining the Human Resource Architecture: The Relationships among Human Capital, Employment, and Human Resource Configurations.” Journal of Management, vol. 28, pp. 517-543, 2002.
[21] J. B. Barney, “Looking inside competitive advantage.” Academy of Management Executive, vol.17, no.4, pp. 49-61, 1995.
[22] A. M. Ayanda, O. R. Lawal, and P. Ben-Bernard, “Effects of Human Resource Management practices on Financial Performance of banks.” Transnational Journal of Science and Technology, vol. 4, no.2, pp. 1-16, April 2014.
[23] L. Dyer, and T. Reeves, “Human resource strategies and firm performance: What do we need to know and where do we need to go?” International Journal of Human Resource Management, vol. 6, pp. 656-670, 1995.
[24] A. M. B. Oliveira, and A. J. Oliveira, “Gestão de Recursos Humanos: Uma metanálise de seus efeitos sobre desempenho organizacional.” Revista de Administração Contemporânea, vol. 15, no. 4, pp. 650-669, 2011.
[25] S. Selden, L. Schimmoeller, and R. Thompson, “The influence of high Performance Work Systems on voluntary turnover of new hires in US state governments.” Personnel Review, vol. 42, pp. 300-323, 2013.
[26] E. F. Fama, L. Fisher, M. C. Jensen, and R. Roll, “The adjustment of stock prices to new information.” International Economic Review, vol. 10, pp. 1-21, 1969.
[27] K. Lewin, “Dynamic theory of Personality.” New York: McGraw-Hill, 1935.
[28] J. R. Edwards, and C. L. Cooper, “The Person-Environment Fit approach to stress: Recurring problems and suggested solutions.” Journal of Organizational Behavior, vol. 11, pp. 293-307, 1990.
[29] M. M. M. Siqueira, “Proposição e análise de um modelo para comportamentos de cidadania organizacional.” Revista de Administração Contemporânea, vol. 7, pp. 5-184, 2003.
[30] E. A. Locke, The nature and causes of job satisfaction. In. “Handbook of industrial and organizational psychology.” M. Dunnette, Eds. Chicago: Rand McNally, 1976, pp. 1297–1350.
[31] J. R. P. French, R. D. Caplan, and R. V. Harrison, “Mechanisms of job stress and strain.” Chichester: Wiley & Sons, 1982.
[32] P. M. Muchinsky, and C. J. Monahan, “What is Person-Environment congruence? Suplementary versus complementary models of Fit.” Journal of Vocational Behavior, vol. 31, pp. 268-277, 1987.
[33] F. Dansereau, J. Cashman, and G. Graen, “Instrumentality theory and equity theory as complementary approaches in predicting the relationship of leadership and turnover among managers.” Organizational Behavior and Human Performance, vol. 10, pp. 184-200, 1973.
[34] J. B. Vancouver, and N. W. Schmitt, “An exploratory examination of person- organization fit: Organizational goal congruence.” Personnel Psychology, vol. 44, pp. 333-352, 1991.
[35] R. M. Dienesch, and R. C. Liden, “Leader-member exchange model of leadership: A critique and further development.” Academy of Management Review, vol. 11, pp. 618-634, 1986.
[36] A. V. Carron, “Cohesiveness in sport groups: Interpretations and considerations.” Journal of Sport Psychology, vol. 4, pp. 123-138, 1982.
[37] D. Yukelson, R. Weinberg, and A. Jackson, “A multidimensional group cohesion instrument for intercollegiate basketball.” Journal of Sport Psychology, vol. 6, pp. 103-117. 1984.
[38] M. Tepeci, “The Effect of Personal Values, Organization Culture, and Person-organization Fit on Individual Outcomes in the Restaurant, Industry.” Unpublished Doctoral Dissertation, Pensylvania: State University, 2001.
[39] R. Decooman et al., “Person-Organization Fit: Testing socialization and attraction-selection-attrition hypotheses.” Journal of Vocational Behavior, vol. 74, no. 1, pp. 102-107, 2009.
[40] A. L. Kristof-Brown, R. D. Zimmerman, and E. C. Johnson, “Consequences of individuals fit at work: a meta-analysis of Person-Job, Person-Organization, Person-Group, and Person-Supervisor Fit.” Personnel Psychology, vol. 58, pp. 281-342, 2005.
[41] J. R. Edwards, Person-Job Fit: A conceptual integration, literature review, and methodological critique. In “International review of industrial and organizational psychology”, C. L. Cooper, and I. T. Robertson Eds., vol. 6, pp. 283-357, 1991.
[42] C. Boon, and M. Biron, “Temporal issues in Person–Organization Fit, Person–Job Fit and Turnover: The role of leader–member Exchange.” Human Relations, vol. 69, no. 12, pp. 2177-2200, 2016.
[43] H. S. Park, and S. Y. Shin, “The role of the star player in a cohesive group.” Small Group Research, vol. 46, pp. 415-430, 2015.
[44] D. S. Derue, and J. R. Hollenbeck, The search for internal and external fit in teams. In “Perspectives on Organizational Fit.” C. Ostroff, and Judge, T. A Eds., New York: Lawrence Erlbaum Associates, 2007, pp. 259-285.
[45] D. S. Derue, and F. P. Morgeson, “Stability and change in person-team and Person-Role Fit over time: The effects of growth satisfaction, performance, and general self-efficacy.” Journal of Applied Psychology, vol. 92, pp. 1242-1253, 2007.
[46] A. E. M. V. Vianen, “Person–Environment Fit: A Review of Its Basic Tenets.” Annual Review of Organizational Psychology and Organizational Behavior, vol.5, no.1, pp.75-101, 2018.
[47] A. S. B. Shmailan, “The relationship between job satisfaction, job performance and employee engagement: An explorative study.” Business Management and Economics, vol. 4, no. 1, pp. 1-8, 2016.
[48] N. Ahmad, and M. Jameel, “HRM practices as predictor of employee Performance and Job Satisfaction: A Study of Nespak, Pakistan.” Arabian Journal of Business and Management Review (Nigerian Chapter), vol. 4, no.1, 2016.
[49] P. Asquith, and D. Mullins, Signaling with dividends, stock repurchases and equity issues. Financial Management, vol.35, no.3, pp. 27-44, 1986.
[50] P. Thompson, “The trouble with HRM.” HR Management Journal, vol. 21, no. 4, pp.355-367, 2011.
[51] A. Saks, and B. A. Ashforth, “Longitudinal investigation of the relationship between job information sources, applicant perceptions of fit and work outcomes.” Personnel Psychology, vol. 50, pp. 395-426, 1997.
@article{"International Journal of Business, Human and Social Sciences:78522", author = "Bruno Henrique Rocha Fernandes and Amir Rezaee and Jucelia Appio", title = "Human Resource Management Practices, Person-Environment Fit and Financial Performance in Brazilian Publicly Traded Companies", abstract = "The relation between Human Resource Management (HRM) practices and organizational performance remains the subject of substantial literature. Though many studies demonstrated positive relationship, still major influencing variables are not yet clear. This study considers the Person-Environment Fit (PE Fit) and its components, Person-Supervisor (PS), Person-Group (PG), Person-Organization (PO) and Person-Job (PJ) Fit, as possible explanatory variables. We analyzed PE Fit as a moderator between HRM practices and financial performance in the “best companies to work” in Brazil. Data from HRM practices were classified through the High Performance Working Systems (HPWS) construct and data on PE-Fit were obtained through surveys among employees. Financial data, consisting of return on invested capital (ROIC) and price earnings ratio (PER) were collected for publicly traded best companies to work. Findings show that PO Fit and PJ Fit play a significant moderator role for PER but not for ROIC.
", keywords = "Financial performance, human resource management, high performance working systems, person-environment fit.", volume = "13", number = "3", pages = "274-9", }
