Towards organisational performance

Abstract

Purpose HRM climate is the intervening variable that relates implemented HRM practices to individual reactions. The purpose of the study is to contribute to the understanding of HRM climate construct, through the study of the role of HRM climate in employees' attitudes. Design/methodology/approach Based on the literature review a model is proposed that links HRM climate perceptions to job satisfaction, job involvement and perceived organisational performance. The model was tested on a sample of 574 Slovenian employees from the manufacturing sector. The model of HRM‐attitudes relationship was tested with partial least squares approach to structural equation modelling. Findings Two HRM climate dimensions (collaboration and structure) have an indirect (through job satisfaction and job involvement) and direct effect on perceived organisational performance, although dimension “collaboration” has a much stronger effect on employees' job satisfaction, and perceived organisational performance factor, than the “structure” dimension. Originality/value The HRM climate as a construct has not been studied intensively, although perceptions of HRM practices have been at the centre of attention since the beginning of the study of HRM‐performance relations. The study shows that the meaning assigned to the experienced HRM practices, has a strong effect on employees' reactions toward the job and work environment, and so offers a new approach to the understanding of the individual's role in HRM‐performance relation.

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