How Strategic HRM Practices Affect Corporate Performance- Moderating Effects of Irregular Workers -
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Drawing from universalistic approaches in strategic HRM practices, our study looked into two categories: how HRM practices affect corporate performance; how employment uncertainty has transformed Korea’s working environment since 1997-1998 IMF crisis mass-produced irregular workers. As these have taken up increasing proportion of Corporate Korea’s human resources management, this phenomenon merits an in-depth analysis so as to see how non-regular workers influence corporate results. Our study shows that output based compensation and employment security hold a statistical meaning to ‘subjective’ financial results. Meanwhile, employment security pact, contrary to hypothesis, yields negative influence on subjective financial results. As for labor productivity, positive influence came up with output-based appraisal, job-analysis and employees participation. Our analysis looked for actual proofs in how HRM practices and moderating effect of irregular ratio affect corporate performance. It edifies that, if irregular workers take up a bigger proportion, such strategic HRM practices as formal training scheme, job descriptions, and employee participation became significant. Id est, the more irregular workers, the more useful are formal training programs and job descriptions; employees’ participation can be reflected into management plan with positive results. This study concludes as follows. A few HRM practices that had been considered as ‘best practice’ are now out of sync with today’s Corporate Korea as environments shifted; if irregular workers take up bigger proportion, universalistic HRM practices are called for to make a difference. Further to this study, we enumerated the four areas that need more research, and we came up with a layout of how our future research work will develop.
Abstract
Drawing from universalistic approaches in strategic HRM practices, our study looked into two categories: how HRM practices affect corporate performance; how employment uncertainty has transformed Korea’s working environment since 1997-1998 IMF crisis mass-produced irregular workers. As these have taken up increasing proportion of Corporate Korea’s human resources management, this phenomenon merits an in-depth analysis so as to see how non-regular workers influence corporate results. Our study shows that output based compensation and employment security hold a statistical meaning to ‘subjective’ financial results. Meanwhile, employment security pact, contrary to hypothesis, yields negative influence on subjective financial results. As for labor productivity, positive influence came up with output-based appraisal, job-analysis and employees participation. Our analysis looked for actual proofs in how HRM practices and moderating effect of irregular ratio affect corporate performance. It edifies that, if irregular workers take up a bigger proportion, such strategic HRM practices as formal training scheme, job descriptions, and employee participation became significant. Id est, the more irregular workers, the more useful are formal training programs and job descriptions; employees’ participation can be reflected into management plan with positive results. This study concludes as follows. A few HRM practices that had been considered as ‘best practice’ are now out of sync with today’s Corporate Korea as environments shifted; if irregular workers take up bigger proportion, universalistic HRM practices are called for to make a difference. Further to this study, we enumerated the four areas that need more research, and we came up with a layout of how our future research work will develop.
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