Commitment-based human resource management and organisational performance: An empirical study of small businesses in New Zealand

Date
2005
Authors
Liu, Yuan
Supervisor
Matheny, Jonathan
Item type
Thesis
Degree name
Master of Business
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Publisher
Auckland University of Technology
Abstract

Human resource management involves a set of activities that involve employees within organisations. The development of the concept of strategic human resource management requires systematic examination and an informed perspective. High commitment human resource systems aim to enhance employee commitment within organisations. High commitment human resource systems have close relationships to organisational performance. Management must therefore understand the ways in which organisational performance can relate to high commitment human resource systems in order to achieve a competitive advantage in today’s intensively competitive marketplace. Small businesses are important players in various economies; therefore, understanding how high commitment human resource systems relate to organisational performance in small businesses would be valuable. Despite the considerable benefit associated with knowledge of the relationship between high commitment human resource systems and organisational performance in small businesses, this area has not been specifically researched. This study empirically addresses these topical issues by asking: Are high commitment human resource systems related to organisational performance in New Zealand small businesses? In order to answer this question, this study develops a set of research propositions. A respondent group of small businesses completed a questionnaire designed to gather information regarding the relationship between high commitment human resource systems and organisational performance in small businesses. Statistical analysis of the data identified a number of interesting findings. The results indicate that small businesses conduct high commitment human resource systems with compliance and commitment human resource practices. Small businesses use compliance human resource practices much more widely than commitment human resource practices. The results of this study provide evidence that commitment human resource practices do exist in the context of small businesses; however, commitment human resource practices are unique to the context of small businesses, differing from those in larger organisations. This study also suggests that commitment human resource practices in small businesses do not relate to organisational performance with regard to employee turnover or financial performance as they do in larger organisations. This study emphasises the importance of an understanding of how high commitment human resource systems relate to organisational performance in the context of small businesses. The study also discusses implications for research areas and business practice, the limitations of the study, and suggestions for future research.

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Keywords
Personnel management -- New Zealand , Small business -- New Zealand
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