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Article
Publication date: 27 June 2018

Nemanja Berber and Bojan Lekovic

The purpose of this paper is to research the impact of one of HRM activities, employees’ development, on the level of organizational innovative performances. HR…

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Abstract

Purpose

The purpose of this paper is to research the impact of one of HRM activities, employees’ development, on the level of organizational innovative performances. HR development techniques that organizations use in order to develop employee’s knowledge, skills and abilities and their impact on the perceived level of organizational innovativeness was set in the focus of research, with the intent of determining which development techniques influence organizational innovative performance.

Design/methodology/approach

The research is based on the data from CRANET project, which has been largely used in exploring the relation between HRM activities and other variables of organizational behavior and performances. Data for this study were collected from a sample of 1,384 organizations from 8 CEE countries (Croatia, Estonia, Hungary, Latvia, Lithuania, Slovakia, Slovenia and Serbia) for the period 2015–2016. The correlation was used to explore the relations between variables. Ordinal logistic regression was used in order to explore the relations between the employees’ development techniques, training importance and training effectiveness and the level of organizational innovativeness.

Findings

The regression model showed that there are a statistically significant relations between the effectiveness of training expressed by systematic evaluation of training practice, and the methods of employees’ training (use of projects to stimulate learning, on-the-job training, development centers, use of international work assignments and mentoring) with the level of innovation. The importance of training practice expressed by the ratio of the annual training budget in the total payroll costs did not show statistically significant relations with the level of innovation. Also, systematic estimation of the need for training of personnel has not shown statistically significant relations with the innovation rate of the organization.

Research limitations/implications

The data are derived from single source respondents, and response rates between countries do vary. At the country level, every effort is made to represent the structure of the economy in the country and at the point in which the data are being collected.

Practical implications

Training and international working assignments have a direct positive relation with the level of organizational performances, while teamwork and coaching and mentoring have not shown the same. Organizations and their HR managers should pay special attention to planning and implementation of HR development programs – coaching, mentoring and teamwork – in order to create space for organizational innovation enhancement.

Originality/value

Previous literature seeking to clarify the role of HRM and fostering organizational innovation has made its evident contribution based on theoretical papers. In order to improve the current situation in which empirical evidence is very rare, research on the significance of the employee development program and its impact on the organizational innovative performances is based on quantitative indicators of the conducted research. The relation of HRM and innovative performances in the CEE region was studied in only a few studies. In the previous period, this region has often been omitted in the field of HRM research. Therefore, an additional novelty can be derived from a research sample compiled from the CEE region countries in the conducted research.

Details

Employee Relations, vol. 40 no. 5
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 5 May 2020

Nemanja Berber, Agnes Slavic, Maja Strugar Jelača and Radmila Bjekić

The aim of this research is to investigate and detect determinants of the training practice and conspicuous differences in the sample of nine Central and Eastern European…

Abstract

Purpose

The aim of this research is to investigate and detect determinants of the training practice and conspicuous differences in the sample of nine Central and Eastern European (CEE) countries (Croatia, Estonia, Latvia, Lithuania, Hungary, Slovenia, Slovakia, Serbia and Romania). The study was conducted with three distinct objectives: the investigation of the training and development (T&D) practices in the CEE region, the investigation of the determinants of T&D practices in the CEE region and the measurement of the differences between the economies in the sample of CEE countries regarding their T&D practices.

Design/methodology/approach

The research is based on the Cranet research network results from 2015 to 2016. The data for the CEE countries were selected in order to investigate the determinants of T&D practice, and the differences between these economies. The nine CEE countries were divided into two groups, on the basis on the variety of capitalism (VoC approach), in order to investigate its effects on the T&D practices. T-test, chi-square test, Spearman correlation tests and hierarchical moderated regression model were used to test the proposed hypotheses.

Findings

There are statistically significant differences between the organizations from coordinated market economy (CME) countries and liberal market economy (LME) countries in the case of the percentage of GDP of the country spent on education, the percentage of annual payroll costs of the organizations spent on training, the percentage of annual staff turnover, the implementation of the systematic evaluation of training needs, the training effectiveness, the existence of T&D strategy and the primary responsibility for major policy decisions on T&D. The results of the regression model showed that the majority of national and organizational level factors have a statistically significant relationship with the percentage of the annual payroll costs of the organization spent on training. Variety of capitalism moderates the relationship between independent variables and the dependent variable, too.

Research limitations/implications

In the presented model, the authors excluded from their investigation the effects of MNCs. It must further be stated that only the data from the latest Cranet research round were used, thus it was not possible to investigate the development of the training practice in CEE over a longer time period. These limitations could be used as possible directions for further research in the relevant area of HRM in the CEE region.

Originality/value

Since there is relatively little empirical research in the relation between capitalism type and T&D practice, especially in the region of CEE, the present paper lends new insight into this issue as well as into comparative HRM. It is hoped that this work can be taken as a starting point for further research.

Details

Employee Relations: The International Journal, vol. 42 no. 4
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 9 March 2020

József Poór, Allen D. Engle, Ildikó Éva Kovács, Michael J. Morley, Kinga Kerekes, Agnes Slavic, Nemanja Berber, Timea Juhász, Monica Zaharie, Katerina Legnerova, Zuzana Dvorakova, Marzena Stor, Adam Suchodolski, Zoltán Buzády and Ainur Abdrazakova

We explore the effects of three organizational variables (country of origin of the multinational company (MNC), the timing of entry into the European Union and the mode of…

Abstract

Purpose

We explore the effects of three organizational variables (country of origin of the multinational company (MNC), the timing of entry into the European Union and the mode of establishment of the MNC subsidiary unit) on the human resource management (HRM) practices being pursued by subsidiaries of large MNCs operating in selected countries in Central and Eastern Europe (CEE) and the Former Soviet Union. Furthermore, we examine whether the degree of autonomy afforded to the subsidiary over its preferred HR recipes is related to overall local unit performance.

Design/methodology/approach

We profile the HRM practices of 379 foreign owned subsidiaries located in Bulgaria, Croatia, The Czech Republic, Kazakhstan, Poland, Hungary, Russia, Romania, Serbia and Slovakia. Using descriptive statistics, we present the general characteristics of the sample and we then use bivariate statistical analysis to test our hypotheses relating to the impact of different organizational factors on the HR practice mix implemented in the MNC subsidiaries covered in our survey.

Findings

We find a significant correlation between the annual training budget, the importance of knowledge flow from headquarters (HQs) to the subsidiary and the perceived criticality of training and development and whether the subsidiary is a greenfield site or an acquisition. A correlation was also found between the national timing of EU membership (older members, newer and then candidate countries and non-EU members) and three HR practice variables: the use of expatriates, external service providers and employee relations practices.

Research limitations/implications

Our research calls attention to the issue of balancing the efficiencies of standardization with the local preferences and traditions of customization which results in more successful MNC control and ultimately higher levels of performance. It also calls attention to the challenges in pursuing research of this nature over time in the CEE region, especially given the dynamic nature of the MNC mix in each of the countries.

Practical implications

Our findings serve to reduce the information gap on foreign-owned companies in CEE and the Former Soviet Union.

Originality/value

Despite some 30 years of transition, there remains a paucity of empirical research on the HR practices of MNCs across a number of countries in the CEE region. For a decade and a half, the CEEIRT group[1] has been systematically gathering empirical evidence. The combination of the breadth (10 countries) and depth (numerous items related to MNC subsidiary relationships with corporate HQs and patterns of HR practices and roles) characterizing the ongoing research effort of the CEEIRT collaboration serves as a mechanism for augmenting the empirical base on HRM in the region.

Details

Employee Relations: The International Journal, vol. 42 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

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