Exploration of the impact of institutional factors on actors in the implementation of effective high

449 Pages·2014·3.86 MB·English

by  Renad Rajab

Exploration of the impact of institutional factors
on actors in the implementation of effective high
performance work system

A Thesis submitted for the degree of Doctor of Philosophy

By

Hayam Binjabi

Brunel Business School
Brunel University - London

February 2014
Abstract

The current volume of research in the field of High Performance Work
Systems (HPWS) is focused on identifying the factors, which influence their
effectiveness. The realisation that there is a need to move forwards from the
structural aspects of HPWS towards understanding their implementation has
led to two new sectors of research. The first sector is investigating the role of
actors in implementation using aspects such as cross functionality, shared
responsibility and interaction. Another sector is investigating the impact of
contextual factors on the implementation of HPWS. This research has
combined the two sectors and looks at the implementation of HPWS from the
perspectives of both the actors and the environment. This research investigates
how the interaction between actors affects the implementation of HPWS.
Also how internal and external institutional factors affect this interaction as
well as the implementation. This research is qualitatively based on an
interpretivist paradigm. Case study research design was used to conduct the
research. Two Saudi Arabian banks were selected as case studies. Data was
collected using 54 semi-structured interviews and 61 focus group interviews.
Data about implementation and the impact of institutional factors was
obtained through semi-structured interviews with human resource managers,
line managers and senior managers. Data about employee outcomes was
obtained using focus group interviews with the employees. This research finds
evidence of conflict between the intended and actual outcomes of HPWS in
the Saudi banking sector due to institutional pressures. This research
contributes and extends the growing body of research on HPWS
implementation by including the interaction of actors and accounting for
institutional pressures. The finding highlights that the combination of these
two factors are contextual institutional conductors and contribute to diversity
in the implementation of HPWS practices. The managerial benefit of this
research is that its model can help practitioners to improve their social
interaction conditions for better performance.

I
Acknowledgement

This PhD thesis has been prepared for the degree of Doctor of Philosophy at Brunel
University.

First, I would like to thank the all mighty Allah for giving me the strength to
overcome one of the most significant challenges of my academic life despite all the
hardships. At times, I could only draw strength from his blessings which I was sure
were with me.

I dedicate this thesis to my mother (Wahba Mallatani), my father (Ahmed Binjabi),
my husband (Isam Rajab), my daughters (Lujain, Thraa, Renad and Basma), my
brothers, sisters and the rest of the family. They have stood by me at every step of
life and I could not have fulfilled my dreams without their continuous support and
motivation.

This thesis involved a lot of hard work but it has also been rewarding and interesting.
This thesis has provided me with an opportunity to develop my skills within the area
of Human Resource Management and I hope that it can contribute to present research
as well as serve as an inspiration for future studies. However, this thesis would not
have become reality if it was not for a number of people who all contributed to make
this study possible.

Next, I would like to thank my supervisors, Doctor Chima Mordi and Professor
Ashley Braganza at the Brunel University. They have through their guidance, advice
and constant support, contributed to improve the quality of this thesis. Further, I
would like to thank the respondents who took out time from their busy schedule to
participate in this study. Without their participation it would have been impossible to
achieve the desired results. Finally, I would like to thank my beloved family and
friends who has not only stood by for advice, support and encouragement during this
intensive time, but foremost because they never stopped believing in me.

Thank you all. May almighty Allah’s blessing be upon you forever.

II
Table ofContents

ABSTRACT ................................................................................................................... I
ACKNOWLEDGEMENT ............................................................................................. II
TABLE OFCONTENTS .............................................................................................. III
LIST OF TABLE .......................................................................................................... 1
LIST OF FIGURES ...................................................................................................... 3
CHAPTER 1: INTRODUCTION .................................................................................. 4
1.0 INTRODUCTION ....................................................................................................... 4
1.1 BACKGROUND TO THE RESEARCH PROBLEM .......................................................... 6
1.2 RESEARCH MOTIVATION ......................................................................................... 8
1.3 RESEARCH GAPS ..................................................................................................... 9
1.4 RESEARCH AIM, OBJECTIVES AND QUESTIONS ...................................................... 14
1.4.1 Research objectives .......................................................................................... 15
1.4.2 Research questions ........................................................................................... 15
1.5 RESEARCH METHODS AND TECHNIQUES ............................................................... 16
1.6 SIGNIFICANCE AND CONTRIBUTION OF THE STUDY .............................................. 20
1.6.1 Theoretical contribution to the understanding of the implementation of HPWS
20
1.6.2 Contribution to industry and policy ................................................................. 21
1.7 RESEARCH OUTLINE .............................................................................................. 21
CHAPTER 2: THE LITERATURE REVIEW ............................................................ 24
2.0 INTRODUCTION ..................................................................................................... 24
2.1 OVERVIEW ............................................................................................................ 24
2.2 THE CONCEPT OF STRATEGIC HUMAN RESOURCE MANAGEMENT AND HIGH
PERFORMANCE WORK SYSTEMS ......................................................................................... 26
2.2.1 Strategic human resource management (SHRM) ............................................. 26
2.2.2 SHRM and the resource based view (RBV) of the firm .................................... 27
2.2.3 SHRM theoretical approaches ......................................................................... 29
2.2.4 High performance work systems (HPWS) ........................................................ 31
2.2.5 High performance work system implementation .............................................. 34
2.3 LINE MANAGER-HR MANAGER INTERACTION IN IMPLEMENTATION OF HPWS ... 41
2.3.1 Role of line managers in HPWS implementation ............................................. 43
2.3.2 Role of HR managers in HPWS implementation .............................................. 46
2.3.3 HR- Line manager relationship in HRM .......................................................... 49
2.3.4 Co-ordination between line managers and HR managers ............................... 52
2.3.5 Role of reciprocity and trust within the line-HR collaboration ....................... 54
2.4 IMPLICATIONS OF CONTEXTUAL FACTORS ON THE LINKAGE BETWEEN SHRM AND
PERFORMANCE ................................................................................................................... 57
2.4.1 Impact of institutional factors on high performance work system ................... 59
2.5 IMPACT OF CULTURE ON HPWS ........................................................................... 68
2.5.1 Contextual pressures influencing HR managers and line managers ............... 76
2.6 SUMMARY OF THE LITERATURE REVIEW AND KEY FINDING ................................. 76
2.7 CONCLUSION......................................................................................................... 83
CHAPTER 3: THEORETICAL FRAMEWORK ....................................................... 84
3.0 INTRODUCTION ..................................................................................................... 84
3.1 INSTITUTIONAL THEORY ....................................................................................... 85
III
3.2 THE DEVELOPMENT OF THE THEORATICAL FRAMEWORK ..................................... 89
3.3 EFFECTIVENESS OF HIGH-PERFORMANCE WORK SYSTEM (HPWS) ...................... 89
3.3.2 HPWS IMPLEMENTATION ..................................................................................... 95
3.4 THE ROLE OF ACTORS IN THE IMPLEMENTATION OF HPWS EFFECTIVENESS ....... 98
3.4.1 Line manager involvement ............................................................................... 99
3.4.2 HR professional involvement on HPWS implementation ............................... 100
3.5 THE INTERACTION BETWEEN HR AND LINE MANAGERS..................................... 102
3.5.1 Interaction ...................................................................................................... 103
3.5.2 Cross-functional mobility ............................................................................... 104
3.5.3 Partnership ..................................................................................................... 104
3.5.4 Co-ordination ................................................................................................. 106
3.6 THE INFLUENCE OF INSTITUTIONAL FACTORS ON THE INTERACTION BETWEEN
LINE MANAGERS AND HR MANAGERS IN THE IMPLEMENTATION OF HPWS ................... 109
3.6.1 Normative institutional factors ....................................................................... 111
3.7 THE PROPOSED THEORATICAL FRAMEWORK ...................................................... 120
3.8 CONCLUSION....................................................................................................... 123
CHAPTER 4: RESEARCH METHODOLOGY ........................................................126
4.0 INTRODUCTION ................................................................................................... 126
4.1 RESEARCH OVERVIEW ........................................................................................ 127
4.2 RESEARCH PARADIGM ........................................................................................ 129
4.2.1 Positivism ....................................................................................................... 130
4.2.2 Interpretivism ................................................................................................. 130
4.2.3 Differences between positivism and interpretivism ........................................ 131
4.2.4 Justification for using interpretivism ............................................................. 131
4.3 RESEARCH APPROACH ........................................................................................ 134
4.3.1 Differences between qualitative and quantitative research strategies ........... 135
4.3.2 Justification for using a qualitative research strategy ................................... 135
4.4 RESEARCH STRATEGY: CASE STUDY .................................................................. 139
4.4.1 Research design for case selection (single versus multiple case studies) ...... 141
4.4.2 Number of case studies ................................................................................... 142
4.5 RESEARCH DESIGN .............................................................................................. 145
4.5.1 Unit of analysis .............................................................................................. 147
4.5.2 Case study protocol ........................................................................................ 148
4.5.3 Data collection procedures ............................................................................ 152
4.6 TECHNIQUES FOR ANALYSING AND INTERPRETING DATA (DATA ANALYSIS) ..... 167
4.6.1 Qualitative Content analysis .......................................................................... 169
4.6.2 Using NVivo9 ................................................................................................. 173
4.7 METHODOLOGICAL RIGOR (DATA RELIABILITY, VALIDITY) .............................. 174
4.8 ETHICAL ISSUES .................................................................................................. 179
4.9 SUMMARY ........................................................................................................... 180
CHAPTER 5: THE EMPIRICAL CONTEXT FOR THE RESEARCH: SAUDI
ARABIA ....................................................................................................................182
5.0 INTRODUCTION ................................................................................................... 182
5.1 THE STATUS OF THE KINGDOM OF SAUDI ARABIA ............................................. 182
5.2 OVERVIEW OF SAUDI ARABIA ............................................................................ 182
5.3 ECONOMY OF THE KINGDOM OF SAUDI ARABIA ................................................ 183
5.4 POLITICAL ENVIRONMENT .................................................................................. 186
5.5 LABOUR MARKET CONTEXT ................................................................................ 187
5.5.1 Labour Cost .................................................................................................... 189
5.5.2 Discipline and control .................................................................................... 190
5.6 THE INFLUENCE OF RELIGION ............................................................................. 190
IV
5.7 SAUDI NATIONAL CULTURE ............................................................................... 193
5.8 HRM IN SAUDI ARABIA ...................................................................................... 195
5.9 SAUDI BANKING SECTOR..................................................................................... 196
5.10 JUSTIFICATION FOR CHOOSING SAUDI BANKING SECTOR ................................... 198
5.11 SUMMARY ........................................................................................................... 199
CHAPTER 6: ANALYSIS AND DISCUSSION .........................................................200
6.0 INTRODUCTION ................................................................................................... 200
6.1 CASE STUDIES ANALYSIS .................................................................................... 201
6.2 BACKGROUND TO BANK ALPHA ......................................................................... 207
6.2.1 Context of bank Alpha .................................................................................... 207
6.2.2 Bank strategy .................................................................................................. 208
6.2.3 Information system ......................................................................................... 209
6.2.4 Saudi culture effects ....................................................................................... 210
6.2.5 A review of the impact of institutional factors on the current structure of HPWS
in the Saudi Arabian banking sector: the case of Bank Alpha .................................... 211
6.2.6 A review of HR and line managers’ interaction on the strategic structures of
high performance work system in bank Alpha ............................................................ 214
6.2.7 HR-line manager interaction in implementing HPWS recruitment and
selection: insights from bank Alpha ............................................................................ 220
6.2.8 HR-line manager interaction in implementing HPWS performance appraisal:
insights from bank Alpha ............................................................................................. 224
6.2.9 HR-line manager interaction in implementing HPWS- training and
development: insights from bank Alpha ...................................................................... 230
6.2.10 HR–Line manager interaction in implementing HPWS compensation:
insights from bank Alpha ............................................................................................. 235
6.2.11 HR-line manager interaction in implementing HPWS succession planning:
insights from bank Alpha ............................................................................................. 238
6.2.12 HR-line manager communication in implementing HPWS activities: insights
from bank Alpha .......................................................................................................... 240
6.3 OVERVIEW OF CASE STUDY OF BANK-BETA ...................................................... 242
6.3.1 Context of bank Beta strategy ........................................................................ 243
6.3.2 Information system ......................................................................................... 245
6.3.3 Culture influence ............................................................................................ 245
6.3.4 A review of the impact of institutional factors on the current structure of the
High Performance Work System (HPWS) in the Saudi Arabian banking sector: the case
of bank Beta ................................................................................................................. 247
6.3.5 A review of HR and line managers interactions on the strategic structures of
HPWS in bank Beta ..................................................................................................... 251
6.3.6 HR-line manager interaction in implementing HPWS recruitment and
selection: insights from bank Beta .............................................................................. 256
6.3.7 HR-Line manager interaction in implementing HPWS performance appraisal:
insights from bank Beta ............................................................................................... 262
6.3.8 HR-line manager interaction in implementing HPWS training and
development: insights from bank Beta ........................................................................ 270
6.3.9 HR-line manager interaction in implementing HPWS compensation: insights
from bank Beta ............................................................................................................ 275
6.3.10 HR-line manager interaction in implementing HPWS succession planning:
insights from bank Beta ............................................................................................... 279
6.3.11 HR-line manager communication in implementing HPWS activities: insights
from Bank Beta ............................................................................................................ 283
6.4 EMPLOYEE PERCEPTION AND SATISFACTION ...................................................... 286
6.4.1 Employee perceptions on HR role: insights from banks Alpha and Beta ...... 287
V
6.4.2 Employee satisfaction perceptions on the current HPWS; insight from banks
Alpha and Beta ............................................................................................................ 289
6.4.3 Employee perceptions on HPWS - recruitment and selection: insights from
banks Alpha and Beta .................................................................................................. 292
6.4.4 Employee perceptions on HPWS – performance appraisal: insights from banks
Alpha and Beta ............................................................................................................ 295
6.4.5 Employees’ perception on HPWS – training and development: insights from
banks Alpha and Beta .................................................................................................. 300
6.4.6 Employee perceptions in implementation of HPWS – compensation: insights
from banks Alpha and Beta ......................................................................................... 302
6.4.7 Employees’ perceptions on HPWS – succession planning: insights from banks
Alpha and Beta ............................................................................................................ 303
6.5 SUMMERY OF THE CASE STUDIES ........................................................................ 304
6.5.1 Case summary (bank Alpha) .......................................................................... 304
6.5.2 Case summary (bank Beta) ............................................................................ 305
6.5.3 Summary of employees’ satisfaction: insights from banks Alpha and Beta ... 306
CHAPTER 7: CROSS CASE ANALYSIS FINDINGS AND DISCUSSION ..............307
7.0 INTRODUCTION ................................................................................................... 307
7.1 THE CROSS-CASE ANALYSIS STRUCTURE ............................................................ 308
7.2 ANALYSIS OF THE CURRENT STATE OF HPWS IN THE TWO CASE STUDY BANKS 309
7.3 ANALYSIS OF THE ROLE OF INSTITUTIONAL FACTORS ON OVERALL HPWS
PRACTICES (THEME 1) ...................................................................................................... 312
7.3.1 Management factors ....................................................................................... 316
7.3.2 Industrial factors ............................................................................................ 320
7.3.3 Cultural factors .............................................................................................. 323
7.4 ANALYSIS OF HR-LINE MANAGER INTERACTION (AN INSTITUTIONAL FACTOR) ON
HPWS PRACTICES IN SAUDI ARABIAN BANKS (THEME 2) ............................................... 327
7.4.1 Management influence ................................................................................... 330
7.5 ANALYSIS OF THE IMPACT OF COMMUNICATION (AN INSTITUTION FACTOR) ON
THE INTERACTION BETWEEN HR AND LINE MANAGERS .................................................. 334
7.6 ANALYSIS OF THE CAUSAL MECHANISM FACTORS IMPLICATION ON HPWS
PRACTICES IMPLEMENTATION.......................................................................................... 338
7.6.1 Analysis of HR-line manager interaction and institutional factors on employee
perceptions in implementing recruitment and selection practices in Saudi banks...... 338
7.6.2 Analysis of HR-line manager interaction and institutional factors on employee
perception in implementing performance appraisal practices in Saudi banks ........... 343
7.6.3 Analysis of HR-line manager interaction and institutional factors on employee
perceptions of the training and development strategy of Saudi banks ........................ 348
7.6.4 Analysis of the impact of HR-line manager interaction and institutional factors
on compensation practices in terms of employee perception ...................................... 349
7.6.5 Analysis of the impact of HR-line manager interaction and institutional factors
on succession planning strategy in terms of employee perception .............................. 351
7.8 EVALUATION OF EMPLOYEE PERCEPTIONS RELATED TO HPWS PRACTICES IN
SAUDI BANKING SECTOR .................................................................................................. 357
7.9 CONCLUSION....................................................................................................... 359
CHAPTER 8: REVISED FRAMEWORK .................................................................360
8.0 INTRODUCTION ................................................................................................... 360
8.1 KEY OBSERVATIONS FROM THE CROSS-CASE ANALYSIS FINDINGS .................... 362
8.2 THE CURRENT STATURE OF HPWS IN THE SAUDI BANKING SECTOR ................. 363
8.2.1 General observations ..................................................................................... 363
8.2.2 Impact of institutional factors ........................................................................ 363
VI
8.3 THE CURRENT STRUCTURE OF HPWS STRATEGY IN THE SAUDI BANKING SECTOR
363
8.3.1 General observation ....................................................................................... 363
8.3.2 HR-line manager interaction ......................................................................... 364
8.3.3 Impact of institutional factors ........................................................................ 364
8.3.4 Employee outcomes ........................................................................................ 364
8.4 THE EFFECT OF INSTITUTIONAL FACTORS ON HR-LINE MANAGER INTERACTION IN
IMPLEMENTING RECRUITMENT AND SELECTION OF HPWS AND ITS CONSEQUENCE ....... 365
8.4.1 General observation ....................................................................................... 365
8.4.2 Impact of institutional factors ........................................................................ 365
8.4.3 Interaction between line managers and HR managers .................................. 366
8.4.4 Employee outcomes ........................................................................................ 366
8.5 THE EFFECT OF INSTITUTIONAL FACTORS ON HR-LINE MANAGER INTERACTION IN
IMPLEMENTING PERFORMANCE APPRAISAL OF HPWS AND ITS CONSEQUENCE .............. 366
8.5.1 General observation ....................................................................................... 366
8.5.2 Interaction between line managers and HR managers .................................. 366
8.5.3 Impact of institutional factors ........................................................................ 367
8.5.4 Employee outcomes ........................................................................................ 367
8.6 THE EFFECT OF INSTITUTIONAL FACTORS ON HR-LINE MANAGER INTERACTION IN
IMPLEMENTING TRAINING AND DEVELOPMENT OF HPWS AND ITS CONSEQUENCE ........ 368
8.6.1 General observation ....................................................................................... 368
8.6.2 Interaction between line managers and HR managers .................................. 368
8.6.3 Impact of institutional factors ........................................................................ 368
8.6.4 Employee outcomes ........................................................................................ 368
8.7 THE EFFECT OF INSTITUTIONAL FACTORS ON HR-LINE MANAGER INTERACTION IN
IMPLEMENTING COMPENSATION OF HPWS AND ITS CONSEQUENCE ............................... 369
8.7.1 General observation ....................................................................................... 369
8.7.2 Interaction between line managers and HR managers .................................. 369
8.7.3 Impact of institutional factors ........................................................................ 369
8.7.4 Employee outcomes ........................................................................................ 369
8.8 THE EFFECT OF INSTITUTIONAL FACTORS ON HR-LINE MANAGER INTERACTION IN
IMPLEMENTING SUCCESSION PLANNING OF HPWS AND ITS CONSEQUENCES ................. 370
8.8.1 General observation ....................................................................................... 370
8.8.2 Interaction between line managers and HR managers .................................. 370
8.8.3 Employee outcomes ........................................................................................ 371
8.9 THE MAIN INSTITUTIONAL FACTORS AFFECTING THE IMPLEMENTATION OF HPWS
IN THE SAUDI BANKING SECTOR ...................................................................................... 371
8.9.1 Professional factors ....................................................................................... 372
8.9.2 Management factors ....................................................................................... 372
8.10 LESSONS LEARNED FROM THE CASE STUDIES ..................................................... 372
8.11 CONCLUSION....................................................................................................... 376
CHAPTER 9: CONCLUSION ...................................................................................378
9.0 RESEARCH SUMMARY AND KEY FINDINGS ......................................................... 378
9.1 AN OVERVIEW OF FINDINGS OF THE CASE STUDIES ............................................ 384
9.2 ACHIEVEMENT OF OBJECTIVES ........................................................................... 387
9.3 THEORETICAL AND METHODOLOGICAL CONTRIBUTIONS AND MANAGERIAL
IMPLICATIONS .................................................................................................................. 393
9.3.1 Theoretical contributions ............................................................................... 393
9.3.2 Methodological contributions ........................................................................ 396
9.4 RECOMMENDATIONS FOR DECISION MAKERS ..................................................... 397
9.5 LIMITATIONS ....................................................................................................... 399
VII
REFRENCES.............................................................................................................401
APPENDIX 1: INTERVIEW QUESTIONS ...........................................................438
APPENDIX 2: QUESTIONS FOR THE FOCUS GROUP ....................................440

VIII
List of Table
Table 1.0: The starcture of the thesis ................................................................................. 22
Table 2.0: Studies on HPWS implementation-performance relationship ..................... 38
Table 2.1: Previous research that motivate this study ................................................. 79
Table 2.2: Summary of the pervious research gaps that this research aims to fill
............................................................................................................................................................. 81
Table 3.0: The practices of high performance work system (HPWS) ..................... 91
Table 4.0: Key differences between qualitative and quantitative research ...... 134
Table 4.1: Framework for case study research ........................................................... 149
Table 4.2: Interview protocol −questions addressed in the empirical study of
interviews .................................................................................................................................... 156
Table 4.3: Number of respondents by job function .................................................... 161
Table 4.4: Six stage interviews and the activities involved in each stage .......... 162
Table 4.5: Details of the focus group ................................................................................. 165
Table 4.6: Tests for establishing validity and reliability in case study research.
.......................................................................................................................................................... 175
Table 5.0: Employed Saudis (15 + year) by age group and gender ....................... 189
Table 6.0: Case analysis formats versus the research objectives ......................... 202
Table 6.1: Details of bank Alpha and bank Beta respondents ................................. 205
Table 6.2: Evidence mapping for institution factors theme impacting the
current HPWS practices in Bank Alpha ............................................................................ 211
Table 6.3: Evidence mapping for HR and line management interaction theme in
implementing HPWS practices in bank Alpha ............................................................... 214
Table 6.4: Evidence mapping for HR and line management interaction theme in
implementing recruitment and selection in bank Alpha........................................... 220
Table 6.5: Evidence mapping for institution factorstheme influencing the
relationship between HR and line managers in the implementation of
recruitment and selection in bank Alpha ........................................................................ 223
Table 6.6: Evidence mapping for HR and line manager interaction theme in
implementing performance appraisal PA in Bank Alpha .......................................... 224
Table 6.7: Evidence mapping for institution factors theme influencing the
relationship between HR and line managers in implementing performance
appraisal in Bank Alpha ......................................................................................................... 229
Table 6.8: Evidence mapping for HR and line managers’ interactiontheme in the
implementation of training and development in bank Alpha. ................................ 231
Table 6.9: Evidence mapping for institution factors theme influencing the
relationship between HR and line managers in the implementation of training
and development in bank Alpha. ........................................................................................ 233
Table 6.10: Evidence mapping for HR and line management interaction theme in
the HPWS compensation implementation in babk Alpha ......................................... 235
Table 6.11: Evidence mapping for institution factors theme influencing the
relationship between HR and line managers in the implementation of
compensation practices in bank Alpha ............................................................................ 237
Table 6.12: Evidence mapping for institutional factors theme affecting success
planning practices in bank Alpha. ...................................................................................... 239
Table 6.13: Evidence mapping for institutional factors theme affecting
communication in bank Alpha. ............................................................................................ 241
Table 6.14: Evidence mapping for institutional theme affects the current
HPWSpractices in bank Beta ................................................................................................ 247
1