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The Relationships Between MBO System Strength and Goal‐Climate Quality and Strength
Author(s) -
Aksoy Eda,
Bayazit Mahmut
Publication year - 2014
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.21603
Subject(s) - optimal distinctiveness theory , context (archaeology) , consistency (knowledge bases) , quality (philosophy) , variance (accounting) , human resource management , quality management system , process management , business , environmental resource management , computer science , psychology , quality management , operations management , management system , knowledge management , accounting , economics , social psychology , geography , archaeology , epistemology , artificial intelligence , philosophy
We adopted Bowen and Ostroff's ([Bowen, D. E., 2004]) HRM system strength concept so as to test it within the context of a management by objectives ( MBO ) system, which was utilized by six independent firms owned by a large, diversified family business group in Turkey. For this purpose, we surveyed the middle managers to measure 10 context‐specific metafeatures of the MBO system. By using aggregated scores at the functional group level (N = 47), we captured the distinctiveness, consistency, and consensus dimensions of this HRM practice. We tested and compared three alternative theoretical models of HRM strength where the three dimensions have compensatory, additive, and distinctiveness mediated effects on climate quality and strength. Results support the compensatory model and indicate that the strength of the MBO system (as a reflective latent variable representing the shared variance of the system's distinctiveness, consistency, and consensus) is positively related to business units’ quality and strength of goal climate. In addition, distinctiveness—but not consistency and consensus—of the MBO system appears to be particularly critical for the emergence of a strong and high‐quality goal climate. Lastly, implications and limitations of the study as well as possible future research directions are discussed. © 2014 Wiley Periodicals, Inc.