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HRM bundles and organizational trust
Author(s) -
Ahteela Riikka,
Vanhala Mika
Publication year - 2018
Publication title -
knowledge and process management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.341
H-Index - 44
eISSN - 1099-1441
pISSN - 1092-4604
DOI - 10.1002/kpm.1561
Subject(s) - business , knowledge management , competence (human resources) , confirmatory factor analysis , human resource management , interpersonal communication , variance (accounting) , human resources , ambidexterity , psychology , management , computer science , marketing , social psychology , economics , accounting , service (business)
According to the resource‐based view of the firm, a firm can be competitive only if its resources are unique and valuable. Therefore, the good functioning of the internal organization, including good human resource management (HRM) and high levels of trust, is considered to be a strategic issue and a critical source of competitiveness. It is also said that one of the growing challenges for HRM is to build a positive cycle of trust in the organization. This study aims to show the effects of HRM bundles, also known as HRM clusters, on various dimensions of organizational trust (interpersonal and impersonal). Confirmatory factor analysis, cluster analysis, and analysis of variance are used to analyze data from 14 organizational units in the information and communication technology and forest industries in Finland. The major finding is that among all the dimensions of organizational trust, only trust in other employees' competence and benevolence differs among the three HRM clusters.