The effects of collectivism-high performance work system and leader-member-exchange on organizational performance in the Thai hospitality industry
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2016
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2559
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eng
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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Wichai Limpitikranon (2016). The effects of collectivism-high performance work system and leader-member-exchange on organizational performance in the Thai hospitality industry. Retrieved from: https://repository.nida.ac.th/handle/662723737/5048.
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The effects of collectivism-high performance work system and leader-member-exchange on organizational performance in the Thai hospitality industry
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Abstract
Drawing on the resource-based view (RBV) theory and social exchange theory
(SET), this paper explores the relationship between collectivism-high performance
work system, leader-member-exchange, human capital, and organizational citizenship
behavior, together with their effects on the hotel performance in the Thai hospitality
context.
The objectives of the study include: 1) to study the current situation of HRM practices in the Thai hospitality industry; 2) to uncover the HRM practices that have a direct impact on organizational performance, examining particularly the human capital and employee behavior dimensions; and 3) to examine the leader-member-exchange relationship that has a direct impact on organizational performance, finding a linkage within human capital and employee behavior. The proposed path analytic model was tested using structural equation modeling to evaluate the theoretically-specified constructs and to collect data in order to validate the measures and examine the proposed causal relationship models. Using survey data gathered from 420 hotel staff members in Bangkok, the statistical results revealed that the proposed model had a significant mediating effect that contributed to hotel performance. Based on the causal path model, organizational citizenship behavior was the key enabler for hotel performance. These findings revealed that the collectivist-high performance work system and leader-member-exchange were key antecedent factors and had a direct effect on hotel performance. However, human capital had only an indirect effect on hotel performance. This appears plausible since higher human capital may not lead to organizational performance, which requires the interaction of leader-memberexchange relationship and the collectivism-high performance work system to interact with the organizational citizenship behavior that directly affects hotel performance.
Regarding the theoretical contribution, the author suggests the finding on the epistemological dimension of relationship with employees both leader and organization. An organization cannot improve performance by itself. The leadermember-exchange relationship is the basis of organizational performance creation. The organization has to mobilize human capital-competence, attitudes and motivation to work, and creativity and innovativeness created and accumulated at the individual level. The mobilized human capital is “organizationally” amplified through the leader-member-exchange and the collectivism-high performance work system accumulated and performance is leveraged at higher ontological levels. The author also suggests the “performance spiral” in which the interaction between LMX and collectivism-HPWS will synergize creating a higher OCB level as it moves up to the ontological levels. Thus, organizational performance creation is a spiral process, beginning at the individual level and moving up through the team level and, finally, the organization level.
Regarding its practical contributions, the present study provides HR management and line managers with useful insights. This dissertation provides a better understanding of the sequence of mechanism-HR practices and the social exchange relationship with the leader in enhancing hotel performance. As hotel performance is a function of both the employee and the system, top executives, line managers, and human resource managers need to focus on collectivism-HPWS as the organizational logic for making human resources a strategic asset. As a strategic tool, various elements of collectivism-HPWS can create synergy with the leader-memberexchange relationship which will enhance hotel performance and create a competitive advantage
The objectives of the study include: 1) to study the current situation of HRM practices in the Thai hospitality industry; 2) to uncover the HRM practices that have a direct impact on organizational performance, examining particularly the human capital and employee behavior dimensions; and 3) to examine the leader-member-exchange relationship that has a direct impact on organizational performance, finding a linkage within human capital and employee behavior. The proposed path analytic model was tested using structural equation modeling to evaluate the theoretically-specified constructs and to collect data in order to validate the measures and examine the proposed causal relationship models. Using survey data gathered from 420 hotel staff members in Bangkok, the statistical results revealed that the proposed model had a significant mediating effect that contributed to hotel performance. Based on the causal path model, organizational citizenship behavior was the key enabler for hotel performance. These findings revealed that the collectivist-high performance work system and leader-member-exchange were key antecedent factors and had a direct effect on hotel performance. However, human capital had only an indirect effect on hotel performance. This appears plausible since higher human capital may not lead to organizational performance, which requires the interaction of leader-memberexchange relationship and the collectivism-high performance work system to interact with the organizational citizenship behavior that directly affects hotel performance.
Regarding the theoretical contribution, the author suggests the finding on the epistemological dimension of relationship with employees both leader and organization. An organization cannot improve performance by itself. The leadermember-exchange relationship is the basis of organizational performance creation. The organization has to mobilize human capital-competence, attitudes and motivation to work, and creativity and innovativeness created and accumulated at the individual level. The mobilized human capital is “organizationally” amplified through the leader-member-exchange and the collectivism-high performance work system accumulated and performance is leveraged at higher ontological levels. The author also suggests the “performance spiral” in which the interaction between LMX and collectivism-HPWS will synergize creating a higher OCB level as it moves up to the ontological levels. Thus, organizational performance creation is a spiral process, beginning at the individual level and moving up through the team level and, finally, the organization level.
Regarding its practical contributions, the present study provides HR management and line managers with useful insights. This dissertation provides a better understanding of the sequence of mechanism-HR practices and the social exchange relationship with the leader in enhancing hotel performance. As hotel performance is a function of both the employee and the system, top executives, line managers, and human resource managers need to focus on collectivism-HPWS as the organizational logic for making human resources a strategic asset. As a strategic tool, various elements of collectivism-HPWS can create synergy with the leader-memberexchange relationship which will enhance hotel performance and create a competitive advantage
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Dissertation (D.P.A.)--National Institute of Development Administration, 2016