Analysis of Organizational Effectiveness Antecedents: Focus on Human Resource Management Practice and Moderating Effect of Firms's the Status Quo

Abstract

Purpose – In a difficult time for a firm, it seems impossible to change circumstances by a firm. Nevertheless, the firm must do whatever it can do by however it can do. Therefore, the purpose of this study is to analyze the effect of HRM practice on organizational effectiveness with the status quo of the firm as a moderator. Based on the result of this study, the managerial implication could be suggested as a contextual response to each status quo of the firm in improving and managing organizational effectiveness by HRM practice. Research design, data, and methodology – This study measured organizational effectiveness with employee satisfaction and organizational commitment. HRM practice includes two HR management areas, HR system, and HR attitude. HR system includes education & training and additional wage welfare. HR attitude includes employee stress and empowerment. As for the status quo of the firm, this study considered three construct; firm feature, strategic feature, environment change feature. This study analyzed 397 employees of 24 company data from the 7th HCCP of KRIVET. The analysis methods used in this study were frequency analysis, reliability analysis, correlation analysis, and regression analysis by SPSS 22.0 and for moderating effect of the status quo of the firm was analysis by group comparison analysis by AMOS 22.0 using path analysis. Result – Hypothesis 1 through Hypothesis 3 were partially supported. The results of this study suggest that to increase organizational effectiveness(job satisfaction and organizational commitment), employee stress and education & training participation need to be managed. And circumstance of an organization as given the Status Quo of the firm needs to be managed differently like firm size, environment change in demand, and technology. Conclusion – This study suggests best-practice implications based on the result between HRM practice and organizational effectiveness. And also suggest differentiation in management to increase the best-fit in management.