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8/2/2019 The Structure and Function of Human Capital Emergence
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Robert E. PloyhartUniversity of South Carolina
Jeff A. WeekleyKenexa
Kathryn BaughmanGeorge Mason University
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Discussion OutlineThe Structure and Function of Human Capital Emergence: A Multilevel
Examination of the Attraction-Selection-Attrition Model
Abstract
Theoretical Background and Hypothesis
The ASA Model and Human Capital
Homogeneity Hypothesis
Multilevel Theory
Present Study: Integrating the ASA model with Multilevel Theory
Findings
Methods
Setting, Participants, and Procedures
Measure
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Results Analyses
Hypothesis tests
Discussion
Theoretical Implication
Managerial Implication
Limitation
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The ASA Model and Human Capital
Human Capital refers to the aggregate Knowledge, Skills,Abilities and other competencies of an organizationsworkforce KSAO.
The ASA Model is a person based model of theorganization, meaning that it is grounded in the view thatthe structures, processes, and cultures of organizationsreflect their job incumbents collective personality.(Schneider, 1987)
A powerful framework for understanding the creation ofhuman capital is the attraction-selection-attrition (ASA)model. (Schneider, 1987)
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Homogeneity Hypothesis According to the ASA Model, through the process of
attracting, selecting, and retaining individuals, an
organization increasingly moves toward homogeneity in
knowledge, skills, abilities and other competencies.
Members of the same organization (individuals within
organizations) should be more similar in shared
personality than members of different organizations(individuals between organizations).
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Multilevel Theory It is not clear how to best conceptualize homogeneity,
measure it or understand its effects (Schneider et al.,
1995).
Multilevel research addresses the inherent nested nature of
organizational behavior, conceptualizing individuals as
nested within groups, groups nested within organizations
and so forth.
Bond strengthadjacent levels are more tightly coupled
and interconnected than levels that are farther apart.
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Emergencelow level constructs (e.g. individual
attitudes) form higher level constructs (e.g. organizationalclimate).
Two structures of emergence:
Composition Modelfocuses on consensus
- within unit observations will be similar that they can beadequately aggregated and represented by a units mean
score.
Compilation Modelfocuses on dissensus
- show how variance in lower-level observationsrepresent a higher level construct that can be estimated as a
units standard deviation.
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Integrating ASA Model with
Multilevel Theory Five factor model to describe individual level personality
to explain organizational collective personality (Costa &
McCrae, 1992)
1. Emotional stability
2. Extraversion
3. Openness
4. Agreeableness
5. Conscientiousness
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Findings Emotional stability
- Jobs and organizations with higher mean levels of
emotional stability will have members more likely to work
together and back each other up resulting to higherindividual performance and satisfaction.
- In contrast, greater variance in job and organizational-
level emotional stability should negatively relate to
individual performance and satisfaction. (Moynihan &
Peterson, 2004;Stewart, 2004)
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Conscientiousness
- Teams with more conscientious members are morereliable and hard working, and they are more likely to
adopt task-oriented norms that would positively relate to
individual performance and satisfaction
- In contrast, greater variance in job and organizational-
level conscientiousness should negatively relate to
individual performance and satisfaction because of
compensation for unreliable co-workers.
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Agreeableness
- Individuals within jobs and organizations containingmore agreeable members should exhibit better service
performance and satisfaction because their co-workers are
more likely to assist and help with service provision.
- Variability in team members agreeableness negatively
relates to team attitudes and performance because it
contributes to more conflict and less cohesion and
communication.
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Extraversion
- Team-level mean extraversion has been linked to teamcohesion, reduced conflict viability and performance
resulting to positive relationships to individual satisfaction
and performance. (Barrick et al., 1998; Neuman & Wright,
1999)- Job and organizational-level variance in extraversion
should show negative relationships to individual
satisfaction and performance because of lower
communication that disrupts individual behavior. (Barricket al., 1998; Barrick, Stewart, & Piotrrowski, 2002)
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Methods Setting, Participants, and Procedures
Participants: 9, 603 employees from 85 jobs
in 12 organizations
Note: organizations all had multiple,
geographically distributed stores; from
service sector
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Participants in Organizations
Retail60 jobs in 9 organizationsHospitality20 jobs in 2 organizations
Health care2 jobs in 1 organization
That is, the theory was that individuals are nested
within jobs that are nested within organizations.
Individuals in a particular job within an organization
should have more similar personalities than
individuals from similar jobs but different
organizations. (Ployhart et al, 2006: 667)
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Service occupations share a number of team like
interaction processes, such as the need forcoworkers to back each other up during times of
peak demand, to work together for better service
provision, and share knowledge about customersand services to enhance the service experierience
(Schneider & Bowen, 1992, 1995; Ryan &
Ployhart. 2003).
Service organizations have always facedconsiderable challenges in attracting, selecting,
and retaining people (Hatch and Clinton, 2000).
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Race and Gender (Voluntary Basis)
Race data were missing for 1, 966 individualsGender data were missing for 1, 002 people
Race PercentageWhite 84
African-American 7.9
Hispanic 5.4
Asian 1.8
Native American o.8
Gender(Sex)
Percentage
Female 53.7
Male 47.3
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Measures
SatisfactionHackman and Oldhams (1975) three-item measure (two items
tapping overall satisfaction and one item pertaining to
intentions to quit)
The type of job satisfaction measure did not greatly affect thevalidity of the personality-job satisfaction relationship (Judge
et al, 2002) findings: reasonable degree of generalizability
Performance
Supervisory ratings of customer service (20 items; Example:Responds immediately to any and customer requests)
Citizenship performance (30 items; Example: Volunteers for
things that are not required)
Note: The researchers only had 3, 925 participants
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items: based on job analysis and on comprehensive reviews
of service and contextual performance; 5-point scale
Personality
Personality profile (25 items)developed by Kenexa, an
HR consulting firm(Table 2)
Two studies have demonstrated the construct validity of
these measures.
1. Goldhabers (1992) five-factor-model trait adjectivetrait
2. Goldhabers (1999) 50-item Likert measure of the five-
factor model
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Results Overview of the AnalysesThree-level Random Co-efficient Model (RCM) to estimate
the significance of the personality predictors at individual,job, and organization levels
Hypothesis Test (Table 3)Hypothesis 1
We expected job-level composition to be stronger thanorganizational-level composition
Testing(2 ways):
1. They examined the intraclass correlation (ICC[1]) from theRCM for each personality trait
2. They conducted Multivariate Analysis of Variance(MANOVA) using the personality constructs as the dependentvariable and job type as the categorical independent variable
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Results: Supports Hypothesis 1 and suggest that composition
within organization follows hierarchy and it is nested.Emotional stability, extraversion, agreeableness, and
conscientiousness can be used to distinguish between jobs and
organizations. (Ployhart et al, 2006: 670)
(Table 4)
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For job satisfaction, there were significant relationships for
individual-level emotional stability, job mean emotionalstability, and organizational mean emotional stability.(Ployhart et al, 2006: 670)
For job performance, there were significant relationships forindividual, job mean, organizational mean, and organizational
variance emotional stability, and a significant organizationalmean by variance interaction. (Ployhart et al, 2006: 670)
Figure 1: Organizational mean and performance were morestrongly related when variance was lower (Ployhart et al, 2006:670).
For job satisfaction and job performance, there weresignificant relationships for individual-level conscientiousness,
job mean conscientiousness, and organizational meanconscientiousness. (Ployhart et al, 2006: 670)
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For job satisfaction, relationships were significant only
for individual-level, job-mean-level, and job variance
agreeableness. (Ployhart et al, 2006: 671)
For job performance, relationships were significant only
for individual and job mean agreeableness. (Ployhart et
al, 2006: 671)
For both job satisfaction and performance, there were
significant relationships for individual-level, job mean,
and variance scores, and their interaction, and fororganizational mean extraversion. (Ployhart et al, 2006:
671)
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Discussion Such a multilevel integration addresses several recent calls
for building bridges between micro and macro levels ofHR research
Argues that homogeneity is really a form of emergence
Multilevel theory composition process operate inhierarchical manner, emerging more strongly at lowerlevels
Individuals with more emotional stability,
conscientiousness, agreeableness, and extraversion = moresatisfaction and performance
More variance less satisfaction and lower performance
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Theoretical Implication The consequences of homogeneity may be better
conceptualized in terms of a units variance rather than
mean, and such a conceptualization would require a
fundamental change in the framing and testing the ASA
model. (Ployhart et al, 2006:673)
A multilevel ASA model provides an important vehicle
for such integration because it describes why marco HR
practices should influence the emergence of human
capital. (Ployhart et al, 2006:673)
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Managerial Implications Classic individual level approach - firms hire individuals
with more emotional stability, conscientiousness,
agreeableness, and extraversion
Recruitment phase: emphasis of 4 traits (part of
organizations personality) attract and retain
individuals with similar personalities
Selection phase: selection = job-specific factors +matching personality of applicant and coworkers in job
and organization
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Limitations 1. Researchers should clearly seek to replicate these
findings with different measures and samples. (Ployhart
et al, 2006:674)
2. The personality and satisfaction measures werecollected in the same session and may have been affected
by common source bias. (Ployhart et al, 2006:673)
3. We cannot be sure homogeneity was not affected by
participants responding to the personality measures in themanner consistent with what they believed the
organization expected or valued, rather than with their true
personalities. (Ployhart et al, 2006:673)
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4. We did not examine the processes through which job-
and organization-level personality were expected to affect
job satisfaction and performance. (Ployhart et al,
2006:673)
5. Our data were cross-sectional, and we did not examine
the longitudinal processes through which emergence
occurs. (Ployhart et al, 2006:673)
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