The student Ane Sánchez Zeziaga obtained an EXCELLENT CUM LAUDE grade

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The student Ane Sánchez Zeziaga obtained an EXCELLENT CUM LAUDE grade

THESIS

The student Ane Sánchez Zeziaga obtained an EXCELLENT CUM LAUDE grade

2023·11·15

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  • Thesis title: Systemic and Temporal Analysis of the Relationship between HR Practices, Employee Well-being, and Organisational Performance: a System Dynamics Study

Court:

  • Presidency: Aitor Aritzeta Galan (UPV/EHU)
  • Vocal: Álvaro Lleó de Nalda (Universidad de Navarra)
  • Vocal: Unai Elorza Iñurritegui (Mondragon Unibertsitatea)
  • Vocal: Brigitte Kroon (Tilburg University)
  • Secretary: Urtzi Uribetxebarria Andres (Mondragon Unibertsitatea)

Abstract:

Although the Strategic Human Resource Management (SHRM) field has extensively demonstrated the positive influence of Human Resource Management (HRM) on Organisational Performance (OP) and employee well-being (WB), further research is needed to gain a detailed understanding of how this relationship unfolds. The literature would seem to suggest that successful HR practice implementation lies not only in the practice content itself, but also in the implementation process.

To analyse the effect of Human Resource (HR) practice implementation processes on OP and employee WB, we incorporate the temporal dimension into the analysis. By adopting a systemic and dynamic approach, it is possible to address the primary objective of this study, which is to demonstrate that employee WB and OP are influenced by the perception of employees of the HR practices implemented in their work environment. Furthermore, we examine how this perception varies according to the implementation process of these practices, which is determined by both the decision-making approach (proactive or reactive) and organisational resources.

The achievement of the primary objective is possible through the development of a simulation model based on the system dynamics (SD) methodology. This methodology facilitates the study of both the short-term and long-term effects of HR practice implementation, as well as the identification of intended and unintended consequences that may arise.

The simulation model combines both qualitative and quantitative data. Qualitative information was taken from 41 group model building (GMB) sessions developed in 23 industrial organisations in the Basque Country (Northern Spain) during 2017 and 2020. This was supplemented by insights from seminal literature on the HRM-WB-OP relationship. On the other hand, quantitative data was gathered from the Bateratzen database. The developed simulation model captures and connects three subsystems: (i) the effect of HR practices that are implemented driven by the desire to maximise OP outcomes, (ii) the effect of HR practices that are implemented driven by the desire to maximise employee WB, and (iii) the effect of actions that are implemented to simultaneously improve OP and employee WB.

The results of the study demonstrate that the HR practice implementation process significantly affects OP and employee WB. Depending on whether the implementation is constant or variable over time, OP and employee WB are impacted accordingly. This implies that the decision-making approach taken by managers (prioritising short-term or long-term organisational goals) determines the implementation process and, consequently, the outcomes in terms of OP and employee WB.