Strategic HR system differentiation between jobs: the effects on firm performance and employee outcomes -- Schmidt et al, 2017

11 important questions on Strategic HR system differentiation between jobs: the effects on firm performance and employee outcomes -- Schmidt et al, 2017

What is the aim and research question of this study? (Schmidt et al., 2017)

The purpose is to understand whether firms apply different HRM systems to different occupations within the same organisation and to what extent they do so which may influence firm and employee outcomes and behaviours

What is meant with the universal approach/perspective with regards to this article? (Schmidt et al., 2017)

Best practice and improve performance for all employees

What is meant with the contingency approach/perspective with regards to this article? (Schmidt et al., 2017)

Context and situation (best fit), type and amount of HR
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This study is divided into two different studies, what does study 1 do? (Schmidt et al., 2017)

This study is based on data collected from managers; drew upon universal and contingency theories in strategic HR to understand firm-level investment

What does the second study do within this article? (Schmidt et al., 2017)

This study is based on data obtained from non-management employees; which examines how employees perception of HR differentiation within their organisations influences their turnover intentions and willingness to engage in organisational citizenship behaviours, as mediated by their perceptions of fairness

What are the three contributions of study? (Schmidt et al., 2017)

  • Develop theory about how HR system architecture influences employee and firm-level outcomes
  • helps to bridge the micro/macro divide in the literature by collecting firm-level data from senior managers and frontline employee attitudes from two different samples
  • practical implications by clarifying the types of costs that need to be considered by organisational decision-makers when determining how to allocate HR investments

What are the main variables of study one: which focuses on HR system differentiation between occupations within the same establishments? (Schmidt et al., 2017)

Universal perspective, contingency perspective and social exchange theory

What does the social exchange theory entail? (Schmidt et al., 2017) Scholars have applied this theory in order to explain how investments in HPWS engender greater loyalty and lower turnover among employees

Employees are likely to perceive that higher investments in their development, are personally beneficial, which will enhance their perceptions of social exchange relationship and increase their felt obligation to reciprocate (such as remaining loyal to the organisation)

Study 2 examined employee perceptions and attitudes about the fairness of HPWS differentiation between occupations within the organisation and how these attitudes may impact turnover intentions and organisational citizenship behaviours.
Herewith in regards to employee perception of strategic HR system differentiation the social comparison theory is suggested, what does this suggest? (Schmidt et al., 2017)


Suggests that people compare themselves to others to make a relative evaluation about their standing on salient attributions and outcomes. So they evaluate the favourability of HR practices compared to:
  • others in their organisations
  • others in other occupations

What does the group value model entail? (Schmidt et al., 2017)

Employees perceive organisational processes and interactions with leaders to be fair when they feel that they are a high-status group member

What does the group engagement model entail? (Schmidt et al., 2017)

Invest their social identities in groups when they perceive that the group treats them fairly.
Leading to:
  • Higher levels of commitment
  • Higher levels of engagement
  • Discretionary helping behaviour   

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