The role of HR indicators on performance of Czech companies: A multi-sector perspective

Abstract

Rooted in the perspective of role theory, the use of human resource indicators to improve performance is a hugely important area in the HRM field, but most of our understanding on this comes from prior research on large firms. Importantly, our study looks at under-researched area of HR indicators to examine the size of company and ownership structure on HR indicators and decision making comprehensively on small, medium-sized and large firms specifically in the context of Central European region such as Czech Republic. To address recent calls in the literature for an investigation of this nature, this research examined the role of size of company, ownership structure on HR indicators for organizational performance at micro level (employee perspective). Data were collected by using survey-based questionnaire from 896 managers working in the Czech companies at various sector level. Chi-square test and Z -score of P-value were used. The results demonstrate that size of company and ownership structure are the key drivers of HR indicators at the workplace. More importantly, our research also suggests that ownership structure positively influences decision making by using HR indicators. To date, there is fairly limited has been done on HR indicators with respect to size of company and ownership structure in the Central European region specially in Czech Companies. Importantly, this research contributes to the nascent literature that positions HR indicators as an effect mechanism at the organizational setting at different sectoral level. Our research also suggest measures of HR indicators and present implications for both research and managerial practice.