Performance managers as HRM inmplementers : are they effective? : a study on the perceived effectiveness of HRM implementatino by performance managers

For any company, it is important to have satisfied employees. For KPMG, it is no different. Humans are their most valuable asset. However, results of a satisfaction survey in 2010 at KPMG were rather critical and showed that employees are unsatisfied with or cannot recognize the human resource intentions of KPMG. This prompt the question at KPMG whether first-line managers (performance managers) are able to implement KPMG’s intended HR practices. This thesis aims (1) to explore whether first-line managers experience limitations in implementing HR practices, (2) to investigate how employees judge the effectiveness of HR implementation by their first-line manager, (3) to examine whether the hindering factors influence the perceived effectiveness of HR implementation and (4) to explore to what extent the relationship between supervisor and subordinate influence the perceived effectiveness of HR implementation. The main question in this study is “to what extent do first-line managers implement HRM practices effectively? ” The study is conducted in the accountable unit Public sector. There are nine performance managers and sixty-one employees working for this unit. Data is gathered by quantitative and qualitative research. Interviews were held with performance managers and employees to gather general information. Performance managers filled in a questionnaire (100% response rate) to measure five constraining factors (independent variable): desire, capacity, competences, support and policies & procedures. Employees filled in a questionnaire (61% response rate) to evaluate the quality of the relationship with their performance manager (independent variable) and the perceived effectiveness of the HR implementation by their performance manager (dependent variable). Data is analysed by using reliability analyses, correlation analyses and a regression analysis. The results show that performance managers implement HR practices effectively. This study provide no evidence that performance managers are hindered by the five constraining factors in the implementation of HR practices. Although, individual perceptions about the support of the HR department vary. The study shows that employees evaluate the effectiveness of HR implementation by their performance managers as reasonably high. The five hindering factors have no effect on the perceived HR implementation by employees. There is evidence that the quality of the relationship between performance managers and employees influence the perceived effectiveness by employees. It is found that almost 40% of the perceived effectiveness of HR implementation can be explained by the quality of the relationship between performance manager and employee. 2 Practical recommendations for KPMG are (1) to be clear about roles & responsibilities by providing clear policies & procedures, (2) to provide sufficient support for performance managers, (3) to pay attention to the relationship between performance managers and employees and (4) to conduct a study to the content of the HR practices. This study empirically supports that the quality of the relationship between supervisor and subordinate (measured by LMX) should be included in scientific research to perceived effectiveness. Furthermore, in further research it is recommended to evaluate the effectiveness of HR practices by both measuring the content (quality of the HR practices) and the process (quality of implementation). Another suggestion for further research is to study the (in)effectiveness of HR devolution.