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Assessing HR department effectiveness: managerial perspective in Polish firms

International Journal of Contemporary Management

Volume 60 (2024): Issue 1 (March 2024)

By: Magdalena Majowska

Open Access

|Jun 2024

Figures & tables

Figures & Tables

Table 1.

Means, Standard Deviations for Study Variables

Descriptive Statistics
Variable	Observations	Mean	Std. Dev.	Min	Max
HR Dept. effectiveness (top)	150	4.16	0.36	3.00	5.00
HR Dept. effectiveness (HR)	149	3.85	0.41	3.00	5.00
HR Dept. effectiveness (line)	145	3.90	0.35	2.00	5.00
Org performance	150	4.15	0.38	2.86	5.00
Market performance	150	3.95	0.49	2.25	5.00
Employee productivity	140	13.02	0.89	10.52	15.35
Firm growth	141	107.69	25.71	0.00	213.33
Sales growth	140	18.11	86.58	-150.00	927.41

1 Source: Own study based on Stata 15 output.

Table 2.

Correlations for Study Variables

Correlations
Variable	HR Dept. effectiveness (top)	HR Dept. effectiveness (HR)	HR Dept. effectiveness (line)	Org performance	Market performance	Employee productivity	Firm growth	Sales growth
HR Dept. effectiveness (top)	1
HR Dept. effectiveness (HR)	0.077	1
HR Dept. effectiveness (line)	0.146*	0.494***	1
Org performance	0.881***	0.248***	0.318***	1
Market performance	0.603***	0.184**	0.321***	0.758***	1
Employee productivity	–0.032	0.077	0.020	–0.056*	–0.017	1
Firm growth	0.111	0.241***	0.277***	0.179**	0.305***	0.009	1
Sales growth	–0.001	0.129	0.093	0.039	0.111	0.009	0.168*	1

1 Significant estimates are marked with stars: *** p < 0.01, ** p < 0.05, * p < 0.1.

1 Source: Own study based on Stata 15 output.

Table 3.

Regression Results for Associations Between HR Department Effectiveness and Firms’ Outcomes

Variables	Org performance	Org performance	Org performance	Market performance	Market performance	Market performance	Sales growth	Sales growth	Sales growth
HR Dept. effectiveness (top)	0.942*** (0.0765)			0.874*** (0.140)			–35.84 (31.24)
HR Dept. effectiveness (HR)		0.184** (0.0804)			0.160 (0.109)			17.91* (10.41)
HR Dept. effectiveness (line)			0.320*** (0.107)			0.440*** (0.142)			4.238 (22.04)
Observations	141	141	137	141	141	137	133	133	130
R-squared full model	0.809	0.370	0.416	0.472	0.240	0.306	0.176	0.170	0.177
R-squared controls only	0.333	0.333	0.335	0.223	0.223	0.218	0.164	0.164	0.177

1 Note. In parentheses, robust standard errors are reported.

1 The estimates for the control variables are omitted.

1 Significant estimates are marked with stars: *** p < 0.01, ** p < 0.05, * p < 0.1.

1 Source: Own study based on Stata 15 output.

Table 4.

Results of the Tests for Equality of the Regression Coefficients for Firm Outcomes

	Top managers = HR managers		Top managers = line managers		HR managers = line managers
	Z statistics	p-value	Z statistics	p-value	Z statistics	p-value
Org performance	6.83	< 0.001	4.02	< 0.001	1.63	0.103
Market performance	4.73	< 0.001	2.18	0.030	1.05	0.295
Sales growth	1.02	0.310	1.56	0.118	0.56	0.575

1 Source: Own study based on Stata 15 output.

Table 5.

Regression Results for Associations Between HR Department Effectiveness and Operational Outcomes

Variables	Employee productivity	Employee productivity	Employee productivity	Firm growth	Firm growth	Firm growth
HR Dept. effectiveness (top)	–0.330 (0.288)			4.019 (6.791)
HR Dept. effectiveness (HR)		0.130 (0.185)			15.95*** (5.503)
HR Dept. effectiveness (line)			–0.0854 (0.152)			18.54** (8.196)
Observations	133	133	130	141	141	137
R-squared full model	0.253	0.246	0.292	0.132	0.186	0.189
R-squared controls only	0.243	0.243	0.291	0.129	0.129	0.133

1 Note. In parentheses, robust standard errors are reported.

1 The estimates for the control variables are omitted.

1 Significant estimates are marked with stars: *** p < 0.01, ** p < 0.05, * p < 0.1.

1 Source: Own study based on Stata 15 output.

Table 6.

Results of the Tests for Equality of the Regression Coefficients for Firm Outcomes

	Top managers = HR managers		Top managers = line managers		HR managers = line managers
	Z statistics	p-value	Z statistics	p-value	Z statistics	p-value
Employee productivity	1.34	0.179	0.75	0.452	0.90	0.368
Firm growth	1.36	0.172	1.36	0.172	0.26	0.793

1 Source: Own study based on Stata 15 output.

Articles in this issue

DOI: https://doi.org/10.2478/ijcm-2024-0007 | Journal eISSN: 2449-8939 | Journal ISSN: 2449-8920

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Language: English

Page range: 125 - 137

Published on: Jun 28, 2024

Published by: Jagiellonian University

In partnership with: Paradigm Publishing Services

Publication frequency: 1 issue per year

Keywords:

HR department effectiveness,

top management,

lower-level managers,

proximal and distal outcomes,

managerial perspective

Related subjects:

Business and economics,

Business management,

Management, organization, corporate governance,

Business management, other,

Non profit organizations (NPO), foundations, charities, associations,

Public sector, public private partnerships, public administration

© 2024 Magdalena Majowska, published by Jagiellonian University
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Volume 60 (2024): Issue 1 (March 2024)

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