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Organizational culture, HRM and firm performance: Examining relationships using the competing values framework in call centres. By Wendy R. Carroll Saint Mary's University A Thesis Submitted to Saint Mary's University, Halifax, Nova Scotia in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy December, 2008, Halifax, Nova Scotia ©Wendy R. Carroll Approved: Terry H. Wagar, PhD Supervisor Approved: Monica Belcourt, PhD, External Examiner Approved: Elizabeth Kelley, PhD Reader Approved: Kevin Kelloway, PhD Reader Approved: Kent Rondeau, PhD Reader Date: November 21,2008 Library and Bibliotheque et 1*1 Archives Canada Archives Canada Published Heritage Direction du Branch Patrimoine de I'edition 395 Wellington Street 395, rue Wellington Ottawa ON K1A0N4 Ottawa ON K1A0N4 Canada Canada Your file Votre reference ISBN: 978-0-494-47645-1 Our file Notre reference ISBN: 978-0-494-47645-1 NOTICE: AVIS: The author has granted a non L'auteur a accorde une licence non exclusive exclusive license allowing Library permettant a la Bibliotheque et Archives and Archives Canada to reproduce, Canada de reproduire, publier, archiver, publish, archive, preserve, conserve, sauvegarder, conserver, transmettre au public communicate to the public by par telecommunication ou par Plntemet, prefer, telecommunication or on the Internet, distribuer et vendre des theses partout dans loan, distribute and sell theses le monde, a des fins commerciales ou autres, worldwide, for commercial or non sur support microforme, papier, electronique commercial purposes, in microform, et/ou autres formats. paper, electronic and/or any other formats. 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Canada -ii- Abstract Organizational culture, HRM and firm performance: Examining relationships using the competing values framework in call centres. By: Wendy R. Carroll The role of organizational culture in strategic human resource management (SHRM) research was examined in call centres in Canada. Two concurrent studies were conducted using the business unit level of analysis with multiple-level respondents. Study 1 involved a sample of manager respondents from National call centres across Canada and Study 2 included two field studies involving both customer service representatives (CSR) and managerial employees as respondents. Both studies supported past arguments that organizational culture is an important consideration in SHRM research. The conventional aspects of the. SHRM relationship model, such as HR horizontal alignment and the relationship between HRM and firm performance, were tested in both studies and the findings were consistent with past research, demonstrating the validity of the measures. Cameron and Quinn's (2006) Competing Values Framework (CVF) was used to assess organizational culture. This framework defines four culture types which are referred to as clan (i.e., social), adhocracy (i.e., entrepreneurial), market (i.e., competitive) and hierarchy (i.e., bureaucratic). The results from the studies showed that two culture types, clan and adhocracy, were positively associated with firm performance, and two, market and hierarchy, were negatively associated with firm performance. In addition, both the clan and market culture types were found to partially mediate the relationship between HRM and employee performance in both studies, and HRM and operational performance in Study 1. Further analysis of intermediate linkages showed that HRM, employee performance and operational performance were all significantly and positively associated with financial performance. In addition, organizational culture types were found to have both direct and indirect associations with financial performance. Whereas adhocracy and hierarchy cultures were significantly associated with financial performance in Study 1, clan and market were not significant with financial performance for either study. These findings suggest that culture is directly associated with financial performance with two culture types and indirectly associated with financial performance by the association of clan and market cultures with employee performance and operational performance. Finally, to address past issues raised by researchers about SHRM research almost exclusively being conducted with managers, an examination of multiple-level respondents was undertaken in Study 2. The analysis showed no significant differences in CSR and manager perceptions about HRM and business strategy, with some differences in culture and firm performance perceptions. Date: December 15, 2008 - iii- Acknowledgements This research project would not have been successful without the support of a number of groups. I was delighted with the generous engagement of so many organizations, associations and managers throughout the course of this research. I would like to thank the many managers from across the country that completed the survey and worked with me. The strong support and involvement of so many managers within the Canadian Call Centre environment highlights the progressive approach they have towards creating innovative workplace strategies for the future. I would like to thank specifically Kelly Dunn, Laurie Nouasri and Krista Soucy for their constant feedback and thoughts about the project. I am also grateful to the Contact Centre Associations from across the country for such generous support and engagement. These associations play a fundamental role in helping us understand this dynamic environment. I would like to thank Contact Centre Canada, ConnectNB, Contact Centre Nova Scotia, Alberta Contact Centre Association, BC Contact Centre of Excellence, Manitoba Customer Contact Association, International Customer Service Association and the Ottawa Regional Contact Centre Association. The committed efforts of these associations continue to draw attention to the areas contact centre managers want to examine more closely in order to be successful in the future. I would also like to thank Acadia University for awarding funding to this project through two separate programs. Acadia University, the Department of Professional Studies and the Manning School of Business provided generous support throughout this project. I would like to specifically thank Dr. Roger Wehrell, Director of the Manning School of Business, for his continued support. I am very grateful to have joined the doctorial program at Saint Mary's University because of the support I received from faculty, staff and fellow students. I entered the PhD program at Saint Mary's University after 20 years in the business world. This shift represented many changes for me personally and professionally. I would first like to thank the faculty in the PhD program at Saint Mary's University for their generous support and guidance during the last four years. I had the good fortune of working with so many of the faculty who helped me to understand the various aspects and approaches to academic work. I would like to thank Dr. Kevin Kello way for his continued guidance and support throughout this time, especially as I shifted and changed direction as I grew to understand the various dimensions of research. I am also fortunate to have worked with Drs. Albert Mills and Jean Helms Mills on a number of initiatives from different research perspectives. They guided me through numerous research projects, conference presentations and publication processes. I have come to look to all three of these individuals as great mentors and coaches along my PhD journey. The leadership shown by the faculty within the program is a testament to the culture which has emerged in the Sobey's School of Business PhD in Management Program. I have been fortune to share in the "Coffee Club" group and "Jim's Discount Dining" over the past four years. These sessions were always lively, fun and entertaining. -iv- But more importantly these sessions were informative, educational, supportive and uplifting. I thank Gabie Durepos, Kelly Dye, Jim Grant, Margaret McKee, Amy Thurlow, Tony Yue and Terry Weatherbee for always being there. A special thanks to my constant coaches, Drs Kelly Dye and Elizabeth Kelley, for taking so much time to help me work through ideas and concepts. To complete this final leg of my journey, I would like to thank my dissertation committee, Drs Elizabeth Kelley, Kevin Kelloway and Kent Rondeau, and my external examiner, Dr. Monica Belcourt. I greatly appreciated the advice and guidance that each and every one of you gave me during this process. I would like to thank my advisor, Dr. Terry Wagar, for his continued and generous support throughout this entire process. Terry was always there to help guide and direct me. He has been a great coach and mentor