How Hybrid HR Systems Affect Performance in Call Centers: Joana Story
How Hybrid HR Systems Affect Performance in Call Centers: Joana Story
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Abstract
Purpose – The purpose of this paper is to examine the relationship between hybrid HR systems in call centers
and their effect on workers’ performance.
Design/methodology/approach – Drawing on a sample of 337 call center operator-supervisor dyads, the
authors analyzed how the joint perceptions of monitoring and high-performance work systems (HPWS) are
associated with workers’ authenticity to explain performance, rated by supervisors.
Findings – The authors found that when monitoring is perceived as low, HPWS is not associated with
authenticity, suggesting that it requires the joint effect of monitoring and HPWS to communicate HR
management priorities in call centers. In addition, the authors found that high ratings of monitoring combined
with low perceptions of HPWS were associated with the lowest levels of authenticity, whereas the highest levels
of authenticity at work were found when high monitoring was combined with high HPWS. The results
supported a conditional indirect effect through authenticity to explain when and how hybrid HR systems are
associated with better supervisor-rated performance.
Originality/value – This is the first study to test the interaction effects between HPWS and monitoring
practices to explain authenticity as a key strategic component of performance in call centers.
Keywords Call centers, Hybrid HR systems, HPWS, Monitoring, Authenticity, Performance
Paper type Research paper
Introduction
Call centers have been a focus of intensive research over the past decades, with some authors
describing these working contexts as “assembly lines in the head” (Taylor and Bain, 1999),
“lean service environments” (Sprigg and Jackson, 2006) and “electronic panopticon” (Fernie
and Metcalf, 1999) due to the overt controls and tight performance targets (Holman, 2005;
Russel, 2009). At the same time, studies have also pointed out that high-performance work
systems (HPWS) have been effective in promoting commitment and discretionary work effort
among call center workers (Batt, 2002; Kinnie et al., 2000; Wood et al., 2006). A hybrid HR
system is described as a combination of disconnected HR practices (Boxall and Purcell, 2008)
such as tight control with focus on development. Hybrid HR systems are the result of the
tension between the need to standardize work and promote flexibility while controlling costs
and reinforcing service quality (Holman, 2005; Holman et al., 2009; Russel, 2009).
In call centers specifically, hybrid HR systems may combine monitoring systems that
observe and record employee work behaviors, including the automatic collection of
quantitative performance data (Holman, 2002) with HPWS that comprises a set of practices
such as training, participation, reward systems and performance-related pay (Batt, 2002;
Takeuchi et al., 2007). Earlier research on hybrid HR systems in call centers demonstrated
that hybrid solutions that combine HPWS and monitoring systems to improve performance
and well-being can be implemented (Batt and Appelbaum, 1995; Castanheira and Chambel,
2010; Kinnie et al., 2000). However, these studies adopt a more descriptive analysis of the
additive effects of the HR components versus looking at the interactive effects of these Personnel Review
different HR practices. Studies looking at how these practices interact are still scarce. For © Emerald Publishing Limited
0048-3486
example, Conway et al. (2016) examined the synergistic effects of performance management DOI 10.1108/PR-01-2020-0054
PR and employee voice as components of a hybrid HR system. They found that employee voice
promoted workers’ engagement and buffered the influence of performance management on
emotional exhaustion.
Indeed, over the past decades, research has demonstrated that several HR systems may
coexist in call centers, but the advantage of studying the combined effects of HR components of
hybrid systems is reinforced by the notion that the focus on a single component (e.g. HR control)
may produce biased results because that component may be of less importance in itself than for
its role in the hybrid HR system (Combs et al., 2006; Lepak et al., 2006; Boselie et al., 2005). This
means that HR control does not exist in a vacuum and should therefore not be studied alone. We
argue that with regard to call centers, the main question is no longer whether hybrid systems with
monitoring and HPWS can be implemented, but rather how and when the combinations of these
two components improve performance. To our knowledge, no studies have been conducted on the
interactive effects within hybrid HR systems in call centers.
To address this gap, we adopt an individual-level perspective of HR practices to highlight
the symbolic or signaling function of HR systems (Bowen and Ostroff, 2004; Guzzo and
Noonan, 2006) and propose that the joint perception of high/low monitoring and high/low
HPWS embodies different messages or social cues that employees use to make sense of and
define their work context. Understanding how workers perceive and react to hybrid HR
systems is of utmost importance as monitoring systems and HPWS may send mixed and
potentially conflicting messages regarding which behaviors and attitudes are expected in the
workplace (Sewell et al., 2012). Based on the Job Demand-Control model (JD-C model; Karasek
and Theorell, 1990) we propose that HPWS will act as an important source of control for
employees (Conway et al., 2016) because HPWS increases employees’ capacity to deal with the
demands and make decisions regarding the work (Fu et al., 2017; Jensen et al., 2013), whereas
monitoring systems will be perceived as a demand due to increased surveillance and pressure
at work (Aiello and Kolb, 1995; Holman, 2002).
We further propose that the blending of different perceptions of monitoring and HPWS
will be associated with supervisor-rated performance through worker’s authenticity, an
attitude that reflects an employee’s perception that he/she can stay true to one’s self at work
(Wood et al., 2008). Earlier research has demonstrated that authenticity is strategic for
customer service and can be influenced by the work context (Berger and Grandey, 2006;
Grandey et al., 2005; Pugh et al., 2010; Victorino et al., 2012). Drawing on a resource-based view
of call centers, we propose that call centers require the presence of monitoring systems in
order to effectively manage resources (HPWS) and create value (e.g. higher levels of
authenticity), which, in turn, can promote performance (Fu et al., 2017). Moreover, we propose
that different combinations of high/low monitoring and HPWS will improve our
understanding of authenticity at work and the conditional indirect effects through which
the hybrid HR system is associated with better performance as rated by supervisors
(Figure 1).
Figure 1. Monitoring HR
Research model practices
Therefore, our paper contributes to the literature in three major ways. First, by looking at Hybrid HR
the interactive effects of HPWS and monitoring systems rather than the additive effects of systems
these practices, we can understand the potential synergies between the practices. Second, by
studying hybrid HR systems, we analyze the impact of the real practices and their
consequences that are happening in call centers rather than the biased results that take into
account one component of HR practices as we have seen in the past (i.e. monitoring). Third, we
look into the impact that authenticity at work has on performance as evaluated by
supervisors and how authenticity at work can be increased.
Method
Sample and procedure
Respondents included 337 call center operator-supervisor dyads. About two in three respondents
were female (N 5 219; 64.6%). Mean age was 29.6 years (SD 5 7.2 years), and mean tenure was
18.6 months (SD 5 25.1 months). Prior to data collection, researchers met the HR managers and
the direct supervisors to explain the study. Questionnaires were delivered to individual
employees, and included a cover letter explaining the researcher’s affiliation and noting that
participation was both voluntary and anonymous. Supervisors were asked to rate the
performance of each worker. Employee and supervisor surveys were matched via identification
numbers on the surveys and with the informed consent of the workers. As identification numbers
relied on codes, the anonymity of each participant’s responses was ensured.
Measures
HPWS was evaluated with 17 items from Takeuchi et al. (2007). Items covered several HR
practices: training (e.g. “Training programs strive to develop firm-specific skills and
knowledge.”), performance appraisal (e.g. “Performance appraisals include developmental
feedback”) and selection (“Selection emphasizes their ability to collaborate and work in
teams”), and compensation and rewards (e.g. “Our compensation is contingent on
performance”). Items were scored on a five-point Likert scale ranging from 1 (strongly
disagree) to 5 (strongly agree) (Cronbach’s alpha 5 0.91).
Monitoring was measured with four items from Castanheira and Chambel (2010). An
example item is “During my work, my performance is monitored by length of calls”
(Cronbach’s alpha 5 0.83). Items were scored on a five-point Likert scale ranging from 1
(Never) to 5 (Very often).
Authenticity was measured using four adapted items from Wood et al. (2008) authentic
living scale, which assesses the extent to which individuals behave and express emotions in
ways that are consistent with their values and beliefs. An example item is “At my work, I
think it is better to be yourself, than to be popular” (Cronbach’s alpha 5 0.83). The expression
“At my work” was included to reinforce the contextual dimension of authenticity. Items were
scored on a seven-point Likert scale ranging from 1 (strongly disagree) to 7 (strongly agree).
Performance was evaluated by supervisors using four items from the Williams and Hybrid HR
Anderson (1991) in role performance scale. Respondents answered on a five-point scale systems
ranging from 1 (rarely) to 5 (often). An example item is “He/she performs the tasks that are
expected of him/her.” Cronbach’s alpha 5 0.88.
Control variables. We followed the recommendations of Becker et al. (2016) and only
controlled for variables that were significantly related to our outcomes (i.e. gender and
tenure). Furthermore, Roth et al. (2012) found in their meta-analysis that females, on average,
are rated as better performers than males. Similarly, in their meta-analysis, Ng and Feldman
(2010) found that longer tenured were also rated as better performers.
Statistical analysis
We tested our hypotheses with a regression-based path analysis using PROCESS software,
which is a computational tool for probing the conditional indirect effects of mediated
moderation models (Hayes, 2012; Preacher et al., 2007). Process is an SPSS software macro
that allows the test of the indirect effects ab, with a normal theory approach (e.g. the Sobel
test) and with a bootstrap approach to calculate confidence intervals (CI; MacKinnon et al.,
2004). We estimated model 7 using 1,000 bootstrap samples and 95% bias-corrected
bootstrap confidence intervals for the indirect effect. Authenticity was introduced in the
model as mediator of the relationship between HPWS and supervisor-rated performance, and
monitoring as a moderator variable into the model (H1). We empirically tested the overall
mediated moderation hypothesis (H2), for example, the possibility of a significant indirect
effect of HPWS on supervisor-rated performance through authenticity which was contingent
on the value of monitoring. Following Aiken and West’s (1991) recommendations, predictor
variables were mean-centered, and the conditional indirect effect was analyzed at different
values of the moderator variable: the mean, one standard deviation above and one standard
deviation below the mean.
Results
Descriptive statistics
Following Anderson and Gerbing’s (1988) recommendations, we first performed
confirmatory factor analyses (CFA) to test and compare various competing measurement
models, using AMOS 17.0 software package (Arbuckle, 2008). The evaluation of the overall
goodness of fit of the models was based on the combination of several fit indices (Byrne, 2010;
Hu and Bentler, 1999), namely, chi-square, the standardized root mean square (SRMR), the
incremental fit index (IFI), the Bentler comparative fit index (CFI) and the root mean square
error of approximation (RMSEA). For IFI and CFI, values greater than 0.90 are typically
considered acceptable, and for SRMR and RMSEA, values up to 0.08 are deemed reasonable
(Byrne, 2010; Hu and Bentler, 1999). The full measurement model (four-factor model) was
initially tested and included all observed items loading on their respective latent variables
(HPWS, monitoring, authenticity and performance). The latent variables were allowed to
correlate with each other. The full measurement model obtained an acceptable fit
(χ 2(360) 5 854.44, p < 0.001; SRMR 5 0.07; IFI 5 0.90; CFI 5 0.90; RMSEA 5 0.06), and
all standardized regression coefficients were significant at the 0.001 level.
To test for common method variance (CMV), two additional models were tested (Podsakoff
et al., 2003). One involved a CFA, with all variables loaded onto one general factor (one-factor
model). This model showed a mediocre fit to the data (χ 2(367) 5 2841.60, p < 0.001;
SRMR 5 0.15; IFI 5 0.49; CFI 5 0.50; RMSEA 5 0.14), indicating that a single factor does
not account for the majority of variance in data. We then performed a second test in which
an unmeasured latent methods factor was added to the four-factor model, allowing all
items to load on their theoretical constructs, as well as on the latent methods factor.
PR The methods model obtained a good fit (χ 2(332) 5 683.41, p < 0.001; SRMR 5 0.07; IFI 5 0.93;
CFI 5 0.93; RMSEA 5 0.06). Because the methods model cannot be nested within the four-
factor model but both have the same observed variables, the comparison of the goodness of fit
of these models was calculated by CFI difference. The change of CFI between both models
was 0.03, which is below the suggested rule of thumb of 0.05 (Bagozzi and Yi, 1990). Finally,
one nested model was computed to test alternative combinations of observed variables. A
three-factor model was explored in which HPWS and monitoring observed items were loaded
onto a latent variable, and the remaining observed items were loaded onto their respective
latent variables (authenticity and performance). This model obtained a poor fit
(χ 2(363) 5 1267.80, p < 0.001; SRMR 5 0.09; IFI 5 0.82; CFI 5 0.81; RMSEA 5 0.09).
Altogether, these analyses showed that the factor structures of the research variables were
consistent with the conceptual model and also that the manifest variables loaded onto the
latent variables, as intended.
We further analyzed the average variance extracted for each scale variable to determine
the scales’ discriminant validity (Fornell and Larcker, 1981). According to the Fornell and
Larcker’s test (1981), scale variables are sufficiently different from one another if a scale’s
average variance extracted is greater than its shared variance with any other scale variable in
the model. This condition was met, and therefore one can conclude that all scales were distinct
from one another. The values are reported in Table 1, along with inter-scale correlations and
descriptive statistics for all variables.
Test of hypotheses
H1 proposed that monitoring moderates the relationship between HPWS and authenticity,
and H2 proposed the conditional indirect effect of the hybrid HR system on supervisor-rated
performance through authenticity (Table 2). Results indicated that the cross-product term
between HPWS and monitoring on authenticity was significant (B 5 0.24, t 5 2.28, p < 0.05),
supporting H1.
The interaction effect is represented in Figure 2. As expected, the association between
HPWS and authenticity is stronger when monitoring is higher. The lowest levels of
authenticity were found in individuals who reported low HPWS and high monitoring.
Furthermore, when monitoring is low, the relationship between HPWS and authenticity is not
significant.
Although results show that HPWS interacted with monitoring to influence authenticity,
they do not directly assess the proposed moderated mediation. Therefore, we examined the
conditional indirect effect of HPWS on supervisor-rated performance (through authenticity)
at three levels of monitoring (Table 2). Results demonstrated that HPWS was positively
associated with authenticity (B 5 0.39, t 5 3.46, p < 0.01), and authenticity was positively
related to supervisor-rated performance (B 5 0.16, t 5 4.62, p < 0.001). This indicated a
significant indirect effect of HPWS on supervisor-rated performance through authenticity
(indirect effect 5 0.06; 95% CI from 0.02 to 0.12; z 5 2.71, p < 0.01). Furthermore, results
supported a conditional indirect effect of HPWS on predicting supervisor-rated performance
via authenticity when individuals reported higher monitoring, but not when ratings of
monitoring were low. Thus, H2 was supported.
Discussion
The main purpose of this study was to investigate when and how HR systems would influence
performance in call centers. Specifically, we proposed that hybrid HR systems that combine
HPWS and monitoring would enhance authenticity in employees, and consequently their
performance as rated by their supervisors. This study contributed to the literature in three main
ways. First, it empirically tested how employees can perceive and experience hybrid HR systems.
Mean SD CR AVE ASV 1 2 3 4 5
1. Gender (a)
2. Tenure (b) 18.56 25.09 0.26***
3. HPWS 3.23 0.74 0.91 0.37 0.04 0.05 0.23***
4. Authenticity 4.88 1.58 0.89 0.68 0.05 0.18*** 0.36*** 0.21***
5. Performance 3.82 0.85 0.87 0.63 0.03 0.01 0.13* 0.11* 0.27***
6. Surveillance 3.50 1.11 0.83 0.55 0.01 0.09 0.02 0.06 0.02 0.06
Note(s): N 5 334; CR 5 composite reliability; AVE 5 average variance extracted; ASV 5 average shared variance; (a) dummy variable coded 0 if male, and 1 for female;
(b) in months
p < 0.01; *p < 0.05; ***p < 0.001
systems
Hybrid HR
Table 1.
intercorrelations
PR B SE t P
6
5.5
5 Low
Monitoring
Authenticity
4.5
4
Further reading
Holman, D. and Wood, S. (2002), Human Resource Management in Call Centres, Institute of Work
Psychology University of Sheffield, Memo no260, Sheffield.
Huselid, M.A. (1995), “The impact of human-resource management-practices on turnover,
productivity, and corporate financial performance”, Academy of Management Journal, Vol. 38
No. 3, pp. 635-672.
Corresponding author
Joana Story can be contacted at: [email protected]
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