The managerial drivers of employee satisfaction and loyalty

By Jacob K. Eskildsen, Mikkel L. Nussler. 2000

196 citations recorded by the source corpus.

The world market is becoming an increasingly diYcult place in which to operate for today’s businesses, making creativity a valuable virtue. This has caused the corporate focus to shift from ® nancial resources to intellectual resources. The employees have evolved from a resource to be exploited to an asset that needs to be nourished, guarded and developed. This is in line with experiences from leading companies that `̀ maintain a work environment conducive to the well-being and growth of all employees and they measure employee satisfaction’’ (Evans & Lindsay, 1999). The change is also re ̄ ected in the move from personnel administration/ management to human resource management (HRM) (Cornelius, 1999). But does HRM in its present form have an eVect on employee satisfaction and loyalty? The aim of this paper is ® rst to construct a structural model that describes the causal linkage between the subsystems of HRM, employee satisfaction and loyalty as well as corporate performance based on theoretical considerations. Second, the aim of this paper is to test the structural model empirically through a survey conducted among 670 human resource managers from Denmark, in which 215 responded. These managers cover private and public companies as well as all the relevant sectors. The statistical technique used is known as partial least squares (PLS), which is a technique well suited for structural equation modelling when the focus is on prediction ( JoÈ reskog & Wold, 1982). This analysis will show to what extent the theoretical model corresponds with the mental models of the managers and also reveal the areas in which Danish companies need to improve their performance regarding HRM.

Subfields: Management Information Systems

View Paper: https://www.semanticscholar.org/paper/0b05a406fd78067ac61b7f0ffdc0b255242bfa2d

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In Management Information Systems

  1. L. M. de Menezes
  2. Birgit Renzl
  3. Krystyna Joanna Zaleska
  4. Kurt Matzler
  5. S. Gounaris

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