Linking HRM Systems with Public Sector Employees’ Performance

Early research exploring the link between HRM and performance primarily focused on private sector and organizational-level factors (the firm’s HR policy and financial performance). Although the evidence revealed a positive link between organizational approaches to HR practices and performance, the effect on employees was not considered. Although there is now emerging evidence across the private and not-for-profit sectors which includes the employee experience, theory advancement remains limited. The aim of this chapter is to address this issue by identifying relevant theories that explain why HR systems affect employees’ responses. Of the three theories identified, namely (1) ability, motivation, opportunity (AMO); (2) social exchange; and (3) self-determination theory (SDT), it is believed AMO is the least suited for the public sector context, even though the results of a review study show that AMO is the preferred choice for analysis by public sector scholars. This chapter expands on the rationale for this choice and highlights implications for management practice and research.