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Abstract
Purpose – Aligning employees’ goals with organizational goals is an overarching objective of an organization
to increase employees’ outcomes and, ultimately, the firm’s performance. Employees’ perceived goal
congruence is proposed to be an important mediator of the effect of high-performance work systems (HPWS) on
organizational citizenship behaviors (OCB). In this paper, the authors proposed and tested a moderated
mediation model that depicted how servant leadership increased or restrained these effects.
Design/methodology/approach – This study used data from 56 managers and 322 employees working in
Bangladeshi organizations. The study conducted cross-level analyses using hierarchical linear modeling
(HLM) to examine the hypothetical relationships among variables.
Findings – This study revealed that employees’ perceived goal congruence mediated the influence of HPWS
on OCB. Consistent with the moderated mediation prediction, employee-perceived goal congruence mediated
the relationship between HPWS and OCB when servant leadership is high.
Originality/value – This study examined how and when HPWS affects OCB by incorporating perceived goal
congruence and servant leadership as mediating and moderating variables, respectively.
Keywords High-performance work systems, Perceived goal congruence, Servant leadership, Organizational
citizenship behavior, Bangladesh
Paper type Research paper
1. Introduction
Organizations actively strive to pursue multiple goals in order to survive in a complex and
turbulent business environment (Lubogoyi et al., 2018). To sustain in the volatile environment and
maintain a competitive position, organizations continuously focus on aligning organizational
goals with employees’ goals. Perceived goal congruence is defined as the consistency between a
person’s individual goals and organizational goals and provides an essential condition that
motivates employees to show positive attitudes and behavior (Kristof-Brown et al., 2005). Strong
goal relevance guides employees to show constructive behavior desired by the organization
(Vancouver and Schmitt, 1991). Goal-congruent employees are inspired to work toward the
International Journal of Emerging
Markets
The authors would like to thank the anonymous reviewers and the editor for their helpful comments on © Emerald Publishing Limited
1746-8809
the different versions of this manuscript. DOI 10.1108/IJOEM-03-2019-0209
IJOEM strategic objectives of the top management, which eventually makes the company successful
(Ding et al., 2017). Goal congruence ensures increased operational efficiency, service performance
and employee satisfaction (Kristof-Brown et al., 2005). When goal incongruence is not prevented
in due course, it allows organizational people to follow their own individual goals at the cost of
formal organizational objectives. As an important type of person-organization (P-O) fit, goal
congruence is largely ignored in P-O fit literature (Hoffman and Woehr, 2006; Colbert and Witt,
2009). We draw on goal congruence since it is critical in achieving its strategic objectives, ensuring
the coordination and motivation of all employees involved (Ding et al., 2017). Prior research
suggests that individuals’ goals are shaped by contextual factors (Bouckenooghe et al., 2015;
Coote et al., 2004; Colbert and Witt, 2009). However, little is known about how a high-performance
work system (HPWS) influences individuals’ goal congruence.
Over the last couple of decades, there has been a flurry of interest among researchers on
HPWS designed to increase firms’ competitive advantage by enhancing employees’
performance. Takeuchi et al. (2007, p. 1,069) define HPWS as “a group of separate but
interconnected human resource (HR) practices designed to enhance employees’ skills and
effort.” A plethora of studies on strategic human resource management (HRM) has shown that
the adoption of HPWS is related to the more proximal employee outcomes, i.e. attitudes and
behaviors, such as increased job satisfaction, affective commitment, job involvement, job
engagement, turnover and citizenship behaviors (Arefin et al., 2019; Pak and Kim, 2018; Huang
et al., 2018; Zhang et al., 2018; Miao et al., 2021; Messersmith et al., 2011). Moreover, researchers
paid a keen interest in revealing the black-box of the mediating mechanism through which
HPWS leads to employee performance (Messersmith et al., 2011; Jiang et al., 2013; Karadas and
Karatepe, 2019; Jo et al., 2020; Zhang et al., 2018, 2019). The research identified numerous
mediating mechanisms, including job satisfaction (e.g. Nishii et al., 2008), job engagement (e.g.
Alfes et al., 2013), job involvement (e.g. Nishii et al., 2008), psychological empowerment (e.g.
Aryee et al., 2012; Messersmith et al., 2011; Liao et al., 2009) empowerment climate (e.g. Aryee
et al., 2012), person-organization fit (Mostafa and Gould-Williams, 2014), psychological contract
(e.g. Raeder et al., 2012), affective and continuance commitment (e.g. Kehoe et al., 2013) human
capital (e.g. Liao et al., 2009) and adaptive capability (e.g. Wei and Lau, 2010). Research on
HPWS-performance linkage focused on how and why HPWS affects employee behavior, rather
than merely emphasizing this direct association (for review see Messersmith et al., 2011; Jiang
et al., 2013; Zhang et al., 2018, 2019). We focus on the alignment in goal (i.e. goal congruence) as a
mediating mechanism neglected in the P-O fit literature. Therefore, this study highlights
perceived goal congruence as a link between an organization and an employee.
The interactionist theory emphasizes that neither personal characteristics nor situational
factors alone can determine individuals’ responses or attitudes; rather, the interaction of these
two is most important (Terborg, 1981). According to this perspective, behavior is a function of
the person and the environment; therefore, the joint function should be considered rather than
thinking exclusively about one or the other (Terborg, 1981). Interactions between people and
their environment have become the main focus for many researchers and practitioners, notably
the P-O fit area of applied psychology (Kristof-Brown et al., 2005). While scholars emphasize the
indirect relationship between HPWS and organizational citizenship behavior (OCB) (Pak and
Kim, 2018), little is known about how goal congruence mediates the relationship. Individuals’
perception of goal congruence may be influenced by HPWS, which in turn leads to OCB.
Incorporating personal and environmental factors, the first goal of this study is to examine the
mediating role of goal congruence in the relationship between HPWS and OCB.
Based on social information processing theory (Salancik and Pfeffer, 1978), our second goal
is to examine the use of a manager’s leadership style as a contextual factor on the relationship
between HPWS and employee-perceived goal congruence. Previous research emphasizes the
leaders’ role in shaping employees’ goals (Colbert and Witt, 2009). Servant leadership appears to
be a particularly effective leadership style for assisting people in aligning to organizational
goals and work environments (Franco and Antunes, 2020). Given that servant leadership is a HPWS, goal
follower-centered leadership strategy, it promises to support employees to align with the conguence and
organizational goals. Servant leadership is based on the principle of putting the needs of
followers ahead of the leader’s own (Greenleaf, 1970; Van Dierendonck, 2011). According to
servant
meta-analytic findings, servant leadership holds more potential in explaining a wide range of leadership
outcomes than transformational, authentic and ethical leadership (Hoch et al., 2018). Servant
leaders are sincere about creating valued outcomes and assisting subordinates in fulfilling their
goals, which distinguishes servant leadership from ethical and authentic leadership styles
(Lemoine et al., 2019). Servant leaders focus on subordinates’ inner potentials, building one-on-
one communication by exploring their skills, goals, expectations and talents (Liden et al., 2008).
In particular, servant leaders emphasize increasing followers’ competency and helping
followers set and meet goals (Chiniara and Bentein, 2016; Rodrıguez-Carvajal et al., 2019). The
contingency theory of HRM argues that HRM practices can only be ultimately successful if they
are in accordance with the organization’s internal contextual variables and external factors
(Jackson and Schuler, 1995). Several scholars have explored the interactive relationship
between HRM and leadership (Chuang et al., 2016; Jiang et al., 2015; Wang et al., 2019; Jo et al.,
2020; Rabiul et al., 2021). Moreover, a burgeoning body of research suggested untangling the
HPWS-performance process boundary conditions (Jyoti and Rani, 2019; Garcıa-Chas et al., 2019;
Han et al., 2018). Although HPWS indicates a strong climate of employee development, servant
leaders may play an interpretive role in accentuating HR practices positively.
The present study contributes to the extant strategic HRM and leadership literature,
answering how and when firms’ HR systems affect OCB. First, it examines the mediating role
of perceived goal congruence in the relationship between HPWS and OCB. As a contextual
cue, HPWS influences employees to align their goals with that of the organization; in turn,
they are more likely to engage in OCB. This study responded to the research call by Hoffman
and Woehr (2006) on goal congruence as an alternate definition of P-O fit. Second, bridging
the strategic HRM (SHRM) and leadership literature, this study seeks to reveal how the
interaction of two contextual factors (i.e. HPWS and servant leadership) affects OCB through
goal congruence. We responded to the calls for identifying the role of line managers in the
HRM process (e.g. Jo et al., 2020; Leroy et al., 2018; Jiang et al., 2015; Jackson et al., 2014;
Brewster et al., 2013) and investigated how servant leadership interplays with HRM.
3. Methods
3.1 Sample and procedure
Data were collected from Bangladesh, where business organizations have been emphasizing
the strategic value of humans in recent years (Arefin et al., 2019). Both internal and external
pressures drive organizations to adopt western HRM practices (e.g. HPWS) to boost
productivity (Arefin et al., 2015, 2019). Private organizations are more likely to adopt HPWS
because they face intense competitive pressures and perform better than public organizations
valuing HR (Arefin et al., 2019). We randomly selected 15 private manufacturing and service
organizations from different industries that practiced HPWS. All firms were located in
Dhaka, the capital city of Bangladesh. Before the survey, we contacted the HR managers of
each organization and asked for their consent to conduct the survey. In total, 12 firms agreed
to participate in the survey, which included pharmaceutical, ready-made garments,
telecommunications and hospitals.
Two sets of questionnaires were developed for employees and their immediate
supervisors. Supervisors were asked to complete the department-level HPWS scale and
their subordinates’ OCB scale. In contrast, employees were asked to complete the
questionnaire measuring their perceptions of goal congruence and the supervisor’s servant
leadership behavior. Previous research suggested manager-rated HR systems (e.g. Collins
and Smith, 2006) and employee-rated servant leadership (e.g. Liden et al., 2008; Ehrhart, 2004).
Before data collection, the HR managers of each firm were asked to provide a list of full-time
employees and their immediate supervisors. Along with six research assistants, the first
author visited each firm and distributed the survey questionnaires to randomly selected full-
time employees. The questionnaire was distributed with a cover letter and a return envelope
to each participant. After completing the questionnaire, participants were asked to seal the
envelope and return it to the researchers.
Researchers assigned a self-defined identification code on each completed questionnaire to
ensure the matching of each employee’s response to their direct supervisor’s evaluation. The
second set of questionnaires was distributed to the employees’ direct supervisors. Both
employees and supervisors were also assured that their responses would be anonymous and
High-Performance
Servant Leadership
Work Systems
Department Level
Individual Level
3.2 Measures
Measures from past research were used. The constructs were measured using multiple items
and scored on a 5-point Likert scale (from 1 5 strongly disagree to 5 5 strongly agree).
3.2.1 High-performance work systems. Department-level HPWS was measured using 18
items commonly used in past research (e.g. Chuang and Liao, 2010; Lepak and Snell, 2002; Sun
et al., 2007) and was rated by supervisors. The sample items of six typical practices of HPWS
were selective staffing (e.g. “Selection emphasizes traits and abilities required for providing a
high quality of performance”), comprehensive training (e.g. “This department invests
considerable time and money in training”), developmental performance management (e.g.
“Performance appraisals are based on objective, quantifiable results”), performance-based
compensation (e.g. “Employees’ salaries and rewards are determined by their performance”),
flexible work design (e.g. “This department has its ways or methods to help employees
alleviate work stress”) and participation in decision-making (e.g. “If a decision made might
affect employees, the department asks them for opinions in advance”). Cronbach’s alpha
coefficient for HPWS was 0.71.
3.2.2 Perceived goal congruence. Employees were asked to indicate their goal congruence
with their organization according to three items developed by Ozcelik (2013). The scale
included the items, “My goals match or fit the goals of this organization and its current
employees,” “I believe in and support the goals of this organization,” and “I can reach my
professional goals working for this organization.” Cronbach’s alpha score for this scale
was 0.83.
3.2.3 Organizational citizenship behaviors. We measured an employee’s OCB with a 9-item
scale from Farh et al. (2004) as rated by the supervisor. We used three types of OCB that
includes altruism (e.g. “Employee initiates assistance to co-workers who have a heavy
workload”), voice (e.g. “Employee actively raises suggestions to improve work procedures or
processes”) and conscientiousness (e.g. “Employee works diligently and with a great sense of
responsibility even when work outcomes will not count toward one’s performance
evaluation”). The first three items measured altruism, the next two-item measured voice
and the last four items measured conscientiousness. Cronbach’s alpha coefficient was 0.88.
IJOEM 3.2.4 Servant leadership. We used a 14-item scale with seven dimensions consisting of two
items for each (forming relationships with subordinates, empowering subordinates, helping
subordinates grow and succeed, behaving ethically, having conceptual skills, putting
subordinates first and being involved in community service) developed by Ehrhart (2004) to
measure servant leadership. Employees were asked to respond to the item, such as, “My
supervisor works hard at finding ways to help others be the best they can be.” Cronbach’s
alpha coefficient was 0.93. As servant leadership is a department-level variable in the current
study, we calculated its within-group agreement (rwg(j)), intraclass correlation (ICC1) and
reliability of the mean (ICC2). The average rwg(j) was 0.91, the median rwg(j) was 0.92, the ICC1
was 0.22 and the ICC2 was 0.74. In sum, these statistics supported the plausibility of
aggregating individual perceptions of servant leadership to the department level.
3.2.5 Control measures. We controlled employees’ age, gender, education and organizational
tenure. Because previous research found that these variables may influence employees’
perceptions of goal congruence. Age was divided into six categories ranging from “1 5 between
18 and 29 years” to “6 5 more than 70 years”. Gender was measured as a dichotomous variable
(i.e. 1 5 male, 0 5 female). Education level included five categories ranging from “1 5 middle
school or below” to “5 5 master’s degree or above.” Organizational tenure comprised six
categories ranging from “1 5 less than one year” to “6 5 more than 20 years”.
3.3 Analysis
We conducted confirmatory factor analysis (CFA) using Amos 24 software to confirm the
dimensionality and discriminant validity of the variables. This study used manager-rated
HPWS and servant leadership as departmental-level variables, whereas perceived goal
congruence and OCB were used as individual-level variables. Thus, individual employees are
nested in departments. Prior research called for further research on HR systems at different
levels (Boon et al., 2019; Jiang et al., 2013). Due to the multi-level nature of the study,
hierarchical linear modeling (HLM) was applied using HLM 3 software. Two levels were
investigated in which individuals were nested in workgroups. To justify the usage of HLM 3
for analyzing two-level data, we ran null models with perceived goal congruence and OCB as
dependent variables, respectively. The results showed that the within-group, between-group
and between-firm variance of OCB were 0.34, 0.06 and 0.13, respectively. The results also
showed that the within-group, between-group and between-firm variance of perceived goal
congruence were 0.41, 0.11 and 0.09, respectively. ICC(1)firm was 0.11, indicating 11% of
variance residing in between-firms in perceived goal congruence. ICC(1)firm for servant
leadership and OCB were 9.54 and 8.62%, respectively. Chi-square tests revealed that the
between-group variances were significant; that is, the intercept terms significantly varied
across groups.
We followed Kenny et al.’s (1998) four-step process to test the mediating role of perceived
goal congruence. Researchers suggest computing compound coefficients that are not
distributed normally (Edwards and Lambert, 2007; Shrout and Bolger, 2002). A re-sampling
technique is generally suggested to ensure an empirical distribution for constructing bias-
corrected confidence intervals (CIs) (Shrout and Bolger, 2002). We used the Monte Carlo
simulation method suggested by Preacher and Selig (2012) to derive the 90% CIs. We
executed the Monte Carlo method using R software (version 3.4.1) with 20,000 simulations.
4. Results
4.1 Measurement issues
We conducted a series of confirmatory factor analyses to identify the discriminant validity of
the constructs. We compared the fit of the hypothesized three-factor model with five
alternative models: two-factor models combining perceived goal congruence and OCB (Model HPWS, goal
A), combining perceived goal congruence and servant leadership (Model B) and combining conguence and
servant leadership and OCB (Model C), and a one-factor model combining perceived goal
congruence, servant leadership and OCB. In Table 1, the results of CFA indicated a
servant
significantly good data fit for the hypothesized three-factor model (χ 2 5 219.65, df 5 167, χ 2/ leadership
df 5 1.32, p < 0.01, CFI 5 0.98, GFI 5 0.94, TLI 5 0.98, RMSEA 5 0.03) and confirmed the
recommendation of Hu and Bentler (1999) for the cutoff value of 0.08 for RMSEA and
minimum value of 0.95 for CFI and TLI. Therefore, the results supported the discriminant
validity. Table 2 shows the study variables’ descriptive statistics, reliabilities and
correlations.
Variables M SD 1 2 3 4 5 6 7
Level 1 (n 5 322)
Intercept 3.92*** (0.05) 3.92*** (0.04) 4.14*** (0.06) 4.15*** (0.05) 3.92*** (0.04) 4.15*** (0.05)
Age 0.14* (0.07) 0.13 (0.07) 0.16* (0.08) 0.14 (0.08) 0.10 (0.07) 0.13 (0.07)
Gendera 0.04 (0.07) 0.03 (0.07) 0.15 (0.08) 0.15* (0.08) 0.04 (0.06) 0.18* (0.07)
Education 0.07 (0.04) 0.06 (0.04) 0.02 (0.05) 0.01 (0.04) 0.06 (0.04) 0.03 (0.04)
level
Organization 0.05 (0.04) 0.03 (0.04) 0.02 (0.05) 0.00 (0.05) 0.03 (0.04) 0.00 (0.05)
tenure
*
PGC 0.11 (0.05)
Level 2 (n 5 56)
HPWS 0.53** (0.20) 0.70* (0.28) 0.48* (0.20) 0.69* (0.28)
SL 0.03 (0.06)
Interaction
HPWS 3 SL 1.02*** (0.21)
Note(s): Values in parentheses are standard errors; entries are unstandardized coefficients
Table 3.
a
Male 5 1, female 5 0
Hierarchical linear PGC 5 perceived goal congruence; SL 5 Servant leadership
*
modeling results p < 0.05. **p < 0.01. ***p < 0.001
relationship between HPWS and perceived goal congruence (i.e. the first-stage effect; HPWS, goal
Δγ 5 1.12, p < 0.001). Hence, Hypothesis 5 was supported. Table 5 showed the summary of conguence and
the hypothesis testing.
servant
leadership
5. Discussion
The study examined how the interaction between HPWS and servant leadership affects the
indirect relationship between HPWS and OCB through perceived goal congruence. The multi-
level analyses revealed that servant leadership moderated the positive relationship between
HPWS and perceived goal congruence. The relationship was stronger when servant
leadership was high. Furthermore, the study revealed that HPWS was positively related to
employees’ perceived goal congruence, which was positively related to OCB. Also, employees’
perceived goal congruence mediated the positive influence of HPWS on OCB.
4.8
Low SL
4.6 High SL
4.4
PGC
4.2
Figure 2.
4 The interactive effect
of HPWS and servant
3.8 leadership (SL) on
perceived goal
3.6 congruence (PGC)
Low HPWS High HPWS
Hypotheses Decision
H1: High-performance work systems is positively related to employees’ perceived goal Supported
congruence
H2: Employees’ perceived goal congruence is positively related to OCB Supported
H3: Employees’ perceived goal congruence mediates the relationship between HPWS and Supported
employees’ OCB
H4: Servant leadership moderates the relationship between high-performance work systems and Supported
employees’ perceived goal congruence, such that the relationship becomes stronger as servant
leadership increases
H5: Servant leadership moderates the indirect positive effect of HPWS on employees’ OCB via Supported Table 5.
employees’ perceived goal congruence, such that the relationship between HPWS and employees’ Results of the
OCB is moderated by servant leadership and mediated by employees’ perceived goal congruence hypotheses
IJOEM 5.1 Theoretical contributions
These findings contribute to the HPWS, goal congruence and servant leadership literature in
several ways. First, this study examined the perceived goal congruence as a mediator
through which HPWS influences OCB. Although Hoffman and Woehr (2006) called for more
research on goal congruence as an alternate definition of P-O fit, limited is known about the
contextual impact on goal congruence in the current literature. This study examined and
found that HPWS, as a contextual cue, influenced OCB through perceived goal congruence by
addressing this gap. This finding is consistent with the proposition of Wei et al. (2010).
Moreover, this study revealed that HPWS influences employees to shape their goals
according to the organization, and in response, they are likely to show OCB. Specifically, goal-
aligned employees may perceive the fulfillment of their desired goals and basic needs through
HR systems, which, in turn, motivate them to exhibit OCB. Furthermore, this result is
consistent with the previous studies on HPWS that argued for the “strength” of HRM systems
(Bowen and Ostroff, 2004) that affects employees’ perceptions. Second, consistent with the
social exchange theory (Blau, 1964), the results demonstrated the positive effect of HPWS on
perceived goal congruence. The organization sends signals of its valuation of employees by
adopting a bundle of HR practices (Bowen and Ostroff, 2004). In turn, employees feel
motivated to be a part of the organization and treat its goals as their own, which helps them
experience goal congruence. Previous studies demonstrate that HPWS plays an important
role in individuals’ goal perceptions (Whitener, 2001; Gong et al., 2009; Zhang et al., 2018).
Moreover, HPWS encompasses practices that motivate employees to align their goals with
the organization’s goals. Thus, this finding may tie together the strategic HR and P-O fit
literature.
Additionally, by examining the interaction between HPWS and servant leadership
interaction, this study may extend our understanding of how organizational HRM and
leadership jointly influence employees. HRM and leadership have increasingly evolved
separately, although there are strong interrelationships. Front-line managers or leaders are
primarily responsible for implementing HR practices in the organizations (Nishii and Paluch,
2018). Through their attitudes and behaviors, leaders influence employees’ perception and
interpretation of HRM and ultimately, impact how employees react to HRM, thereby, stating
the critical role of leaders in understanding HRM and its consequences (Wang et al., 2019;
Buengeler et al., 2018). Although the research calls for investigating the role of line managers
on the HRM process (e.g. Jackson et al., 2014; Brewster et al., 2013; Leroy et al., 2018), relatively
few studies articulated the linkage in the current literature. Based on social information
processing theory (Salancik and Pfeffer, 1978), this study found that servant leaders
prioritized employees’ personal goals and provided necessary support to achieve them
through translating HPWS and influencing employees’ perception and understanding of
organizational HRM practices. In line with these findings, Wang et al. (2019) confirmed the
servant leaders’ collaborative relationship with the firm’s HPWS. The results demonstrated
that servant leaders put employees’ interests at the top priority, aid in achieving employees’
individual goals, focus on the employees’ development and relate employees’ specific skills to
achieve individual goals (Hu and Liden, 2011; Rodrıguez-Carvajal et al., 2019). Therefore, the
mutual effects of servant leaders and HR systems will enhance the harmonization of
individual goals and organizational priorities, enabling individual workers to perform extra-
role behavior.
6. Conclusion
This study examined a multi-level moderated mediation model, including the moderation
effect of servant leadership in the indirect effect of HPWS on OCB through perceived goal
IJOEM congruence. Results showed that HPWS is an important tool in generating perceptions of goal
congruence, which in turn motivates employees to exhibit OCB. Besides, the results
confirmed that employees’ perceived goal congruence mediated the impact of HPWS on
employees’ OCB for higher levels of servant leadership. This study aimed to contribute to the
extant research bridging the strategic HRM and leadership literature and identifying the
effect of contextual factors (i.e. HPWS) on perceived goal congruence. The practitioners
should focus on designing HPWS and nurturing servant leadership to align employees’ goals
with organizational goals and motivate them to exhibit discretionary behaviors.
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