312 Ability and Training and Development This HR practice enhances the existing

312 ability and training and development this hr

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3.1.2 Ability and Training and Development This HR practice enhances the existing knowledge and skills of employees or gives them the chance to even develop new abilities to innovate (Boselie, 2010; Shipton et al., 2005; Tan & Nasurdin, 2011). In addition, training and development include knowledge sharing between co-workers and career developments (Boselie, 2010). Thus, it can be used as a tool to increase employees’ commitment. Employees will show a higher commitment towards the organization if they believe that the company invests in their well-being, including personal development opportunities (Eisenberger, Stinglhamber, Vandenberghe, Sucharski & Rhoades, 2002). Training and development have been identified to support the ability factor of the AMO framework since the main aim of the practice is to increase the skills and knowledge of the workforce (Paauwe & Boselie, 2005; Kehoe & Wright, 2013). Furthermore, Dodgson, Gann and Phillips (2013) highlight that training leads to a higher rate of process improvements and product innovations. Shipton et al. (2005) argue that a broad range of knowledge enables employees to make connections between divergent stimuli and are therefore more able to be innovative. This HR practice can enhance commitment as well as motivation of employees as they
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5 feel more secure and supported, interpreting this practice as an investment from the company (Tracey, Tannenbaum & Kavanagh, 1995). However, as mentioned previously in this case the ability enhancing effect of the practices is the sole focus, which is based on the argumentation of Boselie (2010), Katou (2008), Shipton et al. (2005) and Tan and Nasurdin (2011). All in all, training and development improve the skills and knowledge of employees, which is important for them to understand problems or identify improvement and innovation opportunities. These two practices are concerned with the existing and the development of new abilities of employees. Focusing on high- commitment increases employees’ willingness to use these abilities beyond the contractual job descriptions. Therefore, the following proposition can be made: Proposition 1: In a HCWS recruitment & selection and training & development support employees established and new abilities to be innovative. 3.1.3 Motivation and Reward System Financial or non-financial incentives are used to reward desired performances and/or outcomes of individuals, teams or groups (Boselie, 2010; Tan & Nasurdin, 2011). As mentioned before employees can act according to intrinsic and/or extrinsic motivation. Monetary rewards are identified as extrinsic motivation to participate and allocate discretionary efforts (Prieto & Pérez-Santana, 2014). Chiang, Shih and Hsu (2014) state that in a High-commitment work system a team-based compensation approach will be implemented as this encourages knowledge sharing and idea generation between members. As previously mentioned, financial rewards are a type of extrinsic motivation and, therefore, contribute to the motivation factor of the AMO (Kehoe & Wright, 2013; Paauwe & Boselie, 2005; Prieto & Pérez-Santana, 2014). Thus, rewarding desired
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