The Relationship between Organizational and Environmental Factors and the Use of Innovative Human Resource Practices

Few studies have examined the influence of organizational and environmental characteristics on human resource (HR) practices. To identify potential correlates of progressive HR practices, concepts from the innovation literature were applied. In particular, the extent was explored to which size, climate, organizational structure, external conditions, and workforce variables were related to the use of HR innovations in a sample of 40 New York State public agencies. Agency size and the external condition variables of labor availability and public scrutiny exhibited the strongest linear relationships with HR innovation. Formalization, centralization, and HR department climate demonstrated somewhat weaker linear effects. External favorability demonstrated a nonlinear relationship with HR innovation. The results are discussed with consideration given to the differences between idea generation and adoption, formal and informal innovations, organic and mechanistic organizational structures, and the role of the external environment. Diagnostic questions are provided to assist in the application of these findings to other settings.