The relationship between employees’ perceptions of human resource systems and organizational performance: Examining mediating mechanisms and temporal dynamics.

Given the limited understanding of temporal issues in extant theorizing about the link between human resource management (HRM) and performance, in this study we aim to shed light on how, when, and why HR interventions affect organizational performance. On the basis of longitudinal, multi-informant and multisource data from public hospital services in England, we provide new insights into the complex interplay between employees' perceptions of HR systems, job satisfaction, and performance outcomes over time. The dynamic panel data analyses provide support for changes in employees' experience of an HR system being related to subsequent changes in customer satisfaction, as mediated by changes in job satisfaction, albeit these effects decrease over time. Moreover, our longitudinal analyses highlight the importance of feedback effects in the HRM-performance chain, which otherwise appears to evolve in a cyclical manner.