Human Capital Practices, Organizational Climate and Commitment on Latin American Universities Performance Dr. Emmanuel Silvestre and MS Oliver Cruz from INTEC & Magíster Alejandro Sanín, CINCEL, Colombia April 5-8, 2016 Annual Conference and Assembly Meeting (ACAM)

Introduction From 2011 to 2013 we were conducting the study of organizational climate (OC) INTEC with a scale built by us. In 2014 we were invited to participate in an international study on the OC and its relations with human management practices, commitment and perceived organizational performance. Dr. Emmanuel Silvestre

Introduction  The study includes the countries of Chile, Colombia, Mexico and now Dominican Republic  It includes large companies (500+ employees) of the Education, Industrial and Services sectors  The analytical model and instruments were provided by CINCEL, leading organizational research company in Colombia Dr. Emmanuel Silvestre

Analytical Model Human Management Practices Organizational Commitment Organizational Performance Organizational Climate Kopelman, Brief & Guzzo 1990 Gong, Law, Chang & Xin, 2009

Variables and Instruments HUMAN MANAGEMENT PRACTICES PRACTICES Scale of Human Management Practices HPWS Practices HPWS Performance Orientation: 1.Performance evaluation. 2.Extensive training. 3.Selective binding. Staff Conservation Orientation: 1.Job stability. 2.Reduction of status differences. 3.Participation in decision-making group. 4.Performance contingent compensation. Items: 48, Likert style scale Reliability: Alpha =.97 Validaty: Factor Analysis Gong, Law, Chang & Xin, 2009

Variables and Instruments Organizational Climate Scale ECO IV (R) 1.Stability. 2.Interpersonal treatment. 3.Sense of belonging. 4.Coherence. 5.Teamwork. 6.Organizational clarity. 7.Resource availability. 8.Chief’s support. 9.Retribution. Items: 36 Reliability: Alpha =.93 Validity: Factor Analysis

Variables and Instruments Commitment Scales of Commitment 1.Affective commitment. 2.Normative commitment. 3.Continuity commitment. Items : 42, Likert type scale Reliability : Alpha =.86 Validity: Factor Analysis

Criteria and Instruments Organizational Performance Perceived Organizational Performance Perceived Organizational Performance 1.Quality of products / services / programs. 2.Development of new products / services / programs. 3.Attracting qualified personnel. 4.Retention of qualified personnel. 5.Client satisfaction. 6.Supervisor-employee relationship. 7.Employee relations. 8.Customer Support 9.Customer acquisition 10.Economic situation 11.Social prestige Items: 11 Reliability: Alpha =.89 Validity: Factor Analysis.

Analytical Model and Dimensions

Objectives In addition to the testing of the proposed analytical model, this study has an added value for INTEC: It shows the comparison of these factors related to the OC, with a sample of 7 participating universities in the other three countries of the study. In other words, we have here an international standard for Latin American Universities (LAU) with which we have compared to INTEC Dr. Emmanuel Silvestre

International Sample Dr. Emmanuel Silvestre Availability sample from 7 universities in 3 countries: n = 1,138 México 27% Chile 14% Colombia 59% Private 95% Public 5%

INTEC sample INTEC sample was self-selected, but it kept the same proportions as the samples of surveys from the previous three years with respect to the independent variables:  Employee category  Education level  Sex  Department  Job tenure The confidence interval for the sample of 2014 (220 cases) was ± 5.16%. Dr. Emmanuel Silvestre

INTEC – LAU Comparison Dr. Emmanuel Silvestre A Chi-square showed that the proportions of education were different, Chi- square (5) = 14.25, p =.014. In INTEC there were more postgraduate and less technical.

INTEC – LAU Comparison Dr. Emmanuel Silvestre We also found that the proportions of seniority were different, Chi- square (4) = 18.15, p =.001. At INTEC there were more older and new staff and less staff in medium categories.

Analytical Model Dr. Emmanuel Silvestre  We show below the results on the analytical model through the correlations among its elements and the results of various linear regression analysis.  We listed first the correlations where we found differences between the total of the universities of other countries (LAU) and INTEC.  All correlations were highly significant (p =.000)

Correlations for the Analytical Model

Regression 1 For INTEC, the only significant independent variable was the OC. For each point modified in the INTEC organizational climate the perceived organizational performance is modified by half a point (,464). At INTEC the OC is the best predictor for performance. The regression model explains more than half of the variance in LAU (.538) and slightly less in INTEC (.441).

Regression 2 This regression model explains 2/3 of the variance of the dependent variable in both UL (654) and INTEC (658). The only factor that can predict the OC is the total of the human management practices. The standardized coefficient (BETA) is greater in INTEC than in LUA. At INTEC, Each point of change in these practices increases the OC by 1.38.

Regression 3 This regression model explains less than half of the variance of the dependent variable in both LUA (,432) and IINTEC (,394). Here, the performance orientation, with a minimum coefficient, accompanies the human management practices to predict affective commitment. The standardized coefficient of the practices is higher in INTEC than in the LUAL. At INTEC, 3ach point of change in these practices increases 2.25 the affective commitment.

Regressions 4 and 5 Neither of these two regressions showed that human management practices can predict Continuity oR Normative commitments. The R SQUARES are very low.

Regression 6 This regression shows that the OC influences affective commitment. In both, INTEC and LAU, the R-squared explains almost half of the variance of the dependent variable. Both standardized coefficients (from LAU and INTEC) tell us that a change of one point in OC will made an increase of over two-thirds of a point in the affective commitment.

Regression 7 As expected by the analytical model, in this regression we see that the OC has less impact on the continuity commitment than on affective commitment. In both, INTEC and LAU the R-squared explain a very small proportion of the variance of the dependent variable. While both standardized coefficients (LAU and INTEC) are significant, a change of one point in OC will make only an increase of a third of one point in the continuity commitment.

Regression 8 Again, according to expectations, in this regression we also see that the OC has less influence on the normative commitment than on the affective commitment. For both, INTEC and LAU, the R-squared accounts for a third or less of the proportion of the variance of the dependent variable. Both standardized coefficients (LAU and INTEC) are significant and tell us that a change of one point in OC will increase approximately half of a point in normative commitment.

Analytical Model Organizational Performance Broadly, the analytical model is supported though some dimensions are more strongly correlated than others. Human Management Practices Organizational Commitment Organizational Climate

Differences Across Countries Dr. Emmanuel Silvestre After confirming the importance of the elements of this model we will now report a comparison of the variables in INTEC and the international standards by countries. For these comparisons we used analysis of variance (ANOVA) and report only those factors that had significant differences between countries.

Differences Across Countries Dr. Emmanuel Silvestre This table summarizes the statistics of the ANOVA tests. The differences between countries were confirmed in post hoc tests with the Bonferroni correction, at least at the level of.05.

Differences Across Countries Dr. Emmanuel Silvestre COL > MEX = DR > CHI

Differences Across Countries Dr. Emmanuel Silvestre COL > MEX = DR > CHI

Differences Across Countries Dr. Emmanuel Silvestre COL > MEX = DR > CHI

Differences Across Countries Dr. Emmanuel Silvestre COL > MEX = DR > CHI

Differences Across Countries Dr. Emmanuel Silvestre COL > MEX = DR > CHI

Differences Across Countries Dr. Emmanuel Silvestre COL > MEX > DR > CHI

Differences Across Countries Dr. Emmanuel Silvestre COL = MEX > DR = CHI

Conclusions Dr. Emmanuel Silvestre Sample  The sample from INTEC of 2014 was comparable with those of the previous three years because of their similar proportions of employee category, age, sex, educational level and job tenure  The confidence interval gives it an acceptable representativeness

Demographic variables Dr. Emmanuel Silvestre At INTEC we found higher proportions of employees with graduate degrees, and less with technical degrees, than at LAU. In INTEC there are more old and new employees, and less in the intermediate seniority categories than in LAU.

Analytical Model Dr. Emmanuel Silvestre Correlations between perceived organizational performance and affective and normative commitments were slightly lower in INTEC than in LAU. So did the correlation between OC and normative commitment.

Analytical Model Dr. Emmanuel Silvestre At INTEC, the OC is a better predictor of perceived organizational performance than in LAU. Similarly, in INTEC, human management practices are better predictors of OC and emotional commitment than in LAU.

Analytical Model Dr. Emmanuel Silvestre In none of the participants universities the human management practices can predict the continuity and the normative commitments. It is the same with the OC and the prediction of those commitments. The OC itself can predict the affective commitment in all participant universities.

Analytical Model Dr. Emmanuel Silvestre Overall, we conclude that the analytical model is supported with slight differences between INTEC and the other universities in the study.

Comparison Across Countries Dr. Emmanuel Silvestre In Human Management Practices, Performance Orientation, Staff Conservation Orientation, Perceived Organizational Performance and Organizational Climate, INTEC is level with Mexico, below Colombia and above Chile

Comparison Across Countries Dr. Emmanuel Silvestre In affective commitment, we are over Chile, but below Mexico and Colombia. In continuity commitment we are like Chile, but below Mexico and Colombia, which are level.

Human Capital Practices, Organizational Climate and Commitment on Latin American Universities Performance Dr. Emmanuel Silvestre and MS Oliver Cruz from INTEC & Magíster Alejandro Sanín, CINCEL, Colombia April 5-8, 2016 Annual Conference and Assembly Meeting (ACAM)