Employee empowerment and HR flexibility in Information Technology SMEs

Abstract

HR systems in IT organizations need to be flexible to enable them to adjust to the fast rate of technological change. Employee empowerment, often practiced at IT organizations under the banner of agile practices, has been highlighted as likely to enable HR flexibility. Based on a research panel based survey of top managers at 163 IT organizations in New Zealand and Australia, we confirmed positive effects of employee empowerment on four dimensions of HR flexibility: resource flexibility in employee skills and behaviors, coordination flexibility in employee skills and behaviors, resource flexibility in HR practices, and coordination flexibility in HR practices. The results are consistent with the view that, at IT organizations, employee empowerment both promotes employee ability and willingness to be flexible and facilitates the organizational structures and practices that enable flexible use of HR resources.