Lean Production and Organizational Performance: Moderating Roles of Ability- and Motivation-Focused Human Resource Management

Abstract

Lean production (LP) is crucial for improving organisational performance. On the basis of ability-motivation-opportunity theory, this paper provides a new theoretical perspective to explain the interaction effect of human resource management (HRM) and LP on performance. Data from multiple informants from 212 manufacturing plants indicated that when organisations implement ability- and motivation-focused HRM to a high degree, LP is profitable. However, when organisations implement ability- and motivation-focused HRM to a low degree, LP is negatively associated with performance. Therefore, the synergy of LP and these two forms of HRM is critical for performance. Without HRM, LP could damage an organisation. Manufacturers in charge of LP must cooperate with HRM professionals because improving employees` abilities and motivation through HRM supports LP implementation.