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Annals of Public and Cooperative Economics 89:2 2018 pp. 323–338 HUMAN RESOURCE MANAGEMENT PRACTICES AND EMPLOYEE JOB SATISFACTION IN NONPROFIT ORGANIZATIONS by Ramon BASTIDA ∗ Universitat Internacional de Catalunya, Spain Frederic MARIMON Universitat Internacional de Catalunya, Spain and Llu ´ s CARRERAS Universitat Rovira i Virgili, Spain ABSTRACT: The purpose of this study is to establish a measurement scale for hu- man resource management (HRM) practices in nonpro t organizations and to analyze their impact on employee job satisfaction. An exploratory factor analysis (EFA) using a principal components was performed. The analyzed sample is composed of 62 organiza- tions with 2,030 employees. The results demonstrate that 8 out of 20 analyzed variables determine the measurement scale of HRM practices in these organizations. These vari- ables are related to psychological demands, active work and development possibilities, social relations and leadership, and the degree of coherence in the organization with its principles. According to the results, these practices have an impact on employee job satisfaction. We believe that these results are relevant due to the lack of similar studies and the relevance of nonpro t organizations as job creators in the European Union. Keywords: Human resource management, HRM practices, Job satisfaction, Nonpro t organizations 1Introduction Many studies demonstrate that human resources are a key factor in establishing a com- petitive advantage and signi cantly in uence the success or failure of organizations (Moreau 2016, Gould-Williams 2003). There is an increasing number of organizations that practice active human resource management (HRM) policies to obtain better nan- cial, organizational, and job satisfaction outcomes. There are numerous studies focused on for-pro t organizations (FPO), which indicate that the application of HRM practices ∗ E-mail: [email protected] ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC. Published by John Wiley & Sons Ltd, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA 324 RAMON BASTIDA, FREDERIC MARIMON AND LLU ´ IS CARRERAS has positive effects on the performance of the organization (Ridder and McCandless 2010, Guest 1997) and employee satisfaction (Vermeeren et al. 2014, De Winne and Sels 2010). Nonpro t organizations (NPOs) face increasing expectations to transform them- selves into exible, more responsive units that make ef cient use of their scarce re- sources, while serving the needs of their various stakeholders more effectively (Ridder et al. 2012, Akingbola 2013a). NPOs are simultaneously confronted with the need to demonstrate accountability, comply with funders’ priorities and provide a wider range of high-quality services against a background of drastic nancial cutbacks and increasing market-related competition (Frumkin and Andre-Clark 2000, Kellock Hay et al. 2001). In light of these demands to improve performance, HRM is claimed to play an increasingly important role in enhancing the effectiveness and ef ciency of NPOs. As employees are viewed as an indispensable resource to achieve the organization’s mission, investments in HRM practices that enhance employee skills, participation in decisions, and motivation are seen as a means for coping with the aforementioned challenges (Conway and Monks 2008, Parry et al. 2005). As noted above, there are studies that analyze the impact of HRM practices on job satisfaction in FPOs. Yet we have found few similar studies in the eld on NPOs. Thus, we propose a study with the following objectives: To de ne and validate a measurement scale on the key HRM practices in NPOs. To analyze the impact of the key HRM practices on employee’s job satisfaction.

A deep analysis is needed in order to understand the effects of HRM practices on employee job satisfaction in NPOs. Findings will give information about similarities and differences between FPOs and NPOs, which have different characteristics, and will help to identify which HRM practices contribute to increased employee satisfaction in NPOs, which is a key factor for this type of organization. According to Melnik et al. (2013), organizations with satis ed employees tend to have a low employee turnover rate, given that not-satis ed employees are more likely to leave their jobs for other jobs or be absent more often than employees who are satis ed. The paper is organized as follows. Section 2 is a literature review. Section 3 presents the hypothesis and the methodology used. Section 4 describes the sample ana- lyzed and the reasons for its selection. Section 5 presents the results obtained. Section 6 synthesizes the discussion, and nally Section 7 presents the conclusions and discusses limitations and future lines of research.

2 Theoretical framework 2.1 HRM and job satisfaction in the private sector Many studies have examined the effects of HRM practices on rms’ performance and turnover (Ichniowski et al. 1997, Walk et al. 2014, Vermeeren et al. 2014). However, there have been fewer studies that examine the effects of HRM practices on employees. A common approach has been to study the impact of HRM practices on employee attitudes and behavior, which positively in uences job satisfaction and subsequently increases organizational outcomes (Walk et al. 2014, Vermeeren et al. 2014). ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC HRM PRACTICES AND EMPLOYEE JOB SATISFACTION IN NONPROFITS 325 Job satisfaction represents an overall assessment of one’s job and is a general indi- cator of the quality of one’s work experience. Important determinants of job satisfaction include: working conditions, relationships with supervisors and governing bodies, job characteristics (autonomy, stress, intrinsic interest of the job), individual characteris- tics (gender, family responsibilities), and working environment (trust, perceived ethi- cal climate and equity) (Hampton and Hampton 2004, Yang and Chang 2008, Gilbert, De Winne and Sels 2011). Berg (1999) uses a sample of US steelworkers to examine the effect of high- performance work practices on job satisfaction. A wide range of high-performance work practices are considered. This article shows that high-performance work practices have a generally positive effect on job satisfaction. It also shows that jobs that allow employ- ees to use their knowledge and skills and provide some autonomy and opportunities for learning, lead to higher levels of satisfaction. However, practices that link pay to performance, share information with workers, provide employment security, or involve employees in decisions do not affect job satisfaction. Kaya et al. (2010) have explored the relationships among HRM practices, orga- nizational climate and job satisfaction in the Turkish banking sector. They investigate several HRM practices from the perspective of job satisfaction – including behavior and attitudes in recruitment and selection, teamwork, extensive training, written poli- cies, training in multiple functions, incentives, performance appraisal, and feedback on performance on job satisfaction. Their ndings are interesting because they note that re- cruitment and selection, team work, and work environment make a positive contribution to job satisfaction. Petrescu and Simmons (2008) investigate the relationship between HRM practices and employee’s job satisfaction using two British datasets, the ‘Changing Employment Relationships, Employment Contracts and the Future of Work Survey’ (CERS), con- ducted in 2000, and the 1998 Workplace Employment Relations Survey (WERS). They nd that HRM practices have a statistically signi cant, and in some cases substantial effect on employee’s overall job satisfaction. Speci cally, they nd that employees enjoy on-going learning and job autonomy. Close work supervision is disliked, but workers enjoy some visual assessment of their performance, suggesting that some monitoring is desirable. Furthermore, giving employees a ‘voice’ through involvement schemes has a positive effect on job satisfaction. Using American data on local government employ- ees, Kim (2002) found that a participative management style, employee participation in decisions, and strategic communication are positively associated with high levels of job satisfaction. Other authors found that HRM practices or employee’s perceptions of them in- uence employee’s satisfaction (Kurland and Egan 1999, Kim 2002, Tortia 2008). In particular, job satisfaction is expected to be greater in ‘high-trust’ organizational cul- tures and high commitment HR systems (Gould-Williams 2003, Marescaux et al. 2010), as well as in fairer and more participative organizations (Tortia 2008, Kim 2002). Tortia (2008) con rmed the strong positive effects of perceived fairness on workers’ satisfaction in the services sector in Italy. Helliwell and Huang (2005) and Warton et al. (2000) particularly stressed the link between satisfaction and social context in the workplace (workplace trust, teams’ social structure); Deshpande (1996) and Tsai and Huang (2008) related satisfaction ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC 326 RAMON BASTIDA, FREDERIC MARIMON AND LLU ´ IS CARRERAS to perceived ethical climate; while many other authors have shown the positive link between satisfaction and organizational ethics or corporate social responsibility (Valentine and Barnett 2003, Valentine and Fleischmann 2008). Scholars clearly agree that HRM practices have important effects on job sat- isfaction among employees in FPOs. In that sense, there is a consensus that HRM practices focused on improving the work climate conditions and giving opportunities to learn and develop employee’s knowledge and skills have positive effects on their job satisfaction. Other HRM practices, such as giving autonomy to employees and giving them the opportunity to participate in taking decisions, also contribute to increased job satisfaction. However, some scholars have concluded that employees don’t like a high level of autonomy and they prefer to be monitored and assessed periodically (Petrescu and Simmons 2008). Furthermore, some scholars identi ed that HRM practices such as sharing information with employees and involving them in decisions can have negative effects on employee job satisfaction (Berg 1999). As we noted above, there is no consensus in the effects of these last practices on employee’s job satisfaction.

Finally, according to Berg (1999), practices linking pay to performance, which have been extensively implemented in FPOs, can produce negative effects on employee job satisfaction. In the next section, a literature review on the relationship between HRM practices and job satisfaction in NPOs is developed, in order to analyze the existing similarities and differences with FPOs.

2.2 HRM and job satisfaction in the nonpro t sector The current studies on HRM practices in NPOs focus predominantly on the func- tional areas such as recruitment and selection, training and compensation bene ts.

NPOs are confronted with a range of dif culties in recruiting quali ed staff. Given funding pressures, NPOs face a shift to more project-based funding with an increase in temporary contracts. As a result of these changing employment conditions and compe- tition for quali ed candidates, studies indicate the recruitment of less-quali ed staff, which has a negative impact on employee morale, satisfaction and commitment, as well as reducing service effectiveness (Cunningham 2001, Parry et al. 2005). Ridder and McCandless (2010) found that HRM plays an important role in provid- ing better management for NPOs. In that sense, Moreau (2016) af rmed that a move- ment towards professionalization of social enterprises is observed, as a consequence of important changes in the social enterprise sector (e.g. increased complexity of legal and institutional frameworks; focus on impact evaluation; transformation of public funding schemes; increased competition). Those changes pressure the functioning ability of social enterprises and strongly impact their HRM practices. In light of the push toward performance-related management, several studies imply that in complying with funders’ priorities and out of the intention to increase effectiveness on the job, NPOs are introducing best practices in training, such as formal training procedures as in the public or for-pro t sector (Cunningham 2001, Palmer 2003, Parry et al. 2005). Studies on the effects of these best practices reveal that an increase in employee training and development is related to higher levels of employee morale, ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC HRM PRACTICES AND EMPLOYEE JOB SATISFACTION IN NONPROFITS 327 lower employee absenteeism, and positively associated with organizational performance (Rodwell and Teo 2004, Rondeau and Wagar 2001). Literature has shown that there exists a link between HRM and performance in NPOs (Lengnick-Hall et al. 2009, Akingbola 2006 2013b). For instance, Rodwell and Teo (2004) demonstrate a positive and signi cant relationship between HRM and organizational performance among NPOs and FPOs in the health service sector. Some scholars suggest that nonpecuniary bene ts matter in NPOs offering com- pensating differentials in exchange for their employees accepting lower wages and extrinsic rewards (Cunningham 2005, Parry et al. 2005). Yet, extant studies provide diverse ndings on whether NPOs provide greater bene ts such as exible working arrangements, career mobility, health insurance, work-family policies, and child care in comparison to their public and for-pro t counterparts (Barbeito and Bowman 1998, Benz 2005, Haley-Lock and Kruzich 2008, Lynn 2003). Eaton (2000) indicates that HRM practices such as more training, more infor- mation sharing, higher hourly wage rates, and bene t packages are associated with outcomes such as employee turnover and service quality. Extensive research highlights a form of commitment which is considered spe- ci c for public and nonpro t sectors. This form of commitment is encompassed by the concept of public-service motivation (PSM), also known in economics as pro-social mo- tivation theory (Franc ¸ ois 2000, Perry and Wise 1990, Brewer et al. 2000). The major contribution of the PSM concept is in emphasizing differences between public, non- pro t and private sector employees with respect to PSM-related dimensions includ- ing reward preferences, commitment and job involvement, employee sorting and job satisfaction. Lanfranchi and Narcy (2008) provided more detailed results using a dataset of EU NPOs in the service sector. They found that job satisfaction of NPO employees was mainly due to job characteristics, such as higher autonomy and intrinsic interest of the job. As noted above, studies of NPOs concluded that higher levels of autonomy con- tribute to improved employee job satisfaction. In that sense, giving autonomy to the employees improves their job satisfaction in both NPOs and FPOs. However, intrinsic interest in the job and social contribution are valued positively by NPOs employees, while they are not mentioned in studies related to FPOs.

3 Hypothesis and methodology Currently, NPOs use HRM practices to improve job performance and employee’s job satisfaction. Some studies have analyzed the effects of the application of these prac- tices on the performance of employees. However, there is few studies to date that analyze the effect of the application of these techniques on the job satisfaction of employees in NPOs. Therefore, we adopted a two-fold design to accomplish the two main aims of the present study: (i) de ning and validating a measurement scale to assess the HRM prac- tices in this speci c setting of organizations and (ii) assessing the impact of these HRM practices on employee’s job satisfaction.

©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC 328 RAMON BASTIDA, FREDERIC MARIMON AND LLU ´ IS CARRERAS First, a HRM practice scale will be de ned and validated. Scales have been used in many empirical studies in order to identify factors that measure a certain dimension.

This technique has been used in many elds related to management, such as service quality assessment, and alliances and collaborations between organizations (Bastida et al. 2017, Worthington and Whittaker 2006). A new scale for HRM practices in NPOs is needed because, as far as we know, no other scale exists that allows us to measure this dimension in this particular sector.

Creating this scale will help to identify the HRM practices that are used by NPOs, which are likely to be different from the practices used in FPOs, due to the differences in the aims and functioning of these two types of organizations. We refer to the HRM practices scale as a ‘Management style scale’, because it is composed of different practices that de ne the style of HR managers in NPOs. Second, we seek to establish whether the implementation of HRM practices has an impact on employee job satisfaction in NPOs. Therefore, we test the following hypothesis:

HRM practices have a signi cant impact on job satisfaction in NPOs. Speci cally, with respect to the rst aim, we conducted an initial explanatory factor analysis (EFA) using principal components. Principal Component Analysis (PCA) is a statistical technique used to examine the interrelations among a set of variables in order to identify the underlying structure of those variables. The goal of PCA is to explain the maximum amount of variance with the fewest number of principal components. PCA assumes the data set to be linear combinations of the variables. PCA is commonly used in the social sciences, market research, and other study elds that use large data sets. We proceed with a con rmatory factor analysis (CFA) through the structural equa- tion modelling (SEM) technique. For practical reasons, in addition to the assessment of this scale, the analysis of employee job satisfaction was also conducted. Once the Management style scale was established, we implemented another model to analyze the pathway between this construct and another construct that assesses employee job satisfaction. SEM was also involved in this model. As noted above, NPOs have important functional differences compared to FPOs. Through this study, we aim to establish whether HRM practices that have an impact on job satisfaction are the same in both types of organizations.

4Analyzedsample The analyzed sample is composed of 62 organizations that take part in the Social Report in the region of Catalonia. These organizations can be categorized as follows: (i) 53 per cent are cooperatives dedicated to work integration of people and groups with special dif culties, and registered as NPOs, (ii) 41 per cent are associations and foundations, and (iii) 6 per cent are other types of organizations with social purposes. These organizations represent 56,879 people associated as partners, board members, volunteers, etc. They have 2,030 employees. They account for €48.1m in annual billing and collect €10.4m in public subsidies. The analyzed sample represents a small percentage of the 7,500 NPOs with approximately 100,000 employees that are registered in Catalonia, although they represent almost 20 per cent of people involved in the Catalonian NPO sector (Taula ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC HRM PRACTICES AND EMPLOYEE JOB SATISFACTION IN NONPROFITS 329 Table1–Structureofthesocialreportquesti onnaire Subject areas Sections Economic activity – Activities, products, and relationships with clients – Economic management – Anticipation, innovation, and perspectives Work and social relations – Production, organization of work – Human resources– Internal actors in the company Environment – Social, work, and institutional environment – Biophysical environment– Objectives, values, ethics Tercer Sector 2012). Given the dif culties in obtaining HRM information for the NPO sector, data from the Social Report is useful to make an analysis that might be improved in the future with an extended sample. The Social Report was developed in France in 1977 to address the need for a method to present accounting information that informs entrepreneurs and external users of work conditions, work accidents, wages, union activities, employee activities, etc. The Social Report encapsulates a methodology for self-diagnosis and continuous improvement, designed to measure the social and environmental contributions of or- ganizations and the creation and distribution of economic value. The methodology was designed by Xarxa d’Economia Solid ` aria (XES), created in a participatory manner, and inspired by models of international standards such as the Global Reporting Initiative (GRI) and other evaluation systems, including the European Foundation for Quality Management (EFQM), the Eco-Management and Audit Scheme (EMAS) and the Com- mon Good Report of the Economy for the Common Good. The Social Report is based on a questionnaire divided into three major subject areas and nine parts, see Table 1. The Social Report is composed of 30 indicators, divided into the following groups: commitment to democracy, equality, environment, social commitment, quality of work, and professional quality. To conduct this study, we have focused on work quality. This section includes questions on different dimensions that measure the quality of work provided by these organizations to their employees. The dimensions analyzed include: environmental con- ditions, psychological demands, development possibilities, social relations and leader- ship, compensation, balancing of work life and family, the degree of coherence of the organization with its principles, and overall job satisfaction. Table 2 indicates the dimensions and items or questions included in each.

We have obtained 2,030 observations. The answers to each question are measured on a Likert scale ranging from 1 to 10. The use of the measurement scale permits a statistical study of the results obtained. As observed in Figure 1, the year 2012 was the year with the highest number of organizations contributing to the Social Report since XES created it, and started to promote it among organizations that operate in the ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC 330 RAMON BASTIDA, FREDERIC MARIMON AND LLU ´ IS CARRERAS Table2–Dimensionsanditemsregardingjobsatisfaction CODE DIMENSION ITEM V1 ENVIRONMENT CONDITIONS Evaluate the physical conditions of your work environment (temperature, light, noise . . . ) V2 ENVIRONMENT CONDITIONS Evaluate the quality and availability of equipment and tools for the execution of your workV3 ENVIRONMENT CONDITIONS Evaluate the security of your working environment regarding uncontrolled risk situationsV4 PSYCHOLOGICAL DEMANDS Evaluate the adequacy of the workload level in working hoursV5 PSYCHOLOGICAL DEMANDS Evaluate the degree of adaptation of the work you do in relation to your knowledgeV6 PSYCHOLOGICAL DEMANDS Evaluate the possibility of concentration that your direct environment allowsV7 ACTIVE WORK AND POSSIBILITIES OF DEVELOPMENT Evaluate the degree of autonomy you have to organize work yourselfV8 ACTIVE WORK AND POSSIBILITIES OF DEVELOPMENT Evaluate the opportunities for training and professional development offered by the organization V9 ACTIVE WORK AND POSSIBILITIES OF DEVELOPMENT Evaluate the opportunities you have to participate in the general running of the organizationV10 SOCIAL RELATIONSHIP AND LEADERSHIP Evaluate the work environment (general environment, relationship with colleagues, etc.)V11 SOCIAL RELATIONSHIP AND LEADERSHIP Evaluate the forms of con ict resolution in the organization and the quality of leadershipV12 SOCIAL RELATIONSHIP AND LEADERSHIP Evaluate the level of support you receive from your colleagues workV13 COMPENSATION Evaluate your salaryV14 COMPENSATION Evaluate the degree of compliance of the organization with respect to the payment of wages V15 COMPENSATION Evaluate the degree of stability that your job provides youV16 BALANCE OF WORK AND FAMILY LIFE If you need to change or schedule work to your home, evaluate the extent you can do soV17 BALANCE OF WORK AND FAMILY LIFE Evaluate the level of balance between work and personal life in your jobV18 DEGREE OF CONSISTENCY OF THE ORGANIZATION WITH ITS PRINCIPLES Evaluate the Internal democracy V19 DEGREE OF CONSISTENCY OF THE ORGANIZATION WITH ITS PRINCIPLES Evaluate the equality V20 DEGREE OF CONSISTENCY OF THE ORGANIZATION WITH ITS PRINCIPLES Evaluate the respect for the environment V21 OVERALL SATISFACTION Evaluate the degree of satisfaction that the work you do gives you V22 OVERALL SATISFACTION Evaluate your overall satisfaction with membership in the organization ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC HRM PRACTICES AND EMPLOYEE JOB SATISFACTION IN NONPROFITS 331 0 10 20 30 40 50 60 70 2007 2008 2009 2010 2011 2012 Figure 1 – Growth in the number of organizations that have presented the social report [Colour gure can be viewed at wileyonlinelibrary.com] Catalonian social economy. Although more recent data are available, we considered that the results obtained with this sample are representative of the studied phenomena, and priority was given to obtaining the largest sample. As noted above, the analyzed database is formed by employee’s perceptions on different dimensions related to HRM practices implemented by the NPOs. We assume that employee’s perceptions are useful to measure the implementation of HRM practices in NPOs, although Edgar and Geare (2005) pointed out that employee’s perceptions might be in uenced by the way that organizations implement HRM practices. In this case, all the organizations included in the sample are XES members and they share similar techniques for implementing HRM practices. Therefore, employee perceptions should prove useful for the measurement of HRM practice implementations.

5Results 5.1 De nition and validation of a measurement scale to assess the management style for the NPOs An EFA using a PCA with 20 items of HRM practices was performed. A Kaiser– Meier–Olkin statistic of 0.823 forecast a good result in this analysis. Barlett’s test also underpinned the same conclusion ( χ2= 993.3, 109 degrees of freedom and p-value = 0.000). These results con rmed a linear dependence between the variables and sup- ported our view that the results were sound. A total of ve factors with an eigenvalue greater than 1 (the Kaiser criterion), accounting for 73.5 per cent of the variance in the sample, emerged. Table 3 shows the factors suggested. Only items with load greater than 0.60 on one factor and simultaneously less than 0.4 on another were retained items. Stricter criteria were applied in order to obtain more robust results (Cabrera-Nguyen 2010). These factors are marked in gray in Table 3. Only one factor was clearly de ned. The four remaining factors were formed by items that were also loading onto other factors simultaneously. This single factor, which accounts for the 29.2 per cent of the variance in the 20 items, was labeled ‘Management style’. As noted above, another EFA with only two items for employee satisfaction was also conducted.

©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC 332 RAMON BASTIDA, FREDERIC MARIMON AND LLU ´ IS CARRERAS Table3–Matrixofthe vecom ponents extracted by principal components analysis and varimax rotation from the items of non-pro t organizations management style 12 345 V18 0.819 −0.440 V10 0.806 V7 0.802 V12 0.799 V11 0.786 V19 0.771 V9 0.725 −0.503 V20 0.699 V8 0.694 V17 0.682 0.422V4 0.664 0.409V6 0.640 −0.422 V5 0.628 V2 0.594V13 0.591 V15 0.461 0.468 0.454V1 0.566 −0.584 V14 0.494 0.539 V16 0.526 0.672 V3 0.470 −0.434 0.587 Table 4 – Loads of the two factors and statistics for their reliability analysis 12 Management Style Satisfaction v5 0.628 v21 0.958v7 0.802 v22 0.958v8 0.694v10 0.806v11 0.786v12 0.799 v19 0.771 v20 0.699 Cronbach’s alpha 0.903 0.911Composite reliability 0.911 0.759Average variance extracted 0.564 0.612 Two different EFAs were run because of the different characteristics of the items analyzed. We considered that the results would be more meaningful if we divided the database into two sets of items related to HRM practices and employee job satisfaction, and analyzed them separately. Table 4 shows the loading factors for each item, proving the individual consistency of the items (0.628–0.958). The reliability (internal consistency) of the dimensions is con rmed by Cronbach’s alpha and the composite reliability (CR), which are all above 0.7 (Hair et al. 2010). In addition, the variance extracted for each scale was greater than 0.5. ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC HRM PRACTICES AND EMPLOYEE JOB SATISFACTION IN NONPROFITS 333 Table5–Correlationmatrixofthelatentfactors 12 1 Management Style 0.751 2 Satisfaction .777 ∗ 0.782 ∗Signi cant correlation at 0.01 level (bilateral).Diagonal elements are the square roots of the average extracted. Table 6 – Con rmatory factor analyses (CFA) for the management style construct Items Standardized load t-value r2 V5 0.540 – 0.291 V7 0.700 4.022 0.490V8 0.685 3.673 0.469V10 0.855 4.556 0.731V11 0.866 3.763 0.750V12 0.841 4.317 0.708V19 0.767 4.066 0.588V20 0.684 4.085 0.468 Discriminant validity was analyzed using the linear correlations or standardized covariances between latent factors by examining whether inter-factor correlations were less than the square root of the average variance extracted (AVE). Table 5 shows that the square roots of each AVE were greater than the off-diagonal elements. Discriminant validity was guaranteed (Hair et al. 2010). The next step was the con rmatory factor analysis for the management style con- struct. The model was estimated by using the robust maximum likelihood method from the asymptotic variance–covariance matrix. The t indices obtained in the measurement model estimation showed that the variables converged towards the factors established in the CFA (see Table 6). The global t was acceptable: χ2Satorra–Bentler was 29.00, with 20 degrees of freedom and a p-value of 0.0877; χ2/df was 1.45, which was below the acceptable limit of 5; the root mean square error of approximation (RMSEA) was 0.081; and the comparative t index (CFI) was 0.955.

5.2 Assessing the impact of management style on employee job satisfaction in NPOs A new model, in which the factor of management style was an antecedent of the factor of ‘employee’s job satisfaction’, was implemented. The same robust maximum likelihood method from the asymptotic variance–covariance matrix was used. The t indices were also suf cient to prove goodness of t ( χ2Satorra–Bentler was 44.44, with 34 degrees of freedom and a p-value of 0.1084; χ2/df was 1.29; RMSEA was 0.067; CFI was 0.961). The standardized pathway between management style and employee’s job satis- faction was 0.089, with an associated t-value of 5.362. ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC 334 RAMON BASTIDA, FREDERIC MARIMON AND LLU ´ IS CARRERAS 6 Discussion This study had two main goals. The rst goal was to de ne and validate a man- agement style scale that measures HRM practices in NPOs. The results indicate that 8 out of the 20 analyzed variables determine the HRM practice in this type of organiz- ation. These variables are related to several dimensions such as psychological demand, active work and possibilities for development, social relations and leadership, and the degree of the coherence of the organization with its principles. Level of work adaptation to employee knowledge, level of autonomy and training opportunities are examples of HRM practices that are included in the management style scale, and have been also cited in previous studies of FPOs (Berg 1999, Kaya et al. 2010). Results con rmed that these practices are relevant in both types of organizations. Other variables included in the management style scale are forms of con ict resolu- tion, level of support received from colleagues, equality and respect for the environment.

These practices were not identi ed in FPOs. Therefore, they can be considered as HRM practices uniquely relevant to NPOs. The second goal of this study was to analyze the impact of the application of HRM practices on employee’s job satisfaction. According to the results obtained, these HRM practices have an impact on employee’s job satisfaction. Hence, we can claim that employee’s job satisfaction is correlated to the following eight variables: the degree of job t to knowledge, autonomy, training and development opportunities, work environment, forms of con ict resolution and leadership quality, help from colleagues, equality, and respect for the environment. These results coincide with those found in studies done by Berg (1999), Petrescu and Simmonds (2008), and Kaya et al. (2010). Regarding the results, the relationship between management style construct and employee job satisfaction is con rmed, and the results are in line with previous studies developed within FPOs. However, we identi ed some HRM practices which are partic- ular to NPOs, such as forms of con ict resolution, and level of support from colleagues, that should be carefully considered by managers in this type of organization. We also found that some practices present in FPOs, such as pay-to-performance linkage, are not included in the management style scale in NPOs, and therefore have no effect on employee job satisfaction in NPOs. These ndings are consistent with previous studies (Lanfranchi and Narcy 2008).

7 Conclusions Human resources are a key factor in uencing the success or failure of organiz- ations, and an increasing number of organizations implement active HRM practices in order to improve organizational performance, employee job satisfaction, etc. Currently, NPOs face increasing expectations to transform themselves in order to attract talented employees, and improve their effectiveness and ef ciency using their scarce resources.

HRM plays an increasingly important role in this. HRM practices in FPOs have been extensively studied, as have their relationships with employee performance and satisfaction. However, there is a lack of studies focused ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC HRM PRACTICES AND EMPLOYEE JOB SATISFACTION IN NONPROFITS 335 on the nonpro t sector. Thus, further research on HRM in NPOs is needed. The rst objective of this study was to de ne and validate a measurement scale of HRM practices in NPOs. This ‘management style scale’ was composed of eight items or practices – the degree of job t to knowledge, autonomy, training and development opportunities, work environment, forms of con ict resolution and leadership quality, help from colleagues, equality, and respect for the environment. The second objective was to analyze the impact of key HRM practices on employee job satisfaction. Results con rmed that there is a signi cant correlation between the HRM practices included in the management style scale and employee job satisfaction construct. We believe that these results are timely, due to the lack of similar studies and the signi cance of NPOs as job creators in the European Union. The study sheds light on the implementation of HRM practices in NPOs and analyzes the similarities and differences with FPOs. It also contributes to a better understanding of the relationship between HRM practices and employee job satisfaction in NPOs. The ndings may also be useful for practitioners planning to implement HRM practices in their organizations. The study was performed with a sample of organizations that were focused in a very constricted geographical scope. It would be worthwhile to extend the analyzed sam- ple and the geographical scope of the organizations studied. Variables used to measure the job satisfaction levels might also be broadened. In this study, two variables (V21 and V22) were applied. By increasing the number of variables, we believe that more robust re- sults could be obtained. Finally, a cluster robust standard error technique might be used in order to control for organization effects caused when error terms within the organiza- tions are more similar to each other than error terms between the organizations. To avoid these problems of ef ciency and bias, the robust standard errors technique was used, but using cluster robust standard errors would help to control for organization effects. REFERENCES AKINGBOLA K., 2006, ‘Strategy and HRM in nonpro t organizations: Evidence from Canada’, International Journal of Human Resource Management , 17, 1707–1725. AKINGBOLA K., 2013a, ‘Contingency, t and exibility of HRM in nonpro t organiza- tions’, Employee Relations , 35, 479–494. AKINGBOLA K., 2013b, ‘A model of Strategic Nonpro t Human Resource Management’, Voluntas , 24, 214–240. BARBEITO C. L. and BOWMAN J. P., 1998, Nonpro t Compensation and Bene ts Practices , New York: Wiley. BASTIDA R., MARIMON F. and TANGANELLI D., 2017, ‘Alliance success factors and performance in social economy enterprises’, Management Decision , 55, 1–18. BENZ M., 2005, ‘Not for the pro t, but for the satisfaction? Evidence on worker well- being in non-pro t rms’, Kyklos , 58, 155–176. BERG P., 1999, ‘The effects of high performance work practices on job satisfaction in the United States steel industry’, Relations Industrielles , 54, 111–134. ©2017 The Authors Annals of Public and Cooperative Economics ©2017 CIRIEC 336 RAMON BASTIDA, FREDERIC MARIMON AND LLU ´ IS CARRERAS BREWER G., SELDEN, S. COLEMAN and FACER R., 2000, ‘Individual conceptions of public service motivation,’ Public Administration Review , 60, 254–264. CABRERA-NGUYEN P., 2010, ‘Author guidelines for reporting scale development and validation results’, Journal of the Society for Social Work and Research , 1, 99– 103.

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