Abstracts

The purpose of this study is to advance knowledge and practitioner understanding of human resource dynamics of the U.S. fast food franchise (FFF) industry, one plagued by extraordinary voluntary turnover (VTO), estimated at 75% of total turnover, and its effects on unit productivity. Following the research of Sun, Aryee, and Law (2007), this study looks for the potential of improving the VTO problem through the practice of high-performance human resource management (HPHRM) and the potential benefits of service-oriented organizational citizenship behavior (SOCB) that it offers. This study used primary research, namely the domestic operating units of a nationally franchised sub sandwich chain, with a sample size of 112 units representing 14.8% of the total units and the evaluation of 336 hourly employees. Results showed a strong correlation between HPHRM and VTO, but surprisingly there was no significant relationship between HPHRM and productivity. Despite a modest correlation between HPHRM and SOCB, that relationship did not demonstrate any significant mediating effect on the HPHRM/VTO relationship. The results may indicate a differentiation between the effectiveness of HPHRM and SOCB depending on the performance level of hourly employees, noting that low-performing employees do not respond to HPHRM or demonstrate SOCB as well as others. Numerous opportunities for further research are suggested, especially in light of the size and impact of the domestic FFF industry.