Current Issue

korean management review - Vol. 53 , No. 1
[Paper List]

[ Article ]
korean management review - Vol. 50, No. 2, pp. 439-466
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 30 Apr 2021
Received 11 Oct 2020 Revised 25 Nov 2020 Accepted 15 Dec 2020
DOI: https://doi.org/10.17287/kmr.2021.50.2.439

The Impact of Age Diversity on Flexible Benefit Plans: The Moderating Roles of the Inflow of Experienced Employees and Environmental Complexity
Jisung Park ; Chiho Ok ; Se Ri No
(First Author) School of Business, Chungnam National University (jspark1@cnu.ac.kr)
(Corresponding Author) College of Business Administration, Kangwon National University (chiho.ok@kangwon.ac.kr)
(Co-Author) Korea Labor Institute (srn@kli.re.kr)

연령 다양성이 선택적 복리후생제도 활용에 미치는 영향: 외부인력 유입과 환경 복잡성의 조절효과

Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.
Funding Information ▼
Abstract

This study pays attention to the necessity for discussion of determinants in the utilization of flexible benefit plans, and examines whether age diversity increases the utilization of flexible benefit plans or not from the intra-organizational ecology perspective. In addition, this study considers the inflow of workforce from the external labor market (experienced employees) and environmental complexity as the critical moderators influencing the relationship between age diversity and the utilization of flexible benefit plans. In other words, this study predicts that these moderators will strengthen the main effect. The results of longitudinal analyses with HCCP datasets showed that age diversity increased the utilization of flexible benefit plans, as predicted. However, the moderating effect of the inflow of workforce from the external labor market was not statistically significant, and the moderating effect of environmental complexity rather demonstrated the opposite direction compared to the hypothesis. More specifically, when the degree of environmental complexity is low, the positive relationship between age diversity and the utilization of flexible benefit plans became more pronounced. In the discussion part, this study provides the possible explanations for unsupported hypotheses, and suggests the implications as well as limitations for future research.

Keywords: flexible benefit plan, age diversity, workforce inflow, environmental complexity, intraorganizational ecology
Acknowledgments

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2020S1A5A8042499).

References
1. Ancona, D. G., and D. F. Caldwell. (1992), “Bridging the Boundary: External Activity and Performance in Organizational Teams,” Administrative Science Quarterly, 37(4), pp.634-665.
2. Baba, M. L.(1995), “The Cultural Ecology of the Corporation: Explaining Diversity in Work Group Responses to Organizational Transformation,” The Journal of Applied Behavioral Science, 31(2), pp.202-233.
3. Barber, A. E., R. B. Dunham, and R. A. Formisano. (1992), “The Impact of Flexible Benefits on Employee Satisfaction: A Field Study,” Personnel Psychology, 45(1), pp.55-74.
4. Barringer, M. W., and G. T. Milkovich. (1994), “The Diffusion of Human Resource Innovations: The Case of Flexible Benefits Plans,” CAHRS Working Paper Series, 94-16, pp.1-20.
5. Barringer, M. W., and G. T. Milkovich. (1998), “A Theoretical Exploration on the Adoption and Design of Flexible Benefit Plans: A Case of Human Resource Innovation,” Academy of Management Review, 23(2), pp.305-324.
6. Beam, B. T., and J. J. McFadden.(2001). Employee Benefits. Chicago, IL: Dearborn Financial Publishing, Inc.
7. Benders, J., L. Delsen, and J. Smits.(2006), “Bikes versus Lease Cars: The Adoption, Design and Use of Cafeteria Systems in the Netherlands,” The International Journal of Human Resource Management, 17(6), pp. 1115-1128.
8. Beyer, J. M., and D. R. Hannah.(2002), “Building on the Past: Enacting Established Personal Identities in a New Work Setting,” Organization Science, 13(6), pp.636-652.
9. Boo, K.(2018), “Changes in the Welfare System of Business Enterprises,” KLI Panel Brief, 11, pp.1-9.
10. Burgelman, R. A.(1991), “Intraorganizational Ecology of Strategy Making and Organizational Adaptation: Theory and Field Research,” Organization Science, 2(3), pp.239-262.
11. Chatman, J. A., J. T. Polzer, S. G. Barsade, and M. A. Neale.(1998), “Being Different yet Feeling Similar: The Influence of Demographic Composition and Organizational Culture on Work Processes and Outcomes,” Administrative Science Quarterly, 43(4), pp.749-780.
12. Cho, S. M., and E. Park.(2011), “Determinants of Corporate Welfare System: Utilizing Workplace Panel Survey,” Journal of Korean Social Welfare Administration, 13(3), pp.201-230.
13. Dencker, J. C., A. Joshi, and J. J. Martocchio.(2007), “Employee Benefits as Context for Intergenerational Conflict,” Human Resource Management Review, 17(2), pp.208-220.
14. Dess, G. G., and D. W. Beard.(1984), “Dimensions of Organizational Task Environments,” Administrative Science Quarterly, 29(1), pp. 52-73.
15. Dierickx, I., and K. Cool.(1989), “Asset Stock Accumulation and Sustainability of Competitive Advantage,” Management Science, 35(12), pp.1504-1511.
16. Dulebohn, J. H., J. C. Molloy, S. M. Pichler, and B. Murray.(2009), “Employee Benefits: Literature Review and Emerging Issues,” Human Resource Management Review, 19 (2), pp.86-103.
17. Employee Benefit Research Institute(1995). EBRI Databook on Employee Benefits. Washington, D.C.: Employee Benefit Research Institute.
18. Feldman, D. C., and J. M. Brett.(1983), “Coping with New Jobs: A Comparative Study of New Hires and Job Changers,” Academy of Management Journal, 26(2), pp.258-272.
19. Gao, M., and K. Kim.(2015), “A Study on the Relationship between the Heterogeneity of the Top Management Team and Firm Performance: Focusing on the Moderating Effects of Environment,” Journal of Information Technology and Architecture, (12)2, pp.195-205.
20. Hewitt Associates.(1995). Flexible Compensation Programs and Practices: 1994-95. Lincolnshire, IL: Hewitt.
21. Hillebrink, C., J. Schippers, A. van Doorne-Huiskes, and P. Peters.(2008), “Offering Choice in Benefits: A New Dutch HRM Arrangement,” International Journal of Manpower, 29(4), pp.304-322.
22. Jehn, K. A., G. B. Northcraft, and M. A. Neale. (1999), “Why Differences Make a Difference: A Field Study of Diversity, Conflict, and Performance in Workgroups,” Administrative Science Quarterly, 44(4), pp.741-763.
23. Ki, H. I.(2008), “The Impact Of Uncertainty Of Environment And Selection Of Management Strategy In Building Learning Organization And Performance,” Journal of Human Resource Management Research, 15(4), pp.1-20.
24. Kim, H. S.(2013), “The Influence of Corporate Welfare Types on The Degree of Corporate Welfare Satisfaction: Focused on Small and Medium Enterprises of Daegu Kyeung-buk Region,” Korean Business Education Review, 28(6), pp.1-22.
25. Lee, C. H., M. L. Hsu, and N. H. Lien.(2006), “The Impacts of Benefit Plans on Employee Turnover: A Firm-Level Analysis Approach on Taiwanese Manufacturing Industry,” The International Journal of Human Resource Management, 17(11), pp.1951-1975.
26. Lee, K. P., and H. K. Park.(2006), “A Exploratory Study on Causal relations with Hotel’s Environmental Uncertainty, Learning Orientation and Organization Performance,” International Journal of Tourism Management and Sciences, 20(3), pp.305-328.
27. Lin, Z., J. Kelly, and L. Trenberth.(2011), “Antecedents and Consequences of the Introduction of Flexible Benefit Plans in China,” The International Journal of Human Resource Management, 22(5), pp.1128-1145.
28. McArthur, A. W., and P. C. Nystrom.(1991), “Environmental Dynamism, Complexity, and Munificence as Moderators of Strategy-Performance Relationships,” Journal of Business Research, 23(4), pp.349-361.
29. McCaffery, R. M.(1992). Employee Benefit Programs: A Total Compensation Perspective. Boston: PWS-KENT Publishing Company.
30. Miles, R. H.(1980). Macro Organizational Behavior. Santa Monica, CA: Goodyear.
31. Milliken, F. J., and L. L. Martins.(1996), “Searching for Common Threads: Understanding the Multiple Effects of Diversity in Organizational Groups,” Academy of Management Review, 21(2), pp.402-433.
32. No, S., H. J. Bang, M. H. Kim, and J. Park.(2019). A Study about the Policy of the Establishment for a Customized Welfare Model for Small and Medium Enterprises. Korea Labor Institute, Seoul, Korea.
33. No, S., M. H. Kim, and J. Park.(2018). A Study on the Development of Welfare System for Organizations. Korea Labor Institute, Seoul, Korea.
34. O'Reilly, C. A., D. F. Caldwell, and W. P. Barnett. (1989), “Workgroup Demography, Social Integration, and Turnover,” Administrative Science Quarterly, 34(1), pp.21-37.
35. O'Reilly, C. A., R. Snyder, and J. Boothe.(1993), “Effects of Executive Team Demography on Organizational Change,” in G. P. Huber and W. P. Glick (Eds.), Organizational Change and Redesign, New York: Oxford University Press, pp.147-175.
36. Park, J.(2018), “Aging Workforce and Organizational Innovation: Curvilinearity and the Moderating Role of Age Diversity,” Journal of the Korea Academia-Industrial, 19(6), pp.440-446.
37. Park, J., Y. Jeong, and J. Choi.(2018), “Role of Person-Organizational Value Fit and Job Performance in Voluntary Turnover of Managerial-level Newcomers: An Application of Event History Analysis,” Korean Journal of Management, 26(1), pp.63-84.
38. Park, J., and S. Y. Shin.(2019), “Age Diversity and Organizational Innovation: The Effects of Innovation Types and the Moderating Role of Organizational Culture,” Journal of the Korea Academia-Industrial, 20(8), pp.539-547.
39. Park, W. S.(2001), “The Introduction and Challenges of the Flexible Benefit Plans,” KEF Compensation Quarterly, 9(2), pp.4-25.
40. Pelled, L. H., K. M. Eisenhardt, and K. R. Xin. (1999), “Exploring the Blackbox: An Analysis of Workgroup Diversity, Conflict, and Performance,” Administrative Science Quarterly, 44(1), pp.1-28.
41. Schnake, M. E.(2016), “Antecedents and Outcomes of Employee Benefit Satisfaction: An Updated Model,” American Journal of Management, 16(3), pp.34-40.
42. Tsui, A. S., T. D. Egan, and C. A. O'Reilly.(1992), “Being Different: Relational Demography and Organizational Attachment,” Administrative Science Quarterly, 37(4), pp.549-579.
43. Van de Ven, A. H., and M. S. Poole.(1995), “Explaining Development and Change in Organizations,” Academy of Management Review, 20(3), pp.510-540.
44. Vidal-Salazar, M. D., E. Cordón-Pozo, and J. M. de la Torre-Ruiz.(2016), “Flexibility of Benefit Systems and Firms’ Attraction and Retention Capacities,” Employee Relations, 38(4), pp. 487-504.
45. Wagner, W. G., J. Pfeffer, and C. A. O'Reilly.(1984), “Organizational Demography and Turnover in Top-management Group,” Administrative Science Quarterly, 29(1), pp.74-92.
46. White, G.(2009), “Diversity in Workplace Causes Rise in Unique Employee Benefits and Changes in Cafeteria Plans,” Journal of Management and Marketing Research, 2, pp.1-9.
47. Williams, K. Y., and C. A. O’Reilly.(1998), “Demography and Diversity in Organisations: A review of 40 years of research,” in B. M. Staw and L. L. Cummings (Eds.), Research in Organizational Behaviour, Greenwich, CT: JAI, pp.77-140.
48. Youndt, M. A., S. A. Snell, and J. W. Dean, Jr., and D. P. Lepak.(1996), “Human Resource Management, Manufacturing Strategy, and Firm Performance,” Academy of Management Journal, 39(4), pp.836-866.
49. Yu, G.(2004), “The Impact of Flexibility in Benefits on Benefits Satisfaction, Pay Satisfaction, and Job Satisfaction,” Journal of Organization and Management, 28(4), pp.25-55.
50. Yu, G., and G. S. Cho.(1999). Flexible Benefit Programs. Korea Labor Institute, Seoul, Korea.
51. Zenger, T. R., and B. S. Lawrence.(1989), “Organizational Demography: The Differential Effects of Age and Tenure Distributions on Technical Communications,” Academy of Management Journal, 32(2), pp.353-376.

∙The author Jisung Park is an assistant professor of the School of Business at Chungnam National University. She earned a Bachelor’s degree of Business Administration (BBA), Master of Science (M.S.), and Doctor of Philosophy (Ph. D.) in business administration at Seoul National University. Before joining a doctoral program, she worked as a senior business consultant at the HRM/Organization consulting firm. Her research interests are strategic human resource management (SHRM), knowledge management (KM), and organizational innovation.

∙The author Chiho Ok is an assistant Professor of the College of Business Administration at Kangwon National University. He received his PhD in management from the Korea University Business School at Korea University. His research interests include strategic human resource management, voluntary turnover, and longitudinal research design.

∙The author Se Ri No is an associate research fellow in the Industrial Relations Research Division at Korea Labor Institute. She earned both master and doctoral degrees of business administration at Hanyang University. Her main research areas are workplace innovation, IT development and labor, manufacturing innovation, and compensation management.

 
Mail : editor_kmr@daum.net
COPYRIGHT ⓒ 2011 Korean Academic Society Of Business Administration. All rights reserved