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How Human Resources Management
Strategies Affect Creativity and Innovation?
A Study in Iranian Context
Yashar Salamzadeh1 and Maryam Sadat Mirzadeh
2
1(Public Administration PhD, Farabi Institute of Higher Education, Mehrshahr, Iran)
2(Master Student, Farabi Institute of Higher Education, Mehrshahr, Iran)
Abstract: Creativity and innovation are among an organization's assets, and through them, an organization can
successfully respond to the changes and complexities of the work environment in order to elicit favorable employee
performances. Having creative and innovative employees is an added value for an organization. Creative employees
with novel ideas and organizational innovation will indeed act as a competitive edge for the organization. One
effective way to enhance creativity and innovation among employees is the utilization of human resource
management strategies such as human resource development strategy, staff recruitment strategy, bonus strategies,
employee performance strategy, working relations development strategy, and culture management strategy. The
present study aims to determine the effects of human resource management strategies on innovation and creativity
and it employs a case study approach. The research method is descriptive and it makes use of surveys since it
intends to examine the impact of human resource management strategies on workers' creativity and innovation.
Data is collected through field research and using 155 researcher-made questionnaires. The results are analyzed
using multivariate linear regressions and path analysis. we Found that Human resource management strategies
have a direct and significant impact on employee creativity and innovation and among the above mentioned
strategies, working relations development strategy, has the strongest effect on creativity, and human resource
development strategy, has the highest impact on innovation. Therefore, organization managers are advised to move
towards realization of organizational goals, efficiency improvement, and organizationa l performance effectiveness
through application and modification of executive practices, preparing the ground for education, organizational
learning and culture, using world's latest knowledge and technology, and application of novel management systems
centered around employee creativity.
Keywords: Human Resource Management strategies, Working Relations Development Strategy, Human Resources
Development Strategy, Creativity, Innovation
I. INTRODUCTION Organizations need tools and material resources to achieve production targets and provide services. In
addition to these resources, the most important and most effective source is Human Resources (HR). Due to
continual changes in the environment and its dynamics, growth and progress of the organization depend on HR, the
key element of success. HR strategies attempt to create competitive advantage and greater flexib ility of
organizations in the global markets (Nankervis, et al, 2011). These strategies through programs related to
organizational structures lead to increase in their effectiveness and try to achieve predetermined goals through
several approaches including education, development, employee relations and reward (Cania, 2014). HRM strategies
in line with HR cycle of the organizations consist of four general processes that include the selection of appropriate
organizational staff with jobs, employee performance evaluation, reward, and high quality staff development. In
assessing human resource strategies to improve performance and to support organizational objectives, management
tasks in vertical alignment are as fo llows (Itika, 2011).
Senior organizat ional managers whose task is merging p lans, requirements, and HR activ ities to establish
organizational objectives
Top organizational managers who are trained personnel and among their tasks are merging and reviewing
all levels of organizational management and making final decisions for the organization
HR managers whose task is integrated strategic planning
Strategic HR management is important because it is a tool is to improve organizational performance, use of
potential abilit ies of the employees to achieve organizational goals, proper response to job expectations and staff
development, Alignment of HR strategies with organizational planning and creating a single corporate culture,
creating creative work environment, giv ing importance to innovation, teamwork, quality concept in whole
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organization, and creating a learning and flexib le organization (Burma, 2014). HR management strategies are
assessed in two ways. In the first method, we deal with organizational features as determin ing factors in
organizational ability. In this method, the key communicat ions are identified and their impact on organizational
capabilit ies, behavior, attitude, and skills of employees are checked. In the second method, analysis based on
scientific research and evaluation of employee performance takes place. In this method, instead of directly focusing
on organizational performance through capacity building or staff management processes can be improved and
common ideas of infrastructure can be focused on (Salaman, et al, 2005).
Innovation can happen in the form of change and development of HR strategies, optimizing HR, strategic
and operational planning of HR, optimizing staff costs, capacity, and their ability (Bolton, 2013). Jo ining of the
word "strategic" to "HRM" has a management logic , which leads to focus on the skills of employees. Skills
considered as intellectual capital and a great competit ive advantage and will eventually be a factor for creativity in
employees (Bratton, 2005).
II. REVIEW OF RESEARCH LITERATURE
Definitions
HRM
A definition of HRM is, a scope of relations designed between the main partners of the organizations, the
employer and employee are mentioned that affects all these correlations and activities in order to increase
productivity and efficiency. The contents of HRM (HRM) are variety of activities that will changes as results of
organization's performance (Cristian, 2012).
HRM Objectives
HRM perspective has the following objectives: a) improve ment in the performance of managers against
employees with HRM and use of HRM as a competitive advantage, B) change in management from the traditional
mode that often faces failure and instead use HRM, C) using HRM, organizations will have a place for educated
people, and that with the use of their knowledge and experience development in the organization will be created, D)
HRM requires changes in technology and to implement it, the organization will need more flexib ility, E) many
aspects of HRM such as commitment and motivation are derived from the field o f organizational behavior and
focuses on HRM strategies. As a result, this provides an opportunity to link HRM and organizational behavior
management strategy (Silva, 2011).
The Concept of Strategic Human Resources Management
In strategic management of human resources , the implementation of the following four factors leads to the
success of the organization after the implementation of th is strategy: Performance, quality, flexibility and innovation
(Jery and Souaï, 2014). Strategic management of human resources on the run has the following meanings: The use
of professional planning to improve staff performance, designing and creating a flexible attitude and to-day
management of personnel, coordination and integration of policies and human resource management practices with a
clear strategy, looking at the organization's staff as a "strategic resource" for achieving "competitive advantage ,"
increase of motivation, creativity, and innovation in employee performance, improving the quality of work provided
by the employees, increasing flexib ility in the delivery of teamwork and group work, and enhancing the quality of
teamwork than individual (Danlami, 2012).
Strategic Management Model
In this method, assessment score will be considered for indiv idual or group performance. Group and
individual performance are evaluated both in terms of content and in terms of process performance. It refers to a
series of activities through which the organization looks for evaluation and competence development for staff,
increased performance and rewards distribution. Performance management involves setting large organizations,
team, and individual goals, as a waterfall from the top down that contains a set of meanings of strategic objectives
for the individuals and groups. The use of performance appraisal systems includes appropriate rewards strategies
and plans, training and development strategies and programs, feedback, communication, coaching, individual career
planning, performance management systems and mechanisms for monitoring the effectiveness of interventions and
even cultural management. Thus, performance management includes day-to-day management, support and
development staff (Hartog et al, 2004).
Human Resources Development Strategy
Human Resources Development Strategy is synonymous with policies related to labor quality and market
regulation. The relative role and overall importance of human resource development depend on the economy of any
country in individual. What is more important in human resource development strategies is the interaction between
the employees. Human resource development needs a comprehensive strategy and improving public health in line
with academic achievement and labor productivity depend on employment policies (OECD Directorate, 2012).
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Employee Recruitment Strategy
The strategy of staff recruitment deals with the useful guidelines to attract and retain employees. This
strategy reflects a process in which employees and stakeholders during the implementation of a process experience
participation. The above strategy deals with strengthening and expanding the organization's programs and
employment services to be a source of employee motivation and as much as possible and increase organizational
efficiency (Rouble, 2010). A good and successful recruitment process includes the following steps: a) develop ing
policies according to which after proper employee recruitment, there is a system to retain them, b) identifying and
assessing current and future needs of human resources, c) identification of internal and external environments of the
organizations to increase organizational skill and knowledge, d) job analysis and assessing individual aspects of
each job and measuring each one's value, e) assessing the educational degrees of the staff in each jobs and
comparing it with job detail, skills, responsibilit ies and their required and defined skills, f) determin ing the ability of
the organization in paying the salary and benefits for a defined period, g) identifying the actual process of
recruitment and absorption of force in accordance with the laws of the same opportunities (Richardson, 2008 ).
Reward Strategy
The implementation of reward system is essential for the organization to achieve predetermined goals. The
existence of rewards strategy has a positive effect on the growing trend and improvement of employee performance
(Theen & Heng, 2012).
The successful implementation of reward strategies in the organization has a regular four-stage process.
The first stage is the assessment process. At this stage, the project team, after collecting the data, analyzes it.
Organizational changes are examined and the results of reward strategies in different periods go under investigation.
In the second stage, the organization deals with the design and implementation of changes in the system. In the third
stage, the reward system runs again, and in the fourth stage, the organization is re-evaluated and the cycle is
repeated. This process is depicted in Figure 1 (Heneman, 2007).
evaluation
evaluation
Performance
plan
Figure1: Four-step process successful implementation of reward strategies (Heneman, 2007).
Employee Performance Management Strategy
Employee performance management process refers to communication between employees and managers to
achieve better results including transparency of performance and results, correct diagnosis of mission and
organizational goals, realistic and appropriate develop, providing appropriate feedback on performance, constructive
performance appraisals, and planning for continuous staff development to improve the performance of employees in
order to optimize this process in the organization. This process must be done on a continuous basis and by
measuring and assessing it, one can understand how much it coincides with organizational goals (Weatherill, 2005).
Organizations are looking to promote their services, satisfy their employees, customers and other stakeholders .
Increasing customer satisfaction needs management and measurement of employee performance across their value
chain. To manage staff performance, one should develop a strategy to measure their performance, fo r which one
should already be prepared and predict. Determin ing standards that in addition to being measureable to promote the
purposeful activities of the organizations, are factors to improve employee performance are focused on (Shafudah,
2011). Key objectives of the implementation of the staff-performance management strategies are as follows: a)
ensuring that the employees do their tasks, b) employees are aware of the expectations of their organization in terms
of quality and quantity of tasks, c) receiving bonuses based on performance evaluation of employees, d) determin ing
opportunities needed for staff tasks development (Ying, 2004).
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Labor Relations Development Strategy
To improve working relat ionships, organizations analyze the correlations between employees and
organizations. The results of the above analysis are as follows: organizations tend to recruit employees with up to
date skills and knowledge to perform different tasks , staff having skills in exchange for higher salaries and more
benefits, paying and benefits to employees who have higher skills actually motivate people to increase skills. On the
other hand, giving importance to high-skilled workers is actually an investment in human resources (Todaro &
Smith, 2010).
Culture-Management Strategy
Culture-management strategies are designed in order to achieve long-term goals for one of two purposes: 1)
changing the culture in a unique manner, 2) strengthening the organization's culture that is values and "ways of
doing things." Strategies to strengthen the culture are based on cultural analysis and its role in achieving the
objectives in question. As long as the culture seems to be appropriate, effort must be made to maintain its desirable
characteristics.
Employee Creativi ty
This is defined as producing new ideas, including innovation and new solution to resolve the problem.
Creat ivity is one of the basic features of human intelligence. Creativ ity of people is not only discussed in time of the
problem, but as a cognitive dimension (generation of new ideas) is related with motivation and emotion with cultural
factors (Sefertzi, 2000).
The rise of the creativity is a combination of knowledge, thinking and doing specific work; in the following
four types of innovation that are the result of creative behaviors are mentioned. Creativ ity refers to response to
creative and innovative ideas of the managers to resolve the problems of organizat ion, expected creativity refers to
the production of creative ideas by motivated employees used to solve organizational problems, effective creat ivity
refers to new and innovative ideas of the employees and managers for solving the problems of the organization. In
fact, in this case, creativity refers to its being inherent and real creativity refers to generating ideas and providing
solutions to the problems inherent to the staff (Sirkwoo, 2015). Organizat ional creativ ity can be as a tool that in the
organization that can actually fill the gaps in the production, market ing and administrative processes within the
organization. In fact, it is a source for effectiveness in the organization and creating competitive advantage
(Parjanen, 2012).
Organizational Culture
Organizational culture is a set of tradit ions, values, beliefs, policies, and attitudes that exist in an
organization. In fact, organizational cu lture refers to knowledge, beliefs, morals, law, customs, and the abilit ies of an
organization. Organizational culture is defined in a few key words: innovation and risk taking, attention to detail,
orientation of managers about the results of the organization, decision-making within the organization, orientation of
activities of its members, the degree of activ ity of the organizat ion to maintain the status quo, the invasion and
unconditional competit ion of employees (Naicker, 2008). Organizational culture is a set of norms and expectations
shared among the staff. Organizational culture can change preferences of staff and set things that are the necessities
of the organization as norm (Guiso et al, 2013).
Organizational Climate
Organizational climate is a group of features that can be measured and exists in the workplace and can
directly or indirectly affect the behavior of members of the organizat ion. Moreover, these environmental impacts can
lead to employee motivation. Organizat ional climate has three important features. First, it varies among different
organizations. Second, it has durability, and third it can affect staff (Liu, 2010). Organizational climate is a
collection of roots of thoughts and attitudes of an organizat ion. Organizational climate as environmental factors
consciously controls organization. These factors may include aspects of organizational and personal characteristics
and behavior (Adenike , 2011).
Organizational Learning
Organizational learn ing increases training and organizational skills . In fact, learning organizat ions develop
learning, development, and performance. In learning organizations, knowledge production, creativity, and
innovation are the backbones. In learning organizations with a focus on quality and principles of learn ing,
production is studied as a collective identity (Matin & Alavi, 2007).
Knowledge Management (KM)
KM processes include knowledge acquisition, creation, modification, storage, transfer, share, and exp loit of
knowledge. Processes are function of knowledge and use of knowledge to improve organizational behavior, improve
organizational decision-making and improved organizational performance. Focus on KM among the staff creates
motivation to achieve the social processes (King, 2009).
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Innovation of Staff
The concept of innovation is different from the invention. In innovation, discovery does not necessarily
happen. With the help of innovation in sales and advancement in technology in sales as well as getting feedback
from customers, one can ensure the effectiveness of the innovation in the production (Kemp & Pearson, 2007).
Innovation in the organization is usually along response to market changes and business competition in
practice is, in fact, innovation is along with technology, processing, or marketing. Innovation in the workplace
maintains and increases the level of productivity and thus improves the performance of the organizat ion. The
purpose of innovation and its deployment in organization is to improve working conditions and employee
motivation. Innovation with this defin ition is implemented in companies and large and small and medium-sized
enterprises (Jacqmin, 2014).
BRIEF LITERATURE REVIEW Table 1: Literature
Researcher Year Research title Research
methodology
Results
Liu et al. 2007 The value of
HRM in
organizational
performance
Meta-analysis
techniques
HR management system improves
organizational performance and staff becomes a
major competit ive advantage.
Chen and
Hong
2009 Strategic human
resource
practices and
innovation
performance -
Mediating Role
of Knowledge
Management
Regression
Analysis
There is a positive correlations between
knowledge management, strategic HRM
practices, and innovation in performance of the
staff.
Tabassi and
Baker
2009 Education,
motivation, and
performance of
HRM in
construction
projects in
Mashhad, Iran
The literature
review and
questionnaire
Train ing improved the performance of
construction workers, and in fact, there is a
positive correlation between education and
HRM.
Tan et al. 2011 HRM practices
and
organizational
innovation:
intermediary ro le
of Knowledge
Management
Effectiveness
Analysis of
scientific
literature and
questionnaires
There is a direct link between HRM and
organizational innovation. And on the other
hand, there is an indirect correlation between
HRM and knowledge management and
innovation is an intermediary variables in the
correlation between HRM and innovation
Sakalas et al. 2012 HRM in a
creative
Organization
Analysis of
scientific texts
Strategies of recruitment, selection and
assessment of staff, reward strategy, strategy of
development of working relationships between
managers of complex HR management strategies
have significant influence on employee
creativity
karlsson 2013 The role of HRM
in innovation
processes
Inductive
study method
and
exploration,
distribution of
questionnaires
and interviews
There is a significant correlation between HR
management and innovations in the
organization. Evaluating the performance of
staff, directly and significantly affect innovation
of the staff. The correlation between human
resource managers and creative organizational
staff has a significant impact on innovation.
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Researcher Year Research title Research
methodology
Results
Bourma 2014 HRM and its
significance for
today's
organizations
The literature
review and
previous
studies
It deals with the direct and significant correlat ion
between employee performance management
strategy and the success of the organization and
that, this strategy and its assessment are not just
used punishment, encouragement, promotion or
demotion, but to establish a strong correlation
between employees and managers .
III. RESEARCH METHODOLOGY Research Objectives
The philosophy of this research is positivism. This research is conducted within the framework of
inductive-deductive reasoning. This means that theoretical research and literature library studies, articles and sites
are to collect informat ion in the form of inductive and deductive form is to confirm or reject hypotheses. In this
approach, by examin ing the hypothesis and research questions based on observations and results of questionnaires,
analysis, and understanding of the subject is drawn and the results are extracted.
The descriptive purpose of this study is to determine the impact of management strategies of HRM on
creativity and innovation of staff and research strategy is case study. The method used in this research is descriptive-
survey, because the impact of human resource management strategies on creativity and innovation of employees is
examined. Moreover, the study based on the mentioned purposes is applied, and according to the nature and method
of divination correlation. Library research and field-data collection methods will be included. The main objective of
the present study was to evaluate the effect on creativity and innovation management strategies to develop human
resources staff. The purpose of this study is to determine the impact of management strategies of HRM on creativity
and innovation of staff.
Research Population
Research community refers to a place where the results of the study can be generalized to or run on it. In
fact, it refers to a set of objects, persons, events, and generally things that have a common trait or characteristic. The
population of the study is the staff of Industry, Mine, and Trade of Alborz, located in Alborz p rovince. This
organization has 270 people working in Karaj and is affiliated cities. Industry, Mine and Trade, Industries
organization deals with Mines affairs, business affairs and business development, planning and investment,
development and resource management. The aim of the organization is to provide the best opportunities for optimal
services to clients.
Sampling and Sample Size
To achieve satisfactory results, sampling is the first step in determin ing targets. To understand these goals
better, we need to defined the selected population scheduled to be sampled. The study population consisted of 270
people. According to Morgan Krejcie sampling table, sample is 155 employees working in the tax office, industrial,
mining, commercial, and planning. Finally, 155 questionnaires were distributed and answers of the questionnaires
were co llected.
Conceptual Model
According to surveys conducted on research literature, current research conceptual model is presented as follows:
Organizational
Climate
Organizational
Learning
Knowledge
management
Organizational
Culture
Creativity
Innovation
Human Resource
Development Strategy
Culture management
strategy
Staff Recruitment
Strategy
Reward strategies
Working Relations
Development Strategy
Employmee
performance
management Strategy
Human resource
management
strategies
Figure 2. The conceptual model
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Data Collection Tool
A questionnaire is an efficient tool that is used to collect real time information where the researcher knows
what is sought exactly.
Secondary data including literature, h istory, and definition of words that are operational research are
collected from library and documentary method through the study of texts, articles, documents, books, reports, and
specialized publications and research conducted by means of taking notes and tables and figures contained in the
texts.
Primary data of the research, which is the opinions of respondents about research variables, are collected
through field research methods to collect information, a researcher-made questionnaire, in-depth interviews and
observation.
The questionnaire is developed with rating scale with 50 questions in four parts. The first part is
demographic with six questions and the second part is examining the importance of HRM strategies with 21
questions (items) has been proposed. In the third part, deals with studying factors affecting creativity with 13
questions, and the fourth part that has 10 questions, innovation is studied. After collecting the questionnaires, using
the software SPSS, multivariate linear regression analysis, and path analysis were evaluated.
Validity and Reliability of the Questionnaire
To ensure reliability, Cronbach's alpha reliab ility coefficient is used. Acceptable Cronbach's alpha
coefficient for research is 0.7. As shown in Table 2, Cronbach's alpha coefficient was 0.948 for research that is
higher than the accepted standard and confirms the reliability of the questionnaire. To check the valid ity of the
questionnaire the comment re lated to the topic from the experts and professors have been used.
Table 2: Cronbach's alpha reliability coefficient
IV. FINDINGS Forty-four point five percent of the respondents were male and 55.5% of them are women, of whom 10.3%
was less than 25 years, 16.1% between 25 and 30 years, 32.9% between 31 and 35 years, 30.3% between 36 and 40
years and 10.3% more than 40 years. Of those people have 8.4% less than 2 years, 14.8% between 2 and 5 years,
32.9% between 6 and 10 years, 30.3% between 11 and 15 years, 13.3% more than 15 years of experience and work
experience. In Table 4, the amount of familiarity with the topic "the impact of HRM strategies on creativity and
innovation of employees" is expressed in three columns: frequency, frequency percentage, and cu mulative
percentage.
Table 3: Table of frequency of familiarity with the subject of research
Familiarity with the
subject of research
Abundance Frequency The cumulative
percentage
very litt le
Little
Average
Much
too much
Total
In the present study, using multiple regression, the linear correlation between independent variables and the
dependent variable of the study were checked. First, we deal with the output of the impact of HRM strategies as the
independent variable on creativity as the dependent variable in Tables 4, 5, 6, 7.
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Table 4: other variables
Table 4 as the first outlet shows that to predict the changes of dependent variable, creativity, based on 6
independent variables, a regression model and Enter method are used.
Table 5: Summary Model
Table 5 shows the summary of the model. The correlat ion coefficient (R) between variables is 0.738, which
shows a strong correlation between independent variables and the dependent variable (creativ ity). However, the
value of adjusted R-Square, which is equal to 0.527, indicates that 52.7 percent of the total changes of creativity
among staff is related to the six independent variable stated in this research. In other words, all independent
variables predict (estimate) half of the variance of creativity. Due to the significance of F (29.543) at the error level
of less than 0.01, it can be concluded that research regression model consisting of six independent variables and one
dependent variable (creativ ity) is a good model and the set of independent variables is capable of determining
creativity.
Table 6: ANOVA
Table 6, according to the standardized regression coefficients beta and a significant error level (sig = 0.05),
indicates which of the independent variables has a direct and significant impact on the dependent variable
(creativity) and which one does not. Beta coefficient indicates that the strategy of developing working relat ionships
with 0.293 has the greatest impact on creativity and the correlation is direct and significant. About the strategy of
staffing and employee performance management due to error- level h igher than 0.05, there is no significant effect on
creativity.
Table 7: table of coefficients
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In the following, we deal with the output of the effect of HRM strategies as the independent variable on the
dependent variable innovation in Tables 8, 9, 10, and 11.
Table 8: other variables
Table 8, as the first outlet, shows that to predict the changes of the dependent variable, innovation, based on
6 independent variables, a regression model and Enter methods are used.
Table 9: Summary Model
Table 9 shows the summary of the model. The correlat ion coefficient (R) between variables is 0.717, which
shows a relatively strong correlation between independent variables and the dependent variable (innovation).
However, the value of adjusted R-Square, which is equal to 0.494, indicates that 49.9 percent of the total changes of
innovation among staff is related to the six independent variable stated in this research. In other words, all
independent variables predict (estimate) half of the variance of innovation. Due to the significance of F (26.098) at
the error level of less than 0.01, it can be concluded that research regression model consisting of six independent
variables and one dependent variable (innovation) is a good model and the set of independent variables is capable of
determining creativ ity.
Table 10: ANOVA
Table 11, according to the standardized regression coefficients beta and a significant error level (sig =
0.05), indicates which of the independent variables has a direct and significant impact on the dependent variable
(creativity) and which one does not. Beta coefficient indicates that the human resource development strategy with
0.350 has the greatest impact on innovation and this correlation is direct and significant. About the strategy of
staffing and culture management due to error level higher than 0.05, (sig = 0.05), there is no significant impact on
innovation.
Table 11: Table coefficients
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Path Analysis In this study, the aim is to investigate the effect of HRM strategies on creativity and innovation. According
to the conceptual model, there are six independent variables and two dependent variables. In the following,
according to the linear multip le regression coefficients and with the help of coefficient table and beta, path analysis
and charting is done. The first step is to investigate the effect of independent variables (the six dimensions of HRM
strategies) on the dependent variable (creativity) (F2).
Table 12: Table coefficients
To interpret the results of the following table, standardized regression coefficients is used, (beta).
According to the table, working relations development strategy (M5) with a beta of 0.293 has the greatest impact on
creativity. Based on this result, with an increase of one standard deviation in working relations development
strategy, creativity increases to 0.293 standard deviation. Conversely, a decrease in the standard deviation of
working relations development strategy will decrease creativity as 0.293 standard deviation. In the following, it is
added that the variables whose level of error is higher than 0.05 (sig = 0.05) have no statistically significant effect on
creativity. Based on standardized regression coefficients, graphs of the factors affecting creativity is formulated as
follows:
Figure 3: Impact of HRM strategies on creativity
Second step: Studying the effect of independent variables (all the six cases of HRM strategies) on the
dependent variable of innovation (F1)
Table 13: Table coefficients
According to the table, ranging human resource development strategy (M1) with a beta of 0.350 has the
greatest impact on innovation variable. Based on this res ult, with an increase of one standard deviation in the
variable human resource development strategy, the innovation will increase at a rate of 0.350 standard deviations.
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Conversely, a reduction in the standard deviation of variable human resource development strategy will lead to
0.350 standard deviation decrease in innovation. Based on standardized regression coefficients, graph of the factors
influencing the innovation is formulated as follows:
Figure 4: The impact of HRM strategies on innovation
Third stage: Studying the impact of creativ ity variable (F2) on the dependent variable of innovation (F1)
Table 14: Table coefficients
With an increase of one standard deviation in the variable creativity, the innovation will increase at a rate of
0.631 standard deviations. Conversely, with a reduction in the variable standard deviation of creativity, innovation
will reduce by 0.631 standard deviation. Based on standardized regression coefficients, graph of creativity on
innovation is formulated as follows:
Figure 5: The impact of creativi ty on innovation
Step Four: Since strategy of development of working relationships (M5) has the greatest impact on
creativity, strategy of development of working relat ionships is considered as the dependent variable and the
remain ing variables as independent variables.
Table 15: Table coefficients
According to the table, all independent variables , except staff recruitment strategy, had a significant effect
development of working relationships. In the meantime, Human Resource Development Strategy (M1) with a
coefficient of 0.308 is the most effective. Based on standardized regression coefficients, graph of the factors
affecting working relations development strategy has been formulated as follows:
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Figure 6: The impact of employee relations management strategies on HR development strategy
Step Five: After working relat ions development strategy, reward strategy (M3) has the most effect on
creativity. Thus, at this point reward strategy is as the dependent variable and the other variables are considered as
independent variables.
Table 16: Table coefficients
According to the table of coefficients, human resource development strategy (M1), employee-performance
management strategy (M4) and culture management strategy (M6) have no significant effect on reward strategy.
Based on standardized regression coefficients, graph of the factors affecting reward strategy has been formulated as
follows:
Figure 7: Impact of HRM strategies on reward strategy
Step Six: in studying the impact of HRM strategy on innovation, human resource development strategies
had the greatest impact on innovation (M1). In the following, human resource development strategy (M1) is as the
dependent variable and the remaining variables are considered as independent variables.
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Table 17: Table coefficients
According to the table, coefficients of working relationships development strategies (M5) and culture
management strategies (M6) have a significant impact on HR development strategies (M1). Based on standardized
regression coefficients, the graphs of the factors affecting human resource development strategy has been formulated
as follows:
Figure 8: The impact of HRM strategies on HR development strategy
Step Seven: In examining the impact of HR management strategies on innovation, after HR development
strategies that had the greatest impact, the strategy of development of working relat ionships (M5) has the greatest
impact. In the following, the strategy of development of working relationships (M5) is as the dependent variable and
the remaining variables are as independent variables.
Table 18: Table coefficients
According to the table of coefficients , staff recruitment strategy (M2) had no significant effect on working
relations strategy (M5). Human Resource Development Strategy (M1) with a factor of 0.308 has the greatest impact
on the strategy of development of working relat ionships (M5). Based on standardized regression coefficients, the
graphs of factors affecting labor relations development strategy has been formulated as follows:
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Figure 9: The impact of HRM strategies on the strategy of development of working relationships
The results of the beta coefficient study show that the dependent variable creativity (F2) is first affected by
independent variable, developing working relationships (M5) the most and the independent variable reward strategy
(M3) is the second.
About the dependent variable innovation (F1) first HR development strategy independent variable (M1)
and then working relations development strategy (M5) have the most effect. After calculating the direct and indirect
impact of the variab les, the following tables are obtained.
Table 19: The direct-indirect and total effect of independent variables on the dependent variable creativi ty
Variables Type of impact
Direct Total
Human Resource
Development Strategy
Staff Recru itment
Strategy
- -
Reward strategies
Employmee performance
management Strategy
- -
Working Relat ions
Development Strategy
Culture management
strategy
Table 20: The direct-indirect and total effect of independent variables on the dependent variable innovation
Variables Type of impact
Direct Total
Human Resource
Development Strategy
Staff Recru itment
Strategy
- -
Reward strategies
Employmee performance
management Strategy
Working Relat ions
Development Strategy
Culture management
strategy
- -
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Empirical model of the impact of HRM strategies on creativity and innovation is given in the figure below
Figure 10: Empirical model of the impact of HRM strategies on creativi ty and innovation
V. CONCLUSION The hypotheses of this study were developed to evaluate the effect of HRM strategies have been developed
on the creativity and innovation of employees in the organization. Desired data is collected through a questionnaire
distributed among 155 members of the sample. First, by studying the frequency tables, it is tried to analyze data
relative response spectrum. Then to test the reliability and validity of the questionnaire, Cronbach test and the
opinions of experts have been used. As it became clear from the theory of this test and expert opin ion, the
questionnaire is valid and reliable, after ensuring the above two categories , using linear mult ivariate regression, path
analysis, and SPSS software, the impact of HRM strategies once separately on the dependent variable creativity and
once for on the dependent variable innovation were studied. The results show that HRM strategies significantly
affect increase of employee creat ivity and innovation. In continuation, from among HRM strategies in accordance
with the standardized regression coefficients, the beta of strategy of development of working relat ionships 0.293 has
the greatest impact on creativity.
Based on this result, with an increase of one standard deviation in variable of working relat ions
development strategy, creativity increases as 0.293 standard deviation. Conversely, a decrease in the standard
deviation of the variable working relations development strategy, 0.293 standard deviation decrease in variable
creativity will be observed.
Then by studying human resource management strategy on innovation, according to table, human resource
management strategy with a beta of 0.350 has the greatest impact variable. Based on this result, with an increase of
one standard deviation in the variable human resource development strategy, the innovation will increase at a rate of
0.350 standard deviations. Conversely, a reduction in the standard deviation of variable human resource
development strategy will lead to 0.350 standard deviation decrease in innovation.
Tan et al. (2011) in research entitled "HRM practices and organizational innovation: Studying the
mediating role of effect iveness of knowledge management" produced results, the correlation between each of them
with the results of this study are expressed as follows (Tan & Nasurdin, 2011):
Tan et al. (2011), in their study reached the conclusion that there is a direct link between HRM and
organizational innovation. In the present study, we also concluded that HR management strategy has a significant
impact on creativity and innovation staff.
Tan et al. (2011), in their study suggest that, on the other hand, there is an indirect correlat ion between
HRM and innovation and knowledge management is one mediator variable in the correlation between HRM and
innovation. In our study, the correlation between HRM and innovation is direct and significant, but the somehow the
shared point is the existence of KM, from the sub-indices of the studied indices of creativity, with the highest beta
coefficient of 0.631. On the other hand, in our study after being affected, we studied the effect of creativity on
innovation and reached the significant correlation between creativity and innovation with beta coefficient of 0.631.
In general, it can be said in both studies, knowledge management has a significant effect on innovation.
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The studied organization, in its current state requires the use of modern management systems: the
management that is based on knowledge, customer-orientated, and gives importance to the communication and
interaction between heads of departments, experts and staff. The importance to the feedback received from clients
for solving problems and taking corrective measures is necessary. Knowledge management should seek to develop
the skills of employees and managers in order to satisfy their relat ionship with the client. The knowledge
management system is required to use this system because managers are strongly catalyst in the implementation and
daily operations of the organization.
Tan et al. (2011), in their study suggest that teaching and learning directly and indirectly affect innovation.
In this research, organizational learning is studied as the index of the beta coefficient of 0.496 so has a significant
impact on the overall index on innovation and creativity, including their learning. In general, we can say that there is
a significant impact on innovation in both learning studied.
Learn ing and training in modern management style lead to increased risk-taking of employees to update
their skills and knowledge, identify opportunities, and the views of other employees with employee engagement
achieved not merely to complete training records personnel and records employees' work that was done in
accordance with past years of the staff that had any consent and the use of them.
Teaching and learning are one of the indices of creativity and innovation indicators . In fact, learning leads to the
development of innovative ideas, and increase of the power of replacement of employees. In the current situation,
the organization requires the increasing capacity of social organization based on empowerment of individual, group
and organizational.
In their study, Tan et al. (2011), there is a negative correlation between employment and the three
dimensions of organizational innovation (product innovation, process innovation, business innovation). They also
state that HRM practices such as the reward system, recru itment system at the time of starting the job does not have
much impact on organizational innovation process. Innovation in organization is achieved over time by learning and
teaching staff, improving their organizational performance and business success.
From among the strategies of HRM as an independent variable, strategy of recruitment and culture management
strategy due to having an error level higher than 0.05 (sig = 0.05) have significant statistical effect on innovation as
the dependent variable.
Surprisingly, Tan et al. (2011) in their study concluded that, recruitment and rewards strategies, from the
indices studied in HRM, have negative impact on trip le innovation (product innovation, process innovation, business
innovation). It is mostly due to, strict control of corporate managers on employee performance, to minimize
overhead costs and being over obsessed with the financial and economic aspects. Solution proposed by these
researchers is adequate and proper training of organizational managers about the importance of the human aspects of
the organization and taking advantage of its results and adequate training to staff morale and motivation they have
announced.
It is interesting to be added that, in the present study, the strategy of recruiting employees such as the
results of the previous research has no significant correlat ion with the innovation strategy. Thus, it seems that to
solve the problem of the organization studied their solutions can be used. Using the performance management of the
staff and evaluation of their performance, reward can be used to staff who always provide excellent service to
clients. Using the experience and expert ise of the old staff, especially in the mining, Commerce and Industry sector
is very effective to further the organizational goals. Princip led applying of recruitment strategies to change the
contract status of the workers who are skilled and educated workers and connected with external research centers to
improve the organization and increase its efficiency power will be effective. From among the strategies of HRM as
an independent variable, recru itment and employee-performance management strategies due to error level h igher
than 0.05 (sig = 0.05), have no statistically significant impact on creativ ity variab le as an independent variable.
Sakalas et al (2012), in a study entitled "HRM in a creative organization" achieved the following results (Sakalas et
al, 2012):
Sakalas et al (2012) in their study suggest that strategies for recruitment, selection and evaluation, reward
strategy, working- relationships development strategy between managers , of set of strategies of HR management
has a significant influence on employee creat ivity. In fact, the factors mentioned are necessary to create a creative
agency. In the present study, reward strategy with beta coefficient of 0.187 has a direct and significant impact on
creativity in organizations . Strategy of development of working relationships with a number of beta coefficient of
0.171 has a direct and significant impact on employee creativity, but the recruitment strategy of the staff has no
significant impact on the creativ ity of the studied organization.
The results of the study by Sakalas et al. (2012) see creativity as a process to develop organizational
functions. The results of the present study, according to the results of collected questionnaires and assessment of
informat ion obtained from the staff, creativ ity is necessary for the organization.
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Sakalas et al. (2012), in their study, refer to the direct correlation between the organization management
style and stimulating creativity, knowledge creation, and its release and the quality of management as something
stimulat ing and constructive to convert creative ideas into innovation. In the present study, the style of management
is not mentioned, but while studying the correlation between HRM indicators, we achieved a great result. Human
resource development strategy, with a beta coefficient of 0.308 has the greatest impact on working relat ions
development strategy. This means that, the development of HR with measures such as improving mental health of
the staff, encouraging all employees to learn and teach and labor productivity affect the development of working
relations between employees and managers and thus improve the conditions and increase the efficiency.
Burma (2014) in a study titled "HRM and its significance for today's organizations" knows HRM as the
most efficient way to improve the situation of employees and thus the success of the organization (Burma, 2014). In
the following, we describe the results of the research.
Burma (2014) in his study refer to the direct and significant correlation between employee performance
management strategy and success, and that, this strategy should not just be used for assessment, punishment,
encourage, promotion, and the organizat ional demotion, but also to establish a strong correlation between employees
and managers.
In line with this, in the present study time, when the correlation between management strategies of HR and
development of working relations strategy was studied, it was concluded that employee performance management
strategy with beta coefficient of 0.199 has a significant direct impact on and the development strategy of working
relationships. In better words, strategy of employee performance management, enterprise performance transparency,
correct diagnosis of organizational goals, development of realistic standards, providing appropriate feedback for
constructive performance, planning of continuous development of staff that has the improvement of the performance
have a direct and significant correlat ion with the development of strategy of employees and managers working
relationship.
Burma (2014), in his research, concluded that, with the help of employee performance management
strategies, on can find the reasons of the cause of repeated absenteeism of employees, their reduced operational
efficiency, differentiation and separation of staff and managers. In fact, they see these factors as impeding successful
organization.
In the following, we deal with the direct correlation between HR management strategies and business
strategies, and that strengthening the skills, behaviors, and attitudes with the help of staff performance management
strategy reduce costs and increase product differentiation and have a positive impact on business strategy and is
considered as a competitive advantage.
In the present study, the researcher was looking to increase the efficiency, success and achievement of
organizational goals appropriately, create a strong and effective communicat ion of employees and managers to
create competitive advantage and generate value added, and to achieve this, the issue of creativity and innovation of
employees (the most important and most valuable organizat ional asset) should be dealt with.
Karlsson (2013) in a study entitled "The role of HRM in the innovation process" has achieved the following
results (Karlsson, 2013):
Karlsson (2013) in his study reached the conclusion that there is a significant correlation between HR
management and innovations in the organization. The results of the above study about multivariate regression
coefficients and beta coefficient show this . In fact, it can be said that creating a flexible and up to date look for
system staff attitude, coordination, and integration of HRM activit ies with a clear strategy of the organization HRM
strategies can help organizations to produce new ideas, provide solutions and good judgment, practical ideas and
innovation among employees. In fact, using of HR strategies, innovation, if nurtured, will be followed by
innovation.
Karlsson (2013), in his study, reached the conclusion that staff performance evaluation has a direct and
significant impact on staff innovation. This study also suggests this issue. Employee performance-management
strategy with respect to the beta coefficient of 0.171 has a direct and significant impact on employee innovation.
Karlsson (2013) in h is study has reached the conclusion that the proper correlation between human resource
managers and creative staff of the organization has a significant impact on innovation. The same goes in the present
study where development of working relationship with beta coefficient of 0.255 has a significant positive impact on
innovation.
The studied organization requires the establishment of a management system in which interactions replace
conflicts, removal of duplication and parallel activit ies by means of the incorporation of s ystems and technology,
and correct and clear definition of o rganizat ional goals.
In the current situation of the organization instead of being realistic, being idealistic can never return
perfection of objectives and increase operational efficiency. Giv ing importance to update knowledge and expertise
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of the staff by the managers will strengthen the spirit of learn ing in them and improve organizat ional culture and
organizational objectives. The importance to cooperation and strengthening teamwork spirit rather than individual
work and attention to the entire executive team by managers is the mot ivational factor among employees.
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