The Role of the Human Resource Management System on Organizational Entrepreneurship

As environment becomes more complex and dynamic, organizations must become more entrepreneurial in order to identify new opportunities for superior performance. Organizational entrepreneurship involves learning, driven by collaboration, creativity and individual commitment. Also, it is widely held that HRM practices have important role in organization success. Therefore, there is a pressing need for empirical research that addresses the contributions that HRM makes to an organization's ability to embarking entrepreneurial activities. Present paper provides the results of a descriptive survey and tries to show the roles of the HRM system in promoting organizational entrepreneurial activities. In this regard, the characteristics of the main HRM sub-systems and their effects on organizational entrepreneurship have been investigated. These sub-systems include performance appraisal system, reward system, and pay system. This survey has been done within the headquarters of the Iranian public service organizations which could gain income from their main services. Results show the significant impacts of the performance appraisal and pay systems on organizational entrepreneurship, but the significant impact of reward system on organizational entrepreneurship was rejected. At the end, according to the present research findins as well as literature review, some suggestions have been provided for improving entrepreneurial posture of the HRM systems in studied organizations.