M55 - Personnel Economics: Labor Contracting DevicesReturn

Contemporary Human Resource Management (HRM) emphasizes individualized approaches to employee learning and development (ILD), such as coaching and mentoring, and assigns key roles to line managers in HR processes. While both elements are recognized separately for their benefits, the joint impact of ILD and line managers' involvement (LMI) on overall company performance (CP), including productivity, innovation, and environmental effects, has not been extensively studied at the organizational level. This study investigates this relationship using data from a large-scale CRANET survey of 4145 medium and large companies across 38 countries. Utilizing Covariance-Based Structural Equation Modelling, the research tested a model examining the direct effect of ILD on CP and the mediating effect of LMI. The findings confirm a positive and significant direct relationship between individualized learning and development and company performance. The study also found that line managers' involvement positively mediates this relationship, which strengthens the effect. However, the analysis revealed that the direct effect of ILD on CP is substantially larger than the indirect effect mediated by LMI. These results provide clear direction for practitioners. Practitioners should incorporate individualized development methods, such as coaching and mentoring, while strategically leveraging managerial involvement to optimize business outcomes. Companies aiming to boost productivity, innovation, and environmental performance should include the implementation of ILD approaches. Simultaneously, they should support line managers in their HR roles as their involvement, although not the main driver, positively contributes to the overall impact. Implications for Central European audience: For Central European audiences, the sources reveal a significantly lower use of individualized learning and development compared to global averages. The study highlights a strategic opportunity for companies in Central Europe to boost competitiveness and innovation through coaching and mentoring. Theoretically, the study confirms a direct link between ILD and organizational performance, followed by further practical implications driven by individualization in LD and the usage of i-deals for increased engagement. Personalized development serves as the primary driver of improved performance.