Jung Yuhee, Takeuchi Norihiko, Takeuchi Tomokazu
JOURNAL OF BUSINESS MANAGEMENT, 27(第27号) 41-54, 2011
The importance of employee development is increasing for establishing potential long-term competitiveness for firms. However, little is known about how a firm's investment in employee development, especially as perceived by employees, leads to an increase in employee work outcomes. We, therefore, highlight the concept of perceived investment in employee development (PIED), which can be defined as employees' belief that their organizations care about their well-being, career development, and personal growth by equipping them with new knowledge and skills. Specifically, drawing on social exchange theory and fit theory perspectives, we propose to examine the mediating role of person and environment (P-E) fit, such as person and organization (P-O) fit and person and job (P-J) fit, in how employees' perceptions of investment in employee development by organization leads to increased work outcomes, including job satisfaction, job involvement, and intent to stay. Additionally, we incorporated into the mediation process the moderating effects of career planning on the relationships between P-O and work outcomes and between P-J fit and work outcomes, as guided by a goal-setting theory. We tested the hypothesized mediational and moderational relationships using a sample of 144 Korean employees working for privately owned firms in Korea. Our empirical analyses generally supported the mediating effects of both P-O and P-J fit and the moderating effects of career planning in the process that relates PIED to improved employees' work outcomes, except for the mediating effects of P-E fit (i.e., P-O fit, P-J fit) on the relationship between PIED and employees' turnover intentions. We use the findings to discuss the role of P-E fit and individual career planning in the effectiveness of employee development practices that organizations offer. We also discuss the study's limitations and the direction of future studies.