Section Five(imitators of innovators and focused operations), and defenders
(low-cost producers).^107
As noted earlier in the discussion of individual practices,
results of the tests of the universalistic approach revealed that
results-oriented appraisals, profit sharing, and employment
security all had a positive impact on ROA while profit sharing
also had a positive impact on ROE. In order to test the
contingency approach, the researchers examined the
incremental impact on performance of the strategy interactions
with each of the human resource practices. Results for the
contingency approach indicated that for banks in the prospector
strategic category, the use of results-oriented appraisals
produced higher ROA and ROE. In contrast, when appraisals
were less results oriented, the banks in the defender category
had higher ROA and ROE. Interestingly, defender banks that
allowed loan officers to participate in decision making had
better ROA and ROE. Conversely, prospector banks performed
better with less participative decision making. In addition, more
internal career opportunities produced positive impacts on ROA
and ROE in prospector banks while the reverse held for
defender banks. As noted in the following excerpt, the study
found strong support for the universalistic approach and some
support for the contingency approach.^108