In search of the changing role of the corporate human resource function in the international firm

There has been considerable research on the issues of board-level representation by personnel/HR directors and senior HR managers' involvement in strategic decision making. Since the early 1990s there has been a growing interest in international HRM, reflecting the growing recognition that the effective management of human resources internationally is a major determinant of success or failure in international business. There is also evidence that HR constraints often limit the effective implementation of international business strategies. More recently, it has been argued that the more rapid pace of internationalization and globalization leads to a more strategic role for HRM as well as changes in the content of HRM. Yet, while there have been some attempts to integrate international corporate strategy and human resource strategy, surprisingly, the role of the corporate human resources function has been neglected, particularly in the context of the international firm. This article seeks to redress the balance. The question addressed is: what is the role of the corporate HR function in the international firm? To answer these questions empirical research was conducted in thirty UK international firms. We found an emerging agenda for corporate HR in international firms which focuses on senior management development, succession planning and developing a cadre of international managers. We conceptualize this as a strategic concern with developing the core management competences of the organization, and argue that it can be usefully analysed from the perspective of the learning organization.     

Lost in translation: exploring the link between HRM and performance in healthcare

Using data collected in 2004 from 132 Victorian (Australia) public healthcare providers, comprising metropolitan and regional hospital networks, rural hospitals and community health centres, we investigated the perceptions of HRM from the experiences of chief executive officers, HR directors and other senior managers. We found some evidence that managers in healthcare organisations reported different perceptions of strategic HRM and a limited focus on collection and linking of HR performance data with organisational performance management processes. Using multiple moderator regression and multivariate analysis of variance, significant differences were found in perceptions of strategic HRM and HR priorities between chief executive officers, HR directors and other senior managers in the large organisations. This suggested that the strategic human management paradigm is ‘lost in translation’, particularly in large organisations, and consequently opportunities to understand and develop the link between people management practices and improved organisational outcomes may be missed. There is some support for the relationship between strategic HRM and improved organisational outcomes. Implications of these findings are drawn for managerial practice.     

HR outsourcing: the impact on HR role,competency development and relationships

The business benefits of an outsourcing strategy are well documented, and HR is encouraged to outsource in order to add value. Yet little is known about how HR outsourcing affects the HR role, competencies and relationships with senior management. These issues are examined through 27 semi‐structured interviews with senior HR professionals, comparing HR departments engaged in HR outsourcing with those maintaining full in‐house HR provision. The findings indicate that HR outsourcing stymies HR role transformation. HR outsourcers experienced limited skill development and an increased focus on cost reduction at the expense of their strategic position. In contrast, non‐HR outsourcers actively engaged in other parts of the business, developing competencies that garnered trust and support of senior managers. The benefits of an external HR community appear limited. The study suggests that an ‘internal’ HR community is better placed to enhance HR departmental roles.     

Are top human resource specialists 'strategic partners'? Self-perceptions of a corporate elite

Despite the existence of various large-scale surveys of human resource specialists, there has been little research focusing specifically on the top cohort of HR practitioners. In addition, the surveys offer little insight into the ambiguous, but important questions associated with the strategic management process in large, complex corporations. This article reports a study of the qualifications, work histories, role orientations and strategic contributions of the most senior HR specialists in the New Zealand business sector. These elite practitioners typically demonstrate a 'dual background' in specialist HR activities and line management, and strongly subscribe to Legge's notion of 'conformist innovation'. As in the United Kingdom, they tend to focus primarily on the management of managers and, to a lesser extent, the management of industrial relations. Their work is increasingly integrated with other spheres of the business such as quality management. Whether their contribution is regarded as 'strategic' depends on the model of strategic management that informs the question. This paper argues that the survey-based studies have inappropriately adopted 'outside-in' models of strategic management which privilege marketing notions and assume that 'formulation' is more strategic than 'implementation'. The work of these senior HR specialists is more fairly assessed under a conception of the strategic problem which balances external and internal concerns. Given the present realignment of strategy theory, the challenge facing these HR specialists is that of developing frameworks for corporate planning and performance analysis which attribute a more central role to the critical elements of HRM.     

The HR function in purchaser–provider relationships: insights from the UK voluntary sector

This article explores how inter-organisational relations with the state impact on the status of human resource (HR) professionals in voluntary organisations. It reveals a constrained and under-resourced HR function in voluntary organisations, implementing few strategic interventions. Explanations centre on the dynamics of power relations, institutional forces, the exercise of strategic choice and management of risk between purchasers and providers and their interaction with competencies among individual actors, attitudes of senior managers and the focus by voluntary sector managers on organisational mission. It warns that these external and internal factors will produce similar outcomes in sectors and economies characterised by arm's-length contractual relations.     

The strategic value of e-HRM: results from an exploratory study in a governmental organization

This paper presents results from an exploratory study in a governmental organization on the strategic value of electronic human resource management (e-HRM). By applying the organizational capabilities approach, and by means of mixed research methods, data were collected on two generally acclaimed strategic advantages of e-HRM: changing the role of the human resource (HR) function towards becoming a business partner; and increasing the time available for strategic HR issues. The findings show that these strategic advantages are not convincingly realized. While HR professionals perceived role changes, line managers and non-managerial employees in general did not. The frequency of e-HRM practise was low, although it was satisfactorily used as intended. Interviewees stated that strategic advantages might arise if certain conditions are met. E-HRM does however provide some unintended benefits. The findings suggest that e-HRM alone is not sufficient to enable the HR function to create dynamic and operational capabilities. Suggestions for further research are provided.     

To be strategic in the new public sector,HR must remember its operational activities

This article examines the level of operational and strategic involvement by human resource departments, the influence of HR departments, and the level of strategic integration as predictors of human resource management per‐formance. Surveys from 146 senior line managers and HR executives in com‐mercialized and noncommercialized public‐sector agencies in Australia were the basis of organizational‐ and individual‐level analyses. Results indicate positive relationships between the degree to which operational HR activities are transferred to line managers, HR influence, strategic integration, and the performance of the HRM function. Interestingly, no relationship was found between the level of strategic involvement by HR departments and the per‐ceived performance of the function. Analysis of the individual‐level data sup‐ports the multiple‐constituency approach to HRM, with differences in the evaluation of HRM by respondents from different job functions. The study highlights challenges faced by HR practitioners needing to be operational, to be valued strategically. © 2007 Wiley Periodicals, Inc.     

A mediated model of the effects of human resource management policies and practices on the intention to promote women: An investigation of the theory of planned behaviour

This study investigates the role of supportive human resource management policies and practices in senior HR managers’ intention to promote women to senior management positions. Based on the theory of planned behaviour, we argue a model in which supportive HR policies and practices affect managers’ attitudes towards the promotion of women to senior positions and their perception of organisational norms and control over the decision. We employ partial least squares based structural equation modelling to investigate data from a sample of 183 firms in Bangladesh. Our results support the utility of the theory of planned behaviour in understanding the positive effects of HR practices on the intent of senior managers to promote women. Our findings suggest that the role of HR policies and practices is not only to eliminate opportunity for discrimination but also to encourage the development of deeper attitudinal and normative acceptance of women’s role in senior management.     

A chameleon function? HRM in the ‘90s

This article examines the changing role of the HR function in large corporations in the 1990s. It draws on data collected from a multi-sector case study research project – the Leading Edge Forum Consortium. Activities are analysed along three dimensions: access to strategic decision making, shift of responsibilities to the line, and the function's perceived contribution to business performance. It concludes that devolution to the line remains problematic, and that access to strategic decision making is still contingent on the personal influencing skills of senior HR managers or directors. Nevertheless the recognition of the strategic importance of HRM as a contributor to business performance has risen.     

HR Professional Role Tensions: Perceptions and Responses of the Top Management Team

The aims of the research are to explore evidence of professional human resource management (HRM) role tensions, the factors that affect HRM role tension, and to consider the impact on management perceptions when role tensions exist. Using a qualitative approach, 25 interviews were conducted in Australia with senior HRM personnel, top management team (TMT) executives, and a management consultant. Findings reveal that the failure of the HRM profession to attract people with a business focus increases HRM role tensions. Respondents report that tensions were reduced when aspects of the HRM role were devolved or outsourced, there was an acceptance of a changed psychological contract, and clearer attempts were made to communicate an agreed‐upon strategic focus for HRM. HRM role bias led to a reduced willingness among TMT members to respect, and communicate with, HRM professionals. The implications of the negative outcomes of HR role tensions are discussed with reference to the power of the HRM function. © 2013 Wiley Periodicals, Inc.     

Fostering strategic agility: How individual executives and human resource practices contribute

Strategic agility, as an observable organization performance outcome, results from the behaviors and skills of the organization's managers in taking and implementing strategic actions. So, the key to strategic agility is not just analytical strategy from superior minds or thoughtful and effective organizational design but the set of management practices, behaviors, skills, values and beliefs that animate the senior management of an organization in making and implementing strategic commitments. In particular, earlier research suggests that three vectors of forces enable strategic agility: strategic sensitivity, resource fluidity and collective commitment. Taking these as a basis, we identify specific individual behaviors, and analyze and review how skills, and practices driving these behaviors, and their supporting HR practices affect the strength of each vector, and of the forces that provide energy in fostering strategic agility. This provides a profile of skills and capabilities individuals need in order to best contribute to the strategic agility of their organization and of HR practices to put in place.     

Human resource function strategic role and trade unions: exploring their impact on human resource management practices in Uruguayan firms

Organizations worldwide are confronted with different contextual constraints. Jackson and Schuler [1995, ‘Understanding Human Resource Management in the Context of Organizations and their Environments,' Annual Review of Psychology, 46, 237–264], in their classical review, highlight the importance of the impact of the internal and external organizational context on human resource management (HRM) practices. This paper uses data collected through a survey of firms located in Uruguay, in a context where HR function and trade unions have gone through significant changes, to determine their impact on the adoption of different HRM practices. The authors find that organizations with an HR function strategically involved and with higher degree of union presence have more person-centred HRM practices, while performance-centred HRM practices were positively influenced by HR function strategic role. However, the findings do not support the moderating role of trade union presence on the relationship between the HR function strategic role and HRM practices.     

The changing role of the corporate HR function in global organizations of the twenty-first century

The primary focus of this paper is to examine how the increased demand for global corporate strategic consistency and flexibility redefines the roles of the corporate human resource function and its venues of influence. In particular, we analyse possible causal linkages among strategic international HR management, strategic leadership of corporate top management team (i.e. TMT), and alternative global assignment options. As globalization significantly changes not only the operating boundaries but also the symbolic context of the global organization, we argue that corporate HR function can play more influential roles in global organizations than it has in the past.     

Perceptions of the value of the HR function

This article explores the added value of the HR function as it is perceived by three groups of managers: top managers, HR managers and line managers. Despite the fact that literature about strategic HRM focuses almost exclusively on the value of the HR function as a strategic partner, it was assumed that its perceived value for the business would not be restricted to the area of strategy formulation and implementation. Several 'result domains' can be distinguished in which the HR function can deliver value to the business. Based on our review of the literature, the degree of strategic involvement of the function was used as a second perspective to investigate its perceived added value. To examine our propositions, a qualitative study was carried out in which 97 HR managers, 38 top managers and 178 line managers participated. The results confirm our thesis that the perceived value of the HR function contains more than just the fulfilment of its role as a strategic partner. Based on our results, an integrated model for the perceived value of the function has been developed.     

Strategic HR system differentiation between jobs: The effects on firm performance and employee outcomes

The purpose of this research was to understand whether firms apply different human resource management systems to different occupations within the same organization (HR differentiation) and how the extent to which they do so may influence firm and employee outcomes. We conducted two studies pertaining to these questions. The first study was based on data collected from managers, and the results suggest that firms differentiate their HR investments based on the strategic value of occupations to the firm, which was further associated with the human capital of those occupations. Differentiation in human capital was also associated with firm performance. The second study was based on data obtained from nonmanagement employees. The findings indicated that employees who were recipients of less HR system investment had lower fairness perceptions, which were further associated with higher turnover intentions and lower organizational citizenship behavior. Although the evidence from these studies suggests that firms may realize benefits from strategic HR system differentiation, managers should carefully consider how to balance the effects of differentiation on firm performance and employee well‐being before implementing such systems.     

Ready for the mantle? Australian human resource managers as stewards of ethics

In recent years in Australia, interest in business ethics has increased among managers, management educators and the public who observe the behaviour of organizations. This has been reflected in the literature of management education by an increased attention to the ethical implications of management practice. In parallel, human resources management in Australia has continued to evolve as a field, and to press its claims as a profession. This is reflected by ongoing debate in the literature about the HRM role. Advocates of an expanded role for HRM claim that HRM initiatives and practices have a strategic impact on organizations, and should accordingly be recognized at senior management levels. However, these claims for an expanded role for HRM have not been accompanied by an increased discussion of the ethical implications of the HRM role. The need for such discussion is highlighted by a survey of HR managers in Australia, which found a high level of disagreement among HR managers on a wide range of ethical issues. Even where questions related to perceptions of fact rather than the expression of attitudes, a high level of disagreement was revealed. If this is the case, it should not be taken for granted that there is a ready consensus among HR managers when it comes to translating ethical principles into organizational practice. The importance of this conclusion is indicated by another finding of the study: where organizations have undertaken initiatives on ethics, there is a high degree of involvement by HR staff.     

Stubborn traditionalism in HRM: Causes and consequences

We examine the widely-held view that “stubborn traditionalism” exists in HR, meaning that while the HR profession has progressed, its progress remains slow, and may not be sufficient to maintain effectiveness and relevance. The data on which the present study is based also showed little change in HR activities, skill satisfaction, strategic role and other features of HR over two decades (Lawler & Boudreau, 2012). This article examines two questions using cross-sectional analysis of our most recent survey of HR leaders. First we find that slow progress matters, because progress on HR functional features is related to important outcomes, including HR's role in strategy, effectiveness as a function, and organizational performance. Second, we explore one explanation for HR's stubborn traditionalism, in the organization's management approach. Our results suggest that the organization's management approach may indeed partially explain a lack of HR progress. The more organizations pursue a bureaucratic and low-cost-operator approach to management, the less their HR organization engages in advanced strategic activities, is satisfied with its HR skills, plays a strong strategic role, implements an HR decision science, and adds value to the organization. In contrast, the more organizations pursue high-involvement and sustainable approaches to management, the greater are these HR features.     

Establishing HR Professionals’ Influence and Credibility: Lessons from the Capital Markets and Investment Banking Sector

Through two separate studies involving 47 interviews inside 22 institutions in the capital markets and investment banking sector, we explore the levels of influence and sources of credibility for senior HR professionals, and examine the challenges they face in establishing credibility. We compare these findings against previous research, which has identified several determinants of HR’s influence and credibility. Our findings confirm that HR’s modest influence is contingent on the predispositions and convictions of key stakeholders, notably the CEO, but also depends on the decision being taken. We find that the basis for senior HR professionals’ credibility is more individual than institutional, and that HR professionals and senior business managers differ in the priorities they assign to credibility determinants. Finally, the studies illuminate an enduring inherent tension for HR in establishing credibility, between servicing their internal clients’ needs and retaining a level of independence. We reflect upon the transient nature of HR credibility in this sector and others. © 2014 Wiley Periodicals, Inc.     

Managing human resource for competitive advantage: a study of companies in Singapore

We see two major streams of research in the strategic human resource management literature: (1) the link between strategy and human resource (HR) practices and (2) the link between HR practices and firm performance. There is a plethora of theoretical perspectives on the first link. Unfortunately, there is not much empirical work. The second link has seen a spate of empirical studies. However, most of them embrace the universal perspective and the role of strategy as a contingency has not been adequately addressed. This could potentially result in the underestimation of the impact of HR practices on organizational performance. This study addressed the above two weaknesses in previous research in the strategic HR management field. Using a sample of about 200 of the largest companies representing all major industries in Singapore, we found that organizational strategy affects HR practices. Moreover, findings suggest that the strategy-HR interaction accounts for more variation in firm performance than the main effect of HR. Implications of the findings are discussed.