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.     

Clarifying the construct of human resource systems: Relating human resource management to employee performance

Strategic human resource management researchers have strongly advocated a system perspective and provided considerable evidence that certain systems of human resource practices have a significant impact on individual and organizational performance. Yet, challenges of understanding the construct of human resource systems still remain in the literature. Specifically, few efforts have been made to explicate the internal fit in human resource systems referring to how the practices in human resource systems work together. For the purpose of clarifying human resource systems construct, we review the components of human resource systems and delineate how the parts of human resource systems work together to influence employee performance. Theoretical and empirical implications for future research are also discussed.     

Does intellectual capital mediate the relationship between HRM and organizational performance? Perspective of a healthcare industry in Taiwan

Previous studies indicate that the linkage between human resource management (HRM) practices and organizational performance is tenuous. Some key intermediate elements evidently have not been accounted for. In an era where intangibles have become the source of wealth and progress, intellectual capital could be one of the missing links. Therefore, this study predicts that the three components of intellectual capital, namely, human capital, relational capital, and organizational capital, mediate the relationship between HRM practices and organizational performance. Data from 277 hospitals, with a response rate of 56%, confirm the mediation role of intellectual capital in explaining the effect of HRM practices on organizational performance.     

Innovative human resource practices and organizational commitment: an empirical investigation

In the contemporary business environment, human resource (HR) is an indispensable input for organizational effectiveness. Hence, an effective management of human resources has an important role to play in the performance and success of organizations. Competitive pressures have encouraged organizations to be proactive in diagnosing HR problems and to adopt more innovative HR practices since these were no longer a matter of trend, but rather of survival. The present study attempted to explore the relationship of three dimensions of innovative human resource practices (IHRPs): that is, the extent of introduction of IHRPs, their importance for organizational goal achievement and satisfaction with implementation of IHRPs, with organizational commitment (OC). Regression analyses showed that the perceived extent of introduction of innovative human resource practices by the organizations was the most significant predictor of organizational commitment.     

HRM and culture: History,ritual, and myth

The concept of organizational culture is here applied to the practice of human resource management. Reasons for the current emphasis on culture as an organizational metaphor are suggested. Cultural indicators which have diagnostic value for human resource professionals include organizational usage of symbols, rituals, ideologies, language, stories, myths, relationship, and humor. Examples of these indicators of culture are drawn from a variety of HRM practices and functions to explore the implications of each indicator. Alternative strategies are presented for improving the management of organizational change through sensitivity to cultural impact and better utilization of existing cultural realities.     

The labour relations heritage and lean manufacturing at Fiat

The objective of the paper is interpreting, from an evolutionary perspective, recent developments of work organization and human resource management policies at Fiat Auto, one of the world's largest automobile manufacturers, which achieved a successful restructuring in the early 1990s. Building on a heritage of adversarial labour relations and ‘mass production’ organizational principles, Fiat developed an original and to some extent hybrid version of ‘lean’ human resource management practices (teamwork, flexible compensation, multi-skilling, etc.).

The paper analyses this process of organizational change from an evolutionary perspective based on the concept of dynamic capabilities. From this standpoint, IR. HRM and work organization practices are the result of a learning process, based on original development, imitation, analogical replication, combination and selection of organizational capabilities; organizational capabilities have a cumulative and path-dependent nature; workplace innovations are also rooted in organizational absorptive capacities, that is, the ability of firms to exploit new (and often extramural) organizational and HRM developments; the existence of complementarities among organizational competencies, assets and choices in term of HRM are likely to push toward the adoption of a set or system of (rather than single and insulated) innovations in work organization, HRM practices and industrial relations policies.

The data provided in the paper show that the process of innovation of workplace practices at Fiat Auto (summarized by the concept of the Fabbrica Integrata) is curiously non-linear. The newly designed HRM policies have, on the one hand, been resisted by the unions (who have not been involved in the design process) and by segments of the work-force; on the other hand, they have been hindered by existing organizational features and personnel practices which, in turn, were key success factors during the 1980s. This inertia is significantly lower at the new greenfield plant of Melfi. On the whole, the restructuring process was successful from the competitive and financial standpoint, and represents the basis on which management and the unions can develop a new co-operative model of industrial relations.     

Strategic human resource management and MNEs' performance in China

This study tested a perspective of strategic human resource management (SHRM) and compared human resource practices among multinational enterprises (MNEs) in two industries in China. Specifically, empirical data from firms in China's soft-drinks and electronics industries were analysed. The results supported a number of basic assumptions of the SHRM model, such as those regarding the relationship among firm environments, firm strategy, firm human resource practices and firm performance.     

Intra-organizational impediments to the development of shopfloor competence and commitment: The case of a Finnish-owned greenfield paper mill in East Germany

Building new production facilities abroad poses a huge challenge to the human resource practices of a firm. This is because reaching the required level of competence and commitment is not possible without adjusting these practices to the characteristics of local personnel. However, there are few empirical studies that highlight how such situations have actually been handled. This paper makes a contribution through an examination of the initial phases of a Finnish-owned greenfield paper mill in East Germany. The evidence used in the study includes documentary analysis, interviews and discussions with actors at the different organizational levels. The case study demonstrates how managerial subdivisions and the absence of local actors from the higher levels of the managerial hierarchy impede development of competence and commitment among the new employees. The evidence presented suggests that the involvement of various organizational actors in human resource management processes should be given more weight in further research.     

Stemming the exodus of women managers

Survey findings based on a national sample of CEOs and human resource managers indicate that over 50% of organizations have experienced moderate to great difficulty attracting and retaining women managers and professionals. Respondents perceived that the most serious career problems encountered by women revolve around organizational politics, career development opportunities, and family conflicts. Existing and needed human resource management policies in response to these problems are reported. A series of additional analyses highlight differences across industries, and according to company size and stage in the corporate life cycle. Based on survey findings, recommendations are discussed for human resource management practitioners concerned with increasing their companies' abilities to actively compete for and retain women managers.     

Thirty-two years of development of human resource management in China: Review and prospects

Focusing on the theoretical developments and practical applications of human resource management, this paper reviews the transition of human resource management in China from planned labor and personnel management to modern human resource management in three distinct time periods since China's reform and opening-up. Next the paper discusses the challenges of human resource management research and its practices from the perspectives of internationalization, corporate culture, and organizational innovation during China's economic transition. Finally, it presents the prospects and trends in the future development of human resource management in China.     

Total quality management and human resource systems: an international comparison

This paper takes advantage of a unique international data set to examine the determinants of the adoption and sustainability of total quality management techniques, focusing in particular on the role played by human resource professionals and practices. The data come from a 1991 survey conducted by Ernst and Young and the American Quality Foundation covering the use of TQM tools in the computer, auto, health care and banking industries in Japan, the United States, Canada and Germany.

The research distinguishes between two ways of implementing total quality management – one approach conceptualizes TQM as a relatively limited set of technical engineering changes while the second implements these technical changes as part of a larger transformation of the organization of work. We find support for the second approach in that the number of employees using quality tools and the number of quality tools in use is greater and lasts longer in firms that also have team-based human resource systems for frontline employees, with team structures, suggestion systems, meetings and group rewards. This central finding holds across all countries and industries studied.

We also find that achievement of these changes requires the commitment of organizational stakeholders to incorporate the interests of employees in strategic decision making. Though union presence alone does not predict the adoption or sustainability of these innovations, partnership between management and union does have a positive effect. The level of strategic influence of the human resource department also influences innovation, though in ways that differ across countries and industries.

The findings suggest the value of comparative studies and of research focused at exploring sub-national variation. The findings also suggest the value of a longitudinal study of the sustainability of innovation.     

The phenomenon of young talent management in Russia—A context‐embedded analysis

This article describes the particularities of young talent management (TM) in Russia and explains them through a context‐specific analysis. It adopts a multilevel perspective that acknowledges the relevance of context at three levels: the macro environment, the organizational, and the individual. Data were gathered through 46 interviews with HR managers and young talents from six Russian companies and six Russian subsidiaries of foreign multinational companies (MNCs) active in a variety of industries. Following the contextualization approach, this study offers important insights into the interplay between macro, organizational, and individual factors as well as their isolated or interrelated effects on TM. While multilevel contextualization provides the rationale behind certain TM practices and the particular focus on young talents in Russia, it also explains why Russian companies are inspired by global best TM practices. Thus, contextualization allows for explaining the coexistence of a specific environment and nonspecific (global best) TM practices. Important particularities are revealed also when compared to the results of TM studies in other emerging countries. The article contributes not only to the TM discussion, but also to the wider field of international human resource management and the international management literature regarding contextualization.     

Human resource management and performance in a developing country: the case of Eritrea

This study investigates the relationship between human resource management (HRM) practices and organizational performance. Results based on a sample of 82 organizations from private and public sectors in Eritrea indicate that some of the practices have a significant impact on employee turnover, absenteeism, grievances and productivity. While compensation was the only independent variable found to be statistically significant in affecting grievances, employee selection had no effect across all performance measures. However, the study's results offer support for the assertion that investments in HRM practices results in better organizational performance.     

The impact of human resource management practices and corporate entrepreneurship on firm performance: evidence from Turkish firms

This paper outlines the important role of human resource management practices with a link between corporate entrepreneurship and firm performance. Data were collected from a survey of 124 firms operating in different industries in Turkey. The findings of this study indicated that human resource management (HRM) practices partially mediated the relationship between corporate entrepreneurship and firm performance. In other words, corporate entrepreneurship affects firm performance, both directly and through its effects on HRM practices. In addition to corporate entrepreneurship, it is found that HRM practices explain a significant level of additional variance (9 per cent) in firm performance. The theoretical and managerial implications are discussed.     

Aligning strategic human resource management and person–environment fit

Strategic human resource management addresses the need to create vertical linkages of human resource management (HRM) attributes with corporate strategy as well as horizontal linkages that integrate practices among HRM functions. Most models commonly focus on either vertical or horizontal linkages. This paper utilizes three categories of person–environment fit to create both vertical and horizontal linkages. Based on a strategic contingency framework, it demonstrates how person–environment fit relates to organizational competencies that supports corporate strategy. Furthermore, it demonstrates how person–environment fit can be used to promote internal alignment of HRM practices. Implications of this approach to strategic human resource management are then discussed.     

HR practices and turnover intention: the mediating roles of organizational commitment and organizational engagement in a selected region in Malaysia

This study examined the mediating effects of organizational commitment (OC) and organizational engagement (OE) on the relationship between human resource (HR) practices (career management, performance appraisal, compensation, person–job fit and job control) and turnover intention. A total of 457 employees working in various sectors in a selected region in Malaysia participated in this study. It was found that all the variables used to measure HR practices have significant effects on OC and OE. However, multiple regression analyses indicated that career management and job control did not have any significant influence on turnover intention. OC and OE were discovered to give partial mediating effects on the relationship between HR practices and turnover intention.     

Changes in HRM and job satisfaction, 1998–2004: evidence from the Workplace Employment Relations Survey

This paper examines the relationship between human resource management practices and job satisfaction, drawing on data from the 1998 and 2004 Workplace Employment Relations Surveys. The paper finds significant increases in satisfaction with the sense of achievement from work between 1998 and 2004; a number of other measures of job quality are found to have increased over this period as well. It also finds a decline in the incidence of many formal human resource management practices. The paper reports a weak association between formal human resource management practices and satisfaction with sense of achievement. Improvements in perceptions of job security, the climate of employment relations and managerial responsiveness are the most important factors in explaining the rise in satisfaction with sense of achievement between 1998 and 2004. We infer that the rise in satisfaction with sense of achievement is due in large part to the existence of falling unemployment during the period under study, which has driven employers to make improvements in the quality of work.     

Evolution of organizational governance and human resource management in China's township and village enterprises

This study reviews the evolution of organizational governance and human resource management practices in China's non-state sector, with a focus on China's township and village enterprises (TVEs). The empirical investigation on twenty TVEs located in Southern China provided the evidence that, as enterprises move towards a more formal corporate governance structure with clearer property rights relations, their human resource management practices tend to become more marketized, in order to meet the challenge of increased competition in the highly dynamic, transitional Chinese economy.     

The effect of human resource management practices on the perceptions of organizational and market performance of the firm

The purpose of our study is to extend the emerging empirical literature on the firm‐level impact of human resource management practices. Results based on a national sample of organizations from private and public sectors in Israel indicate that these practices have a significant impact on both the perceived organizational and market performance of the organization. The single independent variable found to be statistically significant in affecting perceived organizational performance was training practices. In the case of perceived market performance, we found that, in addition to training practices, employee selection practices also significantly affected the perceived market performance.¹ © 1999 John Wiley & Sons, Inc.     

Small entrepreneurial ventures culture, change and the impact on HRM: A critical review

Effective management of people is increasingly recognized in the literature as a vital contributor to organizational performance and indeed survival. Nevertheless, studies of the dynamics of human resource management in small entrepreneurial ventures are relatively sparse. In this paper we draw upon a range of behaviourally-informed research publications to demonstrate that a culture of owner-influenced individualism and informality pervades these ventures, affecting prime human resource issues such as performance related practices, training and development, work–life balance and other critical dimensions of employee welfare. A preference for informality and an absence of strategy to inform owner–employee relations sits uneasily alongside growing political pressures toward codification of the management of employees in small entrepreneurial ventures. The response to these pressures may have significant implications both for relationships with employees and for organizational performance.