The role of institutional and intermediary forces in shaping patterns of employee involvement and participation (EIP) in Anglo-American countries

Most studies of employee involvement and participation (EIP) focus on organisation level, which is understandable given that employers have plenty of choice about how it should be implemented. However, even the most lightly regulated economies do not operate in a complete institutional void as some forms are regulated while government-funded initiatives also promote EIP. Employers' organisations, professional associations and other specialist organisations also operate as intermediary forces between the state and individual employers to shape EIP. However, these forces have not been analysed, an omission which seems strange given the ‘space’ available for occupation in lightly regulated economies. This paper compares the role these different forces play in shaping patterns of EIP at organisation level in four Anglo-American countries (the UK, Ireland, Australia and New Zealand) through interviews and documentary evidence at national, intermediary and organisation levels. While ‘hard’ institutional forces have some influence on representative EIP, ‘soft’ institutional and intermediary forces are more likely to shape EIP because they allow employers choice and flexibility in implementation and fit with national business systems in these countries. However, given such interventions are voluntary, they are also susceptible if government priorities change or employers are attracted by the next management fad.     

Do Institutionalized Traditions Matter During Crisis? Employee Downsizing in Korean Manufacturing Organizations

This study examines the downfall of the permanent employment tradition in South Korean manufacturing organizations in the aftermath of the 1997 East Asian economic crisis. We explore whether organizations abandon their traditional institutionalized practices under discontinuous environmental change or despite the change continue these time‐honoured practices. We examine both the organizational factors that inhibit lay‐offs and performance indicators that trigger organizations to re‐evaluate their lifetime employment practices under drastic environmental upheaval. We test our hypotheses on 574 Korean manufacturing organizations and find that under discontinuous change: (1) economic and institutional factors simultaneously apply opposite forces on organizational actions; (2) organizational factors such as poor performance on productivity and export create a need for headcount reductions while factors such as size, domestic ownership, government support, and unionization create social and institutional pressures that inhibit downsizing; and (3) prior experience with downsizing moderates the relationship between institutional factors and further downsizing.     

Customer Orientation and Management Control in the Public Sector: A Garbage Can Analysis

Recent public sector reforms have increasingly tended to re-cast citizens as ‘customers’. This paper explores the implications of such customer orientation efforts for management control based on a field study in a Swedish central government agency. We extend prior research on this topic, informed by critical and institutional theories, with insights from the garbage can literature and focus on a key decision-making process involved in making extant management control practices more customer-focused. Our analysis nuances the predictions of critical scholars, suggesting that customer orientation initiatives will commodify public services and narrow the interests served by public sector organizations. In doing so, we draw attention to how conflicting institutional arrangements fostered a garbage can situation hampering radical change in management control practices. Our garbage can analysis provides a bridge between critical and institutional perspectives by re-instating a focus on decision-making. We show how the intricacies of decision-making may moderate the power embedded in novel management control practices and foster inertia and unintended outcomes. Our analysis also raises important policy implications pertaining to the possibilities of combining customer orientation efforts with rationing of public services.     

Models of democracy in spatial investments

Governance regarding spatial investments meets or even creates institutional tensions that process management finds difficult to cope with. Traditional democracy is confronted with new ways of policy making. New practices include multi-level governance, public?–?private partnerships and citizen participation. Central government and parliamentary control have to adapt to such practices. This article studies institutional tensions in two cases of spatial investment, using representative and participatory democracy as models of political regime and policy implementation. The analysis also links governance to characteristics of space. The authors make recommendations to combine ‘representative’ and ‘participatory’ elements of governance in a way that reduces institutional tensions in processes of spatial investment.     

Managing ‘difference’: understanding age diversity in practice

This paper seeks to explore how age diversity is characterised, understood and managed by HR managers responsible for its implementation. With businesses competing at a global level and demographic trends changing the landscape of the labour market, the diversity approach to managing workplace equality has been heralded as the answer to the political and moral challenges in marrying external competition with internal workplace equality. Nowhere has this been more influential than in recent debates concerning older workers in the labour market, and yet, how age‐related HR practices relate to the underpinning philosophies of diversity has not yet been explored in any depth. Drawing from interview data with HR managers from a range of industry backgrounds, this article explores the inherent tensions faced when discussing age as a diversity issue, and the persistent effects of larger social norms related to ageing. By focusing on the concept of ‘difference’ as a key tenet of diversity, the challenges in ensuring equality while being aware of contradictory messages from both inside and outwith the organisations play a key role in age diversity in practice. This leads to a discussion about the more subtle practices involved in the workplace implementation of age diversity and how awareness of inherent biases may challenge age inequality within organisations.     

High‐performance work systems and creativity implementation: the role of psychological capital and psychological safety

Unimplemented creative ideas are potentially wasted opportunities for organisations. Although it is largely understood how to encourage creativity among employees, how to ensure this creativity is implemented remains underexplored. The objective of the current study is to identify the underlying mechanisms that explain the relationship between high‐performance work systems and creativity implementation. Drawing from the job demands–resources model, we explore a model of psychological capital and psychological safety as mediators in the relationship between high‐performance work systems and creativity implementation. Based on 505 employee survey responses, the findings show support for the mediating relationships, highlighting the importance of psychological mechanisms. The study has important implications for HRM, uncovering how people management practices can encourage creativity implementation in the workplace.     

A cross‐cultural examination of the relationships among human resource management practices and organisational commitment: an institutional collectivism perspective

Previous research has shown that human resource management (HRM) practices vary across cultures. However, little research has empirically compared the effects of various HRM practices on firm‐level or individual‐level outcome variables across cultures. Drawing upon psychological contract theory and the literature on cultural values, the present study examined the effects of three organisational‐level HRM practices on individual organisational commitment in a survey of 2424 individuals in 120 organisations located in four countries and three industries. Based upon the GLOBE study, we classified the four countries into two groups – high versus low institutional collectivism. The results of our hierarchical linear modelling (HLM) analyses found significant differences in the effects of organisational‐level HRM on individual organisational commitment across cultures for two of the three HRM practices included in our model: training and teamwork. We also found partial support for differences across cultures for the effects of the third HRM practice: employee involvement in decision making. Overall, our results support the utility of theoretical and empirical models that address multiple levels of analyses to better understand the mechanisms through which the HRM‐performance link takes place across national cultures.     

Analysing the forces shaping employee involvement and participation (EIP) at organisation level in liberal market economies (LMEs)

Employee involvement and participation (EIP) continues to attract significant interest from academics and practitioners alike, often in terms of so‐called newer forms of employee engagement and informal consultation. However, although the history of EIP shows that multiple channels are the norm in most organisations, it is still rare for representative, direct and informal EIP to be discussed in the same study. This article breaks new ground by developing measures for the breadth and depth of EIP, as well as analysing the forces at and beyond organisation level which shape management choices about which forms to adopt and how to embed them more deeply in organisations. Data were collected from 86 interviews and associated documentary analysis at and beyond organisational level in four liberal market economies (LMEs) (UK, Ireland, Australia and New Zealand) in order to identify how forces at national and organisational level shaped the breadth and depth of EIP in 25 case study organisations. The article's main conclusion is that while institutional forces – such as legislation, government action and intermediary bodies – do have an influence in LMEs, the way in which management interprets more immediate organisational forces remains significantly important in embedding EIP within organisations.     

Reducing intentions to resist future change: Combined effects of commitment‐based HR practices and ethical leadership

Change management, and particularly the human side of change, is a central tenet of the strategy of contemporary organizations. However, there is little evidence concerning how strategic HR practices influence how individuals anticipate and react to the implementation of a major change and how direct supervisors influence that process. With a sample of 191 employees from multiple organizations, who completed two surveys with a four‐week lag, we examined the role of commitment‐based HR practices on employees’ intentions to resist future change. We found that commitment‐based HR practices contribute to a decrease in intentions to resist future change, measured four weeks later, via increased affective commitment to change. Moreover, we found that this relationship is conditional on ethical leadership, in that it is significant when ethical leadership is high but not when it is low. Building on social exchange and uncertainty reduction theories, our findings contribute to the literature by examining how and under what boundary conditions HR practices are an effective means for organizations to anticipate and manage change.     

Age‐related differences in the relations between individualised HRM and organisational performance: a large‐scale employer survey

The current study aimed to investigate the relationship between individualised HRM practices and several measures of organisational performance, including the moderating role of employee age in these relationships. A large‐scale representative study among 4,591 organisations in the Netherlands showed support for the relationships between individualised HR practices with organisational performance. Employee age moderated the relationships between the use of individualised practices and sickness absence and turnover, such that organisations with a high percentage of older workers benefited from work schedule practices, and organisations with high percentage of younger workers benefited from development practices.     

Liberalising the German model: institutional change,organisational restructuring and workplace effects

Institutional change at supranational, European Union level affects national and firm level institutions in various ways. This article traces effects of liberalisation measures in the airport industry enacted in two airport firms in Germany. The study, based on qualitative empirical research, found that EU liberalisation facilitated company creation of subsidiaries (subsidiarisation) and elevated shareholder interest in corporate governance. These factors affected institutional practices and cultural norms within the German industrial context that in turn influenced significant alterations in employment and workplace relations. Considerable disruption of the German social partnership model of corporate governance and industrial relations was observed. However, in addition to patterns of convergence towards neoliberal practices and outcomes frequently observed in Anglo‐Saxon systems, the study found some elements of effective retention of cultural institutional resources of the German model. Both ‘path departure’ and social embeddedness appear to coexist.     

Embedded in context: How time and distance affect the convergence of personnel selection practices

The debate on convergence versus divergence or stasis in human resource management (HRM) practices over time is still ongoing. We look at configurations of organisations' personnel selection practices and empirically analyse the role of geographic, cultural and regulatory institutional distance between countries for emerging similarity or dissimilarity in these practices. We also examine whether convergence occurred between 1995 and 2015. Based on the Cranet data of 25,869 organisations from 42 countries and statistical tests using energy distance, we find a pattern over time, moving from stasis to divergence. In addition, personnel selection configurations relate to cultural and regulatory institutional differences in the sense that smaller distances lead to higher similarity. This is not the case, however, for geographic distance. Our study adds to the debate on HRM convergence and offers a new method of analysis for other areas of HRM research where configurations instead of single HRM practices play a role.     

HR practices and commitment to change: an employee‐level analysis

This article explores the relationship between HR practices and commitment to change in three health service organisations in Ireland. The research focuses on employee views of HR practices and resulting employee‐level consequences including commitment to change, perceptions of the industrial relations climate and the psychological contract, and work–life balance. The findings indicate that the HR practices valued by employees, and which are related to a range of employee‐related consequences, are very different from the lists of sophisticated HR practices that appear in the high performance literature. The research suggests that organisations need to ensure that attention is still paid to the basics of the employment relationship and that these are not lost in the rush to introduce more sophisticated approaches to managing employees.     

Protecting expatriates in hostile environments: institutional forces influencing the safety and security practices of internationally active organisations

Abstract

The operations of internationally active organisations continue to encroach on hostile locations that are vulnerable to the negative consequences of crises such as political upheaval, terrorist attacks or natural disasters. Yet research into how firms ensure the physical and psychological safety and security of international staff in these locations is limited. This article reports an empirical study exploring the expatriate safety and security practices of 28 internationally active organisations from three industries that commonly operate in hostile environments. We unveil starkly different approaches across the three industries, and label these approaches ‘regulatory’ (mining and resources), ‘informal mentoring’ (news media) and ‘empowering’ (international aid and development). We use institutional theory to propose that these configurations reflect legitimacy-seeking choices that these organisations make in response to the various institutional environments that affect each sector. Our results provide a platform for initial theory building into the interrelated elements of organisations’ safety and security practices, and the institutional factors that shape the design of these.     

Challenging ‘strategic HRM’ and the relevance of the institutional setting

One of the more fundamental aspects of the ongoing debate about the added value of HRM relates to ‘best’ practice versus ‘best‐fit’. Best practice suggests the universal success of certain HR practices, while best‐fit acknowledges the relevant impact of contextual factors. We argue that differences in embeddedness and in institutional settings between, for example, countries affect the nature of HRM. To understand this phenomenon, we are in need of additional theory. In this article we will use the theory of new institutionalism as a better way to understand the shaping of HR policies and practices in different settings. After a concise review of the latest debates in the area of strategic HRM, in which the resource‐based view is the dominant perspective, we turn to an analysis of HRM in different institutional settings, which suggests the need for additional theory: ie new institutionalism. We offer propositions to explain the impact of different institutional mechanisms, including coercive, normative and mimetic ones, on the shaping of HR policies and practices in organisations. The remainder of the article then focuses on possible implications for practitioners, theoretical implications for future research, and challenges for strategic HRM.     

Age diversity management and organisational outcomes: The role of diversity perspectives

Several macro‐level and meso‐level factors have led to unprecedented proportions of aged employees in organisations, resulting in higher levels of age diversity. Little is known about which age diversity practices and programmes are effective in which types of organisations for which outcomes. Derived from social exchange theory, this paper proposes and tests positive relationships between age diversity practices and organisational outcomes and work‐life programmes and organisational outcomes. Derived from contingency theory, it also proposes and tests for a moderating effect of diversity perspective (fairness and discrimination vs. synergy) on the two main relationships. Data were collected from 248 medium to large‐sized for‐profit organisations. The results partially support both main effect hypotheses and one moderating effect hypothesis. The findings suggest different organisational outcomes for age diversity practices and work‐life programmes. Theoretical and practical implications are discussed.     

Relationships and resources: the isomorphism of nonprofit organizations’ (NPO) self-regulation

Self-regulation emerges as an option in response to government control of the institutional environment of nonprofit organizations (NPOs). While most research focuses on conceptualizing and arguing for self-regulation, this study examines self-regulation through the lens of the institutional perspective by focusing on a specific institutional domain of NPOs in Lebanon. Results indicate that a certain degree of normative isomorphism, through professionalization, has a positive impact on NPOs’ participation in self-regulation while mimetic practices do not yield the same results; coercive isomorphism is not a significant predictor. The results allude to certain implications both for management practices and for scholarly research.     

History,practices, and future of earned value management in government: Perspectives from NASA

The goal of this research is to explore the history, practices, and future of the earned value management (EVM) method in government, and seek opportunities and suggestions for wider implementation of EVM for managing, measuring, and controlling project performance and progress. First, this study reviews the historical background and evolution of EVM implementation in government. Then, current practices for implementing EVM are discussed through examination of EVM adoption and implementation at NASA. The research shows that NASA receives substantial project management value from its implementation of EVM, promotes consistent practices across the agency, and provides effective training on leadership, scheduling, EVM, and data analysis. This study also provides recommendations to improve and broaden the applications of current EVM and project management practices to other government programs and projects. Findings of this research contribute to the management of performance of future projects and programs and encourage the project management community to review and advance the application of EVM.     

The search for legitimacy and organizational change: The agency of subordinated actors

This article investigates the organizational changes triggered by the implementation of certified management systems (CMS) in Denmark and explores how institutionalized organizational practices change over time. The study shows that improvements in performance were not significant in the implementation of CMS, though in most cases its adoption implied organizational changes. The study also shows that the search for external legitimacy was appropriated by various internal organizational actors, other than management. When internal actors share the institutionalized beliefs and norms of the wider society, they implicitly strive to reduce decoupling. We argue that understanding the social dynamics of legitimacy in organisations requires paying attention to the agency of superordinated as well as subordinate actors.