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.     

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.     

Human resource managers' role consistency and HR performance indicators: the moderating effect of interpersonal trust in Taiwan

This study explores the consistency between human resource (HR) managers' roles and HR performance indicators. In particular it considers the moderating effects of interpersonal trust on the relationship between HR managers' roles and HR performance indicators. We selected 116 HR managers from the top 500 manufacturing companies in Taiwan as our sample, and hierarchical regression analysis was conducted to test our hypotheses. The results showed that the HR managers' roles were consistent with HR performance indicators. Also, a high level of affective trust weakened the positive relationship between HR manager roles and HR performance indicators. Thus we suggested that Chinese companies should design HR performance indicators according to the roles HR managers play. Additionally, when HR managers are playing the role of a strategic partner or change agent, top executives should avoid high affective trust with HR managers.     

The changing face of HRM: in search of balance

Current models of HRM suggest that expectations about HR roles are changing as organisations are striving to make the HR function leaner and more ‘strategic’. In our article we explore the changing roles of HRM as they are perceived by different stakeholder groups within the HR profession through the medium of a study examining the diffusion of the concept of ‘the thinking performer’ launched by the Chartered Institute of Personnel and Development in 2002. We explain how the concept of business partnering dominates respondents' talk about HR policy and practice and raise questions about the impact of this in terms of HRM's relationship with employees, employee well‐being and the career paths of HR professionals. We argue that the profession needs to reflect seriously on the consequences of a dominant business/strategic partner framing of HR work, which fails to address the duality that has historically always been inherent in HR practice. We conclude that there is a need for a more balanced HR agenda addressing human and economic concerns in current and future models of HRM.     

Variability in HRM implementation among line managers and its effect on performance: a 2-1-2 mediational multilevel approach

Over the last few decades, a substantial body of research has examined the relationship between human resource management (HRM) and performance. However, little attention has been given to the implementation of HRM, although an HR policy can be implemented in various ways within an organization. In addressing recent calls in the literature to examine this issue more closely, we study the role of line managers in implementing HRM and the influence of employees' perceptions of HRM. In a multilevel study of 315 employees and 41 line managers drawn from various work-units of a Dutch municipality, we tested whether HR practices, as implemented by line managers, affect employees' perceptions of HRM and whether these perceptions in turn relate to perceived unit performance. The analysis shows that implemented HR practices differed between work-units. More specifically, our study shows that these differences can be explained by a line manager's leadership style. Moreover, our findings indicate that employees' perceptions of the HR practices implemented mediate the relationship between the HR practices implemented by line managers and perceived unit performance. These findings contribute to our understanding of how HRM affects performance.     

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.     

Is Ulrich's model useful in understanding HR practitioners' roles in non-western developing countries? An exploratory investigation across private and public sector organizations in the Sultanate Kingdom of Oman

This study set out to explore whether Ulrich's model is useful in understanding HR roles in non-western developing countries such as Oman. The study surveyed a random sample of 780 HR practitioners, line managers and employees from public and private sector organizations. In addition 12 HR practitioners and managers were interviewed to supplement the data collected from the survey. The findings indicate that HR practitioners in Oman perform all the roles. However, ‘strategic partner’ is the least performed role. The findings also indicate that HR practitioners in the private sector are more likely to perform all the five roles to a greater extent than their counterparts in the public sector. We also found partial support for our proposition that HR practitioners in the public sector would play more ‘operational’ roles (e.g. employee advocate or functional expert) than ‘strategic’ roles (i.e. strategic partner or HR leader). The study revealed that Ulrich's model is robust enough to help in the understanding of HR roles in a non-western, developing country context. The findings are discussed within the context of institutional and cultural frameworks. The paper argues for more research to improve the understanding of how socio-economic and cultural factors influence HR roles and how they are performed.     

Effectiveness of a corporate HR department in an Australian public-sector entity during commercialization and corporatization

This study examines the effectiveness of the strategic human resource management (HRM) function performed by the corporate human resource department of an Australian public-sector entity, before and after its corporatization. Multiple methods (including a survey of senior managers and semi-structured interviews) were used to collect the data. Despite an improvement in the overall level of strategic integration between HRM and strategic management, the rating of strategic HRM role effectiveness remained low. The results indicate that the strategic HRM function, as a corporate headquarters function, was more effective in its administrative role than in a value-adding function. The difficulty in balancing the dual roles of a corporate headquarter unit, together with the challenges of becoming a strategic business partner to line managers, provided the major impediments to effective strategic HRM.     

Perspectives on line managers in human resource management: Hilton International's UK hotels

Although contextual factors act to encourage the devolvement of human resource management to line managers, recent research indicates that there is substantial potential for human resource specialists and line managers to share more effectively responsibility for their organization's human resource activities in business partnerships. The foundation for this is arguably commonality in opinions on the principles and practices of human resource activities. However, line managers and human resource specialists often have dissonant opinions on human resource management.

This paper explores line manager and human resource specialists' perspectives on line manager involvement in human resource management, theoretically and empirically. The primary work comprises a survey of the views of line managers and human resource specialists on devolving a range of human resource activities to line managers in a case organization, Hilton International's UK hotels. Differences between line managers' and human resource specialists' perspectives are found in five aspects: understanding and ownership of the company's service and HR strategy; line manager involvement in and rankings of HR activities; HR specialists' support of line managers; barriers to line managers' involvement in HR activities; and the competence of line managers in HR activities. Importantly, it is found that where there are divergent views across line managers and their HR specialist in their hotel there is poor hotel business performance and, conversely, convergent views are evident in the effectively performing hotels. These findings may have resonance for other organizations in devolving human resource management to the line and developing human resource business partnerships for business performance. It is proposed that three types of line manager buy-in are central to their active involvement in HR, namely: conceptual understanding of the rationale for their involvement; implementation effectiveness through HR role clarity and capability; and affective commitment in believing in the value of their involvement in HR.     

Transforming Human Resources in the New Economy: Developing the Next Generation of Global HR Managers at Deutsche Bank AG

This article illustrates how global player, Deutsche Bank, has managed to achieve a change of direction for its HR function: becoming a strategic partner to the business. Follow the authors step by step in this transformational process to see how this change management program developed from strategy to action, making every HR professional at DB a change agent. Find out how strategic competency definition, human resource development, and state‐of‐the‐art information technology acted as levers to engage Deutsche Bank's HR community on this journey. © 2001 John Wiley & Sons, Inc.     

Overview: Strategic human resource management in five leading firms

This article synthesizes findings from five case studies conducted in firms known to be leaders in the management of people. We drew three broad conclusions:

• 1 The foundation of a value‐added HR function is a business strategy that relies on people as a source of competitive advantage and a management culture that embraces that belief;
• 2 A value‐added HR function will be characterized by operational excellence, a focus on client service for individual employees and managers, and delivery of these services at the lowest possible cost; and
• 3 A value‐added HR function requires HR managers that understand the human capital implications of business problems and can access or modify the HR system to solve those problems.

© 1999 John Wiley & Sons, Inc.     

How leveraging human resource capital with its competitive distinctiveness enhances the performance of commercial and public organizations

Although scholars agree that complex relationships between organizations' actual human resources (i.e., human capital stock) and means of leveraging these resources may influence performance, little empirical work has tested such propositions directly. We collected two primary data sets from privateand public‐sector organizations in Israel. The multiplicative interaction between perceived human resources capital and distinctive value derived from that HR capital was significantly related to various measures of perceived and objective organizational performance. Having higher levels of human resources capital was strongly associated with performance only when top managers perceived that these resources provided distinctive value in terms of being highly valuable, inimitable, rare, and nonsubstitutable. We discuss the implications of these findings for research on strategic human resource management and the resource‐based view of competitive advantage, as well as for practical efforts to develop firm‐specific human resource capital that is inherently distinctive. © 2005 Wiley Periodicals, Inc.     

Antecedents and Employee Outcomes of Line Managers' Perceptions of Enabling HR Practices

To learn more about the role of line managers in the implementation of HR practices, we propose and test a model of line managers' perceptions of enabling HR practices on the one hand and employee outcomes on the other. In a field study of 89 line managers and 631 employees, we observed that the relationship between line managers' perceptions of enabling HR practices and employees' intrinsic motivation, affective organizational commitment, and turnover intention was mediated by employees' perceived supervisor support. Line managers' perceptions of enabling HR practices, in turn, were predicted by line managers' perceived quality of the HR training they received. Theoretical and practical implications and directions for future research are discussed.     

On becoming a strategic partner: The role of human resources in gaining competitive advantage

Although managers cite human resources as a firm's most important asset, many organizational decisions do not reflect this belief. This article uses the value, rareness, imitability, and organization (VRIO) framework to examine the role that the human resource (HR) function plays in developing a sustainable competitive advantage. Why some popularly cited sources of sustainable competitive advantage are not, and what aspects of a firm's human resources can provide a source of sustainable competitive advantage are discussed. The role of the HR executive as a strategic partner in developing and maintaining competitive advantage within the firm is also examined. © 1998 John Wiley & Sons, Inc.     

Coping with an emerging market competition through strategy-human resource alignment: case study evidence from five leading Japanese manufacturers in the People's Republic of China

This paper documents how PRC-based Japanese affiliates can align their human resource management (HRM) policies and practices with their business strategies based on in-depth interview surveys of the five leading Japanese manufacturers in China. In particular, using a multiple-informant research design to interview both top and human resource managers in each site, the study has attempted to clarify the strategic fit between the business strategies pursued and HRM practices adopted in China. Our interviews with top management for each affiliate revealed three types of business strategies that the PRC-based affiliates adopt to gain competitiveness in the Chinese market. Separate interviews with HR managers further clarified that affiliates' HRM efforts are aligned with the strategy each affiliate is pursuing. The findings are used to suggest several hypothesized relationships between the particular strategies pursued and the HRM practices adopted in China. Furthermore, this study has provided some important insights as to how the choice of affiliate-level business strategies in China affects the ‘hybridization’ processes of the HRM policies and practices used in the cross-national business environment.     

Factors helping the HR function gain greater acceptance for its proposals and innovations: evidence from Spain†

On the basis of the sense-making and sense-giving literature, this study addresses factors helping the HR function gain greater acceptance by employees for its proposals and innovations. Using an original sample of 298 employees from nine firms in Spain, we find that HR department credibility is only one of the factors that influence employees' acceptance. Other essential elements are top management and supervisor support. We also investigate the consequences that differential levels of support from supervisors and top managers can have for the acceptance of HR innovations, and we find that supervisor support carries more weight than that of top managers. Finally, we explore variations in the importance of the HR function credibility as an acceptance enabler under different organizational innovation climates. The results suggest that HR credibility plays an essential role independently of climate.     

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.     

The performance effects of human resource managers' and other middle managers' involvement in strategy making under different business-level strategies: the case in Hong Kong

We first developed theory arguing that HR managers' and other middle managers' involvement during strategy making would have different effects on performance for firms pursuing different business-level strategies. Then, our empirical study tested the hypotheses in the context of HR managers and middle managers in the Hong Kong Special Administrative Region, People's Republic of China. We found that HR manager involvement during strategy making was positively related to perceptions of future business performance. The use of a differentiation strategy was also positively associated with future performance. Neither the use of a cost leadership strategy, however, nor involvement by other middle-level managers, was directly related to perceived future performance. Interestingly, pursuit of a cost leadership strategy, combined with either high HR manager involvement or high middle manager involvement, produced high business performance. Thus, we found a positive and significant interaction such that increasing levels of manager involvement in strategy and a cost leadership strategy was associated with much higher levels of performance. Lower levels of manager involvement combined with the cost leadership strategy, however, were related to much lower performance. No such interaction effect was apparent for differentiation strategies.     

How HR measures support risk management: The Deutsche bank example

Are there concrete examples of how the “soft” HR factors can be made tangible and, what's more, meaningful to the business? In this article we give an answer to this frequently asked question. We show how Deutsche Bank's HR function consistently developed the range of employee surveying instruments to become pivotal to the Group's success. This is part of a wider effort in recent years to achieve a change of direction for the HR function, making it a strategic partner to the business. © 2002 Wiley Periodicals, Inc.