Union substitution effects of human resource management practices in South Korean workplaces, 2005–2013

Abstract

This article explores the association between various workplace-level HRM practices and a decline in union strength using a unique longitudinal survey data-set gathered in South Korea from 2005 to 2013. It addresses the underlying theoretical mechanisms by which HRM programs substitute for the roles labor unions have traditionally played. Suggesting more nuanced theoretical implications about HRM practices and union decline, statistical analyses reveal that workplaces that have implemented HRM practices have unions with a weaker organizational base than those without such practices, but that certain HRM programs correlate with unions with a strong collective voice in management decision-making. This article identifies the new roles for unions in South Korea in the era of HRM.     

A literature review on HRM and innovation – taking stock and future directions

This article reviews the growing body of empirical evidence (N = 35) on the impact of HRM on innovation that has been published during the past 25 years (1990–2015). Our most definitive finding concerns the impact of bundled HRM practices, which can be firmly linked to innovation. The role of high-commitment practice bundles appears particularly important. Studies on the various individual practices indicate that practices that foster employee commitment, loyalty, learning and intrinsic motivation are conducive to innovation. Some evidence points to the role of macro- and micro-level moderators setting boundary conditions (e.g. industry and strategy) for the HRM–innovation relationship and to mediators, such as creativity and knowledge management, as explanatory mechanisms as to why HRM impacts innovation. We noted a number of insufficiently covered areas that call for further research. We present four specific recommendations: (1) different phases of the innovation process deserve greater attention; (2) the invention of radical innovation warrants further investigation; (3) measurement of innovation and HRM should be more consistent; and (4) the theoretical underpinnings of the relationship between HRM and innovation should be strengthened. We conclude by reflecting the ‘black box’ stage between HRM and innovation through the AMO framework.     

The role of collaborative human resource management in supporting open innovation: A multi-level model

With open innovation (OI) playing an important role in many organizations' innovation strategy, there is growing interest in the human aspects of OI. An important challenge for managing OI remains the motivation of individuals for knowledge sharing and sourcing (KSS). To address this issue, we argue that managers responsible for OI need to use collaborative human resource management (collaborative HRM) practices to create the conditions to develop relational leadership and an open innovation mindset (OI mindset) among employees. Since OI research is largely focused on the organizational level, the micro-foundations of OI, as well as the interdependencies across team and individual levels are not yet fully understood. There is no systematic approach for understanding the role of collaborative HRM and the process through which employees' KSS and use OI within their organizations. We build on social exchange theory to develop a multi-level model of collaborative HRM practices used through relational leadership and OI mindset to enable employees to KSS and improve OI performance.     

The role of HRM practices in product development: Contextual ambidexterity in a US MNC’s subsidiary in India

Abstract

Recent studies have started exploring the linkages between organisational ambidexterity (OA) and HRM practices. OA is noted as a critical resource in achieving product, process, and business model innovations. By adopting an inductive case study of a US MNC subsidiary in India, we found empowerment-focused HRM practices were being used for exploration of new ideas and efficiency-focused HRM practices were adopted for the exploitation of the organisation’s existing strengths. Empowerment-focused HRM practices created a culture of openness and risk-taking, which facilitated the creation of an ambidextrous context. Further, ambidextrous learning was moderated by the adoption of a managerial/leadership style that focused on ‘mirroring competencies’ between the parent operation and its subsidiary. HRM practices were aimed at developing behaviours that valued the team-based co-development of graphic processor designs by means of a ‘parallel processing’ approach to product development. Additionally, the HRM practice of offering intrinsic employee rewards and both informal and formal training facilitated OA in delivering product innovation. This study represents a pioneering exploration of multiple levels of analysis (individual, functional, and organisational) for product innovation through the lenses of ambidexterity, innovation, and HRM practices. The implications for both theory and practice are also discussed.     

Which HRM practices enhance employee outcomes at work across the life-span?

Abstract

Based on the social exchange theory and on ageing and life-span theories, this paper aims to examine: (1) the relationships between perceived availability and use of HRM practices, and employee outcomes (i.e. work engagement and employability); and (2) how employee age moderates these relationships. Using a sample of Nmaximum = 1589 employees, correlational analyses and multiple hierarchical regression analyses were conducted. First, confirming our hypotheses, results showed predominantly positive relationships between work engagement and both perceived availability and use of development HRM practices, such as HRM practices related to learning, development, and incorporating new tasks. The study outcomes opposed, however, our hypotheses with predominantly negative relationships between work engagement and perceived availability and use of maintenance HRM practices. Predominantly positive relationships were furthermore found, as was hypothesized, between employability and perceived availability and use of development as well as maintenance HRM practices. Generally speaking, these results were not more pronounced for any of the age groups. That is, age appeared to not play any significant moderating role. Research limitations, implications for practice and directions for future work are also discussed.     

An employee-focused human resource management perspective for the management of global virtual teams

Abstract

The number of global virtual teams (GVTs) has increased in recent years due to globalization of business, improved information and communication technology, and higher innovation needs. Practitioners expect GVTs to be creative, innovative, and high-performing. However, GVT members suffer from interpersonal problems, stress, and misunderstandings based on cultural differences. It is therefore important that the HRM function intervenes in the functioning of GVTs. HRM and GVT research has mostly focused on instrumental practices to improve performance, but globalization and the dynamic business environment require international organizations to adopt new HRM perspectives. To advance research on GVTs and HRM, we draw on the job demands-resources model and research on quality of work life to introduce an employee-focused HRM perspective for the management of GVTs. This new perspective focuses explicitly on improving employee wellbeing in GVTs. We develop a novel theoretical framework that provides HR practitioners and leaders with several employee-focused management tools such as flexible work practices, international training and development opportunities, and fair pay and procedures. These tools are likely to help GVT members to cope with job demands and to improve their wellbeing, and are particularly useful for GVTs due to their interpersonal problems, stressful environment, and cultural differences.     

Actions speak louder than words: how employees mind the implementation gap

Abstract

Integral to employees’ working lives are the HR policies and more importantly, the practices that follow those and their implementation, which employees experience directly. To date, research on HR implementation considers how HRM is ‘done to’ employees by management and therefore ignores the agency of individuals to shape how HRM is ‘done to them’. Taking the perspective of employees, in a qualitative study of female lawyers, this paper examines employees’ roles in shaping HR implementation, addressing a lack of understanding about the role of ‘others’ in the process. Drawing on the concept of social power, the article focuses on the implementation of agile working practices within UK-based law firms. It finds that despite lacking legitimate position power to influence processes, employees draw on a variety of other power sources (e.g. referent, information, coercive) and tactics (e.g. leveraging membership of professional networks) in order to influence their working environment with respect to HR policy and practice, particularly in response to perceived implementation gaps. The current study underlines that employees may be integral to bridging the gap between policy and practice and therefore to ensuring the link between HRM and organisational performance. It also proposes that behavioural responses to HR practices should be considered in future theorising of the HRM-performance relationship.     

Engaging workers in resource-poor environments: the case of social enterprise in Vietnam

Abstract

How do social enterprises acquire and retain employees in resource-poor environments? This paper presents findings from a study examining human resource management (HRM) practices in transitional economy social enterprises, where research on HRM remains underexplored. Drawing on social exchange theory and employing a multiple-case study design, we examine the ways in which four well-established social enterprises in Vietnam use high-involvement work practices (HIWPs) to acquire, retain and support the performance of workers. The findings suggest that HIWPs increase the social exchange value of social enterprise employment but raise questions about business sustainability. We identify evidence of a unique bundle of HIWPs, which comprise four dimensions of the original model: information, knowledge, power, and rewards, and one new dimension, namely family-building practices.     

Contextualizing performance appraisal practices in Chinese public sector organizations: the importance of context and areas for future study

Abstract

Public sector organizations (PSOs) continue to undergo pressures for change due to economic globalization and the changing role of the state, resulting in increased focus on performance management, particularly employee performance appraisal. New public management’s emphasis on transparency, accountability, efficiency and performance highlights the multiple and often conflicting roles and performance outcomes of PSOs, the social and economic contexts in which PSOs operate, and the multiple ways they measure and manage performance. Responding to this special issue and calls for a richer understanding of performance management in PSOs we examine the impact of context on performance appraisal in Chinese PSOs. As China continues its transitions to a market-driven economy, Chinese PSOs have engaged in managerial reforms to improve governance, efficiency and productivity, including the strategic implementation of western-based HRM practices to manage employee performance. Our analysis demonstrates the challenges context poses for analysing HRM practices in Chinese PSOs.     

Characterising human resources management practices in Portugal: an empirical analysis

The importance of human resources as a fundamental channel towards the competitiveness and sustainability of firms is now theoretically unchallenged. This article provides an overall characterisation of the main human resources management (HRM) practices implemented in Portugal and compares them with the benchmark models proposed in the literature.

To evaluate the degree to which HRM practices diverge from these benchmark models, this article relies on the analysis of five criteria: i) How do the main HRM practices fit the existing management models (familiar, professional or mixed); ii) How does the HRM conform to a work organisation of the matricial type; iii) To identify whether the role of HRM is essentially administrative or strategic; iv) To identify where the responsibility for HRM lies within the firms operating in Portugal; and v) To characterise the relation between HRM and work organisation in Portugal.

Drawing on a representative sample of firms operating in Portugal, we identify three clusters that allow us to characterise and analyse the stylised HRM practices implemented in Portugal (network-based, familiar-based or bureaucratised). Results show contrasting management patterns, which can be interpreted as different stages of evolution in terms of HRM practices in Portugal.     

Effects of HRM practices,lean production practices and lean duration on performance

Abstract

The purpose of this research is to investigate the structural relationships between HRM practices, lean production practices, operational performance and firm performance of manufacturing firms that have implemented lean production. The data were collected from the firms operating in Sri Lanka, which fulfilled the selection criteria set for the study. Statistical techniques were used to test the hypothesized relationships. It was found that lean production practices and operational performance mediate the relationship between HRM practices and firm performance; lean duration moderates the relationship between HRM practices and lean production practices in such a way that the longer the duration, the greater would be the adoption of lean production practices. The essential contribution of the findings lie in presenting empirical data valuable for the advancement of research in HRM as well as for making decisions on people management when implementing advanced manufacturing technologies.     

Disability status,individual variable pay,and pay satisfaction: Does relational and institutional trust make a difference?

Although prior research suggests that disabled employees have different needs in the context of some HRM practices, we know little about their reactions to reward systems. We address this gap in the literature by testing a model using the 2011 British Workplace Employee Relations Survey (disabled employees, n = 1,251; nondisabled employees, n = 9,959; workplaces, n = 1,806) and find that disabled employees report lower levels of pay satisfaction than nondisabled employees, and when compensated based on individual performance, the difference in pay satisfaction is larger. We suggest that relational (derived from trust in management) and institutional (derived from firm‐wide policies and HRM practices, both intended to provide equitable treatment to disabled employees) forms of trust play important roles. The results of multilevel analyses show that when trust in management is high, the difference in pay satisfaction under variable pay is reduced. We find just the opposite for employees who work in organizations with a formal disability policy but without supportive HRM practices; the gap in pay satisfaction is exacerbated. However, the combination of the presence of a firm‐wide policy and HRM practices reduced the difference in pay satisfaction. Implications of the findings for theory, future research, and management practice are discussed.     

The dynamic nature of HRM implementation: a structuration perspective

Abstract

Over the past decades, scholars have dedicated substantial attention to the process of HRM implementation. Most progress has been made with debates on HRM system strength, roles of organisational actors in HRM implementation, and intended, actual and perceived HRM. In this paper, we challenge the current view on HRM implementation as being too static and one-directional. By building on structuration theory, we show that the process of HRM implementation is less straightforward than has been previously assumed. After their initial introduction, HRM practices evolve through turbulent developments. Furthermore, instead of neatly distributed roles following meticulously scheduled planning, HRM practices are influenced by various organisational actors. For successful implementation, HRM practices need to become inscribed into the interpretive schemes of organisational actors, resources have to be distributed, the HRM practice has to gain legitimacy. We develop a comprehensive framework that assists in understanding the process of HRM implementation.     

The organizational choice of human resource management practices: a study of Chinese enterprises in three cities in the PRC

This study examined the effects of an organization's contextual variables on the choice of human resource management (HRM) practices to secure, nurture, reward and retain managerial employees. The contextual variables included organizational characteristics (ownership, age and size), on the one hand, and its competitive strategies (innovation, quality and cost) and the strategic role of the human resource function, on the other. Data were collected through a questionnaire survey of general managers and human resource directors from 326 joint ventures and state-owned enterprises located in Shanghai, Nanjing and Guangzhou, three major cities in China. Using structural equation analysis, we examined both the direct and indirect effects of the contextual variables on HRM practices. The indirect effects were measured through the strategic role of the human resource function. Results indicated that ownership and the strategic role of the human resource function were key variables in explaining an organization's choice of HRM practices. Age and size of the organization had limited effects. Compared with cost and quality strategies, the innovation strategy affected HRM practices, both directly and indirectly, indicating the increasing dynamism of the Chinese economy in its move towards a market orientation.     

Human Resource Management Practices and Trust in Public Organizations

Abstract

Trust has been acknowledged as a valuable managerial resource within organizations. Working as a lubricant of organizational functioning, trust reduces opportunistic behaviours while it increases voluntary compliance to organizational norms and rules as well as enhancing individual and organizational performance. Considering the importance of trust, it is worthwhile to explore what factors may help build trust within organizations. This research investigates whether perceptions of several human resource management (HRM) practices are associated with trust in government organizations. According to social exchange theory, HRM practices signal management's commitment to employees which in turn leads to greater trust in the organization. Using data from an employee survey conducted for the Georgia Department of Transportation in 2007, this research tests how employee perceptions of HRM practices are related to trust in three distinct levels of management in a large department of state government: trust in department leadership, trust in one's leadership team, and trust in one's supervisor. Binary logit analyses suggest that perceptions of HRM practices focusing on autonomy, compensation, communication, performance appraisal, and career development are associated with trust in public organizations. According to the result, those practices present variation in their leverage on trust in leadership at different levels.     

HRM implementation by multiple HRM actors: a social exchange perspective

Abstract

In this study, we understand HRM implementation as a social process that depends on the social exchange relationships between line managers and both HRM professionals and employees. As such, we offer a fresh approach to understanding HRM implementation by concentrating on the social exchange among HRM actors. We do so by investigating to what extent these exchange relationships influence HRM implementation, as reflected in employees’ perceptions of the presence of HRM practices and their affective commitment. We collected multilevel data from two sources (line managers and employees) and in two phases in a Dutch engineering firm, and obtained fully matched manager – employee information from 75 employees and 20 line managers. Our results show that employees perceive a larger number of HRM practices when they have a good relationship with their line managers and when their line managers are motivated to implement HRM practices. Line managers, in turn, reciprocate perceived support from the HRM department with greater motivation to implement these practices. We conclude that because HRM actors engage in social interactions, HRM practices will be implemented at the organizational level because employees perceive the presence of HRM practices and then reciprocate this with affective commitment.     

US HRM principles: cross-country comparisons and two case applications in India

This paper analyses the human resource management (HRM) systems of two fairly large, complex, technical organizations in India, embedded in specific external environments. The HRM practices of the two are compared with studies of practices in India and other developing countries. Further, the practices of the two organizations are compared utilizing a US HRM model. Findings are discussed with reference to relevant studies in India and the US. A complex view emerges from the analysis: (1) A mixed HRM model with US and Indian characteristics exists. (2) Differences in the two cases involve implementation and integration of HRM activities. (3) While hierarchy and paternalism are observed, adaptiveness and innovation are also evident. (4) Managerial characteristics and values (status, power, orientation) have an influential role. (5) Highlights among organizational characteristics are growth stage and professionals; and among external factors are management groups and their member interactions.     

The role of Vartan Bhanji in implementing HRM practices in Pakistan

The local adaptation of Western HR concepts in more traditional societies is an important topic for international HRM research and practice. We analyze the role of Vartan Bhanji, a traditional notion constituting and governing local social networks, when implementing such concepts in the Pakistani context. Based on a detailed case study of a privatized hospital, our analysis shows that Vartan Bhanji is both supporting and limiting Western HRM practices, in particular recruitment and selection, appraisal, compensation and promotion. The study reduces the knowledge gap for Pakistan, a country underrepresented in the international HRM discourse; illustrates the role of traditional social networks in companies using Western HRM concepts and supports calls for contextualizing HRM practices and research.     

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.     

Chinese multinationals’ approach to international human resource management: a longitudinal study

Abstract

This study explores how emerging market service firms, operating in developed markets, approach human resource management (HRM). Data analyzed in this article were drawn from a longitudinal case study of the Australian subsidiary of a Chinese multinational bank. We find that subsidiary HRM follows host country and global best practices. However, the way that this hybrid HRM system was implemented shows traces of Chinese origin. A key finding from this study is that although our case bank officially adopted a polycentric approach to subsidiary staffing, employing host country nationals, the subsidiary predominantly employed locals with a Chinese ethnic background. We also find the case bank’s strategy in international HRM has evolved from a focus on localization to global standardization. This global standardization, however, is shaped in line with global best practices rather than home country management model. These findings highlight the need for future studies to adopt a more nuanced approach to examining international HRM strategies, especially when analyzing host country effect or localization strategy.