An exploration of the HRM values of Chinese managers working in Western multinational enterprises in China: implications for HR practice

This paper qualitatively explores the nature of human resource management (HRM) values of local Chinese managers working in Western-based multinational enterprises in China and also considers how these values are associated with preferences for HR practices. The study involves the use of repertory grid interviews with 36 local Chinese managers. The study shows that interviewees reflected a high level of assimilation and internalization of many Western HRM values. Interviewees also retained many traditional Chinese values, thus highlighting the role of institutional and cultural forces on HRM. However, among these local managers, there was clear decline in some traditional Chinese values, such as ‘harmony’ and ‘virtue’. A further interesting finding was the co-existence of paradoxical values of collectivism and individualism among the managers. Analyses of repertory grid data and interview comments also highlight that preferences for HR practices is associated with these underlying HRM values.     

Theoretical implications from the case of performance-based human resource management practices in Japan: management fashion,institutionalization and strategic human resource management perspectives

In Japan, a new type of human resource management (HRM) practices called ‘performance-based HRM practices’ (seika-shugi in Japanese) emerged in the 1990s, and has been adopted by many Japanese firms. In this paper, I illustrate how these type of practices emerged as a management fashion, diffused across a large number of Japanese firms, and became institutionalized in the Japanese business context; and discuss the relationship between performance-based HRM practices and firm performance. This illustration is used to develop a theoretical framework to better understand the relationship between HRM practices and firm performance by integrating theories of management fashions, institutionalization and strategic HRM. Suggestions for future research are also discussed.     

How Japanese manufacturing firms align their human resource policies with business strategies: testing a contingency performance prediction in a Japanese context

This study examines the interaction effects of business-level strategy and HRM policies upon performance among Japanese manufacturers, in response to the current debate around the contingency fit proposition in the field of strategic human resource management (SHRM). Specifically, it was hypothesized that the three generic strategic types (cost reduction, differentiation (innovation), and quality enhancement) would moderate the relationship between particular HRM policies and the performance of Japanese manufacturing firms. The results, based on a sample of 312 Japanese manufacturers operating in the domestic environment, reveal the existence of links between appropriate strategy and HRM policies in predicting performance, providing strong support for the proposition of contingency fit from SHRM theory. The findings are used to discuss how Japanese manufacturers can align their HRM policies with business strategies to increase manufacturing performance. Limitations of the study and directions for future research are also considered.     

Status inconsistency: an antecedent to bullying behaviour in groups

This paper draws on frameworks developed by the strategic international human resource management (HRM) literature to analyse human resource practices in foreign-invested enterprises in China and their affiliates. It argues that such strategies can be best understood in the context of global commodity chains. Drawing on data from a study of 27 China-based enterprises in two industries, garments and consumer electronics, it contests that strategy is a good determinant of HRM policies. Moreover, most of the enterprises are following cost reduction strategies but with certain quality levels, based on standardized mature products and production processes. Industry sector is also important, as is the institutional milieu of China.     

The relationship between human resource management practices,business strategy and firm performance: evidence from steel industry in Taiwan

The primary objective of this study is to investigate the relationship between human resource management (HRM) practices, business strategy and firm performance. We examined the following HRM practices: training and development; teamwork; compensation/incentives; HR planning; performance appraisal; and employment security. We surveyed 236 managers working at steel firms in Taiwan to explore their perceptions on the impact of HRM practices and business strategy on firm performance. The results of this study are summarized as follows: (1) HRM practices will be positively related to firm performance; (2) there is a close linkage between HRM practices and business strategy; (3) business strategies will be positively related to firm performance; (4) integrating HRM practices with business strategies will be positively related to firm performance.     

A problematic transition to a strategic role: human resource management in industrial enterprises in China

The Chinese government has launched extensive reforms to encourage integration with the global economy. Our research investigates the implications for human resource management practices of the changing business environment in China, ownership of organizations, organizational strategies and strategic integration of the HR function. We conducted two surveys in major Chinese cities in 1994/5 and 2001/2, with managers of state-owned, privately owned, collectively owned and foreign-invested enterprises.

Regression analyses showed that organizational strategy and organizational ownership, in contrast with earlier research, were not found to be strong predictors of HRM practices. The changing business environment in China and participation by the HR function in strategic decision-making were the strongest predictors of HRM practices. Overall, a strategic role for the HR function and implementation of ‘Western’ HRM practices are becoming more prevalent in China, although the legacy of traditional practices endures and new challenges are emerging.     

Quality and cost? The evolution of Walmart's business strategy and human resource policies and practices in China and their impact (1996–2017)

This study responds to calls for more in‐depth and qualitative studies, the return to a focus on external factors, and the inclusion of business strategy and industrial relations in human resource management (HRM) research, as well as more research in the retail sector in the Chinese context. We examine the coevolution of the business strategy and HR strategy of Walmart (China) in the last two decades and identify tensions in the context of intensifying competition in the Chinese retail market. We highlight the interactive effect of business and HR strategies through a historical lens. Our study reveals a shift from the original employee‐oriented win–win strategy through rent sharing between the firm and the employees to a win–lose strategy through the introduction of more cost conscious HR policies and practices. Findings of our study challenge the conventional wisdom that firms adopt either the cost or quality strategy and, along with it, the suggestion of matching the quality strategy with employee‐oriented HR policies and practices, and cost leadership with a transactional approach to HRM. We argue a cost and quality business strategy may be adopted, which requires the support of employee‐oriented, rather than cost‐oriented, HR policies and practices.     

Transferring the Toyota lean cultural paradigm into India: implications for human resource management

This paper argues that the successful international transference of Japanese lean manufacturing practices in general, and the Toyota Way and Toyota Production System (TPS) in particular, is in varying degrees contingent upon the sociocultural, historical and environmental context of the host nations into which such transfer occurs. This has significant implications for human resource management policies and practices. The paper contends that lean manufacturing is not simply a set of concepts, techniques and methods that can be implemented by command and control. In the course of transferring lean practices from Japan into overseas affiliates, either an absence of due consideration or disregard for a host nation's unique sociocultural and environmental factors could lead to unproductive organisational outcomes for the parent company. This viewpoint is examined through a case study analysis of the Indian affiliate of the Japanese automobile industry giant Toyota Motor Corporation, namely Toyota Kirloskar Motors, located at Bidadi, near Bangalore, India.     

Human resource management – a national business system perspective

Abstract

Although a sizeable body of academic literature has attempted to explain the role of national business systems in the context of human resource management (HRM), there is still little research on the extent to which institutional features explain patterns of HRM in the emerging economy of Dubai. Different institutional settings tend to generate their own organisational arrangements to manage their employees, and it is important to understand how this interplay works. From an economic perspective, Dubai is important, mainly due to its promising diversification of its economy and its political stability. From a national business system perspective, the institutional environment represents a peculiar case, because it differs from many other emerging markets with respect to the strong co-ordinating role of the state, the strong segmentation and specialisation of tasks, roles, skills and authority, especially between nationals and expatriates, and a unique employment system. Thirty-two in-depth interviews with HR managers, and extensive document reviews, reveal that these elements of the institutional environment are related strongly to specific patterns of HRM practices, including distinctive policies for national employees and expatriates. The insights generated in this study explain the particularities of HRM in Dubai from a national business system perspective.     

An integrative framework for understanding cross-national human resource management practices

Currently, debate in the area of cross-national human resource management (HRM) suggests that both “culture-bound” and “culture-free” factors and variables are important determinants of HRM policies and practices. HRM is presented as being context-specific and it is argued that with the growth of new markets world-wide, and increased levels of competition and globalization of business, there is a strong need for more cross-national HRM studies. However, the literature shows the absence of an integrated framework, which can help to highlight the different role that context-specific facets of HRM practices play. The nature of different determinants in different national and regional settings is rarely analyzed. This paper develops an integrated framework. It delineates the main distinctive facets associated with national factors, contingent variables, and organizational and human resource (HR) strategies and policies, that may be used to evaluate cross-national comparative HRM policies and practices.     

The management of labour in Japanese manufacturing plants in China

While there is now considerable scholarship concerning Japanese management practices in their overseas production operations in Europe and North America, little is known about Japanese investment in other parts of the world, especially in Asia. This paper draws on on-going research into the nature and operations of Japanese manufacturing investments in China. The paper focuses on interviews primarily with Chinese managers in twenty plants in three locations within China, to examine their personnel polices and practices, and draw from this their overall industrial relations strategies. The main findings were, first, that, despite claims of cultural similarity between China and Japan, personnel management practices were generally not transferred from Japan to the plants in China. Second, practices that may appear as Japanese inspired were often informed by local practices. Third, there was diversity in the forms of practices used, indicating neither sophistication nor a singular recipe of management methods. Thus, the paper seeks to challenge proponents of Japanization who claim, essentially, that Japanese management techniques are predicated on the construction of particular forms of social relations around work that allow sophisticated, and integrated, production-management systems to function. Instead, depending on a complex interrelation between location industry and the history of each plant, managers sought to use various local and 'universal' (generic to capitalism) strategies and practices to control and utilize labour.     

Exploring the reality of educated middle managers' capability and involvement in human resource management in China

Since the recent global financial crisis, human resource management (HRM) policies may be seen more than ever as one of the cornerstones for building an appropriate organizational culture to better promote effort and cooperation between human resource (HR) managers and other middle line-managers. This article is designed to explore the reality of educated middle managers' capability and involvement in HRM in China, given that the concepts of HR roles in general and middle managers in particular are relatively new there. By analysing the results from more than 300 middle managers who had been educated at MBA programmes in different parts of China, our findings, we argue, have important implications for both the HRM literature and management practice in emerging economies.     

Nationality background of MNC affiliates' top management and affiliate performance in Japan: knowledge-based and upper echelons perspectives

Drawing from the knowledge-based view of multinational corporations (MNCs) and the upper echelons perspective along with the theory of job demands, we examine the relationship between nationality background of MNC affiliates' top management (i.e. expatriates or host country nationals) and affiliate performance. Using a sample of 643 foreign MNC affiliates from 31 countries operating in Japan, we found that when the length of an affiliate operation was shorter, the affiliate performed better under the expatriate managing director rather than the Japanese managing director. We also found that when the size of an affiliate was larger and the length of operation was shorter, the affiliate performed better under the larger rather than smaller proportion of expatriates in the top management team. Implications for research and practice on top management staffing of MNC foreign affiliates are discussed.     

Examining the link between skill shortages,training composition and productivity levels in the construction industry: evidence from Northern Ireland1

One of the key questions in international research addresses the tensions arising from international co-ordination and local adaptation of multinational companies' (MNCs) policies and practices. The German business system encourages MNCs to have a long-term, high-investment orientation, to practise intensive management-labour cooperation and to pursue developmental human resource management (HRM). This study analyses six major German MNCs operating in both Britain and Spain and outlines their reasons for the international co-ordination of HRM. It addresses the issue of central control versus local adaptation by looking at the transfer of German HR policies and practices. The cases show that the MNCs were able to preserve substantial ‘German-ness’ abroad. However, the results of the transfer of German HRM were not always positive due to a variety of endogenous and exogenous causes. Barriers to transfer from institutionally strong to weak environments are discussed and possible internal HR approaches are suggested to counterbalance the national business system effect. Their success will depend on head office-foreign affiliate relations shaped by factors such as cross-border communication, trust and power distribution.     

Using theory on authentic leadership to build a strong human resource management system

Prior work has questioned whether human resource management (HRM) lives up to the organizational benefits it espouses. The intentions underlying human resource (HR) practices often differ from how they are implemented by line managers or how they are ultimately perceived by followers, thus undermining the strength of the HR system in influencing organizational outcomes and with them the overall reputation of HRM. We argue that line managers, specifically those who display authentic leadership behaviors, can strengthen an HR system (i.e., aligning intended, actual, and perceived HR policies and practices) by implementing HR practices in a way that they are perceived as distinct, consistent, and reflecting consensus. Authentic leadership theory departs from more traditional, top-down fit perspectives in strategic HRM to consider the dynamic way in which individuals within an organizational context co-create felt and perceived authenticity in interaction with others. In other words, by providing a more dynamic approach to creating alignment in HRM, authentic leadership helps HRM attain more authenticity and credibility in the organization.     

Cross-national learning from best practice and the convergence-divergence debate in HRM

The chief objective of this paper is to develop suggestions as to how to learn from best practices in HRM across national borders. The analysis is based on survey data gathered from 232 HRM managers from American, Japanese and German top 500 companies. The managers provide information on how the HRM model of their respective country is characterized and from which of the other two country models they seek inspiration. The concrete attributes of the models considered worth adopting are described in detail and future developments with regards to convergence of the HRM models explored. The empirical data suggest that HR managers from all three countries expect a partial convergence towards a hybrid model. Curiously, the model that comes closest to this hybrid – the German one – is also the one that rates lowest as a source of inspiration. An argument is made that in order to better understand learning from best practice and resulting convergence tendencies, research should seek more insights regarding the knowledge of managers about foreign management models, their perceptions of these models, and how these perceptions are generated.     

Employee commitment in MNCs: Impacts of organizational culture,HRM and top management orientations

This article tests a model of organizational commitment in multinational corporations (MNCs). According to the model, organizational culture and human resource management (HRM) affect employee commitment directly as well as indirectly through top management team orientations. Szpecifically, we examined the effect of top management team global orientation and geocentric orientation, which are seen as contributing uniquely to employee commitment in MNCs. The model was tested on a sample of 1664 core employees working in 39 affiliates of 10 MNCs. We found strong overall support for the model. In particular, organizational culture characterized by high adaptability and a HRM system characterized by high performance work practices were found to have a significant and direct effect on employee commitment. In addition, we found that the effect of these traditional elements of the human organization is partially mediated through top management orientations, specific to international firms. The validity and generalizability of these results are reinforced by the control of a set of demographic variables as well as nationality of parent company.     

Human factors in the transfer of the ‘Japanese best practice’ manufacturing system to Singapore

A detailed examination of the practices reported by managers in thirty-one affiliates of Japanese companies engaged in manufacturing in Singapore revealed a high degree of conformity with the Japanese best practice (also known as ‘lean production’) model in the way work is organized and in the shop-floor level manufacturing practices, but greater conformity to host country norms in the HRM practices applied to the local work-force. This is consistent with the patterns reported in the existing literature regarding Japanese transplants in other countries, including the US and the UK. Strong statistical relationships were found in the Singapore study among the work organization cluster, the manufacturing practices cluster, and the performance outcomes. No significant relationships were found between the HRM cluster and any of the ‘downstream’ variables (work organization, manufacturing practices or performance outcomes), but relatively heavy reliance on expatriates was found to be highly related to work organization, manufacturing practices and performance outcomes. These findings suggest that heavy reliance on expatriates may function as an alternative to Japanese-style HRM practices in situations where it would be unduly difficult or costly to extend the whole package of Japanese-style HRM practices to the local work-force.     

Using human resource management to enhance competitiveness: Lessons from four excellent companies

Recent research has emphasized the strategic focus that human resource management must have in order for an organization to fully utilize its human resources in a competitive market. However, few empirical studies have been done to date regarding how human resource planning should be linked to strategy. An extensive in-depth study of four large, complex, and very successful companies supports the widespread belief that human resource management can be a powerful tool to enhance competitiveness when policies and practices are logically driven by a firm's strategy and by the key environmental factors it faces. This article describes that study and looks at how the areas of selection, appraisal, reward, and development are handled by these firms. Based on both the specific policies and the actual practices as perceived by middle managers (those that implement the policies), the article presents a contingency framework which offers guidelines as to how certain HRM practices should be implemented to gain competitive advantage.