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.     

HRM and organizational performance in northern and southern Europe

This article aims to extend understanding of the firm-level impact of strategic HR practices on organizational performance. Adopting a contingency approach, it develops a structural model that considers direct and indirect influences of market growth, business strategy formalization and HRM centrality and practices on organizational performance in Europe. The study uses a comparative approach, revealing differences between northern and southern Europe. Clear differences appeared between the two clusters in the HR policies and practices correlated with higher performance, thus indicating that the link between HRM and performance may be different in different geographies.     

Innovative human resource management and corporate performance in the context of economic liberalization in India

The Indian economy was forced to adopt a structural adjustment programme at the beginning of 1991. The structural adjustment programme or liberalization initiated the process of the opening up of an otherwise closed economy of India. Liberalization created a hyper-competitive environment and to respond to this turbulence, Indian organizations adopted innovative changes in their HRM practices. Current research shows that HRM practices are important for enhanced corporate performance but little has been reported on the effect of HRM practices and corporate performance in the context of economic liberalization of India. This study tries to understand the role of innovative HRM practices and specifically questions how HRM practices, such as the role of HR department, recruitment, retraining and redeployment, performance appraisal and compensation, enhance corporate performance during the change process. A multiple-respondent survey of 69 Indian organizations was undertaken to study the impact of innovative HRM practices on firm performance. The survey found that the innovative recruitment and compensation practices have a positive significant relationship with firm performance. It was observed that recruitment, the role of the HR department and compensation practices seem to be significantly changing within the Indian firms in the context of India's economic liberalization. The synergy between innovative HRM practices was not significant in enhancing corporate performance during the liberalization process.     

Hybridization: striking a balance between adoption and adaptation of human resource management practices in French multinational corporations and their Tunisian subsidiaries

International management research has tended to approach the transfer of human resource management (HRM) practices by examining the one-way transfer from parent companies to their subsidiaries, their adaptation to the subsidiaries’ local context and, more recently, the reverse transfer of HRM practices from subsidiaries to their headquarters. This article aims to analyse the transfer of HRM practices from headquarters to their foreign subsidiaries through the process of hybridization. Although numerous studies focus on the transfer of HRM practices between economically developed countries or from these countries to transitional economies, few have considered French multinational corporations (MNCs) operating in ex-colonized countries. This paper addresses the ways in which the HRM hybridization process is implemented in two French subsidiaries operating in Tunisia. It focuses on the dual perspectives of managerial staff at headquarters and subsidiaries as well as shop floor employees in the subsidiaries. A range of HRM practices (recruitment and selection, compensation, performance appraisal and career management) is analysed from their transfer to their reinterpretation. The results show the importance of the concept of hybridization on HRM practice transfer through a multi-level analysis of the strategies used by various stakeholders during the hybridization process. The paper also provides useful insights into the factors of hybridization that may foster or inhibit the transfer and adoption of HRM practices by foreign subsidiaries. These include the relational context, the type of practices transferred, the interests of different professional categories and their social interactions. Based on these factors, several hybridizations are identified. The study points out the specificity of the Tunisian context and shows that institutional factors have less influence on the transfer of HRM practices in ex-colonized countries than cultural factors that have a transversal influence on different HRM practices. Key cultural factors constraining the transfer include emotional relationships and interpersonal trust. Moreover, the international transfer of HRM practices from MNCs to ex-colonized transitional countries requires taking into account the post-colonialism and fascination effects.     

HRM professionals and their perceptions of HRM and firm performance in the Philippines

This paper reports the findings of a study conducted in the Philippines that examines the extent of adoption of human capital-enhancing human resource (HR) and industrial relations (IR) practices. Differences between locally owned and other organizations in these practices and their relationship to firm performance were also investigated. Questionnaire responses were obtained from managers and union representatives from 128 organizations located in the Philippines. The results indicated that there was, on average, a fairly high level of adoption of practices consistent with a strategic approach to human resource management (HRM), with foreign-owned firms tending to show a slightly higher level of adoption of such practices. A scale representing the adoption of a more conciliatory and union-friendly IR approach was found to be a significant predictor of perceived firm performance. Surprisingly, the level of strategic integration between HRM and business planning and most human capital-enhancing HR practices were not significant predictors of perceived firm performance. Research and practical implications in relation to the role of HRM in enhancing firm performance are discussed.     

Union partnership as a facilitator to HRM: improving implementation through oppositional engagement

Abstract

This paper provides a nuanced insight into the workplace level interactions between a union and HRM systems within a union-management partnership arrangement. Soft outcomes of HRM systems typically suffer from compromised implementation by managers struggling to balance competing operational priorities, but we show how a union limits this poor implementation. Qualitative and documentary data were retrieved from a major UK retailer and a trade union to examine how union activity interacts with HRM delivery. Firstly, union communication systems enhanced or replaced company systems of employee voice. Secondly, union activity policed management implementation of HRM practices to limit their subjugation to short-term productivity increases, improving outcomes for employees and the HRM system for the company. These outcomes were achieved through oppositional engagement within the context of partnership, which points towards a persisting and productive pluralism within the cooperative rhetoric.     

Environmental dynamism,human resource flexibility,and firm performance: analysis of a multi-level causal model

While strategic HRM scholars have conceptualized HR flexibility as an important source of sustainable superior firm performance in dynamic environments, the process through which HR flexibility creates value for the firm has not been empirically investigated. Based on a study of 98 manufacturing and 103 service firms from a wide array of industries in India, this paper attempts to illuminate the black box of causal linkages between environmental dynamism, flexibility of human assets, and firm level human-, operational-, and financial-outcomes by developing and testing a multi-level causal model. Evidence indicates that HR flexibility mediates the influence of environmental dynamism on firm performance and that irrespective of the nature of the industry and the degree of environmental turbulence, superior firm performance ensues when HR flexibility as actually possessed by the firm matches the environmental demands for such flexibility as perceived by the firm managers. The results also support the notion of HR value chain that postulates that HR system has direct impact on firm-level HR outcomes which are most proximal, and its effects on increasingly more distal operational- and financial-outcomes are mediated by HR outcomes. The findings of the study suggest that HR practices as a system have both direct and indirect (mediated by behavioral flexibility) effects on firm-level HR outcomes. Existence of significant direct effects signifies that HR practices play an important role as a structural mechanism in achieving superior firm performance.     

Human resource management practices and psychological contracts in Swiss firms: an employer perspective

This article investigates the relationship between HRM practices and organisational performance, considering the fulfilment of the psychological contract as an intermediate variable. Apart from testing the influences of a high-investment HRM system index on the psychological contract, the influence of individual HRM practices and their interaction was examined. The sample consisted of HR managers of 92 firms in Switzerland and the data were collected for the Cranfield Network project. The results showed that the high-investment HRM system index predicted the fulfilment of the psychological contract, and some of the individual HRM practices were correlated with the fulfilment of the psychological contract. The interaction effect of performance appraisal and performance-based pay on the fulfilment of the psychological contract showed that performance appraisal is only effective in combination with a tangible consequence in the form of performance-based pay. We neither found a mediation effect for the psychological contract nor an association with organisational performance. This might be due to the fact that the questionnaire was filled in during the financial crisis in 2008 and that the organisational performance was assessed in an economic crisis. Our study sheds light on the relationship between HRM practices and the psychological contract and contributes to the body of research on psychological contracts from a macro level perspective.     

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.     

Antecedents and consequences of dimensions of human resource management practices in Vietnam

The purpose of this study is to extend the empirical research concerning the impact of human resource management (HRM) practices on organizational effectiveness into the context of developing and transitional economy countries. From a survey of 137 cross-sector companies, it was discovered that there are five dimensions of HRM practices currently in use in Vietnam. Variation in the application of these dimensions can be partly traced to several organizational characteristics, but most salient is the perception of management on the value of human resources. In some dimensions, this variation constitutes a source of the difference in the perceptual company performance. These findings break new ground to propose a process for implementing HRM practices in Vietnam.     

Comparing and explaining HR department effectiveness assessments: evidence from line managers and trade union representatives

We compare and explain effectiveness assessments of two HR stakeholders: line managers and trade union representatives. We examine whether they have the same preferences regarding the roles the HR department has to fulfil (Ulrich 1997). Next, we test which strong HRM system characteristics (Bowen and Ostroff 2004) are decisive in determining the perceived effectiveness of the HR department in the preferential roles. With these analyses we examine whether the HR roles and strong HRM system characteristics are equally important to different stakeholders. Results show that the perceived effectiveness of the HR department in its operational roles is decisive in trade union representatives' general HR effectiveness assessment. For line managers, process-oriented roles are crucial. Next, if the HR department scores high on strong HRM system characteristics, it is perceived as more effective in its HR roles. Yet, the importance of specific HRM system characteristics depends on the role and stakeholder.     

Role of line managers in human resource management: empirical evidence from India

Of late, the line management role has been reorganized in business organizations and they are now increasingly taking up responsibility for core HRM functions. Line managers' role in HRM has been recognized in academic research but it is likely impact on the effectiveness of HRM that has remained relatively under researched, especially in India. The focus of the study was, thus, to empirically examine the relationship between dimensions of line managers' role in HRM and effectiveness of HRM in the Indian context. Primary data were obtained from HR managers of top-ranking companies through a single cross-sectional survey based on a research instrument designed by the researcher. The instrument was tested for unidimensionality, reliability and validity. SEM capabilities of LISREL 8.50 were utilized to test the conceptual research model based on the hypothesized relationships. The findings provided mixed support for the conceptual model. The present research has implications for both academicians and practitioners. The study is expected to serve as a guide in understanding the role of line managers vis-a-vis HRM, a largely unexplored area in the Indian context.     

Institutional duality and human resource management practice in foreign subsidiaries of multinationals

We examine how institutional context affects the decisions that subsidiaries of multinational corporations (MNCs) make in pursuing particular human resource management (HRM) practices in response to institutional duality. Drawing on Varieties of Capitalism, along with the concept of intermediate conformity, we argue that the use of particular HRM practices by MNC subsidiaries will differ depending on both the combination of home and host institutional contexts, and on the nature of the particular practice under consideration. Using data from a survey of HRM practices in 1196 firms across 10 countries, we compare HRM practices in subsidiaries located and headquartered in different combinations of liberal and/or coordinated market economies. Our study suggests MNC subsidiaries conform only to the most persuasive norms, while exercising their agency to take advantage of the opportunities presented by institutional duality to adopt practices that distinguish them from indigenous competitors.     

Configurations of human resource management practices: a model and test of internal fit

This study examined human resource management (HRM) configurations. A typology consisting of four bundles of aligned HRM practices (labelled the bureaucratic, market, professional and flexibility bundle) linked to organizational structures was developed. Support for the proposed ideal-typical bundles was found in an assessment by a panel of experts. Next, the distance between the ideal types and actual bundles of HR practices was assessed for 175 organizations. For each, senior HR managers' ratings of HRM practices and CEO ratings of outcomes were obtained. Support was found for two of the four proposed types and about one-third of the firms showed some fit with one of these two types. The ‘fit in general hypothesis’ (i.e. the closer an observed HR bundle resembles any of the ideal types, the higher organizational performance) did not receive support. However, fit with a specific type of bundle (the professional bundle) did relate positively to outcomes. Organizations with observed HRM practices fitting the professional bundle score significantly higher on measures of firm performance, employees' going beyond contract, and firm innovativeness.     

Business Strategy,HRM Practices and Organizational Performance: A Study of the Indian Software Industry

ABSTRACT

Human resources and human resources management system create competitive advantage in today's global market economy that provides wider access to technology, finance and other resources. HRM research has set a new trend with its linkage process with business strategy and organizational performance to find a place for the profession and add value to the organization. This paper intends to unveil the business strategic models, HRM practices and organizational performance in Indian software companies. The study has found that there is a significant difference among HR practices in software companies in India based on Miles and Snow's strategic types, viz., prospectors, defenders, analyzers and reactors. Although reactors showed their difference from other strategic types, no significant difference was found among three proactive strategic types, viz. prospector, defender and analyzer. With regard to performance analysis, it was found that prospectors have a comparative advantage over other strategic types in almost all performance parameters. Although incentives and stock options have a greater overall impact on performance parameters, there is a lot of difference among factors that influence organizational effectiveness in three proactive strategic types.     

Beating the advertising drum for the employer: How legal context translates into good HRM practice

The legal context is constitutive for the legitimacy of HRM practices. In this paper, we use an institutional work approach to investigate how a legal mandate requiring employers to state the minimum pay in job advertisements in Austria was translated into a legitimate HRM practice over time. In this process, HR practitioners translated the law into an HRM practice going well beyond the legal requirements. In contrast to merely constraining HRM practice, we find HR practitioners actively engaging with the legal context. In the discursive struggle over a legitimate translation of the law into practice, actors speaking ‘for HRM’ were mostly HRM consultants and service providers building on an individualist and unitarist frame of reference for employment relations. Our findings contribute to a contextualized understanding of HRM practices by considering the interaction of HR practitioners and legal context.     

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 multilevel examination of skills‐oriented human resource management and perceived skill utilization during recession: Implications for the well‐being of all workers

This article examines whether organizations can enhance employee well‐being by adopting human resource management (HRM) practices strategically targeted to improve skill development and deployment in a recessionary context. Employee skill utilization is proposed as the mediating mechanism between HRM practice and well‐being. The role of workplace skill composition is also examined as a boundary condition within which HRM differentially impacts employee outcomes. Using a nationally representative survey of UK workplaces (Workplace Employment Relations Survey 2011) and matched management and employee data, the analysis focused on organizations that had implemented some recessionary action following the 2008–2009 global financial and economic crisis. The findings show that human capital enhancing HRM and enriched job design positively influenced both job satisfaction and work‐related affective well‐being through increased employee skill utilization. Organizations with predominantly high‐skilled workforces were more likely to adopt these skills‐oriented HRM practices. Nevertheless, the effects of HRM on employee outcomes via skill utilization applied across organizations, regardless of workforce skill composition. The findings demonstrate employee skill utilization as a driver of HRM outcomes and the sustainability of “best practice” HRM arguments across all skill levels, even in the face of recession.     

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.     

Managing knowledge through human resource practices: empirical examination on the Spanish automotive industry

This paper considers the relationship between human resource management (HRM) and knowledge management (KM). Specifically, it examines how the human resource (HR) practices that are expected to impact on employees’ abilities, motivation, and opportunity to engage in KM, do so by enabling knowledge sharing, knowledge maintaining, and knowledge creation within organizations. HRM expected to impact employees’ abilities include training and development practices. HRM expected to impact on employees’ motivation include rewards and appraisal practices. HRM expected to impact on employees’ opportunities including providing the support of trusting collaborative relationships. Therefore, HR practices impacting employees’ abilities, motivation, and opportunities are expected to be positively related to knowledge sharing and maintaining within organizations. HR practices impacting employees’ abilities, motivation, and opportunity are expected to be positively related to knowledge creation through their effect on knowledge sharing within organizations. Our research methodology uses a questionnaire survey approach to collect data from firms belonging to the Spanish automotive industry. Results from a final sample of 64 Spanish automotive firms show that HR practices aimed at motivating and giving employees the opportunity to behave as expected significantly affect knowledge sharing and maintaining. Further, knowledge sharing and maintaining is shown to mediate the relationship between HR practices and knowledge creation. The paper ends with a conclusion, limitations and implications for future research.