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.     

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.     

Managing multidimensional knowledge assets: HR configurations in professional service firms

The purpose of this article is to illustrate empirically how HR practices are configured to manage multidimensional knowledge assets. It contributes directly to the configurational approaches to HRM by identifying HRM systems that are used to manage various types of knowledge assets. First, we develop a framework from theory to categorise knowledge assets into human (industry and firm specific), social (entrepreneurial and co‐operative) and organisational capital (mechanistic and organic). Within this framework, we draw on data gathered in the 12 professional services firms to understand how HR practices enable the management of each knowledge asset. We identify two configurations of HR practices (organisationally and professionally focused). These configurations do not exist in isolation but are used simultaneously by organisations via either a targeted (different practices in different parts of the organisation) or a temporally segregated way (different practices for the same group of employees over time).     

Evolution of the practices of human resource management in France towards a strategic model: rhetoric or reality?

This article analyses the evolution of the human resources management in France. The study attempts to understand the transformation of administrative practices of HRM towards strategic practices of HRM (SHRM) in the French context. It also shows the factors responsible for this change. The results of this study support the development in France of SHRM and the regression of administrative practices of HRM, although a third hybrid model of HRM seems to appear between both practices. This tendency towards SHRM is accentuated in large firms, quoted on the stock exchange, in services and finance sectors with international activities. This study confirms that the SHRM in France is reality rather than rhetoric.     

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.     

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.     

Internationalisation of Chinese banks and financial institutions and its implications for IHRM

Abstract

In this special issue (SI), we aim to advance the theoretical and empirical knowledge of emerging market service firms by analysing some of the key IHRM implications of the internationalisation of Chinese banks and financial institutions (BFIs). The selected articles in this SI provide rich insight into the human resource management (HRM) challenges these firms face when they establish operations in overseas markets and draws attention to trends and developments which challenge the way HRM has been understood in Chinese multinational enterprises (MNEs). The articles address the importance of Chinese BFIs relationship with the state and the influence of political ties in the formation of management leadership styles and managerial mindset. Included, as part of our contribution to this SI, is an analysis of a major Chinese bank’s subsidiary operation highlighting its human resources practices, adaptation strategies and relationship with its head office.     

An industrial relations perspective on the high-performance paradigm

Recent studies have suggested that various human resource management (HRM) practices are associated with enhanced economic performance in organizations. This research has led to what we call the high-performance paradigm, a belief that firms can improve performance by adopting certain high-performance work practices (HPWP). We apply an industrial relations (IR) perspective to the high-performance paradigm to extend the insights of HRM studies. After identifying how the perspective typically adopted in IR research differs from that used by HRM researchers, we briefly review the literature on HPWPs, identify limitations in the existing research approach, and suggest issues and areas for future research. In general, we suggest that research on HPWPs has made a valuable contribution to the literature. We urge HRM researchers, however, to devote more attention to underlying conflicts at work, focus more explicitly on the implications of new forms of work for workers, and pay greater attention to the role that cultural forces, unions, and governments play in shaping the workplace.     

The labour relations heritage and lean manufacturing at Fiat

The objective of the paper is interpreting, from an evolutionary perspective, recent developments of work organization and human resource management policies at Fiat Auto, one of the world's largest automobile manufacturers, which achieved a successful restructuring in the early 1990s. Building on a heritage of adversarial labour relations and ‘mass production’ organizational principles, Fiat developed an original and to some extent hybrid version of ‘lean’ human resource management practices (teamwork, flexible compensation, multi-skilling, etc.).

The paper analyses this process of organizational change from an evolutionary perspective based on the concept of dynamic capabilities. From this standpoint, IR. HRM and work organization practices are the result of a learning process, based on original development, imitation, analogical replication, combination and selection of organizational capabilities; organizational capabilities have a cumulative and path-dependent nature; workplace innovations are also rooted in organizational absorptive capacities, that is, the ability of firms to exploit new (and often extramural) organizational and HRM developments; the existence of complementarities among organizational competencies, assets and choices in term of HRM are likely to push toward the adoption of a set or system of (rather than single and insulated) innovations in work organization, HRM practices and industrial relations policies.

The data provided in the paper show that the process of innovation of workplace practices at Fiat Auto (summarized by the concept of the Fabbrica Integrata) is curiously non-linear. The newly designed HRM policies have, on the one hand, been resisted by the unions (who have not been involved in the design process) and by segments of the work-force; on the other hand, they have been hindered by existing organizational features and personnel practices which, in turn, were key success factors during the 1980s. This inertia is significantly lower at the new greenfield plant of Melfi. On the whole, the restructuring process was successful from the competitive and financial standpoint, and represents the basis on which management and the unions can develop a new co-operative model of industrial relations.     

Determinants of sales manager job satisfaction. An analysis of Spanish industrial firms

The objective of the current work is to analyse the determining factors of sales manager job satisfaction. In particular, we study the effect of various human resources management (HRM) practices – compensation, promotion, training and job design – on this satisfaction, using a model empirically tested on a sample of Spanish industrial firms. The results of the empirical analysis of the model, which uses data from a postal survey, indicate that human resources practices based on compensation – level and type – as well as on the job design – resources and autonomy – appear to be the fundamental determinants of sales manager job satisfaction. In the research we confirm that there is a growing need for firms to combine economic and non-economic incentives in order to satisfy their executives.     

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.     

Looking beyond HRM practices in enhancing employee retention in BPOs: focus on employee–organisation value fit

This paper argues that the effectiveness of HRM practices in tackling employee retention can be enhanced by improving the compatibility between employee and organisational values. We test our hypothesis using structural equation modelling on a sample of 258 employees in business process outsourcing (BPO) firms in the Philippines. The results show that the fit between employee and organisation values positively and partially mediates the effects of HRM practices on employee retention. However, employee–organisation value clash in US-owned BPOs was found to have a negative effect on employee retention. Because employees are less likely to leave when they share similar values as their organisations, HRM practices can be used strategically to improve the employee–organisation value fit to improve retention. The implications of the findings for HR managers of BPOs in developing countries are fully discussed.     

A comparative study of performance appraisals,incentives and rewards practices in domestic and multinational enterprises in the country of Brunei Darussalam

Very little work in the past has focused on the comparative analysis of human resource management (HRM) practices between domestic and multinational enterprises (MNEs). The majority of the work in this area has instead concentrated on comparing the HRM practices utilised by the subsidiaries of MNEs, and has mostly been conducted in the context of developed countries. In this paper, we examine how the HR practices of appraisals, rewards and incentives are offered, explained and monitored in domestic enterprises (DEs) versus MNEs, and how they are similar or different in nature. This paper is based on primary data collected from a cross-section of firms operating in the country of Brunei Darussalam – a context within which no previous work of this nature has been undertaken. An analysis reveals several interesting results: HR practices are more advanced and better structured in MNEs that conduct performance appraisals (PA) more frequently than DEs, and their feedback system is also rapid; incentives and rewards systems in MNEs follow market ethos and principles; the HR directors and employees of MNEs are more receptive to PA than those in DEs whilst, in contrast to DEs, incentives and rewards systems in MNEs follow market ethos and principles. Furthermore, with regard to size, younger firms are more likely to be following market principles in terms of explaining incentives and rewards systems to their employees, whilst older firms claim that working for them carries social and psychological benefits for employees.     

Mind the Intended‐Implemented Gap: Understanding Employees’ Perceptions of HRM

This study aims to shed light on the implementation of HR practices as a key piece of the human resource management (HRM)–performance puzzle. Although the literature suggests that discrepancies between the organization's intended and implemented HR practices are essential to understanding employees’ perceptions of and reactions to HRM, little attention has been devoted to this issue. Drawing upon a multiple‐case study of German health and social services organizations, we therefore explore the linkages (and potential gaps) between intended, implemented, and perceived HR practices. Our study provides new insights into the underlying mechanisms of this relationship, highlighting an organization's ability to leverage its resources as playing a crucial moderating role in implementing intended HR practices, while employees’ expectations of HRM moderate the link between implemented and perceived HR practices. We advance a set of propositions that contributes to a more nuanced, multilevel understanding of the complex phenomenon of HRM implementation. © 2014 Wiley Periodicals, Inc.     

Study on human resource management in Korea's chaebol enterprise: a case study of Samsung Electronics

Korean chaebol firms have taken advantage of the owner–management system and to date are still enjoying its strength. I discuss the characteristics of human resources management (HRM) systems in the context of Samsung Electronics, Korea's largest chaebol following the Asian crisis of 1997, explaining why the SEC HRM system should be changed and what recent changes have been made, as perceived by both respondents and HR manager interviewees. The study of SEC HRM practices can provide real value to Western companies because it incorporates firm-specific advantages such as network strength, emperor-like power over group-wide management, and an agile decision-making process.     

Sustainable HRM strategies and employment relationships as drivers of the triple bottom line

This paper aims to develop a conceptual framework capable of analysing the contributions made by strategic human resources management (SHRM) to firm sustainability and competitiveness. Specifically, we identify different sustainable corporate strategies and the way in which they are supported by coherent sustainable HRM strategies. We propose different sustainable employment relationships considering two dimensions: inducements offered by an organisation and expected employee behaviours in order to comply with sustainable HRM strategies. All the above also necessitates a system of HRM practices (content of the employment relationship) that should be well defined and oriented towards sustainability. Accordingly, we suggest associations of specific systems of HRM practices, depending on the type of employment relationship and sustainable HRM strategy, in order to promote the expected ‘Triple Bottom Line’, and which also improve firm competitiveness.     

HRM practices for human and social capital development: effects on innovation capabilities

This paper analyzes the effect of systems of human resource management (HRM) practices on a company's innovation capabilities. To date, few studies have analyzed the way a firm may be more innovative by using specific sets of high-performance HRM practices from an intellectual capital-based view of the firm. From an extensive literature review, a model was established and tested through structural equation modelling, using the statistical technique of partial least squares. The study was applied to a sample of technological firms in Spain and the results show that high-profile personal HRM practices positively influence human capital while collaborative HRM practices influence social capital, which, in turn, affect innovation capabilities by means of, respectively, total and partial mediating effects. Managerial and HRM implications of these results are drawn by the authors, highlighting the idea of paying increased attention to managing firms with a focus on strategic intangible assets in order to gain competitive advantages based on innovation.     

The role of HRM and social capital configuration for knowledge sharing in post-M&A integration: a framework for future empirical investigation

The literature on human resource management (HRM) indicates that HRM plays an important role in merger and acquisition (M&A) integration success, but pays little attention to the mechanisms for knowledge sharing in post-M&A integration. Limited work has been carried out to provide understanding on how social capital and HRM practices influence intra-organizational knowledge sharing in M&A integration. This paper primarily focuses on the phenomenon of social capital and HRM practices – one of the primary means by which knowledge sharing can occur within firms. The main aim of this paper is to provide an alternative framework that introduces the literature on HRM and social capital to discuss how HRM practices and the various dimensions of social capital may enhance knowledge sharing in post-M&A integration. Drawing on the literature on social capital and HRM, we offer an alternative view on the issue of knowledge sharing in M&A integration by explaining how specific HRM practices that have an impact on employees’ knowledge, skills and abilities for participating in knowledge sharing activities may depend on relational, cognitive and structural social capital. We isolate a number of HRM practices and social capital variables that may enhance knowledge sharing in post-M&A integration, and develop a research model and propositions for future empirical investigation.     

Forming a firm innovation strategy through commitment-based human resource management

In this paper, we argue that commitment-based human resource management (CHRM) enables firms to form an innovation strategy, enriching the literature focused on the subordinate role of HRM in a given strategy. In CHRM, employees are hired based on their knowledge, their expertise is developed, and they are empowered to take reasonable risks in the interest of long-term outcomes. These HRM policies, which mediated by innovative work practices, enable firms to realize their strategic intention to engage in innovation. Analyses of time-lagged data from 445 firms support our hypotheses, and implications are discussed.     

The interactions between person–organization fit and leadership styles in Asian firms,an empirical testing

This paper presents a study that examines the use of human resource management (HRM) practices and factors influencing the adoption of HRM practices in small and medium-sized enterprises (SMEs). Using a multiple-case study method, HRM in SMEs was explored by comparing 12 small and medium-sized and 12 large semiconductor design firms. The findings show that there is considerable homogeneity across the firms in relation to their use of human resources (HR) practices providing support for the insights based on the new institutionalism. The factors leading to the homogeneity HRM are discussed. It is argued that theory-based empirical research on HRM in SMEs within the same industry enable us move towards a systematic understanding and explanation of HRM in SMEs.