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.     

Acculturation strategy and individual outcomes: Cultural diversity implications for human resource management

With the intensification of globalization, countries and the organizations within them have become increasingly multicultural. This presents an important challenge, and perhaps an opportunity, for human resource management (HRM) practitioners. Drawing on cognitive dissonance theory, we propose key outcomes associated with newcomers’ acculturation strategy. Our typology suggests that cultural identity salience (CIS) can explain varying levels of psychological well-being for individuals who assimilate or separate. Individuals who integrate or marginalize, however, will experience consistent levels of psychological well-being irrespective of CIS. Moreover, individuals who integrate, rather than assimilate, separate, or marginalize, will tend to develop the most diverse range of contacts and achieve the most favorable job search and employability outcomes. In light of this, HRM practices should be designed to encourage integration by fostering an environment that embraces diversity. We discuss theoretical and practical contributions and offer directions for future research.     

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.     

Collaborative-based HRM practices and open innovation: a conceptual review

Abstract

This conceptual paper analyses the role of collaborative-based HRM practices in supporting open innovation. There is already an extensive literature that investigates the impact of HRM practices on organizations’ innovation performance. As organizational boundaries become increasingly permeable and knowledge flows more freely, open innovation continues to receive close attention in management studies. However, relationships between HRM practices and open innovation have still not been examined. From a knowledge management perspective, we identify three kinds of barrier that may deter or impede open innovation. These relate to cognitive biases, concerns about transaction costs, and shortfalls in terms of organization capability. We also discuss the role of four types of collaboration-oriented HRM practices (i.e., teamwork-based recruitment, training in teamwork skills, team-based appraisals and rewards, and rotational job design) in reducing barriers to open innovation. Based on our analyses, we envisage future research directions about the role of collaborative-based HRM practices in supporting open innovation.     

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.     

Employee performance,well‐being,and differential effects of human resource management subdimensions: Mutual gains or conflicting outcomes?

The human resource management (HRM) literature supports the idea that coherent systems of HRM practices can induce attitudinal effects when perceived subjectively by employees. Recently, scholars have proposed that subdimensions of HRM systems exist and account for variance in outcomes. This study explores differential effects of three subdimensions of HRM systems (skill‐, motivation‐, and opportunity‐enhancing HRM practices) on employee innovative behaviours and well‐being. Our predictions are based on the mutual gains perspective, which specifies positive relationships between HRM practices and employee performance, and the conflicting outcomes perspective that links HRM practices to higher job demands and stress. Using data from the Finnish 2012 Practices of Working Life Survey, we find support for both the mutual gains and conflicting outcomes perspectives; however, we also show that the effects of the subsets of HRM practices are heterogeneous.     

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.     

R&D personnel and human resource management in multinational companies: between homogenization and differentiation

This paper discusses the impact of globalization processes on models of R&D personnel management in multinational companies operating in Europe. Existing literature focuses on the globalization of R&D activity, on the one hand, and on national systems of innovation, on the other. By contrast, there are few studies of the linkage between the globalization of R&D and its impact on HRM. Drawing on the practices of multinationals in four sectors (pharmaceuticals, chemicals, computer hardware and software), the paper examines whether the hold of national differences in the area of HRM has been significantly weakened in the face of new models of competitiveness and management in multinationals. It focuses on two dimensions: recruitment and mobility. The studies highlight two major trends. The ‘internationalization’ of R&D clearly has effects on HRM models but not as great as might be expected. HRM policies such as recruitment and pay systems continue to be nationally based, reflecting legal and institutional differences. At the same time, in conjunction with new forms of R&D organization such as projects, the standardization of HRM tools may be observed. But this is partial and affects only a limited number of tools, notably individual evaluation.     

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 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.     

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.     

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.     

Dynamic and customer-oriented workplaces: implications for HRM practice and research

Changes in competitive environments are resulting in changes to the nature of work. We present job structure changes and a heightened customer orientation as two primary examples of changes that necessitate adaptation of human resource management (HRM) practices. The level of success in light of these organizational changes will largely be determined by how effectively people are managed in the new organizational environments. HRM practices that adapt to the new organizational conditions can add tremendously to the business and be a key to long-term competitiveness. We examine the implications of these changes for HRM practice and research, with particular attention to psychological contracts, job analysis, selection, and performance appraisal. The thrust of the article is to identify and describe research directions that have the potential for contributing to the future relevance and success of HRM.     

Building flexibility into multi-national human resource strategy: a study of four South African multi-national enterprises

The study describes four approaches for configuring corporate HR strategy by firms from an emerging market when dealing with the integration-differentiation dilemma. Most research on strategic international HRM is on the perspective of the affiliate or discusses the degree of isomorphism between the HRM practices of the parent and affiliate. The authors apply a cross-case analysis of the cases of Nando's International, MTN International, Sasol and SABMiller, focus on the implementation of corporate HR strategies from the parent's perspective and show that MNEs differ in the scope and level of abstraction of their corporate HR strategies. It is further suggested that this is primarily due to differences in business model, the need to accommodate national culture, the type and role of organizational culture in the MNE, which impact on the level of convergence of HR management practices. In all of the cases, there is a large degree of variance in these factors.     

The management of professional employees: linking progressive HRM practices,cognitive orientations and organizational citizenship behavior

Abstract

The present research examines the relationships between progressive HRM practices and the organizational citizenship behaviors (OCB) of professional employees. Drawing on recent HRM literature, our research model includes a perceived organizational support (POS)-commitment mediation hypothesis. Taking into account previous studies on professional employees, a job satisfaction-commitment pathway is also integrated. We tested both mediational pathways as part of a single structural equation model using a sample of 329 professional employees. Our results show that the relationship between recognition and OCB is mediated by the POS-commitment pathway, while the relationships between fairness of rewards, skills development and OCB are mediated by the job satisfaction-commitment pathway. The specificities of the HRM of professional employees related to their multiple cognitive orientations are discussed.     

Framing the field of international human resource management research

This article presents an overarching framework of the international human resource management field. The framework has four different levels: Macro (encompassing countries, regions and industries), the Multinational Corporation, Unit (typically subsidiary) and Individual (including teams, employees and their family members). At each level, we make a distinction between Influencing Factors, the HRM Function (encompassing both the HR department and HR policies and practices), Proximal Outcomes and Distant Outcomes of HRM. The framework allows us to examine existing research and suggest avenues for future work.     

Talent management and the HR function in cross-cultural mergers and acquisitions: The role and impact of bi-cultural identity

This paper examines bi-cultural talent in relation to human resource management (HRM) practices in cross-cultural merger and acquisitions (M&A). The intersection of HRM, bi-cultural talent management and cross-cultural M&A literature proposes a conceptual framework to capture the complexity of bi-cultural talent management and reveals the dominant macro-characterization of the extant HRM literature focussing on a more micro-orientated perspective. The paper develops a matrix by underlining spatial dimensions (spanning micro-aspects of the individual employee through to the macro-entity of firm and its location in the macro-national cultural context) and temporal dimensions (consisting of pre-merger, during merger and post-merger phases). This provides a template which examines the multi-level dynamics of bi-cultural talent management. The argument identifies ways in which extant cross-cultural lenses require deeper understanding of bi-cultural talent management in M&A settings. Future research directions and agendas are identified.     

Caring human resources management and employee engagement

Research on employee engagement has demonstrated that human resource management (HRM) practices and systems are positively related to employee engagement. However, it is not clear what HRM practices or system of practices is most important for employee engagement or the theoretical mechanisms that intervene and explain the link between HRM and employee engagement. In this paper, I provide answers to these two important questions by developing a model of caring HRM and employee engagement based on the engagement, organizational climate, and strategic HRM literatures. The model indicates that a system of caring HRM practices (job design, training and development, flexible work arrangements, work-life balance, participation in decision making, health and safety, career development, and health and wellness programs) will result in an organizational climate of care and concern for employees that employees will respond to by caring for the organization which they will enact with higher levels of engagement. This model provides many avenues for future research and practice on HRM and employee engagement and introduces the notion of a caring HRM system and an organizational climate of care and concern for employees to the literature on employee engagement.