Trade Union Influence on Human Resource Management Practices

This paper examines the influence of unions on 37 human resource management practices, ranging from hiring policies to promotion practices. The logistic regression results show that unionization is positively associated with a more formal approach to human resource management. There is, however, a shift from performance-based payment systems and performance appraisal (P.A.) functions in unionized settings. The results also indicate that union firms are more selective of new hires by adopting a formal probationary period for new employees. Last, the estimates suggest that the impact of unions on training programs varies with the nature of the programs.     

The Economics of Unions and Collective Bargaining

This paper reviews recent research on the economics of unions and collective bargaining, emphasizing the implications for human resource management. Research findings on the impact of unions, strategic union avoidance behavior by management, strategic use of labor law by unions and employers, and conflict and conflict resolution in labor relations are discussed. The paper highlights unexploited connections between research on unioun impact and research on strategic behavior.     

Research notes and communications strategic planning as competitive advantage

Since 1970, over forty empirical studies have examined the performance consequences of formal strategic planning. This line of research has drawn heavy criticism from reviewers on methodological grounds, and has produced confusing, apparently contradictory results. This article reevaluates the planning-performance relationship from a resource perspective, arguing that strategic planning does not satisfy the criteria for sustainable competitive advantage– although it may produce economic value, it is easily imitated and may be substitutable. The article suggests that previous studies produced inconsistent results because they did not account for the dissemination of strategic planning over time, or for industry differences in strategic planning factor markets. An empirical test in two industries finds that formal strategic planning and financial performance are unrelated in a ‘planning equilibrium’ industry, but positively related in an industry with strategic planning factor market imperfections.     

Standardization and Localization of Human Resource Management in Sino-Foreign Joint Ventures

The international human resource management models developed in the last decade pursue a contextual analysis of the standardization (global integration) of multinational parent companies' human resource management policies and practices and localization (local differentiation) of host countries' practices. This paper extends existing international human resource management models by exploring the characteristics of IJV partners, and their ability to influence whether the IJV adopts standardised or localised HR practices. The hypothesized strategic drivers for the formation of HR policies and practices in IJVs are HR expertise, HR consistency, resource power, and internationalisation experience.     

Management practices of Taiwanese firms: As compared to those of American and Japanese subsidiaries in Taiwan

The management practices of local Taiwanese firms were evaluated by Negandhi in 1973 as the least developed as compared to those of the American and Japanese subsidiaries. Since then, the local Taiwanese firms have undergone a phenomenal change. In comparison to the American and Japanese subsidiaries, the current management practices — organisational structure, decision making and human resource management of the local Taiwanese firms are a mixture of those of the American and Japanese subsidiaries. The local Taiwanese firms have adapted very well to the impact of the West (the United States) and the East (Japan) and contributed greatly to the economic prosperity of Taiwan.The author wishes to thank the Council for Economic Planning and Development, Republic of China (Taiwan) for financial support.     

经济型酒店人力资源问题探析

经济型酒店在中国方兴未艾,但目前其经营中已暴露出了一些人力资源方面的问题。文章针对中国经济型酒店平均用工比例过高、员工素质较低以及人才紧缺等问题进行分析,并比照国内外先进的经济型酒店人力资源管理的经验和经营方式,提出应全面规划人力资源、外包非核心业务、完善人才培养体系以及加强校企合作等建议。     

How do interdependencies among human‐capital deployment,development, and diversification strategies affect firms' financial performance?

Using key insights from the resource‐based view of the firm, we develop and test a theory of how firms can successfully deploy and develop their strategic human assets while managing the trade‐offs in their service and geographical diversification strategies. In a sample of large law firms we find that, even though firms profit from expert human‐capital leveraging strategy and service and geographical diversification strategies individually, pursuing these strategies simultaneously at high levels produces negative interaction effects on firm profitability. In addition, the internally developed, firm‐specific associate human capital strategically fits better with high levels of expert human‐capital leveraging. While lateral hiring helps firms build new knowledge bases and take advantage of growth opportunities, pursuing high levels of both expert human‐capital leveraging and lateral hiring of associates results in lower profitability. To fully capture the economic benefits from strategies of diversification, human‐capital leveraging and lateral hiring, firms should understand and manage the complex interdependencies among multiple levels of strategy. Copyright © 2005 John Wiley & Sons, Ltd.     

Human Resource Management and Performance in UK Call Centres

Using data from a sample of 145 UK call centres, the authors test the core propositions of the strategic human resource management (SHRM) approach that: (a) there are coherent links through the SHRM chain from strategy, through operational requirements, to work design and human resource management, and (b) the fit between the human resource practices and market factors determines organizational performance. Little support for these hypotheses is found as only (a) a few direct relationships between the elements of the SHRM chain are found, and (b) direct relationships, rather than those moderated by market factors, are found between human resource practices and performance. But key operational requirements are linked to work design, which is itself related to a limited number of human resource practices. The direct effects of work design on key performance indicators are more pronounced than those of human resource practices.     

Strategic HR functions and firm performance: The moderating effects of high-involvement work practices

Although the strategic human resource management literature has emphasized the value of the integration of human resource management into strategic management, the mechanism through which the strategic integration of HR functions contributes to the improvement of firm performance is relatively unknown. Assuming that HR strategies cannot be successfully implemented without employee support for and commitment to these strategies, this research focuses on high-involvement work practices, which allow employees to participate in management decisions as potential moderators of the integration of HR functions in strategic management and firm performance. Using a sample of 203 unionized Korean firms, this research found that the effects of a strategic HR function on firm performance were moderated by high-involvement work practices such as a pay-for-performance program, a career-development program, union participation in company strategy, and temporary worker benefits. The results suggest that a strategic HR function will not be successful without institutional mechanisms that foster employee involvement.     

Innovation in Australian Trade Unions

Building on the study of innovation in American national unions, this article specifies and tests a model of the determinants of innovation in Australian trade unions. The results generally support the principal Delaney, Jarley, and Fiorito (1996) finding that the degree of union innovative activity is positively associated with rationalization and size—an indicator of resource availability. Several contrasts between the Australian and American findings are also noted and discussed.     

Strategic planning–financial performance relationships in banks: a causal examination

An integrative model of relationships among managerial, environmental, and organizational factors, strategic planning intensity, and financial performance was developed and tested using data from 112 banks. The results suggested that the intensity with which banks engage in the strategic planning process has a direct, positive effect on banks’ financial performance, and mediates the effects of managerial and organizational factors on banks’ performance. Results also indicated a reciprocal relationship between strategic planning intensity and performance. That is, strategic planning intensity causes better performance and, in turn, better performance causes greater strategic planning intensity. Finally, the results hold implications for other financial services institutions subject to similar conditions that banks must operate under. © 1997 by John Wiley & Sons, Ltd.     

Planning and financial performance of small,mature firms

This article develops a classification scheme of planning process sophistication in small firms, categorizes small firms according to planning process sophistication, and examines the relationship between planning process sophistication and the financial performance of a select group of small, mature firms. The study overcomes several methodological shortcomings of prior research on strategic planning and firm performance. Multivariate analysis of variance is used to identify statistically significant differences between the financial performance data of firms that employ structured, strategic plans and those that do not. The results confirm previous research on strategic planning and financial performance. Finally, recommendations are made for future research.     

HRM systems and firm performance: The mediation role of strategic orientation

Prior research evidence of a set of internal fit human resource practices supports a positive human resource management (HRM)–performance relationship. Yet we know very little about exactly what drives the HRM–performance (also known as strategic HRM) relationship. In response to the call for suitable theories to explore the “black box” between HRM and firm performance, this study is designed to extend previous work by examining how the relationship between HRM and strategic orientation influences firm performance. Specifically, it examines the relationship between HRM systems, strategic orientation, and performance in a cross-section of 190 firms in Singapore. The research hypotheses were tested using multiple regression and LISREL. As predicted, there was an indirect effect between Inducement and Investment HRM systems and firm performance, such that the relationship was mediated by strategic orientation. In particular, Singaporean firms which implemented product and market differentiation strategies would mediate the HRM systems–performance relationship. Implications for research and managerial practices are provided.     

Organisation development practices in Hong Kong: Current state and future challenges

This paper examines the current state of OD practices in Hong Kong. The results of two recent studies among major firms and among the managers of large firms are reported. It is found that Hong Kong firms put more emphasis on the human processual type of interventions, followed by strategic planning. Some firms are practising state-of-the-art OD activities, though the majority are still using traditional OD interventions. The current state of OD practice is then reviewed and implications for the future are discussed.The author is from the Department of Management, The Chinese University of Hong Kong. The author would like to acknowledge the financial support of UPGC Direct Grant of the Chinese University of Hong Kong for this project.     

The relationship between corporate entrepreneurship and strategic management

This study examines the relationship between corporate entrepreneurship intensity and five specific strategic management practices in a sample of 169 U.S. manufacturing firms. The five strategic management practices include: scanning intensity, planning flexibility, planning horizon, locus of planning, and control attributes. The results of the study indicated a positive relationship between corporate entrepreneurship intensity and scanning intensity, planning flexibility, locus of planning, and strategic controls. The fine‐grained nature of these results may be of practical use to firms that are trying to become more entrepreneurial and may help researchers better understand the subtleties of the interface between strategic management and corporate entrepreneurship. Copyright © 1999 John Wiley & Sons, Ltd.     

The Strategic HRM Configuration for Competitive Advantage: Evidence from Japanese Firms in China and Taiwan

The purpose of the present study was to identify the pattern of HRM practices that would lead to an improvement in business performance in Chinese- and Taiwanese-based Japanese affiliates in the light of a configurational perspective, following the current debate in the field of strategic human resource management (SHRM). In particular, a set of working hypotheses regarding the structural relationship among HRM practices for producing enhanced business results was drawn from the organizational learning theoretical framework that emphasizes a linkage between the process of learning and firm performance. Our conceptual model and specific hypotheses were examined using a sample of 286 Japanese affiliates operating in Mainland China and Taiwan. The results provided basic support for the configurational hypothesis in predicting the financial aspect of an affiliate's performance. It is argued that the findings of the study have several important implications for the untested relationships between high commitment work practices (HCWPs) and high performance work systems (HPWSs) from a Japanese management perspective. In addition, the manner in which each HRM technique can be used by Japanese overseas affiliates to enhance their learning and adaptive capabilities is discussed.     

A resource‐based perspective on human capital losses,HRM investments,and organizational performance

Reversing the focus on human capital accumulations in the resource‐based literature, the authors examine the issue of human capital losses and organizational performance. They theorize that human capital losses markedly diminish the inimitability of human capital stores initially, but that the negative effects are attenuated as human capital losses increase. They argue further that these effects are more dramatic when human resource management (HRM) investments are substantial. As predicted, Study 1 shows that the human capital losses (voluntary turnover rates)‐workforce performance relationship takes the form of an attenuated negative relationship when HRM investments are high. Study 2 shows stronger curvilinear effects of voluntary turnover rates on financial performance via workforce productivity under these conditions. Implications for resource‐based theory and strategic HRM are addressed.     

Specificity and opacity as resource-based determinants of capital structure: evidence for Spanish manufacturing firms

In this work we develop an analytical framework to examine the effects of strategic investments on the financial policy of the firm. From the resource-based approach of the firm, nontradable and difficult-to-copy assets are the basis of a sustainable competitive advantage. However, imperfections in the resource markets can also be interpreted as sources of costs and/or restrictions from a financial point of view. Specificity and opacity are the features of strategic resources that enable us to identify the financial implications of the resource-based strategy. We have tested our theoretical framework using a sample of Spanish nonfinancial firms. Our results show that highly specific and opaque resources limit the borrowing capacity of the firm, while other transparent strategic assets affect financial leverage positively. Our findings suggest two main implications for strategy formulation and implementation: (1) there are unobservable financial costs that must be considered for a correct evaluation of a sustainable competitive advantage based on strategic resources; and (2) the financial policy of a ‘resource-driven’ firm is partially determined by the features of its strategic resource bundle. Copyright © 2001 John Wiley & Sons, Ltd.     

Human Resource Management in the Japanese Financial Institution Abroad: The Case of the London Office

The evidence on human resource management in overseas offices of Japanese multinational service-sector firms is far less abundant than that for manufacturing firms. Existing studies describe employment practices that vary, both between firms and over time. To supplement the existing body of evidence, the present study investigates employment practices at two Japanese financial services firms in the City of London through the use of interviews and questionnaire surveys. It focuses on those facets of the ‘Japanese’ management system that may be considered fundamental characteristics: recruitment and selection procedures, training methods, pay and promotion policies, employment security, company culture, and the position of workers within the overall organization. The study considers the implications of changes over time within the two firms when viewed in the context of the existing evidence; such comparison suggests that both corporate strategy and human resource management policy in Japanese financial organizations may have changed during the 1980s.