The changing face of HRM: in search of balance

Current models of HRM suggest that expectations about HR roles are changing as organisations are striving to make the HR function leaner and more ‘strategic’. In our article we explore the changing roles of HRM as they are perceived by different stakeholder groups within the HR profession through the medium of a study examining the diffusion of the concept of ‘the thinking performer’ launched by the Chartered Institute of Personnel and Development in 2002. We explain how the concept of business partnering dominates respondents' talk about HR policy and practice and raise questions about the impact of this in terms of HRM's relationship with employees, employee well‐being and the career paths of HR professionals. We argue that the profession needs to reflect seriously on the consequences of a dominant business/strategic partner framing of HR work, which fails to address the duality that has historically always been inherent in HR practice. We conclude that there is a need for a more balanced HR agenda addressing human and economic concerns in current and future models of HRM.     

HR business partner competency models: re‐contextualising effectiveness

The rise of ‘HR business partnering’ over the last decade has led to an enormous growth in HR competency models. Competencies are believed to provide a mechanism for reinventing traditional HR roles and improving the effectiveness of HR professionals as business partners. But are they effective? The survey and interview evidence presented here suggest that the effectiveness of competency models is disappointing, and they appear to be particularly weak at predicting performance in a business partner role. There are also significant contextual variations in effectiveness based on the degree of change experienced by the HR function, how consistently business partnering is implemented, overall levels of reduction in transactional HR, and the patterns of centralisation–decentralisation of the HR function. The findings highlight the intrinsic limitations of competency models, as well as the powerful influence of contextual factors, and they raise important questions about the future direction of HR business partnering.     

Partnering in the construction industry—Problems and opportunities

During recent years partnering has been on the top of the management agenda in the construction industry. Despite this attention there is limited and partly contradicting evidence of the impact of these efforts. The objective of this literature-based paper is to explore why it has been difficult to realise potential partnering benefits on the strategic level, while partnering in individual projects has improved construction performance. The analysis builds on a comparison of the features of business relationships in construction with the characteristics of so called ‘high-involvement relationships’ based on close cooperation. It is concluded that prevailing supply arrangements established to handle the particular conditions in the construction industry makes it unlikely for partnering to reach outside the individual project. Taking the step to strategic partnerships would require modification of some of the basic assumptions and norms of industry efficiency. On the basis of this analysis we explore potential consequences of modifications of current behaviour with respect to decentralisation and competitive tendering. The paper is finalised with a suggestion for a differentiated approach to partnering.     

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.     

Conformist innovation: an institutional logics perspective on how HR executives construct business school reputations

In this paper, we explore whether Legge’s classic 1970s criticism of human resource (HR) executives as ‘conformist innovators’ is still relevant. Drawing on institutional logics, we analyse HR managers’ rationales for choosing particular university business schools to provide senior executive development. Our mixed-methods study demonstrates that senior HR managers socially construct and enact business school reputations by drawing on strategic rationales. These rationales are embedded in societal, field and organizational logics, especially the extant reputational rankings of international business schools and an ‘ideal’ template of elite business schools. We find that these rationales, and the decisions they evince, tend to confirm the traditional picture of conformist innovation among HR executives. We discuss the implications for the reputation of HR as a profession, their employers and business schools.     

The next strategic weapon: continuous replenishment planning

In this age of rapid technology change, we are searching for that strategic weapon to have in our arsenal that will help us maintain our competitiveness. This article will show how continuous replenishment planning, with the recent developments in communication technology, has enabled two companies to concentrate on the strategic issues of business partnering.     

Human resource management and organizational strategies in German- and US-owned companies

The development of the international economy over the past twenty years has bred considerable diversity in the form and substance of employment relations (labour-management relations, human resource management practices) throughout the world. Cases of ‘social partnership’ are today found in the ‘free market’ United States economy; some companies operating in Germany's ‘social’ market economy are rejecting traditional forms of social partnership in the name of more unilateral strategies.

This paper examines (a) the extent to which ‘strategic diversity’ – variation in human resource strategies and policies – is possible within the heavily institutionalized, co-operative and codeterminative German economy, and (b) how managers perceive the effects of different kinds of HR approaches on organizational change and industrial adjustment. It is based on empirical evidence drawn from seven large chemicals companies operating in Germany – three of them US-owned firms and four German-owned.

The main conclusions are that considerable strategic diversity is possible within the German context, and that managers perceive distinct costs and benefits to specific aspects of the typically American ‘unilateral’ style and the more German ‘negotiated’ approach to structuring the relationship with human resources. The paper concludes with a discussion of the implications of these trade-offs for the transferability of HR strategies across international borders, giving special attention to policies to avoid some of these potential costs.     

Equality and diversity in the public services: moving forward on lesbian,gay and bisexual equality?

A key change for lesbian, gay and bisexual (LGB) people in the European Union has been the prohibition by the Employment Equality Directive (2000) of discrimination in employment on grounds of sexual orientation. This article focuses on the UK, which in 2003 introduced legislation making it unlawful to discriminate on these grounds. It explores the factors encouraging ‘good practice’ in sexual orientation equality work. It considers progress within the public services that have ‘pioneered’ sexual orientation equalities work, drawing on the views of LGB employees, management and trade union stakeholders. The recent legislation is considered to have provided a major impetus for change; however, an emerging ‘business case’ within the public service modernisation agenda is considered to have provided both opportunities and barriers to progress. A challenge for HR practitioners is getting organisational commitment to sexual orientation work, which is still perceived within organisations as a ‘sensitive’ area.     

Exploring TQM awareness in the Greek national business context: between conservatism and reformism cultural determinants of TQM

This paper develops the theoretical understanding of the application of Total Quality Management (TQM) in business environments that differ from those from where it emerged. Business systems that are less developed tend to adopt more ‘sophisticated’ and formal strategic initiatives. The adoption of TQM by Greek organizations is a prime example. However, less has been said about the understanding of TQM or its cultural determinants in such environments. This paper, based on the results of 73 semi-structured interviews conducted with managers working in Greek public and private organizations, argues that there are two antithetical business-cultural ‘forces’ – conservatism and reformism – that seem to substantially affect the awareness and application of total quality concepts. Both features create pressures in the system, either restraining or promoting TQM implementation. In this context, the tension between traditional business culture and a modernization logic is the key to understanding the development of TQM.     

In search of the changing role of the corporate human resource function in the international firm

There has been considerable research on the issues of board-level representation by personnel/HR directors and senior HR managers' involvement in strategic decision making. Since the early 1990s there has been a growing interest in international HRM, reflecting the growing recognition that the effective management of human resources internationally is a major determinant of success or failure in international business. There is also evidence that HR constraints often limit the effective implementation of international business strategies. More recently, it has been argued that the more rapid pace of internationalization and globalization leads to a more strategic role for HRM as well as changes in the content of HRM. Yet, while there have been some attempts to integrate international corporate strategy and human resource strategy, surprisingly, the role of the corporate human resources function has been neglected, particularly in the context of the international firm. This article seeks to redress the balance. The question addressed is: what is the role of the corporate HR function in the international firm? To answer these questions empirical research was conducted in thirty UK international firms. We found an emerging agenda for corporate HR in international firms which focuses on senior management development, succession planning and developing a cadre of international managers. We conceptualize this as a strategic concern with developing the core management competences of the organization, and argue that it can be usefully analysed from the perspective of the learning organization.     

Breaking the mould? Innovation as a strategy for corporate renewal

In contrast to studies of HRM and innovation within hi-tech industries or greenfield sites, this paper uses longitudinal data to analyse the attempts of two mature corporations to shift from business strategies of 'cost reduction' and 'growth by acquisition' towards organizations that compete through innovation. The case studies describe how human resource management interventions and the structure of the HR function itself are used as change levers to support the shift in business strategies. By analysing the different organizational contexts, the paper identifies the complex microprocesses that either facilitate or constrain such organizational change. Its contribution lies in considering strategies concerned with innovation in both product and sales and marketing; in tracking these change processes over time using in depth case studies; and in considering innovation as a strategic trigger for corporate renewal.     

HR outsourcing: the impact on HR role,competency development and relationships

The business benefits of an outsourcing strategy are well documented, and HR is encouraged to outsource in order to add value. Yet little is known about how HR outsourcing affects the HR role, competencies and relationships with senior management. These issues are examined through 27 semi‐structured interviews with senior HR professionals, comparing HR departments engaged in HR outsourcing with those maintaining full in‐house HR provision. The findings indicate that HR outsourcing stymies HR role transformation. HR outsourcers experienced limited skill development and an increased focus on cost reduction at the expense of their strategic position. In contrast, non‐HR outsourcers actively engaged in other parts of the business, developing competencies that garnered trust and support of senior managers. The benefits of an external HR community appear limited. The study suggests that an ‘internal’ HR community is better placed to enhance HR departmental roles.     

Paying the piper: choice and constraint in changing HR functional roles

HR directors are often exhorted to play a more ‘strategic’ role in their organisations. However, it is not necessarily clear what is meant by this, or whether it is possible for departments to change their role at a whim. In this article we examine the changing role of the HR function within two contrasting organisations – an NHS trust and a bank – over a period of seven years. Drawing on role‐set theory and concepts of negotiated order, we illustrate how HR functional roles are located within a complex and dynamic social setting, and present a model that seeks to map these interrelationships.     

If HR were really strategically proactive: Present and future directions in HR's contribution to competitive advantage

Current business conditions mandate greater competitive advantage from HR agendas and processes. To add greater competitive advantage, HR must contribute strategic value against criteria from customer and capital markets. HR can add strategic value either reactively or proactively. In its strategically reactive mode, HR assumes the existence of a business strategy and adds value by linking HR practices to the business strategy and by managing change. In its strategically proactive mode, HR creates competitive advantage by creating cultures of creativity and innovation, by facilitating mergers and acquisitions, and by linking internal processes and structures with ongoing changes in the marketplace. This article defines and describes these specific practices through which HR can contribute to greater competitive advantage. © 1999 John Wiley & Sons, Inc.     

Perceptions of the value of the HR function

This article explores the added value of the HR function as it is perceived by three groups of managers: top managers, HR managers and line managers. Despite the fact that literature about strategic HRM focuses almost exclusively on the value of the HR function as a strategic partner, it was assumed that its perceived value for the business would not be restricted to the area of strategy formulation and implementation. Several 'result domains' can be distinguished in which the HR function can deliver value to the business. Based on our review of the literature, the degree of strategic involvement of the function was used as a second perspective to investigate its perceived added value. To examine our propositions, a qualitative study was carried out in which 97 HR managers, 38 top managers and 178 line managers participated. The results confirm our thesis that the perceived value of the HR function contains more than just the fulfilment of its role as a strategic partner. Based on our results, an integrated model for the perceived value of the function has been developed.     

Becoming an HR strategic partner: tales of transition

This article aims to bridge the gap between previous examinations of HR strategic partnership from a role perspective and an emerging interest in the social construction of identity. I consider ‘strategic partner’ as a local, flexible social construction framed by the broader occupational context. Based on a year-long ethnographic study, I examine the experiences of HR practitioners ‘becoming’ strategic partners, considering the themes of becoming strategic, becoming a partner and remaining a generalist. Practitioners depict becoming strategic as a ‘release’ from previous constraints, with becoming a partner positioned as filling a gap created by clients' deficiencies in people management. Meanwhile, tensions develop as strategic partners attempt to retain a say in transactional issues. I reflect on the resulting practical issues while also considering the role of HR practitioners in, in the words of Helen Francis, ‘the dynamic and socially complex nature of HRM’.     

Corporate Cultural Change – Is It Relevant For the Organisations of the 1990s?

Partly as a consequence of the popularity of the ‘excellence’ literature of the early 1980s, there was a widespread acceptance that ‘corporate cultural change’ was one of the effective mechanisms within a strategic HRM approach to people management. However, recent research into imposed cultural change programmes in the late 1980s raises doubts about their effectiveness as change mechanisms, as management control devices and as contributors to business performance. This article engages in the current debate concerning the aims, design and implementation of cultural change but goes on to question the relevance of such an idea for organisations in the context of the 1990s. the article extends the many debates within the HRM and corporate culture literature by contextualising them within the emerging features of organisations in the 1990s.     

Strategic Moves and Organizational Survival in Turbulent Environments: The Case of Spanish Banks (1983–97)*

abstract The main purpose of this paper is to examine the effect of ‘strategic moves’ (or strategic change) on the likelihood of organizational survival in a population of firms which has undergone radical transformations in its environment. To this end, we propose and test two competitive hypotheses which are the result of two other theoretical perspectives about the consequences of strategic change: the adaptation view (classic strategic management and dynamic capabilities) and the ecological approach. While from the former, in general, it is assumed that strategic change has a positive effect on the likelihood of organizational survival, from the ecological approach, it is frequently argued that attempts at reorganization in general and strategic change in particular tend to be associated with an increase in the likelihood of organizational extinction. The sample used to test the two proposed hypotheses is the Spanish bank population over the period 1983–97. The results confirm the positive and significant effect of strategic moves (or strategic change) on the likelihood of organizational survival, in line with the conclusions of the adaptive perspective and other empirical research carried out in different settings. This paper introduces two important methodological innovations: (a) the definition and measurement of ‘strategic moves’ (or strategic change) by using a new cluster algorithm, the MCLUST; and (b) the control of the non‐observable heterogeneity using panel data models for ‘probit’ regression.     

A chameleon function? HRM in the ‘90s

This article examines the changing role of the HR function in large corporations in the 1990s. It draws on data collected from a multi-sector case study research project – the Leading Edge Forum Consortium. Activities are analysed along three dimensions: access to strategic decision making, shift of responsibilities to the line, and the function's perceived contribution to business performance. It concludes that devolution to the line remains problematic, and that access to strategic decision making is still contingent on the personal influencing skills of senior HR managers or directors. Nevertheless the recognition of the strategic importance of HRM as a contributor to business performance has risen.     

The costs and opportunities of doing diversity work in mainstream organisations

This paper provides insights into the impact that the shift from ‘equal opportunities’ to diversity management is having on the people who do diversity work. Equality officers have been largely replaced by diversity specialists, often with mainstream HR or business management backgrounds. They are often supplemented and supported by a new cadre of ‘part‐time’ diversity practitioners – diversity champions, drawn from middle‐senior managers. The study suggests that doing diversity work in the 2000s is a different experience from doing equality work in the 1980s/1990s. The ascendance of the business case and the depoliticisation of equality lend DM greater legitimacy and respectability. This, combined with the changing backgrounds and characteristics of diversity practitioners means that diversity work usually carries lower costs and potentially offers more opportunities than did equality work. The conclusion summarises the costs and opportunities, drawing out the main policy implications for the practitioners themselves and for organisations.