Beyond belief: A benchmark for human resources

Many Human Resource (HR) professionals feel and believe that they have made progress during the 1980s. Unfortunately, without data to benchmark progress, assessments must depend on perception rather than evidence. To move beyond belief towards a national HR database, this article reports research on over 10,000 individuals in 1200 businesses in 91 firms. It establishes a benchmark for HR practices and HR professionals. It also highlights areas where HR professionals may focus attention to become more successful as business partners.     

Book Reviews

Book reviewed in this article: Ball, M., Bentivegna, V., Edwards, M. and Folin, M. editors, 1985: Land rent, housing and urban planning. A European perspective. Boyer, M.C. 1983: Dreaming the rational city: the myth of American city planning. Chapman, R.A. editor, 1985: Public policy studies: the northeast of England. Galasi, P. and Sziráczki, G. editors, 1985: Labour market and second economy in Hungary. Gappert, G. and Knight, R.V. editors, 1982: Cities in the 21st century. Giarchi, G.G. 1984: Between McAlpine and Polaris. Halligan, J. and Paris, C. with Wells, J. editors, 1984: Australian urban politics. Hamm, B. editor, 1984: Urban and regional sociology in Poland and W. Germany. Hamm, B. and Jalowiecki, B. editors, 1984: Urbanism and human values. Mirowski, W. and Mlinar, Z. editors, 1984: Urban social processes in Poland and Yugoslavia: theoretical and methodological issues. Hardy, D. and Ward, C. 1984: Arcadia for all: the legacy of a makeshift landscape. Hargrove, E.C. and Conkin, P. editors, 1983: TVA: 50 years of grass-roots bureaucracy. Holton, R.J. 1985: The transition from feudalism to capitalism. Jenkins, R. 1983: Lads, citizens and ordinary kids: working-class youth life styles in Belfast. Jones, G.W. editor, 1984: Women in the urban and industrial workforce: southeast and east Asia. Massey, D. 1984: Spatial divisions of labour: social structures and the geography of production. Ward, R. and Jenkins, R. editors, 1984: Ethnic communities in business: strategies for economic survival. Zukin, S. editor, 1985: Industrial policy: business and politics in the United States and France.     

Human resource competencies: An empirical assessment

With data from 12,689 associates of human resource (HR) professionals in 1500 businesses in 109 firms, this research represents an extensive assessment of HR competencies. It extends current HR theory and practice in two ways. First, it proposes specific competencies HR professionals may demonstrate to add value to a business. Second, it offers an empirical assessment of how these competencies affect the performance of HR professionals as perceived by their Associates. The results indicate that when HR professionals demonstrate competencies in business knowledge, delivery of HR, and management of change, then HR professionals are perceived by their associates as more effective. © 1995 by John Wiley & Sons, Inc.     

BOOK REVIEWS

Book Review in this Article Morgan , Gareth (Ed.) Beyond Method: Strategies For Social Research. Earl , Michael J. (Ed.) Perspectives On Management - A Multidisciplinary Analysis. Karabadse , Andrew The Politics of Management. Poole , M., Brown , W., Rubery , J., Sisson , K., Tarling , R. and Wilkinson , F. Industrial Relations In the Future: Trends and Possibilities In Britain Over the Next Decade. Bradley , Keith and Gelb , Alan Worker Capitalism: the New Industrial Relations. Durcan , J. W., Mccarthy , W. E. J. and Redman , G. P. Strikes In Post-War Britain: A Study of Stoppages of Work Due to Industrial Disputes, 1946-73.     

Managing human resources in dynamic environments to create value: role of HR options

HR options as firm investments in human assets in uncertain environments to create the capability to flexibly respond to future contingent events have been recognised as valuable. However, the black box of causal interlinkages between environmental uncertainties, HR options and firm performance is yet to be explored in strategic HRM literature. Based on the data obtained from 108 IT software firms in India, this study empirically explores these linkages using a multi-level causal model. The results suggest that the use of HR options positively mediates the effects of environmental uncertainties on firm performance. The mediating influences of different types of HR options, used by the firms to manage various types of uncertainties affecting their human assets, on the operational and the financial performance of the firms are found to be different. Implications of findings of the study for managing investments in human assets under uncertainty have been discussed.     

Book Reviews

Book reviewed in this article: Boal, F.W. and Douglas, J.N.H. editors, 1982: Integration and division: geographical perspectives on the Northern Ireland problem. Bourne, L.S. 1981: The geography of housing. Bryce, J. editor, 1981: Cities and firms. Leven, C.L. editor, 1978: The mature metropolis. Clark, T. editor, 1981: Urban policy analysis: directions for future research. Levine, C. and Rubin, I. editors, 1980: Fiscal stress and public policy. de Neufville, J.I. editor, 1981: The land use policy debate in the United States. Foster, M.S. 1981: From streetcar to superhighway: American city planners and urban transportation, 1900–40. Gottfried, R.S. 1982: Bury St Edmunds and the urban crisis: 1290–1539. Grant, W. 1982: The political economy of industrial policy. Hartman, C., Keating, D. and LeGates, R. 1982: Displacement: how to fight it. Herbert, D.T. and Johnston, R.J. editors, 1981: Geography and the urban environment: progress in research and applications. Jones, G.W. editor, 1980: New approaches to the study of central-local government relationships. Keller, S. editor, 1981: Building for women. Lebas, E. (with contributions by Enzo Mingione, Vicente Granados and Gregory Andrusz) 1982: Urban and regional sociology in advanced industrial societies: a decade of Marxist and critical perspectives. Linge, G.J.R. and McKay, J. editors, 1981: Structural change in Australia: some spatial and organizational responses. Madge, C. and Willmott, P. 1981: Inner city poverty in Paris and London. Massey, D. and Meegan, R. 1982: The anatomy of job loss. The how, why and where of employment decline. Schwartz, G.G. editor, 1981: Advanced industrialization and the inner cities. Slowe, P.M. 1981: The advance factory in regional development. Stohr, W. B. and Taylor, D. R. F. editors, 1981: Development from above or below? The dialectics of regional planning in developing countries.     

Applying real options theory to HRM: an empirical study of IT software firms in India

Environmental uncertainties can impact the market value of a firm's human assets both positively and negatively, and make return on human assets uncertain over time. However, the strategic human resource management (SHRM) literature has so far focused almost exclusively only on the upside value of human assets of a firm. Real options theory can provide the process heuristics as well as the economic logic for guiding investments in human assets to create sustainable market value for firms operating in uncertain environments. In spite of the growth in popularity of the real options approach, no meaningful progress, however, has been made towards application of this approach to HRM. This study, using data from 108 IT software development firms in India, seeks to address this gap and make three important contributions to the SHRM literature: (1) operationalise the concept of HR options by identifying the HR practices that possess option value; (2) investigate how use of HR options affects firm-level performance; and (3) develop and test a causal model that links the various types of HR options that firms use to exploit uncertainties faced by them with the firm-level operational and financial outcomes. The results support the central hypothesis of the article that use of HR options by firms operating in uncertain environments would have positive impact on their operational and financial performance. Significant differences were observed in the nature of linkages between different types of HR options used to address different types of uncertainties, and the operational and financial performance of the firm.     

Higher knowledge for higher aspirations

With escalating expectations and opportunities for HR professionals to add greater value comes the mandate for greater knowledge about the fundamental driving forces of business. Business leaders and employees increasingly assume that HR professionals have foundational knowledge of HR concepts and practices. But to create competitive advantage from that knowledge, HR professionals must be fully versant about external business realities that directly or indirectly influence how to apply that knowledge. We examine four of the most central categories of external business knowledge: advancements in technology, the causes and effects of economic and regulatory turbulence, the dynamics of business globalization, and changes in population demographics. With knowledge about these fundamental business drivers and their supporting data, HR professionals will be more able to make credible and accurate strategic contributions to business discussions and to proactively build more centrally relevant HR practices. © 2005 Wiley Periodicals, Inc.     

Organization and human resource professionals in transition

A critical issue confronting business management in the 1980s is how to successfully manage organizations and human resource issues at a time of rapid changes in markets, products, technology, and competition. These issues are aggravated by changing social values, government legislation, and international economics which impact on human resource managers even more. This article argues for a new type of professional, one who combines expertise in aligning the organization structure and culture with human resource systems and business strategy. The organization and human resource professionals (O&HR) role described is not totally new but a logical next generation extension of a role currently found at General Electric.     

Book Reviews

Book reviewed in this article: Blowers, A., Brook, C., Dunleavy, P. and McDowell, L. editors, 1982: Urban change and conflict: an interdisciplinary reader. Cochrane, A., Hamnett, C. and McDowell, L. editors, 1982: City, economy and society: a comparative reader. Clavel, P. 1983: Opposition planning in Wales and Appalachia. Cox, K.R. and Johnston, R.J. editors, 1982: Conflict, politics and the urban scene. Elliott, B. and McCrone, D. 1982: The city: patterns of domination and conflict. Englander, D. 1983: Landlord and tenant in urban Britain 1838–1918. Epstein, A.L. 1981: Urbanization and kinship: the domestic domain on the Copper-belt of Zambia 1950–56. Eversley, D. and Kollmann, W. editors, 1982: Population change and social planning. Forrest, R., Henderson, J. and Williams, P. editors, 1982: Urban political economy and social theory. Gibson, M. S. and Langstaff, M. J. 1982: An introduction to urban renewal Gilbert, A. editor (in association with Hardoy, J. E. and Ramirez, R.) 1982: Urbanization in contemporary Latin America. Gilbert, A. and Gugler, J. 1982: Cities, poverty and development — urbanization in the third world. Healey, P., McDougall, G. and Thomas, M.J. editors, 1982: Planning theory: prospects for the 1980s. Maguire, C.C. 1981: International housing policies. Marcussen, L. 1982: Settlement in Turkey: a report on the politics of housing and urbanization. Schwerdtfeger, F. W. 1982: Traditional housing in African cities. Smith, M.P. 1980: The city and social theory. Starkie, D. 1982: The motorway age: road and traffic policies in postwar Britain. Thompson, F.M.L. editor, 1982: The rise of suburbia. Ward, P.M. editor, 1982: Self-help housing: a critique. Whitt, J.A. 1982: Urban elites and mass transportation: the dialectics of power. Wikan, U. 1980: Life among the poor in Cairo     

Arbitrage pricing theory and risk-neutral measures

Abstract We consider a market with countably many risky assets and finite factor structure, as in the “arbitrage pricing theory” of Ross (1976). We prove necessary and sufficient conditions in terms of parameters for the existence of an equivalent risk-neutral measure, i.e., a measure under which each asset return has zero expected value. We relate these conditions to a certain absence of arbitrage property of the model. Mathematics Subject Classification (2000): 91B24, 91B28 Journal of Economic Literature Classification: G10, G12     

The strategic value of e-HRM: results from an exploratory study in a governmental organization

This paper presents results from an exploratory study in a governmental organization on the strategic value of electronic human resource management (e-HRM). By applying the organizational capabilities approach, and by means of mixed research methods, data were collected on two generally acclaimed strategic advantages of e-HRM: changing the role of the human resource (HR) function towards becoming a business partner; and increasing the time available for strategic HR issues. The findings show that these strategic advantages are not convincingly realized. While HR professionals perceived role changes, line managers and non-managerial employees in general did not. The frequency of e-HRM practise was low, although it was satisfactorily used as intended. Interviewees stated that strategic advantages might arise if certain conditions are met. E-HRM does however provide some unintended benefits. The findings suggest that e-HRM alone is not sufficient to enable the HR function to create dynamic and operational capabilities. Suggestions for further research are provided.     

Shorter Reviews

Book reviewed in this article: Blackman, Tim 1991: Planning Belfast. Budd, Leslie and Sam Whimster (eds) 1992: Global finance and urban living: a study of metropolitan change. London Planning Advisory Committee (1991) London: World city moving into the 21st century. Burawoy, M., A. Burton, A.A. Ferguson, K.J. Fox, J. Gamson, N. Gartrell, L. Hurst, C. Kurzman, L. Salzinger, J. Schiffman and S. Ui 1991: Ethnography unbound: power and resistance in the modern metropolis. Caves, Roger W. 1992: Land use planning: the ballot box revolution. Paul Cloke (ed.) 1992: Policy and change in Thatcher's Britain. Gray, Ian 1992: Politics in place: social power relations in an Australian country town. Isin, Engin 1992: Cities without citizens. Robins, Kevin (ed.) 1992: Understanding information: business, technology and geography. Simon, David 1992: Cities, capital and development: African cities in the world economy. Western, John 1992: A passage to England: Barbadian Londoners speak of home. Wolman, Harold and Michael Goldsmith 1992: Urban politics and policy: a comparative approach.     

From Partners to Players: Extending the HR Playing Field

HR professionals must always be “becoming” or constantly changing and adapting. For the last decade, many have argued the business partner role as a complement to traditional HR administrative work. We argue in this paper that HR professionals should move beyond partners to become players. HR professionals as players are “in the game, on the field, making a difference” through their HR work. In this article, we suggest that to become players, HR professionals must learn to coach, architect, build, facilitate, lead, and provide a conscience to business leaders. Specific knowledge and tools for each of these roles are described. © 2001 John Wiley & Sons, Inc.     

An analysis of the relationship between HR professionals' competencies and firms' performance in Malaysia

This study examines the competencies of human resource professionals in the manufacturing companies of Malaysia. The competencies that are examined in this study are business knowledge, strategic contribution, HR delivery, personal credibility, HR technology and internal consultation. All these competencies will be tested whether or not they are significantly related to a firms' performance. The sample employed here consists of HR professionals from Malaysian manufacturing companies in the southernmost state of Malaysia, Johor.A total of 89 firms responded to the survey exercise. This study uses quantitative methods such as spearmen ρ correlation and multiple regression analysis to test the variables. The finding shows that the top nine ranking HR competency factors are from the domain of personal credibility and HR delivery. The respondents' self-rated competency shows that personal communication, legal compliance, effective relationship and performance management rank above all other factors. Competencies such as strategic contribution, business knowledge, HR technology and internal consultation have significant correlation with firms' performance. Furthermore, it is found that out of all HR competencies, the highest contributions to a firm's performance are strategic contribution and internal consultation.     

Human resource business partner lifecycle model: exploring how the relationship between HRBPs and their line manager partners evolves

The human resources business partner (HRBP) role is advocated as a way for human resource (HR) professionals and the HR profession to become more strategic and less transactional, necessitating the development of different competencies. Few researchers have examined how the HRBP Model plays out in practice, over time, from the perspective of HR professionals and their line manager partners (LMPs). We collected data through interviews and focus groups with both these stakeholders at three UK organisations to understand the dynamics of the individual HRBP–LMP relationship. After analysing the data, we propose an HRBP Lifecycle Model. The model suggests the relationship between the parties is dynamic, complex and dependent upon the organisational culture as well as the skills and competencies of the main stakeholders in the partnership.     

The strength of human resource practices and transformational leadership: impact on organisational performance

The Human resource (HR) strength concept (Bowen, D., and Ostroff, C. 2004, ‘Understanding HRM-Firm Performance Linkages: The Role of the “Strength” of the HRM System,’ Academy of Management Review, 29, 2, 203–221) reflects the capacity of an HR system to transmit messages characterised by high distinctiveness, consistency and consensus. HR systems are therefore affecting perceptions and interpretations of organisational realities, such as climate and culture. Furthermore, Bowen and Ostroff (2004) suggest that organisational climate mediates the relationship between HR strength and performance. The leadership literature advocates that leaders are people who are able to create a social context in which employees are guided towards a shared interpretation, understanding and perception of the organisational climate (Yukl, G.A. 1989, Leadership in Organizations, Englewood Cliffs, NJ: Prentice Hall). In summary, both HR strength and leadership are two environment dimensions shaping and moulding employees' perceptions and interpretations. The current study explores the relationships between HR strength, leadership, organisational climate and performance. 323 questionnaires were used to gather information from a company in the industrial sector. The results show a positive relationship between the variables; however, mediating effects of climate were only observed between leadership and performance.     

BOOK REVIEWS

Book Reviewed in this article: RETAILING Costs and Competition in Retailing. By W.G. Mc Clelland RESEARCH AND DEVELOPMENT Organizing the R & D Function. By Alexander O. Stanley and K. K. White The Organization of Research Establishment. Edited by Sir John Cock -Croft Research Management: Principles and Practice. By J. E. Walters EDUCATION AND TRAINING Selecting and Training the Training Officer. By Nancy Taylor Incidents in Applying Management Theoy. By Richard N. Farmer , Barry M. Richman and William G. Ryan Problems in Business Administration. By Thomas Cicchino Raymond Policies for Management Edutation. Edited by Arthur Henderson The Academic Teaching of Management. Edited by Derek Pugh Total Job Training. By Paul M. Stokes Techniques of Leadership. By Auren Uris Writing the Executive Report. By Ralph Ironman ECONOMICS Preface to Econometrics. By M. J. Brennan The Theory of the Firm. By K. J. Cohen and R. M. Cyert Business Growth By R. S. Edwards and H. Townsend Comparative Management and Economic Progress. By R. N. Farmer and B. M. Richman Investment Proposals and Decision. By B. R. Williams and W. P. Scott MANAGEMENT PERFORMANCE Improving Management Performance. By J. W. Humble How To Manage By Results. By Dale D. Mc Conkey What To Do About Performance Appraisal. By Marion S. Kellogg Managers’ Peformance and Personality. By Thomas W. Harrell MANPOWER PLANNING Organization and Manpower Planning. By G. Mc Beath MANAGEMENT SYSTEMS AND METHODS The Theory and Management of Systems. By Johnson , Kast and Rosenzweig Planning and Control Systems: A Framework for Analysis. By R. N. Anthony Systems Analysis: A Computer Approach to Decision Models. By Claude Mc Millan and Richard F. Gonzalez Systems Analysis for Business and Industrial Problem Solving By Stanford L. Optner Operations Economy: Industrial Applications of Operational Research. By W. J. Fabrycky and Paule . Torgersen An Inrrodutton to P.E.R.T.-C.P.M. By B. N. Baker and R. L. Eris Project Management and Control: Volume II Applied Operational Planning. By R. L. Martino Project Management and Controi: Volume III Allocating and Scheduling Resources. By R. L. Martino MARKETING The Marketing of Industriai Products. Edited by Aubrey Wilson Marketing in a Competitive Economy. By Leslie W. Rodger Marketing Research Management. By A. B. Blankenship and J. B. Doyle Distribution in a High-level Economy. By Reavis Cox in association with Charles S. Goodman and Thomas C. Fichandler On Knowing the Consumer. Edited by Joseph W. Newman Marketing Communications: a Behavioral Approach to Men, Messages, and Media. By Edgar Crane Marketing Management: A Behavioral Systems Approach. By George A. Field , John Douglas and Lawrence X. Tarpey     

Transnational HR network learning in Korean business groups and the performance of their subsidiaries

This study explores (1) how two distinct dimensions of transnational human resources (HR) network learning, i.e. globally linked and locally leveraged learning, are related to the performance of the foreign subsidiaries of Korean business groups (chaebols) and (2) how strategic HR learning mediates the relationship between these two dimensions of transnational HR network learning and the performance of foreign subsidiaries. We propose that each dimension of transnational HR network learning is related independently and jointly to the performance of a chaebol's foreign subsidiaries. Our results suggest that locally leveraged HR learning has a stronger relationship with the performance of sales subsidiaries, whereas globally linked HR learning has a stronger relationship with the performance of manufacturing subsidiaries. In addition, we find that the interaction between the two dimensions of transnational HR network learning has a weaker positive relationship with the performance of foreign manufacturing subsidiaries than that of foreign sales subsidiaries.