Reducing slack: the performance consequences of downsizing by large industrial firms, 1977–93

We conceptualize downsizing as an attempt to reduce organizational slack. We suggest that the degree to which downsizing will improve firm performance will be contingent on conditions under which the downsizing occurs. We emphasize the level of organizational slack as an important contingency, and also examine two other contingencies: (1) whether the scope of the downsizing is narrow (restricted to personnel reductions) or broad (involves organizational redesign); and (2) if the downsizing is conducted proactively (when performance is stable or improving) or reactively (when performance is declining). By analyzing a panel dataset of downsizings conducted by the 100 largest American industrial firms from 1977 to 1993, we find broad support for our hypotheses that downsizings are more likely to lead to improved performance when firms have high slack, when their scope of the downsizing is broad, and when the downsizing is done proactively. We also explore and find evidence for interactions among these contingencies. We discuss the implications of our findings for the literatures on downsizing and organizational slack. In doing so, we bring together two literatures that have an obvious affinity but have been only loosely coupled in the past. Copyright © 2005 John Wiley & Sons, Ltd.     

The impact of earnings expectations on corporate downsizing

Research Summary: We propose that due to financial market pressures, managers are forward‐looking in their search and decision processes and focus on meeting performance targets set by the financial community. Using panel data on S&P 100 companies, we find that pressure felt by management to meet the analyst consensus earnings estimate influences the extent of corporate downsizing. Moreover, our results show that high levels of institutional investor stock ownership and CEO power attenuate managers’ sensitivity to financial market pressures, while high levels of analyst coverage increase their sensitivity. Managerial Summary: In this study we examine how financial market pressures influence managers’ downsizing decisions. We argue that investment analysts’ earnings estimates represent important performance targets to which managers aspire. If firms fail to meet analysts’ expectations, the stock price will suffer. This study shows that managers utilize corporate downsizing to address the potential shortfall between a firm's future performance and the analyst consensus earnings estimate. In addition, we find that managers’ concerns over meeting analysts’ earnings estimates are influenced by various contextual factors such as institutional investor stock ownership, CEO power, and high levels of analyst coverage.     

Market reactions to announcements of corporate downsizing actions and implementation strategies

This study examines the effects of downsizing actions and implementation strategies on market performance. While downsizing actions reduce costs, they also produce a loss of valuable human capital that can exceed the benefits resulting from the lay‐offs. In support of this argument, the results showed that downsizing had a negative effect on market returns and the effects grow increasingly negative with larger downsizing actions. However, the market reacts more positively to downsizing actions when reallocation strategies are used and to large downsizing actions when disengagement incentives are applied. The results of this research suggest the importance of carefully managing valuable resources to create positive returns. Copyright © 2004 John Wiley & Sons, Ltd.     

Firm,industry, and strategy influences on choice of downsizing approach

This study represents a step toward a more sophisticated and grounded understanding of downsizing. The author sharpens the concept of downsizing by identifying and distinguishing among different resource-reduction approaches. Then, drawing upon exit and mobility barrier theory, firm, industry, and strategy influences on choice of downsizing approach are examined. Findings suggest that characteristics of a firm's resources and the resale market for those resources differentially influence broad and focus firms' choice of downsizing approach. © 1998 John Wiley & Sons, Ltd.     

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.     

Quality management practices and competitive performance: Empirical evidence from Japanese manufacturing companies

This paper presents the results of an empirical study on the relationship between quality management practices and competitive performance in Japanese manufacturing companies. The data was gathered from two surveys including the common sample of twenty-seven Japanese manufacturing companies in the 1990s and the 2000s. Statistical techniques are used to compare the degree of implementation of the eleven quality management practices and their impact on different dimensions of competitive performance between two periods. Findings of this study highlight the stability and consistency of the Japanese quality management, which can be used as one of the strategic weapons for maintaining competitive advantage of Japanese manufacturing companies.     

A causal analysis of the impact of information systems and supply chain management practices on operational performance: Evidence from manufacturing SMEs in Turkey

This study has empirically tested a framework identifying the causal links among supply chain management (SCM) and information systems (IS) practices, SCM–IS related inhibiting factors and operational performance based on a sample of 203 manufacturing SMEs operating in the manufacture of fabricated metal products and general purpose machinery within the greater metropolitan area of Istanbul in Turkey. Moderating effect of SCM and IS related enabling factors on the above mentioned relationships is also investigated in this study. Tests of hypotheses indicate that both SCM and IS practices positively and significantly influence the operational performance of sample firms. The results of the structural model also indicate a strong support for negative relationships between SCM–IS related inhibitors and the implementation levels of both SCM and IS practices. Similarly, a strong support was found for the hypothesized negative relationship between SCM–IS inhibitors and operational performance of SMEs. Finally, we verified the moderating impact of SCM–IS enablers on the link between SCM practices and operational performance. A similar moderating impact was also found with regard to the relationship between IS practices and operational performance.     

国有企业人力资源管理存在的问题及对策探讨

国有企业是国民经济的基础,在经济运行中一直处于主导地位。因此国有企业必须建立起科学合理的人力资源管理与开发的有效机制,充分发挥员工的积极性,创造出最大的社会财富。文章分析了目前我国国有企业人力资源管理的现状及原因,并提出了相应的对策。     

Assessing the effects of mergers and acquisitions on firm performance,plant productivity,and workers: newl evidence from matched employer‐employee data

Empirical studies of mergers and acquisitions typically focus on firm‐level financial performance. In contrast, we use human capital theory to model these events as transactions that simultaneously have cross‐level, real effects on workers, plants, and firms. Our empirical analysis is based on longitudinal, linked employer‐employee data for virtually all Swedish manufacturing firms and employees. We find that mergers and acquisitions enhance plant productivity, although they also result in the downsizing of establishments and firms. Firm performance does not decline in the aftermath of these ownership changes. We conclude that such transactions constitute a mechanism for improving the sorting and matching of plants and workers to more efficient uses. Copyright © 2010 John Wiley & Sons, Ltd.     

Interlocks and firm performance: The role of uncertainty in the directorate interlock‐performance relationship

We examine how uncertainty influences the performance effects of directorate interlocks. Our study offers a new perspective of directorate interlocks as mechanisms that enable firms to improve performance when confronted with greater uncertainty, suggesting that uncertainty positively moderates the interlock‐performance relationship. This contrasts with the view based on resource dependence theory suggesting networks reduce uncertainty and enhance firm performance, implying that uncertainty mediates the interlock effect upon performance. Using a sample of 3,745 firms across manufacturing industries in the United States during the period 2001–2009, we find support for the moderation argument and less convincing support for mediation, suggesting that firms may not form interlocks necessarily to reduce uncertainty. Instead, firms may create interlocks to enable adaptation and enhance performance when confronted by uncertainty. Copyright © 2013 John Wiley & Sons, Ltd.     

利用绩效考评激励员工的研究

针对如何对员工的行为和行动作出公道、合理且令员工信服的评价,并给予相应的激励措施,介绍了绩效管理方法,主要包括绩效考评的内容和方法、绩效考评与员工激励的关系以及怎样使绩效考评发挥良好的激励效果。     

Strategic supply chain management: Improving performance through a culture of competitiveness and knowledge development

For many firms, using their supply chains as competitive weapons has become a central element of the strategic management process in recent years. Drawing on the resource‐based view and theory from the organizational learning and information‐processing literatures, this study uses a sample of 201 firms to examine the influence of a culture of competitiveness and knowledge development on supply chain performance in varied market turbulence conditions. We found that synergies exist between a culture of competitiveness and knowledge development: their interaction has a positive association with performance. In addition, based on behavioral and contingency theories, we found that market turbulence moderates these relationships, having a positive influence on the knowledge development–performance link and a negative influence on the culture of competitiveness–performance link. Managers who are confident about the level of market turbulence they will face can use this sense to decide whether to emphasize developing either a culture of competitiveness or knowledge development in their supply chains. For those firms whose managers are unlikely to be able to predict the degree of turbulence they will face over time, a focus on both a culture of competitiveness and knowledge development is critical to ensuring success. Copyright © 2007 John Wiley & Sons, Ltd.     

企业人力资源外包动因及风险规避策略浅析

企业人力资源管理外包日益受到广泛关注,将企业中"非核心"业务外包给专业的服务商,为企业人力资源管理的科学化、专业化提供了有效途径,而这一外包过程必然会给企业带来一定的风险.文章对企业人力资源外包的动因以及可能会遇到的风险进行了探讨,并提出了基于风险控制的人力资源管理外包策略.     

另一种眼光看泰罗科学管理理论

人们普遍认为,泰罗的科学管理理论只见事不见人,这种看法其实是对泰罗及其科学管理理论的误解。笔者认为泰罗的科学管理理论中已隐伏了大量朴素的人力资源管理思想,至今仍有很强的现实意义,本文从三个方面对此观点进行了阐述。     

IMPROVING LABOR PRODUCTIVITY: HUMAN RESOURCE MANAGEMENT POLICIES DO MATTER

Despite the consistency with which the theoretical and normative connections between human resource management practices and firm-level performance outcomes are made, empirical studies that link the two are sparse. This paper presents results from a study of 319 business units that addresses this gap. Hypotheses are derived from a resource-based perspective on strategy. Positive and significant effects on labor productivity are found for organizations that utilize more sophisticated human resource planning, recruitment, and selection strategies. These effects are particularly pronounced in the case of capital-intensive organizations.     

Effects of innovation types on firm performance

Innovation is broadly seen as an essential component of competitiveness, embedded in the organizational structures, processes, products and services within a firm. The objective of this paper is to explore the effects of the organizational, process, product and marketing innovations on the different aspects of firm performance, including innovative, production, market and financial performances, based on an empirical study covering 184 manufacturing firms in Turkey. A theoretical framework is empirically tested identifying the relationships amid innovations and firm performance through an integrated innovation-performance analysis. The results reveal the positive effects of innovations on firm performance in manufacturing industries.     

Contingencies within dynamic managerial capabilities: interdependent effects of resource investment and deployment on firm performance

Dynamic managerial capabilities focus on managers' resource‐related decisions. Asset orchestration, a central component of dynamic managerial capabilities and of resource management, highlights the importance of integrating (matching) resource investment and deployment decisions. Building on these recent theoretical advances, we examine the contingent nature of resource investment and deployment decisions. The results, based on a sample of banking firms, indicate that firm performance suffers when managers' investment decisions deviate from the norms of rivals for both human and physical capital. However, when deployment decisions support investment decisions, greater investment deviation, both high and low, generally enhances performance. Specifically, firm performance is optimized by making congruent resource investment and deployment decisions as opposed to maximizing or economizing either decision independently. Therefore, resource management via asset orchestration is vital for superior performance. Copyright © 2009 John Wiley & Sons, Ltd.     

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.     

对建筑企业预算人员的压力管理研究

预算人员在企业投标的过程中起着较为重要的作用，预算人员所肩负的重任往往使他们承受着较大的心理压力。而过度的压力会为个人及企业带来巨额的经济损失，适当的压力管理不仅有利于个人的身心健康，更重要的是可以为企业减少因压力而带来的损失，压力管理不仅与个人的压力应对行为有关，而且与企业所给与的支持程度有关。     

Competitive advantage and performance: the impact of value creation and costliness of imitation

We create an industrial organization type model to relate resources to the spread between product market demand and marginal cost. We define competitive advantage as the cross‐sectional differential in this spread, and performance as the longitudinal differential between what a firm appropriates in the product market and what it paid in the factor market. With factor markets imposing different costs on the innovator and potential imitator(s), competitive advantage, performance, and high resource value do not necessarily coincide. Also, the interaction between resource value and the cost of imitation is complex and affected by the number of firms in the industry. Copyright © 2009 John Wiley & Sons, Ltd.