Human factors in the transfer of the ‘Japanese best practice’ manufacturing system to Singapore

A detailed examination of the practices reported by managers in thirty-one affiliates of Japanese companies engaged in manufacturing in Singapore revealed a high degree of conformity with the Japanese best practice (also known as ‘lean production’) model in the way work is organized and in the shop-floor level manufacturing practices, but greater conformity to host country norms in the HRM practices applied to the local work-force. This is consistent with the patterns reported in the existing literature regarding Japanese transplants in other countries, including the US and the UK. Strong statistical relationships were found in the Singapore study among the work organization cluster, the manufacturing practices cluster, and the performance outcomes. No significant relationships were found between the HRM cluster and any of the ‘downstream’ variables (work organization, manufacturing practices or performance outcomes), but relatively heavy reliance on expatriates was found to be highly related to work organization, manufacturing practices and performance outcomes. These findings suggest that heavy reliance on expatriates may function as an alternative to Japanese-style HRM practices in situations where it would be unduly difficult or costly to extend the whole package of Japanese-style HRM practices to the local work-force.     

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.     

Resilience and the (micro-)dynamics of organizational ambidexterity: implications for strategic HRM

Abstract

In the twenty-first century, resilience has emerged as a seminal and important topic linked to calls for adaptability, well-being and organizational performance. Extant strategic human resource management (HRM) literature and practices have developed many insights into resilience. However, overall, they have a propensity to conceptualise resilience as being associated with ‘macro-’ and ‘extreme’ situations. This paper complements the prevailing perspective by developing a micro-focus on resilience through the conceptual framework of organizational ambidexterity surfacing under-examined individual resilience in connection with HRM practices. Methodologically, the paper adopts a qualitative approach presenting data from two illustrative contexts: an ‘everyday’ quasi-governmental institution and a prima facie ‘extreme’ pan-international military organization. Using template analysis, a number of valuable themes and similarities are identified. The findings and discussion underline the managerial challenges in handling organizational ambidextrous dynamics and tensions surrounding resilience, positive and sceptical approaches in relation to individual and organizational stances towards HRM practices. As such, the results point at value in HRM managers and practices recontextualising and appreciating ‘extremes’ and resilience more as an everyday (rather than exceptional) phenomenon wherein myriad micro-moments are highly significant in constructing and influencing macro-contexts. This also implies a need to see cynical resistance as normative rather than automatically negatively.     

When good HR gets bad results: exploring the challenge of HR implementation in the case of workplace bullying

Research on the relationship between HRM and organisational performance has highlighted a gap between intended and implemented HR practices. However, this gap has rarely been explored systematically, and the consequences of the effectiveness of the implementation process for relevant outcomes remain poorly understood. This article addresses this issue by examining the process and quality of HR implementation. Drawing on a model of HR implementation, it presents a detailed case study of the implementation of HR practices relating to workplace bullying. Findings reveal that while the policy reflected best practice, implementation was uneven, resulting in persisting high levels of bullying which negatively affected staff well‐being and performance. The results indicate that it is misleading to look just at HR practices, and that even ‘best HR practices’ are unsuccessful unless implemented effectively. It is argued that a greater focus on HR implementation will improve our understanding of the HRM – performance relationship.     

Non-wage benefits,corporate ownership and firm performance in post-communist economies: evidence from Ukraine

The economic reforms in the transition economies of Central and Eastern Europe have fundamentally reshaped ownership and governance of economic production, notably through the privatization of former state-owned enterprises. These reforms were expected to transform management practices by displacing ‘cradle-to-grave’ welfare arrangements administered by state-owned enterprises. Using data drawn from two large samples of Ukrainian establishments, we investigate, in two different time points, the relationship between non-wage benefits and firm performance during the period of transition to a market economy (1994–2004). We found that non-wage benefits continued to be a critical feature of HRM practices in Ukraine during this period, and were positively associated with firm performance.     

Vive les différences? Voice in French MNCs' overseas workplaces: a comparative study of voice in French,German and US subsidiaries in the UK

Foreign-owned firms help to disseminate management practices across UK companies; this includes the ability of indigenous firms to learn improved human resource management (HRM) practices from leading foreign companies. Analysing the transfer of HRM policies forms an important strand of the international HRM and comparative capitalisms literatures; however, large-scale, comparative studies of voice patterns in German, US and, in particular, French subsidiaries in the UK are limited. This paper draws on a major survey that includes the, to date, largest sample of French MNC subsidiaries. It does not simply identify the existence of different kinds of voice mechanisms, but examines how these different practices come together in the implementation of subsidiaries' voice policies. This enables the detection of subtle, but important, differences in the subsidiaries' voice practices. French subsidiaries are significantly less likely to pursue a partnership approach to voice than their German and US counterparts. French and US establishments are significantly more likely to adopt a ‘bleak house’ approach than German ones. Importantly, these key differences only emerge at a fine-grained level of analysis that examines how subsidiaries implement voice practices.     

Lost in translation: exploring the link between HRM and performance in healthcare

Using data collected in 2004 from 132 Victorian (Australia) public healthcare providers, comprising metropolitan and regional hospital networks, rural hospitals and community health centres, we investigated the perceptions of HRM from the experiences of chief executive officers, HR directors and other senior managers. We found some evidence that managers in healthcare organisations reported different perceptions of strategic HRM and a limited focus on collection and linking of HR performance data with organisational performance management processes. Using multiple moderator regression and multivariate analysis of variance, significant differences were found in perceptions of strategic HRM and HR priorities between chief executive officers, HR directors and other senior managers in the large organisations. This suggested that the strategic human management paradigm is ‘lost in translation’, particularly in large organisations, and consequently opportunities to understand and develop the link between people management practices and improved organisational outcomes may be missed. There is some support for the relationship between strategic HRM and improved organisational outcomes. Implications of these findings are drawn for managerial practice.     

A theory of the firm's demand for HRM practices

Empirical data are presented that reveal a large variation in the pattern of HRM practice adoption across firms. The paper then develops an economics-based theory that explains this pattern. The model broadens the HRM concept; models the linkage between HRM practices and firm performance (the ‘black box’); generates an HRM input demand function and demand curve; formalizes the concept of strategic HRM; suggests a new empirical tool for HRM research; generates new hypotheses and insights on the nature of the HRM–firm performance relationship; suggests that existing theories of the HRM–firm performance relationship are seriously mis-specified; and posits that on theoretical grounds the effect of more HRM on firm performance in long-run competitive equilibrium is not positive but zero.     

National Ownership and Hr Practices In Uk Greenfield Sites

This article reports research on the influence of country of ownership on HR policy and practice in UK establishments. It is hypothesised that establishments will conform to national stereotypes in the practices they adopt and that establishments owned by firms from the USA, Japan and Germany, will, albeit in different ways, adopt more HR practices and report better outcomes than their UK counterparts. the research is based on the Third Workplace Industrial Relations Survey and on a sample of new establishments, opened in the 1980s. Analysis of the data from the 1990 Workplace Industrial Relations Survey finds no evidence that foreign-owned firms are more likely to adopt HR practices. the study of new workplaces finds that UK-owned establishments are as enthusiastic as the foreign-owned in their adoption of HR policy and practice. There is also evidence to support, at least partially, the stereotypes of the American and Japanese approaches. However German-owned establishments do not conform to the expected home country pattern. They are the least likely to adopt HR practices and also report poorer HR and employee relations outcomes. the study challenges the assumption that foreign-owned firms in the UK are more likely to adopt HR practices and indicates that we must be cautious in applying stereotypical national approaches to HRM both among foreign and UK establishments.     

Configurations of human resource management practices: a model and test of internal fit

This study examined human resource management (HRM) configurations. A typology consisting of four bundles of aligned HRM practices (labelled the bureaucratic, market, professional and flexibility bundle) linked to organizational structures was developed. Support for the proposed ideal-typical bundles was found in an assessment by a panel of experts. Next, the distance between the ideal types and actual bundles of HR practices was assessed for 175 organizations. For each, senior HR managers' ratings of HRM practices and CEO ratings of outcomes were obtained. Support was found for two of the four proposed types and about one-third of the firms showed some fit with one of these two types. The ‘fit in general hypothesis’ (i.e. the closer an observed HR bundle resembles any of the ideal types, the higher organizational performance) did not receive support. However, fit with a specific type of bundle (the professional bundle) did relate positively to outcomes. Organizations with observed HRM practices fitting the professional bundle score significantly higher on measures of firm performance, employees' going beyond contract, and firm innovativeness.     

Actions speak louder than words: how employees mind the implementation gap

Abstract

Integral to employees’ working lives are the HR policies and more importantly, the practices that follow those and their implementation, which employees experience directly. To date, research on HR implementation considers how HRM is ‘done to’ employees by management and therefore ignores the agency of individuals to shape how HRM is ‘done to them’. Taking the perspective of employees, in a qualitative study of female lawyers, this paper examines employees’ roles in shaping HR implementation, addressing a lack of understanding about the role of ‘others’ in the process. Drawing on the concept of social power, the article focuses on the implementation of agile working practices within UK-based law firms. It finds that despite lacking legitimate position power to influence processes, employees draw on a variety of other power sources (e.g. referent, information, coercive) and tactics (e.g. leveraging membership of professional networks) in order to influence their working environment with respect to HR policy and practice, particularly in response to perceived implementation gaps. The current study underlines that employees may be integral to bridging the gap between policy and practice and therefore to ensuring the link between HRM and organisational performance. It also proposes that behavioural responses to HR practices should be considered in future theorising of the HRM-performance relationship.     

An empirical study of high performance HRM practices in Chinese SMEs

This paper explores the performance effects of human resource management (HRM) practices in 74 Chinese small and medium-sized enterprises (SMEs). Four high performance HRM practices are identified: performance-based pay, participatory decision-making, free market selection, and performance evaluation. Regression analysis results support the conventional idea that the adoption of HRM practices generates better HRM outcomes and, in turn, better HRM outcomes contribute positively to firm performance. However, not all HRM practices, and their effects, led to improved SME performance. Among the Chinese SMEs investigated, a high level of employee commitment was identified as being the key HRM outcome for enhancing performance.     

The role of HRM practices in product development: Contextual ambidexterity in a US MNC’s subsidiary in India

Abstract

Recent studies have started exploring the linkages between organisational ambidexterity (OA) and HRM practices. OA is noted as a critical resource in achieving product, process, and business model innovations. By adopting an inductive case study of a US MNC subsidiary in India, we found empowerment-focused HRM practices were being used for exploration of new ideas and efficiency-focused HRM practices were adopted for the exploitation of the organisation’s existing strengths. Empowerment-focused HRM practices created a culture of openness and risk-taking, which facilitated the creation of an ambidextrous context. Further, ambidextrous learning was moderated by the adoption of a managerial/leadership style that focused on ‘mirroring competencies’ between the parent operation and its subsidiary. HRM practices were aimed at developing behaviours that valued the team-based co-development of graphic processor designs by means of a ‘parallel processing’ approach to product development. Additionally, the HRM practice of offering intrinsic employee rewards and both informal and formal training facilitated OA in delivering product innovation. This study represents a pioneering exploration of multiple levels of analysis (individual, functional, and organisational) for product innovation through the lenses of ambidexterity, innovation, and HRM practices. The implications for both theory and practice are also discussed.     

Human resource management and firm performance in Europe through the lens of business systems: best fit,best practice or both?

This study uses the lens of Business Systems theory to explore the importance of geographic context on the link between human resource management and organizational performance. Basing the analysis on ‘HRM bundles of competitive advantage’, drawing evidence from a large-scale survey of European private sector businesses, and using multiple methodologies, we find three distinct geographic regions and 21 ‘HRM bundles of competitive advantage’. Of those bundles 10 were significantly related to performance in one or more regions. The results raise issues about the universal applicability of HRM-performance research and have implications for the standardization of HRM policies and practices within internationally operating organizations.     

‘Intended’ and ‘implemented’ HRM: the missing linchpin in strategic human resource management research

We argue that inconclusive findings in the SHRM literature regarding the relationship between HRM systems and organizational performance may result primarily from methodological weaknesses and a failure of researchers to distinguish between HR practices intended by the organizations and those actually implemented. Rather than relying upon a single respondent per organization as is the norm, we contrast reports of both managers and non-managers from inside and outside HR departments to highlight differences between intended and implemented HRM. The findings, arrived at with the help of 195 interviews, 508 questionnaire responses and several company documents, support our expectation: implemented HRM may be substantially different from intended HRM; consistent implementation increases employee satisfaction with HRM, which is positively related to organizational performance. The current study thus highlights new factors that require attention in developing HR–performance analyses and also suggests that a mere imitation of HRM in the hopes of improving organizational performance creates no value. It is crucial that HR departments and managers remain committed and supportive to the development of effective HRM systems by focusing upon actual ‘implementation’ within their organizations.     

HRM systems between control and commitment: occurrence,characteristics and effects on HRM outcomes and firm performance

In the literature, it is often assumed that traditional, control‐oriented HRM systems are increasingly being replaced by commitment‐based HRM systems because the latter generally result in higher firm performance. However, an HRM system's effectiveness may depend on an organisation's external and internal context, and neither control nor commitment HR systems are without disadvantages. Thus, the empirical validity of this claim is not clear ex ante. This paper analyses the empirical diffusion and determinants of control and commitment HRM systems in Germany as well as their impact on HRM outcomes and firm performance. The findings indicate that between the two extreme forms of high‐control and high‐commitment HRM systems, there are two hybrid forms (long‐term‐oriented control system and regulated commitment system) that combine elements of both ‘pure’ systems. Commitment HRM systems outperform the high‐control HRM system concerning many HRM outcomes and firm performance measures. However, in direct comparison, the high and the regulated commitment HRM systems do not show substantially different outcomes, indicating that there is no one best way.     

High reliability Human Resource Management (HRM): A system for high risk workplaces

High Performance Work Systems (HPWS) research is based on the search for the most suitable bundle of complementary practices appropriate for the organisation and its operating environment. We examine the contents of a HPWS in organisations seeking impeccable safety and reliability as their foremost ‘performance’ outcome. We propose a ‘High Reliability HRM’ framework, and examine the degree of implementation in a three case study of Australian state emergency services organisations. The findings highlight HRM practices inconsistent with the framework, and illustrated by rich interview accounts, we detail associated negative implications for employee behaviour and attitudes. We contribute to HPWS research by empirically examining how reliability-seeking organisations conceptualise and implement HRM systems. This study emphasises how inconsistency in HRM practice bundles can pose a threat to reliable service provision, a critical finding for emergency services and reliability-seeking organisations more broadly.     

Innovation in work practices: a practice perspective

Dynamic capability theory argues that organizations' internal capabilities enable sustained competitive advantage. Innovations in work practices (commonly termed ‘high performance’, ‘high commitment’ or ‘high involvement’ practices) are an important source of these internal capabilities but research evidence shows low levels of penetration. Using a practice perspective, case study analysis of 7 establishments in the aerospace sector identifies three themes that are under-attended to in current research on innovations in work practices: industry and production context; distributed nature of management activity, and social embeddedness. Implications for future research are discussed.     

Front‐line managers as agents in the HRM‐performance causal chain: theory,analysis and evidence

Research on the link between HRM and organisational performance has neglected the role of front‐line managers, yet it is these managers who are increasingly charged with the implementation of many HR practices. Using an employee survey in 12 ‘excellent’ companies we explore the extent to which employee commitment towards their employer and their job are influenced by the quality of leadership behaviour and by satisfaction with HR practices. Both have a strong effect on employee attitudes. The article concludes with a case study of a planned effort to improve front‐line managers' skills in people management.