Labour scarcity and the survival of small firms: a resource‐based view of the road haulage industry

This article is concerned with the problem of labour scarcity in the road haulage industry and how it affects small firms. The recruitment and retention of lorry drivers is critically important for the industry because driving is no longer seen as an attractive occupation, and there are worries that there is an insufficient supply of new recruits to replace the experienced drivers who are leaving the industry. In order to investigate this issue, we make use of a modified version of the resource‐based view (RBV) of the firm, focusing on the notion that a minimum set of ‘table stakes’(HR practices) is necessary for the continued survival of small firms. Drawing on longitudinal data from seven small road haulage companies, we argue that owner‐managers have developed an astute combination of path‐dependent and socially complex networking abilities, embedded within an extensive understanding of both product and local labour markets. We conclude that the RBV needs extending to make greater allowance for different ownership goals and diversity in markets, and to consider the forces that promote similarity rather than difference among firms within an industry.     

Work models in the Central Eastern European car industry: towards the high road?

The integration of the Central Eastern European (CEE) countries into the European Union (EU) has provoked debates about the danger of a ‘race to the bottom’ in Europe caused by the low wages and weak labour regulation and labour standards in CEE. This article examines the evolution of work models in the CEE automotive industry. It argues that the work models in CEE did not take the low‐road trajectory. Rather, a limited high‐road model emerged in the 1990s, which combined skilled labour and secure employment for the core workforce with a broad margin of precarious employment, low wages and limited employee voice. In the context of labour shortages after the accession to the EU of the CEEs, companies faced recruitment problems and labour conflicts, which threatened to destabilise this model. The first reactions of firms pointed towards the strengthening of the high‐road orientation, but the development remains unstable, not least of all because of the economic crisis beginning in 2009.     

Training and organisational innovations in a local industrial system: empirical evidence from Emilia‐Romagna1

The article studies the driving forces of firm training using a survey‐based dataset of manufacturing firms in the Emilia‐Romagna region, Northern Italy. The data are derived from the responses to a structured questionnaire administered in 2002 to the management of a representative sample of firms with more than 50 employees in the highly industrialised province of Reggio Emilia. Firms’ training choices are analysed using a theoretical/conceptual framework based on the notion of complementarity among productive factors. Training is provided as long as it favours the establishment of complementary relationships among the skills it develops and other inputs. The main factors associated with training include structural characteristics, HRM practices, workforce features, labour management and performance of the firm. Training activities emerge as being positively associated with organisational practices that affect the whole firm: workforce skill level, firm size, firm productivity and labour flexibility. The role of HRM practices in driving training is brought into question. These are key issues for the current debate on the development of local systems in the European and Italian context. The high and joint relevance of structural variables and labour demand‐related factors shows that regional industrial policies must support labour policies within an integrated policy effort aimed at increasing potential firm productivity.     

Firm foundations? Contingent labour and employers' provision of training in the UK construction sector

Based on an original survey of the UK construction industry this article examines the training disadvantages faced by contingent labour. This article addresses two key questions: first, is the provision of training different for directly employed labour and different forms of contingent labour? Second, what structural and organisational factors shape the provision of training to different contingent labour forms? The article finds that fewer firms provide training for agency, self‐employed and subcontract labour, compared to directly employed workers. Training for subcontract labour seems to reflect a longer‐term perspective towards the use of this labour form, while decisions to train agency and self‐employed labour appears to be driven by more short‐term considerations.     

The implications of the national minimum wage for training in small firms

This article investigates the extent to which small firms' training practices have altered since the introduction of the national minimum wage (NMW). Low pay is particularly widespread among small firms and they are thus likely to have been disproportionately affected by the NMW. Drawing on survey data collected from 258 establishments, the study provides information about training practices and identifies the steps that employers have taken to offset the impact of the NMW. The study also assesses the extent to which firms have made use of lower ‘development’ rates for young workers and new adult recruits, and whether this has been associated with an increase in training activity. The findings suggest that the NMW has provided a positive boost to training in some cases, although this has primarily come about as a result of efforts by firms to offset increases in labour costs, as opposed to take‐up of the development rate.     

A job to believe in: recruitment in the Scottish voluntary sector

The voluntary sector is an important source of employment in the UK and is increasingly providing services previously provided by the public sector. However, the ability of the sector to provide such services is dependent on the quantity and quality of suitable labour. This article examines recruitment issues in seven case‐study voluntary organisations offering social care in Scotland. Interviews were conducted with 137 managers and employees in these organisations. In addition, to assess potential labour supply, interviews and focus groups were conducted with careers advisers and potential employees. The findings suggest that, with a tightening labour market, uncompetitive pay and misconceptions about the sector, recruitment is a problem. However, job satisfaction is high for current employees, and potential employees whose values are commensurate with the sector might be attracted. The findings thus have relevance not just for the case‐study organisations, but for HRM in the voluntary sector generally.     

Line managers and the management of workplace conflict: evidence from Ireland

In an effort to improve understanding of the role played by line managers in firms, this article examines the role of line managers and supervisors in the management of workplace conflict in firms in the Republic of Ireland. The article finds that while line managers are commonly seen as playing a significant role, they are also seen to do so often without organisational supports in areas such as training and performance monitoring and are seen often to lack the confidence to act independently. Line and supervisory ‘engagement’ in conflict management is found to be positively associated with a series of organisational outcomes, including relative labour productivity, relative absence rates and the capacity to handle change compared with other firms in the same industry. Line and supervisory management engagement in conflict management is found in turn to be associated with the use of commitment‐oriented HR practices and with the adoption by firms of a proactive approach to conflict resolution.     

ORGANIZATIONAL CHANGE,SKILL FORMATION,HUMAN CAPITAL MEASUREMENT: EVIDENCE FROM ITALIAN MANUFACTURING FIRMS

Abstract This paper emphasizes the role of labour demand as a determinant of human capital formation. After a section in which the alternative conceptions on the functioning of labour markets are presented and different ways of measuring human capital are compared, an applied analysis is carried out in which we provide a labour‐demand‐oriented measure of human capital, as defined by the amount of specific skills firms generate through work‐based training (WBT) activities. By merging three rich firm‐level datasets, we estimate the impact of a set of variables supposed to affect both the propensity to invest in WBT and the intensity of training within the Italian manufacturing industry over the period 2001–2005. Special attention is devoted to the variables characterizing within‐firm organization of knowledge, organizational change and the formation of competence pipelines: among them, innovation, internationalization commitment, out‐sourcing and new hirings. The estimates show that the effect of innovation on WBT is higher when the introduction of new technologies is supported by organizational innovations. When looking at the nature of WBT, we investigate the different determinants of the firms' propensity to provide both in‐house and outside training. We measure training intensity in terms, respectively, of the number of provided training activities, private and total training costs and share of trainees.     

Management Strategy and Labour Flexibility In Japanese Manufacturing Enterprises

Since the 1970s Japanese labour relations and management practices have been scrutinised as Western firms search for ways to improve their productivity and international competitiveness. Pervading this literature is the view that the Japanese labour market is flexible and adaptable. the purpose of this article is to ascertain if flexibility is a key strategic objective of management and if Japanese firms adopt a core-peripheral approach to employment. the research is based on a survey of Japanese enterprises conducted and detailed interviews with senior managers. the major finding is that Japanese labour practices have a strategic component and that the use of casual and contract workers is consistent with a core-peripheral labour strategy.     

The impact of diversity and equality management on firm performance: Beyond high performance work systems

This article demonstrates that a diversity and equality management system (DEMS) contributes to firm performance beyond the effects of a traditional high‐performance work system (HPWS), which consists of bundles of work practices and policies used extensively in high‐performing firms. A DEMS typically includes diversity training and monitoring recruitment, pay, and promotion across minority or other disadvantaged groups. Our analysis of quantitative data from service and manufacturing organizations in Ireland confirms that HPWS practices are associated with positive business performance and finds specifically that DEMS practices are positively associated with higher labor productivity and workforce innovation and lower voluntary employee turnover. © 2010 Wiley Periodicals, Inc.     

Gender Roles and Organizational HR Practices: The Case of Women's Careers in Accountancy and Consultancy Firms in China

The Chinese finance industry has experienced significant expansion both within the state sector and into the private sector. Professional consultancy firms have also emerged as a result of the rising interest in the outsourcing of accounting and management services. However, the study of women's careers in the accountancy profession in contemporary China remains largely an uncharted territory. Drawing on data from 69 interviews with auditors in five firms, this article investigates the nature of work of external auditors in China and how women auditors view their work‐life choices and constraints. We explore the likely differences between male and female auditors in their career aspirations and the extent to which these self‐perceived differences are informed by social conventions of gender role, organizational practices, and personal preferences. The study has strong implications for human resource management in professional service firms in China, with particular reference to job design, work organization, career support, and work‐life balance initiatives. The study contributes to the debate on gender, employment, and career development in the accountancy profession in different parts of the world. © 2013 Wiley Periodicals, Inc.     

Shortages in an ageing labour market: an analysis of employers' behaviour

Different policies are being promoted to increase the labour supply in ageing labour markets. This article presents the results of a large-scale survey carried out among Dutch employers into their management of the constraints presented by a tight labour market. Organizations take different measures in response to staff shortages, which can in fact be distinguished as four strategies. The first relates to the recruitment of new groups of workers: groups that traditionally were perhaps not a preferred choice. The principal measures in this strategy are the recruitment of women and ethnic workers, and to a lesser extent the elderly. The second strategy focused on increasing the labour supply of existing workers. Overtime, encouraging part-timers to work extra hours and a structural increase in the length of the working week were part of this strategy. The measures constituting the third strategy were of a different type. Generally, these measures were adopted in order to cope with temporary peaks. Work was outsourced, a recruitment agency used, and higher wages offered to try to fill a vacancy. The fourth strategy focused on substituting technology/capital for labour. Regression analyses is carried out to explain which strategies organizations use to deal with shortages.     

Organisational flexibility and HRM in the hotel industry: evidence from Australia

The hotel industry is renowned for its poor pay and employment conditions and a low take‐up of HR practices. It is generally believed that the industry has relied on a lowcost, numerically flexible and disposable workforce. Recently, however, there has been debate concerning the extent to which managers in the hotel industry are embracing high commitment HRM and functionally flexible work practices. This study seeks to shed light on this question by analysing large‐scale survey and interview data on the hotel industry in Australia. While hotel workplaces in general continue to be associated with high levels of numerical and temporal flexibility and greater informality of HR policies, it was apparent that larger luxury hotels were adopting more systematic employee management techniques and strengthening their internal labour markets through functional flexibility initiatives. Such firms were also pursuing numerical and temporal flexibility strategies, although in rather different ways.     

Transferring Organizational Practices and the Dynamics of Hybridization: Japanese Retail Multinationals in China

Detailed case study research conducted at Japanese multinational retail firms in both their home country and their subsidiaries in China is undertaken to assess a range of prominent theoretical perspectives that have been used to account for the transfer of organizational practices. Approaches based upon culturalist, national business systems, industry sector, international division of labour, and agency perspectives are shown to be inadequate, individually, to account for the complex patterns of transfer, local adoption, and adaptation in these multinational companies. These findings highlight the value of conceptual bricolage and multi‐level analysis for developing explanations that can encompass and explicate complex patterns of hybridization. The paper also identifies important factors in the dynamics of hybridization that have been neglected or downplayed in much of the existing literature. These include the significance of context specific, firm level perceptions of sources of competitive advantage as a key motive encouraging transfer of parent company practices. Crucial factors constraining transfer are the practices and norms prevalent in local labour markets. Additionally, transfer by multinational companies to transitional economies with high levels of deinstitutionalization illustrates problematic dimensions for various theoretical perspectives, including influential neo‐institutionalist models.     

Managerial markets in transition in Central and Eastern Europe: a field study and implications

In this paper, we report findings from the first comprehensive study of managerial labour markets in Central and Eastern Europe, drawing on field data from 157 firms in six countries. Results indicated widespread and deep changes occurring in the region’s managerial markets. Despite differences among countries in reform and economic performance, we found these particular changes to be surprisingly common across the countries studied. They included rapid rises in salary and benefit levels, narrowing of some skill gaps, shifts to more sophisticated methods of recruitment and an overall move towards Western management practices. The study also revealed severe shortages of qualified managers in all the countries studied. The resulting tightness in the managerial labour markets was reducing only modestly, despite other improvements. Foreign and joint-venture firms were relying disproportionately on expatriate managers, and may not have been sufficiently developing locals. We argue that, partly because of this, the distortions in pay, promotions and performance resulting from these tight markets are likely to persist for some time.     

The Impact of Human Resource Practices on Actual and Perceived Organizational Performance in a Middle Eastern Emerging Market

This is a study centered on the impact of the specific set of HRM practices on organizational performance (OP) within an emerging‐market setting. It seeks to explore which HR practices are most closely associated with better OP within the financial services industry in Jordan based on a survey of managers and the annual reports of the companies encompassed by the study. It was found that the only HR practice seen to consistently impact on OP was training; in other words, we did not encounter any recognizable “bundle” of HR practices that optimized OP across the sector. We argue that this reflects the weaker and more partially coupled nature of institutions in many emerging markets, which makes it difficult to generate the type of complementarities associated between regulation and practice in mature markets. It also reflects the limited transferability of perceived best practice models in the context of emerging‐market settings. Although belied by objective firm performance data, many respondents believed that it was not only training but also the extensive usage of extrinsic incentives (pay and promotion) that would translate into superior results. This highlights the limitations of relying on managerial reported performance data in exploring the consequences of specific HR practices. © 2015 Wiley Periodicals, Inc.     

Adjusting to the national minimum wage: constraints and incentives to change in six low‐paying sectors

Interest in the national minimum wage (NMW) includes not only its direct impact on employment and wages, but also its indirect impact on organisational performance resulting from a reorientation of employer behaviour with regard to employment practices and product market competition. Drawing on data from small firms in six low‐paying sectors, this article identifies three key constraints that have undermined the possible effect of the NMW in generating a virtuous cycle between employment practices and product market approach. These constraints relate to product market conditions, employer norms and labour market institutions (especially training).     

Teacher shortages and the business cycle

The ability of the public sector to recruit skilled workers is important for the quality of public sector services. Centralized and rigid pay systems in the public sector might reduce labour supply and lead to shortages of qualified personnel in areas and periods with strong outside labour markets. This paper shows that teacher shortages measured by the share of teachers without approved education are strongly procyclical in Norway. Using a large panel of Norwegian local governments for 1981–2002 and exploiting the rigid wage system, we find a sizeable negative relationship between teacher shortages and the regional unemployment rate.     

Assessing the effects of measurement errors on the estimation of production functions

This article explores to what extent the poor results that are often found when estimating parameters of production functions can be attributed to measurement errors, due to the use of common price deflators across firms. Because of the lack of detailed micro‐economic data, econometricians have to rely on industry‐wide deflators when computing outputs and intermediate inputs. A unique feature of the longitudinal data used in this paper is that it reports firm‐level prices. This allows for a comparative assessment of production function parameters where the outputs and intermediate inputs are computed using both firm‐specific prices and industry‐wide deflators. The empirical results presented in this paper show that the use of common deflators across firms leads to lower scale estimates, mainly because of a large downward bias in the estimated coefficients for labour. Copyright © 2006 John Wiley & Sons, Ltd.     

Skill gaps in the workplace: measurement,determinants and impacts

Optimal training decisions require employers to have accurate information about their workers’ training needs. However, little is known with regard to the key factors determining the accurate transmission of worker training requirements. Using one of the few linked employer–employee surveys in the world, the 2006 Irish National Employment Survey, this article identifies the key factors determining the correct identification of skill gaps within firms. The impact of skill gaps on average training expenditures and labour costs is also measured. The research finds that both HRM and collective bargaining arrangements are important factors in facilitating the accurate identification of skill gaps within firms. The analysis confirms that skill gaps are a key determinant of training expenditures and tend to raise average labour costs. Finally, the evidence suggests that employee perceptions of skill gaps may be prone to higher levels of subjective bias relative to those based on the employers’ views.