Examining human resource management outsourcing in Hong Kong

This study explored the state of human resource (HR) outsourcing in the Asian context, a particularly important subject given its rapid proliferation in Europe and North America, the inconsistent and limited evidence from prior research, and its strategic importance to the human resource management (HRM) function. Drawing on both quantitative and qualitative data and the transaction cost, resource-based, and institutional perspectives, we found that although respondents were generally favourable towards outsourcing, that in practice its adoption and diffusion were in a nascent stage in Hong Kong. Decisions to outsource were, by and large, incremental and experimental and influenced by a range of contextual factors (e.g., availability of in-house expertise, skills and creativity, strategic priorities, legislation (coercive), availability of external service providers, and industry and peer (mimetic) influence). Despite considerable pressure to cut costs, instead of outsourcing in the first instance, firms placed greater emphasis on maximising internal resource utilization (insourcing). Implications for practice and suggestions for future research are also provided.     

Mutation of HRM practices in Russia: an application of CRANET methodology

This article describes the challenges facing established practices and patterns of human resource management (HRM) during the economic recession. It is based on the results of the CRANET survey, administered in Russia in the third quarter of 2008, on the 2008 CRANET data available for Bulgaria and on survey of companies' executives, implemented in the first half of 2010. We found that Russian HRM practices that are based on low formalization of performance assessment, great versatility of payment arrangements, and high flexibility of working and contractual arrangements enabled companies to adapt to the recession conditions without massive layoffs.     

The effects of cultural orientations on preferred compensation policies

This study aims at examining the relationship between cultural orientations and preferences for compensation policies. The study involves two concepts: culture and compensation. In the first part of this article, these concepts are framed; and in the second part, after direct measurement of both cultural traits and compensation preferences, their relationships are tested and discussed. Our findings suggest that while culture represents an important factor in human resource management, its effects on compensation preferences should be viewed as partial and moderate. Further analysis reveals that the effects of culture on preferred compensations may vary from one orientation to another. While some cultural orientations are more likely to affect pay policies, others seem to be of lesser importance. Similarly, it is found that compensation policies are not affected equally by cultural orientations. By analyzing the extent and direction of cultural effects, the study provides some insights into designing compensation policies and points out the managerial implications.     

The scope and trajectory of strategic HR research: evidence from American and British journals

Many have argued that the field of human resource (HR) management has successfully transformed itself from the functional orientation of personnel management to a strategic orientation that is more relevant to the goals and effectiveness of business in the current competitive landscape. In this article, we assess that proposition by reviewing almost 1000 award-winning papers and articles published in leading US and British management journals since the mid-1990s. We use this data to evaluate the scope of HR research in the field, the extent to which it has changed, and whether changes in this research have kept pace with changes that organizations face in the current global economy. Consistent with the strategic HR framework, we find that the question of the link between HR and performance has, indeed, become the dominant one among both micro- and macro-organizational scholars. Contrary to expectations, however, micro-level research continues to be more prevalent than macro-organizational studies; and we find little change in the subjects and sites of research or theoretical approaches adopted. These characteristics of HR research are in sharp contrast with the dramatic changes occurring in the world of work – suggesting a mismatch between what HR scholars study and what issues and dilemmas organizations face. Finally, by assessing similarities and differences between the American and British scholarship, we are able to suggest a research agenda, more relevant to the current global economy, which builds on the strengths of each tradition.     

Accidental,unprepared, and unsupported: clinical nurses becoming managers

To what extent have hospitals developed their skilled clinicians to perform the administrative and human resources (HR) manager role of the ward manager? We consider this research question through an analysis of an acute hospital called ‘The Hospital’ where the executive team is aiming to adopt a form of high-performance work system (HPWS). We focus primarily on explanations in terms of conditions, rather than the personalities of individual managers, which are most powerful in shaping their behaviour. There has long been a failure of hospitals (and other employing organisations) to develop fully the skills required by employees before they become line managers. Line managers are a critical link in the high-performance chain and this study illustrates that, despite their rhetoric, hospitals may still have much potential for implementing schemes to develop nurses further to prepare them for line-manager positions and to support them after they move into such roles. We infer from this study that such hospitals may not yet have completed the journey to having HPWS. Hence, there is still much scope for such hospitals to progress and enjoy the benefits that proponents claim for HPWS.     

Linking Belgian employee performance management system characteristics with performance management system effectiveness: exploring the mediating role of fairness

Based on expectancy theory, goal-setting theory and control theory, we propose a model in which perceived fairness mediates the relationship between characteristics of employee performance management (PM) systems and their perceived effectiveness by employees. PM system characteristics we propose are the frequency and length of formal reviews, the frequency of informal reviews and feedback, whether the formal conversation focused on evaluation or development and finally the degree of participation. The model was tested on a cross-industry sample of 3192 employees in Belgium. The measurement and structural models were simultaneously tested using structural equation modeling, and we used a bootstrapping approach to test the mediation hypothesis. Our findings indicate that performance review focus and employee participation strongly relate to perceptions of appraisal fairness and PM system effectiveness and that the frequency of informal performance reviews is stronger related to PM system effectiveness than the frequency of formal performance reviews. This suggests that the manifest expressions of PM have more impact on PM system effectiveness rather than the more latent characteristics of PM systems. The findings advance research to the role and functionality of PM systems by showing that (a) the manner in which PM systems are shaped and executed is of fundamental importance for their effectiveness, (b) fairness partially mediates the relationship between PM system characteristics and their effectiveness and (c) the three motivational theories appear useful for understanding the consequences of PM practices on individual employees.     

The ‘old’ and ‘new’ competition and Malaysian manufacturing firms: a case study

The majority of empirical studies dealing with production processes, work organization and industrial relations practices have been conducted in advanced industrial nations. This article reports on a study of the changing nature of work organization and industrial relations policies in the developing economy of Malaysia. It explores the broad patterns of change in human resource management, technology and work organization among Malaysian manufacturing firms in the context of Best's ‘old’ and ‘new’ competition. The question that arises is: does the evidence reveal that Malaysia is embracing elements of the ‘new competition’, or is it still locked into a regime of mass production, or both? The article argues that the ‘old’ and the ‘new’ competition should not be treated as a simple, straightforward duality model of development. The distinction between the two approaches is sometimes blurred and not so clear-cut. The case study observes that both systems could be operating side by side at the same time within an organization. Since the Malaysian manufacturing sector is expected to shift from simple assembly and process-type operations using labour-intensive techniques to the more advanced and higher value-added industries, greater investment in HRD to upgrade the skills of the work-force and the adoption of appropriate industrial relations policies that emphasize decentralization, greater employee involvement and continuous innovation will become crucial. To be able to compete successfully in the global economy would require a change in focus in the adoption of industrial relations and human resource development policies. For Malaysia to realize its aspiration to become an industrialized and developed nation by the year 2020 would require radical changes in those policies within the context of an integrated approach to economic and industrial planning.     

French multinational companies’ strategies and co-ordination mechanisms: the role of human resource management in Europe and Nigeria

The everchanging European context may well lead to the evolution of MNCs’ strategies in Europe and to the evolution of the control mechanisms within their subsidiaries. The author analyses the issue from the angle of human resources management, considered as an informal control tool that is widely recognized by both scholars and managers. This research therefore aims at analysing whether or not and how HRM systems embody a possible integration process in the European economic space. The methodology is based on a case study from a French multinational company belonging to the automobile industry while the investigation, a comparative analysis of the headquarters-subsidiaries relationships in England, Spain and Nigeria, points out the specificity of the European context regarding corporate strategy orientations, subsidiary roles and personnel transfer policies. The major conclusions from such an analysis suggest a framework that gives prominence to the differentiation of the management process between Europe and Nigeria.

These results confirm previous literature on co-ordination mechanisms in complex business organizations.     

Employee perspectives on communication and consultation: findings from a cross-national survey

Highlighting the ongoing significance of national models of employment relations, this paper examines whether variation in communication and consultation practices between countries is reflected in employee perceptions. Drawing upon a survey of around 3,500 employees in four European countries – France, Germany, Italy and the UK – the paper explores whether workers' views on various aspects of communication and consultation are similar or different. It finds that there are certain similarities, with particular types of information and forms of communication being valued across the countries. However, differences are also identified. It is suggested that national institutions may well shape employee expectations about the nature of communication and consultation, feeding through to how satisfied they are with these processes.     

The Asian crisis and the implications for human resource management in Vietnam

Vietnam has experienced substantial economic growth since the mid-1980s when economic reform (doi moi) started. However, the Asian crisis had some negative impacts on the Vietnamese economy. Both the external environment and internal competition added more pressure on companies to speed up organizational reform. Transforming the old personnel management into new flexible human resource management system is one of the central reform agendas among companies in order to survive the market competition. This research analyses the nature of the changes in the area of human resource management under the influence of market-oriented reform that puts emphases on flexibility and competitiveness in the new millennium.