Total quality management and human resource systems: an international comparison

This paper takes advantage of a unique international data set to examine the determinants of the adoption and sustainability of total quality management techniques, focusing in particular on the role played by human resource professionals and practices. The data come from a 1991 survey conducted by Ernst and Young and the American Quality Foundation covering the use of TQM tools in the computer, auto, health care and banking industries in Japan, the United States, Canada and Germany.

The research distinguishes between two ways of implementing total quality management – one approach conceptualizes TQM as a relatively limited set of technical engineering changes while the second implements these technical changes as part of a larger transformation of the organization of work. We find support for the second approach in that the number of employees using quality tools and the number of quality tools in use is greater and lasts longer in firms that also have team-based human resource systems for frontline employees, with team structures, suggestion systems, meetings and group rewards. This central finding holds across all countries and industries studied.

We also find that achievement of these changes requires the commitment of organizational stakeholders to incorporate the interests of employees in strategic decision making. Though union presence alone does not predict the adoption or sustainability of these innovations, partnership between management and union does have a positive effect. The level of strategic influence of the human resource department also influences innovation, though in ways that differ across countries and industries.

The findings suggest the value of comparative studies and of research focused at exploring sub-national variation. The findings also suggest the value of a longitudinal study of the sustainability of innovation.     

Usefulness of financial ratios in a single industry

This paper reports the findings of a study on the relationship and ratio grouping of a well-published set of financial ratios within the context of a single, homogenous industry. The findings provide some insight into the validity of using single-industry ratio averages as standards to evaluate individual firm performance. Factor analysis was used to study the interrelationship among the ratios and to determine whether these ratios group in the “traditional” category of ratios suggested in the financial statement analysis literature. This analysis was followed by a cluster analysis of the composite ratios derived from the factor analysis to determine whether any consistent and stable statistical grouping of firms developed over time within the industry. These analyses were done for 72 companies for the period 1966–1975 using Dunn and Bradstreet ratios and Compustat data.     

Is the doctor in? A relational approach to job design and the coordination of work

When designing jobs, the degree of specialization is a key consideration. Though functional specialization allows workers to develop deep areas of expertise, it also increases the challenge of coordinating their work. In this article, we propose the concepts of stage‐ and site‐based specialization and posit that together they can counteract the divisive effects of functional specialization. Taking advantage of a natural experiment in physician job design at a Massachusetts hospital, we explore the impact of stage‐ and site‐based specialization on coordination and performance outcomes. Building on recent interest in relational approaches to job design, this study is the first to link relational job design to relational outcomes such as coordination. Our findings have practical implications for job design in professional service settings such as education, consulting, and health care. © 2008 Wiley Periodicals, Inc.     

Automobile styling as a shift variable: an investigation by firm and by industry

This paper reports the results of a test of the ability of the Stock Exchange industrial Classification system (SEIC) to provide homogeneous industry groupings of firms. Aggregation into ‘meta-industries’ is also explored. The analysis shows that while there are significant differences between the 14 SEIC industries considered, several appear to be largely nonhomogeneous with respect to certain of their fundamental economic and structural characteristics. Given this lack of homogeneity it is arguable that the SEIC has fallen shorts of its stated objectives with potential implications for the allocation of resources in UK capital markerts. The greater homogeneity of the four meta-industries derived indicate that use of industry groups at a higher level of aggregation than the SEIC might be more appropriate. A subsidiary objective of the investigation was to examine the potential benefits from adopting a quadratic discriminant methodology as opposed to the more conventional linear rule for studies of a related nature. Our results proved to be consistent with those found in other disciplines which demonstrate that the quadratic approach may have relatively little to offer in practice as opposed to theory.     

Organizing work to support relational co-ordination

Service operations that are highly uncertain, interdependent and time constrained require a competency that I call relational co-ordination – co-ordination that is carried out by front-line workers with an awareness of their relationship to the overall work process and to other participants in that process. Relational co-ordination is characterized by frequent, timely, problem solving communication, and by helping, shared goals, shared knowledge and mutual respect. Previous work reports significant positive effects of relational co-ordination on performance in such settings. This paper addresses how organizations achieve, or fail to achieve, high levels of relational coordination. I find significant correlations between relational co-ordination and the use of cross-functional liaisons, IT, supervisors, cross-functional performance measurement, employee selection, conflict resolution and flexible work roles. I explore the implications for team effectiveness and organization design, and for the theory of organizational social capital.