SOTA 2004 Managing for Value(s) in a Commoditized World

Since its inception in 1995, Human Resource Planning Society’s State of the Art/Practice study has become an important way that the Society seeks to generate and disseminate information critical to effective HR strategy decision making. The study began as an effort to identify the major issues driving organizations and causing transformations in HR (Caimano, Canavan, & Hill, 1998; Ulrich & Eichinger, 1995; 1996; Wright, Dyer, & Takla, 1998). More recently, the SOTA/P has focused on drilling down more deeply to understand HR’s role in critical strategic issues such as e-business (Wright and Dyer, 1999) and using HR to build a customer-focused company (Overholt and Grannell, 2002). The 2004 SOTA/P returns to the original roots, and seeks to describe the competitive landscape, and the implications of these trends for HR

Partner or Guardian? HR’s Challenge in Balancing Value and Values

[Excerpt] Is HR at a crossroad? A number of signs seem to be pointing that way. Increasingly HR executives are faced with a critical decision: Will they continue on their journey to be business leaders, , with full sway and equal influence in organizational decision making, or will they take the short-cut by sacrificing professional ethics and values for a seat at the table. This challenge is exemplified by the story of Delta Airlines

Toward a Unifying Framework for Exploring Fit and Flexibility in Strategic Human Resource Management

This paper presents a framework for studying the concepts of fit and flexibility in the field of Strategic Human Resource Management (Strategic HRM) focusing on HRM practices, employee skills, and employee behaviors and reviews past conceptual and empirical work within that framework. A model of Strategic HRM is presented and this model is used to explore the concepts of fit and flexibility as they apply to Strategic HRM. The concepts of resource and coordination flexibility are applied to Strategic HRM, and the implications of the framework for both the practice of and research on Strategic HRM are discussed

Human Resources Strategy: The Era of Our Ways

The purpose of this chapter is to discuss some of the main features and trends in human resources (HR) strategy. Inasmuch as people are among the most important resources available to firms, one could argue that HR strategy should be central to any debate about how firms achieve competitive advantage. But this “people are our most important asset” argument is actually fairly hollow in light of the evidence. Far too many articles on HR start with this premise, but the reality is that organizations have historically not rested their fortunes on human resources. The HR function remains among the least influential in most organizations, and competitive strategies have not typically been based on the skills, capabilities, and behaviors of employees. In fact, as Snell, Youndt and Wright (1996:62) noted, in the past executives have typically tried to “take human resources out of the strategy equation--i.e., by substituting capital for labor where possible, and by designing hierarchical organizations that separate those who think from those who actually do the work.

A Resource-Based View Of International Human Resources: Toward A Framework of Integrative and Creative Capabilities

Drawing on organizational learning and MNC perspectives, we extend the resource-based view to address how international human resource management provides sustainable competitive advantage. We develop a framework that emphasizes and extends traditional assumptions of the resource-based view by identifying the learning capabilities necessary for a complex and changing global environment. These capabilities address how MNCs might both create new HR practices in response to local environments and integrate existing HR practices from other parts of the firm (affiliates, regional headquarters, and global headquarters). In an effort to understand the nature of such capabilities, we discuss aspects of human capital, social capital, and organizational capital that might be linked to their development. Page

Current Approaches to HR Strategies: Inside-Out vs. Outside-In

In an effort to determine the best practices with regard to Human Resource (HR) strategies, we conducted interviews with HR executives knowledgeable about their HR strategies from 20 companies, and gathered archival materials such as the HR strategy documents from 9 of the companies. We found that the content, process, and evaluation of the HR strategies can each be classified as focusing primarily on the HR function, the people of the firm, or the business. We provide some examples of ways that firms can move from an HR focused to a business-focused HR strategy

The HR-Firm Performance Relationship: Can it be in the Mind of the Beholder?

This study examined whether respondents’ implicit theories of performance could impact their responses to surveys regarding HR practices and effectiveness. Senior Human Resource and Line Executives and MBA, graduate Engineering, and graduate HR students read scenarios of high and low performing firms and were asked to report on the prevalence of various HR practices and effectiveness of the HR function in each firm. Results indicated that all four groups of respondents held implicit theories that high performing firms were characterized by extensive HR practices and had highly effective HR functions relative to low performing firms. Subjects with substantial work experience reported greater differences between and high and low performing firms than did subjects with relatively little work experience. The implications of these results for research on the HR Practices – Firm Performance relationship are discussed

Comparing Line and HR Executives’ Perceptions of HR Effectiveness: Services, Roles, and Contributions

This study compared HR and line executives’ evaluations of the effectiveness of the HR function in terms of its service delivery, roles, and contributions to the firm. Survey responses from 44 HR and 59 line executives from 14 companies indicated that (a) HR executives consistently rated the functions effectiveness higher than did line executives, and (b) the greatest differences were observed on the more important and/or strategic aspects of HR. Implications are discussed

Measurement Error in Research on Human Resource Decisions and Firm Performance: How Much Error is There and How Does its Influence Effect Size Estimates?

Recent empirical research finds that the relationship between human resource (HR) decisions and firm performance is significant in both statistical and practical terms. However, the typical research design in this area relies upon on a single respondent to validly assess firmwide HR practices. To date, no study has adequately addressed the reliability of such measures, a basic requirement of construct validity. Previous efforts have either defined reliability so narrowly as to miss a major source of measurement error (raters) or have estimated the unreliability due to raters using incorrect methods. In both cases, the result is upwardly biased estimates of reliability. We estimate reliabilities using intraclass correlation and generalizability coefficients. Our reliability estimates suggest substantial measurement error in the types of HR effectiveness and HR practice measures typically used to predict firm performance. We discuss how this degree of measurement influences research and policy implications

Perspectives on subnational carbon and climate footprints: A case study of Southampton, UK

Sub-national governments are increasingly interested in local-level climate change management. Carbon- (CO2 and CH4) and climate-footprints—(Kyoto Basket GHGs) (effectively single impact category LCA metrics, for global warming potential) provide an opportunity to develop models to facilitate effective mitigation. Three approaches are available for the footprinting of sub-national communities. Territorial-based approaches, which focus on production emissions within the geo-political boundaries, are useful for highlighting local emission sources but do not reflect the transboundary nature of sub-national community infrastructures. Transboundary approaches, which extend territorial footprints through the inclusion of key cross boundary flows of materials and energy, are more representative of community structures and processes but there are concerns regarding comparability between studies. The third option, consumption-based, considers global GHG emissions that result from final consumption (households, governments, and investment). Using a case study of Southampton, UK, this chapter develops the data and methods required for a sub-national territorial, transboundary, and consumption-based carbon and climate footprints. The results and implication of each footprinting perspective are discussed in the context of emerging international standards. The study clearly shows that the carbon footprint (CO2 and CH4 only) offers a low-cost, low-data, universal metric of anthropogenic GHG emission and subsequent management