HRM and Performance: What’s Next?

The last decade of empirical research on the added value of human resource management (HRM), also known as the HRM and Performance debate, demonstrates evidence that ‘HRM does matter’ (Huselid, 1995; Guest, Michie, Conway and Sheehan, 2003; Wright, Gardner and Moynihan, 2003). Unfortunately, the relationships are often (statistically) weak and the results ambiguous. This paper reviews and attempts to extend the theoretical and methodological issues in the HRM and performance debate. Our aim is to build an agenda for future research in this area. After a brief overview of achievements to date, we proceed with the theoretical and methodological issues related to what constitutes HRM, what is meant by the concept of performance and what is the nature of the link between these two. In the final section, we make a plea for research designs starting from a multidimensional concept of performance, including the perceptions of employees, and building on the premise of HRM systems as an enabling device for a whole range of strategic options. This implies a reversal of the Strategy-HRM linkage

Human Resource Function Competencies in European Companies

This paper presents an overview of recent empirical research on human resource competencies in Europe. The data were collected in 2002 in the global Human Resource Competence Study, an initiative of the University of Michigan. The results suggest that personal credibility and HR delivery have a positive effect on the relative ranking of the HR function and its professionals. According to non-HRM respondents strategic contribution is the competency that will lead to financial competitiveness, while HR managers consider business knowledge to be crucial for added value of the HR function

HRM and Performance: What’s Next?

The last decade of empirical research on the added value of human resource management (HRM), also known as the HRM and Performance debate, demonstrates evidence that ‘HRM does matter’ (Huselid, 1995; Guest, Michie, Conway and Sheehan, 2003; Wright, Gardner and Moynihan, 2003). Unfortunately, the relationships are often (statistically) weak and the results ambiguous. This paper reviews and attempts to extend the theoretical and methodological issues in the HRM and performance debate. Our aim is to build an agenda for future research in this area. After a brief overview of achievements to date, we proceed with the theoretical and methodological issues related to what constitutes HRM, what is meant by the concept of performance and what is the nature of the link between these two. In the final section, we make a plea for research designs starting from a multidimensional concept of performance, including the perceptions of employees, and building on the premise of HRM systems as an enabling device for a whole range of strategic options. This implies a reversal of the Strategy-HRM linkage

Challenging (Strategic) Human Resource management Theory

To fully understand the relationship between human resource management and performance in different contexts, we are in need of a synthesis between resource-based theory and new institutionalism. We argue that differences in institutional settings (between for example countries or branches of industry) affect the shaping of HRM. In this paper we develop a conceptual model (human resource based theory of the firm) that will be illustrated by means of empirical evidence on macro, meso and micro level. The model enables to analyze the interaction between industrial relations and human resource management at different levels (international, national, branch of industry, company-level) and how that affects the shaping of HR policies in a specific company. In this way the paper broadens the present HRM and Performance debate by explicitly taking into account factors that are decisive in shaping HR policies. Factors like the product-market-technology dimension, administrative heritage, the social-cultural-legal dimension and the dominant coalition with its degree of leeway

Human Resource Management and Performance

The relationship between Human Resource Management (HRM) and performance of the firm has been a hot debated topic in the field of HRM/IR for the last decade. Most scientific research on this topic originates from the USA. In our paper we will give an overview of recent USA-based research outcomes as a frame of reference for presenting recent findings from the Netherlands in this respect. These Dutch findings are interesting and contrasting USA-based approaches because they reflect the Western-European model for industrial relations or the so-called Rhineland model. A model in which legislation, institutions and stakeholders like workscouncils and trade unions play an important role in shaping HRM policies and practices. So the very often proclaimed relationship between corporate strategies, aligned HRM policies and their subsequent effect on performance is in a Dutch setting mitigated by institutions and stakeholders inside and outside the organization

Employee Perceptions of HRM and TQM and the Effects on Satisfaction and INtention to Leave

There is a growing interest in theory and in practice with regard to the relationship between human resource management [HRM] and total quality management [TQM] as well as the relationship between these two perspectives and business performances. Empirical research suggests significant effects of HRM/TQM on the performances of an organisation. The majority of research in this area is focused on the effects of HRM/TQM at the organisational level. Research on the perceptions of individual employees might obtain new insights for further discussion on the effectiveness of HRM/TQM in an organisation. The authors have the opportunity to analyse a relatively large database with recent data of individual employee perceptions from a knowledge-intensive organisation in The Netherlands. This analysis gives new insight in relation to concepts like 'co-operation', 'information', 'leadership', 'salary', 'work conditions', and 'goal setting' in relation to employee satisfaction and the intention to leave the organisation

High Performance Work Systems

Research, summarized and classified in the work of Delery and Doty (1996), Guest (1997), Paauwe and Richardson (1997) and Boselie et al. (2001), suggests significant impact of Human Resources Management (HRM) on the competitive advantage of organizations. The mainstream research on this topic reveals encouraging results on organizational level. Also in relation to Total Quality Management (TQM) there is research evidence that 'best practices' and/or 'high performance work systems' (HPWS) can be identified having positive impact on the performance of an organization (Waldman, 1994; Hendricks and Singhal, 1997 and 2001; Blackburn and Rosen, 1993). Delery and Shaw (forthcoming in 2002) allege a need for "research on research" in the area of HPWS and performance, more precisely research on organizational-level research methods. We argue that further "research on research" on the perception of the individual employee may also reveal new (methodological) insights in the effects of HRM and/or TQM practices on performances in organizations. The purpose of this paper is to (1) review methodological problems in empirical literature on HRM/TQM and performance and to (2) test the stability of HRM/TQM factors (or constructs) over time. We have the opportunity to analyze longitudinal data (1998 and 2000) of individual employee perceptions from the Ernst & Young company in the Netherlands. The HRM/TQM constructs appear to be relatively stable over time, just like the relationship between these constructs and performance

Human Resource management, Institutionalisation and Organisational Performance

The relationship between Human Resource Management (HRM) and firm performance has been a hotly debated topic over the last decade, especially in the United States (e.g. Osterman, 1994; Huselid, 1995; MacDuffie, 1995). The question arises whether the domination of USA oriented models, however appropriate they might be for, say, the USA, hold in other for example more institutionalised contexts. Now we have the opportunity to study recent empirical data on the effectiveness of human resource management in the Netherlands, using Control versus Commitment HR Theory (Walton, 1985; Arthur, 1994) in combination with New Institutionalism (Dimaggio and Powell, 1983). We were able to include three different Dutch sectors/branches of industry i.e. Health care, Local Government and Tourism. Empirical results suggest that the effect of HRM is lower in highly institutionalised sectors (hospitals and local governments) than in a less institutionalised sector like hotels

Performance Management: A model and research agenda

Performance Management deals with the challenge organizations face in defining, measuring and stimulating employee performance with the ultimate goal to improve organizational performance. Thus, Performance Management involves multiple levels of analysis and is clearly linked to the topics studied in strategic HRM as well as performance appraisal. This paper presents a model for Performance Management combining insights from strategic HRM and I/O psychology. The model incorporates multi-level elements, and adds to previous models by explicitly incorporating employee perceptions, the role of direct supervisors and possible reversed causality. Challenges for future research are also presented