Abstract[Excerpt] Strategic human resource management (SHRM) has emerged as a, if not the, major paradigm among scholars and practitioners in many parts of the world. This is apparent from the recent literature on international human resource management (e.g., Schuler, Dowling, and De Cieri, 1993), as well from recent reviews of trends in the U.S. (Dyer and Kochan, 1994), Canada (Betcherman, McMullen, Leckie, and Caron, 1994), and the U.K (Lundy, 1994 Strategic human resource management (SHRM) has emerged as a, if not the, major paradigm among scholars and practitioners in many parts of the world. This is apparent from the recent literature on international human resource management (e.g., Schuler, Dowling, and De Cieri, 1993), as well from recent reviews of trends in the U.S. (Dyer and Kochan, 1994), Canada (Betcherman, McMullen, Leckie, and Caron, 1994), and the U.K (Lundy, 1994).SHRM's spreading popularity owes much to an explicit promise of enhanced organizational effectiveness which can be achieved, according to the dominant models, by developing internally consistent bundles of human resource practices --human resource strategies --which are properly matched or linked to extant organizational contexts, most notably business strategies (Dyer and Kochan, 1994; Milliman, Von Glinow, and Nathan, 1991.The veracity of this promise is explored here. First, we briefly examine the logic of the underlying theories or assumptions and, then, review the applicable, albeit limited, research.The idea is to provide answers to the following questions:( THE LOGIC AND PREVALENCE OF BUNDLINGHuman resource practices are said to be bundled when they occur in fairly complete, mutually reinforcing or synergistic sets (Dyer and Holder, 1988;Dyer and Kochan, 1994). The logic in favor of bundling is straightforward. First, since employee performance is a function of both ability and motivation, it makes sense to have practices aimed at enhancing both. Second, since employee performance is an "over-determined phenomenon" (Hackman, 1985), it is most likely to be maximized when influenced by non-independent activities which are deliberately redundant (MacDuffie, in press). Thus, best results should be obtained when there are several ways for employees to acquire needed skills (e.g., careful selection, on-and off-the-job training, Page 3 Begin's (1991) carefully crafted set of five "employment policy systems"; and Dunlop's (1994) elaboration of eight strategic types. (For a fuller review of this literature, see Dyer and Kochan, 1994).Similarly, the logic of bundling has inspired a small number of survey studies designed to derive taxonomies of human resource strategies (and to uncover the antecedents and consequences of the resulting configurations). Those of which we are aware are briefly described in Exhibit 1. Exhibit 1: Characteristics of Significant Studies AUTHOR SAMPLE METHODOLOGY ARTHUR (1994)30 steel minimills in the U.S. covers production and maintenance employeesData collected by surveying HR managers (except business strate...
The purposes of this study were to test empirically (a) the utility of a model of the determinants of pay satisfaction developed by Lawler and (b) the value of adding to this model a category of variables not previously included: perceptions of pay-system administration. The study was conducted among United States managers (H = 180), French-Canadian managers (» = 133), and EnglishCanadian managers (n = 79). The results provide some support for the utility of Lawler's model and additional support for the value of adding the administrative-type variables. The results of this and other studies are used to develop a modified model of the determinants of pay satisfaction.
Summary Clearly, HRS research is in its infancy. We have only begun to make progress toward a better understanding of OHRS content, while FHRS content remains uncharted. Some research has been done in organizations with formal strategic human resource planning processes (e.g., Rush, 1983; Dyer, 1984), but much remains to be done here, as well. And the more informal approaches to organizational and functional strategic decision making represent virgin territories. All of these areas cannot be tackled in a single stream of research, but because strategy research is difficult, time consuming, and expensive, it is probably wise to combine areas and issues where possible. For example, a set of studies might be designed to describe and develop measures of both the content of OHRS and the process by which the content was formulated. Or, as we have done, research can focus on description and measurement, on the one hand, and on the other, either determinants or effects. Narrowly defined studies should be avoided at this stage, as should ill‐defined ones. Hence, the need for theory building (Schendel and Hofer, 1979). The immediate tasks are to explore the designated territories, develop meaningful concepts and constructs, and to generate working propositions, later to be followed by hypotheses (Duncan, 1979). It is descriptive theory that is needed now; formulating prescriptive theory aimed at strategic decision makers must await hypothesis development and testing. Descriptive theory demands descriptive research. For the most part, this means intensive case studies employing either longitudinal or retrospective designs that can capture the dynamic nature of strategy and strategy‐making processes. It may also mean action research to gain access to sensitive issues and intricate relationships (Bower, 1982). Surveys have a place, too; they may, however, be better viewed as supplemental to more intensive research than (as is more typical) the other way around. Large sample sizes (except in some of the survey work) are unlikely. Thus, sample organizations should be selected on the basis of their characteristics (variables of interest) and not randomly (Harrigan, 1983). For example, researchers should seek out organizations known to be experiencing change in OSs and those known to have similar OSs but quite different internal and external environments. To assess effects, organizations representing a broad range of performance outcomes (e.g., managing human resources, meeting OS goals, and making money) will have to be located. Inevitably, the relevance vs. rigor conundrum will arise. To the extent that prescriptive theory is the final goal, relevance must receive the nod. This means an emphasis on external rather than internal validity and on theory and research that focuses on those outcomes that practitioners want to influence and on variables that they can either measure (and thus adapt to) or manipulate and control (Thomas and Tyson, 1982). This amounts to a charge to do relevant research which is as much as possible rigor...
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