In the literature, it is often assumed that traditional, control-oriented HRM systems are increasingly being replaced by commitment-based HRM systems because the latter generally result in higher firm performance. However, an HRM system's effectiveness may depend on an organisation's external and internal context, and neither control nor commitment HR systems are without disadvantages. Thus, the empirical validity of this claim is not clear ex ante. This paper analyses the empirical diffusion and determinants of control and commitment HRM systems in Germany as well as their impact on HRM outcomes and firm performance. The findings indicate that between the two extreme forms of high-control and high-commitment HRM systems, there are two hybrid forms (long-term-oriented control system and regulated commitment system) that combine elements of both 'pure' systems. Commitment HRM systems outperform the high-control HRM system concerning many HRM outcomes and firm performance measures. However, in direct comparison, the high and the regulated commitment HRM systems do not show substantially different outcomes, indicating that there is no one best way.
The current economic crisis has brought to the fore the need for firms to deal with ambiguity and complexity. Hence, firms need a specific balance between exploration and exploitation in order to keep pace with varying and changing environmental conditions. Hitherto, there is limited research that has examined the nexus of HR architectures, ambidexterity, and environmental dynamics. In this conceptual paper we ask: How do HR architectures serve as a means of balancing exploitative and exploratory learning in different dynamic environments? We explain how exploratory, exploitative, and ambidextrous HR architectures with their embedded HRM systems and practices enable organizations to meet different environmental requirements. Thus, firms in which heterogeneous demands for flexibility and for innovation co-exist need to develop internally differentiated HR architectures. In particular we elucidate how critical the organization's ability is to connect different HRM systems to create an ambidextrous HR architecture for finding an appropriate balance between exploration and exploitation.
This chapter draws on previous research to consider how HRM practices are used to manage human and social capital to generate superior performance in professional service firms. Previous research indicates that PSFs rely on both human capital (knowledge and skills) and social capital (relationships inside and outside the PSF) to manage their performance outputs. In this context the authors review the existing research on strategic HRM practices in PSFs which is predominantly categorized into expertise- and efficiency-orientated HRM systems. They draw on their own research to outline two models of HRM practices which are used to manage human and social capital and discuss the link to innovation. The first of these emphasizes the protection of human capital and therefore has centripetal properties, whereas the second is more client-focused and therefore displays centrifugal properties. Finally, they consider the managerial challenges that these models present and point to avenues for future research.
In order to improve our understanding of the relationships between high-performance work systems and firm performance, several studies have analysed the mediating effects of motivation-related or human capital-related variables. However, most of these have concentrated on single aspects and are US-focused. We extend previous human resource management research by simultaneously analysing the relevance of four general mediating mechanisms: human capital, employee attitudes, employee performance and operational performance. We apply structural equation modelling with formative constructs to data of 1099 German firms. While our findings support the assumption of positive relationships between high-performance work practices, the four mediating mechanisms and firm performance, they also reveal some peculiarities attributable to the German context. Using formative constructs, we were also able to show that single high-performance work practices have different effects on firm performance.
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