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Managing Human Resources in Europe MANAGING HUMAN RESOURCES IN EUROPE EDITED BY HENRIK HOLT LARSEN AND WOLFGANG MAYRHOFER Managing Human Resources in Europe Managing Human Resources in Europe provides an analysis of the most important themes in European human resource management (HRM) written by leading authorities based all over Europe. Unrivalled by any other text it provides a thematic approach with distinctive country examples in each chapter and is characterized by a critical approach with special attention given to dilemmas, controversies, paradoxes and problems in the field. This text is essential reading for all those studying or working in HRM in Europe allowing an exciting synthesis of theory and practice, illustrated with living case studies. Henrik Holt Larsen is Professor in Human Resource Management at Copenhagen Business School, Denmark. Wolfgang Mayrhofer is Professor of Organisational Behaviour and Management at Vienna University of Economics and Business Administration, Austria. Routledge Global Human Resource Management Series Edited by Randall S. Schuler, Susan E. Jackson, Paul Sparrow and Michael Poole Routledge Global Human Resource Management is an important new series that examines human resources in its global context. The series is organized into three strands: Content and issues in global human resource management (HRM); Specific HR functions in a global context; and comparative HRM. Authored by some of the world’s leading authorities on HRM, each book in the series aims to give readers comprehensive, in-depth and accessible texts that combine essential theory and best practice. Topics covered include cross-border alliances, global leadership, global legal systems, HRM in Asia, Africa, Europe and the Americas, industrial relations, and global staffing. Managing Human Resources in Cross-Border Alliances Randall S. Schuler, Susan E. Jackson and Yadong Luo Managing Human Resources in Africa Edited by Ken N. Kamoche, Yaw A. Debrah, Frank M. Horwitz and Gerry Nkombo Muuka Globalizing Human Resource Management Paul Sparrow, Chris Brewster and Hilary Harris Managing Human Resources in Asia-Pacific Edited by Pawan S. Budhwar International Human Resource Management 2nd edition Policy and practice for the global enterprise Dennis R. Briscoe and Randall S. Schuler Managing Human Resources in Latin America An agenda for international leaders Edited by Marta M. Elvira and Anabella Davila Global Staffing Edited by Hugh Scullion and David G. Collings Managing Human Resources in Europe A thematic approach Edited by Henrik Holt Larsen and Wolfgang Mayrhofer Managing Human Resources in the Middle-East Edited by Pawan S. Budhwar and Kamel Mellahi Managing Global Legal Systems International employment regulation and competitive advantage Gary W. Florkowski Global Industrial Relations Edited by Michael J. Morley, Patrick Gunnigle and David G. Collings Managing Human Resources in Europe A thematic approach Edited by Henrik Holt Larsen and Wolfgang Mayrhofer ROUTLEDGE Routledge Taylor & Francis Group LONDON AND NEW YORK First published 2006 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Simultaneously published in the USA and Canada by Routledge 270 Madison Ave, New York, NY10016 Routledge is an imprint of the Taylor & Francis Group © 2006 editorial matter and selection Henrik Holt Larsen and Wolfgang Mayrhofer; individual chapters, the contributors. Typeset in Times and Franklin Gothic by BC Typesetting Ltd, Bristol Printed and bound in Great Britain by TJ International, Padstow, Cornwall All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Managing human resources in Europe: a thematic approach/[edited by] Henrik Holt Larsen and Wolfgang Mayrhofer. p. cm. Includes bibliographical references and index. ISBN 0–415–35100–6 (hard cover) – ISBN 0–415–35101–4 (soft cover) 1. Personnel management–Europe. 2. Personnel management. I. Holt Larsen, Henrik. II. Mayrhofer, Wolfgang. HF55492.E9M36 2006 658.3'094–dc22 2005018897 ISBN10: 0–415–35100–6 (hbk) ISBN10: 0–415–35101–4 (pbk) ISBN13: 978–0–415–35100–3 (hbk) ISBN13: 978–0–415–35101–0 (pbk) Contents List of illustrations vii List of contributors ix Foreword xiii Preface xv 1 European HRM: a distinct field of research and practice 1 WOLFGANG MAYRHOFER AND HENRIK HOLT LARSEN Looking outside: the institutional context 19 2 The European Union and HRM: impact on present and future members 21 IVAN SVETLIK AND RUTH ALAS 3 Deregulation: HRM and the flexibility-security nexus 45 KOEN DEWETTINCK, DIRK BUYENS, CÉLINE AUGER, FRANÇOISE DANY AND TON WILTHAGEN 4 European employment relations: from collectivism to individualism? 63 ERLING RASMUSSEN AND TORBEN ANDERSEN Looking inside: embeddedness in the organization 85 5 HRM in multinational corporations: strategies and systems 87 PAUL GOODERHAM AND ODD NORDHAUG 6 HRM in small and medium enterprises: typical, but typically ignored 107 ELENI STAVROU-COSTEA AND BO MÅNSON vi • Contents 7 HRM in not-for-profit international organizations: different, but also alike 131 CHRIS BREWSTER AND STEPHEN LEE Looking at oneself: the roles and contribution of HRM 149 8 Measuring HRM: the acid test for managing intangible resources 151 ULF JOHANSON AND BO HANSSON 9 HRM and organizational performance: universal and contextual evidence 177 IRENE NIKANDROU, RITA CAMPOS E CUNHA AND NANCY PAPALEXANDRIS 10 Role of HR professionals: OD consultants, strategic brokers or individual therapists? 197 CHRISTOPHER MABEY, ANNE-METTE HJALAGER AND BIRTHE KÅFJORD LANGE Looking beyond: societal and economic macro-trends 215 11 Diversity and diversity management: a comparative advantage? 217 MARGARET LINEHAN AND EDELTRAUD HANAPPI-EGGER 12 Virtualization: boundaryless organizations and electronic human resource management 235 RÜDIGER KABST AND STEFAN STROHMEIER Conclusion 257 13 European HRM: on the road again 259 HENRIK HOLT LARSEN AND WOLFGANG MAYRHOFER Illustrations Figures 2.1 Iskratel: added value and turnover per employee (in euro) 31 3.1 Strictness of employment protection in Belgium, France and the Netherlands 48 5.1 A model of SIHRM 95 5.2 MNC strategy in terms of degree of local responsiveness and global integration 100 5.3 A categorization of foreign subsidiaries: degree of knowledge resources and learning contribution to the MNC as a whole 102 6.1 Framework of SME development 109 8.1 Percentage of organizations evaluating training 160 8.2 Appraisal system in operation for managers and workers 161 8.3 Training investments in comparison with depreciation expenses 162 9.1 A general model of the HRM–performance link for Europe 182 9.2 Conceptual framework for the analysis of HRM and organizational performance in the European context 188 12.1 Boundaryless organizations between market and hierarchy 240 12.2 Actors and interactions of e-HRM 249 Tables 2.1 Organizations using various methods of employment reduction 25 2.2 Indicators of the status of HRM presented as percentages of organizations 26 2.3 Recruitment and training practices presented in percentage of organizations 28 2.4 Education structure of Iskratel (%) 32 viii • Illustrations 2.5 Indicators of organizations’ employment flexibility presented in percentages of organizations 36 2.6 Indicators of organizations’ HRM practices presented in percentages of organizations 40 3.1 Used measures in case of downsizing 51 3.2 Central aspects of the Belgian law on flexibility and security 52 3.3 Central aspects of the Dutch law on flexibility and security 54 3.4 Part-time employment in Belgium, France, and the Netherlands 54 4.1 Changing union density rates, selected OECD countries, 1980 and 2000 65 4.2 Changing union memberships, selected European countries, 1993 and 2003 66 4.3 Union density and bargaining coverage, selected countries, 2001 67 8.1 An example of different personnel cost items as percentage of total personnel costs 164 8.2 A financial comparison between two recruitment strategies for auditors – headhunting versus internal training 166 8.3 Nokian Tyres’ Human Resource Report 168 10.1 A new market and power base for HR professionals 211 Contributors Ruth Alas is Professor of Management, Chair of Management at Estonian Busines School, Estonia. Torben Andersen is Associate Professor, PhD in Human Resource Management, Department of Marketing and Management, University of Southern Denmark. Céline Auger is Research Assistant in Human Resource Management, EM LYON, France. Chris Brewster is Professor of International Human Resource Management at Henley Management College, United Kingdom. Dirk Buyens is Professor in Human Resource Management, Ghent University and Vlerick Leuven Gent Management School, Belgium. Rita Campose e Cunha is Associate Professor of Human Resource Management and Organizational Behaviors at School of Economics and Business, Universidade Nova de Lisboa, Portugal. Françoise Dany is Professor in Human Resource Management and Career Counselling, EM LYON, France. Koen Dewettinck is Doctoral Researcher in Human Resource Management, Vlerick Leuven Gent Management School, Belgium. Paul Gooderham is Professor of International Management at Norwegian School of Economics and Business Administration
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