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Field of Human

Adrian Wilkinson, Tom Redman, Scott A. Snell and Nicolas Bacon

The purpose of this chapter is to outline , the mantra of ‘people are our some of the key elements of human resource most valuable asset’ has largely been a management (HRM), and to introduce our rhetorical one in most organizations; and the framework for this volume. The field of HRM research evidence has often not backed it continues to evolve in today’s organizations, up (cf., Snell, Shadur, and Wright, 2002). in part due to the economic, technological, Historically, organizations have not rested and social realities that influence the nature of their fortunes on human . The HR . In a global economy, a wide range of function remains among the least influen- factors—that vary from global sourcing and tial in most organizations, and competitive labor arbitrage to regional agreements strategies have not typically been based and labor standards to cultural differences on the skills, capabilities, and behaviors of and sustainability to strategic alliances and employees. In fact, the harsh reality is that innovation—all point to the vital nature of labor is still often viewed merely as a HRM. In large part this is because from a to be minimized, particularly in tough times. strategic standpoint, observers have noted that Executives have more often tried to minimize traditional sources of advantage such as access the impact of employees on performance by to capital, protected markets, or proprietary substituting capital for labor where possible, technologies are rapidly eroding, and that and designing bureaucratic organizations that survival depends more often on the ability to separate those who think from those who innovate, adapt, and learn, and transfer that actually do the work (Snell, Youndt, and learning globally. As one might guess, these Wright, 1996). capabilities rest squarely on the management But there are some encouraging signs of people. that much of this is changing. As Quinn But while few will argue against the (1992: 241) noted, ‘with rare exceptions, premise that HRM issues are critical in today’s the economic and producing power of the 4 THE SAGE HANDBOOK OF HUMAN RESOURCE MANAGEMENT

firm lies more in its intellectual and service to the . This raises the importance capabilities than in its hard assets.’And again, of the employee’s experience at work and this clearly highlights the importance of outcomes (Chapter 22) as well as their work- human resource management. life balance (Chapter 29). To explore how HRM is changing, and to examine best practice across its array A macro perspective of activities, we organize this chapter as follows. First, we present a 2 × 3 matrix From a more macro perspective, the human that summarizes both micro- and macro- element of HRM addresses collective agree- perspectives on elements of HRM across: ments between employees and organizations (a) a human focus, (b) a resource focus, that characterize industrial relations and and (c) a management focus. Second, we collective bargaining (Chapter 18) as well as describe the structure of the book and how the formal policies and procedures that ensure individual chapters deal with the issues raised rights of redress for discipline and grievances by this matrix of HRM perspectives. (Chapter 19). From a broad perspective, the human focus of HRM concerns issues related to ethics (Chapter 28), equal opportunity A HUMAN FOCUS (Chapter 14), health and safety (Chapter 17), as well as fairness and workplace justice dur- The history and evolution of HRM (Chapter 2) ing downsizing and redundancy (Chapter 20). emphasizes its longstanding concern with a human focus. Historically, this focus placed a strong emphasis on employee A RESOURCE FOCUS rights and needs and employee wellbeing in general. This focus was much in evi- Balancing the needs and interests of employ- dence in early developments in the areas of ees against the needs and interests of occupational health and safety (Chapter 17) the organization is often a difficult task and grievance management (Chapter 19) in in HRM. The contradictions and tensions particular. More recently we can see this between different models of HRM, such focus reflected in broad debates about work as that between an ‘employee champion’ design (Chapter 16), the work-life balance and a ‘business partner’ role in the organi- (Chapter 29), and equality and diversity zation have received considerable attention (Chapter 14). in the literature (Ulrich, 1997; Francis and At its root, HRM focuses on managing the Keegan, 2006). Although HRM by its very employment relationships and the implicit, as nature has a decidedly human focus, it also well as explicit agreements that are estab- focuses on employees as a resource in driving lished between individuals and organizations. performance. Many of the practices that are In many instances, HR plays the role of typically associated with HRM focus on employee advocate or ‘champion’ in ensuring increasing productivity and enhancing the the equitable treatment of employees in order competitiveness of the firm. to ensure that the interests of employees as well as the organization are protected. A micro perspective

A micro perspective From a micro perspective, HRM focuses on individual practices that ensure employee From a micro standpoint, HRM includes man- ability and motivation to perform effectively. aging the nature of employment (Chapter 4). Recruitment and selection (Chapter 9), for It also includes issues of employee involve- example, constitute important organizational ment and participation (Chapter 15) that investments to ensure that the best and characterize the attachment of individuals the brightest talent is brought into the FIELD OF HUMAN RESOURCE MANAGEMENT 5 organization to fulfill its particular needs. affects the employer’s choice of specific Training and development (Chapter 10), practices (see Chapter 5). The evolution in turn, augment the staffing process to of HR strategy (Chapter 6) has taken build the talent base of the organization and organizations from a fairly static view close the gap on required skills, abilities, focused on person-job fit, to one focused on and other factors. organizational and cultural fit, to managing programs (Chapter 11) help to ensure a strong a global workforce where practices differ cadre of executives is available to succeed across regions and cultures (Chapter 8). current leaders, and to provide a succession In cases of hyper-competition and rapid of experiences that develops this talent over change, HR strategies help to create and time. Performance appraisal (Chapter 12) leverage an agile workforce that can adapt involves both the administrative and devel- to change and drive innovation. This often opmental requirements of performance man- includes the use of contingency workers, agement. It addresses ability-related factors, strategic , and alliances that and seeks to motivate employees to improve span organizational boundaries (Chapters 26 individual and organizational performance. and 27). At the extreme, these approaches Given these aims it ties directly to the have an aggregate impact on industry inno- management of rewards (Chapter 13) and vation and national economic performance the various methods organizations use such (Chapter 24). as pay for performance, incentives, and the like. Finally, job design (Chapter 16) addresses the motivational basis of work A MANAGEMENT FOCUS and the micro-structural requirements of the organization. While much of the literature on HRM has focused on the needs and concerns of employ- A macro perspective ees (as humans) in organizations, as well as their potential contribution as resources From a more macro perspective, a resource contributing to organizational performance, focus of HRM addresses the set of prac- an important subset of concerns relate to the tices for managing the aggregate of human management of the HR function itself. In capital in organizations and nation states many ways, the evolution of the HR function, (Chapter 24). Much of this literature is its organization, and the professionalization informed by the resource-based view of orga- of HR managers, represent some of the nizations as it applies to HRM (Chapter 25). biggest changes occurring over the last From a competitive standpoint, executives decades. recognize that their talent base is a source of advantage, and as a consequence, they A micro perspective take care to develop strategies that build and deploy their work forces in ways that enhance Although the earliest roles and responsibil- firm performance (Chapter 21). Different ities of HR managers emerged from the models of macro HRM (Chapter 3) capture administrative and transactional requirements the universalistic ‘best practice’ approach to of employment and personnel issues, the HRM, the contingency approaches, and the contemporary setting requires HR managers configurational approaches which emphasize to adopt a more strategic set of roles that focus the combination of practices that reinforce on managing change, building organizational and support one another. Just as individual culture, and becoming a partner in the business talents combine to create a collective capa- (Chapter 7). The skills, knowledge, and bility in organizations, multiple HR practices behaviors of HR managers and leaders in this also combine to create an overall strategy context are substantially different, and many of HRM within a regulatory context that companies are challenged with identifying 6 THE SAGE HANDBOOK OF HUMAN RESOURCE MANAGEMENT and developing the next generation of HR management into three broad ‘stages’: from professionals. the first industrial revolution and the growth of bureaucratic personnel management from the A macro perspective late nineteenth century onwards; to the second industrial revolution in the mid-twentieth From a macro perspective the HR function century involving union-based systems of has undergone a significant amount of change industrial relations management; and the third as well. Many firms have restructured to industrial revolution of more flexible systems establish a cadre of HR generalists (business of human resource management. partners), complemented by centers of excel- The theme of current models of strategic lence (specialists), and supported by a shared human resource management is developed services organization for administrative/trans- by Saba Colakoglu, Ying Hong and David actional activities. In part, these changes have Lepak in Chapter 3. Concentrating on the taken place to create economies of scale in link between human resource management multinational companies (Chapter 32) but and the competitive advantage of firms they some of the change is occurring in small review the underlying theoretical approaches and medium sized firms as well (Chapter 31) for universalistic, contingency and configu- where strategic partnerships give smaller rational perspectives in the field. The estab- firms access to specialized HR talent. In lished resource-based view and behavioral both settings, the trend toward outsourcing perspectives are reviewed before consider- transactional activities has also continued. ing emerging approaches concentrating on The issues related to HRM in developing employee cognitive and social dimensions. countries are no less significant (Chapter 23) The international aspects of HRM are also and related to both micro issues of HR considered. managers as well as macro issues of orga- In Chapter 4, John Budd and Devasheesh nizing the HR function within the firm. Bhave explore the contrasting views of the Similarly, the special issues in the service employment relationship associated with four sector, both private sector service (Chapter 30) different schools of thought. Distinctions are and the public sector (Chapter 33) create HR drawn between egoist, unitarist, pluralist and challenges as well. critical models of the employment relation- ship. The underlying values, ideologies and frames of reference held by those studying and THE STRUCTURE OF THE HANDBOOK practicing human resource management are associated with different views of the purpose The themes and developments outlined above of employment practices and the preferred are reflected in the chapters that follow. In the approaches to dealing with labor management first part, the contributors provide an overview issues. of the history and different perspectives In Chapter 5, Michael Barry explains underpinning the field. In Chapter 2, Howard how the regulatory context affects employer Gospel outlines the historical development choices of human resource management of human resource management, defining the practices. Over the last twenty years employ- field broadly to cover three interconnected ers have reasserted their rights to manage areas—work relations, employment relations, employees free from regulations to protect and industrial relations. The chapter examines employee interests and correct market fail- major patterns in these three areas as they have ures. He argues that rather than shifting to emerged over time, showing how the chang- a deregulated labor market over the last two ing technological, market, political/legal, decades, new regulatory actors have emerged social, and business environments have to influence employers’ choices of human shaped basic aspects of labor management. resource management practices. In addition, He classifies the history of human resource the state continues to define the overarching FIELD OF HUMAN RESOURCE MANAGEMENT 7 regulatory system and employers’ choices are argue that an effective approach to recruitment still conditioned by this and product markets, and selection requires combining a macro along with the history of the firm. level recruitment strategy and micro processes In Chapter 6, Scott Snell and Shad Morris such as understanding the decision making summarize the evolution of the field of HR of selectors and applicants. The chapter strategy. This has involved a change from con- focuses on new research on recruitment, centrating on person-job fit under scientific covering the impact of technology, the management, to systemic fit from the 1980s, quality of applicants attracted, the important to value creation in the differentiated work role of the recruiter, organizational image, systems currently used by firms in hyper- attracting older and temporary workers, and competitive global markets. A convergence applicant reactions to selection procedures. is described between the fields of HR and Recent work on personnel selection reviewed strategy on the issues of human capital, covers technological developments, select- social capital and capabilities. Future chal- ing employees in international firms, new lenges include understanding how to manage selection procedures, and improvements in knowledge and innovation across globally existing selection procedures. Demonstrating dispersed and differentiated workforces, and the value of recruiting and selecting to how to effectively manage outsourcing and organizations remains an important challenge offshoring from a HR perspective. Despite for research in this area. these challenges HR concerns are now In the first of two chapters on devel- considered central to corporate strategy. oping employees, Phyliss Tharenou, in In Chapter 7, John Haggerty and Patrick Chapter 10, considers the main developments Wright focus on the value added by the in employee training and development. Four HR function. Moving beyond debates about major approaches to training and development implementing high-performance work prac- are outlined from the fields of human resource tices and operating as business partners, they management, industrial/organizational psy- adopt a micro organizational approach and chology, labor , and industrial argue that the skills of HR professionals relations. Tharenou argues that principles must improve to establish and maintain the and different levels of analysis from these proper climate for simple rules to signal different areas should be combined to appropriate behaviors to employees required increase training effectiveness. Research is to drive business performance. This involves then reviewed across three stages of the translating corporate value statements into training and development process covering meaningful HR practices, building effective what occurs prior to, during, and after training. links with line managers and creating a She argues that managers fail to act on many positive organizational climate. of the lessons from this research and changing In the final chapter in Part One, Richard managers’ attitudes towards the training and Hall and Nick Wailes broaden the theme of the development process is an important priority influences on human resource management for future research. by considering differing practices across The call for greater dialogue between countries. They argue international human different approaches to management and resource management needs to incorporate development is also emphasized insights developed from comparative HRM by Christopher Mabey and Tim Finch-Lees and international political economy and move in Chapter 11. Identifying shortcomings in beyond a traditional focus on expatriate man- the causal links between management and agement and culture as the main explanation leadership development and organizational of differences between countries. performance, Mabey and Finch-Lees review Part Two focuses on the fundamental areas existing evidence on the links to strate- of human resource management practice. In gic intent, enhanced skill and competence, Chapter 9, Filip Lievens and Derek Chapman and between enhanced competence and 8 THE SAGE HANDBOOK OF HUMAN RESOURCE MANAGEMENT performance. They argue that work based on in most firms remains the responsibility of the functionalist assumptions overlooks a range HR function. of important issues, including the multiple In Chapter 15, Graeme Dietz, Adrian meanings attributed to management and Wilkinson and Tom Redman focus on the leadership development by different stake- main factors that influence the effectiveness holders, the effects on management identities, of schemes to increase employee involvement and the coercive aspects of such training and participation. Adopting a life-cycle per- programs. spective, the chapter reviews these factors as In the first of two chapters on assess- they affect schemes from their initial stages, ment and rewards, Michelle Brown and to operation and potential survival. Several Victoria Lim, in Chapter 12, focus on important factors are highlighted, including the motivations and tactics that supervisors managerial motives, the mismatch between and employees use in formal evaluations motives and the design of schemes, and of employee performance. They review the organizational- and individual-level obsta- situational and personal factors that influence cles. These factors contribute towards what the supervisor’s appraisal of employees, are at best described as the modest outcomes and employee reactions to performance of such schemes. appraisals, the effect of perceived fairness In Chapter 16, Sharon Parker and Sandra on participation, impression management, Ohly review classic work design theories feedback on assessments and resistance to and research, and concentrate on the rela- assessment. The conclusion drawn is that tionship between work characteristics and more research is required focusing on the outcomes. They consider recent work to interactions between supervisors and employ- further understand the relationship between ees in the appraisal process. job characteristics and outcomes, including In Chapter 13, Barry Gerhart concentrates extending beyond the big five work charac- on factors affecting the degree to which teristics, expanding the outcomes associated employers use pay for performance plans, with job characteristics, further understanding reviewing reinforcement, expectancy, equity, the mechanisms and moderators, and the agency and efficiency wage theories of organizational factors shaping work charac- motivation. He reviews evidence on the teristics. They point to future work to assess effects of pay level and pay for performance, the impact of collective and contextualized considering the potential pitfalls and the processes of organizing work and the design impact of a series of alignment and contextual of complex professional and knowledge based factors that might affect the success of pay for jobs. The gap between work design theory and performance plans. bad work design choices in practice remains In Chapter 14, Anne-Marie Greene des- of concern. cribes the move from liberal approaches to Employee wellbeing is further explored in equal opportunities based on ‘sameness’ to Chapter 17 by Rebecca Loudoun and Richard diversity approaches founded on ‘difference’. Johnstone. Traditional views of health and This involved a shift from a social justice case safety at work have embraced a broader view to a business case for equality, and the sharing of the factors affecting workers’ physical and of responsibility for equality among a wider psychological health, and regulators require group of stakeholders. Confusion among employers to take systematic approaches academics and practitioners concerning the to manage occupational health and safety. purpose and implementation of equality prac- However, they identify difficulties in firms tices has resulted in policies appearing similar engaging in processes, reac- to those under equal opportunity approaches. tive minimal compliance and unsatisfactory Legal compliance remains a major motivator, occupational health and safety regulation. equality remains a low status management In Chapter 18, Thomas Kochan and issue with limited expenditure, and equality Greg Bamber focus on industrial relations FIELD OF HUMAN RESOURCE MANAGEMENT 9 and collective bargaining with trade unions by further applying concepts from strategic and other employee representatives. The management. In arguing for an emphasis chapter emphasizes the normative purpose of on implementing HR strategy as a source designing institutions that promote fairness of competitive advantage, they highlight alongside efficiency. The purposes of collec- the importance of an HR architecture that tive bargaining are outlined along with its embeds capabilities for concrete business pro- rise and decline in the twentieth century. The cesses that are firm-specific and strategically key challenges looking forward concern the important. The practical implications for HR design of institutions to regulate employment managers include an emphasis on workforce given the globalization of markets and firms, strategy, an increased emphasis on differen- and to balance work and family life. tiation, measuring the HR function’s perfor- In Chapter 19, questions of fairness and mance and HR professionals developing new workplace justice are also to the fore as competencies. Brian Klaas reviews the research on discipline In Chapter 22, Francis Green, Katy Huxley and grievance procedures designed to deal and Keith Whitfield broaden the discussion with problematic employee behavior. Klaas to examine the employee experience of work shows whether the use of formal disciplinary during a period in which many firms have procedures produces benefits that outweigh revised their approach to human resource the depends on factors in the organi- management. Although wages have increased zational setting and the disciplinary system for many workers, other aspects of the that affect employee perceptions. A range employees’experience such as the intensity of of questions that need to be addressed in work and job stress may have become worse. research on grievance systems for employees However, these changes appear to vary for are identified and the moderating role of different groups of workers according to fac- contextual factors remains critical for research tors including gender, whether workers have in this area. a disability or health problems, hours worked In the final chapter of Part Two, Wayne and firm size. The authors conclude that high Cascio argues that the anticipated increases commitment management approaches have in earnings and share prices from downsizing had little impact on employee experiences and redundancies are more likely to arise from of work. disposing of unprofitable or technologically In Chapter 23, Pawan Budhwar and Yaw redundant parts of a business, but not as part Debrah change the focus to consider human of an indiscriminate management approach to resource management in developing coun- reducing costs. The advantages and disadvan- tries. This topic has attracted more attention tages of four methods to reduce the workforce recently as local firms in developing countries are reviewed and the limited research on seek to compete in global markets and alternatives to downsizing considered. The China and India have emerged as major negative impact of downsizing on employee economies. Most work so far has assessed the attitudes and behaviors are explored among impact of national factors on HRM, including other issues, and the effects on firm per- religion, traditional cultural beliefs, western formance and communities assessed. Finally, colonial and modern influences, institutions, more work is called for exploring the effects the political and legal framework, the business of downsizing according to the different environment, and national history. Eleven practices used and contexts in which it occurs. issues are highlighted to help guide future Part Three of the Handbook focuses research in this area and many of these issues on contemporary issues in human resource insist that sensitivity to context is essential. management. In Chapter 21, Brian Becker In Chapter 24, Jonathan Michie explores and Mark Huselid outline a way for- the relationship between HRM and national ward for research into strategic human economic performance. National economic resource management and firm performance performance is influenced by both the 10 THE SAGE HANDBOOK OF HUMAN RESOURCE MANAGEMENT aggregate of corporate performance and the organization is possible, this appears to ability of national economies to innovate. require conditions rarely offered to workers in Politicians may however encourage numerical these circumstances, such as attempts to pro- flexibility in the labor market at the cost of vide better working conditions. Furthermore, encouraging functional flexibility and high employees in multi-employer networks rarely skills in firms. Developing employees and benefit from reward, training or employee organizing work to increase the absorptive participation practices that will enhance capacity of firms are also considered impor- employee commitment. tant HRM issues if firms are to benefit In Chapter 28, Chris Provis outlines a from knowledge generated in the science and range of traditional and new human resource university sectors. management issues that require careful ethical In Chapter 25, Paul Boselie and Jaap consideration. Managers may ignore attempts Paauwe provide an overview of the resource to apply ethics to employment issues because based view (RBV) and its impact on human some recent management approaches may be resource management. Several empirical ethically suspect, but such neglect may also studies are reviewed that seek to apply the have occurred because different approaches to RBV and a set of problems with RBV theory ethics sometimes appear to produce conflict- are considered. In order to overcome the ing advice on human resource management narrow focus of the RBV on the internal issues. Nevertheless, ethical theories help resources of firms, the authors propose identify the issues managers should consider complementing the theory with recognition and discuss in human resource manage- of the impact of external institutions on ment, although it is considered misguided the firm, and a strategic balance approach to hope for unequivocal solutions to ethical recognizing the importance of the capabilities dilemmas. and administrative heritage of the firm. In the final chapter of Part Three, Janet In Chapter 26, Lee Dyer and Jeff Ericksen Walsh discusses key developments in working use concepts derived from complexity science time and work-life balance. She examines to consider the HR challenges for firms the potential causes, national, occupational operating under conditions of hyper com- and gender variations in the time demands petition and creative destruction. In such and pressures of paid employment and the firms, innovation, dynamism, and the ability links to work-life conflict. Assessing policies to adapt are required to recreate short-lived for work-life balance, Walsh highlights the temporary competitive advantages. Although important role of state legislation in employers the most appropriate HR practices in such enhancing family-friendly work practices. circumstances are not well understood, the The organizational characteristics of family- authors highlight several, including: a poten- friendly employers are assessed as well as tial role for recruiting agile performers; evidence of the organizational benefits of employees equipped to take on different these policies, and the reasons employers do assignments and tasks; a requirement for not adopt such policies. continuous development; person-based pay The contributors to Part Four consider decided by project teams that is high relative to human resource management issues from the market; and systems to prevent overwork different sectoral perspectives. In Chapter 30, and burn-out. Jody Hoffer Gittell and Rob Seidner consider In Chapter 27, Mick Marchington, Fang human resource management in the service Lee Cooke and Gail Hebson consider human industry. They argue against the view that resource management across organizational the labor intensive nature of much service boundaries that arise in the employment work and low cost competition makes an of subcontracted, outsourced and agency investment approach to HR unlikely. Instead workers.Although generating employee com- they note that direct customer/provider mitment to more than a single employing interface in service work makes service FIELD OF HUMAN RESOURCE MANAGEMENT 11 quality important even in low cost segments appears to be turning towards organizational of the market, and require HR investments. reintegration, citizen involvement and part- Such investments are thought to drive ser- nership with the workforce. vice sector performance through increasing The chapters in the Handbook attest to employee commitment, raising skills levels the continued importance of human resource and building more effective relationships. management for both organizational perfor- In Chapter 31, Paul Edwards and Monder mance and employee well-being. They also Ram focus on the relatively non-formalised identify the broad and increasing scope of human resource management practices used academic disciplines generating evidence and in small firms. The authors argue that these developing theories to understand existing practices reflect a wide range of factors, practices and help guide managers in the including the personal choices of the founders future. The extent to which academics and and owners of small firms, family relation- managers can meet the challenges posed in ships, and some of the benefits workers find these chapters will have an impact on our in informality. Arguing against the view that future working lives. small firms require greater formality, a case is made that in a highly diverse sector, small firms seek to tie together HR practices in ACKNOWLEDGEMENTS idiosyncratic ways to operate flexibly and develop the firm. We would like to thank Kiren Shoman and In Chapter 32, Anthony Ferner consid- Alan Moloney from Sage for their help in ers the management of putting together this volume. across borders within multi-national compa- nies (MNCs). 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