comparative human resource management

Chris Brewster

• Henley Business School, University of Reading, UK

• Radboud University, Nijmegen, Netherlands

• Vaasa University, Finland

• ISCTE, Lisbon, Portugal

Auckland, New Zealand

31.Oct.2014 0

Comparative Human Resource Management

Flash Exercisethree questions

• Who is living or has lived in a foreign

country?

• Who can speak two or more

languages (to at least “get by” level)?

• Who has non-academic work

experience?

1

1. Crossroads – taking the wrong road?

2. The wider picture: Comparative HRM

3. Explanations (culture and institutions)

4. Globalisation/ convergence

5. Implications/ discussion

2

Outline (perhaps…)

The seminal texts (1984)

Where we went

Why that is the wrong road

Context – and national context

Comparative HRM

3

1a. Crossroads

1. Crossroads – taking the wrong road?

4

1b. Fombrunet al 1984

1. Crossroads – taking the wrong road?

1c. Beer et al, 1984

5

The Harvard Approach

Source: Beer et al. (1984), Figure 2-1, p.16, Map of the HRM Territory.

HRM Policy

Choices Employee

influence

Human

resource flow

Reward

systems

Work systems

HR Outcomes

Commitment

Competence

Congruence

Cost

effectiveness

Long-term

Consequences

Individual

well-being

Organizational

effectiveness

Societal

well-being

Stakeholder

Interests

Shareholders

Management

Employee

groups

Government

Community

Unions

Situational

Factors

Work force

characteristics

Business

strategy and

conditions

Management

philosophy

Labor market

Unions

Task

technology

Laws and

societal

values

1d. The focus of research: (S)HRM

6

The Harvard Approach

Source: Beer et al. (1984), Figure 2-1, p.16, Map of the HRM Territory.

HRM Policy

Choices Employee

influence

Human

resource flow

Reward

systems

Work systems

HRM

Outcomes

Commitment

Competence

Congruence

Cost

effectiveness

Long-term

Consequences

Individual

well-being

Organizational

effectiveness

Societal

well-being

Stakeholder

Interests

Shareholders

Management

Employee

groups

Government

Community

Unions

Situational

Factors

Work force

characteristics

Business

strategy and

conditions

Management

philosophy

Labor market

Unions

Task

technology

Laws and

societal

values

1e. The focus of research: (S)HRM

7

The Harvard Approach

Source: Beer et al. (1984), Figure 2-1, p.16, Map of the HRM Territory.

HRM Policy

Choices Employee

influence

Human

resource flow

Reward

systems

Work systems

HRM

Outcomes

Commitment

Competence

Congruence

Cost

effectiveness

Long-term

Consequences

Individual

well-being

Organizational

effectiveness

Societal

well-being

Stakeholder

Interests

Shareholders

Management

Employee

groups

Government

Community

Unions

Situational

Factors

Work force

characteristics

Business

strategy and

conditions

Management

philosophy

Labor market

Unions

Task

technology

Laws and

societal

values

• Shareholders, Management, Employee groups, Unions, Government,

Community,

• Long-term consequences:

– Individual well-being

– Organisational effectiveness

– Societal well-being

• National differences

8

1e. The multi-stakeholder perspective

1. Crossroads – taking the wrong road?

• Work force characteristics

• Business strategy and conditions

• Management philosophy

• Labor market

• Unions

• Task technology

• Laws and societal values

9

2a.Situational Factors: context

2. The wider picture: Comparative HRM

2a. Comparative (country level) HRM: part of the context …

Different countries, different…

• HRM policies and practices

• Definitions of HRM

• Definitions of ‘good’ HRM

• Stakeholders

• Explanations

• Outcomes

2. The wider picture: Comparative HRM

3a. Cultural vs Institutional explanations

• the Cultural explanation

• the Institutional explanation

• the meaning of words

3. Explanations (culture and institutions)

3b. Cultural vs Institutional explanations of differences

• The Cultural explanation

– The meaning of culture

– Measuring culture

– Dimensions

– Impact on HRM

• the Institutional explanation

• the meaning of words

123. Explanations (culture and institutions)

3c. Cultural vs Institutional explanations of differences

• the Cultural explanation

• the Institutional explanation

– neo-institutionalism;

– legal systems;

– political systems;

– regulationist

– Comparative Capitalisms;

• the meaning of words

3. Explanations (culture and institutions)

3d. Varieties of Capitalism

• Liberal Market Economies (LME)

• Co-ordinated Market Economies (CME)

Hall and Soskice, 2001

Comparative Capitalisms• Nordic economies (SDE)

• Mediterranean economies (MME)

• CEE Transitional Economies (EME)

Whitley, 1999; Amable, 2003;

3. Explanations (culture and institutions)

3e. Comparative Capitalisms

• and what about:

– Communist/Capitalist states?

– Other transition states?

– Arab states?

– African states?

– Latin American states?

Jackson and Deeg 2006

3. Explanations (culture and institutions)

3f. Findings…

• Recruitment and selection (no market economy link)

• Financial participation (LME/CME difference; complex links)

• Individual voice (comparative capitalisms differences)

• Collective voice (comparative capitalisms differences)

• Working time flexibility (LME/CME difference)

• Training (comparative capitalisms differences)

• Downsizing (no market economy link)

• HRM department (comparative capitalisms differences)

• Trust (complex)

• CSR (LME/CME differrence)

• HRM and performance (LME/CME differences)

• and…

3. Explanations (culture and institutions)

4a. Convergence and Divergence

• Convergent pressures:

– Globalisation

– EU, NAFTA, ASEAN

• Kinds of convergence

• Divergent pressures

Mayrhofer, W., Brewster, C., Morley, M. and Ledolter, J. (2011)

4. Globalisation/ convergence

4b. Convergence: trends

E

X

T

E

N

T

T I M E

4. Globalisation/ convergence

4c.Final Convergence

E

X

T

E

N

T

T I M E

4. Globalisation/ convergence

3d. Findings on Trends• convergence (increases in)

– strategic potential of HRM department;

– centralisation of HRM away from line;

– HRM professionalisation;

– employee resourcing;

– Individualisation of employee relations;

– increased information to employees;

– contingent compensation systems.

• no convergence

– staff ratio;

– employee development

4. Globalisation/ convergence

4f. Findings on Final Convergence

• No final convergence of HRM

configuration

• No final convergence of HRM practices

4. Globalisation/ convergence

5. So, what does all this mean?• Similar trends do not mean countries are getting more alike in the

way they manage their HRM

• Implications for practice:

– HRM practices linked to high performance in one country

might be useless or detrimental in another;

– there is no “one-size-fits-all”;

– principles not systems and procedures

• Implications for THEORY - ?

• Implications for FUTURE RESEARCH -?

5. Implications/ discussion

Comparative HRM

Auckland, New Zealand

31.10.2014c.j.brewster@henley.ac.uk

If you have been…

Thank you for listening

Example Publications (i)

Books:• Wood, G., Brewster, C. and Brookes, M. (2014) Varieties of HRM: A

Comparative Study of the Relationship between Context and Firm

Routledge, London

• Haslberger, A., Brewster, C. and Hippler, T. (2014) Managing Performance

Abroad: a new model for understanding expatriate adjustment Routledge,

London

• Brewster, C. and Mayrhofer, W. (2012) A Handbook of Research on

Comparative Human Resource Management, Cheltenham, Edward Elgar

• Brewster, C. Sparrow, P., Vernon. G. and Houldsworth, L. (2011) International

Human Resource Management. (3rd edition), CIPD, Wimbledon

• Brewster, C., Mayrhofer, W. and Morley, M., (eds) (2004) Human Resource

Management in Europe: Evidence of Convergence? Butterworth Heinemann,

London

Example Publications (ii) Chapters:• Brewster, C. Wood, G. and Brookes, M. (2013) Institutions and supra-national

players: MNCs, country of domicile institutions and the diversity of work and employment relations, in Ales, E. and Sentatori, I. The Transnational Dimensions of Labour Relations Torino G. Giappichelli Editore (Chapter 11 pp: 165-182)

• Poutsma, E., Ligthart, P.E.M., Pendleton, A. and Brewster, C. (2013) The development of Employee Financial Participation in Europe. in Parry, E., Stavrou, E., Lazarova, M. (Eds) Global Trends in Human Resource Management. London, Palgrave Macmillan

• Brewster, C. (2012) Comparing HRM policies and practices across geographical borders. Chapter 5 In Stahl, G.K., Björkman, I. and Morris, S. Handbook of Research in International Human Resource Management, (Second Edition) Cheltenham, Edward Elgar (pages 76-96).

• Brewster, C. And Mayrhofer, W. (2011) Comparative Human Resource Management. in International Human Resource Management Chapter Contents 3rd Edition (Sage) Harzing A-W. and Pinnington A (eds) pp 47-78

• Goergen, M., Brewster, C. and Wood, G (2010) Corporate Governance: non-equity stakeholders. In H Kent Baker and R Anderson (eds) Corporate Governance – a synthesis of theory, research and practice. Companions to Finance Series. New York: Wiley. Chapter 24 (469-495)

26

Example Publications (iii) Articles:• Vaiman, V. and Brewster, C (2015) How far do cultural differences explain the

differences between nations? Implications for HRM International Journal of Human Resource Management DOI:10.1080/09585192.2014.937969

• Walker, J. T., Brewster, C. and Wood, G (2014) Diversity Between and Within Varieties of Capitalism: Transnational Survey Evidence Industrial and Corporate Change 23 (2):493-533

• Brewster, C., Brookes, M., Johnson, P. and Wood, G. (2014) Direct Involvement, Partnership and Setting: A Study in Bounded Diversity International Journal of Human Resource Management ISSN 0958-5192

• Goergen, M., Brewster, C. and Wood, G.T., (2013). The Effects of the National Setting on Employment Practice: the Case of Downsizing International Business Review 22 (6): 1051-1067

• Le, H., Brewster, C., Demirbag, M. and Wood, G.T. (2013) Management Compensation In MNCs and Domestic Firms Management International Review 53, (5): 741-762

• Vernon, G. and Brewster, C. (2012) Structural spoilers or structural supports? Unionism and the strategic integration of HR functions. International Journal of Human Resource Management: 24, (6): 1113-1130 ISSN 0958-5192

• Goergen, M., Brewster,C., Wood, G.T. and Wilkinson, A ( 2012) Varieties of capitalism and investments in human capital Industrial Relations 51 (2): 501-527

Example Publications (iv) • Croucher, R., Wood, G., Brewster, C. and Brookes, M.(2012) Employee turnover,

HRM and institutional contexts Economic and Industrial Democracy 33 (4) 605-620

• Mayrhofer, W., Brewster, C., Morley, M. and Ledolter, J. (2011) Hearing a Different

drummer? Evidence of convergence in European HRM Human Resource

Management Review 21 (1): 50-67

• Wood, G.T., Croucher, C., Brewster, C., Collings, G.C. and Brooks, M. (2009)

Varieties of Firm: complementarity and bounded diversity. Journal of Economic

Issues 43 (1): 241-260

• Farndale, E., Brewster, C. and Poutsma, E. (2008) Coordinated vs. liberal market

HRM: the impact of institutionalisation on multinational firms. International

Journal of Human Resource Management 19 (11): 2004-2023

• Brewster, C., Wood, G. and Brookes, M. (2008) Similarity, Isomorphism or Duality:

recent survey evidence on the HRM policies of Multinational Corporations British

Journal of Management 19 (4): 320-342

• Brewster, C., Wood, G., Brookes, M. and van Ommeren, J. (2006) “What

Determines the Size of the HR Function?: a cross-national analysis” Human

Resource Management, 45(1):3-21