Change and Globalisation: is HRM converging?

– and what do we do about the answer?

PeopleinAid conference:

Strategic HR in a Global Context

7th February 2007

Chris Brewster

Professor of International Human Resource Management

Henley Management College

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Change and Globalisation: is HRM converging?– and what do we do about the answer?

Programme

Does Globalisation apply to HRM too? Are we becoming more alike in the way we manage people?

Is the impact of HRM on Performance being Globalised? Do different things work in different countries?

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Convergence vs Divergence (or Stasis)

convergence theories– market-led/US– institutional/European– world vs regional

divergence theories; or stasismaybe it’s a bit of each…..

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The Cranet surveys

42 countries (24 in Europe): partner in each repeating every 3 years6000+ responses each roundQuestionnaire to senior HR; “factual” not perceptual40 questions (2-44 responses each Q) + 19

demographic questionsRepresentative, not panel

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Directional Convergence

E

X

T

E

N

T

T I M E

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Final Convergence

E

X

T

E

N

T

T I M E

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Findings on Directional convergence

convergence (increases in)– strategic potential of HR department; – assignment of HRM to line; – HR professionalisation;

– employee resourcing;– Individualisation of employee relations– increased information to employees; – contingent compensation systems.

no convergence– staff ratio; – employee development

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Findings on Final convergence

No final convergence of HR configuration No final convergence of HR practices

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Conclusions (i)

Evidence of Directional convergence No evidence of Final convergence Similar trends do not mean countries are getting more

alike in the way they manage their HRM There is no “one-size-fits-all”

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What does this mean for performance?

The Cranet survey Identifying high performers

• profit

• market share

• quality

Identifying HRM practices linked to high performance (self organising maps)

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Strategic HRM within the European Union

Region 1

Region 2

Region 3

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Selected states by cluster

Cluster 1: north-west Austria

Denmark

Finland

Germany

Netherlands

Sweden

Cluster 2: anglo-irish UK

Ireland

Cluster 3:central southern

Belgium

France

Greece

Italy

Portugal

Spain

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HRM practices linked to performance in Europe

Evaluating HRM

Monitoring and evaluating training effectiveness

Career management

Merit pay

Communication on change (-)

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Region 1 Region 2 Region 3

Evaluating HRM X

Communication X (on Strategy) -X (on Change) -X (on Change)

Staffing (internally and RIFs) -X

Profit Sharing X X

Bonus schemes X -X

Evaluating training X X

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Conclusions (ii)

Evidence of Directional convergence No evidence of Final convergence Similar trends do not mean countries are getting more alike in

the way they manage their HRM There is no “one-size-fits-all” HR practices linked to high performance also vary with

country Understand HR in the countries in which you operate

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So, what does this mean for practitioners?

Each country is different (a wider range of countries would have shown more difference); and

What works in HRM is different for each country; but… We have to ensure good practice, fairness and equity

across all countries; so We should concentrate on the principles, not the

systems, processes or procedures.

Can we monitor the outputs of our Human Resource Management?

Change and Globalisation: is HRM converging?– and what do we do about the answer?

Thank You!

PeopleinAid conference: Strategic HR in a Global Context

7th February 2007

Chris Brewster

Professor of International Human Resource management

Henley Management College