Human Resource Management

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2 Human Resource Management Effective management of human resources is essential to the success of any organization. In this authoritative, sophisticated and engaging new text on Human Resource Management (HRM), an international team of leading analysts guides the advanced student through this fundamental discipline of management in all its complexity. The book explores all the central themes and concepts of HRM theory and practice, and introduces the most important issues influencing contemporary practice in a wide range of organizational contexts. It systematically examines the main functional areas of HRM, and engages with a number of key contemporary issues for both scholars and practitioners. Topics covered include: Strategic HRM Ethics in HRM Knowledge management HRM and performance Outsourcing and implications for HRM HRM in small and medium enterprises Key functional areas of HRM practice International HRM Adopting a critical perspective throughout that challenges the student to examine closely the fundamental purpose and practices of HRM, this book is essential reading for all serious students of Human Resource Management and for any HRM professional looking to deepen his understanding of the subject. David G. Collings is Lecturer in International Management at the National University of Ireland, Galway and editor of the Human Resource Management Journal. Geoffrey Wood is Professor of Human Resource Management at the University of Sheffield Management School, UK. He has authored seven books and published in a variety of journals.

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4 Human Resource Management A critical approach Edited by David G. Collings and Geoffrey Wood

5 First published 2009 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, NY Routledge is an imprint of the Taylor & Francis Group, an informa business This edition published in the Taylor & Francis e-library, To purchase your own copy of this or any of Taylor & Francis or Routledge s collection of thousands of ebooks please go to David G. Collings and Geoffrey Wood 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 Human resource management: a critical approach / edited by David G. Collings and Geoffrey Wood. p. cm. Includes bibliographical references and index. 1. Personnel management. I. Collings, David G. II. Wood, Geoffrey. HF5549.H dc ISBN Master e-book ISBN ISBN10: (hbk) ISBN10: (pbk) ISBN10: (ebk) ISBN13: (hbk) ISBN13: (pbk) ISBN13: (ebk)

6 Contents List of figures List of tables About the editors Contributors vii viii ix x 1 Human resource management: a critical approach 1 DAVID G. COLLINGS AND GEOFFREY WOOD SECTION I The context of HRM 17 2 HRM in changing organizational contexts 19 PHIL JOHNSON 3 Strategic HRM: a critical review 38 JAAP PAAUWE AND CORINE BOON 4 HRM and organizational performance 55 STEPHEN WOOD 5 HRM: an ethical perspective 75 MICK FRYER 6 Organizational outsourcing and the implications for HRM 92 RICHARD HAINES 7 The socio-cultural aspects of knowledge management and the links to HRM: a critical perspective 113 DONALD HISLOP 8 HRM in small and medium-sized enterprises (SMEs) 130 TONY DUNDON AND ADRIAN WILKINSON

7 vi Contents SECTION II The practice of HRM Recruitment and selection 151 ROSALIND SEARLE 10 HR planning: institutions, strategy, tools and techniques 169 ZSUZSA KISPAL-VITAI AND GEOFFREY WOOD 11 Performance management 189 ANTHONY MCDONNELL AND PATRICK GUNNIGLE 12 Reward management 208 SUZANNE RICHBELL AND GEOFFREY WOOD 13 Human resource development 222 IRENA GRUGULIS 14 Industrial relations and human resource management 237 GILTON KLERCK SECTION III The international context of HRM Human resource management in emerging markets 263 FRANK M. HORWITZ AND KAMEL MELLAHI 16 Comparative HRM: the debates and the evidence 278 CHRIS BREWSTER AND WOLFGANG MAYRHOFER 17 International human resource management 296 DAVID G. COLLINGS, HUGH SCULLION AND DEIRDRE CURRAN Index 313

8 Figures 3.1 Generic perspectives on strategy The Harvard approach The Michigan approach the human resource cycle Contextually based human resource theory Alvesson and Kärreman s knowledge management approaches Stages of a typical performance management system Unanticipated side effects to performance measures The balanced scorecard Units of analysis in comparative HRM and their social complexity 284

9 Tables 1.1 Definitions of HRM Bureaucracy and post-bureaucracy compared Outside-in versus inside-out perspective Key characteristics of two epistemologies in the knowledge management literature From small is beautiful to bleak house People management strategies in large and SME firms (per cent) Employee communication channels in SMEs (per cent) Examples of new management techniques in SMEs ( ) Strategies for managing shortages of surpluses in the workforce Performance appraisal techniques Approaches to workforce development 227

10 About the editors David G. Collings is Lecturer in International Management at the National University of Ireland, Galway. Previously he was on the faculty at the University of Sheffield Management School. He was also a Visiting Research Fellow at Strathclyde Business School. His research interests focus on management in multinational corporations with a particular emphasis on staffing and industrial relations issues. His work in these areas has been published in outlets such as the Journal of World Business, International Journal of Human Resource Management and the International Journal of Management Reviews. His recent books include Global Staffing (with Hugh Scullion), published by Routledge, and International HRM and International Assignments (with Mike Morley and Noreen Heraty), published by Palgrave Macmillan. He is Editor of the Human Resource Management Journal. Geoffrey Wood is Professor of Human Resource Management at the University of Sheffield Management School and visiting Professor at the Nelson Mandela Metropolitan University in South Africa. He has authored/co-authored/edited seven books, and over one hundred articles in peer-reviewed journals (including journals such as Work and Occupations, Work, Employment and Society, Organization Studies, International Journal of Human Resource Management, British Journal of Industrial Relations, Human Resource Management (US), etc.). Geoff s current research interests centre on the systematic testing and development of contemporary institutional theory in the light of large-scale survey evidence. This has encompassed assessments of variations in industrial relations in different institutional settings, the relative fortunes of organized labour in emerging markets, and developments and extensions of regulationist theories. The latter includes assessments as to internal diversity within specific varieties of capitalism, and the relationship between finance and HR practice.