NEW CHALLENGES FOR EUROPEAN HUMAN RESOURCE MANAGEMENT

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1 NEW CHALLENGES FOR EUROPEAN HUMAN RESOURCE MANAGEMENT

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3 New Challenges for European Human Resource Management Edited by Chris Brewster Wolfgang Mayrhofer and Michael Morley

4 First published in Great Britain 2000 by MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 6XS and London Companies and representatives throughout the world A catalogue record for this book is available from the British Library. ISBN ISBN (ebook) DOI / First published in the United States of America 2000 by ST. MARTIN'S PRESS, LLC, Scholarly and Reference Division, 175 Fifth Avenue, New York, N. Y ISBN (cloth) Library of Congress Cataloging-in-Publication Data New challenges for European human resource management/edited by Chris Brewster, Wolfgang Mayrhofer, and Michael Morley. p. cm. Includes bibliographical references and index. ISBN Personnel management±europe±case studies. I. Brewster, Chris. II. Mayrhofer, Wolfgang. III. Morley, Michael. HF E9 N ±dc21 99± # Selection, editorial matter and Chapter 1 # Chris Brewster, Wolfgang Mayrhofer and Michael Morley 2000; individual Chapters # individual contributors 2000 Softcover reprint of the hardcover 1st edition All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London WIP 0LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources

5 Contents List of Tables List of Figures List of Abbreviations Notes on the Contributors viii xii xiv xv PART I INTRODUCTION 1 The Concept of Strategic European Human Resource Management Wolfgang Mayrhofer, Chris Brewster and Michael Morley 3 PART II ASPECTS OF FLEXIBILITY 2 Flexible Working Practices: The Challenges for Europe Ricard SerlavoÂs and Mireia Aparicio-Valverde 37 3 Job Rotation: An Empirical Analysis of the Utilisation and StrategicIntegration in European Companies Andrea Friedrich, RuÈdiger Kabst, Maria Rodehuth and Wolfgang Weber 56 4 A Comparative Analysis of the Link between Flexibility and HRM Strategy Lesley Mayne, Olga Tregaskis and Chris Brewster 72 5 Flexibility in Profile: An Empirical Analysis based on the Data of 394 Belgian Companies Dirk Buyens, Tine Vandenbossche and Ans De Vos 97 6 Flexibility in Norwegian and British Firms: Competitive Pressure and Institutional Embeddedness Paul N. Gooderham and Odd Nordhaug 109 v

6 vi Contents 7 Flexible Working Patterns: Towards Reconciliation of Family and Work Nancy Papalexandris 124 PART III TRAINING AND DEVELOPMENT 8 Human Resource Development in Foreign Multinational Enterprises: Assessing the Impact of Parent Origin Versus Host Country Context Olga Tregaskis In Search of Management Development in Europe: From Self-fulfilling Prophecies to Organisational Competence Henrik Holt Larsen 168 PART IV INDUSTRIAL RELATIONS 10 Evaluating Change in European Industrial Relations: Research Evidence on Trends at Organisational Level Michael Morley, Chris Brewster, Patrick Gunnigle and Wolfgang Mayrhofer Communication, Consultation and the HRM Debate Wolfgang Mayrhofer, Chris Brewster, Michael Morley and Patrick Gunnigle 222 PART V HUMAN RESOURCE MANAGEMENT IN CENTRAL EUROPE AND THE PACIFIC RIM 12 Human Resource Policies in European Organisations: An Analysis of Country and Company-specific Antecedents Wolfgang Weber, RuÈdiger Kabst and Christopher Gramley Human Resource Management in Bulgaria: Hot Problems during the Transition to Market Economy Elizabeth Vatchkova 267

7 Contents vii 14 Human Resource Management in Australia: Towards a New Metaphor Robin Kramar 280 PART VI RESEARCH IN COMPARATIVE HUMAN RESOURCE MANAGEMENT 15 Coordination of Research Networks: Market, Bureaucracy and Clan in the Cranfield Network on European Human Resource Management (Cranet-E) Wolfgang Mayrhofer Comparative Research in Human Resource Management: A Review and an Example Chris Brewster, Olga Tregaskis, Ariane Hegewisch and Lesley Mayne 324 Index 349

8 List of Tables 1.1 Member countries and years of surveys of Cranet-E Percentage of companies who have broadened their employees' job content in the past 3 years (1995) Accidents in Spain: breakdown by type of contract and sector of economy Systematic implementation of job rotation according to countries Systematicimplementation of job rotation in European companies according to economic sectors Systematic use of job rotation according to the number of employees Expected relationships between variables Correlations of independent variables Results of logisticregression 66 4AI.1 Discriminant function analysis (DFA) ± summary table 88 4AI.2 Classification results 88 4AI.3 Characteristics of high and low users of flexible working practices 89±90 4AII.1 Results for UK data 90 4AII.2 Results for Norwegian data 90±1 4AII.3 Results for Swedish data 91 4AII.4 Results for German data 92 4AII.5 Results for French data 92 4AII.6 Results for five-country European data 92±3 5.1 Proportion of organisations using flexible working arrangements Change in the use of flexible working arrangements over the last 3 years Proportion of workforce who are on specific contracts Proportion of organisations with changes in the specification of jobs over the last three years Recognition of unions as counterparts in bargaining Reported changes in the influence of unions within the firms during the last 3 years Operationalisation of variables 119 viii

9 List of Tables ix 6.4 Effects of trade union power, national context, sector and degree of competition on changes in the use of temporary employees, part-time employees and subcontracting Percentage of organisations with a change in the use of flexible practices in Greece Percentage of organisations using flexible practices for more than 5% of their workforce Training and development indicators and questionnaire items 152 8AI.1 List of significant and non-significant results ± organisations % and mean scores on each of the training and development indicators HRD practices discriminating between MNEs and indigenous organisations Percentage of organisations with a `high-flyer' policy Percentage of organisations where there has been a change in responsibility of line management for training and development over the last 3 years Percentage of organisations where there has been a change in the use of coaching over the last 3 years Percentage of organisations where there has been a change in the use of mentoring over the last 3 years Percentage of organisations where there has been a change in the use of on-the-job training over the last 3 years Percentage of organisations where there has been a change in the use of line managers over the last 3 years Percentage of organisations considering people management and supervision, as a training area, to be important to them over the next 3 years Percentage of organisations where there has been a change in the specification of managerial jobs over the last 3 years People employed by the organisation Percentage of organisations with a corporate strategy Percentage of organisations using the appraisal system(s) to determine the following Primary responsibility for major policy decisions on training and development Union density in European countries (1994) 209

10 x List of Tables 10.2 Proportion of employees in a trade union Proportion of employees in a trade union: 4-year trends Trade-union recognition Trade-union recognition: 4 year comparisons Trade-union influence Trade-union influence: 4 year comparisons Where policy decisions on industrial relations are mainly determined Primary responsibility for major policy decisions on industrial relations Incidence of statutory works councils/statutory boardlevel employee representation in the 12 member states Percentage of organisations reporting a change in the use of direct verbal or written methods to communicate major issues to employees during the last 3 years Briefing of different groups of employees Percentage of organisations reporting a change in number of employees communicating their views through more individualised ways of communication Percentage of organisations reporting a change in the use of representative staff bodies to communicate major issues to employees during the last 3 years Percentage of organisations reporting a change in number of employees communicating their views through more collectivist ways of communication Questionnaires mailed and returned in the countries examined Proportion of the organisations surveyed with policies in HRM areas Influencing factors of HR policies for pay and benefits Influencing factors of HR policies for training and development Influencing factors of HR policies for recruitment and selection Influencing factors of HR policies for employee communication Influencing factors of HR policies for equal opportunity/ diversity Influencing factors of HR policies for people management philosophy 259

11 List of Tables xi 12.9 Influencing factors of HR policies for high-fliers Direction and explanatory value (chi-square improvement) of the significant correlation between organisation- and country-specific antecedents and HR policies Typologies for approaches to labour management Organisational failures framework Cranet-E ± sample size and response rates in years of survey Countries surveyed European survey response rates 341

12 List of Figures 1.1 Different paradigms of HRM Atkinson's (1984) flexible firm model Percentage of Spanish and European firms that have increased their use of different kinds of job contracts during the past three years (1995) Proportion of workforce on temporary contracts in Spanish and European companies (1995) Organisational environments and types Percentage of organisations with a high-flyer policy and a corporate strategy Percentage of organisations with a high-flyer policy and appraisal system(s) to determine promotion potential Percentage of organisations with a high-flyer policy and appraisal system(s) to determine career development Percentage of organisations with a high-flyer policy and line manager responsibility for training and development European averages of percentage of organisations reporting an increase/decrease in the use of various methods Conceptual frame for the analysis of HR policies in the European context Conceptual framework for the analysis of country-and organisation-specific influences on HR policies in the European context Proportion of organisations surveyed with policy in HRM areas Classification of the HR policies according to the dominant antecedents AI.1 Percentage of organisations indicating the approximate proportion of the workforce on shift working contracts AI.2 Percentage of organisations indicating the approximate proportion of the workforce on temporary/casual contracts 276 xii

13 List of Figures xiii 13AI.3 Percentage of organisations indicating the approximate proportion of the workforce on fixed-term contracts AI.4 Percentage of organisations indicating the approximate proportion of the workforce on shift-working contracts AI.5 Percentage of organisations indicating the approximate proportion of the workforce on annual hours contracts AI.6 Percentage of organisations indicating the approximate proportion of the workforce on part-time contracts Response rates across countries for Survey industry distribution for Survey size distribution for

14 List of Abbreviations CEE Central and Eastern Europe Cranet-E Cranfield Network on European Human Resource Management DFA Discriminant Function Analysis EAPM European Association of Personnel Management HFO High Flexibility Organisations HR Human Resources HRD Human Resources Development HRM Human Resource Management IR Industrial Relations IRC Industrial Relations Commission LFO Low Flexibility Organisations MNE Multinational Enterprises SHRM StrategicHuman Resources Management xiv

15 Notes on the Contributors Mireia Aparicio-Valverde is a researcher at the Universitat Oberta de Catalunya, Spain. Chris Brewster is Director of the Centre for International Human Resource Management at Cranfield School of Management, UK. DirkBuyens is Professor at the De Vlerick School voor Management, University of Ghent, Belgium, where he is Head of the Human Resource Department and Director of the Executive MBA programme. Ans De Vos is co-ordinator of the Executive MBA programme at the De Vlerick School of Management in Ghent, Belgium. Andrea Friedrich is researcher at the University of Paderborn, Germany. Paul N. Gooderham is Professor at the Norwegian School of Economics and Business Administration in Bergen, Norway. Christopher Gramley is human resource officer at Bosch in BuÈhl, Germany. PatrickGunnigle is a Professor at the University of Limerick. Ariane Hegewisch is Lecturer in European Human Resource Management at Cranfield School of Management, UK. RuÈdiger Kabst is Assistant Professor of Human Resource Management at the University of Paderborn, Germany. Robin Kramar is Associate Professor at the Centre for Australasian Human Resource Management, Macquarie Graduate School of Management, Macquarie University, Australia. xv

16 xvi Notes on the Contributors HenrikHolt Larsen is Professor and Associate Dean at the Institute of Organisation and Industrial Sociology at Copenhagen Business School, Denmark. Lesley Mayne is an independent researcher and part-time student at Cranfield School of Management. Wolfgang Mayrhofer is Professor of Management and Organisational Behaviour at the Vienna University of Economics and Business Administration, Austria. Michael Morley is Lecturer in Personnel Management and Industrial Relations at the Department of Personnel and Employment Relations, College of Business, University of Limerick, Ireland. Odd Nordhaug is Professor at the Norwegian School of Economics and Business Administration in Bergen, Norway. Nancy Papalexandris is Professor of Human Resource Management at Athens University of Economics and Business Administration. Maria Rodehuth is an independent researcher and managing director of Paderborner Stadthallen Betriebsgesellschaft in Paderborn, Germany. Ricard SerlavoÂs is Professor of Human Resource Management at ESADE School of Management in Barcelona, Spain. Olga Tregaskis is a researcher at De Montfort University, Leicester. Tine Vandenbossche is an independent researcher and consultant at Ernst & Young in Brussels, Belgium. Elizabeth Vatchkova is Associate Professor at the International University, Sofia, Bulgaria. Wolfgang Weber is Professor of Human Resource Management at University of Paderborn, Germany, and also its President.