The current issue and full text archive of this journal is available at www.emeraldinsight.com/2051-6614.htm
Human resource management and
yesterday and today
Randall Schuler and Susan E. Jackson
HRM and OE
School of Management and Labor Relations, Rutgers University, New Jersey, USA and Lancaster University Management School, Lancaster, UK Abstract
Purpose – The purpose of the paper is to describe how the understanding of the relationship between human resource management (HRM) and organizational effectiveness (OE) has evolved during the past three decades and to provide examples how firms are using HRM to improve their OE today by addressing several challenges that result from a broader stakeholder model. Design/methodology/approach – This paper reviews the past and current work on the relationship between HRM and OE.
Findings – This findings indicate that the relationship between HRM and OE is very different when comparing the past with the current work on the relationship between HRM and OE. A major reason for this is the current work on OE uses the multiple stakeholder model that accounts for many more stakeholders than the past work.
Practical implications – Human resource (HR) professionals have the opportunity to demonstrate many ways by which HRM can influence OE, and not just solely on the basis of firm profitability. Thus the use of the multiple stakeholder model today offers the HR professional and the HR profession many more opportunities to demonstrate their importance and impact. Originality/value – A systematic review and comparison of the past and current relationship between HRM and OE using the multiple stakeholder model have not been using both the viewpoints of both academics and practitioners.
Keywords Human resource management, Organizational effectiveness, Multiple stakeholders Paper type General review
Starting in the late 1970s and early 1980s, human resource management (HRM) professionals and academics started to more actively consider about how their work could contribute to the effectiveness (success) of their organizations ( Jackson et al., 2014). Following up on Michael Porter’s path-breaking insights about competitive strategy and competitive advantage in the early 1980s (Porter, 1980, 1985), we proposed an approach for linking HRM with organizational effectiveness (OE) that was grounded in an understanding of the employee behaviors needed to effectively implement alternative types of competitive strategies (Schuler and Jackson, 1987). Essentially we argued that a firm’s HRM practices should be designed with and grounded in an understanding of the specific employee behaviors required to successfully implement the firm’s particular competitive strategy. The objective of a firm’s HRM practices, we argued, is encouraging and supporting employee behaviors to drive successful strategy execution. As we recognized and acknowledged then, others had already begun to discuss the potential for HRM to contribute to OE, but our article was the first to describe the systemic relationships among HRM practices and specific approaches firms could use as they strive to gain competitive advantage. That 1987 article may not have been the first article to discuss HRM using a strategic lens (i.e. looking at HRM’s role from an
Journal of Organizational
Effectiveness: People and
Vol. 1 No. 1, 2014
r Emerald Group Publishing Limited
external perspective) rather than using the more familiar technical lens (i.e. looking from inside the human resource (HR) function outward), but it was one of the first ( Jackson et al., 2014; Gratton, 2000; Ulrich et al., 2013). At the core of our initial, earlier approach to strategic HRM were first, the development of a menu of HRM practice choices and second, the assertion that the choices a firm made among the different...
References: Ambec, S. and Lanoie, P. (2012), “The strategic importance of environmental sustainability”, in
Jackson, S.E., Ones, D
Brewster, C.J. and Mayhofer, W. (2013), Handbook of Research in Comparative Human Resource
Management, Edward Elgar Publishing, London.
Briscoe, D., Schuler, R.S. and Tarique, I. (2012), International Human Resource Management,
4th ed., Routledge, London.
Browne, J. and Nuttall, R. (2013), Beyond Corporate Social Responsibility: Integrated Employee
Engagement, McKinsey, Boston, MA.
Caglar, D., Kapoor, N. and Ripsam, T. (2013), “Think functionally, act strategically”,
StrategyþBusiness, Spring Issue 70.
Chuang, C.H. and Liao, H. (2010), “Strategic human resource management in service context:
taking care of business by taking care of employees and customers”, Personnel Psychology,
Cockerell, L. (2008), Creating Magic, Crown Publishing Group, New York, NY.
Cooke, F.L. (2014), “Global expansion and human resource management of Huawei Technologies
Ltd”, in Gooderham, P., Grogaard, B
DeVoorde, K.V., Paauwe, J. and Veldhoven, M.V. (2012), “Employee well-being and the
HRM-organizational performance relationship: a review of quantitative studies”,
Disney (2012), “Disney company overview”, available at: http://thewaltdisneycompany.com/
about-disney/company-overview (accessed February 25, 2013).
Dudley, R., Devnath, A. and Townsend, M. (2013), “The hidden cost of fast fashion”, Bloomberg
Businessweek, February 11, pp
Ehnert, I., Harry, W. and Zink, K.J. (2014), Sustainability and Human Resource Management,
Gratton, L. (2000), Living Strategy: Putting People at the Centre of Corporate Strategy, FT Prentice
Greenhouse, S. (2013), “Bangladesh fears an exodus of apparel firms”, The New York Times,
May 2, p
Guerci, M. and Shani, A.B. (2013), “Moving toward stakeholder-based HRM: a perspective
of Italian HR managers”, International Journal of Human Resource Management, Vol
No. 6, pp. 1130-1150.
Holstein, W.J. (2013), “Hyundai’s capabilities play”, StrategyþBusiness, Vol. 70, Spring, pp. 1-12.
Huselid, M.A. (2011), “Celebrating 50 years: looking back and looking forward: 50 years of
Human Resource Management”, Human Resource Management, Vol
Huselid, M.A., Jackson, S.E. and Schuler, R.S. (1997), “Technical and strategic human resource
management effectiveness as determinants of firm performance”, Academy of
IBM and Towers Perrin (2000), Priorities for Competitive Advantage, IBM and Towers Perrin,
Ireland, D. (2013), personal communication, April 24.
Jackson, S.E. (2012), “Melding I-O scholarship and practice for environmental sustainability”,
Industrial and Organizational Psychology: Perspectives on Science and Practice, Vol
Jackson, S.E. and Schuler, R.S. (1995), “Understanding human resource management in the
context of organizations and their environments”, Annual Review of Psychology, Vol
Jackson, S.E., Ones, D. and Dilchert, S. (Eds) (2012), Managing Human Resources for Environmental
Sustainability, Jossey-Bass, San Francisco, CA.
Jackson, S.E., Schuler, R.S. and Jiang, K. (2014), “Strategic HRM: a review and framework”,
Academy of Management Annuals, Vol
Jackson, S.E., Schuler, R.S. and Werner, S. (2012), Managing Human Resources 11e, Cengage,
Jiang, K., Lepak, D.P., Hu, J. and Baer, J. (2012), “How does human resource management influence
organizational outcomes? A meta-analytic investigation of mediating mechanisms”,
Academy of Management Journal, Vol. 55 No. 10, pp. 1264-1294.
Jullens, J. (2013), “Solving China’s M&A Maze”, StrategyþBusiness, April 1.
Paik, Y. and Belcher, J.S. (2012), “Key HRM strategies for M&A integration in the global banking
industry: a comparative study of the USA, Europe and South America”, European Journal
Porter, M.E. (1980), Competitive Strategy, Free Press, New York, NY.
Porter, M.E. (1985), Competitive Advantage, Free Press, New York, NY.
Porter, M.E. (2013), TED Conference, Edinburgh, June 10, available at: www.youtube.com/
watch?v¼0iIh5YYDR2o (accessed July 13, 2013).
Purcell, J. (1995), “Corporate strategy and the link with human resource management”, in Storey, J.
Renwick, D.W.S., Redman, T. and Maguire, S. (2013), “Green human resource management:
a review and research agenda”, International Journal of Management Reviews, Vol
Rogovsky, N. and Schuler, R.S. (2007), Socially Sensitive Enterprise Restructuring in Asia, Asian
Productivity Organization, Tokyo.
Rucci, A.J., Kirn, S.P. and Quinn, R.T. (1998), “The employee-customer-profit chain at sears”,
Harvard Business Review, January-February, pp
Schuler, R.S. (1988), “Human resource management practice choices”, in Schuler, R.S.,
Schuler, R.S. (1992), “Strategic human resources management: linking the people with the
strategic needs of the business”, Organizational Dynamics, Summer, pp
Schuler, R.S. (2000), “Human resource management activities in international joint ventures”, in
Schuler, R.S. and Jackson, S.E. (1987), “Linking competitive strategies with human resource
management practices”, Academy of Management Executive, Vol
Schuler, R.S. and MacMillan, I.C. (1984), “Gaining competitive advantage through human resource
management practices”, Human Resource Management, Vol
Schuler, R.S. and Moelleney, M. (2003), Living Case of Centerpulse, GSBA Zurich, Zurich.
Please join StudyMode to read the full document