15.Haggerty, John J., And Patrick M. Wright. Strong Situations and Firm Performance a Proposed...

8/9/2019 15.Haggerty, John J., And Patrick M. Wright. Strong Situations and Firm Performance a Proposed Re-Conceptualizati

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Strong Situations and Firm Performance: A Proposed Re-Conceptualization of the Role of the HR Function

John J. Haggerty and Patric !. "right CRITIQUES OF HRM AND FIRM PERFORMANCE STRONG SITUATIONS HUMAN CAPITAL IN THE FUNCTION MANAGEMENT EXPECTATIONS STRONG SITUATIONS AND THEIR CRITERIA IN HRM

STRONG SITUATIONS AND THE ROLE OF THE IMPORTANCE OF IMPLEMENTATION THE FUNCTION AND STRONG SYSTEMSPUTTING IT ALL

TOGETHER ENTRY CITATION

Facilitator: Imagine yourself in a world where all of the administrivia, the lowestvalue added work you do, is suddenly gone. What is it that you will now do with thatavailable time?

HR ractitioner: !"fter a long #ause$ I don%t honestly know, but I%m fairly certain Iwon%t have the skills to do it.

In a recent series o !"o#a" HR $or%in! !ro&' sessions( $e consistent") *ear+ t*atso,e$*ere #et$een -. an+ /. 'er cent o t*e ti,e $or%e+ #) re"ati0e") *i!*1"e0e"HR 'ro essiona"s is( #) t*eir o$n a+,ission( "o$10a"&e a++e+( an+ t*&s on") re,ote")connecte+ to ir, 'er or,ance2 3*i"e ,ost $o&"+ a+,it t*at o&tso&rcin!(a&to,ation( se" 1ser0ice an+ +e0o"&tion 4to "ine ,ana!ers5 are #e!innin! to *e"'( t*ereis sti"" a air") *i!* a+,inistrati0e co,'onent to t*eir +ai") tas%s2 3*i"e t*is in an+ oitse" is note$ort*)( it is t*e senti,ent a#o0e $*ic* is ,ost $orriso,e2 3*at e6act")is conte,'orar) HR e6'ecte+ to #e +oin!( an+ +o t*e) *a0e t*e s%i""s to ,eet t*osee6'ectations7 Can+i+")( ,an) 'ractitioners $i"" ans$er( 8I +on9t %no$:2

A re0ie$ o t*e e6tant "iterat&re on strate!ic HRM $i"" 'ro0i+e a $ea"t* oin or,ation a#o&t in+i0i+&a" 'ractices 4'er or,ance ee+#ac%( incenti0e 'a)(

'artici'ation in !oa" settin!( ;o# +esi!n( etc25( or #&n+"es o 'ractices 4*i!* 'er or,ance $or% s)ste,s5( an+ t*eir re"ations*i' $it* ir, 'er or,ance( #&t $i"" +o"itt"e to ans$er t*e


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Sc*o"ars *a0e re'eate+") re erre+ to t*e 'ractice1'er or,ance re"ations*i' as t*e8#"ac% #o6: o HRM2 T*e e0i+ence s&!!ests a re"ations*i'( #&t t*e in+e'en+ent0aria#"es 4'ractices an+=or #&n+"es5 are +ista" ro, t*e o&tco,es 4'ro ita#i"it)=,ar%et0a"&e5( an+ t*e e ects si>es are s,a""2 An+ t*is #o+) o 'ractice='er or,ance"iterat&re +oes "itt"e to s&!!est $*at t*ose in0o"0e+ in HRM as a 'ro ession s*o&"+ #e

+oin!( asi+e 'er*a's ro, a+o'tin! 'ro0en 'ractices an+ #&n+"es2 T*is a''roac*i!nores t*e entire iss&e o or!ani>ationa" conte6t2

In t*is c*a'ter $e s&!!est t*at conce't&a"i>in! HRM as a 'ractice or a set o 'racticesnot on") i!nores i,'ortant as'ects o conte6t( it ,a) in act "ea+ to t*e +e0e"o',ento HR &nctions t*at #ase t*eir contri#&tion to t*e #&siness on 'ractices or #&n+"es4#enc*1,ar%in!5( not on #&siness res&"ts2 As t*e ie"+ o #&siness 'rocess o&tso&rcin!contin&es to ,at&re an+ i,'ro0e( HR &nctions oc&se+ on HR 'ractices 4"ar!e")a+,inistrati0e in nat&re5 are in+in! "ess an+ "ess "e t or t*e, to +o2

3e s&!!est a re1conce't&a"i>ation o HRM not as 'ractices an+ #&n+"es( #&t assi!na"s ro, ,ana!e,ent to e,'"o)ee !ro&'s an+ in+i0i+&a"s2 3e $i"" e6'"ore *o$t*e "e0e" o *&,an ca'ita" in t*e HR &nction( HR s)ste,s( str&ct&re( an+ "ine,ana!e,ent e6'ectations o t*e HR &nction can co,e to!et*er to #&i"+ an+ ,aintainlegitimate HR &nctions2 Le!iti,ate HR &nctions $i"" #e #etter 'ositione+ to createstron! sit&ations2 3e #e"ie0e t*at it is t*ose stron! sit&ations $*ic* t*en a""o$ HRMto i,'act ir, 'er or,ance t*ro&!* t*e in+i0i+&a" inter'retation o ,ana!e,entsi!na"s an+ t*e +iscretionar) #e*a0ior o e,'"o)ees2

O&r ar!&,ent is t*at t*e e,er!in! ro"e 4i not t*e *istorica" #&t rare") ac*ie0e+ ro"e5o HRM( is t*e creation o t*ose stron! sit&ations $*ic* a""o$ or t*e +e0e"o',ent oa s*are+ c"i,ate in $*ic* t*e inten+e+ si!na"s ro, "ea+ers are correct") inter'rete+

#) t*e tar!et a&+ience 4s5( an+ +ri0e t*e a''ro'riate in+i0i+&a" 4+iscretionar)5 #e*a0iors $*ic* a!!re!ate to !enerate co,'etiti0e a+0anta!e2 T*at is( a,i+ a"" t*eco,'"e6it) t*at is t*e ,o+ern co,'etiti0e or!ani>ation( "oca" actors( a''")in! si,'"er&"es( are t*e root o s&staine+ co,'etiti0e a+0anta!e2 An+ t*e ,ost 0ita" ro"e o HRMis to *e"' t*e or!ani>ation esta#"is* an+ ,aintain t*e 'ro'er c"i,ate an+ t*e +ecision*e&ristics #e*in+ t*ose si,'"e r&"es2

3e $i"" irst re0ie$ so,e o t*e c&rrent criticis,s o HR( ,an) o $*ic* oc&s on t*eina#i"it) o HR to ac*ie0e 8#&siness 'artner: stat&s2 3e $i"" t*en t&rn o&r attention tot*e researc* on t*e HRM Per or,ance "in%( an+ t*e contin&in! +isc&ssion o t*e

8#"ac% #o6:2 3e $i"" t*en e6a,ine t*e conce't o stron! sit&ations( in 'artic&"ar?o$en an+ Ostro 9s 4@.. 5 HR s)ste, stren!t* conce't2 3e $i"" &se t*is ne$conce't to !o insi+e t*e #"ac% #o6 an+ e6'"ore t*e ro"e o t*e HR &nction in +ri0in!

'er or,ance t*ro&!* #&i"+in! t*e stren!t* o t*e HR s)ste,2

CR#$#%&'S (F HR

Recent")( a n&,#er o esta#"is*e+ sc*o"ars an+ se0era" co,,entators #e!an to 'a)attention to t*e notion o HR &nctiona" e6ce""ence2 In one o t*e ,ost in a,o&s

'assa!es in Why We Hate HR, Ha,,on+s [email protected] ta%es +ea+ ai, at t*e 'eo'"e o HR$it* t*e o""o$in! no$ $e""1%no$n 'ara!ra'*


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&ost HR organi'ations have ghettoi'ed themselves literally to the brink ofobsolescence. ()hey are com#etent at administrivia ( but com#anies areincreasingly farming those activities out to contractors ( What%s left is the moreim#ortant strategic role of raising the re#utational and intellectual ca#ital of thecom#any*but HR is, it turns out, uni+uely unsuited for that. !#. -$

3*i"e so,e$*at ,ore sc*o"ar") in *is a''roac*( La$"er [email protected] reac*es a 0er) si,i"ar conc"&sion

It is nearly unanimous that HR can and should add more value to cor#orations. )hebest way to do this is by being a business #artner*by directly im#roving the

#erformance of the business. )his can be accom#lished by effective talentmanagement, hel#ing with change management, influencing strategy, and a host ofother value added activities that im#act effectiveness. ut HR does not seem able to

#osition itself as a business #artner in many cases. !#. /01$

?ot* a&t*ors see, to #e i,'")in! t*at t*e strate!ic ro"e no$ i+enti ie+ as ,ost "i%e")to i,'act ir, 'er or,ance( t&rns ,ore on t*e 'eo'"e in HR t*an t*e 'ractices o HR2An+ ina"")( in re0ie$in! t*e !enera" in a#i"it) o t*e HR &nction to o'erate at t*e+esire+ strate!ic "e0e"( ?ec%er an+ H&es"i+ 4@.. 5 s&!!est 83*et*er t*is ,ar%et

ai"&re is +&e to a "ac% o %no$"e+!e( a "ac% o ,ana!eria" co,'etence( or an ina#i"it)to e6ec&te 4or ,ore "i%e") so,e co,#ination5 is o'en or con;ect&re( an+ it is *o'e+(

&t&re researc*2: 4'2 .B5

T*e +e!ree o con0er!ence on t*e i,'ortance o e6ec&tion 4not t*e se"ection o 'ractices5( an+ t*e nee+ or i,'ro0e+ s%i""s a,on! t*ose res'onsi#"e 4HR 'ro essiona"s5( is re,ar%a#"e2 Yet to +ate( "itt"e o t*e s&!!este+ $or% *as #een +one(an+ t*e 're+o,inant oc&s o strate!ic HR researc* re,ains on 'ractices an+ #&n+"es2

HR! A)* F#R! P'RF(R!A)C'

3*i"e ationor inancia" 'er or,ance o ir,s *a0e a $e""1esta#"is*e+ *istor) 4?ec%er an+H&se"i+( 3ri!*t et a"2( @..-52 ?&r+ene+ #) an a+,inistrati0e *erita!e( *&,anreso&rces 'ractitioners *a0e "on! #een intereste+ in e,'irica" 'roo t*at t*eir $or% isas 0a"&a#"e to ir, s&ccess as t*e $or% o ot*er s&''ort 'ro essiona"s s&c* asacco&ntants an+ "a$)ers 4?o&+rea& an+ Ra,sta+( @..@52 T*eoretica" $or% +one in t*eear") .s "e+ to a "&rr) o aca+e,ic researc* ai,e+ at 'ro0in! a ,acro oror!ani>ationa" "e0e" "in% 43ri!*t an+ McMa*an( @ H&se"i+( B MacD& ie(

B5 #et$een HRM an+ ir, 'er or,ance2

?) t*e ,i+ .s( a re"ations*i' #et$een HRM an+ or!ani>ationa" "e0e" o&tco,es*a+ #een +e,onstrate+ e,'irica"") 4H&se"i+( B @...52 Researc* c"ai,e+ t*at

ir,s t*at &se+ certain *&,an reso&rce 'ractices *a+ #etter 'er or,ance t*an ir,st*at +i+ not2 Fir,s t*at #&n+"e+ 'ractices into *i!*1'er or,ance $or% s)ste,s4HP3S5 *a+ #etter 'er or,ance t*an ir,s t*at +i+ not 4MacD& ie( B52 T*ese

in+in!s $ere re'"icate+ across ,&"ti'"e in+&stries an+ sectors 4Yo&n+t et a"2( 5(an+ e0ent&a"")( in ,&"ti'"e co&ntries as $e""2 T*e res&"ts see,e+ consistent $*et*er


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one &se+ ,ar%et or acco&ntin! #ase+ ,eas&res o 'er or,ance 4H&se"i+( B52 Meta1ana")sis 4Co,#s et a"2( @.. 5 o @ in+i0i+&a" st&+ies con ir,e+ a corre"ation o .2@.($it* stron!er e ects or HP3S #&n+"es t*an or in+i0i+&a" HP3S 'ractices2 3*i"e,et*o+o"o!ica" c*a""en!es re,ain 43ri!*t et a"2( @..B5( it is no$ $i+e") acce'te+ t*at*o$ t*e $or% orce is ,ana!e+ *as an e ect on t*e 'er or,ance o ir,s2

Interestin!")( *o$e0er( $*i"e t*e researc* sai+ t*at HR 'ractices( #&n+"es an+ s)ste,s,attere+( t*e act&a" ro"e o t*e HR &nction *as #een "ar!e") "e t o&t 4 or e6ce'tionssee La+o an+ 3i"son( U"ric*( / H&se"i+ et a"2( /52 Pres&,a#")( t*e HR

&nction ,&st se"ect t*e 'ractices to i,'"e,ent or #&n+"e( #&t "itt"e i an)t*in! $asresearc*e+ or $ritten a#o&t t*e a#i"it) o t*ose in HR to +o t*at( or t*e 'rocessest*ro&!* $*ic* t*at is +one2 3*i"e t*e 8 it: o HRM to strate!) *as #een ana")>e+( t*e,ec*anics o *o$ t*at it is +eter,ine+( an+ *o$ 'ractices are se"ecte+ an+i,'"e,ente+ *as not #een a++resse+2 An+ 0irt&a"") no attention *as #een 'ai+ to t*eran!e o 'otentia" s&ccess 4or ai"&re5 t*at t*ose in HR ,i!*t *a0e $*en atte,'tin! toi,'"e,ent t*e #est1'ractices or #&n+"es2 Practice se"ection( i,'"e,entation an+e6ec&tion( t*e inte""ect&a" acti0it) o HR 'ro essiona"s( *as #een "ar!e") i!nore+ in t*ee,'irica" "iterat&re2

3*i"e researc* contin&es on 'ractices an+ #&n+"es as t*e essence o HRM s)ste,s(so,e researc*ers *a0e a+o'te+ or ca""e+ or a ,ore ,icro or!ani>ationa" a''roac* toi+enti ) inter,e+iate "in%s in t*e ca&sa" HRM1'er or,ance c*ain 4Co""ins an+ C"ar%(@..- ?o$en an+ Ostro ( @.. Ostro an+ ?o$en( @...52 T*ere is a"so a !ro$in!ac%no$"e+!e,ent t*at ,ore e+( 8t*e a#i"it) to i,'"e,ent strate!ies is( #) itse" (a reso&rce t*at can #e a so&rce o co,'etiti0e a+0anta!e2: 4'2 . 5

S$R()+ S#$&A$#()S

Fe$ or!ani>ations to+a) ,aintain strict co,,an+ an+ contro" *ierarc*ies2 In ,an)conte,'orar) or!ani>ations( "a)ers o ,ana!e,ent *a0e #een re,o0e+( s'ans ocontro" *a0e !reat") increase+( an+ "ea+ers an+ s&'er0isors are o ten &na#"e to8,e++"e: in t*e +a) to +a) acti0it) o t*eir re'orts( so,e o $*o, ,a) not e0en #e int*e sa,e '*)sica" "ocation2 Po"ic) ,an&a"s an+ +etai"e+ e,'"o)ee *an+#oo%s *a0e"ar!e") +isa''eare+( an+ e,'"o)ees are e6'ecte+ to e6ercise !reater a,o&nts o+iscretion an+ ;&+!,ent in t*eir +a) to +a) acti0ities( $*ic* s*o&"+ #e in s&''ort ot*e or!ani>ation9s strate!ic !oa"s2 ?&t *o$ +oes t*e a0era!e e,'"o)ee ,a%e s&c*+ecisions7 3e s&!!est t*at or!ani>ations !&i+e e,'"o)ee #e*a0ior #) esta#"is*in! a*i!* "e0e" set o 'rinci'"es( an+ constant") a+;&st #e*a0ior #) sen+in! 8si!na"s:t*ro&!* t*e or,a" an+ in or,a" net$or%s o t*e ir,2 HRM is t*e 'ri,ar) c*anne"t*ro&!* $*ic* s&c* si!na"s are sent2


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?&t si!na"s( e0en $*en care &"") constr&cte+ an+ sent( are sect to inter'retation2 To #e e ecti0e( a"" reci'ients s*o&"+ *ear( &n+erstan+ an+ acce't t*e ,essa!e( an+ s*o&"+ #e !&i+e+ to #e*a0e in si,i"ar $a)s to s&''ort t*e or!ani>ation9s o#;ecti0es2 T*at is(+es'ite +i erences in 'ersona"it)( interest( oc&s( etc2( in+i0i+&a"s $i"" react to,essa!es an+ #e*a0e in si,i"ar 4an+ 're+icta#"e5 $a)s2 3*en si!na"s are correct")

inter'rete+ an+ in+i0i+&a"s #e*a0e in $a)s t*at a0or +esire+ or!ani>ationa"o&tco,es( t*e sit&ation is sai+ to #e stron!2

Misc*e" 4 /- @.. 5 #&i"+in! on t*e ear"ier $or% o Le$in et a"2 4 - 5 in t*e ie"+o 's)c*o"o!)( intro+&ce+ t*e conce't o sit&ationa" stren!t*2 Years o researc* into

'ersona"it) traits re0ea"e+ sstantia" +i erences in t*e "e0e" o trait ,eas&re+ inin+i0i+&a"s as sit&ationa" c*aracteristics 0arie+ 4t*e 8'erson 0ers&s sit&ation: +e#ate52T*at is( in+i0i+&a" conscientio&sness ,eas&res 0arie+ as sit&ationa" actors c*an!e+2Misc*e" 4 /-5 in essence re0erse+ t*is in+in! an+ s&!!este+ t*at stron! sit&ationsco&"+ in+&ce consistent #e*a0iors across in+i0i+&a"s( +es'ite &n+er")in! +i erences in

'ersona"it)( $*i"e $ea% sit&ations $o&"+ a""o$ or !reater 0ariance in inter'retationan+ res'onse2 T*&s( it is i,'erati0e to create stron! sit&ations $*en t*e +esire+o&tco,e is consistenc) o #e*a0ior or action across e,'"o)ee !ro&'s2 For e6a,'"e( i c&sto,er ser0ice is i,'ortant( a"" e,'"o)ees $*o interact 4or co&"+ interact5 $it*c&sto,ers s*o&"+ +is'"a) co&rtes) an+ a carin! attit&+e( re!ar+"ess o t*eir ,oo+ ora ect at t*e 'oint o interaction2

H&,an reso&rce 'ractices are one i,'ortant $a) t*at "ea+ers sen+ si!na"s toin+i0i+&a"s in or!ani>ations2 Incenti0e 'a) '"ans( or e6a,'"e( are inten+e+ to +ri0e

#e*a0ior consistent $it* strate!ic or!ani>ationa" !oa"s2 ?&t( is a sin!"e HRM 'ractice(or e0en a c"&ster o 'ractices eno&!* to create t*e stron! sit&ation Misc*e"en0isione+7 3e +o not #e"ie0e t*is to #e tr&e2

3e conten+ t*at t*e 8#"ac% #o6: o t*e HRM1 ir, 'er or,ance "in%( or t*e a#i"it) oHRM to 'ro+&ce +esire+ or!ani>ationa" o&tco,es 4!ro$t*( 'ro it( ,ar%et 0a"&e5( is,ore "i%e") to #e a res&"t o t*e stren!t* o t*e tota" HR s)ste, t*an it is t*e res&"t oin+i0i+&a" HR 'ractices or *i!*1'er or,ance $or% s)ste,s2

H&!A) CAP#$A, #) $H' HR F&)C$#()

Man) or!ani>ations to+a) *a0e sets o *i!* "e0e" 'rinci'"es 4#asic tr&t*s( "a$s orass&,'tions5 t*at are inten+e+ to !&i+e t*e +ecision ,a%in! o e,'"o)ees at a"""e0e"s2 T*ese ,a) #e or,a"i>e+ in a cor'orate 80a"&es state,ent:( or an e,'"o)eeco+e o con+&ct2 It is *ere t*at one $o&"+ in+ state,ents a#o&t t*e 0a"&e oin+i0i+&a" inte!rit)( t*e nee+ to #e res'ect &" o +i erences( an+ t*e i,'ortance o,eetin! or e6cee+in! c&sto,er e6'ectations2 For e6a,'"e( a cor'orate 0a"&estate,ent 4'rinci'"e5 ,a) contain t*e $or+s 8e,'"o)ees are o&r ,ost i,'ortantasset:( $*ic* ,a) or ,a) not #e &"") re "ecte+ an+ s&''orte+ across a s'ectr&, oHR 'ractices s&c* as 'a) an+ #ene its( +e0e"o',ent( an+ "e6i#"e $or% arran!e,entsto 'ro,ote $or%1 a,i") #a"ance2 Si,i"ar")( a state,ent a#o&t et*ica" #e*a0ior at t*e

'rinci'"e "e0e" s*o&"+ trans"ate into 'ractices t*at 'ro,ote t*e o'en +isc&ssion o+i erences( t*e a#i"it) to re'ort


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To #e e ecti0e in !&i+in! +ecisions( 'rinci'"es ,&st #e ,a+e rea" in $a)s t*at are,eanin! &" to e,'"o)ees at a"" "e0e"s2 Consistent $it* o&r ear"ier ar!&,ent a#o&t t*ero"e o HR an+ stron! sit&ations( t*e +e!ree to $*ic* t*ere is a c"ear "in%a!e #et$eent*ese *i!* "e0e" 'rinci'"es an+ t*e in+i0i+&a" 'ractices e,'"o)ees interact $it* is ani,'ortant +eter,inant o HR "e!iti,ac) an+ s)ste, stren!t*2 ?&t( !i0en t*e ,)ria+ o

e,'"o)ee !ro&'s an+ t*e co,'"e6 arc*itect&re 4Le'a% an+ Sne""( 5 o ,o+ernor!ani>ations( *o$ can a e$ 'rinci'"es trans"ate into t*e reation( o t*e #est $a)s to 'resent ,essa!es +esi!ne+ to c*an!e #e*a0ior att*e in+i0i+&a" an+ !ro&' "e0e"( an+ a rea"istic ee" or t*e c&rrent ra,e o ,in+ in t*ee ecte+ e,'"o)ee !ro&'s2

T*is s&!!ests t*e nee+ or a stron! o&n+ation &'on $*ic* to #&i"+ an+ "e0era!e t*es%i""s i,'"ie+ #) t*e trans"ation acti0it) a#o0e2 T*e +ee' ana")tica" ca'a#i"it)(int&iti0e ca'acit)( +ata in'&t an+ 'rocessin! s'ee+s re


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"ea+ers( $*o in t&rn $i"" #&i"+ an+ ,aintain *i!* 'er or,in! HR &nctiona"or!ani>ations2

Hi!* "e0e"s o ,ana!e,ent e6'ectation $i"" a"so 'ro,ote reation9s strate!ic !oa"s: 4'2 @. 52 T*e) 'ro'ose t*ator!ani>ationa" c"i,ate ,e+iates t*e HRM1'er or,ance re"ations*i'( an+ t*e) s&!!estt*at 8stron! c"i,ates J a""o$ e,'"o)ees to &n+erstan+ t*e +esire+ an+ a''ro'riateres'onses an+ or, a co""ecti0e sense o $*at is e6'ecte+: 4'2 @. 52 T*e) 0ie$ t*eHRM s)ste, as a %e) +eter,inant o c"i,ate( an+ #e!in to s&!!est t*at researc*ers+i erentiate #et$een stron! an+ $ea% HRM s)ste,s2

HRM s)ste, stren!t* is #ase+ on 8,eta eat&res: 4?o$en an+ Ostro ( @.. ''2 @. K @ -5( +escri#e+ as +istincti0eness( consistenc) an+ consens&s2 Un+er +istincti0eness(t*e) "ist

&n+erstan+a#i"it) 0isi#i"it) "e!iti,ac) o a&t*orit) re"e0ance2

Consistenc) is ,a+e &' o

instr&,enta"it) consistent HRM ,essa!es2

3*i"e consens&s re ers to

a!ree,ent a,on! 'rinci'a" HRM +ecision ,a%ers airness2

3*en t*ese ,eta eat&res are 'resent( an+ t*e HRM s)ste, is stron!( 8t*e sense,a%in! 'rocess $i"" #e ,ost "i%e") to res&"t in t*e inten+e+ or!ani>ationa" c"i,ate2 It*e HRM s)ste, is $ea%( t*e HRM 'ractices $i"" sen+ ,essa!es t*at are a,#i!&o&san+ sect to in+i0i+&a" inter'retation2 Gi0en a,#i!&it)( one o t$o t*in!s ,a)*a''en 0aria#i"it)( or &ninten+e+ sense ,a%in!: 4?o$en an+ Ostro ( @.. @ -52


8/16

In t*e ne6t section $e $i"" oc&s ,ore +irect") on *o$ stron! sit&ations an+ c"i,ate,e+iate t*e re"ations*i' #et$een HRM an+ ir, 'er or,ance( an+ $e #e!in toi+enti ) *o$ t*e HR &nction can create an+ ,aintain t*e re


9/16

e ect re"ations*i' is ce,ente+ #) +istincti0eness 4t*e e0ent e ect is *i!*")o#ser0a#"e5( consistenc) 4t*e e0ent e ect 'resents itse" t*e sa,e across ,o+a"itiesan+ ti,e5 an+ consens&s 4t*ere is a!ree,ent a,on! in+i0i+&a"s 0ie$s o t*e e0ente ect re"ations*i'5 4 e""e)( /52 3*en a"" are 'resent to!et*er( t*e sit&ation isstron!( an+ e,'"o)ees are *i!*") "i%e") to inter'ret ,essa!es in a si,i"ar as*ion an+

#e*a0e in $a)s a''ro'riate to t*e or!ani>ation9s o#;ecti0es 4?o$en an+ Ostro (@.. 52

3*i"e ?o$en an+ Ostro i+enti ) t*e se'aration #et$een HRM 'ractices an+ HRM 'rocess( t*eir ana")sis ten+s to '"ace t*e, #ac% to!et*er in t*e or, o t*e HRMs)ste,2 T*e) t*en ana")>e t*e 0ario&s $a)s t*at +istincti0eness( consistenc)( an+consens&s can #e ,a+e 'a"'a#"e( "ea+in! to stron! HRM sit&ations2

It is *ere t*at $e #e!in to +e'art ro, t*e ?o$en an+ Ostro ana")sis an+ s&!!estt*at t*e stren!t* o t*e HRM s)ste, is "e0era!e+ ,ore on t*e 'rocess an+ "ess on t*econtent o HRM2 T*at is( in+i0i+&a" 'ractices( ta%en in t*e a!!re!ate( ,a) not "en+t*e,se"0es to creation o a stron! sit&ation( #&t t*e o0era"" HRM 'rocess +oes2

?o$en an+ Ostro i+enti ) o&r c*aracteristics o HRM t*at can oster+istincti0eness 0isi#i"it)( &n+erstan+a#i"it)( "e!iti,ac) o a&t*orit)( an+ re"e0ance2For 0isi#i"it)( t*e) ta"% a#o&t t*e nee+ or an HRM 'ractice to #e sa"ient an+ rea+i")o#ser0a#"e2 T*e) conc"&+e

)he creation of a strong organi'ational situation re+uires that situationalcharacteristics be salient and visible throughout much of the em#loyees% daily workroutines and activities. When the HR& system includes a wide s#ectrum of HR&

#ractices*for e2am#le, selection, training, diversity #rograms, em#loyee assistance #rograms, and so forth*that affect a large number of em#loyees, visibility is likely tobe higher. 32#anding the number and range of #ractices should enhance salience and visibility, because it increases com#le2ity and allows for the set of #ractices to bemore figural relative to other stimuli*both of which are #rinci#le of salience !Fiskeand )aylor, /44/$. "dditionally, shared meaning cannot be develo#ed unless most orall em#loyees are sub5ected to and can #erceive the same practices . ! owen and6stroff, 788 : 789$.

3*i"e $e #e"ie0e t*at t*e ?o$en an+ Ostro ana")sis is correct( an+ t*at 0isi#i"it)+oes in act *e"' create an+ ,aintain a stron! or!ani>ationa" sit&ation( it is not

'ractica" to t*in% in ter,s o e0er) 'ractice #ein! 0isi#"e 4or or t*at ,atter re"e0ant5to a"" e,'"o)ees( or e0en at ti,es a "ar!e sset o a"" e,'"o)ees2 Practices 0ar)across e,'"o)ee se!,ents 4*o&r")( non1e6e,'t( s&'er0isor)( e6ec&ti0e( &""1ti,e='art1ti,e( contractor( 'artner( cons&"tant5( an+ 0ar) consi+era#") across in+&str) an+co&ntr)2 Practices are( an+ s*o&"+ #e( 0isi#"e to t*ose ,ost +irect") a ecte+2 Atte,'tsto #roa+") +isse,inate in or,ation a#o&t 'ractices t*at are not re"e0ant $i"" ,ost"i%e") res&"t in si!ni icant") "ess attention to t*e c*osen ,e+i&, o0er ti,e( $ea%enin!t*e or!ani>ationa" sit&ation2 T*e co,'"e6it) o ,ost or!ani>ations to+a)( an+ t*ese!,entation o e,'"o)ees a"on! ,&"ti'"e "ines( ,a%es 0isi#i"it) at t*e 'ractices "e0e"i,'ractica"2 E orts to ,a%e a"" 'ractices 0isi#"e to a"" e,'"o)ees are "i%e") to res&"t in$*ite noise( e ort"ess") i!nore+ #) t*ose e6'ose+2


10/16

Si,i"ar concerns can #e state+ $it* res'ect to t*e ?o$en an+ Ostro 4@.. 5 notion o &n+erstan+a#i"it) an+ re"e0ance2 3*i"e it is int&iti0e") o#0io&s t*at to *a0e an e ecton an in+i0i+&a" a 'ractice ,&st #e &n+erstan+a#"e( an+ t*at c"ear co,,&nication iscritica" to s&ccess( t*e inter'"a) #et$een &n+erstan+a#i"it) an+ re"e0ance cannot #eo0er"oo%e+2 E,'"o)ees are sect to an e0er1increasin! a,o&nt o in or,ation ro,

tra+itiona" an+ ne$ 4,ore in0asi0e5 so&rces( an+ attention cannot #e 'ai+ to a""si,&"taneo&s")2 T*e si!na"s ,&st #e c"ear an+ in so,e $a) 'ersona"i>e+ to si!na" a

'artic&"ar e,'"o)ee to #e attenti0e to a ,essa!e t*at *as re"e0ance( )et a""o$ ot*ers toi!nore t*e ,essa!e as noise2 Per*a's t*e #est $a) to ,a6i,i>e attention to critica"in'&t is to 'ro0i+e it ace to ace 4an+ one on one5 in a ation or str&ct&re o HR ,atters2 3*en 'ro'er") 'ositione+ in t*eor!ani>ation 4 or e6a,'"e +irect") re'ortin! to t*e CEO( not t*ro&!* anA+,inistrati0e P or ot*er sta 'osition5( an+ 'ro'er") reso&rce+ $it* *i!* ca"i#er

'ro essiona"s( HR a''ears in t*e e)es o t*e or!ani>ation to #e "e!iti,ate2 It is t*e 'erce'tion in t*e ,in+s o in+i0i+&a" e,'"o)ees( a"" o $*o, *ear a "ar!e n&,#er o,essa!es e0er) +a)( t*at certain ,essa!es( ro, certain so&rces( +eser0e ,oreattention t*an ot*ers2 Co,'anies t*at *a0e esta#"is*e+ an+ ,aintaine+ an HR &nction

an+ a s)ste, o HR 'rocesses t*at are 0ie$e+ as i,'ortant an+ ,eanin! &" #)e,'"o)ees are ,ore "i%e") to create stron! sit&ations aro&n+ HRM( an+ t*ere ore *a0e!reater in "&ence on e,'"o)ee #e*a0ior( "ea+in! to +esire+ #&siness o&tco,es2 It ist*e stren!t* o t*e HRM s)ste, t*at creates a+e


11/16

T*&s( a"t*o&!* ?o$en an+ Ostro 4@.. 5 see, to ar!&e t*at 0isi#i"it)(&n+erstan+a#i"it)( re"e0ance an+ "e!iti,ac) o a&t*orit) are ee HRM "e!iti,ac) o a&t*orit)2

Le!iti,ac) o a&t*orit)( $e s&!!est( is not a &nction o HR 'ractices( $*ic* *as #eent*e oc&s o ,&c* i not ,ost o t*e HRM 'er or,ance "iterat&re2 3e see t*e re0ersere"ations*i'( t*at e ecti0e HR 'ractices are a &nction o HRM "e!iti,ac) oa&t*orit)2 T*at is( HR &nctions are ,ore a#"e to 'ro+&ce an+ i,'"e,ent HR 'racticest*at *a0e t*e +esire+ i,'act on e,'"o)ee #e*a0ior i t*e) are 'ercei0e+ as "e!iti,atea&t*orit) #roa+") in t*e or!ani>ation2 T*e re"ations*i' o t*e HR &nction to t*e to',ana!e,ent tea, is a critica" in!re+ient in its "e!iti,ac) o a&t*orit)2 T*isre"ations*i' is o ten 0isi#"e to e,'"o)ees( an+ si!na"s t*e, $*et*er to 'a) c"oseattention to HR as a 8'artner: in t*e #&siness( or 'a) "ess attention to HR as a "ar!e")a+,inistrati0e &nction2 T*e re"ati0e stat&s o HR to ot*er #&siness &nctions an++isci'"ines 4e2!2 acco&ntin! an+ inance( "e!a"( ,ar%etin!( etc25 is a"so o ten si!na"e+to e,'"o)ees in a 0ariet) o $a)s( inc"&+in! o ice 'ro6i,it)( atten+ance at ,eetin!san+ $*o tra0e"s $it* t*e #oss2 T*ere ore( $*en HR is #roa+") 'ercei0e+ to #e a"e!iti,ate a&t*orit) $it*in t*e or!ani>ation( it is ,ore "i%e") to #e a#"e to create an+,aintain stron! sit&ations( "ea+in! to en*ance+ 'er or,ance

3*i"e t*ese are i,'ortant antece+ents( t*e) a"one +o not create t*e stron! sit&ation+escri#e+ #) ?o$en an+ Ostro 2 3e $o&"+ ar!&e t*at !i0en c"ear e0i+ence o"e!iti,ac) o a&t*orit)( stron! sit&ations are create+ an+ ,aintaine+ in t*e 'rocesses&se+ to +e0e"o'( i,'"e,ent an+ e0a"&ate HRM itse" ( #er! 4 / 5( Co"#ert4@.. 5 s&!!ests t*at t*e ans$er ,a) "ie not in t*e +iscreet contri#&tions o tra+itiona"re+&ctionist researc*( #&t in i+enti )in! t*e critica" 'atterns in t*e strea, o e0o"0in!HRM state!)2


12/16

Co"#ert9s 4@.. 5 ar!&,ent is t*at( in accor+ance $it* t*e R? o t*e ir,( ,an) ot*e ,ost critica" contri#&tions o HRM are ca't&re+ not in in+i0i+&a"s or in in+i0i+&a"

'ractices( #&t in t*e co,'"e6 interactions an+ re"ations*i's a,on! ,an) in+i0i+&a"san+ 'ractices 4Co"#ert @.. 52 T*is s)ste,s "e0e" 0ie$ is not ne$( #&t t*e a++ition ot*eor) ro, ot*er ie"+s 4co,'"e6it)5 *e"'s 'ro0i+e an 8ana"o!ica" #ri+!e: 4Co"#ert(

@.. -B-5 "in%in! HRM an+ 'er or,ance2 It a"so its $e"" $it* Mint>#er!9s ear"iers&!!estion t*at $e s*o&"+ "oo% or 'atterns in a strea, o +ecisions to +eter,inestrate!)2

?&t Co"#ert9s ,o+e"( a"t*o&!* stron!( is not co,'"ete2 T*ere is( in o&r e6'erience( ana++itiona" "e0e" o a#straction t*at is not 'rinci'"e( not 'o"ic)( not 'ractice an+ not

'ro+&ct2 It is t*e 'rocess t*ro&!* $*ic* 'rinci'"es( 'o"icies an+ 'ractices are create+(,o+i ie+( i,'"e,ente+ an+ e0a"&ate+ on a contin&in! #asis2 It is t*e +e0ice t*atsi!na"s e,'"o)ees to #e attenti0e K t*e content o t*is 'rocess $i"" *a0e a si!ni icante ect on t*eir !ro$t* an+ +e0e"o',ent in t*e ir,( it $i"" si!na" t*e #e*a0iors t*at aree6'ecte+( an+ t*e re$ar+s or sanctions t*e) $i"" recei0e or co,'"iance or non1co,'"iance2 It is in itse" a co,'"e6 'rocess( #&t it re+&ces t*e co,'"e6it) o t*ein+i0i+&a" HR 'o"icies an+ 'ractices #) 'ac%a!in! t*e, in a $a) t*at *as "e!iti,ac)o a&t*orit) an+ con0e)s a c"ear an+ consistent ,essa!e a''ro'riate or t*e a&+ience2

For e6a,'"e( GE( $i+e") re!ar+e+ as a s&ccess &" co,'an)( *as or o0er B. )ears&ti"i>e+ its 8Session C: 'rocess to ,ana!e its HRM s)ste,2 T*e r*)t*,s o e,'"o)ee

'artici'ation in t*e 'rocess are c"ear an+ $e"" esta#"is*e+2 T*e a!en+a or eac* )ear9sSession C 'rocess is a''ro6i,ate") . 'er cent i6e+2 It contains t*e #&i"+in! #"oc%so e,'"o)ee se" e0a"&ation an+ career interest i+enti ication( "ea+ers*i' an+ - .

'er or,ance a''raisa"s( e,'"o)ee trainin! an+ +e0e"o',ent interests an+ "ea+ers*i'reco,,en+ations( an+ a re0ie$ o co,'ensation an+ #ene it 'ractices an+ t&rno0er2T*e ot*er @. 'er cent o t*e re0ie$ a!en+a re "ects c&rrent cares an+ concerns( an+,a) in0o"0e a 0er) 8+ee' +i0e: on a 'artic&"ar &nction 4e2!2 acco&ntin! or so&rcin! or tec*no"o!)5( a re0ie$ o t*e res&"ts o a recent c*an!e e ort 4e2!2 ,o0in! si6 si!,a

ro, an interna" e icienc) 'ro!ra, to a 'ro!ra, to #&i"+ c&sto,er re"ations*i's #)s*arin! t*e res&"ts5( an+=or a +isc&ssion a#o&t s'eci ic in+&str) or +e,o!ra'*ic tren+st*at i,'act t*e ,ana!e,ent o 'eo'"e 4e2!2 ,o0e,ent o a+,inistrati0e acti0it) tos*are+ ser0ices centers( an+=or t*e nee+ to 'ro,ote ,ore inno0ation an+ creati0it)across t*e #oar+25 I a s'eci ic HR 'ractice *as recent") #een c*an!e+ 4e2!2 t*e 8 orce++istri#&tion o e,'"o)ee 'er or,ance95( it ,ost "i%e") !re$ o&t o a 'rior Session C4or ,an)5( an+ $i"" #e e0a"&ate+ t*ro&!* t*e "ens o &t&re Session C9s2 T*at is( t*e

!ro$t* an+ +e0e"o',ent o t*e HRM s)ste, is not a+ *oc or sit&ationa"( it iscontaine+ $it*in a 0esse" t*at !i0es it conte6t( ,eanin! an+ i,'ortance to a"" "e0e"s o "ea+ers*i' an+ to e,'"o)ees t*ro&!* t*e 0ast co,,it,ent o "ea+ers*i' ti,e 4not ;&stHR ti,e5 to t*e 'rocess( $*ic* is *i!*") 0isi#"e to a""2

It is in t*is 'rocess +o,ain t*at $e #e"ie0e t*e $or% o ?o$en an+ Ostro an+Co"#ert can #e reconci"e+2 I one $ere to "oo% across GE or ot*er "ar!e co,'"e6or!ani>ations ro, t*e #otto, o t*e c*ain( ro, t*e +o,ain o HR 'ractices( one$o&"+ in+ t*e co,'"e6it) an+ 0ariet) near") inco,'re*ensi#"e2 I one "oo%s ro, t*eto'( ro, t*e 'rinci'"e "e0e"( one $o&"+ in+ si,'"icit) 48$e $ant to #e t*e $or"+9s,ost co,'etiti0e enter'rise95( #&t "itt"e ,eanin!2 T*e 'o"ic) "e0e" e6ists( #&t it is

0ie$e+ as eit*er a+,inistrati0e") re


13/16

!enera"") +oes not in or, action in t*e #roa+ sense2 T*e rea" 'o$er is at t*e 'rocess"e0e"( $*ere t*e !oa" to #e t*e $or"+9s ,ost co,'etiti0e enter'rise is !i0en or,(co,,&nicate+ #roa+") t*ro&!* $e"" esta#"is*e+ r*)t*,ic occ&rrences 4$e +o not sa)e0ents( #eca&se t*e) are not5( ro&tine") an+ ree Co"#ert9s 4@.. 5 e6'"icationo t*e reso&rce1#ase+ 0ie$ an+ its irre+&ci#"e co,'"e6it)( )et sti"" "oo% or t*e,e+iatin! ,ec*anis,s i+enti ie+ #) ?o$en an+ Ostro 4@.. 52 I $e oc&s on HRM"e!iti,ac) o a&t*orit)( an+ &se or!ani>ationa" str&ct&re( re#er! #e!an to c*a""en!e8con0entiona": notions o strate!) as static '"ans #) s&!!estin! t*at strate!) co&"+ #et*o&!*t o as 8a 'attern in a strea, o +ecisions: 4Mint>#er!( / 52 T*is !a0e a ,oree,er!ent ee" to $*at *a+ #eco,e t*o&!*t o as co,'"icate+ an+ e6*a&sti0ecoo%#oo%2 It a"so ,eant t*at $*at *a''ene+ a ter t*e reci'e $as create+ $as a"so 'art


14/16

o strate!)( t*at is( i,'"e,entation $as as ,&c* a 'art o a strate!) as or,&"ation23it*in *is conce't&a"i>ation o strate!) *e a""o$e+ or t*e constant t&! o $ar

#et$een ,ana!ers as a 'rocess in $*ic* ,an) +ecision ,a%ers $it* con "ictin! !oa"s #ar!ain a,on! t*e,se"0es to 'ro+&ce a strea, o incre,enta"( +is;ointe+ +ecisions4Mint>#er! / 52 An) one +ecision ana")>e+ on its o$n ,a) see, insi!ni icant or

inconsees*are+ 0a"&es as t*e #asis or s&c* +ecisions2 In s&c* an en0iron,ent an e"a#orate an+ri!i+ HR arc*itect&re $o&"+ #e 0ie$e+ as o#so"ete an+ &nnecessar)2

?ec%er an+ H&se"i+ 4@.. 5( $*i"e +isc&ssin! 8$*ere +o $e !o ro, *ere: in researc*on t*e HRM 'er or,ance "in%( s'ec&"ate t*at t*ere is a ro#&st HR1 ir, 'er or,ancee ect #eca&se t*ere is $i+e 0ariation in *o$ ir,s ,ana!e 8e0en t*e HR #asics: 4'2

.B52 T*e) &rt*er s&!!est t*at t*e 0ariance ,a) #e +&e to 8"ac% o %no$"e+!e( "ac% o ,ana!eria" co,'etence( or an ina#i"it) to e6ec&te 4or ,ore "i%e") so,e co,#ination5:4'2 .B52 T*is s&!!estion( co&'"e+ $it* t*e criticis, o t*e HR &nction ro, La$"eran+ Ha,,on+s 4a#o0e5( 'oints to t*e nee+ or ,ore ine !raine+ an+ conte6t&a"researc* $*ic* 'ro0i+es so,e ,eas&re o t*e a#i"it) o HR 'ro essiona"s to +o t*e

'rescri'ti0e $or% o a &"" #&siness 'artner2

La$"er [email protected] /5 s&!!ests t*at e$ HR or!ani>ations *a0e reac*e+ t*e +esire+stat&s o t*e ro"e #eca&se o t*e $a) t*at t*e) are or!ani>e+2 Ha,,on+s an+ ot*ers,aintain t*at it is t*e 'eo'"e 4Ha,,on+s( @..B52 ?&t $*i"e t*is +e#ate( str&ct&re0ers&s 'eo'"e !ets starte+( $e s&!!est t*at neit*er 'osition is "i%e") to #e &ni0ersa"")s&''orte+2 A !reat 'erson in a #a+ str&ct&re is 'ro#a#") as #a+ as #a+ 'eo'"e in a !reatstr&ct&re2 T*e %e)( $e s&!!est( is to "oo% at t*e tota" HR s)ste,( in t*e conte6t o t*etota" #&siness s)ste,2 Un ort&nate")( 0er) "itt"e in t*e e6istin! researc* a''roac*esHRM at t*is "e0e"2

T*&s( in t*e o0era"" conte6t o HR &nctiona" e6ce""ence( it is *e"' &" to connect t*e

+ots2 Practices #) t*e,se"0es( as note+ #) La+o an+ 3i"son 4 5( can #ot* createan+ +estro) 0a"&e2 Peo'"e #) t*e,se"0es 4t*e HR &nction5 can 'ro#a#") #e seen to


15/16

*a0e t*e sa,e 'otentia" i,'act2 Ho$ t*en( +o 'ractices an+ 'eo'"e a++ &' to stron!(0a"&e a++e+ HRM7 T*e ans$er ,a) #e o&n+ in "oo%in! #e)on+ 'ractices an+ 'eo'"eto t*e 'rinci'"es o t*e or!ani>ation an+ t*e 'rocesses t*ro&!* $*ic* HRM is enacte+2O&r ar!&,ent is t*at $*en t*e HR &nction *as t*e ri!*t *&,an ca'ita" in!re+ients(an+ it is #roa+") seen as a "e!iti,ate a&t*orit) $it*in t*e or!ani>ation( an+ t*e "ine

,ana!e,ent %no$s t*e 0a"&e t*at !oo+ HRM can +e"i0er 4an+ +e,an+s res&"ts5( t*econ+itions are ri!*t or HR to create an+ ,aintain t*e stron! sit&ations nee+e+ toe ect #&siness res&"ts2

$H' HR F&)C$#() A)* S$R()+ HR S S$'!S /P&$$#)+ #$ A,, $(+'$H'R

T*e e+ 'rocess7 T*e act is( t*e) can not2 Hi!*")ca'a#"e 'ractitioners( tra''e+ in or!ani>ations t*at +o not 'ro'er") #&i"+ HR9s"e!iti,ac)( o ten ta"% a#o&t 8'&s*in! on a ro'e(: t*e r&stratin! e6ercise o tr)in! to!et t*e "ea+ers*i' 4not t*e e,'"o)ee 'o'&"ation 5 to 'a) attention to critica" *&,anca'ita" +i,ensions2 De,an+in! "ine ,ana!ers( sa++"e+ $it* HR 'ractitioners +ra$n

ro, t*e a+,inistrati0e *erita!e o t*e &nction( are r&strate+ as $e""2 On") $*enca'a#"e 'ractitioners an+ +e,an+in! "ine ,ana!ers are 'aire+ can $e e6'ect HRM to*a0e ,a6i,&, i,'act on ir, 'er or,ance2

T*ere are( t*ere ore( se0era" i,'ortant 'ieces to #&i"+in! an+ ,aintainin! an HRMs)ste, t*at creates t*e c"ear si!na"s en0isione+ #) ?o$en an+ Ostro ( an+ 'ro0i+es

or t*e *i!*er "e0e" sense ,a%in! 4'atterns in a strea, o +ecisions5 +isc&sse+ #)Co"#ert2 At t*e "oor is to sta HR $it* on") t*e *i!*est ca"i#er ta"entt*einte""ect&a" an+ "ea+ers*i' eation ina $a) t*at is seen as "e!iti,ate2 HR cannot #e e6'ecte+ to 8'&s*9 its a!en+a ,ana!ers

,&st +e,an+ t*at HR not on") #e $or"+ c"ass( #&t t*at it 'ro+&ce consistent $or"+c"ass o&tco,es ,eas&ra#"e in t*e #&siness res&"ts2 Lea+ers at a"" "e0e"s in t*e


16/16

or!ani>ation nee+ to +e,an+ ,ore ro, t*eir HR 'artners( an+ ne0er #e co,'"acent$it* t*e si,'"e enact,ent o 'o'&"ar #est 'ractices2 HR s*o&"+ #e ,eas&re+ on t*e

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15.Haggerty, John J., And Patrick M. Wright. Strong Situations and Firm Performance a Proposed...

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Transcript of 15.Haggerty, John J., And Patrick M. Wright. Strong Situations and Firm Performance a Proposed...