5 Managing resources human resource management Ayse SakaHelmhout

5. Managing resources: human resource management Ayse Saka-Helmhout

Learning objectives • understand differences in human resource management practices between countries • provide a societal explanation for the diversity in human resource practices between countries • reflect on the differences in human resource systems between advanced and newly developed nations • analyse the impact of elements of comparative human resource management on firm structure • analyse the effects of international competition and globalization on human resource management systems

Chapter Outline 5. 1 Introduction 5. 2 Work structure Work classification, design and coordination Functional specialization Organizational hierarchy and spans of control 5. 3 Employment relations Recruitment and selection methods External recruitment versus promotion Dismissal procedures 5. 4 Compensation and benefits Pay systems, collective bargaining and co-determination Performance-related pay 5. 5 Conclusions Study questions Further reading Case: Human resource management among Korean affiliates in the Dutch consumer industry Notes References

Table 5. 1 Work relationships

Table 5. 2 Work relationships: management

Figure 5. 1 A basic organizational configuration. Source: Maurice et al. (1980: 67)

Figure 5. 2 National organizational configurations Source: Lane (1989: 47)

Table 5. 3 Employment relationships

Study questions 1. 2. 3. 4. 5. 6. 7. What are the differences between Anglo-American and German work relationships? Explain these differences on the basis of the institutional approach. Explain the differences in employment relationships between the Anglo-American and German models. Use institutional theory in your explanation. Discuss the working of hybrid human resource models. What have been the major changes in the Japanese human resource system? Explain the pressures that have induced these changes. We have studied the human resource management models of the USA, the UK, Sweden, Germany, Japan and the Netherlands. Explain on the basis of institutional theory in which of these countries pay for performance is generally used and in which of them it is not well accepted. Differentiate between workers and different levels of management. Examine whether, under pressure from globalization, human resource systems will converge towards one ‘best’ model. Explain, in general, which elements of the societal environment and which human resource management practices are interdependent with firms’ organization structure. Apply your argument to structure in Germany and the USA.