understanding human

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A. 9966y 99 by All

UNDERSTNG HUMAN

OURC MANAGNTI TH

ONTEXT OF ORGTIONAND TIR ENVOENTS

Susa Jackso

Department of Psychology, New York Unversity, 6 Washngton Place, New York N0

adall S. Sculer

Deparment o Management New York Unversty W. 4th Street New York N00

Y WD inin nn, gi, iignin

CONTENTSTRDUCT

The Need jor Understanding Hwnan Resource Management (HRM) in Cntext ... 2heretical Perspectives Relevant to nderstandng HRM in ntet .... 2

EVEW EMC EERC ............ 4HR and the Inteal ontets f Organizatin ........... . . . . . . . . . . . . . . . . . . . 4HR an the Eternal Cntets j Oganiatin ..................... 2

TEGRTVE ERECTVE F REERCH RM CTEXT . . . . . . . . . . . . . . 3he-Dien Reseah.................................... 2ethlial ssues.... ..... ............ 26

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238 JACKSON & SCER

TRODUTO

e Needfo Udestad uma esoue Maamet(M) Cotext

Apped psychologiss have developd sophiscated oos nd thniques in ended o improve he effeciveness of orgnizaions and subsnal evidenceaesng o he value o hese accued (e.g enson 199; Hansen &Weerel 1989 Kaufm 992 MacDffie & Krck1992 Macy & zmi1993; Terpsa& Roe 993; Unid Saes epmen of Labor 1993 MAHuselid, unpubished R Schnell, n J, KG Smith, HP Sims Jr, JAScuy, Sith, unpubshed) Neveheless, US employes have ben slowo adop he "bes pracices ie hose widely discussed n organizaions asbeing he mos effecive Brez e 199, Rynes & Boudeau 198, Sai e al988) Commenaors have sugges ha he aonxua nar of h sienic evidence is pr of he pobem eg Johns 1993, Murray & imck 978)conseueny cas for new human esource managemen H reseach hates onex moe seousy have beome moe freuen eg Bein 991ons e l 1 es e l 2 ah 9 te same me agrowing body of empicl evidence is begiing o sh gh on he reion ship bewen conextal condions nd H. u objectie o his eview iso w emegng feld

e use HR as an umbela em a encompasses specfc humanesouce paices such as ruimen, slecion, and appraisl; b formahumn resouce pocies, whch de nd py consan he developmenof specfic pacces and (c) oveching humn esouce phlosophies, whichspecy he values a nom an oranzaon' poces nd pacces Idely,hese comprise a sysem a aacs deveops, motvates and eans eloy s who nse e eve nong suvva o e oaon ants mem. o undesnd n cone e must onse how hese hrcomponens of HRM are affced by he ineal and eeal envronmens o

oganzations he nel coneua facos we dscuss e echnology, uc ure size orgazaional ife cycle sage and busness saegy e eaoganizaion ule as inexcably bound o R ad herefore no meaningful if sepad om i The eeal conexl facors ae lega, soci, andpocal envionments unonizaion labo mke condions indusy chaac eisics nd naonl culues

eoetal Pespeves eleva to Udesad M otext

heoetca pespeves ased n socology economcs, managemen andpsychology fous on dffeen aspec of he domain of HRM in ConexWgh & cMh 99. We egn by offeng ef suies of he

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perspectives that have guided most of te empiical stdies eviewed in thischapte and tat we eel ae most lkely t dve fute eseach

GENERA SYSTEMS THEORY geneal systems theoy, the unt of aalysis is

undestood as a complex of intedependent ps (von Betalafy 1950. Anopen (vs cosed) system is dependent on the envoment o inpus wch etansfomed during thoughput to poduce outputs that are exchanged in heenvironment Open systems models sedom addess organizations or arge unitswihn oganizations. Katz & Kns (1978 The Social Psychology of Organi zations is n excepon in hat it teats HR as a subsstem embedded in a lageorganizationl system. Te open systems view of HRM has been developedurthe by Wight & Snell (99, who used it to descibe a competence

management model of orgnizations. Sils and abilities ae teated as inputsom te envonment; emploee beavos ae eated as ouput andemployee sasfaction and peomance e eated as ouus. In this mode eHRM subsstem functions to acquire utilize etain and displace competencies.Siily Sne's (2 desciption of RM as a control system is based inopen sstems theo n a moe now dscussion Kozlowski & Salas (994pesened a multeve ogaizatona systms appoac fo undestnding n ing implementaon and tanse. Many f e moe speciic eoes used toundead RM in Context assume that ogniations nction like open

sstes (see below).

ROE EHAIOR ERSECTIE Katz & Kahn (198 focused on oles as eintedependent components that make up an oganzation system Instead ousing speciic behavios andjob peormances as e ndamental componentsthis pespetve sts he focus fm individuals to social sstems chaactezedb mutple oles muliple oe sendes and mulple oe evuatos. az &

Kahn dened oe behavios as "he ecung acions of a indivdu appopiately inteelated with the epettve activities o othes so s to yield apredictabe outcome. is the organzations prmy means fo sendingoe inoation though the oganzation suppoing desied behavios andevuating role pefomances it is eective heefoe when it comunicatesintealy consistent expectaions and evauates pefomances in ways at econgent wi the systems behavioa equirements (e.g. see Fedeicson986. System quirements ae in t pesumed to depend on contxtualfactors such as business strateges and the natue of the idus Role theoyeognzes at te beavioa expectations o a ole pes can nuence hebeavo o ogazaona membes. B implcaton eecve elpsemployees meet he expectaons o oe panes wihin te orgaization (i.e.supervisos pers subodinates) at oganization boundies (i.e. customes

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the dtbution of powe within a ytem o example, peonnel depaentacqui owe ove othe deament to te extent they make othe dependentupon them by contolling the ow of human eouce into an though heoganzation (Oteman 18, 12 Pfeffe& Cohen 18) Thu thi theoetcal pepective i omewhat imla to n inteaconit pepective wthin

pychology in that the acto (an oganzation o unit) and the envionment wokin conjuncon a exlanaon fo the behavio of the acto

Inutional heoy and eouce depenence theoy wee develoed in hecontext of undetanding lage public bueaucacie, whee ecency may notbe among the mot impotant goal (ee off& Schmitt 1 n conat,the theoie we dicu nexthuman capital theoy tanaction cot theoyagency theoy, and eoucebaed theoywee developed in the context ofundeandng bune enteie, fo ch ue of efficiency ae pe

umed to be cenal

UMA CAPITAL TEORY In the economc lteatue, human capital efe tothe poductive capabilite of people (Beke 1). Skill, expeience, andknowledge have economic vaue to oganizaon becaue ey enable it to bepouctve an aaptable thu eople contitute te oganzation' humacapital e othe aet, human capital ha value in the maket place, but unlkeothe aet, he potenal value of human cpital can be fully ealie only with

the coopeation of e peon. Theefoe, al cot elate to ecitig pouctvebehavio om employeeincludng thoe elated to movang moitog,an etaning themcontitute human capital invetment mae n ancipaono utue et laot & Lacey 181

Oganzaon can ue in a vaety of way to inceae thei humacaital (acio 11, Floltz & acey 81) o example, they can "buyhuman capital in the maket (e.g by offeng deiable comeation package) o me it intenally (eg by offeng extenive ning n evelopment opoue) Inveent of eite type have aociated cot, which

ae jutable only to the extent the oganiation able to oductively ulzethe accumulated capital (Tang et a11) human capital theoy, contextuafacto uch a maket contion, union, bune atege, an technologyae impotant becaue tey can affect th cot aociate with alteatveapoache to uing HRM to inceae the value of the oganizaton' humancaital and the value of the anticipated e, uch a poductivity gain (egee Boueau & Bege 185, Ruell et al3)

RACIO CO EOR Tanacto cot economic aume that bune entee chooe goveance uctue that economize taaction cotaociated wth etablihg, montoing, evluatg, and enfocg ageed uponexchange (Wiliamon 17 181) Peiction about the natue of the gov

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eance sucure an enerprise wi use incorporae wo behavioral assumpons:ounded raioniy and oppousm (i.e he seekng of self-eres wi guile).These assumpions mean ha he cenr problem o be solved by organzaionsis how o design goveance sucres ha e advanage of bounded raionay whe safegurdng agans oorunsm To solve this rolem, mpici

and explici concs ae esabished moniored, enforced and revised heheory has direc impcaions for undersdng how pracices usedo achieve a goveance sucure for managig he myad imlici ad exiciconacs beween emloyers and emloyees (Wrigh & McMahan 99) Forexmple, organizaions ha reque fimspecific nowledge and sils eprediced o creae nea abor mkes ha bnd selfineresed and boundedlyraionl empoyees o he organizaion whie organizaions ha do no requretese skls can gain eiciencies by ompeing for sefineresed and boundedly

raional len in an exeal labor marke (iamson 1981 991) Conexualfacors in paly deermne wheher he ypes and amouns of sls andknowedge a needs e ikey o be avaiable in e exea aor marke,he coss of acuing hem om e exeal marke e organizaon's caabiiy for develoing hem ealy, ad the costs of og so

GEC THEOR Agency heor focuses aenion on he conracs eweena pary (ie he rincpa) who delegaes work o anoher (e he gen)

(Jensen & Mecklng 196) Agency reaions are probemaic o he degree ha(a) he rincil and agen have conicing goals ad b i is difcul orexensive for he rncial o monior he agen's eformce (Eisenhad1989) Conacs are used o goe such reaons Efficien conacs aign hegoas of principals nd agens a he owes possibe cos Coss can arse omroviding incenves and oaining infomaion (eg abou he agen's ehaviora/or e agen's pefoace oucomes) gec e appes o be pacular usefu fo undesanding execuive and manaeal ompeaioracices which e viewed as a means for aligning he ineress of e owners

of a (.e ppals) wh he mnaer in whom hey ves cono (ieagens) or exame agency heoy suggess several condiions under whichconacts are more kely o monior behavio (eg salayplus-meri ay sysems) and/or oucomes (eg comssions) (see Conlon & Parks 199; Eisenhd 1988 989 ikoich e a 1991 osi & Gomez-Meja1989) Agencyheory so has been used o predic occupaonbased differences in jo prcingmehods (i.e ob evauaion vs marke pricing) and in ay vriabily (Newma& Huselid 99)

Aen nd raao oss heore hae man lar aumpoabou human ehavior (Eisenhard 989) and may be mos usefu when comined or example using ese wo heories Jones & righ (199) offer aninsighu inerreaion of e HRM lieraure focusing on imicaons of he

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RM OXT 43

econoc perspecve for HRM utlty estmates. er dscussion suggestsvaous reasons for prectng that the utlty of HRM actvtes wl vay wthcondons n boh he nel d ex enoens o orgzaonsSuch condtons nclude the oer huma esouce practces that ae used ythe organaton, govement regulatons and ther enforcement tecnooges

unon actvtes and aor market conons hese contetal factors canaffect oth the costs an potental gans assocate wth a partcua humanesouce practce (eg a recrtment pgm a selecton test or a tranngprogram)

RESURCESE HER The resoure-ase theory of the frm ensconcepts fom oganatonal econocs a stategc management (Baey Conner A fundamenal assmpton of s vew s tat organatons can be successl f they gn and mantan comettve advantage (seePorte 1985). ompetve avantage s gane y mplementng a vauecreatng straegy that compettors cnnot eas copy and sustn (Bey 1991) anfor whch there ae no reay sustutes Fr compee advntae to be gantwo condtons are needed: Frst the resources avalable to competn rmsmust be varale among competors, a secon these resources must bemole (e not easy obtane) hr types of resources assocated wthogaatons are physca (plant; technology and equpment geograpc

locaton) b human (empoyees' eperence an kowlege) and c) oranaton (stctre systems for plang montorng and conolng actvtessocl relaons wthn the organaton an etween the orgaaton aneteal consttuences) HRM greatly uences n organatons humn andorgaatonal resources an so can be sed to gan compeve avantage(chuler & MacMlan 194) resumably, he extent o hh beuse to g compettve avantage, an the means of ong so are partyetened by the envronments n whc organatons operate (Wrght et al4 or eampe, n some ndustres, tcnologes ca susttue for humnresources whereas n others the human elment s funamenal to the busnesso usate, contrast labortense an kowegentense nustres elatter conte may e more conucve to the use of HRM as a means to gancompettve advantage

CNCSIN Ths ef an selectve oerew of theoretcl perspectves sntended to factate the readers undersndng an nterpretaton of some of

the empca reseach we revew elow In aton we beleve tese perspeces an o nw reseh on n onex Althogh many of heneal and eteal facos consee beow re key o be eated fewstues cono for al possle nterdepenences; smlary, we eat the conte

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tua factors as if hey are independet while recgnizing tha his apprach isverly smplisic.

REVW OF EMIRICAL RESEARCH

RM ad t Ital otxts of Orazatos

HNOOG Tecnlgy refers a sysem's prcesses fr ransfrgiputs in usable uu These prcesses can vary ag any diesins,including he degree f cnnuiy i he prdutin syste (eg Wdwad1965), e types and levels f knledge requred by te sysem (Hun &Rznwski 98), e degree wi asks ae ruinized ad predcablePerrw 7) ad e kages ad edepedeces amg asks ad eple

(Tpsn 97). The ipact f echngy the scial dynaics withnrganzais hs lng been recgized, but ny recently ave US reserchersbegu t address sysemaically e implicains f ecnlgy fr HRM(Kazell 994).

Fwg ssems er view f e relaishp between hun nd technical subsyses, Sell & De (1992) hypthesized ha HRM wuld direy nfluenced by he presence f advcedmanufacuring technlgy (AMT) al uaiy managee (TQM), adjus

in-me nvenry cnl (J). sng da rm mufacrng firms,ey fud a ms usig radii eclge were less lkely a rmsusg AMT engage in selective hring, cprehensive raning, develpenal appraisa, and exteally equiabe cmpensain (see Clak 993 r asiia cnclusin). Jacksn e al (989) used the rle behavir perspecie tpredic ad expli why, cped rs engaged i mass prducin, rmsusi echnlies fr flexible seiaizatn were re likely use perrmance appaisals in deerinig pay and taining needs. Kzlwski & Huls(17) did n direcly vke rles as explary csrcs her sdy f

eees, bu he assciai tey ud beween an rganzatins technicacpexiy and HM indicaive f a "climae fr ecnical updang ls ecnsisen wi he re beavir perpecive. I appears aresec iredby bth re hery ad huan capitl tery culd iprve ur uderstadigf hw tehnly shapes HRM as wel the e f i ipleegnew techgy (e.g. see Zamu & OCnnr 99).

STRUCTU rganizatin sucture descibes e allcain f sks ad re

spnsibies ang individuals and depaens; i designaes he aure andmeans f frmal reprg relaisps as wel as he grupngs individuaswn e rgzan Cild 77 Te srcurl frms geerly regzedf dmesic fims include funcin depreazai, prducbaed divi

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COXT 45

sonalzaton georaphca dvsonazaton, ad matrx orgazaton ( wth dualreportn relaonshps Dfferent fors re presued to result ro nd beassocaed wth a vrety of nteal and exteal forces, ncludn technolocaldemands, orgazatonal gow, envoenl trbulence, and busness strat ey ( e see adolph & Dess 1984. Futherore, each scual fom

pobably faces some unque chaenes tat have mpcatons for HR orexample, Jackson et a 1989 rgued hat dvsonalzed should be morelkely than those structred around nctonal deprtens to emphasze resultsover process reectng eater ntegaton across unts and a moe exteallyoented focus Consstent wth hs expectaton, they foud that dvsonalzedfrs reled reltvely more on stoc owershp ad bonuses for copywdperforance as components of ther HR systems

Vn Slujs et al 1991 agued that has been shaped by s evoluon

wthn he context of nctonaly depentalzed orgazatons Congrent oa depaentazaon, te adtona approac to nan people foses on selecton, tranng perforance apprasal and compensaonfor ndduls n spefc jobs versus, for exaple, tem players eployed amebers of an oranzaon ( cf Bowen e l 1991. t also presumes herarches of cono ather than hozonal woow seuences cf Whyte 1991A realzaon s eern, however, that when oranzaons e esctedaround eamwor place of ndvdual perfomers here are ajor consequences for HR or example, Klmos & Jones (1994 suggest that orgnzatons wth teabased desns may need to use ne ehods of ob analyss,assessment, ecrutment, and soclzaon actvtes acson et 1994 argud that eater relance on teams has ben a mportant factor n eneranore conce about e HR pcatons of ororce dversty

The pat of sucte on s pcully evdent n dcussons omultnaonal frms and nternatonal ont ventures Structures for organzatons that span across natonal borders nclude multnatonal, lobalnernaon, o snaona os Pa 992 Gosh & ett 990

These fors represent alteatve solutons to the probles of dfferentaton, ntegato, uceanty, ad s naement n a nteaonl env ronment SJ Kobn, unpublshed, and eah fom has unue mplcaons forH owl et a1994, ocha et aI 1992. The fundamenl chalenge show to use H to ln globally dspersd uts whle aso adaptn to thesocetal requreents of host socetes ( arent 1986 Smlar problems ustbe solved when frms om dfferent counes collaborate n a ont venre( e.g. Schuler et al 1991, 99 Schuler & van Slus 99 Slocum & Le1993 .

I nsttutoa theoy sugests that lger orgazaons should adopt moresophstcated and soclly responsve HR actvtes because these ore vsble

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ogaizations ae une moe esse to gain legitimacy Eonomc theoiessggest at because of the coss associate with may asects of HRMacceable economies of scale must e eache befoe sohisticate systems can be imlemene. Consstent wih both esectives, consieableevience shows that vies systematically with ogaization size. Secficay comae to smalle ogations, lage ones ae moe lkely to (aaot e rocess oceues ( Dobbin et al I988) b aot emloye involvement acces ( Lawle et a 992); ely less on temoay sta ( Davis Blake& Uzz 1993); (d se moe sohisticate stafg (Testa& Rozell 993) antaing a eveloment (Saai et al 1988) oceues, an have moe hghlyeveloe inte labo maket (on et al986a see also Fes et aI992)e) ay the emloyees moe ( Melow 1982) but also ut moe ay at iskog he use of bonses an longtem incentves (ehat & Milkovich

1990); a engage in g testing (Guthe & Olian 991a)

E CYCE STAGES he liteatue on ogization lfe cycle stages ectsatention to the caing manageril riorities hat chaacterze oganiationsin various deelopmetal sas such sr-p, ow matt an ehasecline a evivl ( Bai & Meshoul 988 Smith et 985) hesechangng ioes in t have imlictons fo HRM. Fo emle a esc tion of how maageal oles chge coss hases of the oganizaon life

cycle was use by Gestein & Resma (983) to ague that selection cteaan assessment methos fo to leve eectives nee to be match to life cyclestages Smlaly Data&uthe 994) suggeste that the ole euemensof CEs in aily gowg fms hel elain why outsie CEOs ae moelkely to he ug this hase es et al (984) also use a ole esctiveto evelo oositions eging te stafg nees an thei imlicaos uneconitions of eclne. eseac a theo elaing life cycle sages to changes maagral rquremts sums tt meil oles change aoss lfecce , b vdy f b bd

emicay fo eamle though he use of systematic job anayses (Szilagyi& Schweige 1984)

n the stuies st escibe the eseach uestions aess the tyesof emloyees who best match th nees of oganiations in vaious lfe cyclestages. Othe stues ave aesse the ssue of how much attenton secte towa stafng ssues an hee economic aguments seem moeelevant. Fo emle ulle & Ne (1993) foun that CEOs an hmanesoce eectives in aily growing fims viewe ecuitment an selec

InRM r esearch, number of employs is the ost comonly used sze ncator ut fnancalcatrs such as the dllr value caal sset d/r the dllar vaue sales as ar rertes

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HRM COXT 247

in as by far e ms impran aspe f HRM wereas in maure msee was me nen f a brad aay f aiiies, sh as se elaed manaining an ineal labr marke see als Ker & Sae 198). Enmi eplanains als ave been used predi and eplan assians beween fe ye sages and pay levels (see Gerar & Mkv

1992)T dae, mpiial rese n HM ad rgaizaina life yles

adped a deeisi view, prediin a life yle sage nsains andsapes HRM. Bu mre mple nngeny mdels as ave been ppsed. In ese mdels e assumpin s a HRM rees ies made byrganizina deisin makers wise ies lead a gd eween lifeyle sage and HRM, wi esul, in u, in rganizaina eeieness(e.g. Ck & Feris 1986, engnik-Ha & Lengnik-Hal 1988, Milliman e

al 1991, Klwski e a 199). Te aidiy f su mdels as n beenassessed empray, wever.

BSNESS STRATEGY Typlgies f aaeizing te business sraegessed by rms abund, bu e w ms fqenly ied in disussins f HMwere prpsed by Miles & Snw (198) and Per (19801985). Miles & Snwlassifed rganizans as prspers, aayzers, r defender (laer, rearswere added). Prspers aiel y seek new prdus and markes and, erefre,

seek gw anyrs als seek gw, bu n a mre sable d prediableway ug e ineal deelpmen f new pdus rae ta reain fnew markes defenders seek mainain e same limied prdu ne wempasis n ig lume and lw s (Miles & Snw 1984). ese suresward e envirnen sud ave mpans fr e quany and pae fm esue ws. Defendes, f insne, ae less need abu eiing new applian eeally and mre need abu deelping uenemplyees. erefre, pemane appaisal is used mre fr develpmenalpuses a fr eauain (Snw & Snell 199). In nsras, prspers aegrwing and s ae mre need abu reuiing and using pefaneappaial esuls fr evaluain aer a f lnger-em deelpmen (Olian& Rynes 1984, see as Slum e a98).

Pers (1985) mpeiie saegies disinguis amng fims a mpee n e bais f s leadersip, prdu dfferenain, nd make fusIn a sudy f airlines, Jnsn e a (1989) swed a in a dereguladenvnmen wage aes wee laed signifiany wih f ese saegiesairines pursued. In an adapan f Pers typlgy, Suler & aksn

(198a) used e rle beavir perspeive desibe e pssible HRMpans f sedu, nvain, and quay enanemen saegies.Jaksn e al (989) supped Suler & Jasns agumen a beause ninnain saegy requies skng nd lerane f ineiable files,

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HRM in fms pursuing this strategy hould be used to give employees a snseof security and encourage a long-te oientation. Peck 994) nd Milkoichet (199) also support a relationship between a innovation sategy and euse of H to suppot a longeter oientation Consistent wih pedictionsregading behavios needed fo a qaiy saegy is owhed Leve's

(199) fndng that egaitian pay sctures are associated with greater product ualty

This brief eview of e sategic M liteaue is by no means exhaustiveeg see engnickHall engnckalI988) d does not flly conside tepossible complexy of and ateatie models fo descibing he elationshipbetween stategy and HRM eg see Kerr 985 Snow Snel 993), but thestudies clealy suppo the assetion that sategy is a contextal facto withmpoan mpcaons fo us we ae espcially opmstic about

eent effots to establsh lnkages between sategic consideations and psychologically oiented HRM research on selection and utity see Russell et al993)

HRM ad te Exteal otexts o rgaatos

LGAL, CAL AND LTCAL EVRET Within the United Sttesalmostlaspects of HRM ae aeed by the leal and egulato envionent.n e pocess of atendng to te le nvonent e fiel also espnds tothe sial and political envionment at give rise to and shape the pomulgation ineretaon ad enfocement of acts of ongress executive odes codes and even funding fo HR inovations see ascio 992 ny t al994 Maoney 97 Me& Oey 199 Noe & Fo 99 a 994o Sakett 1993). As US ooato exa te oeatos aboahoweve they face additonal legal conces o example in Euopean coun

tes oganzations ae oblied to set aside speific sums of money for fomaltranng and development Brewster et al 993) And for cororations thatemploy expaaes aboad immigation and taxation eaes can inluencestafg decisions Dowlng et al . Global copoations also encounteadditional social and potcal eaes o example in some countes civillaws nd eligious laws coexist and jointly define a legal context for (okowski ath 993). ookin ahead institutiona teor and resourcedependence theoy appea to be pacully useful guides fo eseach on how

the legal social and politica envionments impact HR see Konrad innehan 992 Potentia topics fo investgaon include the conditions andpesses that faciitate or inhibit the adopon and asfer of HRM innovationseg see Johns 993) ad the feedback processes rough which the

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actvie of organation create change n their ocial, legal, and politicalenvonent

UNONZON n e Unted State, unionied empoyee have recei ved wageeated to be up to 33% greater than thoe of nonunion eployee, and unionare often credited with ipoving workng condition and afety (Lawler &Moh 19) on give voice to teir member; etablih policie andprocedre for handlng wage and working condition grievnce provide forjob ecuity and ecure heal and retieent benet (Baon et a 198bFreen & Medo 198, Jackon et a1 189, Kochan et a992, Youngbloodet al 1992) n addition to helping their own eber, union have pobabymotivated nonunion employer to provide may of thee me beneft oulke

198) Neverthele, recent yer have wieed a decline in unioniation dueto the envomental force of deregulation, inteationa compeon, ad tehi to a ervice economy Conequenty, ome union have moved out of theitradional colective bargaining role and adverarial relaonhp with aagement and are begnnng to work cooperatvely on iue uch a plant deignand location (Adler 1993, Lewandowk & MacKinnon 1992, oble 199,Woodff 1993) work tea deign (Lawler & Mohman 1987) teaorientedpay pln uch a gain harng and employee ownerhip (Miller & Schuter 198,Roen et al 1986); recitment and elecon procede including electngmember for repreentation on the bod of dector (Collin et al 1993);retraing and relocaon (Hoerr 1991, Marhal 1992); and quaty improvement(Bognano & leiner 199 rett et 1 190, Lawler et 199 ei 99Changing unionmanagement relation ea that reercher cn no longrimply compe union to nonunion fim ow they mut alo tke into conideration whether unionmaagement relatin with each frm ae adveria orcoopertive (eg ee Cutcher-Gerhefeld 1991).

A the proce of gobaing unfold, oth union and multinaon enter

prie (MN) are recogniing that tey need to undertand how the intitution of uion-management relation and collective bgaining dffer aroundthe wod (Dowling et al994) Pralad & Doz (1987) found that lack of ucundertanding often reut in confct between MNE manager and localcommunite o facitate adaptation to loca conditon, it help US MN toknow, for example, that in Europe the colective brgaing proce and clatggle ae more intetwned than they ae in the United State (Bouoi &Chauchat 199; Mrgon 1992; Poole 198a,b), ad labor intttion are

often uch tronger (for-anwa 199, Wetern 199 MN mut conider thee hitoe and intituon when developing copany-wide humareource philoophie, policie, and pctie (aill 1983) HRM reecheon mt every topic lo mut recogni, undertnd, d incorporate thee

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relities into their work (Kochan et l 992) if it is to be useful for orgaza tins operang n a goba context

BR MRT CNDTN Labo market condions ca be chaactezed

aong several ensions including neployent levels labo divesity,. andlabor arket sucure Uneployent levels and labor aket strces avelong been recognzed as iporan macroeconomic vaables whereas empotance of labo dvesty has ben ecognized ore ecently

Uneployent levels eect the deand fo labo elative to the supplMacroeconomc reseach conducte at the national level indcates that in thecapitalst nited States excess dend typiclly results low uneploentwle excess supply picaly esults in hgh uneployent Fuheore s

ueploent dops wages and costs ncese d pots d nvetentsdclie; ese condions i t duce deand fo labo (evne & Tyson1990) Conversely unemployen rses absentees nd tuove ratestend to derease (Kerr 94 Mkha 98) and the link between employeessatsacton and tuove is weaned (sten & pector 987)

Pehaps because ecrutent acves eate orazaoa p rctent reseaches have een moe sensitive than othes to the ptentalportance of uneployment level (Rynes 99 Rynes & Barber 990)Csstent wh tasaction costs theoy recient strategies appea to vay

wth uneployent levels When the abo suppl s tght orgaizaons useoe expensve and intensve ectg eos (Hssens & even 983)increase the geographc scope of ther recuitent activties (MaI 95 anappea to forego preeployent dg sceenig (Bennett et l 994) Otheresponses to a gh labor suppl include povig wages benes andwokng conditions in order to attact and etain eployees (Lkhan 988)ad reducing hrng standrds as a eans to ll vacnt posions urow9) Such responses to the abor poo ay have po o

oe hu esouce pacces (eg lowe selection stndards ay me thatore tag is needed) Thus the consequences o the exteal envnmentay ulmately include fundaental chages in the natue of the emploentreatonship (eg see evine & Tyson 990)

e US labor rket s evolvng toward greater versi n ters ofgender age and ethnicit (Johnston & Packer 98 see also Tianis et al994b) althouh demographc divesty ves arkedly among occupationsad across status levels e implcations of ncreasng dvesit have beenostly ignoed by HR eseaches as have e iplications of ering

degrees of hoogeneity acoss segments of te labo ket Katze l994Tanis et al 994b) Ts s somewhat surpsng gven the fel's onghistoy o eseach on bas a discriiaton and substaa evidence show ing tat gs coions eavos e eed onons o

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H COXT 251

group homogeneity vs diversiy (see Cx 993, Jacson e al 994) Theseeffets undoubedly have consequences for recruitmen, selection, and atiton(see Jackson et 99, Pfeer 98, Schneider 987); socializaion (Jackone alI993) anng, deveopment, and menoring (Moson 992, Ohlo e al994, Powell & Butereld 994, Thomas 993) and perhaps assessmen and

rewd systems (Peer& Langon 988) To dae however he HRM mplcaons of increasing divesty have received relatively more aenon omlge businesses than from academic reserchers age busnesses re experimening wh a vey o HRM neeons n order o adjus sysems aevolved in te context of relave homogeneiy to the new condiions ofrelave dversty (eg see Jacon & Asocates 99, Moson & Crabtre

992, Moson e a993, Zedeck 992)

The above dscussion regarding ho unemployment levels can mpact

HRM implcily assumes a labor mare suce a is undferenated Bustraiaion o the exeal laor mre as we as he ne aor meong he soewha laed densons of price and saus is acknowledgedwdely meods of recruiment, foms f compensaon, severance arrangements, employee autonomy, and numerous oher ascs o are knownto der as one moves up trough price ad stas levels (eg Gure & Olan99a Osean 984, Rynes 99 culer & Jackson 98b) usantialevdence suggess ha HRM systems der across occupaiona groups, reecng occupation subcultures ha v in heir oienaon owad work,conol, and authoy scres, self-idencaion, and creer expecations(Alhauser 989, Bridges & Vileme 99, onnensuhl & Tce 99, VMaanen & Bley 984) Thus, even if rs have a sngle HRM philosophyand a sngle se o HRM policies, these are ley o manies temselves ndferen practices acoss subgoups of eployees By extnson he "sameHRM ntervenon should be expeced o be derenally inerpreted andreeved across ese sugroups

USRY ARERSTIS The term ndusy reers o a disnc goup oproducve or protmaing eneprises A u discussion o how HRM saffeced by indusy-level facors would cnsider in he public vs privaesctors (Rosen e a986, Moln & Roges 976), in regulaed vs unegulatedndustes (Guthre& Olan 99b, Guthe e al 99, Johnson et a989), andin indusies hacteried by hgh vs low sabli y or change (Ghoshal & B e990, Evans 992), among oher opcs De to space liitaons, only e simpeclassficaton of manufacuing vs sevice ndusres is discussed below

Bowen & chneder (988) descred hree chraceriscs tha dstnguishhe acvtes o serces om manuactung organiaons: Frs a servce sgenealy intagibe seond n sevces he cusomer and employee usuaycollaborae n he sevce producon-nddelivey pocess hird in servces,

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poducon and consumpon ae uuay simutaneou Because customerspay a cenal roe n ervces, hey can be hough of a pa empoyees whoe subjc o human resouce manaemen (Bowen 96 Ms & Mor96) Conssen wh ths noon Jackson & Schue (992) found ha empoyers n e sevce seco wee more lkely o nclude cusomers as ourcesof npu o peformance appasal. Deences n he naure of manufacurngnd ervce aso appea o have mplcaon for ohe aspecs of HRM ysems ncudng ecruen and seeon anng compensaon es managemen use o empo wokes, and he deeopmen and manenane oappropae organzaona cmaes and cutures (see avs-Bake & Uzz993 eaney e a 99 Guhre & Oan 99a ackson & Schuer992ackson 94 Schnede eal 992 Tesra& Roe 993)

In summar hough no ye wel ncoporaed no eseach aadgms

nduy chracescs may hae a-eachng mpcaons o R ndusres ke naona cuure, are he conex whn whch meanngs e consrued efecveness s dened and ehavor are evaluaed (eg see ofede99)

NATONA UURE he gobaaon of naonl econoes nd e eouon o munaona enepses hve esued n ncreased aweness anddocumenaon o he dferences n ow human resources a managed among

counes (Brewse & egewsch 994 owers Pen 992) Because counes ofn have unque cuures (e vaue nos and cusos) s wdeypesumed tha munaona eneses mus undestand he cuue(s o eegon(s) n whch hey opeae n ode o eecve manage he humanresources

he mos wdey known framework or compang naona cuues haeveope by Hofsee (9 who enf four menons of cuure:ndvduasm mascu unce aodance d oe sce. A dmenson me oenton, hs een added moe eceny u mos aaabereserch consdes ony he four ogna densons (Hofede 993) erauhos hae denfed addona dmensons of cuure ncudng noay maeasm nd change oenaon (Ader 99 Phaak 992 Ronen994)

hee has een consdeae specuaon aou the posse mpcaons forRM o cuura vaons aong hese dmenons (Ere & Earey 993Mendoca& Kanungo 994 Socum & Le 993) bu empca sudes sedomncude drec measues o boh cultue and HRM nsead, esearches gene

a hae comped R acoss cones d hen agued ha cuu vuesand oentaon ae deenns o he derences ound (see rvey e a99 Bhaga e a 990 Brewser& son 99 Begn 992 Carro 9ewen & hoen 993 re 994 ckson 993 Mauyma992 Yu &

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CONTEXT 253

Muphy 1993). t must be ecognized, howeve, that cultue may not explnall deences found acoss counies (Lincon 1993) Couny difeences may so be the esult of dieencs in econoic and poitical systems(eg roll et al I988), laws and egulations (eg Flokowski & Nath 1993),industil elations systems (Sauss 1982), and labo mket condions (eg

Uvy-Leboy 1994). Recently, Hofsted (1 99 1 ) even suggested that oganization and indusy chacteistics may be moe impotant n nationa cutues as deteinants of manageia pctics and employee bhavios. Thisagumnt is consistent with evidence that some types of HM systems can beused eectively acoss counties that a cultuay quite dissimil (MacDuffie & Kcik 1 992 Wickens 1987) Ou undstanding of the ole of naonalcultue in HM coud benefi o invetiaons that ocus on the uesion ohow globay expnding compies dveop HRM systems hat ae simultae

ously consisent with multiple and disnct oca cutus and yet inteallyconsistent n context of a sngle organizaton c na & Pu1979 hat 199 chw 99 u 1993).

N TEGTIVE ERECTVE FOR REERCH ONHRM IN CONTEXT

Fiue 1 epesents a suma view of he many elationships between con

text and HM descibed in this eviw. The elationships we descibed aedepicted as pat of a lge model, which includes seveal impotant components hat ae beyond the focus of ou discussion The compoent labeld"ense-mng nd eisionmakng has been e subject o a gowing bodyof esach that invstigates how and why ogaiation lades actingindividuay and in conce, chaactie and intepet thei envionments,and the implications of these pocesse fo evnual action (eg Hambick99, Jackson 99, Jackson & utton 988) n ou integative mode

of HRM, these pocesses e assumed to be intmately bound wi the impicitd explicit poi o obeies hese in u e nslaed ino Mphosophies poams, and pactices (chule 199) ote wods, oumode psumes that th phenomena epesntd in the leftmost box in Figue1 ae key mediatos that help explan vcal linkags between context andHRM

ndividua, ogiational, nd sociealeve outcomes (ghtmost boxesin igu 1 ) lso mao componen o a intgativ mod A list ospecific outcomes could be eadly deved by eades fili wi the scin

tific and pacceoiented HRM iteate. We wish to encouage inteestdeseches to expand the conceptuaiaions of outcomes to go byond individuallevel behavio in wok setngs n addion, outcomes that dscbsmall d lge goups (g oups, ogaiations, sciety) should b consid

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aws Regulon

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CONTXT 255

eed and the phenomena studied should reect the eai hat H activiesmay fect outcomes beyond he adioal boundies o he get oganization (e.g alies, schools, counites).

Undestnding nd adancing HM i Context equies an integatie pespecte tat cognzes nd incooates all o e elaonshps depicted in

FigueI . Withi the discipline o pscholog howee linkages inoling teaco-leel intel nd exte envinents hae been lgel ignoedFotnately, a ealization is now eegig that this state o aais should notconnue. Much esech is needed to undestnd how inte nd extealenvionent shape a) the natue o hu esouce philosophies policiesand pctces; b the emploee behavios ad attitudes that should be valudnd wich e lel to be exhibited; the citeia that dene eploeeeectieness d achieed leels o eployee eectieness; and (d the ciea that deine oganizaona eectivenss and achieed leels o ogazationl eectieness In addition utue sech needs to ecognize that contexts a modeate the obseved elatonships between HM and viousoutcomes

Ou eiew o the liteate has eeed to us how seldo eseach addesses the hozont nkages aong HRM aciities, although such linkagese iped b most o the theoies we eiewed ad we would argue b mostpsychological theoies about mploee attitudes and behavios Emploeesdo not espond to speciic human esouce policies and pactices in isola

tion The attend to and intepet the entie aa o inomation availableand om this he discen cultual vues ad behavioal noms notunately we know supsingly litle about ow vious combinaions o humneouce policies and paccs a intepeted by employs no do we knowhow cmplex H systems inuence the atttdes and behaios o cuentnd potenal oganizationl embes O undestanding o ecl likagesbetween H and contexts cannot poceed without aending to the hoizontal intedependencies that exst aong huan esouce policies nd pactices

Theo-Driven Research

The heoes we have idenied epeset possible explnaions o soe othe empiical elationships between envonmental conditions and RM butthe avlable theoies ae admitdl inadequate Each deals wi pieces o helge henoenon and none addesses te whole domain o M in ContextThus, the ne ute the best wok w be inomed b multiple heoeticalpespectives Futhemoe because the theoies we have discussed wee gene

lly not oulated speciica o e pupose o undesnding HM inContext, some tanslation and adaptation o these theoies may be equiedThis anslaon pocess is likel to poceed in iteative steps wih consensus




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ACKSO & SCER

emergg slowly Nevertheless researh drve y omplete theores s more

lkey to aumuate to form a meagful ody of kowledge ompared toreserh drve y o theory at al

Methdlgial Issues

though mpeet potetaly usel theores are relatvey pletful Muhles pletul e psyhometry soud agreedupo approahes or measurg reevat osuts ad testg key theoretal propostos Though methodologal outos dusalorgaatoal psyhology s a eellet posto to oute to the advae of kowledge aout otet Coutos wl ot ome hrogh "researh as usual however Severa shfts approah wll e requred om reatg orgaaoal settgs as

soures of eor varae to attedg as losely to them as we have tradoaly atteded to dvdua haratersts from fousg o dvduas totreatg soal systems as the target for study from fousg o sgle prates or poles to adopg a holst approah to oepuag HRMsystems from researh odut sgle orgaatos at oe pot meto resech compang mutipe ganizations ano sudyg dyhages orgaatos aross tmes ad plaes ad from a searh fo theoe est way to a searh for the udameta features that haratere themay possle ways to desg ad mata effetve systems

These shfs perspetve are dametal may respets I oerrespes however they equre lte more th a hage from denng theessetal features of suatos as jo (as dusaorgaatoa psyhologyoe does) to a reogto that jo are merely the frst leve of ote amaylevel ompe system of otets y eteso we would arge thatuure HR resea sould elevate orgaao aayss d perhaps eaorgaato aayss to a status eq to tat urrety eoyed by ob ays We already uderstad ad a o the pple that eecve seleosytems performae appras mehods ompesato plas ad trgprograms aot e developed wthout a setfally vald dagos of thejoasstuato Slary the desg of eetve HRM systems aot edeveloped wthout a vad dagoss of the orgaatoasstuao? uetmetods f odutg jo lyss e ot adequate for odug orgaatoa aalyss However f motvate to do so thoughtl researhrs udoutely ould apply the prple o soud jo aayss for the purpose ofdevelopg sophstated methods fo measurg orgatoal otets

Th e , o oe dely cceed he g ereu wdely

ie.

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Also needed re measurement tools that capure he essential features ofHRM plosophes, polces, and pracces whle yeldng normaton thatactates meagl compsons among organzaons ad across envonmenta contexs. Researc at smply denes and descbes te most common conguraons o pescbed HRM systems and the most common oms

o receved HRM shoud seve as the oundaon or tue nvestgaons oHRM n Context. Ideay suc researc wll reect te eaty o rapd globazaon and the nteatonal context o most lge orgazaons Indeed, globalzaon may be te most potent caayst or an exposon o reserch onHRM n Conext: or hose operaing n a globa envronment, the importace

o context s undenable-t cannot gnored Mutnatona organzatonssrve or consstency n ther ways o aagng people on a wodwde basswhe aso aaptng her ways to te sc culural requremen o deent

societies (Laurent 1986 To meet ths challenge, those responsble or hedesn o bay eectve must te ocus away om the amotoverweng vrety o specc pacces and polces ound around eword and look nstead at te more absact, undamenal dmensons o contexs, HRM ystems and dmensons o employees' reacons eg see Fukerson & Schuler 199 I they succeed in dentifyng these dmensons and herelatonshps between them they may e able to more easly esgn HMsystems tat can be used eectvely n mtipe cont ocaton (e.. eeMacDufe & Kack 199

Any Rw hapter, wel any article ci n an Rw chaperma b puasd fm h Annua Rviws Pepnts and Rpints svi.

1-83787; 415259507 eal: arpr@claorg

Aahasn E 199 1 . Manageal fas anfasns the ffusn an ejen f nnvatns. d Mge Rev 16:866

Ae N. 991. tert Dmess frgt ehv Bsn: PWS et

Ale S 1993. Tieantin eganeHrd u Rev 73:97

Athaue RP. 1 989. ntea la akets. Rev 4361

Ave Bhaga RS Salas E. 199. ss utual an ssnaina ssues n e

sne an an esues anageenWhe e g f ee? Res PersHum Res Mge 9:367407

Bai L, Meshl . 1988. Managing thew s f stateg an ese anageen. d Mge Rev 3628

Bae . 991. Fr ese an ssaneetve avntage. J Mge 17:99 20Ban JN DavisBke A Bel W. 196a.

The stture tunt hw tn aes va wthn an ang gani zatns. dm S 3 1 :2473

Ban N Dn ennngs PD 196Wa an eae: the evlutn f eesnnel anstatin n S n.m J S 92:303

Beke GS. 964. Hum Cpt New YkNatl. Bu. En. Res.

Begin JP. 991. Stteg mpymet PyEngew liffs, N: PentieHallBen P. 992. aave uan ese

anageent HRM) a sses esetve. It J Hum Res Mge 3:379408

Benne N, Blu T, Ran PM. 994. Pes

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25 JACKSON & SCHULER

ence of drug sceeng and employee assisance pograms: exclusve and nclusvehuman esource management pactces rg Bev 1 5 n pss

Bhagat RS, Keda BL Cawfod SE KaplanMR 1990. Cross-cuura ssues n oganzaonal psychoogy emergent ends and

dons o esearch n he 990. Re rg Psyco 5 196231Bogano M, Kene M 1992 Inucon

lar make instiuons and the utue oleo unons Re 3 1 1 2

Boudau JW Bergr CJ 198. Decsoheoetc uly anayss appled o employee sepaatons and acqustons. 1pp Psyo!' 70:812

Bouois F, Chaucha JH 1990. Managngmanagers Eur Mge 8567

Bowen DE 1986. Managng cusomers as human esouces n sevce oganaons

Hum Res Mge 253783Bowen DE Ldford GE J Nahan BR. 99

Hrng fo the organizaton, no the jobc Mge Exec 54)355

Bowen DE Schede B 988 Sevces makeng and managemen mpicatons oraizational bhavor Re rg e v 104380

Bet Goldbeg SB, Uy WL 1990 Degnng systems or esovng disputes inogaizaons m Psy 4620

Betz R Jr, Milkovich Read W 1992 Thecurren state o performance appasal re

seach and pacc conces, dectons,and mplicatons Mge 18 1 137

Bewste C Hegewsch A Lkhat T Holden, eds 993 Te Europe H Resoure Mgeme Gude New YokAcademic

Brewse C, Hegewisch A, eds 994. Pod Pre Europe Hum Re source Mgeme London Rouedge

Bewste C Tyson S, eds. 199. omos Hum Reure Mge London: Ptmn

Brdge Vlleme WJ 991 mpoymeneaons and he labo make: nteatngnsttutional and maket pescves mSoo! Rev 564864

Bul PF, Napier NK 1993. Stategy and human esource managemen nteaton infast gowh versus othe mdsiz msr J Mge 4:27391

Caroll GR Deacox J dsen 988.The poltcal envronmens o oganatons an ecologcal view Res rg Be 1035992

Caroll SJ 988 Asian H phlosophies and

sysems Can they mt our changng Hnds? n Persoe Hum ResourceMgeme ed RS Schule SA Younglood VL Hu pp 442. St au,MN West

Csen M Speco PE 1987 nempoy-

ment ob satisacton, and employee uover: a meta-nayc es o the MuchskyModel pp Psyco!' 723748

Casco W 9 1 osg Hum ResorceTe c mp of Bevor rgos Boston WS-Kent

Casco WF 199 Reconclng econoc and

socal obectves n pesonnel seecionimpact o alteative decsion ues ewpproces Emp Mge ressEmp Se! :186

Child J 1977. rgo New ok apr & Rw

Clk 1993. Managng pople n a tie ofechcal change concusons and impicaons n Hum Resoure Mgemed Tec ge ed J Clark, pp212 Newbuy ark CA Sage

Colns D, Hache L Ross 993 Thedecson o mpeme ganshang he oe

of work climate expted oucomes, anduion saus Pers Psyco 4677\04

Conon E arks J 1990. The effect omonong nd radton on compnsaon arangemens an exment on pncipal/ agen dyads d Mge J 360322

Cor K. 199. A histoca prsptiv ofesouce-bas hy and fve schs othought wthn industria oganizaon ecnomics Do we need a new theo o thefirm J. Mge 11214

Cook DS, es R 1986. Strategic han

esouce mnagemen and effectiveness n ndusres experiencng declineHum Res Mge 2544158

Cowhed DM, Levne D 992. roduc ualty and pay euity etween lowe-level employs and op management an invesgation o dstributve jusce theory mS Q 37:30220

Cox T J 1993 uu Dversy rg z: San Francisc: Brrt-Khr

Cutche-Geshefeld 199. The mpat oneconomc peomce of a ansfotonin wokplace elaions Lbo ReRev 44240

Datta DK uthe 194 Exuve succesion oganizatonal antecedens of COcharactestics Sr Mge J n pess

Davis-Blake A, zzi B 993. Deermiats ofemployment exenaizaton a sudy ofemry wokers nd ndependent conacos Sc Q. 38: 95223

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