Competency Approach to Human Resources Management: Outcomes and Contributions in a Turkish Cultural Context

Gaye !elik Murat "erman

I ik University
This article examines the competency approach to human resources management (HRM) in organizations through a review of literature an theories on the competency perspective! "uil ing on previous theory an some empirical evi ence# a new competency framework is evelope ! The main purpose of the article is to examine the effectiveness of the competency approach as a human resources strategy for promoting expecte roles# skills# an $ehaviors in organizations! The article also examines potential challenges to implementing a competency approach to HRM in a special cultural context! This is provi e $y a case stu y in a multinational# fast%moving# consumer goo s company in Turkey! &ne of the fin ings of the stu y is that there are challenges to implementing the competency approach ue to the cultural ifferences $etween home an host countries! If properly esigne # however# the competency approach can enhance selection# evelopment# promotion# an rewar processes to meet $oth in ivi ual an organizational nee s

Human capital and performance: A literature review Dr Philip Stiles and Somboon Kulvisaechana Judge Institute of Management !niversit" of #ambridge $rumpington Street #ambridge #%& 'A(
Human capital and performance 1

Human capital and performance: A literature review

S)#$I*+ PA() +!M%),

Human capital in context: the resource based view of the firm 3 Human capital and complementary capitals 5 Intellectual capital 6 Social capital 7 Or anisational capital 7 !nowled e " Human capital and performance # $ontin ency or %fit& approaches '3 (niversal or %best practice& approaches ')

$onfi urations '5 Indirect lin*s+ commitment and performance '6 ,ifficulties with the lin* between human capital and performance '7 -easurin human capital '" .eportin human capital measures /0 $onclusions /' 1ables /3 .eferences /) 2ppendix: Selected studies on H. practices 3 performance lin* 3)
Human capital and performance 2

Human capital and performance: A literature review

1here is a lar e and rowin body of evidence that demonstrates a positive lin*a e between the development of human capital and or anisational performance4 1he emphasis on human capital in or anisations reflects the view that mar*et value depends less on tan ible resources5 but rather on intan ible ones5 particularly human resources4 .ecruitin and retainin the best employees5 however5 is only part of the e6uation4 1he or anisation also has to levera e the s*ills and capabilities of its employees by encoura in individual and or anisational learnin and creatin a supportive environment in which *nowled e can be created5 shared and applied4 In this review5 we will assess the context in which human capital is bein discussed and identify the *ey elements of the concept5 and its lin*a e to other complementary forms of capital5 notably intellectual5 social5 and or anisational4 7e will then examine the case for human capital ma*in an impact on performance5 for which evidence is now rowin 5 and explore mechanisms for measurin human capital4 Our belief is that5 on the evidence of this review5 the lin* between human capital and or anisational performance is convincin 4 8mpirical wor* has become more sophisticated5 movin from sin le measures of H. to embrace combinations or bundles of H. practices and in this tradition5 the findin s are powerful4 Such results have led some scholars to support a %best practices9 approach5 ar uin that there is a set of identifiable practices that have a universal5 positive effect on company performance4 Other scholars ar ue that difficulties in specifyin the constituents of a best practices set5 and the sheer number of contin encies that or anisations experience5 ma*e a best practice approach problematic4 2 eneral and rowin trend in this debate is to see these approaches as complementary rather than in opposition5 with best practice viewed as an architectural dimension that has eneralisable effects5 but within each or anisation5 the bundles of practices will be ali ned differently to reflect the context and contin encies faced by the firm4 1hou h there appears to be a rowin conver ence on this issue5 the measurement of human capital remains rather ad hoc5 and more needs to be done to develop robust methods of valuin the human contribution4

Human capital in context: the resource-based view of the firm

1he issue of what contributes to competitive advanta e has seen5 within the strate y literature5 a shift in emphasis away from external positionin in the industry and the relative balance of competitive forces5 towards an ac*nowled ement that internal resources be viewed as crucial to sustained effectiveness :7ri ht et al /00';4 1he wor* of <enrose :'#5#; represents the be innin of the resource=based view of the firm :.>?;5 later articulated by .umelt :'#");5 >arney :'##'5 '##6; and ,ieric*x 3 $ool :'#"#;4 1he .>? established the Human capital and performance 3 importance for an or anisation of buildin a valuable set of resources and bundlin them to ether in uni6ue and dynamic ways to develop firm success4 $ompetitive advanta e is dependent not5 as traditionally assumed5 on such bases as natural resources5 technolo y5 or economies of scale5 since these are increasin ly easy to imitate4 .ather5 competitive advanta e is5 accordin to the .>?5 dependent on the valuable5 rare5 and hard=to=imitate resources that reside within an or anisation4 Human capital in a real sense is an %invisible asset& :Itami '#"7;4 1he importance to the strate ic aims of the or anisation of the human capital pool :the collection of employee capabilities;5 and how it is mana ed throu h H. processes5 then becomes apparent4 In terms of rarity: %If the types and levels of s*ills are not e6ually distributed5 such that some firms can ac6uire the talent they need and others cannot5 then :ceteris paribus; that form of human capital can be a source of sustained competitive advanta e& :Snell et al '##6:65;4 2nd in terms of inimitability5 there are at least two reasons why human resources may be difficult to imitate: causal ambi uity and path dependency :>ec*er 3 @erhart '##65 >arney '##';4 %Airst5 it is difficult to rasp the precise mechanism by which the interplay of human resource practice and policies enerates valueBsecond5 these H. systems are path dependent4 1hey consist of policies that are developed over time and cannot be simply purchased in the mar*et by competitors& :>ec*er 3 @erhart '##6:7"/;4 1he interdependency between H. practices combined with the idiosyncratic context of particular companies creates hi h barriers to imitation4 Of course5 the human resources must be valuable+ they must5 as >oxall says5 be %latent with productive possibilities& :'##6:67; and so human capital advanta e depends on securin exceptional talent5 or5 in the familiar phrase5 %the best and the bri htest&4 1his emphasis on human capital also chimes with the emphasis in strate y research on %core competencies&5 where economic rents are attributed to %people=embodied s*ills& :Hamel 3 <rahalad '##):/3/;4 1he increasin importance of the .>? has done much to promote human resource mana ement in eneral and human capital mana ement in particular5 and to brin about a conver ence between the fields of strate y and H.:7ri ht et al /00';4 1he resource=based view of the firm stren thened the often=repeated statement from the field of strate ic human resource mana ement that people are hi hly important assets to the success of the or anisation4 2lthou h -ichael Hammer su ested that %people are our reatest asset& is %the bi est lie in contemporary 2merican business&5 the rise of human Human capital and performance 4 resource mana ement5 in terms of rhetoric at least5 has been spectacular4 1his was spar*ed in the '#"0s by the examination of the %Capanese miracle&5 an analysis that showed success built on a distinctive form of people mana ement5 and by the ea erly received recommendations from the excellence movement :<eters 3 7aterman '#"/5 $ollins 3 <orras '##);5 which ur ed the development and nurture of employees within a supportive stron culture4 2 more recent5 and e6ually important strand has emer ed under the title %the *nowled e=based view of the firm9 :@rant '##6;5 which emphasises the re6uirement of or anisations to develop and increase the *nowled e and learnin

capabilities of employees throu h *nowled e ac6uisition and *nowled e sharin and transfer5 to achieve competitive advanta e4

Human capital, and complementary capitals

Human capital is % enerally understood to consist of the individual&s capabilities5 *nowled e5 s*ills and experience of the company&s employees and mana ers5 as they are relevant to the tas* at hand5 as well as the capacity to add to this reservoir of *nowled e5 s*ills5 and experience throu h individual learnin & :,ess 3 <ic*en /000:";4 Arom a definition such as this5 it becomes clear that human capital is rather broader in scope than human resources4 1he emphasis on *nowled e is important5 and thou h the H. literature has many thin s to say about *nowled e5 the debate is traditionally rooted in an individual level perspective5 chiefly concernin Dob=related *nowled e5 whereas the human capital literature has moved beyond the individual to also embrace the idea that *nowled e can be shared amon roups and institutionalised within or anisational processes and routines :7ri ht et al /00';4 %1he concept and perspective of human capital stem from the fact that there is no substitute for *nowled e and learnin 5 creativity and innovation5 competencies and capabilities+ and that they need to be relentlessly pursued and focused on the firm&s environmental context and competitive lo ic& :.asto i5 /000:'#6;4 Such a consideration leads to a crucial point: the accumulation of exceptionally talented individuals is not enou h for the or anisation4 1here must also be a desire on the part of individuals to invest their s*ills and expertise in the or anisation and their position4 In other words5 individuals must commit or en a e with the or anisation if effective utilisation of human capital is to happen4 In addition5 therefore5 to human capital5 there must also be social capital and or anisational :or structural; capital4 1hese three forms of capital contribute to the overall concept of intellectual capital :see Ai ure ';4 Human capital and performance 5

Figure 1: Intellectual capital

Valuable relationships And networks Structures, processes & culture Skills, behaviour, knowledge Social capital Organisation capital Human capital

Intellectual capital

Intellectual capital

1he O8$, :'###; defines intellectual capital as %the economic value of two cate ories of intan ible assets of a company& E or anisational and human capital4 7ri ht et al :/00'; ar ue that intellectual capital is a factor that includes human capital5 social capital and or anisational capital4 Aor Fahapiet 3 @hoshal :'##";5 intellectual capital refers to the %*nowled e and *nowin capability of a social collectivity5 such as an or anisation5 intellectual community5 or professional practice4& :'##":/)5;4 1here is a lac* of clarity surroundin these and related terms5 with numerous definitions aboundin 4 In one study5 @ratton 3 @hoshal :/003; ar ue that intellectual capital is part of human capital5 that is5 human capital subsumes intellectual capital5 and also includes within it social capital and emotional capital4 Aor most commentators5 however :e4 4 !aplan 3 Forton '##35 Harvey 3 Gusch '###5 Stewart5 '##75 Sveiby '##7; intellectual capital has a broad sweep and includes human capital as one of its *ey dimensions4 $entral to these ideas is that intellectual capital is %embedded in both people and systems4 1he stoc* of human capital consists of human :the *nowled e s*ills and

abilities of people; social :the valuable relationships amon people; and or anisational :the processes and routines within the firm;& :7ri ht et al /00':7'6;4 Human capital and performance 6 ,evelopin human capital therefore re6uires attention to these other complementarities4 If competitive advanta e is to be achieved5 inte ration between human5 social and or anisational capital is re6uired4

Social capital

2ccordin to Fahapiet 3 @hoshal :'##"; %the central proposition of social capital theory is that networ*s of relationships constitute a valuable resource for the conduct of social affairsBmuch of this capital is embedded within networ*s of mutual ac6uaintance& :'##":/)3;4 Social capital5 it is ar ued5 increases the efficiency of action5 and aids co= operative behaviour :Fahapiet 3 @hoshal '##";4 Social relationships and the social capital therein5 are an important influence on the development of both human and intellectual capital4 2t the individual level5 individuals with better social capital = individuals with stron er contact networ*s = will %earn hi her rates of return on their human capital& :@aravan et al /00':5/;4 >ut it is at the or anisation level that social capital is hi hly important4 2s Fahapiet and @hoshal ar ue: %social capital facilitates the development of intellectual capital by affectin the conditions necessary for exchan e and combination to occur& :'##":/50;4 In social capital5 the authors ar ue for three maDor elements: a structural dimension :networ* ties5 networ* confi uration and appropriable or anisation;+ a co nitive dimension :shared codes and lan ua es5 shared narratives;5 and a relational dimension :trust5 norms5 obli ations and identification;4 2ll three influence the development of intellectual capital4 1his approach lin*s well with the prevailin resource=based view5 with its emphasis on bundles and combinations of resources4 Social capital5 with its stress on lin*a es between individuals5 creates the conditions for connections which are non=imitable5 tacit5 rare and durable4 @ratton 3 @hoshal :/003; ar ue that social capital is based on the twin concepts of sociability and trustworthiness: %the depth and richness of these connections and potential points of levera e build substantial pools of *nowled e and opportunities for value creation and arbitra e& :/003:3;4

Organisational capital

1he principal role of or anisational capital is to lin* the resources of the or anisation to ether into process that create value for customers and sustainable competitive advanta e for the firm :,ess 3 <ic*en '###:'';4 1his will include: ' Or anisational and reportin structures ' Operatin systems5 processes5 procedures and tas* desi ns Human capital and performance 7 ' Information and communication infrastructures ' .esource ac6uisition5 development and allocation systems ' ,ecision processes and information flows ' Incentives5 controls and performance measurement systems ' Or anisational culture5 values and leadership 1he interactions between these dimensions are important if employees are to have the motivation to develop and use their s*ills and *nowled e4 >e innin with the last issue first5 the culture of the or anisation has a lar e impact on both recruitment and retention as well as in the area of eneratin commitment4 In -c!insey&s 7ar for 1alent survey :'###;5 5"H of employees5 by far the hi hest response5 said that what they valued the most in or anisations was stron values and culture4 2 supportive culture with stron corporate purpose and compellin values has been seen as the underlinin reason for maDor corporate success :<eters 3 7aterman '#"/5 $ollins 3 <orras '##);4 2 second maDor influence on human capital is the incentive structure and how performance is

measured and mana ed in eneral4 7e have mentioned earlier that studies have shown differentiated reward systems5 and clear positive appraisal lin*ed to incentives5 can lin* directly to firm performance4 In terms of or anisational structure5 %the de ree that s*illed and motivated employees are directly involved in determinin what wor* is performed and how this wor* ets accomplished& is crucial :,elaney 3 Huselid '##6: #50;4 1o this end5 employee participation :7a ner '##);5 internal career ladders :Osterman '#"7; and team based wor*in :Gevine '##5; have all been shown to positively lin* to or anisational performance :,elaney 3 Huselid '##6;4 2ccordin to .umelt :'#");5 the routines and processes that act as the lue for or anisations can either enhance or disable co=operative wor*in and the development of *nowled e4 1his is ultimately the simple point that or anisational structures and processes must support the purpose of the or anisation and so have re6uisite variety :Cac6ues '#"'; without creatin boundaries between individuals and roups4

Knowledge

1he connections between human capital5 social capital and or anisational capital will produce intellectual capital4 1his in turn will affect the mana ement of *nowled e within the or anisation4 !nowled e has lon been reco nised as a valuable resource by economists and has been a focus of si nificant attention in the human capital literature5 in particular the issues of *nowled e eneration5 levera e5 transfer and inte ration :7ri ht et al /00'5 Fona*a '##)5 Sveiby '##75 SIulans*i '##6;4 !nowled e has been conceptualised and characterised in Human capital and performance 8 a number of ways in the literature :-arupin /00/; but a maDor point of commonality has been the distinction between tacit *nowled e :or *now=how; characterised by its incommunicability5 and explicit *nowled e5 which is capable of codification :Fona*a '##)5 <olanyi '#6/5 '#67;4 @iven the importance of *nowled e in the or anisation :indeed5 @rant :'##6; posits a *nowled e=based theory of the firm; it becomes crucial that the employees who are the source of *nowled e are mana ed well4 1his re6uires that firms %define *nowled e5 identify existin *nowled e bases5 and provide mechanisms to promote the creation5 protection and transfer of *nowled e :7ri ht et al /00': 7'3;4 1he fundamental issue with tacit *nowled e is its intan ibility and <feffer 3 Sutton :'###; ar ue that the *nowled e=doin ap :translatin *nowled e into action; is at least as important as accumulatin *nowled e in the first place4 In other words5 attendin to the conditions under which people are prepared to share and act upon their *nowled e is a maDor component of human capital mana ement4 2s 7ri ht et al :/00'; point out5 in the H. literature there has been a focus on developin individual *nowled e throu h trainin and providin incentives to apply *nowled e4 >ut the human capital literature is as much concerned with the or anisational sharin of *nowled e5 ma*in it accessible and transferable4 Geonard=>arton :'##/; has identified four processes for supportin or anisational learnin and innovation4 '4 ownin Jsolvin problems :e alitarianism; /4 inte ratin internal *nowled e :shared *nowled e; 34 continuous experimentation )4 inte ratin external *nowled e :openness to outside; 1he reater the sense of social community within the firm :social capital;5 the more li*ely it is that *nowled e will be created and transferred :$oleman '#"";4 Similarly5 if a combination of or anisational processes and boundaries are in place5 this may hinder efforts to turn *nowled e into action4

Human capital and performance

1he lin* between human capital and performance is based on two theoretical strands4 1he first5 as we have discussed5 is the resource=based view of the firm4 1he second is the expectancy theory of motivation :?room '#6"; which is composed of three elements: the valence or value attached to rewards+ the instrumentality5 or the belief that the employee will receive the reward upon reachin a certain level of performance+ and the expectancy5 the Human capital and performance 9 belief that the employee can actually achieve the performance level re6uired4 H.practices that encoura e hi h s*ills and abilities = e4 4 careful selection and hi h investment in trainin = can be specified to ma*e the lin* between human capital mana ement and performance4 In this section5 we shall outline a chronolo y of wor* in the area of H. practice and performance5 before movin on to discuss some of the problems with researchin the subDect4

1960s and 1970s

Initial writin on human capital flowed from economists of education such as ShultI :'#6#;5 -incer :'#6/;5 and >ec*er :'#6)5 '#76; :who won a Fobel <riIe for his wor* in this subDect; focusin on the economic benefits from investments in both eneral and firm=specific trainin 4 1his wor*5 based on detailed empirical analysis5 redressed the prevailin assumption that the rowth of physical capital is paramount in economic success4 In reality5 physical capital %explains only a relatively small part of the rowth of income in most countries& :>ec*er '#6):';4 1he relationship between education and economic rowth :<sacharopoulos '#73;5 productivity :,enison '#675 '#6/; and earnin s rowth :SchultI '#7'5 >ec*er '#6); all have stron empirical support 4 Human capital has been central in explainin individual earnin s differences 4 8mployees who invest in education and trainin will raise their s*ill level and be more productive than those less s*illed5 and so can Dustify hi her earnin s as a result of their investment in their human capital4 7ith general trainin 5 %the potential for asset creation exists5 so do the conditions for employee turnover because trained employees can mar*et their hei htened human capital& :Steffy and -aurer '#"":/77; Airms may reduce the wa es of those on trainin to offset the costs of trainin 5 to increase it a ain5 once employees have completed the trainin once productivity value increases :>ec*er '#75;4 7ith firm specific trainin 5 there is no incentive for the employee to leave the firm4 1he chief benefit of the trainin will be to the firm5 and so there is no incentive for employees to accept reduced wa es in order to offset the costs of trainin 4 1he firm thus bears all costs of trainin and %if asset creation is to occur5 the mar inal productiveness of employees durin the post=trainin period must increase enou h to offset the ine6uality between labour costs and productivity value durin trainin & :Steffy and -aurer '#"":/7";4 8fficient and effective trainin pro rammes are therefore necessary for value creation4 1here are5 of course5 cost interdependencies5 and iven the lin*a es between H. practices5 investment and developin capability in one area may lead to reduced costs or need for investment in other areas5 Dust as investin in recruitment and selection may hi hli ht individuals who re6uire little trainin on arrival into the firm :Steffy and -aurer '#"";4 Human capital and performance 10 In addition to economists5 human resource accountants wanted to explain how the contributions of employees added to the asset value of the firm5 and set out to establish valid and reliable techni6ues for measurement of cost and value of employees to or anisations :AlamholI '#7)5 Ariedman and Gev '#7);4 1he chief issue within human resource accountin :H.2; is that human assets5 unli*e capital assets5 have a lar ely uncertain future service life4 -easurin the value of human resources has therefore been concerned with the nature of the uncertainty and providin

estimates of this5 with a number of measures used5 includin the discounted future compensation model :Gev and SchwartI '#7); E where the value of an employee is the present worth of their remainin earnin s from employment5 and the replacement cost method5 where %costs incurred by recruitin 5 selectin 5 compensatin 5 and trainin employees reflect the expected value of successful Dob performance& :Steffy and -aurer '##": /73;4 Aor AlamholtI :'#7)5 '#"5;5 the H.2 issue of measurin an individual&s value to the firm is founded on the notion that it is not the individual per se who is valuable5 but the individual in relation to the roles heJshe plays that is crucial5 and he and others :Ariedman and Gev '#7)5 Gau and Gau '#7"5 -orse '#73; developed a stochastic valuation model to measure system dynamics and estimate expected service life with *nown estimated error :Steffy and -aurer '#"";4 1he development of human resource accountin as a field demonstrated the hi h interest in attemptin to value the contribution of employees4 However5 a number of issues led to interest in the area wanin in the '#70s4 Airst5 as Steffy and -aurer point out: %public accountin standards were too strin ent to allow the direct reportin of human asset value in financial statements& :'#"":/7";4 Second5 no enerally accepted accountin procedures emer ed for human resources and the pro ress of human resource accountin has been5 at best5 mixed5 with one maDor review concludin : %2t the theoretical level5 H.2 is an interestin concept4 If human resource value could be measured5 the *nowled e of that value could be used for internal mana ement and external investor9s decision ma*in 4 However5 until H.2 advocates demonstrate a valid and eneralisable means for measurin human resource value in monetary terms5 we are compelled to recommend that researchers abandon further consideration of possible benefits from H.2& :Scarpello 3 1hee*e '#"#:/75 = cited in $ascio '##';4

1980s

1he rise of human resource mana ement in the '#"0s brou ht mana erial scholars to the debate on the lin* between the mana ement of people and performance4 2 number of Human capital and performance 11 attempts were made to put empirical flesh on the theoretical bones of the resource=based view and the specific H.- prescriptions concernin vertical and horiIontal ali nment and how the systems of H. practice can increase or anisational performance4 8arly studies at this time examined investment in H. practices and business performance4 (sin cross sectional survey data5 F*omo :'#"65 '#"7; examined the lin* between H. plannin and business performance5 and found no correlation4 1hese results were supported by another survey=based study :,elaney5 Gewin and Ichniows*i '#""5 '#"#; into H. practices and financial performance5 which also found no lin*4 7or* by (lrich and collea ues on the O2SIS research pro ramme :Or anisation and Strate ic information Service; used the <I-S database and found positive relationships between specific H. practices and business results :(lrich5 @eller and ,eSouIa '#")5 $owherd 3 !amins*i'#"6;4 2 later study :Keun and (lrich '##0; found that the manner of ali nment between H. and business strate y had an impact on or anisational performance4 1his wor* built on a previous study by Schuler and Cac*son who5 with cross sectional data5 showed how H. practice varied dependin on the business strate y profile :Cac*son5 Schuler and .ivero '#"#5 Schuler and Cac*son '#"75 Schuler '#"7;4 2 number of scholars tried to lin* the effect of certain H. practices to specific or anisational outcomes4 1he adoption of trainin pro rammes was positively associated with financial performance :.ussell5 1erbor 3 <owers '#"5;4 Cob security5 presence of a union5 compensation level5 culture and demo raphics have an impact on turnover :2rnold and Aeldman '#"/5 >aysin er and -obley '#"3;5 while transformational labour relations :involvin partnership and involvement; were lin*ed to increased productivity :!atI5 !ochan 3 !eefe '#"7;4

7ithin the H. accountin field5 utility analysis became a dominant theme :>ourdreau '##'5 Schmidt et al '#7#;4 Scholars in this field attempted to overcome some of the measurement problems that do ed early H.2 formulations by examinin alternative means of economic valuation4 (tility analysts %measure the economic contribution of personnel activities accordin to how effective they are in identifyin and modifyin individual behaviours5 hence the future service contributions of employees& :Steffy and -aurer '#"":/7#; 4 ,ollar valuation = analysin the dollar value of certain H. pro rams5 particularly selection and trainin 5 and comparin them with the expected dollar value return from other investments E lay at the heart of the method5 but problems rest on the choice of the valuation base :ex ante concepts or ex post concepts or both; :Steffy and -aurer '#"";5 and the enerally broad Human capital and performance 12 confidence intervals for estimates :2lexander and >arric* '#"7;4 2s >ec*er and @erhart :'##6; state: %there is some doubt re ardin whether mana ers& decisions are particularly responsive to information about the estimated dollar value of alternative decisions5 particularly as the estimation procedures become increasin ly complex and difficult to understand& :'##6:7"0;4

1990s

1he research approach of focusin on individual H. practices and their lin* to performance continued into the early '##0s5 some relyin on sin le measures of H. practices4 >artel :'##); established a lin* between the adoption of trainin pro rams and productivity rowth5 while the lin* between trainin pro rammes and financial performance was supported by @erhart 3 -il*ovich :'##/;4 7eitIman 3 !ruse :'##0; identified lin*s between incentive compensation schemes and productivity5 and 1erpstra 3 .oIell :'##3; examined the extensiveness of recruitin 5 selection test validation and the use of formal selection procedures and found a lin* to or anisational profits4 In eneral5 selectivity in staffin have been shown to be positively related to or anisational performance :>ec*er 3 Huselid '##/5 Schmidt5 Hunter5 -c!enIie 3 -uldrow '#7#;4 <erformance evaluation and its lin*a e to compensation schemes have also been identified as contributin to increases in firm profitability :>orman '##';4 However5 such reliance on sin le H. practices may not reveal an accurate picture4 1he dominant view of human resource efficacy is that individual human resource practices %have limited ability to enerate competitive advanta e in isolation& but %in combinationB they can enable a firm to realise its full competitive advanta e& :>arney '##5:56;4 In other words5 relyin on sin le H. practices with which to predict performance is unli*ely to be revealin 4 -oves had been made within the field5 therefore5 to examine the notion of clusters or bundles of H. practices and how they impact on or anisational performance4

Contingency or fit approaches

2 central tenet of strate ic human resource mana ement is that there should be vertical lin*a e between H. practices and processes and the or anisational strate y of the firm4 1he strate ic posture of the or anisation will influence the style and approach of human resource activity4 Strate ies vary5 and a number of researchers have investi ated how H. practices vary with differences in strate ic approach4 -ost wor* in this area uses traditional strate y typolo ies5 such as cost5 flexibility and 6uality strate ies :e4 4 Koundt et al '##6; or -iles 3 Snow&s :'#7"; framewor* of prospector5 analyser and defender :,elery 3 ,oty '##6;4 1he Human capital and performance 13 emphasis here is on ali nment5 or fit5 between the external environment5 the strate y of the or anisation5 and H.4 1he notion of fit has been articulated by writers such as ?en*atraman :'#"#; and the benefits of ti ht couplin to ensure efficiency and

effectiveness in achievin or anisational aims have been well attested5 but some authors :@erhart et al '##65 Orton 3 7eic* '##05 <errow '#"); have ar ued that such ti ht lin*s may represent a barrier to adaptability and flexibility4 Huselid :'##5; has found that those or anisations that lin* H.- practices to strate y report hi her performance outcomes4 ,elery 3 ,oty :'##6;5 in a sample of '5050 ban*s5 found modest support for a fit with the -iles 3 Snow typolo y4 Koundt et al :'##6; found support for this type of fit in a sample of #7 manufacturin plants4 -ac,uffie :'##5; in contrast5 explicitly reDects this hypothesis5 claimin that in his study of car manufacturin plants5 he found no evidence that a %fit9 of appropriate H.- practices to mass production was able to compete with flexible production4

Universal or best practice approaches

2 second perspective on human resources and performance lin*a e is the idea of %best practices&5 or %hi h performance wor* practices&4 1his view emphasises the need for stron consistency amon H. practices :internal fit; in order to achieve effective performance4 1his view has a hi h de ree of empirical support :Huselid '##55 ,elaney 3 Huselid '##65 2rthur '##)5 Ichniows*i5 Shaw 3 <rennushi '##75 -ac,uffie '##5;4 1his view has been championed prominently by <feffer 5 who listed '5 H. practices in '##) :see 1able '; which became seven in '##": employment security+ selective hirin 5 self= mana ed teams5 hi h compensation contin ent on performance5 trainin 5 reduction of status differentials5 and sharin information4 2rthur :'##/5 '##); found that H. practices focused on enhancin employee commitment :e4 4 decentralised decision=ma*in 5 comprehensive trainin 5 salaried compensation5 employee participation; were related to hi her performance4 $onversely5 he found that H. practices that focused on control5 efficiency and the reduction of employee s*ills and discretion were associated with increased turnover and poorer manufacturin performance4 Similarly5 in a study of hi h performance wor* practices5 Huselid :'##5; found that investments in H. activities such as incentive compensation5 selective staffin techni6ues and employee participation resulted in lower turnover5 reater productivity and increased or anisational performance throu h their impact on employee s*ill development and motivation4 Human capital and performance 14 7hat the view shows is that the more of the hi h performance H.- practices that are used5 the better the performance as indicated by productivity5 turnover or financial indicators4 7here different types of fit were compared5 this was invariably the one that received the stron est support4 2lthou h support for this view exists5 there are notable differences across studies as to what constitutes a %best& practice4 Fonetheless5 several themes emer e across the studies4 2t their heart5 most of the studies focus on enhancin the s*ill base of employees throu h H. activities such as selective staffin 5 comprehensive trainin and broad developmental efforts li*e Dob rotation and cross utilisation4 Aurther5 the studies tend to promote empowerment5 participative problem solvin and teamwor* with Dob redesi n5 and roup based incentives4

Configurations

2 third strand of research has emphasised the patterns or confi urations of H. practices that predict superior performance when used in association with each other5 or the correct strate y5 or both4 In order to be effective5 an or anisation should develop an H. system that achieves both horiIontal and vertical fit4 2s -ac,uffie ar ues: %Implicit in the notion of a %bundle9 :of human resources; is the idea that practices within it are interrelated and internally consistent5 and that %more is better9 with respect to the impact on performance5 because of the overlappin and mutually reinforcin effect of multiple practices9 :'##5: /0';4

7ith the confi urational approach %the distinction between best practice and contin ency models be ins to blur& :>ec*er 3 @erhart '##6:7"";4 1he confi urational idea is that there will be effective combinations of H. practices that will be suited to different or anisational strate ies4 Huselid 3 >ec*er :'##5; and ,elery 3 ,oty :'##6; found some support for the confi urational approach in their respective studies4 In summary5 while some authors ar ue for the idea of external and internal fit5 others ar ue for an identifiable set of best practices for mana in employees that have universal additive positive effects on or anisational performance4 Some :e4 4 Koundt et al '##6; maintain that the two approaches are in fact complementary4 1he ar ument that these approaches are not in conflict has also been made by >ec*er 3 @erhart :'##6; and @uest 3 collea ues :/000;4 2s >ec*er 3 @erhart :'##6; state5 best practices have an architectural nature: for example5 the idea of incentives for hi h performance has a eneralisable 6uality4 >ut within a particular firm5 H. practices and their mix will be different5 dependin on context and strate y and so Human capital and performance 15 forth4 %1wo companies with dramatically different H. practices ar uably have 6uite similar H. architectures4 Aor example5 althou h the specific desi n and implementation of their pay and selection policies are different5 the similarity is that both lin* pay to desired behaviours and performance outcomes and both effectively select and retain people who fit their cultures :'##6:7"6;4 Or5 as @uest puts it: %the idea of %best practices9 mi ht be more appropriate for identifyin the principles underlyin the choice of practices5 as opposed to the practices themselves9 :@uest et al5 /000:3;4

Indirect links: commitment and performance

Hi h performance mana ement5 or hi h performance wor* practices5 has become an important field4 1he practices across a number of authors are listed in 1able '4 Hi h commitment mana ement aims to o beyond hi h performance mana ement to include an ideolo ical component = the identification of the employee with the oals and values of the firm5 so inducin commitment :7alton '#"5;4 1he wor* of 7ood and collea ues has identified a number of common feature of hi h commitment mana ement: ' the development of career ladders and emphasis on trainability and commitment ' a hi h level of functional flexibility with the abandonment of potentially ri id Dob descriptions ' the reduction of hierarchies and the endin of status differentials ' a heavy reliance on team structure for structurin wor* and problem solvin ' exemplary Dob desi n to promote intrinsic satisfaction ' a policy of no compulsory lay=offs or redundancies ' new forms of assessment and payment systems ' a hi h involvement of employees in the mana ement of 6uality4 @uest and collea ues9 wor* for the Institute of <ersonnel and ,evelopment :/000;5 surveyin 6'0 or anisations in the (!5 endorsed that there is a stron lin* between H.- and performance5 but that this lin* is indirect5 throu h the apparent impact on employee commitment5 6uality and flexibility4 <atterson 3 collea ues :'##7; in a maDor study from Sheffield5 identified a positive relationship between employee attitudes5 or anisational culture5 H.- and company performance5 concludin that employee commitment and a satisfied wor*force are essential to improvin performance4 1wo hi hly si nificant areas of H. practice were seen as: the Human capital and performance 16 ac6uisition and development of employee s*ills :recruitment5 selection5 induction and performance appraisals;+ and Dob desi n :s*ill flexibility5 Dob responsibility5 team= wor*in ;4

Difficulties with the link between human capital and performance

1here are a number of problems with assertin a lin*a e between human capital and human resource initiatives and or anisational performance4 '4 .everse causation4 ,o human capital processes lead to increased performance5 or is the alternative explanation e6ually as li*ely: that hi her performin firms will have more resources to invest in better human capital mana ementL If the causal lin* is to be established5 there is a need to specify the intervenin variables between human capital mana ement and performance4 %1he fact that profit sharin is associated with hi her profits can be interpreted in at least two ways: profit sharin causes hi her profits5 or firms with hi her profits are more li*ely to implement profit sharin 4 However5 if it can be demonstrated that employees in firms with profit sharin have different attitudes and behaviours than those in forms without profit sharin and that these differences also translate into different levels of customer satisfaction5 productivity5 speed to mar*et and so forth5 then researchers can be in to have more confidence in the causal model& :>ec*er 3 @erhart '##6:7#3;4 /4 2 ood deal of wor* has emphasised ali nment of human resources to or anisational strate y at a very hi h de ree of abstraction :e4 4 to a cost leadership strate y5 or a differentiated strate y;4 >ut the firm=specific contexts and contin encies surroundin the or anisation will ma*e H. ali nment much more complex and idiosyncratic5 and render eneralisations about H. and human capital problematic :@uest '##75 >ec*er and @erhart '##6;4 34 If human capital is5 in a real sense5 %best practice95 why is it that some or anisations lac* human capital processes and yet are successful in their purposeL Or5 put another way5 why doesn9t everyone adopt human capital principlesL 2 simple answer would be that such firms may be successful now5 but the possibility of their sustainin their success is reduced by their failure to implement human capital concepts4 1his is an empirical 6uestion5 however5 and we a ree with >ec*er 3 @erhart :'##6; who state that %more effort should be devoted to findin out what mana ers are thin*in when they ma*e the Human capital and performance 17 decisions they do4 1his su ests a need for deeper 6ualitative research to complement the lar e scale5 multiple firm studies that are available9 :'##6:7"6; )4 1he ran e of desi ns and research approaches in the studies raises problems in terms of developin a coherent body of *nowled e4 1here are a number of problems here4 1he first is the low level of overlap between the H. measures included by researchers into studies5 which ma*es the cumulation of research in the field difficult4 Second5 practices that are common across studies are often measured in different ways4 Aor example5 %one study may loo* at whether a business has performance pay :i4e4 yes or no; while another measures the proportion of employees covered by such practices5 and another loo*s at how much is typically paid& :.ichardson and 1hompson '###:'7;4 1hird5 the problem of how to measure business performance varies widely5 with financial and accountin based measures5 time periods5 subDective and obDective measures5 intermediate outcomes such as commitment and flexibility5 amon others5 bein used in varyin ways4 Aourth5 the unit of analysis differs widely4 In some cases the unit of analysis is or anisational level5 in others5 business unit5 and5 less often5 at the facility level4 Aifth5 the research method varies from cross sectional surveys5 either in sin le industry or multi=industry5 to case studies in multiple firms either in sin le or multi=industry settin s5 lon itudinal surveys5 and mixed methods incorporatin elements of the above4

Measuring human capital

Arom the fore oin discussion5 we can a ree with ,elaney 3 Huselid :'##6; who state that there is compellin evidence for a lin*a e between stron people mana ement and

performance4 >ut how is human capital to be measuredL -easurement is obviously important to au e the impact of human capital interventions and address areas for improvement5 but in this field5 measurement is a problematic issue4 1he process identified by some academics :e4 4 @uest et al /0005 <atterson et al '##7; as well as a number of consultin firms5 is to specify the *ey human capital dimensions and assess their characteristics4 It is then essential to measure these practices in terms of outcomes4 1hese outcomes differ alon a number of5 by now5 familiar cate ories: either :i; financial measures+ :ii; measures of output or oods and services = units produced5 customers served5 number of errors5 customer satisfaction; or :iii; measures of time = lateness5 absence etc4 :Goc*e 3 Gatham '##75 @uest et al /000;4 Human capital and performance 18 @uest et al&s :/000; preference is to adopt a sta*eholder perspective5 which %would ive some emphasis to performance outcomes of concern to the ran e of sta*eholders& :/000:);4 1hese outcomes5 @uest ar ues5 %should reflect employee attitudes and behaviour5 internal performance5 such as productivity and 6uality of oods and services+ and external indicators5 such as sales and financial performance4 In other words5 if the research is to uide policy and practice5 we need to collect a number of potentially related outcomes that extend beyond a narrow definition of business performance based on Dust financial indicators& :/000:);4 In the literature5 research has tended to focus5 in terms of outputs5 on employee turnover5 productivity5 and financial performance :,elaney 3 Huselid '##6;4 1he difficulty in relyin on Dust firm performance is that5 apart from i norin important other measures Dust outlined5 it may be that within or anisations5 business units have different obDectives4 Some may be focused on mar*et share5 others on profit5 for example5 and the H. practices may not be the same in both4 If research is at an or anisational level5 rather than at a business unit level5 such differences may reflect in a poor lin*a e between human capital and unit performance :>ec*er 3 @erhart '##6;4 @uest et al :/000; also point to the problems in variations of accountin practices between countries5 which may render comparisons in financial performance problematic4 1he adoption of a sta*eholder perspective reflects the concern to have multiple measures of performance outcome4 1his perspective is supported by the popularity of the %balanced scorecard& concept :!aplan 3 Forton '##3;5 which is intended to wei h the interests of various sta*eholders4 2ccordin to !aplan 3 Forton5 attention should be iven not Dust to traditional financial measures5 but to people5 processes and customers4 1he measures for people are more difficult to specify than say the financial aspects5 but (lrich :'##7; ar ues for three cate ories: productivity5 people5 and people and process4 Huselid :/003; believes that the %people& box in !aplan and Forton&s ori inal formulations does not say enou h about what is re6uired for H.4 He and collea ues propose further nested scorecards5 includin a wor*force scorecard that is focused on wor*force %behaviours and deliverables& and then an H. scorecard5 which addresses the issue of the infrastructure needed to deliver the deliverables4 (tility analysis remains a techni6ue that continues to be advocated :>ec*er and Huselid '##/5 >ec*er5 Huselid and (lrich /000;4 1he wor* of AitI=8nI :'#"05 '#"); in creatin a database of a wide ran e of H. practices at the Sarato a Institute provides a benchmar* for Human capital and performance 19 or anisations in terms of industry avera es and trends and allows mana ers to assess their own practices in terms of cost and utility4 1he results of a $onference >oard :/003; survey into human capital measurement showed that many H. professionals were developin human capital metrics :see 1able /; but this activity was often conducted in isolation5 with or anisations choosin not to

collaborate with other firms or consultancies5 or with their own or anisation&s finance or strate y collea ues4 7here H. professionals did use external benchmar*s5 they were often inappropriate internally5 and they did not tie up the metrics to the business oals4

Reporting human capital measures

1he reportin of intan ibles such as human capital is difficult4 2ccordin to Huselid5 this is because of two maDor issues: first5 there is no common framewor* for reportin that oes beyond historical measures :e4 4 cost of selection5 or trainin ; to %more detailed information on wor*force 6uality& :/003;4 Second5 many firms lac* databases and audited information that can ive stron and relevant information to investors4 ,evelopin a consistent and coherent internal H. architecture on human capital measurement is a necessary condition for effective external reportin 4 $ompanies usually do have a wealth of human capital data in some shape or form5 and some even have developed systems in place to measure its 6uality and impact4 >ut5 as the $onference >oard concludes: %most are reluctant to report it publicly4 2lthou h the primary motivation is to contribute to the bottom line5 many companies do not wish to communicate the results of H$ measurement to investors& :/003:7;4 Fevertheless5 the report asserts that the measures which are most fre6uently reported are: the percenta e of employees in stoc* plans revenue per employee avera e pay trainin expenditures compensation4 1he three factors that explain why companies do not report more on human capital are :i; the fear of competitors E anxiety over whether human capital information is competitively sensitive+ :ii; the fear of unions or employees5 that is5 concern that providin too much Human capital and performance 20 information may restrict the or anisation&s flexibility :and worries over le al issues arisin ;+ and :iii; a concern for practical difficulties of collectin human capital information to present for reportin 5 and whether investors will understand it anyway4

Conclusions

2 rowin number of studies have attempted to show the lin* between human resources and performance4 7e believe that thou h the case is not waterti ht5 due to a number of methodolo ical reasons5 the wei ht of evidence is be innin to loo* compellin 4 2n important findin of this research is that both contin ency and best practice models can complement each other to create the conditions for effective human capital mana ement4 1hat is5 the adoption of such hi h performance practices as incentive=based pay or selective staffin is part of buildin an H. architecture4 1he details of how these practices become effective within the or anisation then becomes a matter of ali nin these broad principles to the strate y and the context of the company4 1here is a now a rowin body of wor* :e4 4 >ec*er 3 @erhart '##65 Koundt et al '##65 @uest et al /000; that ar ues for a conver ence between the two views4 7e believe that reater understandin as to how these two approaches come to ether will enhance our *nowled e of how human capital mana ement can lead to improved competitiveness4 1here are several lists for hi h performance wor* practices5 or %best practice& H.5 each with varyin content and with different ways of operationalisin the individual H. activities4 >ut at their heart5 most studies emphasise enhancin the s*ill base of employees throu h selective staffin 5 comprehensive trainin and broad developmental activity5 as well as encoura in employees throu h empowerment5 participative problem solvin and teamwor* and roup based incentives4

1he measurement of human capital remains an area where little commonality can be found4 <erhaps this reflects the sheer number of contin encies facin or anisations and the idiosyncrasies inherent in specific firm contexts4 1here is a reement5 however5 on the point that Dust relyin on financial measures of performance is li*ely to result in a hi hly partial evaluation4 2 sta*eholder view or balanced scorecard approach is seen as most appropriate to capture the complexity of human capital activity4 (lrich :'##"; ar ues that human resources5 both as labour and as a business function5 have traditionally been viewed as a cost to be minimised4 2t best5 human resources are viewed as Human capital and performance 21 contributin to the efficiency of the or anisation5 but not explicitly as a source of value creation4 1he rise of human capital mana ement5 alon side its relatives the resource= based view and strate ic human resource mana ement5 has seen this view chan e dramatically4 However5 the evidence5 at least from the (S5 is that or anisations are reluctant to report on their human capital activities4 If human capital really is at the centre of competitive advanta e5 investors may wish to see rather more disclosure in the future4 Human capital and performance 22

Table 1. Best practices in Human Resources

8pstein 3 Areund :'#"); 2rthur :'##/; <feffer :'##); ,elany5 Gewin 3 Ichiows*i :'#"#; Huselid :'##5; -ac,uffie :'##5; Cob enlar ement Cob rotation Cob desi n Aormal trainin <ersonalised wor* hours Su estion systems Muality circles Salary for blue collar wor*ers 2ttitude surveys <roduction teams GabourJmana ement committees @roup productivity incentives <rofit sharin Stoc* purchase plan >roadly defined Dobs 8mployee participation Aormal dispute resolution Information sharin Hi hly s*illed wor*ers Self=mana ed teams 8xtensive s*ills trainin 8xtensive benefits Hi h wa es Salaried wor*ers Stoc* ownership 8mployment security Selective recruitin

Hi h wa es Incentive compensation 8mployee ownership Information sharin <articipation 8mpowerment Cob redesi nJteams 1rainin and s*ill development $ross=utilisation $ross=trainin Symbolic e alitarianism 7a e compression <romotion from within <ersonnel selection <erformance appraisal Incentive compensation Cob desi n @rievance procedures Information sharin 2ttitude assessment GabourJmana ement participation .ecruitin intensity 1rainin intensity 1rainin hours <romotion criteria :seniority v merit; 7or* teams <roblem Esolvin roups 8mployee su estions Cob rotation ,ecentralisation .ecruitment and hirin $ontin ent compensation Status differentiation 1rainin of new employees 1rainin of experienced employees :source: Koundt et al '##6;

Table 2. Human capital measures Human capital activities <ossible measurements .ecruitment 1ime5 cost5 6uantity5 6uality5 meetin strate ic criteria .etentionJturnover .easons why employees leave4 8mployee attitudeJen a ement 2ttitude5 en a ement and commitment surveys $ompensation <ay level5 and differentials5 and e6uity assessment5 customer satisfaction5 employee satisfaction5 diversity $ompetenciesJtrainin

-easurin competency levels5 s*ills inventory5 trac*in competencies and trainin investments 7or*force profile a e5 diversity5 promotion rate5 participation in *nowled e mana ement activities <roductivity measures revenue per employee5 operatin cost per employee5 real added value per employee
(Adapted from Conference Board 2003) Human capital and performance 23

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2lexander5 .424 3 >arric*5 -4.4 '#"74 8stimatin the standard error of proDected dollar ains in utility analysis4 Cournal of 2pplied <sycholo y5 7/: )75=)7#4 2rnold5 H4C4 3 Aeldman5 ,4$4 '#"/4 2 multivariate analysis of the determinates of turnover4 Cournal of 2pplied <sycholo y5 67: 350=3604 2rthur5 C4>4 '##/4 1he lin* between business strate y and industrial relations systems in 2merican steel minimills4 Industrial and Gabor .elations .eview5 )5:)""=5064 2rthur5 C4>4 '##)4 8ffects of human resource systems in manufacturin performance and turnover4 2cademy of -ana ement Cournal5 37:670=6"74 >arney5 C4 '##'4 Airm resources and sustained competitive advanta e4 Cournal of -ana ement5 '7:##='/04 >arney5 C4 '##54 Goo*in inside for competitive advanta e4 2cademy of -ana ement 8xecutive5 #:);: )#=6'4 >artel5 24<4 '##)4 <roductivity ains from the implementation of employee trainin pro rams4 Industrial .elations5 33: )''=)/54 >aysin er5 >4,4 3 -obley5 74H4 '#"34 8mployee turnover: Individual and or anisational analysis4 In .owland5 !474 3 Aerris5 @4.4 :8ds4; .esearch in personel and human resource mana ement4 @reenwich5 $1: C2I <ress5 ?ol ': /6#=3'#4 >ec*er5 >45 3 @erhart5 >4 '##64 1he impact of human resource mana ement on or anisational performance: <ro ress and prospects4 2cademy of -ana ement Cournal5 3#:77#="0'4 >ec*er5 >484 3 Huselid5 -424 '##/4 ,irect estimates of S,y and the implications for utility analysis4 Cournal of 2pplied <sycholo y5 77: //7=/334 >ec*er5 >4845 Huselid5 -4245 (lrich5 ,4 /00'4 1he H. scorecard: Gin*in people5 strate y and performance4 >oston5 -2: Harvard >usiness School <ress4 >ec*er5 @4S4 '#6)4 Human capital4 Few Kor*: Fational >ureau of 8conomic .esearch Human capital and performance 24 >ec*er5 @4S4 '#764 1he economic approach to human behaviour4 $hica o: (niversity of $hica o <ress4 >oxall5 <4A4 '##64 1he strate ic H.- debate and the resource=based view of the firm4 Human .esource -ana ement Cournal5 6:3;:5#=754 >oudreau5 C474 '##'4 (tility analysis in human resource mana ement decisions4 In -4,4 ,unnette 3 G4-4 Hou h :8ds4; Handboo* of industrial and or anisational psycholo y5 vol /5 6/'=7)54 <alo 2lto5 $2: $onsultin <sycholo ists <ress4 >oudreau5 C474 3 .amstad5 <4-4 '##74 -easurin intellectual capital: Gearnin from financial history4 Human .esource -ana ement5 36: 3)3=3564 $ascio5 74A4 '##'4 $ostin human resources: 1he financial impact of behaviour in or anisations4 >oston: <7S=!ent4 $oleman5 C4S4 '#""4 Social capital in the creation of human capital4 2merican Cournal of Sociolo y5 #): s#5=s'/04 $ollins5 C45 3 <orras5 C4 '##)4 >uilt to last: Successful habits of visionary companies4 Few Kor*: Harper >usiness4

$onference >oard /00/4 ?aluin human capital: 1he ris*s and opportunities of human capital measurement and reportin 4 .esearch .eport N'3'6=0/=..4 $utcher=@ershenfeld5 C4$4 '##'4 1he impact on economic performance of a transformation in wor*place relations4 Industrial and Gabor .elations .eview5 )):/)'= /604 ,elaney5 C484 3 Huselid5 -424 '##64 1he impact of human resource mana ement practices on perceptions of or anisational performance4 2cademy of -ana ement Cournal5 3#:#)#=#6#4 ,elaney5 Gewin5 and Ichniows*i5 $4 '#""4 Human resource mana ement policies and practices in 2merican firms4 Few Kor*: Industrial .elations .esearch $entre5 @raduate School of $olumbia (niversity4 Human capital and performance 25 ,elaney5 Gewin5 and Ichniows*i5 $4 '#"#4 H. policies and practices in 2merican firms4 (S ,epartment of Gabor -ana ement .elations and $o=operative pro rams5 >G-. '735 7ashin ton ,$: (S @overnment <rintin Office4 ,elery5 C45 3 ,oty4 ,4H4 '##64 -odes of theorisin in strate ic human resource mana ement: tests of universalistic5 contin ency and confi urational performance predictors4 2cademy of -ana ement Cournal5 3#:"0/="354 ,enison5 84A4 '#6/4 1he sources of economic rowth in the (nited States and the alternative before us4 $ommittee for 8conomic ,evelopment5 Few Kor*4 ,enison5 84A4 '#674 7hy rowth rates differ4 1he >roo*in s Institute5 Few Kor*4 ,ess5 @4,4 3 <ic*en5 C4$4 '###4 >eyond productivity: How leadin companies achieve superior performance by levera in their human capital4 Few Kor*: 2merican -ana ement 2ssociation4 ,ieric*x5 I45 3 $ool5 !4 '#"#4 2sset stoc* accumulation and sustainability of competitive advanta e4 -ana ement Science5 35:'50)='5''4 8pstein5 843 Areund4 74$4 '#")4 <eople and productivity: 1he Few Kor* Stoc* 8xchan e uide to financial incentives and the 6uality of wor* life4 Few Kor*: Irwin4 Aer uson5 ,4H4 3 >er er5 A4 '#"54 8mployees as assets: 2 fresh approach to human resource accountin 4 1he $ornell H.2 Muarterly4 /5:);: /)=/#4 AitI=8nI5 C4 '#")4 How to measure human resources mana ement4 Few Kor*: -c@raw= Hill4 AitI=8nI5 C4 '##04 Human value mana ement: 1he value addin human resource mana ement strate y for the '##0s4 San Arancisco5 $2: Cossey=>ass4 AlamholtI5 84@4 '#7)4 Human resource accountin 4 8ncino5 $2: ,ic*inson4 AlamholtI5 84@4 '#"54 Human resource accountin 4 San Arancisco: Cossey=>ass4 Ariedman5 24 3 Gev5 >4 '#7)4 2 surro ate measure of the firm9s investment in human resources4 Cournal of 2ccountin .esearch5 '/: /35=/504 Human capital and performance 26 @aravan5 14F45 -orley5 -45 @unni le5 <4 3 $ollins5 84 /00'4 Human capital accumulation: the role of human resource development4 Cournal of 8uropean Industrial 1rainin 5 /5:)"=6"4 @erhart5 >4 3 -il*owich5 @414 '##04 Or anisational differences in mana erial compensation and firm performance4 2cademy of -ana ement Cournal5 33:663=6#'4 @rant5 .4-4 '##64 1owards a *nowled e=based theory of the firm4 Strate ic -ana ement Cournal5 '7 :7inter Special Issue;5 '0"='//4 @ratton4 G4 3 @hoshal5 S4 /0034 -ana in personal human capital: Few ethos for the %volunteer& employee4 8uropean -ana ement Cournal5 /':'='04 @uest5 ,484 '##74 Human resource mana ement and performance: 2 review and research a enda4 International Cournal of Human .esource -ana ement5 ": /65=/764

@uest5 ,4845 -ichie5 C5 Sheehan5 -5 $onway5 F4 3 -etochi5 -4 /0004 8ffective people mana ement: Initial findin s of the Auture of 7or* study4 Gondon: $hartered Institute of <ersonnel and ,evelopment4 @uest5 ,4845 -ichie5 C5 $onway5 F 3 Sheehan5 -4 /0034 Human resource mana ement and corporate performance in the (!4 >ritish Cournal of Industrial .elations5 )':/#'= 3')4 Hamel5 @4 3 <rahalad5 $4!4 '##)4 $ompetin for the future4 >oston: H>S <ress4 Hanusche*5 84243 !im*o5 ,4,4 /0004 Schoolin 5 labor force 6uality and the rowth of nations4 2merican 8conomic .eview5 #0: ''")=/00# Harvey5 -4@4 3 Gusch5 .4A4 '###4 >alancin the intellectual capital boo*s: intan ible liabilities4 8uropean -ana ement Cournal5 '7:/#=)'4 Hewlett5 .4 /00/4 Inte ratin human capital concepts in productivity and rowth topics4 Cournal of -ana ement .esearch5 /: //=374 Huselid5 -424 '##54 1he impact of human resource mana ement practices on turnover5 productivity and corporate financial performance4 2cademy of -ana ement Cournal5 3":635=6704 Human capital and performance 27 Huselid5 -424 /0034 <resentation to ,1I 2ccountin for <eople seminar5 Gondon5 Culy '"th4 Huselid5 -424 3 >ec*er5 >484 '##54 Hi h performance wor* systems and or anisational performance4 <aper presented at the annual meetin of the 2cademy of -ana ement5 ?ancouver4 Huselid5 -4245 Cac*son5 S484 3 Schuler5 .4S4 '##74 1echnical and strate ic human resource mana ement effectiveness as determinants of firm performance4 2cademy of -ana ement Cournal5 3#5 #)#=#6#4 Ichniows*i5 $45 Shaw5 !45 3 <rennushi5 @4 '##74 1he effects of human resource mana ement practices on productivity+ a study of steel finishin lines4 1he 2merican 8conomic .eview5 "75 /#'=3'34 Itami5 H4 '#"74 -obilisin invisible assets4 >oston: H>S <ress4 Cac*son5 S484 3 Schuler5 .4S4 3 .ivero5 @4 '#"#4 Or anisational characteristics as predictors of personnel practices4 <ersonnel <sycholo y5 )/: 7/7=7"64 !aplan5 .4S4 3 Forton5 ,4<4 '##/4 1he balanced scorecard: -easures that drive performance4 Harvard >usiness .eview5 70:';: 7'=7#4 !andel5 84 3 GaIear5 84<4 '##/4 <eer pressure and partnerships4 Cournal of <olitical 8conomy5 '00: "0'="'74 !atI5 H4$45 !ochan5 14245 3 7eber5 -4.4 '#"54 2ssessin the effects of industrial relations systems and efforts to improve the 6uality of wor*in life on or anisational effectiveness4 2cademy of -ana ement Cournal5 /":50#=5/64 !atI5 H4$45 !ochan51425 3 !eefe5C4 '#"74 Industrial relations andproductivity in the (S automobile industry4 7ashin ton5 ,$: >roo*in s Institute4 Gau5 24H4 3 Gau5 H4 '#7"4 Some proposed approaches for writin off capitalised human resource assets4 Cournal of 2ccountin .esearch5 '6: "0='0/4 Geonard=>arton5 ,4 '##54 7ellsprin s of *nowled e4 >oston: H>S <ress4 Human capital and performance 28 Gepa*5 ,4<4 3 Snell5 S424 '###4 1he human resource architecture: 1owards a theory of human capital allocation and development4 2cademy of -ana ement .eview5 /):3'=)"4 Gev5 >4 3 SchwartI5 24 '#7)4 On the use of economic concepts of human capital in financial statements4 2ccountin .eview5 7': '03=''/4 Gevine5 ,4I4 '##54 .einventin the wor*place: How businesses and employees can both win4 7ashin ton ,$: >roo*in s Institution4

Goc*e5 8424 3 Gatham5 @4<4 '##04 7or* motivation: 1he hi h performance cycle4 In !leinbec*5 (45 Muast5 H45 1hierry5 H4 3 Hac*er5 H4 :8ds4; 7or* motivation4 Hillsdale: Gawrence 8rlbaum4 -ac,uffie5 C4<4 '##54 Human resource bundles and manufacturin performance: Alexible production systems in the world auto industry4 Industrial .elations and Gabor .eview5 )": '#7=//'4 -aurpin 5 G4-4 /00/4 Human capital and firm performance: (nderstandin the impact of employee turnover on competitive advanta e4 <roceedin s of the 2cademy of -ana ement $onference5 ,enver4 -iles5 .484 3 Snow5 $4$4 '#7"4 Or anisational strate y5 structure5 and process4 Few Kor*: -c@raw=Hill4 -incer5 C4 '#7)4 Schoolin 5 experience and earnin s4 F>8.5 Few Kor*: $olumbia (niversity <ress4 -orse5 74 '#734 1oward a model for human resource valuation: 2 comment4 2ccountin .eview5 50:'3'=')04 Fahapiet5 C4 3 @hoshal5 S4 '##"4 Social capital5 intellectual capital and the or anisational advanta e4 2cademy of -ana ement .eview5 /3:/)/=/664 Ferdrum5 G4 3 8ri*son514 /00'4 Intellectual capital: 2 human capital perspective4 Cournal of Intellectual $apital5 /: '/7='354 Human capital and performance 29 F*omo5 S4-4 '#"74 Human resource plannin and or anisational performance: 2n exploratory analysis4 Strate ic -ana ement Cournal5 ": 3"7=3#/4 Fona*a5 I4 '##)4 2 dynamic theory of or anisational *nowled e creation4 Or anisation Science5 5: ')=3"4 Or anisation for 8conomic $o=operation and ,evelopment :O8$,; :'###;4 -easurin and reportin intellectual capital: 8xperience5 issues5 and prospects E an International symposium4 Orton5 C4,4 3 7eic*5 !484 '##04 Goosely coupled systems4 2 reconceptualisation4 2cademy of -ana ement .eview5 '5:/03=//34 Osterman5 <4 '#"74 $hoice of employment systems in internal labour mar*ets4 Industrial .elations5 /6 :';: )"=634 <atterson5 -45 7est5 -45 Gawthom5 .45 3 Fic*ell5 S4 '##74 1he impact of people mana ement practices on business performance4 Issues in <eople -ana ement4 Gondon: Institute of <ersonnel and ,evelopment4 <enrose5 8414 '#5#4 1he theory of the rowth of the firm4 Few Kor*: 7iley4 <errow5 $4 '#")4 Formal accidents: Givin with hi h=ris* technolo ies4 Few Kor*: >asic >oo*s4 <eters5 14 3 7aterman5 .4 '#"/4 In search of excellence4 Few Kor*: Harper 3 .ow4 <feffer5 C4 '##)4 $ompetitive advanta e throu h people4 >oston: H>S <ress4 <feffer5 C4 '##"4 1he human e6uation4 >oston: H>S <ress4 <feffer5 C 3 Sutton5 .4I4'###4 1he *nowin =doin ap: How smart companies turn *nowled e into action4 >oston: Harvard >usiness School <ress4 <olanyi5 -4 '#6/4 <ersonal *nowled e: 1owards a post=critical philosophy4 Few Kor*: Harper 1orchboo*s4 Human capital and performance 30 <olanyi5 -4 '#674 1he tacit dimension4 Gondon: .outled e >oo*s4 <sacharopoulos5 @4 '#734 .eturns to education: 2n international comparison4 Cossey= >ass5 8lsevier: Few Kor*4 .asto i5 <4F4 /0004 Sustainin enterprise competitiveness E is human capital the answerL Human Systems -ana ement5 '#: '#3=/034

.ichardson5 .4 3 1hompson5 -4 '###4 1he impact of people mana ement practices on business performance: 2 literature review4 Gondon: Institute of <ersonnel and ,evelopment4 .umelt5 .4 '#")4 1owards a strate ic theory of the firm4 In .4Gamb :8d4; $ompetitive strate ic mana ement :556=570;4 8n lewood $liffs: <rentice=Hall4 .ussell5 C4S45 1erbor 5 C4.4 3 <owers5 -4G4 '#"54 Or anisational performance and or anisational level trainin and support4 <ersonnel <sycholo y5 3": ")#="634 Scarpello5 ? 3 1hee*e5 H424 '#"#4 Human resource accountin : 2 measured criti6ue4 Cournal of 2ccountin Giterature4 ":/65=/"04 Schmidt5 A4G45 Hunter5 C4845 -c!enIie5 .4$4 3 -uldrow5 1474 '#7#4 Impact of valid selection procedures on wor*=force productivity4 Cournal of 2pplied <sycholo y5 6): 60#=6/64 Schuler5 .4S4 3 Cac*son5 S484 '#"74 Gin*in competitive advanta e with human resource mana ement practices4 2cademy of -ana ement 8xecutive5 ': /07=/'#4 SchultI5 1474 '#7'4 Investments in human capital4 Few Kor*: -acmillan4 Sheridan5 C484 '##/4 Or anisational culture and employee retention4 2cademy of -ana ement Cournal5 35: '036='0564 Snell5 S4245 Koundt5 -4245 3 7ri ht5 <4-4 '##64 8stablishin a framewor* for research in strate ic human resource mana ement4 -er in resource theory and or anisational learnin 4 In @4Aerris :8d4; .esearch in personnel and human resource mana ement :?4')4 pp 6'=#0;4 Stewart5 1424 '##64 Human resources bites bac*4 Aortune5 -ay5 '754 Human capital and performance 31 Steffy5 >4,4 3 -aurer5 S4,4 '#""4 $onceptualisin and measurin the economic effectiveness of human resource activities4 2cademy of -ana ement .eview5 '3: /7'= /"64 Sveiby5 !484 '##74 1he new or anisational wealth: -ana in and measurin *nowled e= based assets4 San Arancisco: >erret=!oehler4 SIulans*i5 @4 '##64 8xplorin internal stic*iness: impediments to the transfer of best practice within the firm4 Strate ic -ana ement Cournal5 '7 :7inter Special Issue; /7=)34 1erpstra5 ,484 3 .oIell5 84C4 '##34 1he relationship of staffin practices to or anisational level measures of performance4 <ersonnel <sycholo y5 )6: /7=)"4 (lrich5 ,4 '##74 -easurin human resources: 2n overview of practice and a prescription for results4 Human .esource -ana ement5 36: 303=3/04 (lrich5 ,4 '##64 2 new mandate for human resources4 Harvard >usiness .eview5 Can= Aeb4 (lrich5 ,4 3 Ga*e5 ,4 '##04 Or anisational capability: $ompetin from the insideJout4 Few Kor*: 7iley4 (lrich5 ,45 @eller5 24 3 ,eSouIa5 @4 '#")4 2 strate y5 structure5 human resource database: O2SIS4 Human .esource -ana ement5 /3: 77=#04 ?en*atraman5 F4 '#"#4 1he concept of fit in strate y research4 1oward a verbal and statistical correspondence4 2cademy of -ana ement .eview5 '):)/3=)))4 7a ner5 C424 '##)4 <articipation9s effect on performance and satisfaction: 2 reconsideration of research evidence4 2cademy of -ana ement .eview5 '#: 3'/=3304 7alton5 .484 '#"54 Arom control to commitment in the wor*place Harvard >usiness .eview5 63: 77=")4 7eitIman5 -4G4 3 !ruse5 ,4G4 '##04 <rofit sharin and productivity4 In 24S4 >linder :8d4; <ayin for productivity: #5=')'4 7ashin ton: >roo*in s Institution4 7ood5 S4 '##64 Hi h commitment mana ement and or anisation in the (!4 1he International Cournal of Human .esource -ana ement5 6: )'=5"4 Human capital and performance 32

7ood5 S4 3 2lbanese5 -4 '##54 $an we spea* of a hi h commitment mana ement on the shop floorL Cournal of -ana ement Studies4 30:/'5=/)74 7ri ht5 <4-45 ,unford5 >4>45 3 Snell5 S424 /00'4 Human resources and the resource= based view of the firm4 Cournal of -ana ement5 /7: 70'=7/'4 7ri ht5 <4-4 3 -c-ahan5 @4$4 '##/4 1heoretical perspectives for human resource mana ement4 Cournal of -ana ement5 '":/#5=3/04 Keun 5 24 3 (lrich5 ,4 '##04 8ffective human resource practices for competitive advanta e: 2n empirical assessment of or anisations in transition4 In Fiehaus5 .4C4 3 <rice5 !4A4 :eds4; Human resource strate ies for or anisations in transition5 Few Kor*: <lenum5 3''=3/64 Koundt5 -4245 Snell5 S4245 ,ean5 C4745 Gepa*5 ,4<4 '##64 Human resource mana ement5 manufacturin strate y and firm performance4 2cademy of -ana ement Cournal5 3#:"36="664 Human capital and performance 33

Appendix: Selected studies on HR practices and organisational performance

Arthur, J.B. (1994)
1ype of study: cross sectional Sin le industry: 30 (S steel minimills H. measures: '0 variables E decentralisation5 participation5 eneral trainin 5 s*illed wor*ers5 level of supervision5 social events5 due process5 wa es5 benefits5 bonus55 percenta e unionised4 $lustered into two systems: control and commitment4 Outcome measures: manufacturin performance :labour efficiency5 scrap rate; and employee turnover4 $ontrols: firm a e5 firm siIe5 union status5 business strate y4 -ethod: .e ression Aindin s: $ommitment based H. systems associated with lower scrap rates and hi her labour efficiency than control=based systems4

MacDuffie, J. (1995)

1ype of study: cross sectional Sin le industry 6/ automotive assembly plants in '6 countries :volume plants; H. measures: H. policies :index of four items = hirin criteria5 incentive pay5 presence of status barriers and level of trainin ; <roduction or anisation measures: use of buffers :3 items; :e4 4 incomin and wor* in pro ress inventory;5 wor* systems :6 items E includin employment involvement :production=related su estions5 Dob rotation and 6uality tas*s;5 total automation5 production scale5 model mix complexity5 parts complexity5 production desi n a e4 Outcome measures: labour productivity :hours of actual effort to build a vehicle;5 6uality :consumer perceived5 defined as defects per '00 vehicles; $ontrols: total automation5 plant scale5 model mix complexity -ethod: hierarchical re ression Aindin s: Innovative H. practices affect performance not individually but as interrelated elements in an internally consistent H. system and these systems contribute most to plant productivity and 6uality when they are inte rated with manufacturin policies of a flexible production system4 Human capital and performance 34

Huselid, M.A. (1995)

1ype of study: cross sectional -ulti=industry #6" (S=owned firms with over '00 employees4

H. measures: Hi h performance wor* system scale4 '3 items elicited two factors :i; employee s*ills and or anisational structures E items: formal Dob desi n5 enhanced selectivity5 formal trainin 5 6uality of wor* pro ram5 6uality circles5 labour=mana ement teams5 information sharin pro rammes5 formal rievance procedures5 profit and ain= sharin plans5 enhanced communications5 :ii; 8mployee motivation E items: formal appraisal5 lin*ed to compensation5 merit in promotion decision rules4 Outcome measures: turnover5 productivity :lo of sales per employee;5 corporate financial performance E mar*et based measure 1obins& 65 and accountin based measure E ross rate of return on capital employed :@.218;4 $ontrols: firm siIe5 capital intensity5 firm and industry levels of union covera e5 industry concentration5 rowth in sales5 .3, intensity5 firm=specific ris*5 industry levels of profitability5 net sales and total assets4 -ethod: .e ression analysis Aindin s: Hi h performance wor* systems have an economically and statistically si nificant impact on both turnover5 productivity and corporate performance4 One standard deviation increase in H<7S is associated with a relative decrease of 7405H in turnover5 and on a per employee basis5 a O/750)) more in sales and O'"56)' and O35"') more in mar*et value and profits respectively4

Delaney, J.T. and Huselid, M.A. (1996)

1ype of study: cross sectional -ulti=industry: 7/7 or anisations H. measures: Staffin selectivity index :3 items;5 trainin index :3 items;5 incentive compensation :3 items;5 rievance procedure5 decentralised decision=ma*in 5 internal labour mar*et index :5 items;5 vertical hierarchy Outcome measures: <erceptual measures of or anisational performance assessin or anisational performance over the last three years relative to similar or anisations :on product 6uality5 customer satisfaction5 new product development; and on perceived product mar*et performance :profitability5 mar*et share; over three years relative to product mar*et competitors4 $ontrols: profitJnot=for=profit5 subsidiary5 number of employees5 form a e5 mar*et competition5 union pressure5 percenta e of mana ers4 -ethod: .e ression analysis Aindin s: <ro ressive H.- practices are positively related to perceptual measures of or anisational performance5 but does not support the assertion that complementarities amon H. measures enhance performance4 Human capital and performance 35

Youndt, M.A., Snell, S.A., Dean, J.W. and Lepak, D.P. (1996)

1ype of study: $ross sectional Sin le industry: #7 manufacturin plants H. measures: 2dministrative H. systems index :selection for manual and physical s*ills5 trainin 5 results based appraisal5 individual e6uity5 individual incentives and hourly pay;4 Human capital enhancin H. system index :selective staffin 5 selection for problem= solvin and technical s*ills5 development and behaviour base appraisal5 external e6uity5 roup incentives5 s*ill=based pay and salaried compensation;5 a ran e of manufacturin strate ies :cost5 6uality5 flexibility on delivery and scope; Outcome measures: Self=report measures of machine efficiency :e4 4 e6uipment utilisation5 scrap minimisation;+ customer ali nment :e4 4 product 6uality5 on=time delivery;+ and employee productivity :e4 4 employee morale; $ontrols: Or anisational siIe5 industry environment4 -ethod: .e ression analysis

Aindin s: H. system focused on human capital enhancement directly related to multiple dimensions of operational performance4 1his was predominately so for lin*s to a 6uality manufacturin strate y5 ivin broad support for contin ency perspective4

Delery, J.E. and Doty, D.H. (1996)

1ype of study: cross sectional Sin le industry E ban*in E '') ban*s H. measures: 7 H. practices4 Internal career opportunities :) items;5 formal and informal trainin :) items;5 appraisal :/ items;5 profit sharin :' item;5 employment security :) items;5 employee participation :) items;5 Dob description :) items;5 strate y :scale of six items measurin productJmar*et innovation; Outcome measures: two financial measures: return on avera e assets5 return on e6uity4 $ontrols: ban* siIe5 ban* a e5 part of a holdin company5 ban* district4 -ethod: Hierarchical re ression analysis Aindin s: 1hree individual H. practices E profit sharin 5 results=oriented appraisals and employment security had relatively stron universalistic relationships with important accountin measures of performance4 $ontin ency relationships between strate y and three H. practices E participation5 results oriented appraisals5 and internal career opportunities E explained a si nificant portion of the variation in the same performance measures4 Similarity to the mar*et=type employment systems was positively related to firm performance4 1he study demonstrates that universalistic5 contin ency and confi urational perspectives can explain si nificant levels of variation in financial performance4 Human capital and performance 36

Huselid, M.A. Jackson, S.E. and Schuler, R.S. (1997)

1ype of study: cross sectional -ulti=method E /#3 publicly held (S firms H. measures: strate ic H.- scale :" items includin teamwor*5 communications5 involvement5 enhancin 6uality and developin talent to serve business in future; 1echnical H.- scale :describes perceptions f how well the H. function performs activities E " items includin recruitment5 selection5 trainin 5 performance appraisals and compensation administration; <rofessional H.- capabilities scale :describes expertise and s*ill relevant to performin excellently within H. function = '' items >usiness related capabilities scale :describes the amount of business experience H. staff have had outside of H. function = 3 items; Outcome measures: employee productivity :net sales per employee5 ross rate of return on assets5 and profitability5 1obin&s 6; $ontrols: union covera e5 firm siIe5 capital intensity5 industry concentration5 sales rowth5 .3, expenditures5 stoc* price variability :beta; and firm industry4 -ethod: .e ression analysis Aindin s: Si nificant relationship between strate ic H.- and employee productivity5 cash flow5 and mar*et value4 Fo meanin ful relationship between technical H.- and firm performance4 On a per employee present value basis5 a one standard deviation increase in overall H.- effectiveness corresponds to an estimated increase in sales per employee of 54/4 per cent 5 a cash flow of '643 per cent5 and a mar*et value of 6H4

Ichniowski, C., Shaw, K., and Prennushi, G. (1997)

1ype of study: $ross sectional Sin le industry: 36 finishin lines in '7 (S owned companies matched with /'#0 monthly observations of productivity data4

H. measures: Identified " H. variables :incentive pay5 recruitment and selection5 employment security5 flexible Dob assi nment5 communications and labour relations; and identified ) distinctive combinations of H. practices4 System ) = traditional H.- :firms identified as havin no innovative practices with close supervision5 strict wor* rules5 narrow Dob responsibilities5 incentive based pay on 6uantity not on 6uality of output5 no wor* teams5 no information sharin and no formal trainin ;4 System 3 :similar to system ) except introduced innovative practices throu h wor*er involvement in teams and enhanced labour mana ement communication; System / :similar to three but also includes extensive s*ills trainin and hi h involvement in teams; System ' :incorporates innovative practices in all areas;4 Gines with this system have incentive pay plans5 profit sharin 5 extensive screenin of new employees5 recruitment5 hi h participation5 multiple teams5 formal team practice5 employment security5 Dob rotation5 hi h trainin 5 low trainin 5 information sharin 5 mana ers meet wor*ers re ularly5 meet with union5 unionised5 low rievance;4 Human capital and performance 37 Outcome measures: <roductivity :production line uptime E percenta e of scheduled operatin time that the line actually runs;+ 6uality :percenta e of total production that met the industry standards;4 $ontrols: $apital vinta e :when line was built;5 learnin curve effects5 technical line specifications5 periods of unusually hi h downtime5 6uality of steel input5 maintenance activity effects4 -ethod: OGS re ression Aindin s: Innovative H.- practices raise wor*er productivity and systems of innovative H.- practices had lar e effects on production wor*ers& performance4 7hile chan es in individual employment practices have little or no effect4

Patterson, M.G., West, M.A., Lawthorn,R., and Nickell, S. (1997)

1ype of study: Gon itudinal Sin le industry: 67 sin le site sin le product manufacturin firms with less than '000 employees4 H. measures: 2c6uisition and development of employee s*ills :selection5 induction5 trainin and use of appraisals;+ Dob desi n :s*ill flexibility5 Dob responsibility5 Dob variety and use of formal teams;+ 6uality improvement teams5 communication5 harmonisation5 comparative pay5 incentive compensation systems4 Outcome measures: Gabour productivity5 real profits per employee :profits before tax5 deflated by the producer price index of the industry and controllin for siIe of firm; -ethod: Mualitative and 6uantitative data collection5 multi=level4 Aindin s: H.- practices account for '# per cent of variation between companies in chan e in profitability and'" per cent of variation between companies in chan e of productivity4 1he ac6uisition and development of s*ills and Dob desi n are si nificant determinants of chan e in both productivity and profitability4

Guest, D.E., Michie, J, Sheehan, M, Conway, N. & Metochi, M (2000)

1ype of study: $ross sectional -ulti=industry: 6'0 firms above 50 employees H. measures: (se and covera e of H. practice :)" items in the followin sections;: recruitment and selection5 trainin and development5 appraisal5 financial flexibility5 concern with 6uality5 Dob desi n5 communication and consultation5 employment security and sin le=status and harmonisation4 Outcome measures: H. outcomes " items5 includin employee commitment5 flexibility5 and behaviour4

Human capital and performance 38 Human capital and performance 39 <erformance outcomes E labour turnover5 absenteeism5 perception of the firm&s financial results5 labour productivity5 6uality of productsJservices and effectiveness of H. practices compared with other or anisations in the same industry4 $ontrols: $omposition :part=time5 short=term employment;5 representation at the wor*place :trade union reco nition5 sin le unionJpartnership deals5 presence of a staff association; and redundancies -ethod: -atched sample of H. mana ers and $8Os4 .e ression4 Aindin s: 8ffective use of pro ressive H. practices is lin*ed to superior performance5 and also lin*ed to perceptions of positive employee attitudes and behaviour4

Guest, D.E., Michie, J, Conway, N & Sheehan, M (2003)

1ype of study: $ross sectional and lon itudinal -ulti=industry5 366 firms with over 50 employees H. measures: )" items on H.- coverin nine main areas: recruitment and selection5 trainin and development5 appraisal5 financial flexibility5 Dob desi n5 two=way communication5 employment security and the internal labour mar*et5 sin le=status and harmonisation5 and 6uality4 Outcome measures+ labour turnover5 absence and industrial conflict4 Gabour productivity :value of sales per employee; and financial performance :company&s profit per employee;4 $ontrols: sector5 trade union membership5 part of multinational5 presence of consultative committee5 staff committee5 and sin le union deal5 respondent holds H. position5 perceived importance of overall H. policy in terms of controllin for labour costs4 -ethod: 1elephone interview usin structured 6uestionnaire5 re ression4 Aindin s: (sin obDective measures of performance5 reater use of H. practices was associated with lower labour turnover and hi her profit per employee5 but showed no association with H. and productivity4 1here was a stron association between subDective estimates of H. and productivity and financial performance4 1he study supports the association between H.- and performance but does not show that H.- causes hi h performance4

Human resources
(rom )ikipe ia# the free encyclope ia

Jump to: nav !at on" #earc$ "HR" redirects here. For other uses, see HR (disambiguation). Human resources # an ncrea# n!%& 'roaden n! term t$at refer# to mana! n! ($uman cap ta%"( t$e peop%e of an or!an )at on* +$e f e%d $a# moved from a trad t ona%%& adm n #trat ve funct on to a #trate! c one t$at reco!n )e# t$e % n, 'et-een ta%ented and en!a!ed peop%e and or!an )at ona% #ucce##* +$e f e%d dra-# upon concept# deve%oped n .ndu#tr a%/0r!an )at ona% 1#&c$o%o!& and 2&#tem +$eor&* 3uman re#ource# $a# at %ea#t t-o re%ated nterpretat on# depend n! on conte4t* +$e or ! na% u#a!e der ve# from po% t ca% econom& and econom c#" -$ere t -a# trad t ona%%& ca%%ed %a'or" one of four

factor# of product on a%t$ou!$ t$ # per#pect ve # c$an! n! a# a funct on of ne- and on!o n! re#earc$ nto more #trate! c approac$e# at nat ona% %eve%#*516 +$ # f r#t u#a!e # u#ed more n term# of 7$uman re#ource# deve%opment7" and can !o 'e&ond 8u#t or!an )at on# to t$e %eve% of nat on# 526* +$e more trad t ona% u#a!e - t$ n corporat on# and 'u# ne##e# refer# to t$e nd v dua%# - t$ n a f rm or a!enc&" and to t$e port on of t$e or!an )at on t$at dea%# - t$ $ r n!" f r n!" tra n n!" and ot$er per#onne% ##ue#" t&p ca%%& referred to a# 7$uman re#ource# mana!ement7* +$ # art c%e addre##e# 'ot$ def n t on#*

#ontents
5$ de6

1 9eve%opment 2 :ana!ement o 2*1 ;e& funct on# 3 :odern ana%&# # 4 Controver#& o 4*1 <a'our mo' % t& o 4*2 1ercept on# 5 Corporate mana!ement 6 3uman re#ource# mana!ement trend# and nf%uence# o 6*1 :a8or trend# o 6*2 .nd v dua% re#pon#e# o 6*3 =rame-or, o 6*4 2tructure o 6*5 +ra n n! o 6*6 >ecru tment 7 :odern concept of $uman re#ource# 8 >eference#

-edit. Development
+$e o'8ect ve of $uman re#ource?#7 deve%opment (t$e ?#7 # mportant n $uman re#ource?#7 n t$at t under#core# nd v dua% t&/var a' % t&) # to fo#ter $uman re#ourcefu%ne## t$rou!$ en% !$tened and co$e# ve po% c e# n educat on" tra n n!" $ea%t$ and emp%o&ment at a%% %eve%#" from corporate to nat ona% (J*@*2*<a-rence 536 2000) 546

-edit. Management
3uman re#ource mana!ement7# o'8ect ve" on t$e ot$er $and" # to ma4 m )e t$e return on nve#tment from t$e or!an )at on7# $uman cap ta% and m n m )e f nanc a% r #,* .t # t$e re#pon# ' % t& of $uman re#ource mana!er# n a corporate conte4t to conduct t$e#e act v t e# n an effect ve" %e!a%" fa r" and con# #tent manner*

#edit$ %ey &unctions

3uman re#ource mana!ement #erve# t$e#e ,e& funct on#: 1* >ecru tment A 2e%ect on 2* +ra n n! and 9eve%opment (1eop%e or 0r!an )at on) 3* 1erformance @va%uat on and :ana!ement 4* 1romot on#/+ran#fer 5* >edundanc& 6* .ndu#tr a% and @mp%o&ee >e%at on# 7* >ecord ,eep n! of a%% per#ona% data* 8* Compen#at on" pen# on#" 'onu#e# etc n % a #on - t$ 1a&ro%% 9* Conf dent a% adv ce to nterna% 7cu#tomer#7 n re%at on to pro'%em# at -or, 10* Career deve%opment 11* Competenc& :app n! 12* + me mot on #tud& # re%ated to 3> =unct on 13* 1erformance Appra #a%

-edit. Modern anal"sis

:odern ana%&# # emp$a# )e# t$at $uman 'e n!# are not (commod t e#( or (re#ource#(" 'ut are creat ve and #oc a% 'e n!# n a product ve enterpr #e* +$e 2000 rev # on of .20 9001 n contra#t reBu re# to dent f& t$e proce##e#" t$e r #eBuence and nteract on" and to def ne and commun cate re#pon# ' % t e# and aut$or t e#* .n !enera%" $eav %& un on )ed nat on# #uc$ a# =rance and Cerman& $ave adopted and encoura!ed #uc$ 8o' de#cr pt on# e#pec a%%& - t$ n trade un on#* +$e .nternat ona% <a'our 0r!an )at on a%#o n 2001 dec ded to rev # t" and rev #e t# 1975 >ecommendat on 150 on 3uman >e#ource# 9eve%opment 556* 0ne v e- of t$e#e trend# # t$at a #tron! #oc a% con#en#u# on po% t ca% econom& and a !ood #oc a% -e%fare #&#tem fac % tate# %a'or mo' % t& and tend# to ma,e t$e ent re econom& more product ve" a# %a'or can deve%op #, %%# and e4per ence n var ou# -a&#" and move from one enterpr #e to anot$er - t$ % tt%e controver#& or d ff cu%t& n adapt n!* Anot$er v e- # t$at !overnment# #$ou%d 'ecome more a-are of t$e r nat ona% ro%e n fac % tat n! $uman re#ource# deve%opment acro## a%% #ector#*

-edit. #ontrovers"
#edit$ 'abour mobility
An mportant controver#& re!ard n! %a'or mo' % t& %%u#trate# t$e 'roader p$ %o#op$ ca% ##ue - t$ u#a!e of t$e p$ra#e ($uman re#ource#(: !overnment# of deve%op n! nat on# often re!ard deve%oped nat on# t$at encoura!e mm !rat on or (!ue#t -or,er#( a# appropr at n! $uman cap ta% t$at # r !$tfu%%& part of t$e deve%op n! nat on and reBu red to furt$er t# !ro-t$ a# a c v % )at on* +$e& ar!ue t$at t$ # appropr at on # # m %ar to co%on a% commod t& f at -$ere n a co%on ) n! @uropean po-er -ou%d def ne an ar' trar& pr ce for natura% re#ource#" e4tract n! -$ c$ d m n #$ed nat ona% natura% cap ta%*

+$e de'ate re!ard n! ($uman re#ource#( ver#u# $uman cap ta% t$u# n man& -a&# ec$oe# t$e de'ate re!ard n! natura% re#ource# ver#u# natura% cap ta%* 0ver t me t$e Dn ted Eat on# $ave come to more !enera%%& #upport t$e deve%op n! nat on#7 po nt of v e-" and $ave reBue#ted # !n f cant off#ett n! (fore !n a d( contr 'ut on# #o t$at a deve%op n! nat on %o# n! $uman cap ta% doe# not %o#e t$e capac t& to cont nue to tra n ne- peop%e n trade#" profe## on#" and t$e art#* An e4treme ver# on of t$ # v e- # t$at $ #tor ca% neBu t e# #uc$ a# Afr can #%aver& mu#t 'e compen#ated '& current deve%oped nat on#" -$ c$ 'enef ted from #to%en ($uman re#ource#( a# t$e& -ere deve%op n!* +$ # # an e4treme%& controver# a% v e-" 'ut t ec$oe# t$e !enera% t$eme of convert n! $uman cap ta% to ($uman re#ource#( and t$u# !reat%& d m n #$ n! t# va%ue to t$e $o#t #oc et&" *e* (Afr ca(" a# t # put to narro- m tat ve u#e a# (%a'or( n t$e u# n! #oc et&* .n a #er e# of report# of t$e DE 2ecretar&FCenera% to t$e Cenera% A##em'%& 5e*!* A/56/162 (2001)6" a 'road nterF#ectora% approac$ to deve%op n! $uman re#ourcefu%ne## 5#ee Dn ted Eat on# @4pert :eet n! on 3uman >e#ource# 9eve%opment* ?C$an! n! 1er#pect ve# on 3uman >e#ource# 9eve%opment* 2+/+C9/2@>*@/25* June 19946 566 $a# 'een out% ned a# a pr or t& for #oc oFeconom c deve%opment and part cu%ar%& ant Fpovert& #trate! e#* +$ # ca%%# for #trate! c and nte!rated pu'% c po% c e#" for e4amp%e n educat on" $ea%t$" and emp%o&ment #ector# t$at promote occupat ona% #, %%#" ,no-%ed!e and performance en$ancement (<a-rence" J*@*2*) 576*

#edit$ (erceptions
+erm# % ,e ($uman re#ource#( and ($uman cap ta%( ma& 'e perce ved a# n#u%t n! to peop%e* +$e& create t$e mpre## on t$at peop%e are mere%& commod t e#" % ,e off ce mac$ ne# or ve$ c%e#" de#p te a##urance# to t$e contrar&*

-edit. #orporate management

.n t$e ver& narro- conte4t of corporate ($uman re#ource#( mana!ement" t$ere # a contra#t n! pu%% to ref%ect and reBu re -or,p%ace d ver# t& t$at ec$oe# t$e d ver# t& of a !%o'a% cu#tomer 'a#e* =ore !n %an!ua!e and cu%ture #, %%#" n!enu t&" $umor" and carefu% % #ten n!" are e4amp%e# of tra t# t$at #uc$ pro!ram# t&p ca%%& reBu re* .t -ou%d appear t$at t$e#e ev dence a !enera% #$ ft t$rou!$ t$e $uman cap ta% po nt of v e- to an ac,no-%ed!ment t$at $uman 'e n!# do contr 'ute muc$ more to a product ve enterpr #e t$an (-or,(: t$e& 'r n! t$e r c$aracter" t$e r et$ c#" t$e r creat v t&" t$e r #oc a% connect on#" and n #ome ca#e# even t$e r pet# and c$ %dren" and a%ter t$e c$aracter of a -or,p%ace* +$e term corporate cu%ture # u#ed to c$aracter )e #uc$ proce##e# at t$e or!an )at ona% %eve%* +$e trad t ona% 'ut e4treme%& narro- conte4t of $ r n!" f r n!" and 8o' de#cr pt on # con# dered a 20t$ centur& anac$ron #m* :o#t corporate or!an )at on# t$at compete n t$e modern !%o'a% econom& $ave adopted a v e- of $uman cap ta% t$at m rror# t$e modern con#en#u# a# a'ove* 2ome of t$e#e" n turn" deprecate t$e term ($uman re#ource#( a#

u#e%e##* Get t$e term #urv ve#" and f re%ated to ?re#ourcefu%ne##7" $a# cont nued and emer! n! re%evance to pu'% c po% c&* .n !enera% t$e a'#tract on# of macroFeconom c# treat t t$ # -a& F a# t c$aracter )e# no mec$an #m# to repre#ent c$o ce or n!enu t&* 2o one nterpretat on # t$at (f rmF#pec f c $uman cap ta%( a# def ned n macroFeconom c# # t$e modern and correct def n t on of ($uman re#ource#( F and t$at t$ # # nadeBuate to repre#ent t$e contr 'ut on# of ($uman re#ource#( n an& modern t$eor& of po% t ca% econom&*

-edit. Human resources management trends and influences

.n or!an )at on#" t # mportant to determ ne 'ot$ current and future or!an #at ona% reBu rement# for 'ot$ core emp%o&ee# and t$e cont n!ent -or,force n term# of t$e r #, %%#/tec$n ca% a' % t e#" competenc e#" f%e4 ' % t& etc* +$e ana%&# # reBu re# con# derat on of t$e nterna% and e4terna% factor# t$at can $ave an effect on t$e re#ourc n!" deve%opment" mot vat on and retent on of emp%o&ee# and ot$er -or,er#* +$e e4terna% factor# are t$o#e %ar!e%& outF- t$ t$e contro% of t$e or!an )at on and nc%ude ##ue# #uc$ a# t$e econ m c c% mate" current and future trend# of t$e %a'or mar,et e*!* #, %%#" educat on %eve%" !overnment nve#tment nto ndu#tr e# etc* 0n t$e ot$er $and nterna% nf%uence# are 'road%& - t$ n t$e contro% of t$e or!an #at on to pred ct determ ne and mon tor" for e4amp%e t$e or!an )at ona% cu%ture underp nned '& mana!ement 'e$av our# (or #t&%e)" env ronmenta% c% mate and t$e approac$ to et$ ca% and corporate #oc a% re#pon# ' % t e#*

#edit$ Ma)or trends

.n order to ,no- t$e 'u# ne## env ronment n -$ c$ an& or!an )at on operate#" t$ree ma8or trend# #$ou%d 'e con# dered:

9emo!rap$ c# H t$e c$aracter #t c# of a popu%at on/-or,force" for e4amp%e" a!e" !ender or #oc a% c%a##* +$ # t&pe of trend ma& $ave an effect n re%at on to pen# on offer n!#" n#urance pac,a!e# etc* 9 ver# t& H t$e var at on - t$ n t$e popu%at on/-or,p%ace* C$an!e# n #oc et& no- mean t$at a %ar!er proport on of or!an )at on# are made up of ('a'&F 'oomer#( or o%der emp%o&ee# n compar #on to t$ rt& &ear# a!o* +rad t ona% advocate# of (-or,p%ace d ver# t&( # mp%& advocate an emp%o&ee 'a#e t$at # a m rror ref%ect on of t$e ma,eFup of #oc et& n#ofar a# race" !ender" #e4ua% or entat on" etc* 2, %%# and Bua% f cat on# H a# ndu#tr e# move from manua% to a more mana!er a% profe## on# #o doe# t$e need for more $ !$%& #, %%ed !raduate#* .f t$e mar,et # (t !$t( ( *e* not enou!$ #taff for t$e 8o'#)" emp%o&er# - %% $ave to compete for emp%o&ee# '& offer n! f nanc a% re-ard#" commun t& nve#tment" etc*

#edit$ *ndi+idual responses

.n re!ard to $o- nd v dua%# re#pond to t$e c$an!e# n a %a'our mar,et t$e fo%%o- n! #$ou%d 'e under#tood:

Ceo!rap$ ca% #pread H $o- far # t$e 8o' from t$e nd v dua%I +$e d #tance to trave% to -or, #$ou%d 'e n % ne - t$ t$e pa& offered '& t$e or!an )at on and t$e tran#portat on and nfra#tructure of t$e area - %% a%#o 'e an nf%uenc n! factor n dec d n! -$o - %% app%& for a po#t* 0ccupat ona% #tructure H t$e norm# and va%ue# of t$e d fferent career# - t$ n an or!an )at on* :a$one& 1989 deve%oped 3 d fferent t&pe# of occupat ona% #tructure name%& craft (%o&a%t& to t$e profe## on)" or!an )at on career (promot on t$rou!$ t$e f rm) and un#tructured (%o-er/un#, %%ed -or,er# -$o -or, -$en needed)* Cenerat ona% d fference Hd fferent a!e cate!or e# of emp%o&ee# $ave certa n c$aracter #t c#" for e4amp%e t$e r 'e$av or and t$e r e4pectat on# of t$e or!an )at on*

#edit$ "rame,ork
3uman >e#ource# 9eve%opment # a frame-or, for t$e e4pan# on of $uman cap ta% - t$ n an or!an )at on or ( n ne- approac$e#) a mun c pa% t&" re! on" or nat on* 3uman >e#ource# 9eve%opment # a com' nat on of tra n n! and educat on" n a 'road conte4t of adeBuate $ea%t$ and emp%o&ment po% c e#" t$at en#ure# t$e cont nua% mprovement and !ro-t$ of 'ot$ t$e nd v dua%" t$e or!an #at on" and t$e nat ona% $uman re#ourcefu%ne#* Adam 2m t$ #tate#" J+$e capac t e# of nd v dua%# depended on t$e r acce## to educat onK*586 3uman >e#ource# 9eve%opment # t$e med um t$at dr ve# t$e proce## 'et-een tra n n! and %earn n! n a 'road%& fo#ter n! env ronment* 3uman >e#ource# 9eve%opment # not a def ned o'8ect" 'ut a #er e# of or!an #ed proce##e#" J- t$ a #pec f c %earn n! o'8ect veK (Ead%er"1984)596 L t$ n a nat ona% conte4t" t 'ecom# a #trate! c approac$ to nter#ectora% % n,a!e# 'et-een $ea%t$" educat on and emp%o&ment*5106

#edit$ -tructure
3uman >e#ource# 9eve%opment # t$e #tructure t$at a%%o-# for nd v dua% deve%opment" potent a%%& #at #f& n! t$e or!an )at onM#" or t$e nat on7# !oa%#* +$e deve%opment of t$e nd v dua% - %% 'enef t 'ot$ t$e nd v dua%" t$e or!an )at on" or t$e nat on and t# c t )en#* .n t$e corporate v # on" t$e 3uman >e#ource# 9eve%opment frame-or, v e-# emp%o&ee#" a# an a##et to t$e enterpr #e -$o#e va%ue - %% 'e en$anced '& deve%opment" J.t# pr mar& focu# # on !ro-t$ and emp%o&ee deve%opmentN t emp$a# #e# deve%op n! nd v dua% potent a% and #, %%#K (@%-ood" o%ton and +rott 1996)5116 3uman >e#ource# 9eve%opment n t$ # treatment can 'e nFroom !roup tra n n!" tert ar& or vocat ona% cour#e# or mentor n! and coac$ n! '& #en or emp%o&ee# - t$ t$e a m for a de# red outcome t$at - %% deve%op t$e nd v dua%M# performance* At t$e %eve% of a nat ona% #trate!&" t can 'e a 'road nter#ectora% approac$ to fo#ter n! creat ve contr 'ut on# to nat ona% product v t& 5126

#edit$ Training
At t$e or!an )at ona% %eve%" a #ucce##fu% 3uman >e#ource# 9eve%opment pro!ram - %% prepare t$e nd v dua% to underta,e a $ !$er %eve% of -or," Jor!an )ed %earn n! over a ! ven per od of t me" to prov de t$e po## ' % t& of performance c$an!eK (Ead%er 1984)* .n t$e#e #ett n!#" 3uman >e#ource# 9eve%opment # t$e frame-or, t$at focu#e# on t$e or!an )at on# competenc e# at t$e f r#t #ta!e" tra n n!" and t$en deve%op n! t$e emp%o&ee" t$rou!$ educat on" to #at #f& t$e or!an )at on# %on!Fterm need# and t$e nd v dua%#M career !oa%# and emp%o&ee va%ue to t$e r pre#ent and future emp%o&er#* 3uman >e#ource# 9eve%opment can 'e def ned # mp%& a# deve%op n! t$e mo#t mportant #ect on of an& 'u# ne## t# $uman re#ource '&" Jatta n n! or up!rad n! t$e #, %%# and att tude# of emp%o&ee# at a%% %eve%# n order to ma4 m #e t$e effect vene## of t$e enterpr #eK (;e%%& 2001)586* +$e peop%e - t$ n an or!an )at on are t# $uman re#ource* 3uman >e#ource# 9eve%opment from a 'u# ne## per#pect ve # not ent re%& focu#ed on t$e nd v dua%M# !ro-t$ and deve%opment" Jdeve%opment occur# to en$ance t$e or!an )at on7# va%ue" not #o%e%& for nd v dua% mprovement* .nd v dua% educat on and deve%opment # a too% and a mean# to an end" not t$e end !oa% t#e%fK* (@%-ood =* 3o%ton .." Jame# L* +rott Jr)5136* +$e 'roader concept of nat ona% and more #trate! c attent on to t$e deve%opment of $uman re#ource# # 'e! nn n! to emer!e a# ne-%& ndependent countr e# face #tron! compet t on for t$e r #, %%ed profe## ona%# and t$e accompan& n! 'ra nFdra n t$e& e4per ence*

#edit$ Recruitment
+$ # art c%e needs additional citations for verification/
1%ea#e $e%p mprove t$ # art c%e '& add n! re% a'%e reference#* Dn#ourced mater a% ma& 'e c$a%%en!ed and removed* (July 200 )

@mp%o&ee recru tment form# a ma8or part of an or!an )at on7# overa%% re#ourc n! #trate! e# -$ c$ #ee, to dent f& and #ecure t$e peop%e needed for t$e or!an #at on to #urv ve and #ucceed n t$e #$ort to med umFterm* >ecru tment act v t e# need to 'e re#pon# ve to t$e everF ncrea# n!%& compet t ve mar,et to #ecure #u ta'%& Bua% f ed and capa'%e recru t# at a%% %eve%#* +o 'e effect ve t$e#e n t at ve# need to nc%ude $o- and -$en to #ource t$e 'e#t recru t# nterna%%& or e4terna%%&* Common to t$e #ucce## of e t$er areO -e%%Fdef ned or!an #at ona% #tructure# - t$ #ound 8o' de# !n" ro'u#t ta#, and per#on #pec f cat on and ver#at %e #e%ect on proce##e#" re-ard" emp%o&ment re%at on# and $uman re#ource po% c e#" underp nned '& a comm tment for #tron! emp%o&er 'rand n! and emp%o&ee en!a!ement #trate! e#* .nterna% recru tment can prov de t$e mo#t co#tFeffect ve #ource for recru t# f t$e potent a% of t$e e4 #t n! poo% of emp%o&ee# $a# 'een en$anced t$rou!$ tra n n!" deve%opment and ot$er performanceFen$anc n! act v t e# #uc$ a# performance appra #a%" #ucce## on p%ann n! and deve%opment centre# to rev e- performance and a##e## emp%o&ee deve%opment need# and promot ona% potent a%* .ncrea# n!%&" #ecur n! t$e 'e#t Bua% t& cand date# for a%mo#t a%% or!an #at on# - %% re%&" at %ea#t occa# ona%%& f not #u'#tant a%%&" on e4terna% recru tment met$od#* >ap d c$an! n! 'u# ne## mode%# demand #, %%# of e4per ence# -$ c$ cannot 'e #ourced or rap d%& enou!$

deve%oped from t$e e4 #t n! emp%o&ee 'a#e* .t -ou%d 'e unu#ua% for an or!an #at on toda& to underta,e a%% a#pect# of t$e recru tment proce## - t$out #upport from t$ rdFpart& ded cated recru tment f rm#* +$ # ma& nvo%ve a ran!e of #upport #erv ce#" #uc$ a#O prov # on of CP# or re#ume#" dent f& n! recru tment med a" advert #ement de# !n and med a p%acement for 8o' vacanc e#" cand date re#pon#e $and% n!" #$ort% #t n!" conduct n! apt tude te#t n!" pre% m nar& nterv e-# or reference and Bua% f cat on ver f cat on* +&p ca%%&" #ma%% or!an #at on# ma& not $ave nF$ou#e re#ource# or" n common - t$ %ar!er or!an #at on#" ma& not po##e## t$e part cu%ar #, %%F#et reBu red to underta,e a #pec f c recru tment a## !nment* L$ere reBu rement# ar #e t$e#e - %% 'e referred on an ad$oc 'a# # to !overnment 8o' centre# or commerc a%%& run emp%o&ment a!enc e#* @4cept n #ector# -$ere $ !$Fvo%ume recru tment # t$e norm" an or!an )at on faced - t$ an une4pected reBu rement for an unu#ua%%& %ar!e num'er of ne- recru t# at #$ort not ce - %% often $and over t$e ta#, to a #pec a% #t e4terna% recru ter to mana!e t$e endFtoFend re#ourc n! pro!ramme* 2ourc n! e4ecut veF%eve% and #en or mana!ement a# -e%% a# t$e acBu # t on of #carce or Q$ !$Fpotent a%M recru t# $a# 'een a %on!Fe#ta'% #$ed mar,et #erv ced '& a - de ran!e of Q#earc$ and #e%ect onM or Q$ead$unt n!M con#u%tanc e# -$ c$ t&p ca%%& form %on!F#tand n! re%at on#$ p# - t$ t$e r c% ent or!an )at on#* = na%%&" certa n or!an )at on# - t$ #op$ #t cated 3> pract ce# $ave dent f ed t$ere # a #trate! c advanta!e n out#ourc n! comp%ete re#pon# ' % t& for a%% -or,force procurement to one or more t$ rdFpart& recru tment a!enc e# or con#u%tanc e#* .n t$e mo#t #op$ #t cated of t$e#e arran!ement# t$e e4terna% recru tment #erv ce# prov der ma& not on%& p$&# ca%%& %ocate" or Qem'edM" t$e r re#ourc n! team(#) - t$ n t$e c% ent or!an )at on7# off ce# 'ut - %% -or, n tandem - t$ t$e #en or $uman re#ource mana!ement team n deve%op n! t$e %on!erF term 3> re#ourc n! #trate!& and p%an*

-edit. Modern concept of human resources

+$ou!$ $uman re#ource# $ave 'een part of 'u# ne## and or!an )at on# # nce t$e f r#t da&# of a!r cu%ture" t$e modern concept of $uman re#ource# 'e!an n react on to t$e eff c enc& focu# of +a&%or #m n t$e ear%& 1900#* B& 1920" p#&c$o%o! #t# and emp%o&ment e4pert# n t$e Dn ted 2tate# #tarted t$e $uman re%at on# movement" -$ c$ v e-ed -or,er# n term# of t$e r p#&c$o%o!& and f t - t$ compan e#" rat$er t$an a# nterc$an!ea'%e part#* +$ # movement !re- t$rou!$out t$e m dd%e of t$e 20t$ centur&" p%ac n! emp$a# # on $o%eader#$ p" co$e# on" and %o&a%t& p%a&ed mportant ro%e# n or!an )at ona% #ucce##* A%t$ou!$ t$ # v e- -a# ncrea# n!%& c$a%%en!ed '& more Buant tat ve%& r !orou# and %e## (#oft( mana!ement tec$n Bue# n t$e 1960# and 'e&ond" $uman re#ource# deve%opment $ad !a ned a permanent ro%e - t$ n or!an )at on#" a!enc e# and nat on#" ncrea# n!%& a# not on%& an academ c d #c p% ne" 'ut a# a centra% t$eme n deve%opment po% c&*

-edit. ,eferences
+$ # #ect on needs additional citations for verification/
1%ea#e $e%p mprove t$ # art c%e '& add n! re% a'%e reference#* Dn#ourced mater a% ma& 'e c$a%%en!ed and removed* (January 200 )

1* 0 !d"ances in #e"eloping Human Resources Po% 6 (R3) Au!u#t 2004 and Po% 8" R3" 2006 2* 0 :c<ean C* E* Eat ona% 3uman >e#ource 9eve%opment: A =ocu#ed 2tud& n +ran# t on n! 2oc et e# n t$e 9eve%op n! Lor%d* .n Advance# n 9eve%op n! 3uman >e#ource#O 8O 3" 2006* 3* 0 $ttp://en*- , ped a*or!/- , /J*@*2*<a-rence 4* 0 <a-rence J*@*2* < terac& A 3uman >e#ource# 9eve%opment: an .nte!rated Approac$* >epr nted n 2pec a% @d t on of Anna%# of t$e Amer can Academ& of 1o% t ca% and 2oc a% 2c ence* Lor%d < terac& 2000* 9an e% La!ner (@d*)* 2000" Po%ume 520 5* 0 $ttp://---F %oF m rror*corne%%*edu/pu'% c/en!% #$/emp%o&ment/#, %%#/recomm/Bue#t/BrS1'*$tm 6* 0 unpan1*un*or!/ ntradoc/!roup#/pu'% c/document#/DE/DE1AE000116*pdf 7* 0 $ttp://ann*#a!epu'*com/c! /content/a'#tract/520/1/42 8* T a b ;e%%& 9" 2001" 9ua% 1ercept on# of 3>9: .##ue# for 1o% c&: 2:@M#" 0t$er Con#t tuenc e#" and t$e Conte#ted 9ef n t on# of 3uman >e#ource 9eve%opment" $ttp://ro*uo-*edu*au/art#paper#/26 9* 0 Ead%er < @d*" 1984" +$e 3and'oo, of 3uman re#ource# 9eve%opment" Jo$n L %e& and 2on#" Ee- Gor,* 10* 0 :c<ean" C* E*" 0#manFCan " A* :*"A C$o" @* (@d#*)* 3uman re#ource deve%opment a# nat ona% po% c&* Advance# n 9eve%op n! 3uman >e#ource#" Au!u#t (2004)* 6 (3)* 11* 0 @%-ood =* 3o%ton .." Jame# L* +rott" Jr*" 1996" +rend# +o-ard a C%o#er .nte!rat on of Pocat ona% @ducat on and 3uman >e#ource# 9eve%opment" Journa% of Pocat ona% and +ec$n ca% @ducat on" Po%* 12" Eo* 2" p7 12* 0 $ttp://---* %o*or!/pu'% c/en!% #$/emp%o&ment/#, %%#/$rdr/ n t/c)eS8*$tm 13* 0 @%-ood =* 3o%ton .." Jame# L* +rott" Jr*" 1996" +rend# +o-ard a C%o#er .nte!rat on of Pocat ona% @ducat on and 3uman >e#ource# 9eve%opment" Journa% of Pocat ona% and +ec$n ca% @ducat on" Po%* 12" Eo* 2" p7

>etr eved from ($ttp://en*- , ped a*or!/- , /3umanSre#ource#(

Human ,esource Management in Asia 123

An A# a 1ac f c :ana!ement =orum Lee,%& >e#earc$ >ev e=u%%Fte4t Art c%e# prov ded '& An'ar :ana!ement .nte%% !ence and @mera%d .nte%% !ence U =u%% +e4t* >ev e'& t$e A# a 1ac f c :ana!ement =orum +$e Lee, of 5t$ June to 12t$ June 2000: .ndu#tr a% and Commerc a% +ra n n! V @mp%o&ee >e%at on#

An ec%ect c co%%ect on t$ # -ee, from t-o fa r%& D;Fcentr c 8ourna%# t$at nonet$e%e## $ave pu'% #$ed #ome u#efu% or ! na% re#earc$ pert nent to t$e A# a 1ac f c or or ! nat n!

from $ere* +$e feature art c%e# 'e%o- focu# ma n%& on tra n n! and deve%opment 'ut a%#o nc%ude #evera% on recru tment" e4patr ate mana!ement" tra n n!" and ndu#tr a% re%at on#* 9ur n! t$e 'oom decade for A# a" 3>: ##ue# -ere ! ven #$ort #$r ft* <a'our -a# p%ent fu%" and rat$er t$an tra n n!" compan e# re% ed on mport n! ,no-%ed!e and tra ned profe## ona%# from over#ea#* .n a t me of fa#t !ro-t$" emp%o&ee# a%#o -ere more ntere#ted n c$a# n! everF ncrea# n! #a%ar& and 'enef t# pac,a!e# rat$er t$an en$anc n! #, %%#* +$e re#u%t -a# ver& $ !$ turnover rate#" reported re!u%ar%& dur n! t$o#e &ear# n t$e A1:=" t$at furt$er reduced compan&7# ent$u# a#m to tra n emp%o&ee# -$o ma& -e%% %eave 6 mont$# do-n t$e % ne* @ven n 3>" t$e ea#& -a& out of nv t n! $ !$Fprof %e Le#tern #pea,er# to conference# and #p%ur! n! a tra n n! 'ud!et on a conference 8un,et -a# preferred '& #evera% compan e#" #ma%% and %ar!e* +$e ,e& advance# n 3>: n t$e re! on came n t$e form of part of +W: n t at ve#" u#ua%%& n Japane#eFo-ned compan e#" and to #at #f& .20 cert f cat on reBu rement#* +$e A# an cr # # $a# encoura!ed #ome ret$ n, n! of t$e va%ue of t$e $uman re#ource funct on !enera%%&" even t$ou!$ #o far re#u%t# of t$at reFt$ n, n! $ave 'een m n ma%* .n #evera% countr e# $o-ever F nota'%& 2 n!apore" 3on! ;on! and even +$a %and from a %on! -a& 'ac, and - t$ t$e encoura!ement of more !%o'a% o-ner#$ p" t$ # reFt$ n, n! $a# re#u%ted n a ne- more po# t ve form of 3>:* Compan e# t$at are more #u'8ect to nternat ona% compet t on are a%#o ma, n! t$e r !$t no #e#* Get t$ere # a %on! -a& to !o*** +$e fo%%o- n! art c%e# are 8u#t a fe- of t$e 300 ava %a'%e t$ # -ee, from t$e#e t-o 8ourna%#" and ref%ect #ome of t$e n t at ve# #o far" a# -e%% a# nternat ona% e4per ence t$at can 'e tran#ferred* +$ # $a# 'een t$e t$ rd t me -e $ave rev e-ed 3>: n t$ # #ect on" 3opefu%%& t - %% not 'e %on! 'efore -e $ear of #ome rea% #ucce##e# reported n empo-er n! and deve%op n! t$e mo#t mportant re#ource n an& enterpr #e n t$e A# a 1ac f c* Ju#t a# a rem nder" &ou #$ou%d note t$e Po%ume and .##ue Eum'er of t$e art c%e# &ou are ntere#ted n 'efore enter n! t$e data'a#e" a# t$ere # no #earc$ fac % t& for t$e Journals of the $ee% F on%& 'ro-#e fac % t e# ##ue '& ##ue are prov ded for t$e free do-n%oad* Should 4estern managers be encouraged to adopt JMP5s6 9a-n :* Ea&%or &mployee Relations' 22( 2 2000' pp. )*0+),0ver t$e %a#t 20 &ear# t$ere $a# 'een ncrea# n! ntere#t '& Le#tern compan e# n Japane#e mana!ement pract ce# (J:1#)* .ntere#t n t$e#e met$od# $a# !ro-n a# a re#u%t of t$e %ar!e performance !ap# -$ c$ apparent%& e4 #t 'et-een Japane#e manufacturer# and t$e r Le#tern counterpart#" n term# of 'ot$ product v t& and Bua% t&* <oo,# at a num'er of #tud e# n an effort to determ ne -$et$er Japane#e pract ce# can 'e #ucce##fu%%& tran#ferred a'road or -$et$er t$e& are cu%tura%%& 'ound* +$ # # fo%%o-ed '& a %oo, at t$e cond t on# under -$ c$ Japane#e mana!ement pract ce# $ave 'een

#ucce##fu%%& ut % #ed '& Le#tern compan e#* .t # ar!ued t$at Le#tern mana!er# mu#t avo d 8u#t '% nd%& cop& n! Japane#e pract ce# and #$ou%d 'e encoura!ed to 'ecome a-are of -$& certa n Japane#e approac$e# $ave 'een #ucce##fu%* = na%%&" con# derat on need# to 'e ! ven to t$e under%& n! factor# of t$at #ucce## -$ c$ are nece##ar& and appropr ate to t$e r o-n compan&7# advancement* Ke"words: Japane#e mana!ement #t&%e#" Corporate !overnance" Conver!ence Article $"pe: < terature rev e-" +$eoret ca% - t$ app% cat on n pract ce #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XX" 0r ! na% t&F XX" >eada' % t&F XX Manufacturing in #hina: a !K firm case stud" .an L nf e%d &mployee Relations' 2)( - ) ' pp. -.0+-.* +$ # ca#e #tud& narrate# t$e e4per ence of a med umF# )ed D; manufactur n! compan& n #ett n! up and runn n! a manufactur n! p%ant n 2$an!$a " 1eop%e7# >epu'% c of C$ na* .t deta %# $o- feature# of t$e #oc a% or!an #at on of product on" t$e $uman re#ource po% c e# and t$e mana!ement pract ce# of t$e D; parent compan& -ere #ucce##fu%%& tran#ferred and adapted to t$e un Bue %a'our mar,et and 'u# ne## env ronment encountered n ma n%and C$ na* +$e #tud& conc%ude# '& rev e- n! t-o ma8or c$a%%en!e# t$at d rect%& % e a$ead for t$e compan&* Ke"words: :anufactur n!" Dn ted ; n!dom" 1eop%e7# >epu'% c of C$ na" 0r!an #at ona% #tructure" 3uman re#ource mana!ement" :ana!ement tec$n Bue# Article $"pe: Ca#e #tud& #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XX" 0r ! na% t&F XX" >eada' % t&F XXX Islamic revival in Asia and human resource management :on r +a&e' &mployee Relations' ) ( - ) ,' pp. ./2+.*9 #cu##e# #ome of t$e mp% cat on# of .#%am c va%ue# for mana!ement of t$e -or,force n or!an )at on# n :u#% m countr e# n t$e % !$t of t$e r #e of .#%am #t movement# n man& of t$e#e countr e#* 9 #cu## on # p%aced - t$ n t$e conte4t of t$e de'ate a'out t$e nf%uence# of nat ona% cu%ture on or!an )at on# n !enera% and emp%o&eeFmana!ement re%at on#$ p# n part cu%ar* Ar!ue# t$at t$ere are d ffer n! man fe#tat on# of .#%am c va%ue# n t$e countr e# concerned" -$ c$ cou%d %ead to d ffer n! mp% cat on# for $uman re#ource mana!ement (3>:)* 3 !$% !$t# d ff cu%t e# n tr& n! to #o%ate t$e nf%uence# of .#%am on or!an )at on# from t$o#e of ot$er n#t tut on#" #uc$ a# t$e econom&" po% t c# and 'u# ne## mperat ve#* A# a re#u%t" and a%#o ! ven t$e % m ted ava %a'%e comparat ve #tud e# nto t$e ##ue" t -ou%d 'e un- #e to #u!!e#t an .#%am c 3>: mode%* 3o-ever" .#%am" a# an a%%F encompa## n! re% ! on" # 'ound to $ave mp% cat on# for certa n a#pect# of or!an )at on#" e#pec a%%& n t$o#e countr e# -$ c$ are or!an )ed and run n accordance - t$ an .#%am c

dea%* Attempt# to e4p%ore" t$erefore" t$e % ,e%& re%at on#$ p 'et-een .#%am c va%ue# and certa n 3>: feature# n :u#% m countr e#* Ke"words: Corporate cu%ture" @mp%o&ee att tude#" 3uman re#ource mana!ement" .#%am" >e% ! on" Pa%ue# Article $"pe: Comparat ve/eva%uator# #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XX" 0r ! na% t&F X" >eada' % t&F XXX $aiwanese labour management in #hina 9av d C* 2c$a, &mployee Relations' ) ( - ) ,' pp. .*/+.,. .nterv e-# of 40 +a -ane#e factor& mana!er# n C$ na revea% pro'%em# - t$ %oca% -or,er#" unant c pated 'ecau#e of t$e a##umed #$ared %an!ua!e and cu%ture* 1ro'%em# nc%ude poor 8o' comm tment or -or, d #c p% ne" $ !$ turnover rate#" d # ntere#t n %earn n! ne- #, %%# or 8o' advancement" p %fera!e" nter!roup $o#t % t e# and poor tra n n! and educat on* Dna'%e to mport -or,er mana!ement met$od# and #&#tem# t$e& $ad 'een u# n! n +a -an" t$e mana!er# $ave adopted product onF'a#ed remunerat on" f ne#" emp%o&ee educat on" and attent on to emp%o&ee -e%fare and #at #fact on* Ke"words: C$ na" 2ma%%F to med umF# )ed enterpr #e#" +a -an" Lor,# mana!ement Article $"pe: +$eoret ca% - t$ app% cat on n pract ce #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XX" 0r ! na% t&F X" >eada' % t&F XX )nterprise #ultures in the (lobal )conom": Some )merging and $heoretical Problems for Strategic Human ,esource Management A%an L %% am# &mployee Relations' )*( , ) -' pp. /+), <oo,# at $uman re#ource mana!ement (3>:) and n part cu%ar $o- t # u#ed n :e4 can % terature* A%#o e4am ne# t$e +$atc$er te approac$" - t$ re!ard to dec% n n! nternat ona% compet t vene##" n #ee, n! %a'our mar,et reform# to tr& and rea% !n compet t vene## from A# an econom e#* <a'our mar,et f%e4 ' % t& (<:=) and #trate! c $uman re#ource mana!ement (23>:) are po# ted a# $av n! #trate! c ro%e# n offF#ett n! emp%o&er#7 attempt# to d #card trad t ona% mean# of co%%ect ve %a'our mar,et re!u%at on#* Ke"words: A# a" @mp%o&ment %a-" @nterpr #e econom c#" @urope" 3uman re#ource mana!ement" .nternat ona% 'u# ne##" <a'our mar,et" Ee- Yea%and" 2trate! c mana!ement Article $"pe: L$o%%& +$eoret ca% #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XX" 0r ! na% t&F X" >eada' % t&F X

Achieving 7ero defects: $he case of Star !nion )ngineering Singapore 1$&%% # # :* E! n " C$ee <eon! C$on! &mployee Relations' ) ( - ) ,' pp. .,-+.0, @4am ne# +W: mp%ementat on n 2tar Dn on" a #ma%% manufactur n! f rm" and offer# n# !$t# nto $o- t# (d&nam c eBu % 'r um( #&#tem dr ve# t$e deve%opment of t# emp%o&ee# and prov de# t$e % n, 'et-een corporate Bua% t& cu%ture and performance* +W: deo%o!& # d ffu#ed t$rou!$ a un Bue mana!ement and emp%o&ee re%at on# p$ %o#op$& a# -e%% a# t$e adopt on of nnovat ve mec$an #m#* 1rov de# a u#efu% reference for mana!er# attempt n! to mprove or!an )at ona% effect vene##* Ke"words: Ca#e #tud e#" Cu%ture" :anufactur n!" 2 n!apore" 2ma%% 'u# ne##e#" +W: Article $"pe: +$eoret ca% - t$ app% cat on n pract ce" Ca#e #tud& #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XX" 0r ! na% t&F X" >eada' % t&F XX Salar"man Sudden Death S"ndrome =reder c, A* 1a%um'o " 1au% A* 3er' ! &mployee Relations' )*( ) ) -' pp. /-+*) :uc$ current Japane#e popu%ar d #cu## on centre# on t$e #udden deat$" at an ear%& a!e" of Japan7# $ardF-or, n!" -$ teFco%%ar -or,er#: ;aro#$ (deat$ from over-or,) F 2a%ar&man7# 2udden 9eat$ 2&ndrome* 0ff c a%%&" t doe# not e4 #t" a# t$e !overnment and ' ! 'u# ne## are $e# tant to ac,no-%ed!e t$e p$enomenon n % !$t of t$e !ro- n! need to 'ecome more product ve* +$e current rece## onar& pre##ure and !ro- n! #$orta!e of %a'our n Japan $a# e4po#ed t$ # #oc a% p$enomenon* 9e#cr 'e# ,aro#$ " def ne# t$e e4tent of t$e p$enomenon" e4p%ore# c$an!e# t$at are occurr n! n Japan7# -or,force and ana%&#e# t$e mpact on Japan* Ke"words: Compen#at on" Japan" 0ver-or," 2tre##" Lor,a$o% #m" Lor, n! $our# Article $"pe: L$o%%& +$eoret ca% #ontent Indicators: >e#earc$ .mp% cat onF XX" 1ract ce .mp% cat onF X" 0r ! na% t&F X" >eada' % t&F X )mplo"ee relations in Singapore 8 current issues and problems +an C$-eeF3uat &mployee Relations' )0( . ) *' pp. -0+*) @4am ne# four recent emp%o&ee re%at on# ##ue# n 2 n!apore* +$e#e nc%ude dependenc& on fore !n -or,er#" an a!e n! -or,force" mpact of compan e# re%ocat n! t$e r %a'ourF nten# ve ndu#tr e# to ot$er countr e#" and pro'%em# re%ated to pr vat )at on of !overnmentF% n,ed compan e#* +$e emp%o&ment of fore !n -or,er# # con#tra ned '& an mpo#ed %ev& and Buota* @4tend n! t$e ret rement a!e prov de# 8o'# for o%der -or,er#* 3o-ever" emp%o&er# perce ve t$em a# %e## product ve and more e4pen# ve un%e## t$e -a!e #&#tem can 'e mod f ed* Lor,er# made redundant '& compan& re%ocat on are t$e

%e## #, %%ed* 1ropo#e# t$at t$e #o%ut on % e# n retra n n! and up!rad n! t$e #, %%# of -or,er#* Ke"words: @mp%o&ee re%at on#" 0%der emp%o&ee#" 1r vat )at on" >edundanc&" >e%ocat on" 2 n!apore Article $"pe: Comparat ve/eva%uator# #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XX" 0r ! na% t&F X" >eada' % t&F XX ,ecruitment in small firms: Processes methods and problems :ar %&n Carro%%" : c, :arc$ n!ton" J %% @arn#$a- " 2tep$en +a&%or &mployee Relations' 2)( . ) ' pp. 2.*+2/0 +$e art c%e #ummar #e# f nd n!# from recent ca#e #tud& re#earc$ nto recru tment n #ma%% f rm#* +$e re#earc$ a m# to a#certa n -$et$er #ma%% f rm# fo%%o- t$e procedure# out% ned n t$e pre#cr pt ve % terature on recru tment" and to -$at e4tent t$e& re%& on nforma% recru tment met$od#* .t f nd# % tt%e ev dence of t$e adopt on of t$e recommended #&#temat c procedure# and a $ !$ u#e of (tr ed and tru#ted( met$od# nc%ud n! -ordFofF mout$ recru tment and t$e $ r n! of (,no-n Buant t e#(* +$e mp% cat on# of t$ # are e4am ned* L$ %e t$e#e met$od# $ave certa n advanta!e#" t$e& ma& a%#o ! ve r #e to a num'er of pro'%em#* +$e #tud& ar!ue# t$at t$e adopt on of more forma% procedure# and met$od# cou%d reduce #taff turnover n #ma%% f rm# and t# a##oc ated co#t#* 3o-ever" t conc%ude# t$at man& #ma%% emp%o&er# -ou%d rema n unconv nced '& t$e ca#e for open n! up recru tment c$anne%#" and ma& f nd t$e r e4 #t n! approac$e# more co#t effect ve n t$e #$ort term* Ke"words: @mp%o&ment" >ecru tment" 2ma%% f rm#" 2taff turnover Article $"pe: Ca#e #tud&" Comparat ve/eva%uator# #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XX" 0r ! na% t&F XX" >eada' % t&F XXX An evaluation on the emplo"ees5 retraining programmes in Hong Kong :a& :*<* Lon! &mployee Relations' 20( - ) 0' pp. -0-+-)3on! ;on! $a# e4per enced an econom c tran#format on from a manufactur n!F'a#ed to a #erv ceF'a#ed econom& -$ c$ $a# mpacted on t$e demand for manua% %a'our* .n 1992" t$e @mp%o&ee >etra n n! Board -a# #et up to prov de emp%o&ee#7 retra n n! pro!ramme# (@>1) for unemp%o&ed manua% -or,er#* .t a m# to $e%p unemp%o&ed manua% -or,er# to acBu re and deve%op ,no-%ed!e" #, %%# and a' % t e# #o t$at t$e& can reFenter t$e %a'our mar,et* +$ # #tud& focu#e# on eva%uat n! t$e effect vene## of @>1 from t$e per#pect ve# of tra n n! prov der# de# !nated '& @mp%o&ee >etra n n! Board to fu%f % t$e a'ove o'8ect ve* +$e eva%uat on of t$e @>1 # 'a#ed on $o- t$e var ou# @>1 cour#e# can meet t$e tra n n! o'8ect ve#" a##e##ment of tra n n! need#" de# !n of t$e @>1" cour#e eva%uat on" and fo%%o-Fup #erv ce# conducted '& t$e #e%ected tra n n! 'od e#* +$e overa%% effect vene## of @>1 # found to 'e %o-* +$e nd cator# part c pat on rate and 8o'

p%acement rate u#ed '& t$e tra n n! 'od e# tend to prov de m #%ead n! eva%uat on re#u%t# to t$e @>1* Ke"words: @va%uat on" @ffect vene##" 3on! ;on!" >eFtra n n! emp%o&ee# Article $"pe: 2urve&" Comparat ve/eva%uator# #ontent Indicators: >e#earc$ .mp% cat onF XX" 1ract ce .mp% cat onF XX" 0r ! na% t&F XX" >eada' % t&F XX $he future for Hong Kong trade unions: 4hat can the" learn from the %ritish trade unions5 e9perience of adversit" ':;: to '::;6 1atr c a =o#$ &mployee Relations' ) ( / ) ,' pp. -**+- / 9 #cu##e# $o- # nce 1970" t$e co%on a% !overnment n 3on! ;on! $a# e4erc #ed t# - de %e!a% po-er# over trade un on or!an )at on and act v t e# n a 'enevo%ent manner* L$et$er t$e 3on! ;on! 2pec a% Adm n #trat ve >e! on !overnment - %% cont nue t$ # po% c& # uncerta n: t$e ne- !overnment ma& enforce t$e trade un on#7 %e!a% frame-or, more r !orou#%&* D; trade un on# proved t$em#e%ve# re% ant and adapta'%e n t$e face of a - de raft of %e! #%at ve (reform#(" 'rou!$t n '& Con#ervat ve !overnment# n t$e 1979 to 1997 per od" -$ c$ %a d do-n #tr ct temp%ate# for t$e r nterna% dec # onFma, n! proce##e#* 2u!!e#t# t$at t$e (#urv va% %e##on#( %earned '& t$e D; trade un on# dur n! t$ # per od of $o#t %e !overnment ma& 'e of $e%p to 3on! ;on! trade un on# -$ c$ face future c$a%%en!e#* Ke"words: Centra% !overnment" Contro%" 3on! ;on!" <a'our %a-" <e! #%at on" +rade un on# Article $"pe: +$eoret ca% - t$ app% cat on n pract ce #ontent Indicators: >e#earc$ .mp% cat onF XX" 1ract ce .mp% cat onF XXX" 0r ! na% t&F X" >eada' % t&F XX ,epatriation 8 the toughest assignment of all Br an J* 3urn 1ndustrial 2 3ommercial 4raining' .)( * ) ' pp. 22-+220 @4am ne# t$e need for 3> department# to $ave a c%ear po% c& on repatr at on" e#pec a%%& at t me# of re#tructur n! and redundanc& and t$e need to reta n va%ua'%e #taff on return* Con# der# t$e p$&# ca%" p#&c$o%o! ca% and emot ona% effect# of (rever#e cu%ture #$oc,(" t$e often unrea% #t c e4pectat on# of returnee# and t$e r fam % e# and #u!!e#t# cop n! #trate! e#" nc%ud n! a## #tance to t$e accompan& n! #pou#e and c$ %dren" t$at can 'e mp%emented '& 'ot$ emp%o&er# and emp%o&ee#* 0ut% ne# t$e po## '%e content of a repatr at on pro!ramme" #tre## n! t$e need to ta %or t to t$e need# of emp%o&ee# and t$e r fam % e#* Comment# on t$e $e !$tened c rcum#tance# of natura% d #a#ter# and po% t ca% unre#t t$at can cau#e rap d repatr at on* Ke"words: Corporate po% c&" @4patr ate#" =am %& % fe" Eat ona% cu%ture# Article $"pe: +$eoret ca% - t$ app% cat on n pract ce

#ontent Indicators: >e#earc$ .mp% cat onF XX" 1ract ce .mp% cat onF XXX" 0r ! na% t&F XX" >eada' % t&F XXX (oing global: implications for communication and leadership training :e% Ber!er 1ndustrial 2 3ommercial 4raining' .0( - ) 0' pp. )2.+)2, :o#t of u# reco!n #e t$e mportance of 'u %d n! effect ve re%at on#$ p# n t$e !%o'a% arena* 3o-ever" do -e $ave t$e #, %%# to deve%op effect ve 'u# ne## re%at on#$ p# - t$ ot$er# -$o#e att tude and 'e$av our d ffer# mar,ed%& from our o-nI Are -e a-are t$at t$e #ame #, %%# t$at 'r n! #ucce## n our o-n cu%ture ma& 'e perce ved a# rude and nappropr ate '& anot$erI +$e f r#t #tep # to avo d t$e d v # ve tendenc& to put ne!at ve %a'e%# on t$o#e -$o#e 'e$av our d ffer# from our o-n* =or e4amp%e" -$at one per#on re!ard# a# re%a4ed and ea#&F!o n! ma& 'e 8ud!ed '& anot$er a# %a)& and ndec # ve* +$e #o%ut on # to deve%op to%erance and pat ence F ea#& to #a& 'ut $ard to do* +$ # art c%e dent f e# cro##Fcu%tura% #, %%# t$at are e##ent a% for ac$ ev n! #ucce##" nc%ud n! commun cat n! - t$ ot$er# for -$om @n!% #$ # not t$e r f r#t %an!ua!e" ta, n! part n team meet n!#" and under#tand n! t$e core va%ue# of a ! ven countr&* +$e art c%e conc%ude# - t$ a #$ort ca#e e4amp%e of $o- a ne-%& mer!ed An!%oF=renc$ compan& %earned $o- to u#e t# d fference# and #tren!t$# -$en carr& n! out mportant team meet n!#* Ke"words: Cro##Fcu%tura% mana!ement" :ana!ement deve%opment" :eet n!#" 2, %%#" 2tereot&p n!" +eam 'u %d n! Article $"pe: +$eoret ca% - t$ app% cat on n pract ce" Ca#e #tud& #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XXX" 0r ! na% t&F X" >eada' % t&F XXX Managing the cultural divide: the case for classroom assessment Jenn C %%eard 1ndustrial 2 3ommercial 4raining' .0( . ) 0' pp. 0+ / +$e tran#fer of tra n n! tec$n Bue# acro## cu%ture# # frau!$t - t$ d ff cu%t e# for 'ot$ tra ner and tra nee* +ra ner# -or, n! - t$ n mu%t cu%tura% #ett n!# need to 'e e#pec a%%& #en# t ve to t$e r tra nee#7 need# and #oc oFcu%tura% %earn n! 'ac,!round#* Bot$ tra ner# and part c pant# n t$e -or,p%ace 'r n! to tra n n! cour#e# a 'a!!a!e of pa#t and pre#ent educat ona% e4per ence# t$at mpact# t$e r react on to or!an )at ona% %earn n! approac$e#* Con# der# $o- a part cu%ar a##e##ment tec$n Bue can ma,e e4p% c t -$at tra ner# often a##ume to 'e mp% c t n term# of t$e r tra n n! pract ce#" and $o- ndu#tr& can %earn from educat ona% ca#e #tud e#* 9e#cr 'e# t$e re#u%t# from mp%ement n! a (one m nute( a##e##ment feed'ac, to A# an #tudent# underta, n! a tec$n ca% @n!% #$ en$ancement pro!ramme* 2u!!e#t# c%a##room a##e##ment can $e !$ten !reater per#ona% a-arene## to tra n n! approac$e# - t$ n a mu%t cu%tura% #ett n!" 'roaden under#tand n! of part c pant need#" and encoura!e a more #&#temat c #trate!& for e4pand n! and mprov n! tra n n! and %earn n! Bua% t&* .mp% e# e4p%o t n! cu%tura% #&ner!& reBu re# mana! n! rat$er t$an mere%& accept n!" t$e cu%tura% d v de*

Ke"words: A##e##ment" <earn n! #t&%e#" :et$odo%o!&" Eat ona% cu%ture#" +ra n n! Article $"pe: 2urve&" +$eoret ca% - t$ app% cat on n pract ce #ontent Indicators: >e#earc$ .mp% cat onF XX" 1ract ce .mp% cat onF XXX" 0r ! na% t&F X" >eada' % t&F XX *peration $urnaround 8 e9ecutive initiative improves compan" performance through integrated training <e# 1 c,ett 1ndustrial 2 3ommercial 4raining' .0( / ) 0' pp. )/,+)*9e#cr 'e# a pro!ramme de# !ned to over$au% tra n n! and deve%opment act v t e#" n#t !ated '& an nforma% rev e- of mont$%& report# -$ c$ #$o-ed a !enera%%& ne!at ve trend n var ou# area#* 0ut% ne# t$e format on of a corporate p%ann n! comm ttee" t$e p%ann n! proce##" and var ou# pro!ramme# n mana!ement deve%opment" acc dent prevent on" manufactur n!" etc* Conc%ude# t$at effect ve tra n n! and deve%opment #pan# a%% %eve%# of emp%o&ee#" and #$ou%d 'e need# 'a#ed* Ke"words: 9eve%opment" @mp%o&ee#" :ana!ement deve%opment" 1%ann n!" +ra n n! Article $"pe: +$eoret ca% - t$ app% cat on n pract ce" Ca#e #tud& #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XXX" 0r ! na% t&F X" >eada' % t&F XXX $he <earning ,iver 8 si9 "ears of learning and cruising Jonat$an Coate# 1ndustrial 2 3ommercial 4raining' 2 ( / ) ,' pp. )-.+)-, 9e#cr 'e# $o- t$e <earn n! > ver" -$ c$ # a mode% for ac$ ev n! t$e 'e#t mean# of cont nuou# %earn n! to ac$ eve 'u# ne## o'8ect ve#" -a# created and deve%oped* Ke"words: :ana!ement deve%opment" :ana!ement %earn n! Article $"pe: +$eoret ca% - t$ app% cat on n pract ce #ontent Indicators: >e#earc$ .mp% cat onF XX" 1ract ce .mp% cat onF XXX" 0r ! na% t&F XX" >eada' % t&F XX Delivering training down the line Jenn C %%eard 1ndustrial 2 3ommercial 4raining' 20( , )

*' pp. 22+2,

Con# der# compan e#7 ncrea# n! demand for (8u#tF nFt me(" (8u#tFforFme( tra n n! to meet t$e need for co#tFeffect ve and performanceFfocu#ed compet t vene##* @4am ne# $o- deve%opment# n tec$no%o! ca% commun cat on can a## #t tra n n! de% ver& to matc$ c$an! n! compan& o'8ect ve#* 9 #cu##e# t$e tra n n! mp% cat on# of $arne## n! nF$ou#e eFma % fac % t e# for creat n! 'etter nd v dua% re#pon# ' % t& and empo-erment for %earn n!" part cu%ar%& n cu%ture# of $ !$ po-er d #tance* 2u!!e#t# eFma % tra n n! can act a# a cata%&#t for #ucce##fu% c$an!eFma, n! '& prov d n! tra n n! - t$ a m n mum of

de%a& and ma4 mum of per#ona% ta %or n!" -$ %e a%#o $e%p n! to tran#cend t$e cu%tura% d v de 'et-een @a#t and Le#t* Ke"words: Commun cat on# tec$no%o!&" ComputerF'a#ed tra n n!" Co#t effect vene##" @mpo-erment" Ju#tF nFt me" <earn n! Article $"pe: Ca#e #tud& #ontent Indicators: >e#earc$ .mp% cat onF XX" 1ract ce .mp% cat onF XX" 0r ! na% t&F X" >eada' % t&F XX +ew Managerial $hin=ing>actors Affecting $raining and Development at 4or= 2* A%e4ander " >*A* @d-ard# " E*L* 2mart 1ndustrial 2 3ommercial 4raining' 2*( ) ) -' pp. 20+.2 9 #cu##e# t$e ne- mana!er a% mode% of t$e 1970# and 1980# -$ c$ emp$a# )e# f%atter" f%e4 '%e" %e## 'ureaucrat c or!an )at on#" - t$ ncrea#ed emp%o&ee a-arene## t$rou!$ tra n n! and deve%opment" and #u!!e#t# t$at actua% re#earc$ revea%# fru#trat on and oppo# t on to t$e#e dea# from tra nee# and emp%o&ee#* 1ro'%em# n tran#ferr n! to t$e ne- mode% nc%ude t$e cu%tura% d fference 'et-een t$e D; and t$e or ! nat n! countr&" JapanO a re8ect on of t$e accompan& n! evan!e% ca% %an!ua!e of Amer caO t$e mp% cat on t$at t$o#e -$o oppo#e c$an!e are mere%& %ac, n! n (fa t$(O a 'ureaucrat c parado4" or t$e d #crepanc&" 'et-een c%a m# and actua% e4per enceO and t$e #e%% n! of t$e mode% - t$ n a (pre#cr pt ve con#u%tanc&( frame-or,* Ke"words: :ana!ement tec$n Bue#" :ode%" 0r!an )at ona% c$an!e" 0r!an )at ona% #tructure" 1er#onne% mana!ement" +ra n n! mana!ement" +rend# Article $"pe: +$eoret ca% - t$ app% cat on n pract ce" 2urve& #ontent Indicators: >e#earc$ .mp% cat onF XX" 1ract ce .mp% cat onF X" 0r ! na% t&F X" >eada' % t&F X #orporate management development centres: are the" growing in the right directions6 8 An Asian perspective +a&&a' 2* 2$a ,$ 1ndustrial 2 3ommercial 4raining' 2/( ) .', .ncrea# n!%&" a-arene## of t$e contr 'ut on of tra n n! to t$e overa%% deve%opment of emp%o&ee#" t$e $uman re#ource deve%opment movement" # catc$ n! up - t$ t$e .nd an Corporate 2ector* +$e ne-F'orn 3>9 : n #tr& n t$e Centre" a compre$en# ve ncent ve pac,a!e for tra ner#" # a te#t mon& to Covernment n t at ve#* @mer!ence of Corporate :ana!ement 9eve%opment Centre# (C:9C#) on a %ar!e #ca%e n t$e %a#t decade n pu'% c #ector underta, n!# (12D#) # a natura% fo%%o-Fup of t$e#e n t at ve#* 9e#p te $u!e nve#tment# n 'u %d n!# and tra n n! nfra#tructure" no attent on # pa d to-ard# t$e p%acement of correct per#onne%" mot vat on and Bua% tat ve tra n n! output# n 12D#* Attent on to t$e#e ##ue# # v ta% to rea% )e C:9C o'8ect ve# and to 8u#t f& t$e #purt n nve#tment* @4am ne# #ome of t$e cr t ca% ##ue# concern n! effect ve mana!ement of C:9C#: %eader#$ p cr #e#" tra n n! of tra ner#" t$e ro%e of t$e tra ner" emp$a# # on

deve%op n! core facu%t&" promot on of re#earc$" career pro!re## on and mproved #tatu# to overa%% tra n n! funct on* Ke"words: 3uman re#ource deve%opment" .nd a" :ana!ement deve%opment" 1u'% c #ector" +ra ner#" +ra n n! tec$n Bue# #ommunication or bac= to (enesis and the House of %abel? 9 %&# Bone 1ndustrial 2 3ommercial 4raining' .0( , ) 0' pp. 2.*+2-) L$at # effect ve commun cat onI .t # t$e a' % t& to con#truct t$e correct %an!ua!e to commun cate &our compan&7# me##a!e accurate%&* 3o-ever" to ! ve !reater cred ' % t&" t$e effect of t$ # %an!ua!e mu#t 'e 'ac,ed '& a #ound voca% tec$n Bue" free from d #tract on" - t$ t$e correct voca% d&nam c# and 'od& %an!ua!eO ot$er- #e t$e me##a!e - %% %o#e mpact and po-er* 2pea, n! effect ve%& and -e%% n front of a !at$er n! # #omet$ n! ever&one can %earn" - t$ t$e correct tra n n!* <an!ua!e a%one # not enou!$ to $e%p &ou pre#ent" ne!ot ate" and meet t$e ever ncrea# n! demand# of conferr n! t$e 'enef t# and #erv ce# of &our compan& - t$ n an nternat ona% mar,et* Ke"words: Commun cat on#" 9eve%opment" 3uman re#ource mana!ement" <an!ua!e" :ana!ement" +ra n n! Article $"pe: +$eoret ca% - t$ app% cat on n pract ce #ontent Indicators: >e#earc$ .mp% cat onF X" 1ract ce .mp% cat onF XX" 0r ! na% t&F X" >eada' % t&F XXX A# a%-a&# -e $ave on%& #, mmed t$e #urface of re%evant art c%e# t$ # -ee, and on%& t$o#e t$at are part cu%ar%& re%evant for A# aF1ac f c mana!er#* :an& ot$er art c%e# are ava %a'%e a# -e%% nc%ud n! t$o#e focu# n! on ot$er countr e# and nternat ona% per#pect ve#

Human Resources The wor *human resources* refers to the staff or people who are engage to meet the organization+s o$,ectives! In the present times# it is increasingly $eing acknowle ge that the employees form a crucial an valua$le organizational asset! Realizing real performance $enefits from an organization+s human assets re-uires competent recruitment# retention an employee evelopment plans such as Training . /evelopment! The main aim of mo ern HR management is to augment the involvement an contri$ution of the employees for the organization! Human resource management is vital an is consi ere central to the effective growth of any organization! Many organizations have also starte using the wor 0Human 1apital2 replacing the work Human Resource! They are consi ere vital for aspects relate to service# -uality an effectiveness! 3fficient lea ers ensure ways to maximize# expan the scope of involvement of his team people! If the employers care for his team people the employees in return woul care for the organization! 4eople are significant to an organization+s achievement! The competent management of an organization is on hiring# compensation# eveloping# motivating# an retaining the people who are the $est fit for the organization! The &rganization policy woul have to ensure the following5 3fficient Recruitment "est compensation an "enefits for the employees Training . /evelopment 6ppraisal 3mployee Relations The organization can also ensure that there is 789 egree appraisal so as to have efficiency in the system! The &rganization shoul also ensure a transparent an open culture which woul ena$le the employees to express their views an i eas to the employees! 3mployee Relations in any organization shoul inten to provi e employees with an environment where they can flourish an reach their true potential! 3mployees shoul have the right to free om of association# an to $argain collectively! The HR policy frame shoul answer every -uestion that an employee might have a$out his or her rights at work! Training5 Training is consi ere one of the key elements for the success of any organization! &rganization also set up Training man ays to check that the employees in the organization are traine ! 3mployees are provi e on the ,o$ training apart from the important training on self evelopment