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OFF THE MARK: RESPONSE

TO KAUFMAN’S EVOLUTION
OF STRATEGIC HRM
PAT R I C K M . W R I G H T, D A V I D G U E S T,
A N D J A A P PA A U W E

Professor Bruce Kaufman’s look back at two seminal books published at the
beginning of the strategic HRM field and examination of two recent books to
trace the evolution of the field identifies some issues, but ones with which the
field has dealt for a number of years. His choice of our book HRM and Perfor-
mance provided the wrong target, and consequently his analysis seemed to miss
the mark. © 2015 Wiley Periodicals, Inc.

Keywords: management history, resource based view, strategic HR

P
rofessor Bruce Kaufman’s celebration of Boudreau’s Short Introduction to Strategic Human
the anniversary of the field of strategic Resource Management (2012; hereafter CB) and ours
HRM provides an opportunity to look at (Paauwe, Guest, & Wright, 2013; hereafter PGW),
the field’s origins, evolutionary path, cur- HRM and Performance: Achievements and Challenges.
rent status, and future directions. His focus We acknowledge that if one limits one’s reference
on two seminal books Strategic Human Resource points to two books that came out exactly 30 years
Management by Fombrun, Tichy, and Devanna later in the area of strategic HRM, then these two
(1984; hereafter FTD) and Managing Human Assets fit that narrow criterion. However, we question
by Beer, Spector, Lawrence, Mills, and Walton why one would want to place such artificial con-
(1984; hereafter BSLMW), while limited, serves straints on a field that has exploded over the past
as a reasonable foundation for representing the 30 years. While we would not expect an exhaus-
thinking at the appearance of the field. Many of tive review (a simple Google search of the term
the directions and trends he identifies seem to strategic HRM reveals over 28 million hits), numer-
us to be reasonable descriptions of how the field ous reviews over the past five years might provide
has evolved over the past 30 years. However, we a more suitable knowledge base.
differ from Professor Kaufman in two respects: his In addition, if, for the sake of balance one
choice of two books as the current referent, albeit wants to choose two books, we can think of a
he wanted to choose two published 30 years later, number of books that might be more represen-
and his implication that these trends are neces- tative of the field of strategic HRM than ours.
sarily problematic. In essence, he takes aim at the Our edited volume was aimed at a narrow aspect
wrong target and, consequently, misses the mark. (the relationship between HR practices and per-
formance) of the broader field of strategic HRM
Aiming at the Wrong Target and sought to provide rigorous reviews of the
Professor Kaufman chose two books as represent- academic research on that narrow topic. While
ing the current state of strategic HRM: Cascio and we would encourage all readers of this to rush

Correspondence to: Patrick M. Wright, Darla Moore School of Business, Department of Management,
University of South Carolina, 1705 College Rd., Columbia, South Carolina, 29208, Phone: 803-777-5955,
E-mail: patrick.wright@moore.sc.edu

Human Resource Management, May–June 2015, Vol. 54, No. 3. Pp. 409–415
© 2015 Wiley Periodicals, Inc.
Published online in Wiley Online Library (wileyonlinelibrary.com).
DOI:10.1002/hrm.21723
410 HUMAN RESOURCE MANAGEMENT, MAY–JUNE 2015

out and buy a copy, we think that only academic extent this shift in dominant focus is a problem
researchers would find it worth the money. For rather than an indication of the healthy growth
the rest of the HRM universe, we would recom- of the field.
mend other books that might better represent the This specialization/differentiation exists, and
current state of the field. For instance, Paauwe’s certainly we should do all we can to better inte-
(2004) HRM and Performance: Achieving Long-Term grate the diverse approaches. However, Kaufman
Viability provides a much more comprehensive seems to critique the researchers for not being
model and would be much more similar to FTD or the practitioners rather than recognize that both
BSLMW in its approach of blending some research groups exist and have much to offer one another.
and theory with practical applications. Or Ulrich, Rather than suggesting that the shift has been from
Younger, Brockbank, and Ulrich’s (2012) HR from practice to science, the field has seen both increase,
the Outside In would provide a more practice-ori- but sometimes struggle to communicate across
ented perspective written by those who have been the divide. However, a number of individuals and
working for years trying to help HR organizations institutions have successfully bridged this divide.
to become more strategic. Certainly those on the practice side have
In summary, the choice of our book as the contributed significantly to the field of strategic
“target” against which his argument aims seems HRM. Dave Ulrich’s HR Champions (1997) and
somewhat ill-advised. His critique of our book is subsequent books (including the one cited earlier)
valid if our book was meant to present a compre- have defined the overarching paradigm guiding
hensive model of strategic HRM. However, since much of the thinking among HRM practitioners.
that was not our purpose, using it as a reference In addition, a number of productive academic
point leads the rest of his article to occasionally researchers work for academic institutions that
misrepresent and mislead the reader as to the cur- have or have had centers that provide the oppor-
rent state of our field. tunity for researchers to partner with practitio-
ners to understand and solve messy problems. For
These trends, while Missing the Mark instance, Ed Lawler and John Boudreau (Center
worth discussing, Having chosen at least one wrong for Effective Organizations), Lee Dyer and Chris
target (we won’t speak for our col- Collins (Center for Advanced HR Studies), Mark
sometimes teeter on leagues Cascio and Boudreau), it is Huselid (Center for Workforce Analytics), Paul
not surprising that some of his argu- Sparrow (Centre of Performance-Led HR), and
becoming a series of ments miss the mark. He identifies we the authors (Patrick Wright and the Center
straw men. nine trends that illustrate how the for Executive Succession; Jaap Paauwe and the
field has changed over the 30 years People Management Center; David Guest and the
since the publication of the two HRM Learning Board) all have respected “science”
foundational books. These trends, while worth dis- reputations yet actively engage with companies
cussing, sometimes teeter on becoming a series of around strategic HRM issues.
straw men, citing limited references while ignor- Such institutions provide the platform for
ing those that might contradict the argument. We increased communications between the practice
discuss each of these below. and academic communities. Companies have the
opportunities to share their issues, challenges, and
Shift from Management Practice to best practices. Academics often parlay these rela-
Management Science tionships into opportunities to conduct research
The evolution of any particular discipline con- with the partner companies around these issues.
sists of broadening in scope while fracturing into While such partnerships sometimes result in publi-
specialized subdisciplines, and the field of strate- cations in academic journals (e.g., Van De Voorde,
gic HRM is no different. Certainly at the time of Paauwe, & Van Veldhoven, 2010; Wright, Gardner,
FTD and BSLMW’s publication, the nascent field Moynihan, & Allen, 2005), many simply provide
emerged from practice. Strategy had increased in insights for practitioners into the phenomena
popularity among business leaders, and as they in which they have expressed interest (Wright,
became more enamored with strategic planning, Nyberg, Schepker, & Ulrich, 2013). Thus, the “from
organizations sought to more closely align HR practice … to science” meme does not accurately
with business strategy. As more and more academ- describe the larger field of strategic HRM.
ics entered the field and as methodological rigor
and statistical sophistication increased, a portion Strategy Concept
of the field specialized in the science while a dif- Professor Kaufman rightly notes the absence of
ferent portion continued to focus on the practice the strategy concept from much of the research in
of strategic HRM. It is therefore not clear to what strategic HRM, particularly as it pertains to the HR

Human Resource Management DOI: 10.1002/hrm


OFF THE MARK 411

practices–performance relationship. At an empiri- program on an empirical relationship is risky, how-


cal level, this absence stems from the failure to ever, because if the finding is called into question,
find any evidence of the need for a “fit” between then the entire edifice threatens to come down”
strategy and HR practices (Wright & Sherman, (Kaufman, 2015, p. 400). He then describes some
1999). While a number of artifacts may explain of the problems with this body of research includ-
this failure (cf. Wright, 1998; Wright & Sherman, ing the implicit fallacy of a “rules for riches,” the
1999), researchers seem to have temporarily given problem of inferring causality from cross-sectional
up on seeking to find such fit. studies, and the inapplicability of a universalistic
However, this does not mean that strategy has approach to the unique challenges faced by prac-
disappeared from the strategic HRM literature. ticing managers.
Rather, the focus has shifted from a fit between On these concerns we partly agree. Our book
practices and strategy to the fit between human noted that this popularity necessitated a critical
capital and strategy. This began with Lepak and examination of the research to better identify
Snell’s (1999) recognition of multiple HR strate- what conclusions can be drawn with any cer-
gies existing within an organization with different tainty. However, it is something of a caricature to
strategies applied to different employee groups argue that the research is based on a single prop-
depending on their strategic value and unique- osition since the exploration of a wide range of
ness of their skill sets. This led writers such as contingent factors (see, for example, the Bowen
Delery and Shaw (2001) and Huselid, Becker, and and Ostroff [2004] propositions about a strong cli-
Beatty (2005) to focus on understanding key busi- mate) and a range of possible outcomes implies
ness processes within a particular strategy, and a much richer agenda designed
then identifying the key employee groups tied to to explore and understand rather The problem is that
those processes. While little “science” research has than necessarily demonstrate rela-
focused on empirically testing these propositions, tionships. We, as researchers, have despite the logic
to say that the concept of strategy has disappeared been actively involved in research
from the strategic HRM lexicon would be a vast questioning the causal direction of strategic choice
overstatement. in the HR-performance relation- and despite the best
ship (Guest, Michie, Conway, &
The Two Faces of SHRM Sheehan, 2003; Wright et al., 2005). endeavors of some
Professor Kaufman highlights a tension and a dis- And we have recognized the impor-
tinction, apparent in the early books and persist- tance of context in determining researchers, the
ing to this day between a presumption of strategic the appropriateness or effectiveness small modest effect
choice and contingency on the one hand and of various HR practices (Paauwe,
best practice on the other. We agree that this is a 2004). Thus, while we agree with of “more is better”
continuing and challenging issue. He quotes from the concerns raised by Kaufman, we
our book our conclusion that the evidence favors do so because we have been raising seems to persist.
a best practice, universalist approach. The prob- them over the past 10 years.
lem is that despite the logic of strategic choice and
despite the best endeavors of some researchers, RBV, AMO, and Human Capital
the small modest effect of “more is better” seems Professor Kaufman notes the popularity of the
to persist. This seems to worry Professor Kaufman, resource-based view (RBV) of the firm within
but it is not quite clear why. As he has noted the SHRM literature. As noted, SHRM researchers
elsewhere, it may be that this does not take full jumped on this strategy model because its focus on
account of costs. It is also possible that outcomes internal resources of a firm led directly to explor-
are achieved at the expense of employees, an issue ing the firm’s human resources as a source of com-
that is explicitly considered in our book (see chap- petitive or sustainable competitive advantage.
ter 2 by Peccei, Van De Voorde, & Van Veldhoven, This aided the emergence of the ability, motiva-
2013). Despite the balance of evidence to date, tion, and opportunity framework suggesting that
we agree with the implication that this is an issue HR practices can create value through building a
that has been ever present in the field of SHRM skilled, committed, and empowered workforce.
and one that will not go away. Thus, it has become the “starting point” for much
of the research in this area.
HRM and Performance Interestingly, the article then shifts focus and
Professor Kaufman rightly notes that the relation- devolves into a discussion about the creation
ship between HRM and performance unarguably and partitioning of value that has been a topic of
has emerged as the most popular topic for empiri- debate within the strategy literature. In essence,
cal examination. He states, “Basing a research the challenge is to assign how much value is

Human Resource Management DOI: 10.1002/hrm


412 HUMAN RESOURCE MANAGEMENT, MAY–JUNE 2015

created by employees versus other factors, and either/or trade-off unnecessarily limits how the
then rightly partition that value equitably to the field has and will evolve. While some researchers,
various sources. Such analysis can lead to attribu- or researchers at certain points in time, focus on
tions of unfairness as one alleges that employees one area rather than the other, this does not mean
create rents but are only able to capture a small that the pendulum will not swing among a dif-
percentage (if any) of those rents. He notes how ferent set of researchers or the same set at a later
the original win-win strategy suggested rent shar- time. In fact, we called for such research in our
ing through mutual gains, but that firms can also book:
create a win-lose approach where they opt to cap-
This raises the broader question, also
ture the rents from their employees. Some firms
under-developed in research, of what
may take the win-win while others take the win-
factors lead to the introduction of more
lose approach. However, this does not negate the
HR practices and what role the social
potential value of the HR practices for leveraging
partners can play. As already indicated,
human capital, and may only point to the short-
future research might usefully explain
term versus long-term differences in firm decision-
how HR practices come about; how, by
making styles.
whom, and for what reasons they are
Certainly, the RBV has dragged the field of eco-
introduced; and what institutional and
nomics into SHRM, and the analysis cited earlier
other pressures affect the presence of
illustrates how these economic concepts broaden
more or less HRM in organizations. In
our view of the employee-employer relationship.
doing so, we might build a more explic-
However, such broadening helps us to think with
itly pluralist perspective. (PGW, p. 203)
greater complexity and thus should be viewed
as a positive development illustrat-
ing advances in conceptual analysis Shareholders versus Stakeholders
To suggest that the within SHRM based on RBV, AMO, Again, Professor Kaufman cites the drop in union
and human capital rather than density and the increasing shareholder gover-
shareholder model
reflecting any kind of problem. nance model as trends that may change the nature
has monolithically of SHRM. The questions raised are valid ones, par-
External versus Internal Focus ticularly when he wonders “… how the shift in
encompassed SHRM Professor Kaufman seemingly priorities toward firm performance and business
laments the increasing internal partner, coupled with the decline in power of orga-
would misrepresent
focus of the SHRM literature. He nized labor and rise in power of organized capital
reality. notes that “… researchers in labor (Wall Street, banks, etc.) squares with the viability
economics, industrial relations, and and reality of an HPWS-type employment model”
personnel/HRM fields increasingly (Kaufman, 2015, p. 403).
went their separate ways, with the new field of We agree that this question sparks some theo-
SHRM increasingly dominated by a new genera- retical and empirical examination. It may, how-
tion of researchers trained in the behavioral and ever, be a more salient question for the United
organizational sciences. With this disciplinary States than for most other “Western” economies,
background, the latter group naturally took a more where the concept of social partnership and an
internal-micro perspective on HRM...” (Kaufman, associated broader range of outcomes has remained
2015, p. 402). more robust, even in the face of some decline in
While we would always be for greater cross- union membership. Furthermore, to suggest that
disciplinary pollination, we are not sure that the shareholder model has monolithically encom-
we agree with the statement in its entirety. For passed SHRM would misrepresent reality. Gratton’s
instance, while those in the United States, where (2000) Living Strategy: Putting People at the Heart
labor unions comprise such a small portion of the of Corporate Purpose clearly articulated a broader
private labor force, do tend to ignore industrial approach to SHRM than a pure shareholder ori-
relations, researchers in Europe and the United entation. Guest (1999) has focused research on
Kingdom have much greater appreciation for the employee stakeholders (i.e., well-being) for con-
institutional context in which firms operate. In siderable time. Paauwe’s (2004) model of HRM
fact, Paauwe’s (2004) model clearly identifies the specifically accounts for a variety of stakeholders.
external factors impacting HRM. The internal/ Rogers and Wright (1998) criticized the overem-
external distinction also tends to ignore the large phasis on financial measures of firm performance
body of comparative research on SHRM, which and suggested a stakeholder approach to assessing
has as its distinctive focus an analysis of exter- performance in the HR-performance literature.
nal context. In addition, framing the issue as an Thus, again, the questions raised are valid, but

Human Resource Management DOI: 10.1002/hrm


OFF THE MARK 413

hardly new and in no way absent from the SHRM exploring the issues, challenges, and best practices
conversation. In fact, again, we raised this issue in of top CHROs. The BSLMW might be compared to
our book: Boudreau and Ramstad’s (2007) book, Beyond HR,
presenting an approach for how to strategically
The potential to pursue the dual goals
manage talent or to Paauwe’s (2004) book, HRM
of high organizational performance and
and Performance: Achieving Long-Term Viability,
high employee well-being reflects the
providing an overarching framework for under-
promise of HRM and is why we believe
standing how HRM impacts firm performance. A
this should continue to be a major focus
relatively recent feature has been the growth of
of research. (PGW, p. 197)
multi-authored handbooks, which allow for more
And: reflective writing by scholars than is usually pos-
sible in journal articles and there are a good num-
“The term ‘human capital,’ like the term
ber of these that focus on aspects of SHRM (e.g.,
‘human resource,’ implies something to
Storey et al., 2009).
be utilized or exploited. The human cap-
ital perspective faces ethical challenges Conclusion
on two fronts: the first is the potential
We appreciate Professor Kaufman’s efforts to use
advocacy of a focus on selected key
the 30-year anniversary of two seminal SHRM
human resources while neglecting oth-
books as an opportunity to look back, look around,
ers; the second is the concern for human
and look forward. He raises a num-
resources as a means to organizational
ber of issues with which the field of
ends. (PGW, p. 198) We would question
SHRM must wrestle. However, much
of his article implies that the field the assumptions
Books versus Journal Articles has not struggled with these issues
Finally, Professor Kaufman laments the trend because of his choice of a narrow that many managers
away from scholarly books toward journal articles set of referents, alongside narrowly
now or in the past
and edited volumes. We would not deny that the selected illustrations. By presenting
current academic reward system incents the lat- our purely academic tome as a rel- were ever likely to
ter over the former, and thus we see fewer schol- evant representative of the field, the
arly books in SHRM. However, we would question article creates straw men criticism of read books written
the assumptions that many managers now or in the discipline. As we have showed,
by academics unless
the past were ever likely to read books written by when these limitations are dropped
academics unless they were attending an MBA to consider the totality of the field, they were attending
or similar program and whether scholarly books one recognizes that the issues he
were ever popular in this field. At the same time, raises have been and continue to an MBA or similar
we suggest that both books and volumes/journal be considered as part of the field’s
program.
articles have become critical drivers of the growth evolution. What he also presents is
of the field. a field of study that has burgeoned
Regarding the first point, neither FTD nor over the past 30 years and has advanced in terms
BSLMW were at the time nor would now be con- of its theoretical frameworks, its diversity, depth,
sidered scholarly books. Rather, they would be evidence base, and capacity for critical analysis.
considered interesting integrating books that In contrast to some of Professor Kaufman’s previ-
bridge the academic-practice divide. They were ous comments (Kaufman, 2012), this is a story of
invaluable for providing a framing for how HR success.
might become more strategic, but were both so One of the features of developments over
practice oriented as to not be considered tradi- the past 30 years that Professor Kaufman hardly
tional scholarly books. touches on is the internationalization of research
Second, the fact that journal articles and on SHRM. What he presents, understandably,
edited volumes have increased does not require is a predominantly US perspective on the field.
that books have decreased. Books continue to Relevant research is now being conducted in most
appear in the field of SHRM. FTD consisted of sizeable countries and published in leading inter-
a combination of academic and practitioner national journals. As we have noted, the large
authors. However, this resembles Wright and col- body of comparative research on SHRM requires
leagues’ The Chief HR Officer: Defining the New Role a greater focus on external influences. It is also
of Human Resource Leaders (2011), an edited book notable that research in Europe in particular has
containing chapters by chief human resources paid much greater attention to institutional fac-
officers (CHROs), consultants, and academics tors and to the importance of incorporating

Human Resource Management DOI: 10.1002/hrm


414 HUMAN RESOURCE MANAGEMENT, MAY–JUNE 2015

employee concerns in the study of SHRM, indicat- than its organizational relevance. Thus, all of us
ing that the pluralist perspective, which Professor in our early careers might have been described as
Kaufman perceives as disappearing from SHRM displaying such a narrow focus.
research, continues to flourish in some countries. However, once one grasps the brass ring of ten-
All this provides further indications of the rich- ure, academics gain increased freedom to broaden
ness, diversity, and development of research in their research questions, methodologies, and pub-
this field. lishing outlets. We, along with a number of our
An overarching issue that seems to weave more senior colleagues, have taken such a path.
its way throughout the arguments of Professor This does not require shunning our academic
Kaufman’s article is the nature of the reward research efforts, but rather provides an opportu-
system within academe and across an academic nity to write about them more discursively and to
career. The quest for tenure requires a narrow supplement them with more grounding in organi-
focus on publishing in the top journals. This can zational practice. We believe that, while progress
only be accomplished through rigorous empirical can still be made, the field of SHRM continues to
and theoretical analyses, often devoid of any real- grow, evolve, and adapt. We have enjoyed being
world context. One best accomplishes this through part of it, and look forward to the future contribu-
narrowly defining research questions whose value tions we, Professor Kaufman, and the readers will
stems from its journal publishing potential rather make over the next 30 years.

PATRICK M. WRIGHT is Thomas C. Vandiver Bicentennial Chair in the Darla Moore School of
Business at the University of South Carolina. Professor Wright teaches, conducts research,
and consults in the area of strategic human resource management, particularly focusing
on how firms use people as a source of competitive advantage. He has published over 60
research articles in journals, over 20 chapters in books and edited volumes, and has co-
authored two textbooks and two books on HR practice. He has guest coedited six special
issues of journals and coedited three research volumes and one book on HR practice.

DAVID GUEST is professor of organizational psychology and human resource management


in the Department of Management at King’s College, London. His main research interests con-
cern the relationship between human resource management, organizational performance,
and employee well-being; psychological contracts and flexible employment contracts; and
the impact of the changing nature of careers. He sits on several editorial boards and has pub-
lished in a wide range of journals including the Journal of Organizational Behavior, Journal
of Occupational and Organizational Psychology, Journal of Vocational Behavior, Human Rela-
tions, British Journal of Industrial Relations, and Academy of Management Journal.

JAAP PAAUWE is professor of human resource studies at Tilburg University, the Netherlands.
Before joining Tilburg, he worked as a full professor of organization at Erasmus University
Rotterdam, School of Economics. At Erasmus University he is still involved in supervising PhD
students in the area of HRM and performance in health care. He has written and coauthored
books on human resource management and published more than 150 papers/chapters in
international refereed journals and books. Jaap has been a member of the Executive Com-
mittee of the HR Division of the Academy of Management since 2012. His main research
interests are in the area of HRM, performance and well-being, HR function and delivery,
organizational change, and industrial relations.

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Human Resource Management DOI: 10.1002/hrm


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