Session Summary

Session Number:551
Session ID:S360
Session Title:Strategic Determinants of Human Resource Practices
Short Title:Strategic Determinants of HR
Session Type:Division Paper
Hotel:Hyatt West
Floor:3
Room:Field
Time:Tuesday, August 10, 1999 2:00 PM - 3:20 PM

Sponsors

HR  (Lynn Shore)mgtlms@langate.gsu.edu (404) 651-3038 

General People

Chair Balkin, David B. U. of Colorado, Boulder david.balkin@boulder.edu (303)-492-5780 
Discussant Jackson, Susan E. Rutgers U., New Brunswick sjacksox@rci.rutgers.edu (732) 445-5447 
Discussant Tansky, Judith A. Ohio State U. tansky@cob.ohio-state.edu (614) 292-0532 

Submissions

The Shamrock Organization: Determinants and Consequences of Externalization 
 Bendapudi, Venkat  Ohio State U., Columbus bendapudi.3@osu.edu (614)-292-0868 
 Ash, Ronald A. U. of Kansas rash@bschool.wpo.ukans.edu (785)-864-7550 
 The traditional full-time employment relationship is increasingly giving way to contingent employment via temporary, part-time or contract work. This trend has led writers such as Charles Handy (1990) to suggest that organizations are moving toward a shamrock structure, with one leaf comprising full-time workers, and the two others comprising temporary/ part-time workers and contract workers respectively. However, very little is known about the nature or impact of these emerging employment relationships. This paper examines two important issues in the use of contingent or externalized workers. First, when are externalized workers more likely to be used? Second, what is the effect of externalization on firm performance? Specifically, the paper examines the conditions under which externalization enhances or decreases firm performance. Results from a random sample of U.S. firms show that a variety of environmental variables (munificence, dynamism, complexity, and government role), and strategic variables (intensity of internalization, cost vs. differentiation) can successfully predict when externalized workers are more likely to be used. Further, the relationship between externalization and firm performance is moderated by specific boundary conditions. Firm performance is enhanced (turnover is lower, productivity is greater, and financial performance is better) when greater usage of externalized workers is matched with intense internalization of full-time workers. Firm performance is also boosted when greater externalization is used in conjunction with a differentiation strategy as opposed to a cost focused competitive strategy. The implications of the findings for theory and practice are discussed.
 Keywords: Contingent Work; Firm Performance; HR-strategy fit
Strategic and Environmental Determinants of HRM Innovations in Post-Socialist Poland 
 Weinstein, Marc Glenn U. of Oregon marcw@oregon.uoregon.edu 541-346-3292 
 Obloj, Krzysztof  U. of Warsaw kobloj@wspiz.edu.pl 48-625-3126 
  In the last two decades, research in human resource management has increasingly focused on strategic linkage between the activities of the human resource function and the business goals of enterprises. Most of the theoretical and empirical work in this area has focused on the U.S. context. This paper extends this research to a non-U.S. context. Specifically, we examine data from 303 state-owned, domestic private, and foreign-owned firms to test how strategic and environmental variables are related the adoption of human resource innovations. This analysis suggests that business strategies, local labor markets, and the presence of foreign competition are related to the complexity and extensiveness of firm-level human resource practices.
 Keywords: HRM; Poland; Strategy
Do Part Timers Pull Their Own Weight: Evidence from a Software-Intensive Industry 
 Bronson, James W. U. of Wisconsin, Whitewater jbronson@badlands.nodak.edu (414) 472-5588 
 Dougan, William L. U. of North Dakota dougan@badlands.nodak.edu (701)-777-3228 
 Flexible work options include the use of permanent part-time (PPT) employees, a category that comprises about 10% of the U.S. work force. This paper tests the proposition that the use of PPT's creates strategic advantage via an intra-industry examination of travel agencies. The results show that firms do not make effective use of PPTs to accommodate changes in work flow during times of higher demand. The use of PPTs was significantly negatively associated with one performance measure, efficiency. Additional findings suggest that the successful use of PPTs may be related to business-level strategy, but not related to the technology employed by the firm. The use of PPTs was found to decline in larger and older firms. Finally, findings show that the use of PPT’s does not differ between single-unit and multi-unit firms.
 Keywords: flexible; part-time; efficiency
Information Value in High Involvement Work Systems: The Adoption of Participation in Hospitals 
 Preuss, Gil A. Case Western Reserve U. gap4@po.cwru.edu (216)-368-0799 
 This paper examines the determinants of employee involvement, a key component of high involvement work systems, in organizations. In contrast to existing research, this paper focuses on the nature of unique information held by different employee groups within the production process as the determinant of employee involvement in decision making. Through an analysis of multiple occupations within organizations, I find that the adoption of employee involvement is significantly shaped by the type of information available to occupational groups through the conduct of their work. Those with access to unique and critical information for the organizational production process are most actively integrated into decision making processes. In addition, several competitive and strategic factors shape the adoption of employee involvement across occupational groups controlling for access to information. This finding suggests that organizations are strategically adopting employee involvement on the basis of potential contribution of employees to organizational performance. While previous research has focused on organizational and environmental determinants of employee involvement programs, future research must examine how differences in occupational access to critical information shape the adoption of high involvement work systems. This research is conducted in acute care hospitals within a single metropolitan region of the United States.
 Keywords: Employee involvement; Information; Health care