Comparative Capitalisms and Comparative Human Resource Management

Chris Brewster

London South Bank University

22 October 2013

Outline

• The notion of Human Resource Management (HRM)

• Strategic HRM • Some HRM concepts• Comparative Capitalisms• Comparative HRM• Conclusions/ Discussion

Figure 2.1 The Harvard Approach The Harvard Approach Source: Beer et al. (1984), Figure 2-1, p.16, Map of the HRM Territory.

HRM Policy Choices Employee influence Human resource flow Reward systems Work systems

HR Outcomes Commitment Competence Congruence Cost effectiveness

Long-term Consequences Individual well-being Organizational effectiveness Societal well-being

Stakeholder Interests Shareholders Management Employee groups Government Community Unions

Situational Factors Work force characteristics Business strategy and conditions Management philosophy Labor market Unions Task technology Laws and societal values

Human Resource Management...

Figure 2.1 The Harvard Approach Source: Beer et al. (1984), Figure 2-1, p.16, Map of the HRM Territory.

HRM Policy Choices Employee influence Human resource flow Reward systems Work systems

HR Outcomes Commitment Competence Congruence Cost effectiveness

Long-term Consequences Individual well-being Organizational effectiveness Societal well-being

Stakeholder Interests Shareholders Management Employee groups Government Community Unions

Situational Factors Work force characteristics Business strategy and conditions Management philosophy Labor market Unions Task technology Laws and societal values

Strategic HRM...

Concept 1: Universalist vs Contextual Paradigms

• the Universalistic paradigm– theory– methodology

• the Contextual paradigm– theory– methodology

• other paradigms

Brewster, C. (1999)

The Harvard Approach Source: Beer et al. (1984), Figure 2-1, p.16, Map of the HRM Territory.

HRM Policy Choices Employee influence Human resource flow Reward systems Work systems

HR Outcomes Commitment Competence Congruence Cost effectiveness

Long-term Consequences Individual well-being Organizational effectiveness Societal well-being

Stakeholder Interests Shareholders Management Employee groups Government Community Unions

Situational Factors Work force characteristics Business strategy and conditions Management philosophy Labor market Unions Task technology Laws and societal values

The Past...Back to the Future?

Comparative HRM: part of the answer…

Different countries, different…

• HRM policies and practices

• Definitions of HRM• Definitions of “good”

HRM• Stakeholders• Explanations• Outcomes

Concept 2. Cultural vs Institutional explanations

• the Institutional explanation• the Cultural explanation • the meaning of words

Brewster, C., (2004)

Explanations

(Cultures)• Institutions

– Law– Politics– Business systems– Structure, history, education systems, labour

market, technology, wealth, etc…

• Varieties of Capitalism

Cultural vs Institutional explanations of differences

• the Cultural explanation • the Institutional explanation

– neo-institutionalism;– legal systems; – political systems;– VoC;

• the meaning of words

neo-institutionalism

The power of Isomorphism…• Coercive• Mimetic• Normative

To establish efficiency and legitimacy

legal systems

• Common Law• Constitutional Law

La Porta et al, various

political systems• Majoritarian• ProportionalPagano and Vulpin 2005

• Left• RightRoe (2003)

Varieties of Capitalism

• Liberal Market Economies• Co-ordinated Market EconomiesHall and Soskice, 2001

Nordic economies (Flexicurity states)

Mediterranean economies

Transitional Economies (CEE)Whitley, 1999; Amable, 2003;

Varieties of Capitalism

• and what about:– Communist/Capitalist states?– Transition states?– African states?– Latin American states?

Jackson and Deeg 2006

Concept 3.Globalisation and the impact of MNCs

• Local organisations• Foreign MNCs• Local MNCs

Farndale, Brewster and Poutsma (2008)

Findings

• MNCs are different• But not very different• National recipes still prevail

Concept 4. Convergence and Divergence

• Convergent pressures:– Globalisation– European Union

• Kinds of convergence• Divergent pressures

Mayrhofer, W., Brewster, C., Morley, M. and Ledolter, J. (2011)

Findings on Convergence

Common trends in the expertise and centralisation of the department

Common trends in practice: recruiting, individualisation, increased information, pay systems

No common trends in size of department or in T&D

NO EVIDENCE OF FINAL CONVERGENCE

So, what does this mean?

• Similar trends do not mean countries are getting more alike in the way they manage their HRM

• Implications for practice: – HRM practices linked to high

performance in one country might be useless or detrimental in another; so there is no “one-size-fits-all”; principles not systems and procedures

And so what…?

Need to:• challenge the assumption that what is

good for short-term management requirements is “Good”

• to be more critical in our research and teaching– Wider range of stakeholders; longer-term

thinking

• “best fit” and not “best practice”• more internationally and comparatively

aware

There’s a “new” agenda – and a lot to do…

Comparative Capitalisms and HRMc.j.brewster@henley.ac.uk

(if you have been)Thank you for listening…

Questions, comments, discussion…?

Example Publications (i)

Books:• Brewster, C. and Mayrhofer, W. (2012) A Handbook of

Research on Comparative Human Resource Management, Cheltenham, Edward Elgar

• Brewster, C., Carey, L., Dowling, P., Grobler, P., Holland, P. and Warnich, S. (2012) Contemporary Issues in Human Resource Management: Gaining a Competitive Advantage, (4th edition) Oxford University Press, South Africa, Cape Town

• Brewster, C. Sparrow, P., Vernon. G. and Houldsworth, L. (2011) International Human Resource Management. (3rd edition), CIPD, Wimbledon

• Brewster, C., Mayrhofer, W. and Morley, M., (eds) (2004) Human Resource Management in Europe: Evidence of Convergence? Butterworth Heinemann, London

Example Publications (ii)

Articles:• Goergen, M., Brewster, C. and Wood, G.T., (2013). The Effects of the

National Setting on Employment Practice: the Case of Downsizing International Business Review 22 (6): 1051-1067

• Brewster, C., Brookes, M., Johnson, P. and Wood, G. (2013) Direct Involvement, Partnership and Setting: A Study in Bounded Diversity International Journal of Human Resource Management

• Goergen, M., Brewster,C., Wood, G.T. and Wilkinson, A ( 2012) Varieties of capitalism and investments in human capital Industrial Relations 51 (2): 501-527

• Croucher, R., Wood, G., Brewster, C. and Brookes, M.(2012) Employee turnover, HRM and institutional contexts Economic and Industrial Democracy 33 (4) 605-620

• Mayrhofer, W., Brewster, C., Morley, M. and Ledolter, J. (2011) Hearing a Different drummer? Evidence of convergence in European HRM Human Resource Management Review 21 (1): 50-67

• Wood, G.T., Croucher, C., Brewster, C., Collings, G.C. and Brooks, M. (2009) Varieties of Firm: complementarity and bounded diversity. Journal of Economic Issues 43 (1): 241-260

• Farndale, E., Brewster, C. and Poutsma, E. (2008) Coordinated vs. liberal market HRM: the impact of institutionalisation on multinational firms. International Journal of Human Resource Management 19 (11): 2004-2023

Example Publications (iii)

• Brewster, C., Wood, G. and Brookes, M. (2008) Similarity, Isomorphism or Duality: recent survey evidence on the HRM policies of Multinational Corporations British Journal of Management 19 (4): 320-342

• Farndale, E., Brewster, C. and Poutsma, E. (2008) Coordinated vs. liberal market HRM: the impact of institutionalisation on multinational firms. International Journal of Human Resource Management 19 (11): 2004-2023

• Brewster, C., Wood, G. and Brookes, M. (2008) Similarity, Isomorphism or Duality: recent survey evidence on the HRM policies of Multinational Corporations British Journal of Management 19 (4): 320-342

• Johnson, P., Wood, G.T., Brookes, M. and Brewster, C. The Rise of Post-bureaucracy:Theorists' Fancy or Organizational Praxis? International Sociology 24 (1): 37-61

• Brewster, C., Wood, G., Brookes, M. and van Ommeren, J. (2006) “What Determines the Size of the HR Function?: a cross-national analysis” Human Resource Management, 45(1):3-21

• Brookes, M., Brewster, C. and Wood, G., (2005) “Social Relations, Firms And Societies: A Study Of Institutional Embeddedness” International Sociology, 20(4): 403-426

• Mayrhofer, W. and Brewster, C. (2005) “European Human Resource Management: researching developments over time” Management Revue 16, (1): 36-62