No full-text available
To read the full-text of this research,
you can request a copy directly from the authors.
Improving Labor Productivity: Human Resource Management Policies Do Matter
Abstract
Despite the consistency with which the theoretical and normative connections between human resource management practices and firm-level performance outcomes are made, empirical studies that link the two are sparse. This paper presents results from a study of 319 business units that addresses this gap. Hypotheses are derived from a resource-based perspective on strategy. Positive and significant effects on labor productivity are found for organizations that utilize more sophisticated human resource planning, recruitment, and selection strategies. These effects are particularly pronounced in the case of capital-intensive organizations.
... 2. Un segundo grupo de resultados son los denominados operacionales o intermedios. Entre ellos, uno de los indicadores más ampliamente utilizados es la productividad de la mano de obra (RUSSELL et al., 1985;ARTHUR, 1994;BARTEL, 1994;HUSELID, 1995;MACDUFFIE, 1995;ICHNIOWSKI et al., 1995 y 97;KOCH y MCGRATH, 1996;HUSELID et al. 1997). También la calidad se ha empleado como resultado, generalmente sirviéndose de una medida adaptada al sector particular en el que se efectúa el estudio (ARTHUR, 1994;MACDUFFIE, 1995;ICHNIOWSKI et al., 1995 y 97). ...
... La medida más ampliamente aceptada de resultados intermedios u operacionales, la productividad, también se incluye en nuestro trabajo, utilizando como indicador el volumen de ventas por empleado, uno de los más extendidos en la literatura (RUSSELL et al., 1985;BARTEL, 1994;HUSELID, 1995;KOCH y MCGRATH, 1996;HUSELID et al. 1997). ...
... Las investigaciones empíricas que estudian la relación entre las prácticas de gestión de RRHH y los resultados organizacionales, especialmente cuando examinan si ésta viene moderada por la estrategia de la empresa, emplean una metodología similar. Utilizan los denominados análisis de regresión jerárquicos (GÓMEZ-MEJÍA, 1992;ARTHUR, 1994;BARTEL, 1994;HUSELID, 1995;MACDUFFIE, 1995;ICHNIOWSKI et al, 1995 y 97;DELERY y DOTY, 1996;KOCH y MCGRATH, 1996;YOUNDT et al., 1996;RAJAGOPALAN, 1997). Estos análisis consisten en aplicar sucesivos análisis de regresión, empleando el método de inclusión conjunta o «introducir». ...
2.º Premio Estudios Financieros 2000Modalidad: Recursos Humanos Desde que surge el enfoque estratégico de recursos humanos en los años ochenta, se ha tratado de investigar empíricamente la relación existente entre las prácticas de gestión de recursos humanos y los resultados de la empresa. Los estudios realizados se han centrado, básicamente, en el ámbito norteamericano y han adoptado diferentes perspectivas de análisis, lo que dificulta extraer conclusiones generalizables de los mismos. Este trabajo estudia dicha relación desde las cuatro principales perspectivas de análisis identificadas en la revisión de la literatura y para una muestra de empresas españolas. Los resultados obtenidos proporcionan evidencia de que el desarrollo de las denominadas prácticas universalistas de gestión de recursos humanos influye de forma positiva en los resultados obtenidos por la empresa. Particularmente, los resultados mejoran cuando se implantan sistemas de prácticas de recursos humanos consistentes entre sí, más que cuando se ponen en marcha prácticas aisladas, e independientemente de su adecuación a la estrategia adoptada por la empresa. Las implicaciones de estos resultados para futuras investigaciones se comentan al final del trabajo.
... For measuring CPA (13) and TAD (4) we adapted scale items from Arthur (1994) and Subramaniam et al. (2011). The scales for EWP (7) and GRH (4) were adapted from Bhatti and Qureshi (2007) and (Koch and McGrath, 1996), respectively. The scales for JS (9) and HAS (3) were taken from Macdonald and Maclntyre (1997). ...
... Benefits like provident fund and gratuity are provided CPA10 Employees can take loans and advance money CPA11 Higher compensation is paid as compared to other similar organizations CPA12 Increments are as per industry norms CPA13 Economic security is given through regular employment Employee work participation Bhatti and Qureshi (2007), Khalid and Nawab (2018) and Koch and McGrath (1996) EWP1 Regular meetings and discussions are held with employees EWP2 Employees are involved in the problem-solving and decision-making process EWP3 Independence in thought and action is provided to complete the assigned job EWP4 Employees feel comfortable expressing their views and suggestions EWP5 Seniors promote an atmosphere of teamwork EWP6 The organization sometimes provides flexibility in working hours to accommodate personal needs EWP7 HR Policies believe in employee development Employee retention Mobley et al. (1978) and Khalid and Nawab (2018) ER1 ...
... I feel loyal and committed to this organization Grievance handling Bhatti and Qureshi (2007) and Koch and McGrath (1996) GRH1 A formal mechanism exists for handling grievances GRH2 ...
Purpose
This study is the maiden attempt to understand the effect of specific human resource practices (HRPs) on employee retention (ER) with the mediation of job satisfaction (JS) and moderation of work experience (WE) and job hopping (JH) in the context of the textile industry.
Design/methodology/approach
This study adopted a quantitative methodology and applied quota sampling to gather data from employees ( n = 365) of leading textile companies in India. The conceptual model and hypotheses were tested with the help of Partial Least Squares-Structural Equation Modelling (PLS-SEM).
Findings
The findings of a path analysis revealed that compensation and performance appraisal (CPA) have the highest impact on JS followed by employee work participation (EWP). On the other hand, EWP had the highest impact on ER followed by grievance handling (GRH). The study revealed that JS significantly mediates between HRPs like CPA and ER. During Multi-group analysis (MGA) it was found that the importance of EWP and health and safety (HAS) was more in employee groups with higher WE, but it was the opposite in the case of CPA. In the case of JH behavior, the study observed that EWP leads to JS in loyal employees. Similarly, JS led to ER, and the effect was more pronounced for loyal employees.
Originality/value
In the context of the Indian textile industry, this work is the first attempt to comprehend how HRPs affect ER. Secondly, it confirmed that JS is not a guaranteed mediator between HRPs and ER, it could act as an insignificant, partial or full mediator. Additionally, this study establishes the moderating effects of WE and JH in the model through multigroup analysis.
... The innovative role of the HRM department has been described by [45][46][47][48][49]. The innovative recruitment practices are explained by [50]. Further, the innovative redeployment-retraining practices are mentioned in [48,51]. ...
... Moreover, the literature that gives details about the innovative performance appraisal practices includes [52] and the innovative compensation and reward practices are deliberated by the research paper of [53]. The references related to labor productivity are [50,54] whereas those related to product innovation include [55,56]. For the process innovation, papers are [55,[57][58][59], whereas for the marketing innovation, related literature includes [60][61][62]. ...
... Innovative recruitment practices have a significantly positive impact on the firm performance of SMEs in twin cities [50,67]. ...
This research paper aims to examine the impact of innovative HRM practices, including employee participation, performance appraisal, reward and compensation, recruitment and selection, and redeployment–retraining on firm performance. For this purpose, four different models are utilized to examine the impact of innovative HRM department practices on the performance of small and medium enterprises (SMEs) in a country. The dependent variable, firm performance, is proxified by different variables such as labor productivity, product innovation, process innovation, and marketing innovation. For empirical analysis, primary data are collected using a questionnaire. Estimation is conducted using ordinary least squares (OLS) and logit regression techniques. The estimated results indicate that most innovative HRM practices have a statistically significant impact on firm performance in terms of labor productivity, product, process, and marketing innovations. These results imply that SMEs in a country may observe the benefits of devoting greater attention to innovative HRM practices to achieve their future growth potential.
... In the case of chaebol hotels, they specifically adopt a quality enhancement strategy due to the essential nature of service quality for their customers. The organizations that specifically pursue a quality enhancement strategy value HR practices such as the 'selection of highly skilled individuals' (i.e., appropriate behaviors), 'multi skilling', 'development of a broad range of skills', 'long term', 'group focused approach', and 'providing high job security' (Hoque, 1999;Koch & McGrath, 1996;Michie & Sheehan, 2005). Deluxe hotels managed by chaebols place a strong emphasis on the quality of customer service and align their HR practices to uphold high standards. ...
... The quality improvement strategy of deluxe hotels prioritizes customer satisfaction and requires proactive organizational efforts to meet diverse customer needs. The HR practices utilized in this study were classified into seven dimensions: recruitment (Da Silva et al., 2022;Lee, 2014;Tsai et al., 2020;Ueno, 2014;Xing et al., 2023), selection (Al-Refaie, 2015; Da Silva et al., 2022;Khatri, 2000;Michie & Sheehan, 2005;Ueno, 2014), training and development (Al-Refaie, 2015; Anagnostopoulou & Avgoustaki, 2023;Da Silva et al., 2022;Hewagama et al., 2019;Koch & McGrath, 1996), job design (Anagnostopoulou & Avgoustaki, 2023;Lings & Greenley, 2010;Parker, 2014;Pascual et al., 2021), job security (Anagnostopoulou & Avgoustaki, 2023;Kim & Kim, 2003;Stavrou et al., 2010), compensation and pay (Anagnostopoulou & Avgoustaki, 2023;Da Silva et al., 2022;Stavrou et al., 2010), and service quality (Alleyne et al., 2006;Al-Refaie, 2015;Hoque, 1999;Lee, 2014;Perramon et al., 2022). The HR practices in this study were measured using a set of 19 items. ...
Purpose: The purpose of this study is to examine how strategic human resource management practices are enacted in chaebol hotels, and also to evaluate the relationship between the SHRM practices and organizational effectiveness as experienced by employees, regarding the concept of organizational justice. Design/methodology/approach: The questionnaire survey for employees served to test hypotheses which examine the relationship between SHRM and the influence of these HR practices on organizational effectiveness, using multi-regression analysis. This research encompasses a total of 450 responses collected from individuals employed at chaebol hotels in Seoul and Busan. Findings: This study revealed that chaebol hotels hired competent employees who had language capabilities, used appearance as a selection criterion, and ensured that sophisticated selection methods were well established through the HR systems of numerous subsidiary companies. Employees consider the perceived injustices in the recruitment and selection process and the perceived unfairness in promotions. Research limitations/implications: All findings support the concept that the best practice, driven by collectivism, employment legislation, trade unions, and financial considerations, plays a significant role in managing HRM in chaebol hotels. This study contributes a new SHRM framework by integrating a combination of best fit, based on quality enhancement strategy, and best practices tailored to the specific organization. Originality/value: This study contributed to explore the SHRM framework for the Chaebol hotel sector with regard to providing both high quality of service and also a high price policy. This study provides guidelines for efficient SHRM to managers and practitioners who operate deluxe hotels and offers an essential material to gain a better understanding of a new SHRM framework in service organization.
... Good remuneration, pleasant environmental conditions at work place, effective communication, motivation by employer while performing good performance and appropriate recognition of employees are among major critical factors which can enhance the work involvement of the employees. It is witnessed that higher the work involvement increases the retention rate among the employees (Koch and McGrath, 1996). Since industries strive for productivity, it is critical for them to retain the highly talented work force for sustainable growth and profitability. ...
... The P value is 0.000 (P < 0.01) which confirms that the work involvement is one of the major contributing factor in employee retention in gulf countries. This is confirmed by the studies conducted Koch and McGrath (1996) related to level of work involvement and its positive influence on employee retention. ...
... Saattaa puuttua tarkkaa tietoa käytetyistä kustannuksista ja toisaalta erilaisten palvelusuoritteiden saaminen mukaan laskentaan voi osoittautua vaikeaksi. Palveluyritysten tuottavuuslaskennassa tuotosten määrän sijaiskuvaajina saatetaan käyttää liikevaihtoa tai nettomyyntiä ja kustannuksina työntekijöiden lukumäärää tai palkkakustannuksia (Koch & McGrath 1996;Anderson etc.1997). ...
... Ne organisaatiot, jotka osaavat tämän, ovat myös tuloksellisimpia. Porterin (1985: 42;Koch & McGrath 1996) mukaan strateginen henkilöstövoimavarajohtaminen tuo kilpailuedun, koska sen avulla organisaatiolle tulee mahdollisuus sijoittaa ja kehittää työntekijöitään kilpailijoita paremmin. Lisäksi aikaansaatua ja strategisesta henkilöstöjohtamisesta johtuvaa korkeaa tuottavuutta on huomattavan vaikea muiden imitoida. ...
he book concerns the many links and relations between management and performance in organizations.
... Human Resource Management aid an organization in term of organizational behavior in the field of flexibility, competency and employee commitment where the improvement of organizational behavior can help to increase financial performance of an organization [22]. Companies in Malaysia began to aware the significant of Human Resource Management as managers in Malaysia organizations become conscious on the capabilities of Human Resource Management to create steadiness at the workplace [23]. ...
The intense and continues changes in working environment lead the companies in Malaysia to gain and conquer the competitive advantages in order to compete well with other competitors in the market and with effective utilization of Human Resource Management in the aspect of its practices, companies will able to gain the advantages not only in terms of human capital, as well as increase in performance in general including the financial performance. The ignorance on the domain hold by the Human Resource Management had shown that companies tend to neglect the essential of human resource practices and focus on the continuity of business affair especially after the pandemic strikes. Thus, this paper is to gain the put the Human Resource Management practices under the spotlight its deserved through the scope of financial performance. This study applying the literature review technique on the secondary resources that are relevant to human resource practices and financial performance aspect. Therefore, through this paper the corporate sectors in Malaysia can be alert on the influence of human resource practices had in order to steer company upon the desirable outcome such as profitable return and boost in term of financial performance.
... Therefore, equipping hotel employees with the necessary skills that will enhance their performance is very important. Lack of adequate training among the hotel staff are counterproductive (Koch & McGrath, 1996) because it ultimately result into lack of commitment and low productivity in the hotel business. Hotel staff should be welltrained to get skilful, which gives good services to the customers. ...
Service quality is an essential ingredient for the hospitality and tourism establishments to achieve optimum performance and profitability. Hence, investing in Human Resource Development (HRD) allows hospitality establishments to enhance staff knowledge and capacities to contribute to the provision of superior service quality and customers' satisfactions. Lokoja the Kogi State capital has become a haven for investors in hospitality business. However, the level at which these investors take cognisance of the imperative of HRD in their business outfits still leaves much to be desired. To this end, this study attempts to unearth the role, importance and import of HRD in building the capacity of the hotels establishments in the city of Lokoja towards sustainable development of the sector. The study adopts a qualitative approach and purposive sampling method was used to collect data through in-depth interviews from a purposive sample of 10 hotels in the city. 38 Managers and line managers were interviewed from the sample of 10 hotels. The interview transcripts were sorted, coded and data analysed by way of thematic analysis. Findings reveal that HRD improves Staff Attitude to work. However, most of the hotels in Lokoja were being managed by unqualified staff, as a result of wrong recruitment procedures by the proprietors. The study suggests a change in mind-set of hotel proprietors and investors, by allowing competence and professionalism as the hallmark in the recruitment of managers and staff in their establishments.
... Labour productivity tended to be better in firms that systematically evaluated their recruitment and selection policies (Koch and McGrath 1996). In a study of formal evaluation of recruitment and selection practices and HR planning in 319 U.S. businesses, labour productivity was assessed in terms of net sales per employee. ...
Small and Medium-sized Enterprises (SMEs) are diverse and include those driven by social purpose, high-growth scale-ups, and startups across various sectors. Collectively, SMEs play a crucial role in economies and local communities, but their contribution to GDP is proportionally smaller than their employment numbers. Recent global and local shocks, including natural disasters, technological changes, and cyber incidents, have posed challenges to SME resilience. These firms often exhibit greater vulnerability compared to larger firms due to their specialised markets and suppliers, weaker financial positions and borrowing capacity, and their availability of human resources and knowledge capital. One significant contributing factor to their vulnerability is the relatively lower prevalence of formal ‘off-the job’ training in SMEs compared to their larger counterparts. Training has traditionally been perceived by businesses as a cost that needs to be controlled or reduced. However, empirical evidence underscores the robust and substantial positive effects of off-the-job training on SME performance, including employment growth and reduced closure rates. In recent years, the ongoing debate about the impact of technological change on the labour market has gained prominence. Emerging technologies like artificial intelligence, digitization, and industrial robots are expected to bring further transformation. Technological change is making job tasks more complex, which increases the need for qualifications and skills. The imperative will remain to nurture high-quality employment in SMEs reflective of their role in fostering resilient supply chains, even as the causal relationship between technological progress and training remains an ongoing topic of discussion. The feedback loops between innovation and skills presents policymakers with complex challenges and coordination issues. This report delves into the economic advantages, particularly regarding productivity, of training in SMEs, with a specific emphasis on firm-level training as opposed to vocational programs such as apprenticeships.
This publication forms part of a series curated by UNIDO, dedicated to advancing the organization’s work on Sustainable Supply Chains, and was crafted within the framework of the Learning and Knowledge Development Facility (LKDF).
... Năng suất lao động đo lường hiệu quả của lực lượng lao động. Chỉ tiêu này cho thấy mức độ khai thác giá trị của vốn con người mang lại cho nền kinh tế hay từng doanh nghiệp (Koch and McGrath, 1996). ...
Nhiều bằng chứng cho thấy Việt Nam đã cải thiện đáng kể năng suất lao động trong hơn một thập kỉ qua. Tuy nhiên mối quan tâm về bẫy thu nhập trung bình khiến Việt Nam phải có cái nhìn xa hơn và toàn diện hơn trong việc thúc đẩy năng suất lao động. Bài viết nhằm mục đích tìm hiểu về những lợi thế và thách thức của về năng suất lao động Việt Nam và gợi ý chính sách năng suất lao động trong thời gian tới. Trong đó, nghiên cứu tập trung phân tích vào các yếu tố ảnh hưởng đến năng suất lao động bằng cách đánh giá từ phía thị trường lao động và thông qua lan toả từ TFP. Phương pháp Färe-Primont được áp dụng để ước tính các tác động khác nhau của năng suất ở 63 tỉnh/ thành Việt Nam trong giai đoạn 2010-2021. Kết quả cho thấy giá trị TFP vẫn tăng nhưng không nhiều, với tốc độ tăng trưởng kép hàng năm là 1.7%/năm. Hiệu quả quy mô-phân bổ tăng chậm, thậm chí giảm ở các vùng có quy mô GDP lớn và năng suất lao động cao như Đông Nam Bộ. Hiệu quả kỹ thuật không cải thiện nhiều ở các vùng Đông Bắc, một số tỉnh ven biển miền trung và Tây Nguyên cho thấy tác động lan toả tri thức và vai trò thúc đẩy của các tỉnh trọng điểm ở những khu vực này còn kém. Mặc khác, chất lượng lao động Việt Nam vẫn chưa đáp ứng nhu cầu của thị trường, sự mất cân đối trong phân bổ lao động theo các nhóm ngành và các cơ hội việc làm chưa được khai thác là những điểm nghẽn để tạo ra những bước đột phá về năng suất lao động ở Việt Nam. Trên cơ sở đó, nghiên cứu đề xuất một số chính sách để nâng cao năng suất lao động của Việt Nam theo định hướng phát triển bền vững. Từ khoá: Năng suất lao động, chất lượng lao động, chỉ số TFP Färe-Primont, Việt Nam.
... There are several methods to measure productivity, with labor productivity being one of the most commonly used criteria. Hence, labor productivity measures the extent to which the workforce contributes value to the economy or enterprise (Koch and McGrath, 1996). Molnar and Chalaux (2015) divide Total Factor Productivity growth into sectoral labor productivity, comprising three effects: (1) intra-sectoral effect; (2) shift effect; and (3) cross effect or interaction effect. ...
This research focuses on analyzing the trajectory of labor productivity growth and its consequential impact on Thai Nguyen Province's Gross Regional Domestic Product (GRDP) between 2017 and 2022. By employing statistical methodologies and descriptive statistics sourced from the Statistical Office of Thai Nguyen Province, this study illuminates the dynamic nature of labor productivity within the province. Over this period, there was a consistent fluctuation in productivity levels, reflecting an overall upward trend. Notably, the average productivity growth rate stood at a substantial 12.61%, showcasing the province's evolving economic landscape. Remarkably, 2021 emerged as the year with the most significant productivity surge, juxtaposed against the comparatively sluggish growth witnessed in 2020. Additionally, this investigation firmly establishes labor productivity as a predominant driver of GRDP growth in Thai Nguyen Province, surpassing the influence exerted by capital and labor inputs. These findings underscore the paramount importance of labor productivity as the linchpin of economic progress within the province, signifying its pivotal role in shaping the region's economic trajectory compared to other contributing factors.
... Concerning the scope of exercises, there is no single concurred or fixed rundown of HR practices (Paauwe, 2009;Purcell and Kinnie, 2007). Many articles feature the impacts of execution (Paauwe, 2009) on individual practices, for example, planning of staff (Koch and McGrath, 1996), compensation based on performance (Dowling and Richardson, 1997;Lazear, 1996;McNabb and Whitfield, 1997), staff training, development, and capacity building (Kalleberg and Moody, 1994), and the potential outcomes of careers within the organization (Verburg, 1998) and also the combinations or sets of human resource management practices (e.g., (Arthur, 1994;Guest, Conway, and Dewe, 2004). Practices, for example, job design and work-life balance not included that frequently (Boselie, Dietz, and Boon, 2005;Wall and Wood, 2005). ...
Improving wellbeing at the workplace is the most talked-about topic in human resource management these days. Organizations now are not just focusing on the output of employees, but they are also focusing on how they manage to give input and how they feel at the workplace. Substantial research has been conducted in the area which reveals that the sustainable performance of employees is directly related to the mental health, vitality, and wellbeing of employees. Organizations need to put employee vitality and wellbeing as a priority in their operations. This study aims to understand the factors that influence the well-being of employees in the workplace and how they can improve. The study also reveals how the organizations that have a sound wellbeing strategy impact the overall performance and mental health of employees working in those organizations. 162 respondents filled the questionnaire. The data was analyzed using SPSS. The results show that the size of the budget for well-being and the existence of a well-being strategy impacts the ability of companies to offer well-being programs. Another important finding from the research is that the geographical location of the company impacts the existence of well-being strategies in companies, and they can differ depending on the geographical location. It was also found that if a company needs a well-being strategy, it is not impacted by the size of the company. The more companies invest in ensuring the wellbeing and mental health of employees, the more the employee motivation and meaningfulness at work improves, resulting in better performance.
... 2. Marianne J. Koch,Rita Gunther Mcgrath,(2016). Despite the consistency with which the theoretical and normative connections betiten human resource management practices and firm-level performance outcomes are made, empirical studies that link the two are sparse. This paper presents results from a study of 319 business units that addresses this gap. ...
... In addition, a new hire's excellent performance in school does not guarantee equally good performance on the job (Hatch and Dyer 2004). Investing in training practices, such as professional development workshops and access to a mentor and personal coach, enables firms to realize the potential of their new hires (Koch and McGrath 1996). Training increases interaction with colleagues, encourages knowledge sharing, creates a shared vision of appropriate behavior, and fosters tacit knowledge, 7 or "know-how" (Bol et al. 2018; Ka se, Paauwe, and Zupan 2009). ...
SYNOPSIS
We examine whether differences in HR systems among audit firms can affect client-level audit outcomes. Based on the audit quality framework of Knechel, Krishnan, Pevzner, Shefchik, and Velury (2013b) and the strategic HRM literature, we posit that audit firms with stronger HR systems are likely to deliver more desired audit outcomes, ceteris paribus. Building on systems theory, we outline and capture a wholistic picture of the audit firm HR system as consisting of three dimensions: competency-, motivation-, and opportunity-enhancing practices. We draw on two distinct data sources for our analyses: a survey allowing us to tap into the HR systems of large audit firms servicing PIE clients in The Netherlands and corresponding client-level archival data to measure audit outcomes. Our results suggest that HR systems are an internal context factor affecting client-level audit outcomes. Supplemental analyses indicate that competency- and opportunity-enhancing HR practices are associated with more desirable audit outcomes.
Data Availability: Part of the data are available from the sources cited in text.
JEL Classifications: M42; O15.
... Two-way communication must be employed so that employees can freely express their opinions to management. Our results are also supported by the following international literature: Guest 1987, Koch and McGrath 1996, Goris 2007. During our studies we concluded that the clearer the goals the manager defines are, the better the performance of employees. ...
... A human capital theory states that the application of HR practices helps develop the laborer's skills and competencies, increasing their productivity level (Koch & McGrath, 1996). Lean manufacturing means the process of minimizing wastage at the workplace, which leads to good quality, labor productivity, and cost reduction in the company (Mulholland, 2018). ...
Personality and Emotions are essential attributes that differentiate one individual from another. A thorough understanding of both constructs can be beneficial for uncovering the linkages in human behaviour. This review sought to determine whether emotional intelligence (EI) was only a measure of personality traits or a distinct concept. In this article, a systematic review is presented of the relationship between personality traits and emotional intelligence, through a review of 80 research papers spanning from the year 2000 to 2021. Papers have been critically
examined to identify the type of study, sample and models that have been employed over the years. Interest in this topic has gradually increased over the years and continues till today. The findings suggest that there is a relational and predictive relationship between emotional intelligence and personality traits; however, the results can vary depending on the combination of measures used. Additionally, personality traits are more closely associated with trait EI than ability EI. Despite the strong correlation between the two constructs, EI has been shown to be a reliable predictor of other variables beyond personality traits. Relation between EI and personality traits can vary among young and older individuals but the data available to support this claim is insufficient. The findings and research gaps that were
identified through this review have relevance for many different research domains.
... One way of building the workforce characteristics is acquiring individuals from outside the organization who have the required knowledge and experiences. HR planning, extensive recruiting, and selective staffing practices have been seen as the keys to acquiring higher levels of human capital (Snell & Dean, 1992;Terpstra & Rozell, 1993;Koch & McGrath, 1996). ISSN 1929-7106 www.ijac.org.uk ...
In this study we focused on how human resource practices can be used to build and support high-performance work systems and, in turn, how it could contribute to organizational performance. Based on the literature review on strategic human resource management and organizational performance, we developed a parsimonious and prescriptive model for creating employee motivation and retention. We conducted a field study with 395 respondents from 34 manufacturing organizations to test a model linking four configurations of HR practices (acquisition, development, commitment, and retention) to two workforce characteristics: employee motivation and employee turnover. The result showed that a commitment configuration and acquisition configurations of HR practices were significantly related to employee motivation; and a development configuration of HR practices were significantly related to intention to turnover.
... One way of building the workforce characteristics is acquiring individuals from outside the organization who have the required knowledge and experiences. HR planning, extensive recruiting, and selective staffing practices have been seen as the keys to acquiring higher levels of human capital (Snell & Dean, 1992;Terpstra & Rozell, 1993;Koch & McGrath, 1996). ISSN 1929-7106 www.ijac.org.uk ...
In this study we focused on how human resource practices can be used to build and support high-performance work systems and, in turn, how it could contribute to organizational performance. Based on the literature review on strategic human resource management and organizational performance, we developed a parsimonious and prescriptive model for creating employee motivation and retention. We conducted a field study with 395 respondents from 34 manufacturing organizations to test a model linking four configurations of HR practices (acquisition, development, commitment, and retention) to two workforce characteristics: employee motivation and employee turnover. The result showed that a commitment configuration and acquisition configurations of HR practices were significantly related to employee motivation; and a development configuration of HR practices were significantly related to intention to turnover.
... Huselid (1995) opined that policies, practices, Human Resource Planning and particularly those aligned with a company's competitive strategy, can help create competitive advantage. Similarly, Koch and McGrath (1996) argues the relationship between Human Resource planning, recruitment, staffing practices, and labor productivity. They imply that "a highly productive workforce is likely to have meaningful impact that makes an important asset to the organization" (Koch & Me Grath, 1996). ...
The study examined the green human resource planning and organizational sustainability of manufacturing firms in Anambra State. The objectives of the study are as follows to: Determine the co-relationship effect between green performance management/ appraisal and pro-environmental/eco-friendly practices of manufacturing firms in Anambra State. Identify the co-relationship effect between green culture policies and pro-environmental/eco-friendly practices of manufacturing firms in Anambra State. Percentage table and ANOVA were used for the analysis in the study. Questionnaire was used to collect data from the workers as it concerns green human resource planning. The population of the study was 5,625 of the sample manufacturing firm staff, while the sample size is 360 were gotten through the use of krejuie and Morgan (1970) formular. The research adopted proportional allocation technique. From the analyses tested, the study found that; green performance has positive significant effect on pro-environmental and eco-friendly practices of manufacturing firms in Anambra state. Green culture has positive significant effect on pro-environmental and eco-friendly practices of manufacturing firms in Anambra state. The study recommended that Green performance management appraisal should be absorbed in all manufacturing firms in Anambra State Nigeria; as it also showed a high and moderate coefficient which presupposes a high influence on the dependent variable (pro-environmental and eco-friendly practices). Management and stake holders of manufacturing firms in Anambra State are advised to accommodate green cultures and practices in order to, Nigeria practices in order to curb carbon footprints, climate catastrophes etc and to abolish completely the use of fossils, while embracing New and most reliable technology in their manufacturing process.
... Employee turnover has a key influence on firms' competitiveness (Becker & Huselid, 1998). Studies reveal that the utilization of practices in strategic human resources management; for example, results in reduced employee turnover, which has a positive relationship with the organizations' performance and productivity (Huselid, 1995;Becker & Gerhart, 1996;Koch & McGrath, 1996;Guthrie, 2001). Executives continue to advocate that employees are their major important asset and that a firm's ability to retain employees is a hallmark of sustainable organizational performance (Price Water House Coopers, 2007). ...
manufacturing firms in Nigeria from 2010-2019. The main objective of this study was to investigate the interaction between company size and corporate social responsibility of consumer goods manufacturing firms in Nigeria. The specific objectives of the study will be to:(i) Ascertain the effect of Board size on CSR (ii) Investigate the effect of size of employees on CSR. Two research hypotheses were formulated to evaluate whether or not there is interaction between company size and corporate social responsibility of consumer goods manufacturing firms. The paper utilized secondary information in the form of panel data extracted from published annual reports and accounts of 12 randomly selected quoted firms in Nigeria Stock Exchange, The study adopted ex post facto research design in carrying out the research. SPSS Regression technique was used to obtain the empirical results. The results revealed that Board size had positive relationship with CSR of manufacturing firms in Nigeria (R= 0.004, P < 0.05). This showed that CSR does not depend on the board size. There was a positive relationship between size of employees and corporate social responsibility of manufacturing firms in Nigeria (R = 0.083, P < 0.05).This indicated that practicing of CSR will not affect employees size. Hence, company should liberalize CSR expenditure when sales is on the increase and be more conservative when sales are declining. The study therefore, recommended that the consumer goods manufacturing firms should continue to invest on CSR. Since it helps in promoting their firms’ image in long run.
... If such a situation can be focused on and ensured in the organization and brought in practices then the organization will significantly sustain itself in the domain of competitive advantages (Bakator et al., 2019). As a result, proper HR practices are combined with an appropriate strategy and HR resources that meet the organization's needs, i.e. precious, rare, unique, and non-substitutable (Koch & McGrath, 1996). ...
Purpose– This research aims to investigate the relationship between Strategic Human Resource Management (SHRM), Traditional Human Resource Practices (THRP), and Job Satisfaction (JS) in the context of Bangladeshi service-providing organizations. Design/methodology/approach– This study employs the positivism paradigm using a cross-sectional survey with the help of a structured questionnaire having five points Likert scale. Using the snowball sampling technique total of 202 questionnaires were collected from the service-providing organizations (Restaurants, Insurance, Telecommunication, Bank, and Transport) operating in the Rajshahi Division of Bangladesh. To analyze, the surveyed data structural equation modeling approach is used for this study. The measurement model of this study is assessed based on the relationship between the indicators and the latent variables using the partial least square technique. Findings– This study finds that practicing SHRM has a significant positive relation with the JS which leads the organization to achieve its success but different findings regarding the relations of THRP with JS. Research limitations- This study has limitations in terms of cross-sectional design, the number of measurement items, sample size, and sampling technique which may suffer the generalisability of the results. Practical implications– The findings of this study should help management to understand how organizational settings and policies can generate constructive means, which in turn enhance the alignment of THRP according to SHRM to bring JS into the organizations. Originality/value– This study will add to the human resource management literature by investigating the soundness of the SHRM, THRP, and JS relation in the service sectors in Bangladeshi which is relatively limited in the country under study.
... In general, human resources planning has the function to define the purpose of the organization, create a strategy to achieve these goals, and develop plans and comprehensive strategies to integrate and coordinate the activities of the organization [2]. Human resources planning also have a responsibility in making rules and useful programs to provide benefits to the performance of an organization [3] which also has a link with efficiency in an organization. The amount of costs to be incurred by the organization and also a high risk of losing talent that makes some companies racked his brain as a solution to these problems. ...
... This zone has experienced an improvement in performance practices and profitability. In small and medium enterprises (SMEs), HRM can enhance staff responsibility, competence, and flexibility, which ultimately leads to excellent performance (Koch and McGrath, 1996). Human resource management is essential to the smooth operation and success of an organization. ...
Small and medium enterprises (SMEs) support countries' economies in financial context and also create employment opportunities. Human resource management (HRM) practices are very important to equip employees via training & development, employees' motivation through effective rewards policies and effective recruitment and selection process. Human resource plays a vital role to improve employee performance and create competitive advantage in this competitive era since human capital is one of major source to enhance organizational performance. A collection of 294 self-administered and well-structured questionnaires were collected among the employees of 80 SMEs in Quanzhou China. Statistical tests like correlation were applied through SPSS. The outcomes revealed that HRM practices (employee recruitment & selection, training & development, performance management and compensations) are positively associated with employee performance. The results conclude: 1) HRM practices level was regarded as high. 2) Recruitment and selection are positively associated with employee performance. 3) Training and development are positively associated with employee performance. 4) Performance management is positively associated with employee performance. 5) Compensations are positively associated with employee performance. Finally, discussions and recommendations were made on the results of this research, such as improving the compensation among employees, providing more training opportunities with the focus on clarifying their work responsibilities and improving work related skills.
... This essential idea can be transformed into a large quantity of information, creativity, technical abilities, and organizational experience. Thus, human capital possessed by the labor force becomes a productive asset (Koch & McGrath, 1996). ...
The concept of human capital and strategic human resource management are critical to ensure success. Human capital is crucial to increase assets and give long-term advantages to both an enterprise and a country. However, the COVID-19 pandemic which began in early 2020 and still continues today is the reason behind the issues of health deterioration and low life expectancy rates. Similarly, the quality of learning suffered severe disturbance during the pandemic. As a result, this situation is critical for the overall development of human capital in Indonesia. The government's challenging task in the future is to develop a plan to ameliorate the situation in different affected areas such as health, education, and employment. This article examines various literature and supporting data that are relevant to the role of human capital in development in a country, current conditions, obstacles, achievements, and strategies that must be implemented in the framework of recovery from disruptions caused by the global economic crisis and the COVID-19 pandemic, both of which disrupted the overall economic order. This report also illustrates how Indonesia's situation improves human capital while also highlighting its successes. Keywords: Human Capital, Strategic Management, COVID-19 Pandemic, Human Development
... Từ khi có sự phát triển vượt bậc của khoa học kỹ thuật cùng với sự khan hiếm tài nguyên thiên nhiên, đặc biệt là sự xuất hiện của cuộc cách mạng công nghiệp lần thứ tư với những đột phá chưa từng có về sản xuất thông minh, thì vốn con người càng trở thành đối tượng ưu tiên hàng đầu trong chính sách phát triển đất nước. Theo đó, vốn con người có thể giúp người lao động nâng cao năng suất lao động, tăng khả năng tìm kiếm việc làm và tăng thu nhập cá nhân (Koch & McGrath, 1996;Vinokur, 2000;Dong & Hue, 2019). Vốn con người có thể tác động tích cực đến năng lực và khả năng cạnh tranh của doanh nghiệp (Lepak & Snell, 1999;Arthur J. B., 1992;Arthur J. B., 1994). ...
In recent years, studies on the topic of growth often refer to the relationship between human capital and economic growth. This asserts that the importance of human capital is undisputed. With the desire to study the effect of human capital on individual income in Vietnam, the article has used the Mincer earnings function. Research results show that employee's income is affected by three factors: education expenditure, working time, and education level. However, the study also shows that the correlation between college graduation and higher and income growth is quite low. Through these research results, Vietnam needs to continue to improve its human resource development strategy as well as increase the efficiency of investment in education in the coming years.
Technology transfer in international collaborations is challenging but can bring benefits to both local and foreign‐owned firms in emerging economies. In this paper we focus on conditions for potential technology transfer in emerging economies. We develop a configurational theoretical framework and empirically operationalize it using qualitative comparative analysis. Building on differences in absorptive capacity between these two kinds of firms and relying on data from the construction industry in Ghana, we develop a process model of technology transfer in emerging economies. Our model shows that technology transfer in local and foreign firms can be achieved through different combinations of human resource development and knowledge management, as well as international collaborations and networks. The model also explicates mechanisms leading to potential technology transfer. Based on the findings and the process model, the study makes several contributions to the absorptive capacity and technology transfer literature in emerging economies by shedding light on the underlying processes that foster a firm's ability to absorb technology in international collaborations.
Modern HRM policies and strategies are replacing traditional personnel concepts in HRM practices, which are continuously changing in Nepalese enterprises. This study is focused on assessing the human resource practices in the manufacturing and service institutions in Nepal and their relationship with organizational performance in terms of employee turnover and productivity. The required data were collected from 12 manufacturing companies and 23 service providing institutions by administering a set of questionnaires. Data were processed on SPSS and EViews. The correlation results suggested that there is negative association between HRM practices and employee turnover whereas there is positive association between HRM practices and productivity. The regression results suggested that there is a negative impact of HRM practices on employee turnover whereas there is positive impact on productivity.
As the issue of organizational competitiveness and sustainability in today’s business environment became crucial in all markets, the need to implement the strategic role of human resource management function in organizations becomes a prerequisite. The research problem defined by the authors refers to the definition of the roles that human management function performs in organizations in the Republic of Nigeria in order to examine the level of representation of the strategic role of human resource management function as a prerequisite for sustainability. The main objective of this paper was to define the characteristics of each of the three roles that the human resource management function plays in organizations in Nigeria. This will enable organizations to define more specifically the goals that need to be achieved in order to improve the role of the human resource management function from being administrative to operational and from operational to the strategic one, which is the basis for gaining a competitive advantage and sustainability. Human Resource Management (HRM) is an area of organizational science that deals with the study of all aspects of employment by implementing various activities aimed at aligning the interests of employees with the organization’s strategy. [1] The role of the human resources management function has evolved over time from a traditional and exclusively administrative role, through the modern human resource management in which it had an operational role, up to the strategic role of integrating all activities with the strategic needs of an organization. [2]. It is generally accepted that the basis for gaining a competitive advantage and sustainability is the implementation of the strategic role of human resource management in organizations. [3]. Accordingly, the impact of the human resource management function is observed in relation to its strategic importance for the organization. [4]. Depending on the various circumstances and levels of economic development, the role of human resource management was different. In market developed economies, the role of human resource management is an important strategic function, while in less developed economies, the role of human resource management was under a major influence of the government and administration. [5]. The market of Nigeria, as well as markets of other countries in Central and Western Africa, are becoming attractive for foreign investments. Numerous studies of the role of human resource management function in Western and Central Africa, show a shift in focus from an administrative to a more modern approach to people management. [6]. Since Nigeria became a member of the ECOWAS network, which deals with comparative research of human resource management practices as early as in 1975, with the aim of defining similarities and differences between different countries, primarily in Europe. Numerous researches show positive shifts towards a more modern role of human resource management in organization. [7]. In the research of the impact of human resource management function in relation to its strategic importance for the organization and sustainability, three key issues were defined that are related to the place and status of the human resource management function in top management, the level of participation of the human resource management function in the development of the organization's strategy and the level of participation of line managers in its evaluation and implementation. By analyzing the research studies in Central and Western African countries, especially in Nigeria, Ghana, Benin Republic, Niger, Togo, Cameroon, Chad, Gambia, Angola and Gabon; the authors noticed that there are two key shortcomings. The first one refers to the insufficiently clear boundaries between the administrative, operational and strategic roles that the human resource management function plays in organizations in terms of its integration with the strategic needs and thus the impact it generates in organizations. Namely, the mentioned research studies were focused on the administrative (personnel) and strategic roles of the human resource management function in organizations, neglecting the third role which represents the second development phase in this field and function of human resource management, and which aims to develop and formalize the processes of human resource management in organizations. The second one refers to defining the characteristics of all three roles that the human resource management function performs in organizations. In this paper, the authors focused on overcoming the identified shortcomings, and taking the work of Gooderham et al., and CRANET networks as a baseline for defining the strategic impact of the human resource management function. For research purposes, they defined the characteristics of all three roles and created an extended questionnaire intended to determine if the role of the human resource management function in an organization is administrative, operational (functional) or strategic. Defining the characteristics of each of the three roles that the human resource management function plays in organizations in Nigeria will enable organizations to define more specifically the goals that need to be achieved in order to improve the role of the human resource management function from being administrative to operational and from operational to the strategic one, which is the basis for gaining a competitive advantage and sustainability. Given that the research studies have shown that there are numerous differences that determine the role which the human resource management function assumes in an organization and thus also of the corresponding processes, the authors wanted to examine some of these specifics in the organizations in the Republic of Nigeria. The paper is structured in five parts. The first one deals with defining and analyzing the three basic roles that human resource management can play in an organization with an emphasis on the strategic role that, according to researches, affects the achieving of a competitive advantage and sustainability. In the second part of the paper, the authors introduce readers to the role and practices of human resource management in organizations in Nigeria. The third and fourth parts of the paper deal with research conducted in 86. organizations in Nigeria with the aim of determining the role of human resource management as well as defining the characteristics for each of the defined roles. The fifth part of the paper refers to the discussion about the results and the concluding considerations of the author.
Most successful organization does not own their success solely to detailed planning and implementation of policies and strategies but also to their human resource. Human resource is valuable and serves as the backbone of many organizations. However, as a result of globalization, economic growth and shortage of skilled labor, many organizations are finding it difficult to implement effective human resource management practices. Hence, the need for this study is to explore the effect of human resource management practice on employee performance in some banks in Bauchi local government area. The population of the study is 131, using the Taro Yamane (1967) the sample size in the study is 100. Convenient sampling was carried out of which questionnaires were administered, out of which 96 were returned and 3 were wrongly filled which only 93 were analyzed using descriptive and regression analysis via SPSS 2.0 to test the hypotheses. And after testing and analyzing the study hypotheses, the results showed there is a significant impact of human resource management practices (recruitment, training, compensation, health and retention) on employee's performance in the banks. From the findings of the study it is recommended that the bank management should engage in a more transparent recruitment, implement trainings, compensation shouldn't only be in monetary value, and generally the banking industry should take HRMP seriously since it's having a significant relationship on employee performance.
Pendidikan Bagi Anak Usia Dini sangat diperlukan untuk menciptakan manusia unggul yang berdaya saing dan berakhlak mulia di masa depan. PAUD merupakan bagian dari sisitem pendidikab di Indonesia. pendidika anak usia dini adalah tenaga profesional yang tugasnya meencanakan, melaksanakan pembelajaran dan menilai hasil pembelajaran serta memberikan bimbingan, pelatihan, pengasuhan dan perlindunga. pendidika menjalankan tugas pokok dan fungsinya dengan peran ganda yaitu sbagai pendidik, instruktur dan pelatih. pendidikan anak usia dini memerlukan Sumber daya manusia (SDM) yang kompeten, oleh karena itu SDM merupkan bagian penting dalam pendidikan, SDM merupakan komponen yang paling strtegis, karena yang berkualitas dapatmemanfaatkan komponen lain sehingga tercapai efektifitas dan efisiensi pendidikan anak usia dini (PAUD)
As known that the IT training and management of human resources very important for any organization, the measure of success of any organization is measured by the extent to which pre-established goals are achieved, which depend mainly on the workforce. Therefore, in order to improve the organization's performance, organizations must focus on information technology and invest in this field. However, we do not see many organizations working to invest in the field of information technology, because they do not put it among their priorities, and some of these organizations still feel that training employees to engage in this field is unnecessary. These organizations are working to reduce the budget allocated to IT to reduce annual expenses or to save some revenues. A stratified sampling method was used and 60 employees from a community of 300 were targeted through a self-administered questionnaire. The aim of this questionnaire is to find out the effect of training employees on information technology and motivating them to develop their skills, as well as knowing job satisfaction in small organizations. This study concluded that training on information technology has increased the performance of employees and also had a positive impact on the performance of the organization.
Purpose: Ride-hailing service, after the emergence in Hanoi – capital of Vietnam in 2014, has experienced major development and gradually enhanced the inner-city travelling of citizens. This study aims at investigating technology-based driver productivity perception and identifying several important influencing factors during the period of COVID-19 pandemic Design/methodology/approach: The samples of 370 technology-based drivers have been surveyed to collect significant data about factors impacting on worker productivity in Vietnam ride-hailing service. SPSS 26 software is conducted with two types of analyses, including descriptive analysis and statistical analysis Findings: The findings indicate that social distances, service waste and customer behaviors possess significant impacts on worker productivity in Vietnam ride-hailing services. Several special concerned factors have been identified to raise driver’s awareness of productivity improvement in ride-hailing service. Research, Practical and Social implication: Major implications can be suggested for improving driver productivity during and after COVID-19 pandemic, especially in term of reducing service waste and increasing customer behavior towards ride-hailing services. Originality/value: Basing on research findings, the study becomes significant contribution to further papers as well as service managers to enhance technological driver productivity during COVID-19 pandemic.
Buku Manajemen Sumber daya Pendidikan ini di tulis oleh akademisi untuk memenuhi refesni mengenai Manajemen Sumber Daya Pendidikan.
Tenaga pendidik dan kependidikan dalam proses pendidikan memegang peranan strategi terutama dalam upaya membentuk watak bangsa melalui pengembangan kepribadian dan nilai-nilai yang diinginkan. Tujuan manajemen tenaga pendidik dan kependidikan berbeda dengan manajemen sumber daya manusia pada konteks bisnis. Dunia pendidikan, tujuan manajemen SDM lebih mengarah pada pembangunan pendidikan yang bermutu, membentuk SDM yang handal, produktif, kreatif dan berprestasi.
Labor productivity in general and in enterprises in particular in Vietnam is still lower than that of the whole world and other regional countries, which requires special attention from the Government, and Vietnam Trade Union to be better. On basis of its role and duty, the Vietnam Trade Union has implemented many programs and projects aiming at the improvement of labor productivity in agencies and organizations, especially in enterprises. Within the framework of annual science and technology operations, the topic of “Role of trade unions in improving labor productivity in enterprises in Vietnam today” was approved and implemented through data collection of trade unions, direct survey of enterprises with and without trade union organizations in order to clarify the influence of trade union activities on improving labor productivity of enterprises. The study results are an overview of enterprises and trade union organizations in Vietnam; give a comparison of the labor productivity between enterprises with Trade Union organizations and other enterprises and comparative enterprises; describe the influence and effectiveness of trade union activities on employees in enterprises through a comparison with those without trade union organizations; use the SEM model to analyze the influence of trade union activities on employees’ motivation and work performance to find solutions for improving individual labor productivity and the overall labor productivity of enterprises.
This article aims to explore the ways and means of enhancing productivity, which is emerging as a critical factor in modern manufacturing systems. While organizations prioritize improving the overall productivity of the resources they employ, marketing focuses on optimizing areas that do not waste valuable resources. A pressing concern for many organizations is how to maximize the benefits derived from the resources invested
in manufacturing to produce high-quality products. In the management literature, market segmentation and
productivity have been studied as independent variables. This article intends to demonstrate the close linkage
between market segmentation and productivity. While market segmentation is a subject matter traditionally associated with marketing, productivity is of concern to the manufacturing process. However, if organizations perform market segmentation judiciously, considering the resources available, they can enhance productivity while achieving their segmentation objectives. Market segmentation is not simply a process of dividing or separating markets; creatively employed, it can be the most important process in enhancing productivity.
Lean is a management paradigm that focuses on respect for people and promises improvement in a company’s performance across sectors and sizes. SMEs, in particular, are a point of interest, considering that their malleability in bureaucracy allows for a more significant margin of continuous improvement application. Several organizational theories have gained advantages from technological innovation, and Lean is no exception. The relationships between Lean and new technologies have been studied throughout the years and gained particular interest in the years when Lean started to be integrated with Industry 4.0 (I4.0) to enhance firms’ performance. This article would like to take that discussion from a different point of view, that of I4.0's impact on proving the importance of implementing Lean in manufacturing companies. Through a mixed-method approach of case study and Simulation, this article will answer the identified research question: "How do Lean tools and their integration impact SMEs’ process performance?" by showing the importance of implementing Lean tools in a non-Lean company. The results show that Simulation can identify the Lean tools that benefit the company’s performance most. Managers could benefit from this study by highlighting which tool or combination to invest in according to the impact on operational performance.
The knowledge and skills of workers acquired through training have become essential in dealing with the increasingly rapid changes in technology, products, and systems. The purpose of this research is to analyze the relationship between training and employee performance in a company. In the review presented in this article, the focus is mainly on research published in many reputable national and international journals that is in accordance with the studies in this article, namely human resource management. A type of qualitative research, a type of literature research, is a systematic review of the literature using the appropriate methodological approach. It is used inductively so that it does not raise further questions. This study provides a review of the literature on employee training and its effect on performance in firms and develops and proposes a framework for analyzing training and corporate performance issues to assess the strengths and weaknesses of many previous studies (e.g., research design, variable measurement, and firm performance or estimation methods), to suggest directions for future research, and to improve the accuracy of the results of future research on this topic.
The study explores how social capital affects the performance of small- and medium-sized enterprises (SMEs) in a transition economy. Social capital is referred to as firm’s social interactions with formal and informal creditors, which is financial social capital, and social interactions with politicians and civil servants, which is political social capital. Using a control function estimation method with longitudinal data from repeated surveys of small- and medium-sized enterprises (SMEs) in Vietnam, we find an inverted U-shaped relationship between social capital and SMEs’ performance, which is measured by gross profit and labor productivity. We further show that there is a positive complementary effect between innovation and social capital in affecting performance of SMEs.
O presente estudo buscou levantar os principais dados da produção de biodiesel e girassol em Mato Grosso. Com este levantamento foi possível compreender o cenário da atual produção e se existe espaço para uma diversificação agroenergética no estado. A pesquisa teve como objetivo geral identificar quais os motivos que impedem a cultura do girassol ser utilizada na produção biodiesel. Para encontrar este objetivo geral perseguiu-se os seguintes objetivos específicos: a) Descrever o atual cenário da produção de girassol e de biodiesel em Mato Grosso; b) Comparar a cultura da soja com o girassol verificando as vantagens que o girassol possui em relação a soja no que tange a ser matéria-prima na produção de biodiesel e, c) Apontar os principais motivos que impedem a utilização do girassol na fabricação de biodiesel no estado. A abordagem metodológica utilizada foi a qualitativa/quantitativa com emprego do método comparativo que utilizou o critério de notas para avaliar os fatores de competitividade. O girassol se mostrou viável para a produção de biodiesel, porém precisa superar barreiras ligadas às políticas públicas e de rentabilidade.
Throughout history, the human beings have been exposed to various turning points which are actually very critical. Particularly, in the aftermath of industrialization, in parallel to the emergence of work and worker, the individuals' life which gains a mechanic dimension turned into a different identity with information age. In line with the workers' changing profile considering the fact that the information is the power itself, there is a transformation from personnel management to human resources management. In other words, the paradigms of 21 th century as different from the former ones are shaped within the axis of information which gained a great momentum with globalization by means of which the whole world is familiar with one another and being a village, and the multinational companies that lay an emphasis on the production and the usages of the information and the knowledge worker and talent management practices used for the management of those workers. The personnel management which regards the employee within the mechanic view of life, the human resources management who take into account the employee as an individual more than anything and the talent management practices that employs the worker depending upon talents as well as the innovative and creative thinking ability and which supports the idea that the employee is to make the organizations take a step further gained importance. In the study, based upon the changing definitions of the employee, the transformation from personnel to talent management practices are to be analyzed.
Human Resource Management Practices (HRMPs) has been used to improve the efficiency and effectiveness of the organizational in various contexts. This study focusses on the role and configurations of internal HRM for enhancing process innovation. The data was collected from Indian food processing firms. Food processing firms were chosen considering their strategic importance in a country like India which heavily relies on agriculture for its livelihood. The results indicate that the combination of all internal HRMPs have positive impact and are necessary in a bundle form for augmenting process innovation. However, from the four HRMPs, Research and Development (R & D) personnel had the strongest impact on process innovation.
UNITARY DEVELOPMENTAL THEORY AND ORGANIZATION DEVELOPMENT, VOL. 2: A MODEL OF DEVELOPMENTAL LEARNING FOR CHANGE, AGILITY AND RESILIENCE
Myles Sweeney BA (Psychol.), MBS (Finance), PH.D (Business & Economic Psychol.)
To all Developmentalists, the failure rates for Developmental Interventions across the paradigms of Psychology, Organizational Science and Economics that range from 75% to 100% and verified beyond doubt for organizations in five dense pages in Managing Change by Burnes (2017, x-xiv), should be truly shocking; and while alarming in their own right, they also signal a fundamentally paradigmatic problem that is acknowledged across the board, e.g., in Economics where the leading Developmentalist Jeffrey Sachs refers to the paucity of the models of human-nature available to it, and on which Economics is actually based. Furthermore, across each domain, the same fundamental remedy has been prescribed – i.e., “Learning”, whether it is as Learning Life, Learning Organization, Learning Region, Learning Economy or more recently by Nobel Economist Joe Stiglitz, Learning Society which he even refers to as the only viable Government strategy. However, even though there is such external demand – as well as internal demand from prominent Psychologists such as Dan McAdams who have called for an integration of the theories from various schools to generate a normative model of personality and developmental learning – no such model has been devised – until now!
UDT is a model that not only answers the need in Psychology, but is equally valid and operationalizable across each of these paradigms, i.e., for developmental analysis and intervention for people, organizations, societies and economic systems such as nations when each are defined as Micro-, Meso- and Macro- Socio-Economic Systems as well as sub-systems such as Teams or Regions. The modeling for each of the three levels of system is presented in four different volumes with Vol. 1 dedicated to the Psychology behind the model and what it brings to the discipline in practice; Vol. 2 shows how its application to Organization Development advances prevailing practice; Vol. 3 addresses Societal systems such as Family, Education and Justice; and Vol. 4 does the same for Macro-Economic Development.
The model comprises a sequence of Developmental Phases through which humans naturally learn developmentally, and these phases correspond with – but also complete – existing models, whether that learning is the natural development of a young person or a developmental intervention in an organization. The model also shows how learning stalls in well-established patterns of corresponding Habituation Stages such as Groupthink in organizations which corresponds to Identification Habituation for individuals growing up within restrictive parameters of a parent’s identity. These Phases are grouped into seven Levels and from Immaturity to Maturity, they are called Inversion, Critical, Equilibrial, Operational, Complexity, Creativity and Leadership. The ultimate Level is divided into the Phases of Integrative Leadership and finally Regenerative Leadership which encompasses the ultimate expression of Maturity which is the Regenerative Eco-System whether referring to a family with that Level of parenting or an organization that seamlessly and without friction facilitates Spin-Off Enterprises, M&As, etc.
Along these Phases, Construct Capabilities that are significant to a system’s purpose can be assessed, and development occurs prescriptively along these Capabilities. Failure rates are shown to be either due to interventions being overpitched relative to the previously undiagnosable Learning Level/Change-Capacity of the system, or through missing any of the Phases. UDT diagnosis optimizes Traction for interventions which also gain Sustainability from the normatively prescribed Phases. Such methodology can be used in stand-alone interventions, or to guide and offer structure to post-modern approaches such as “Dialogue” methodologies.
Construct Validity is shown in the degree to which UDT corresponds with modelling from across schools such as Psychoanalysis, Behaviorism, Cognitive Psychology, and Humanist Psychology and also developmental modelling across Organizational Science and Economics. For example, in Psychology, uniquely, the three Stages of Level (1) correspond to DSM-5’s three Clusters of Personality-Disorders and adds value to understanding them. More importantly for OD, it is shown how this Level of Habituated Mindset/Culture is always a permanent drag on development in a process called Inversion that also finds common ground with established theory, and is very clearly observable in the demise of organizations, and the only defence is the internal processes of Regenerative Leadership which cyclically refreshes the developmental process for Capabilities.
Other issues that are elaborated include Linear, Lateral and Integrative Mindset/Culture
with each associated with different Phases of Development and Habituation patterns along the hierarchy. Newly understood is the fact that all human systems are existentially either Linear or Lateral and must build Integrative capacity as well as remaining aware of their underlying biases. While Linearity brings positives such as Purpose and Discipline, its negatives include features such as 1-Dimensionalism, Exclusive Goal Focus, Command and Control, and Red Tape across the Levels such as Self-Destructive Exploitation (1a), Autocracy (2a), Silos (2b), and finally, Bureaucracy (4b) which is the highest Level of Maturity available to Linear-based Culture, which is averse to Change and Creativity. Laterality has strengths related to Change, Social Conscience and Creativity, but is associated with deficits such as Neurotic obstruction of Goal achievement (1b), Paralysis by Analysis (1c), Chronic Inclusiveness (3), Over-Connectedness (5) and Creativity without market connectedness (6).
Most significantly, Culture which is regularly cited as the main intrinsic reason for OD/CM failure and has only been so poorly understood as, e.g., “the way we do things around here” is newly defined in terms of Habituated Stages which correspond to those Cultures described in the most advanced modeling on the subject, but of course, as with all Construct Correspondence, the UDT model fills in gaps and offers a complete and operationalizable solution to the Culture problem. This line of research also critically shows that the UDT Phases are positively correlated with Returns and Productivity for organizations and nations alike. This also suggests that Culture Change which typically focuses on personal issues like Values, Assumptions, Beliefs, becomes another normative praxis-based OD intervention focusing on maturing Capabilities.
UDT similarly transforms the concept of Agility which is shown as its highest three Levels. A a case study of an exemplar Agile Company is examined in detail to show how the organization’s Philosophy, Growth Patterns and prevailing functionalities map onto essential elements of the UDT modeling which ultimately offers a methodology to achieve such Agility for all organizations through their own planning, effort and intrinsic progression rather than trying to simply copy elements of such Complexity. Only 22% of organizations reach these Levels which average 30% premium, but a critical fundamental insight is the finding that systems functioning in the non-Agile Division of the Model (i.e., 78% of organizations) have limited intrinsic Integrative capacity and therefore must begin every CM/OD intervention at the beginning of the normative process rather than use a simple Next-Step strategy which is the typical prevailing approach.
It is also shown how the UDT diagnosis can predict Resilience and how its developmental process builds the espoused combination with increased Agility whereby Resilience progresses from planned responses through the Phases to a capacity at Level 7 for an organization to re-invent itself as required in the face of adversity, and surely, this is the key lesson about Resilience from the Covid Pandemic. Case studies are offered to show how the UDT modeling of maturation and inversion corresponds with historical examples of both successful growth and degradation, as well as good and bad interventions.
For organizations, the model is used in 3 ways: as a Discussion Tool or simple Catalyst for change; as a process of discrete Change Management; and as a more systemic diagnostic-and-developmental intervention for e.g., Team Development, Organization Development, Digital Transformation, M&A Integration, etc.; and examples are offered where the model has been successfully used for each of the three levels of intervention.
We build on an emerging strategy literature that views the firm as a bundle of resources and capabilities, and examine conditions that contribute to the realization of sustainable economic rents. Because of (1) resource-market imperfections and (2) discretionary managerial decisions about resource development and deployment, we expect firms to differ (in and out of equilibrium) in the resources and capabilities they control. This asymmetry in turn can be a source of sustainable economic rent. The paper focuses on the linkages between the industry analysis framework, the resource-based view of the firm, behavioral decision biases and organizational implementation issues. It connects the concept of Strategic Industry Factors at the market level with the notion of Strategic Assets at the firm level. Organizational rent is shown to stem from imperfect and discretionary decisions to develop and deploy selected resources and capabilities, made by boundedly rational managers facing high uncertainty, complexity, and intrafirm conflict.
[Excerpt] The papers in this volume should give the reader a sense of the exciting empirical research that has recently taken place on compensation-related issues. As a set, these papers considerably expand our empirical evidence on the effects of compensation policies. Several papers show that executive compensation is structured in a way that at least implicitly ties executive compensation changes to measures of corporate performance, and —crucially—that doing so leads to improved corporate performance (Leonard, Murphy/Gibbons, Abowd). Others show that compensation systems that pay workers for performance, in the sense of providing explicit or implicit incentives for high levels of performance, can motivate individuals to increase their effort levels (Ehrenberg/Bognanno, Hamermesh, Asch, Kahn/Sherer). Still others show that high-wage policies do have some of the effects that proponents of efficiency wage theories claim for them (Krueger/Groshen, Holzer). Finally, one shows that profit-sharing plans appear, at least weakly, to increase employment stability (Chelius/Smith).
This paper comprehensively examined the linkages between systems of High Performance Work Practices and firm performance. Results based on a national sample of nearly one thousand firms indicate that these practices have an economically and statistically significant impact on both intermediate outcomes (turnover and productivity) and short- and long-term measures of corporate financial performance. Support for the predictions that the impact of High Performance Work Practices is in part contingent on their interrelationships and links with competitive strategy was limited.
Human resource planning (HRP) is necessary to support the implementation of business strategy. In the rapidly changing context of the 1990s, however, traditional approaches are yielding to more flexible forms of planning. This article describes how companies are using HRP to address the impact of change: simpler, shorter-range planning; a focus on issues; focused data analysis; and emphasis on action planning.
This article addresses the issues of competitive advantage and competitor imitation. It is argued that tacitness, complexity, and specificity in a firm's skills and resources can generate causal ambiguity in competency-based advantage, and thus raise barriers to imitation. Reinvestment in causally ambiguous competencies is necessary to protect the advantage. Without reinvestment, attritional effects of continued competitive action will cause decay in the barriers to imitation. From this theorizing, research propositions are suggested, which, ultimately, will lead to an improved understanding of competitive advantage sustainability.
The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.
This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.
With few exceptions, recent developments on the nature of sampling bias have not filtered into sociological practice. Undertakes a brief review of recent advances in the diagnosis of and corrections for 'sample selection bias'.-Author
Organizational routines—multi-actor, interlocking, reciprocally-triggered sequences of actions—are a major source of the reliability and speed of organizational performance. Without routines, organizations would lose efficiency as structures for collective action. But these frequently repeated action sequences can also occasionally give rise to serious suboptimality, hampering performance when they are automatically transferred onto inappropriate situations.
While the knowledgeable design and redesign of routines presents a likely lever for those wishing to enhance organizational performance, the lever remains difficult to grasp because routines are hard to observe, analyze, and describe. This paper argues that new work in psychology on “procedural” memory may help explain how routines arise, stabilize and change. Procedural memory has close links to notions of individual skill and habit. It is memory for how things are done that is relatively automatic and inarticulate, and it encompasses both cognitive and motor activities.
We report an experiment in which paired subjects developed interlocked task performance patterns that display the chief characteristics of organizational routines. We show evidence from their behavior supporting the claim that individuals store their components of organizational routines in procedural memory. If routines are stored as distributed procedural memories, this may be the source of distinctive properties reported by observers of organizational routines. The paper concludes with implications for both research and practice.
This problem solver offers a wealth of remedies for American industry's neglect of competitive manufacturing strategies and its resulting loss of productivity. Drawing upon the example of world-class and foreign manufacturers, the book illustrates what American industry must do in terms of manufacturing capability to regain a preeminent spot in the marketplace.
A model of the determinants of profit center manager (PCM) compensation is presented and tested. Market, political and human capital factors are included in the model development and testing. Based on a sample from several industries, this study found a complex set of variables affecting PCM compensation.
A decade of observed large differences in productivity driven competitive advantage cannot be explained by traditional productivity notions or conventional strategic analysis. We conclude on both empirical and theoretical grounds that most traditional sources of productivity have encountered diminishing marginal returns. Large competitive differences appear to arise from a new productivity source, nonlinear systems dynamics in business organizations. This has both theoretical and practical consequences for managing toward competitive advantage and requires a new approach to management, control, and organization.
A model of the determinants of chief executive (CEO) compensation is presented and tested. Based on a sample from the leisure industry, the study finds that CEO pay has complex links to several factors: firm size, complexity, performance, CEO power, board vigilance, and the CEO's human capital. The study includes a separate examination of CEO salary and bonus, as well as a test of pay determination across McEachern's (1975) ownership categories.
In this paper we examine the impact various compensation programs have upon business-level strategy for technology-intensive firms. Similarly, we examine the effect of centralization of R&D and non-R&D decision-making, formality of procedures, and SBU size on competitive strategy. Analysis of data from 79 SBUs suggest that there is a resource trade-off between marketing-oriented strategies and R&D-oriented strategies, and that managers who operate under certain types of compensation programs will tend to favor R&D/innovation strategies and capital investment over other alternatives. Structure and competitive position also appear to play a significant role in determining technology and investment strategy.
This study tests six hypotheses on the extent to which a match between compensation and diversification strategies affects firm performance. Using both archival and survey data, results generally support the notion that a firm's compensation strategies make a greater contribution to firm performance if these are attuned to extent and process of corporate diversification. The paper concludes with a set of recommendations for future research on compensation-diversification strategy relations and their interactive effect on firm performance.
Recent evidence suggests that large multibusiness firms can enhance performance by developing and exploiting corporate level distinctive competencies. In this study of 185 industrial firms, the relationships between corporate level distinctive competencies and performance were examined across firms using different diversification strategies and having different corporate structures. The corporate level distinctive competencies/performance relationships were found to vary by type of diversification strategy but not by type of corporate structure. In addition, only a small relationship was found to exist between diversification strategy and corporate structure. The specific relationships between corporate level distinctive competencies and performance and their normative implications are explored.
There are not many books that are genuine classics, and only a handful in business and management whose insights and ideas last for 50 years and more. This book is one of the very few 'must reads' for anybody seriously interested in the role of management within the firm. Originally published in 1959, The Theory of the Growth of the Firm has illuminated and inspired thinking in strategy, entrepreneurship, knowledge creation, and innovation. Edith Penrose's tightly-argued classic laid the foundations for the resource based view of the firm, now the dominant framework in business strategy. She analyses managerial activities and decisions, organizational routines, and also the factors that inevitably limit a firm's growth prospects. For this new anniversary edition, Christos Pitelis has written a new introduction which both tells the story of Penrose's extraordinary life, and provides a balanced assessment of her key ideas and their continuing relevance and freshness.
Given incomplete factor markets, appropriate time paths of flow variables must be chosen to build required stocks of assets. That is, critical resources are accumulated rather than acquired in "strategic factor markets" (Barney [Barney, J. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.]). Sustainability of a firm's asset position hinges on how easily assets can be substituted or imitated. Imitability is linked to the characteristics of the asset accumulation process: time compression diseconomies, asset mass efficiencies, inter-connectedness, asset erosion and causal ambiguity.
Much of the current thinking about competitive strategy focuses on ways that firms can create imperfectly competitive product markets in order to obtain greater than normal economic performance. However, the economic performance of firms does not depend simply on whether or not its strategies create such markets, but also on the cost of implementing those strategies. Clearly, if the cost of strategy implementation is greater than returns obtained from creating an imperfectly competitive product market, then firms will not obtain above normal economic performance from their strategizing efforts. To help analyze the cost of implementing strategies, we introduce the concept of a strategic factor market, i.e., a market where the resources necessary to implement a strategy are acquired. If strategic factor markets are perfect, then the cost of acquiring strategic resources will approximately equal the economic value of those resources once they are used to implement product market strategies. Even if such strategies create imperfectly competitive product markets, they will not generate above normal economic performance for a firm, for their full value would have been anticipated when the resources necessary for implementation were acquired. However, strategic factor markets will be imperfectly competitive when different firms have different expectations about the future value of a strategic resource. In these settings, firms may obtain above normal economic performance from acquiring strategic resources and implementing strategies. We show that other apparent strategic factor market imperfections, including when a firm already controls all the resources needed to implement a strategy, when a firm controls unique resources, when only a small number of firms attempt to implement a strategy, and when some firms have access to lower cost capital than others, and so on, are all special cases of differences in expectations held by firms about the future value of a strategic resource. Firms can attempt to develop better expectations about the future value of strategic resources by analyzing their competitive environments or by analyzing skills and capabilities they already control. Environmental analysis cannot be expected to improve the expectations of some firms better than others, and thus cannot be a source of more accurate expectations about the future value of a strategic resource. However, analyzing a firm's skills and capabilities can be a source of more accurate expectations. Thus, from the point of view of firms seeking greater than normal economic performance, our analysis suggests that strategic choices should flow mainly from the analysis of its unique skills and capabilities, rather than from the analysis of its competitive environment.
Development of a firm's core competencies is identified as the key for global leadership and competitiveness in the 1990s. NEC, Honda, and Canon are used as exemplars of firms that conceive of themselves in terms of core competencies. Core competencies are the organization's collective learning and ability to coordinate and integrate multiple production skills and technology streams; they are also about the organization of work and delivery of value in services and manufacturing. A firm must conceive of itself as a portfolios of competencies, instead of a portfolio of strategic business units (SBUs). The latter limit the ability of firms to exploit their technological capabilities; they are often dependent on external resources. The real source of advantage lies in management's ability to consolidate corporate-wide technologies and production skills into competencies, which will allow individual businesses to adapt to emerging opportunities. Cultivating core competencies does not mean outspending rivals on RD (2) they significantly contribute to the customer benefits of the end-product; and (3) they should be difficult for competitors to imitate. Cultivating core competencies also means benefiting from alliances and establishing competencies that are evolving in existing businesses. The tangible links between core competencies and end products are core products, which embody one or more core competencies. Companies must maximize their world manufacturing share in core products. Global leadership is won by core competence, core products, and end products; global brands are built by proliferating products out of core competencies. Firms must avoid the tyranny of the SBU, the costs of which are (1) under investment in developing core competencies and core products, (2) imprisoned resources, and (3) bounded innovation. Top management must add value to a firm by developing strategic architecture, which will avoid fragmenting core competencies, establish objectives for competence building, make resource allocation priorities transparent and consistent, ensure competencies are corporate resources, reward competence carriers (personnel who embody core competencies), and focus strategy at the corporate level. A firm must be conceived of as a hierarchy of core competences, core products, and market-focused business units. Obsession with competence building will mark the global winners of the 1990s. (TNM)
Development of a firm's core competencies is identified as the key for global leadership and competitiveness in the 1990s. NEC, Honda, and Canon are used as exemplars of firms that conceive of themselves in terms of core competencies. Core competencies are the organization's collective learning and ability to coordinate and integrate multiple production skills and technology streams; they are also about the organization of work and delivery of value in services and manufacturing. A firm must conceive of itself as a portfolios of competencies, instead of a portfolio of strategic business units (SBUs). The latter limit the ability of firms to exploit their technological capabilities; they are often dependent on external resources. The real source of advantage lies in management's ability to consolidate corporate-wide technologies and production skills into competencies, which will allow individual businesses to adapt to emerging opportunities. Cultivating core competencies does not mean outspending rivals on R&D, sharing costs among SBUs, or the price/performance of end products. Three tests identify such competencies: (1) they provide potential access to a wide variety of markets; (2) they significantly contribute to the customer benefits of the end-product; and (3) they should be difficult for competitors to imitate. Cultivating core competencies also means benefiting from alliances and establishing competencies that are evolving in existing businesses. The tangible links between core competencies and end products are core products, which embody one or more core competencies. Companies must maximize their world manufacturing share in core products. Global leadership is won by core competence, core products, and end products; global brands are built by proliferating products out of core competencies. Firms must avoid the tyranny of the SBU, the costs of which are (1) under investment in developing core competencies and core products, (2) imprisoned resources, and (3) bounded innovation. Top management must add value to a firm by developing strategic architecture, which will avoid fragmenting core competencies, establish objectives for competence building, make resource allocation priorities transparent and consistent, ensure competencies are corporate resources, reward competence carriers (personnel who embody core competencies), and focus strategy at the corporate level. A firm must be conceived of as a hierarchy of core competences, core products, and market-focused business units. Obsession with competence building will mark the global winners of the 1990s. (TNM)
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable overtime this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage—value, rareness, imitability, and substitutability—are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.ABSTRACT FROM AUTHOR
This study develops an evolutionary theory of the capabilities and behavior of business firms operating in a market environment. It includes both general discussion and the manipulation of specific simulation models consistent with that theory. The analysis outlines the differences between an evolutionary theory of organizational and industrial change and a neoclassical microeconomic theory. The antecedents to the former are studies by economists like Schumpeter (1934) and Alchian (1950). It is contrasted with the orthodox theory in the following aspects: while the evolutionary theory views firms as motivated by profit, their actions are not assumed to be profit maximizing, as in orthodox theory; the evolutionary theory stresses the tendency of most profitable firms to drive other firms out of business, but, in contrast to orthodox theory, does not concentrate on the state of industry equilibrium; and evolutionary theory is related to behavioral theory: it views firms, at any given time, as having certain capabilities and decision rules, as well as engaging in various ‘search' operations, which determines their behavior; while orthodox theory views firm behavior as relying on the use of the usual calculus maximization techniques. The theory is then made operational by the use of simulation methods. These models use Markov processes and analyze selection equilibrium, responses to changing factor prices, economic growth with endogenous technical change, Schumpeterian competition, and Schumpeterian tradeoff between static Pareto-efficiency and innovation. The study's discussion of search behavior complicates the evolutionary theory. With search, the decision making process in a firm relies as much on past experience as on innovative alternatives to past behavior. This view combines Darwinian and Lamarkian views on evolution; firms are seen as both passive with regard to their environment, and actively seeking alternatives that affect their environment. The simulation techniques used to model Schumpeterian competition reveal that there are usually winners and losers in industries, and that the high productivity and profitability of winners confer advantages that make further success more likely, while decline breeds further decline. This process creates a tendency for concentration to develop even in an industry initially composed of many equal-sized firms. However, the experiments conducted reveal that the growth of concentration is not inevitable; for example, it tends to be smaller when firms focus their searches on imitating rather than innovating. At the same time, industries with rapid technological change tend to grow more concentrated than those with slower progress. The abstract model of Schumpeterian competition presented in the study also allows to see more clearly the public policy issues concerning the relationship between technical progress and market structure. The analysis addresses the pervasive question of whether industry concentration, with its associated monopoly profits and reduced social welfare, is a necessary cost if societies are to obtain the benefits of technological innovation. (AT)
The identification of sellers and the discovery of their prices is given as an example of the role of the search for information in economic life.
This study of employer hiring practices is one of a series of analyses of the San Francisco Bay Area labor market undertaken by the Institute of Industrial Relations of the University of California, Berkeley. (Author's abstract courtesy EBSCO.)
The effect of compensation program and structure on SBU competitive strategy: A study of technology-inten-sive firms', Strategic Management JournalStructure and process of diversification, compensation strategy, and firm performancePreparing today's lead-ers for tomorrow's realities
- C S Galbraith
- G B Merrill Gomez-Mejia
Galbraith, C. S. and G. B. Merrill (1991). 'The effect of compensation program and structure on SBU competitive strategy: A study of technology-inten-sive firms', Strategic Management Journal, 12(5), Gomez-Mejia, L. R. (1992). 'Structure and process of diversification, compensation strategy, and firm performance', Strategic Management Journal, 13(5), Hambrick, D. C., J. W. Fredrickson, L. B. Korn and R. M. Ferry (August 1989). 'Preparing today's lead-ers for tomorrow's realities', Personnel, pp. 23-26.
PersonneWHuman Resource Man-agement
- H G Heneman
- D P Schwab
- J A Fossum
- L D Dyer
Heneman, H. G., D. P. Schwab, J. A. Fossum and L. D. Dyer (1989). PersonneWHuman Resource Man-agement (4th ed.). Irwin, Homewood, IL.
Human resource management innovationRecruiting patterns of labor mar-kets
- E E Kossek
- F T Malm
Kossek, E. E. (1987). 'Human resource management innovation', Human Resource Management, 26, Malm, F. T. (1954). 'Recruiting patterns of labor mar-kets', Industrial and Labor Relations Review, pp. 353-370. pp. 381-397. pp. 7 1-92. pp. 507-525.
Human Resource Management: Gaining a Competitive AdvantageRedundant, overlapping organiza-tion: A Japanese approach to managing the inno-vation process', California Management Review
- R A Noe
- J R Hollenbeck
- B Gerhart
- P M Wright
Noe, R. A., J. R. Hollenbeck, B. Gerhart and P. M. Wright (1994). Human Resource Management: Gaining a Competitive Advantage. Richard D. Irwin, Burr Ridge, IL. Nonaka, I. ( 1990). 'Redundant, overlapping organiza-tion: A Japanese approach to managing the inno-vation process', California Management Review, Spring, pp. 27-38.
Causal ambi-guity, barriers to imitation, and sustainable competi-tive advantageInformation networks in labor mar-kets
- R Reed
- R J Defillippi
Reed, R. and R. J. DeFillippi (1990). 'Causal ambi-guity, barriers to imitation, and sustainable competi-tive advantage', Academy of Management Review, Rees, A. (1966). 'Information networks in labor mar-kets', American Economic Review, 56, pp. 559-566.
Recruiting and organizational participation Personnel ManagementControl theory in strategic human resource management: The mediating effect of administrative information', Academy of Manage-ment
- D P Schwab
- Allyn
- Bacon
- Boston
- S A Snell
Schwab, D. P. (1982). 'Recruiting and organizational participation'. In K. Rowland and G. Ferris (eds.), Personnel Management. Allyn & Bacon, Boston, Snell, S. A. (1992). 'Control theory in strategic human resource management: The mediating effect of administrative information', Academy of Manage-ment Journal, 35(2), pp. 292-321.