SHRM and context: Why firms want to be as different as legitimately possible.

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Purpose
The purpose of this paper is to raise awareness that despite many calls for attention to a firm’s context in considering consequences for human resource management (HRM) and performance, research progress to date has been limited at best, although promising signs of change are emerging. Moreover, what has been defined as “performance” is coming under increasing scrutiny, with a more holistic concept emerging that balances both a firm’s financial performance and employee well-being. The question remains whether this is a mutual gains or conflicting outcomes situation for the firm vis-á-vis the employee.
Design/methodology/approach
This paper presents a framework that facilitates a broader context-centric analysis of the HRM and performance relationship. In so doing, the authors posit that context should no longer merely be an obligatory control variable in a research design, but instead should be explicitly incorporated in both theory development and empirical model testing.
Findings
The Contextual SHRM Framework demonstrates how key organizational actors can balance competitive, heritage and institutional mechanisms to create an appropriate strategic HRM (SHRM) system capable of delivering organizational outcomes that balance financial and employee well-being outcomes, which in the long run impact societal well-being that, in turn, recreates the firm’s operating context. At the heart of the framework is an iterative process between context and the SHRM system, achieving an appropriate level of dynamic fit across the various components.
Practical implications
In addition to empirical research, the framework has to date been widely used in executive development training, serving as a force field analysis tool allowing simultaneous consideration of the external and internal elements of a firm’s context, key organizational actors and SHRM system outcomes. HR professionals applying the framework to their organization can add value by demonstrating the clear linkage between the business strategy, the HRM system and the firm’s operating context.
Originality/value
This paper is designed to encourage new directions in future research and practice. The Contextual SHRM Framework is presented as a novel tool to facilitate advancement of the HRM and performance field of study.
LanguageEnglish
Pages202-210
JournalJournal of Organizational Effectiveness: People and Performance
Volume5
Issue number3
DOIs
StatePublished - 2018

Fingerprint

Strategic HRM
Human resource management
Employee well-being
Human resource management systems
Business strategy
Financial performance
Development model
Model testing
Research design
Empirical research
Employees
Well-being
Heritage
Empirical model
Linkage
Human resource management research
Control variable
Competitive balance
Design methodology
Strategic human resource management

Cite this

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title = "SHRM and context: Why firms want to be as different as legitimately possible.",
abstract = "PurposeThe purpose of this paper is to raise awareness that despite many calls for attention to a firm’s context in considering consequences for human resource management (HRM) and performance, research progress to date has been limited at best, although promising signs of change are emerging. Moreover, what has been defined as “performance” is coming under increasing scrutiny, with a more holistic concept emerging that balances both a firm’s financial performance and employee well-being. The question remains whether this is a mutual gains or conflicting outcomes situation for the firm vis-{\'a}-vis the employee.Design/methodology/approachThis paper presents a framework that facilitates a broader context-centric analysis of the HRM and performance relationship. In so doing, the authors posit that context should no longer merely be an obligatory control variable in a research design, but instead should be explicitly incorporated in both theory development and empirical model testing.FindingsThe Contextual SHRM Framework demonstrates how key organizational actors can balance competitive, heritage and institutional mechanisms to create an appropriate strategic HRM (SHRM) system capable of delivering organizational outcomes that balance financial and employee well-being outcomes, which in the long run impact societal well-being that, in turn, recreates the firm’s operating context. At the heart of the framework is an iterative process between context and the SHRM system, achieving an appropriate level of dynamic fit across the various components.Practical implicationsIn addition to empirical research, the framework has to date been widely used in executive development training, serving as a force field analysis tool allowing simultaneous consideration of the external and internal elements of a firm’s context, key organizational actors and SHRM system outcomes. HR professionals applying the framework to their organization can add value by demonstrating the clear linkage between the business strategy, the HRM system and the firm’s operating context.Originality/valueThis paper is designed to encourage new directions in future research and practice. The Contextual SHRM Framework is presented as a novel tool to facilitate advancement of the HRM and performance field of study.",
author = "Elaine Farndale and Jaap Paauwe",
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SHRM and context : Why firms want to be as different as legitimately possible. / Farndale, Elaine; Paauwe, Jaap.

In: Journal of Organizational Effectiveness: People and Performance, Vol. 5, No. 3, 2018, p. 202-210.

Research output: Contribution to journalArticleScientificpeer-review

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T2 - Journal of Organizational Effectiveness: People and Performance

AU - Farndale,Elaine

AU - Paauwe,Jaap

PY - 2018

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AB - PurposeThe purpose of this paper is to raise awareness that despite many calls for attention to a firm’s context in considering consequences for human resource management (HRM) and performance, research progress to date has been limited at best, although promising signs of change are emerging. Moreover, what has been defined as “performance” is coming under increasing scrutiny, with a more holistic concept emerging that balances both a firm’s financial performance and employee well-being. The question remains whether this is a mutual gains or conflicting outcomes situation for the firm vis-á-vis the employee.Design/methodology/approachThis paper presents a framework that facilitates a broader context-centric analysis of the HRM and performance relationship. In so doing, the authors posit that context should no longer merely be an obligatory control variable in a research design, but instead should be explicitly incorporated in both theory development and empirical model testing.FindingsThe Contextual SHRM Framework demonstrates how key organizational actors can balance competitive, heritage and institutional mechanisms to create an appropriate strategic HRM (SHRM) system capable of delivering organizational outcomes that balance financial and employee well-being outcomes, which in the long run impact societal well-being that, in turn, recreates the firm’s operating context. At the heart of the framework is an iterative process between context and the SHRM system, achieving an appropriate level of dynamic fit across the various components.Practical implicationsIn addition to empirical research, the framework has to date been widely used in executive development training, serving as a force field analysis tool allowing simultaneous consideration of the external and internal elements of a firm’s context, key organizational actors and SHRM system outcomes. HR professionals applying the framework to their organization can add value by demonstrating the clear linkage between the business strategy, the HRM system and the firm’s operating context.Originality/valueThis paper is designed to encourage new directions in future research and practice. The Contextual SHRM Framework is presented as a novel tool to facilitate advancement of the HRM and performance field of study.

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JO - Journal of Organizational Effectiveness: People and Performance

JF - Journal of Organizational Effectiveness: People and Performance

SN - 2051-6614

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ER -