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Change and Globalisation: is HRM converging? – and what do we do about the answer?

PeopleinAid conference: Strategic HR in a Global Context 7 th February 2007. Change and Globalisation: is HRM converging? – and what do we do about the answer?. Chris Brewster Professor of International Human Resource Management Henley Management College.

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Change and Globalisation: is HRM converging? – and what do we do about the answer?

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  1. PeopleinAid conference: Strategic HR in a Global Context 7th February 2007 Change and Globalisation: is HRM converging? – and what do we do about the answer? Chris Brewster Professor of International Human Resource Management Henley Management College

  2. Change and Globalisation: is HRM converging?– and what do we do about the answer? Programme • Does Globalisation apply to HRM too? Are we becoming more alike in the way we manage people? • Is the impact of HRM on Performance being Globalised? Do different things work in different countries?

  3. Convergence vs Divergence (or Stasis) • convergence theories • market-led/US • institutional/European • world vs regional • divergence theories; or stasis • maybe it’s a bit of each…..

  4. The Cranet surveys • 42 countries (24 in Europe): partner in each • repeating every 3 years • 6000+ responses each round • Questionnaire to senior HR; “factual” not perceptual • 40 questions (2-44 responses each Q) + 19 demographic questions • Representative, not panel

  5. Directional Convergence E X T E N T T I M E

  6. Final Convergence E X T E N T T I M E

  7. Findings on Directional convergence • convergence (increases in) • strategic potential of HR department; • assignment of HRM to line; • HR professionalisation; • employee resourcing; • Individualisation of employee relations • increased information to employees; • contingent compensation systems. • no convergence • staff ratio; • employee development

  8. Findings on Final convergence • No final convergence of HR configuration • No final convergence of HR practices

  9. Conclusions (i) • Evidence of Directional convergence • No evidence of Final convergence • Similar trends do not mean countries are getting more alike in the way they manage their HRM • There is no “one-size-fits-all”

  10. What does this mean for performance? • The Cranet survey • Identifying high performers • profit • market share • quality • Identifying HRM practices linked to high performance (self organising maps)

  11. Strategic HRM within the European Union Region 1 Region 2 Region 3

  12. Cluster 1: north-west Austria Denmark Finland Germany Netherlands Sweden Cluster 2: anglo-irish UK Ireland Cluster 3:central southern Belgium France Greece Italy Portugal Spain Selected states by cluster

  13. HRM practices linked to performance in Europe Evaluating HRM Monitoring and evaluating training effectiveness Career management Merit pay Communication on change (-)

  14. Conclusions (ii) • Evidence of Directional convergence • No evidence of Final convergence • Similar trends do not mean countries are getting more alike in the way they manage their HRM • There is no “one-size-fits-all” • HR practices linked to high performance also vary with country • Understand HR in the countries in which you operate

  15. So, what does this mean for practitioners? • Each country is different (a wider range of countries would have shown more difference); and • What works in HRM is different for each country; but… • We have to ensure good practice, fairness and equity across all countries; so • We should concentrate on the principles, not the systems, processes or procedures. • Can we monitor the outputs of our Human Resource Management?

  16. PeopleinAid conference: Strategic HR in a Global Context 7th February 2007 Change and Globalisation: is HRM converging?– and what do we do about the answer? Thank You! Chris Brewster Professor of International Human Resource management Henley Management College

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