Here is the recommended approach to take for each article:
There are two (2) peer reviewed articles you need to read for this discussion.
Human resource management. (2014). Human Resource Management, 53(6), 1–16.This article is a compilation of select abstracts of what is currently trending in HR. Not in itself an article.Use this as resource to select a trend you find of interest.Then search for a peer-reviewed article focused within your selected trend—this then becomes your second article that you will read and use in the discussion.
The last point, you have latitude for the case analysis—you can rely on an anecdotal description applying what you have read within your own organization or experience. Or you can seek a case study within the literature to apply what you have read.
In summary, read the Swart and Kinnie (2014) article and find another article based on a trend you select from Human Resource Management (2014). Apply MEAL to these two articles. Then do a case analysis of the trends just described based on your own experience (opinion or personal observation is permitted, please be specific) or research an application to a case study company.
Use APA headings to format your initial discussion post. Use the APA Module, linked in the Resources, to guide your formatting. Use the following list to develop your post and include the information you gather under its corresponding heading:
RECONSIDERING BOUNDARIES:
HUMAN RESOURCE MANAGEMENT
IN A NETWORKED WORLD
JUANI SWART AND NICHOLAS KINNIE
In the twenty-first century, work activities tend to span organizational boundaries and take place in projects or networks. This cross-boundary working
has major implications for current HRM models that are more suited to an
industrial economy, which assumes a single employer and where work is
carried out within a set of clearly defined boundaries. We draw on a decade
of empirical research in cross-boundary contexts to identify: (1) three types
of networks (interactive, interwoven, and integrated) that vary according to
their boundary properties, the focus of the work activity, and the prominent
identification; (2) the particular structural, relational, and knowledge-based
tensions (Phelps, Heidl, & Wadhwa, 2012) that are inherent in each networked
context; and (3) three HRM models (buffering, borrowing, and balancing) that
are appropriate to sustain networked working in these contexts. The main
contribution of the article is the identification of HRM models in networked
contexts. © 2014 Wiley Periodicals, Inc.
Keywords: commitment, human capital, strategic issue management,
restructuring, strategic HR
Introduction
T
he aim of this article is to develop a
typology of HRM models that addresses the challenges inherent in
contemporary forms of organizing.
An analysis of present-day work illustrates that we have moved from operating
within a single set of clearly defined organizational boundaries to a networked way of
working where products and services are cocreated (Donnelly, 2009, 2011; Fincham, 1999;
Marchington, Grimshaw, Rubery, & Willmott,
2005; Marchington, Rubery, & Grimshaw,
2011; Powell & Grodal, 2005; Rubery, Cooke,
Marchington, & Earnshaw, 2003; Singh &
Fleming, 2010; Sturdy & Wright, 2011;
Wuchty, Jones, & Uzzi, 2007). We therefore
cannot merely focus on HRM practices within
the firm and need to ask: How are HRM models
configured within networked contexts? We address this question by drawing on a decade of
research into cross-boundary working, predominantly in professional services firms
(PSFs), which are highly appropriate for this
research question given that they are considered to be representative of contemporary
Correspondence to: Juani Swart, Work and Employment Research Centre, School of Management, University of
Bath, Bath BA2 7AY, United Kingdom, Phone: +44 (0)1225 38 3108, E-mail: J.A.Swart@bath.ac.uk.
Human Resource Management, March–April 2014, Vol. 53, No. 2. Pp. 291–310
© 2014 Wiley Periodicals, Inc.
Published online in Wiley Online Library (wileyonlinelibrary.com).
DOI:10.1002/hrm.21551
292
HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2014
forms of organizing (Malhotra & Morris,
2009).
The raison d’être of a configuration of
HRM practices is to enable effective working
both individually and collectively. The way in
which we work has changed significantly during the past couple of decades. Organizations
in a knowledge-based economy rely not only
on their own knowledge and skills to generate
valuable outputs but they also draw on interorganizational resources to create sustained
competitive advantage (Fisher, Wasserman,
Wolf, & Hannan Wears, 2008; Lepak & Snell,
2007; Marchington et al., 2005, 2011; Rubery
et al., 2003; Swart, 2011). Work therefore tends
to be carried out in cross-boundary contexts
and, consequently, firms manage people they do not directly
A series of tensions employ and employ people they
do not manage. Clients become
will inevitably be
involved in the HRM practices of
the employing organization, coninherent within
tributing, for example, to estabnetworked working, lishing recruitment standards,
assessing candidates, and rendering the final employment deciand we need to
sion (Kinnie & Parsons, 2004).
pinpoint precisely
If this “networked working”
is
so
familiar to us, why are curhow HRM practices
rent HRM models more suited
to an industrial economy where
are adopted across
employees are encouraged to idenvarious networked
tify with just one employer who
has strategic control over the HRM
contexts to seek
practices (i.e., resourcing, development, and performance and
to resolve these
reward management)? It is because
challenges.
of this misalignment between
twenty-first-century working and
theoretical models that we need to
re-examine fundamentally the boundaries of
the firm and activities of contemporary working in order to develop our understanding of
extant HRM models that are fit for purpose
to facilitate the achievement of individual-,
firm-, and network-level objectives. A series
of tensions will inevitably be inherent within
networked working, and we need to pinpoint
precisely how HRM practices are adopted
across various networked contexts to seek to
resolve these challenges.
The main contribution of the article is the
identification of three networked HRM models that address the tensions inherent in contemporary forms of organizing. We develop
these three models in various ways. First, we
illustrate that networked working is a prominent feature of current-day employment by
adopting an activity perspective (Kogut &
Zander, 1996) to identify the boundaries of
work activities and, hence, employment
models. Second, we acknowledge network
variation and identify three prominent network types from our data analysis—namely
interactive, interwoven, and integrated networks, which vary according to: (1) boundary properties, (2) work activity focus, and
(3) the prominent identification. Third,
we discuss the structural, relational, and
knowledge-based (Phelps et al., 2011) tensions
that exist in each networked context between
the network and firms and between employees and firms. Finally, we identify, from our
data analysis, appropriate networked HRM
models (i.e., buffering, borrowing, and balancing) and illustrate how each model addresses
its associative tensions. We argue that HRM
practices have an impact on the boundaries
of the firm, which in turn influences the flow
of human capital between the various stakeholders in the network.
Previous Research: The Networked
Way of Working
If work is no longer organized only within a
single organization, then we need to identify
an appropriate unit of analysis for contemporary HRM models. We follow a logic presented
by Kogut and Zander (1996), which states
that boundaries are created by activities.
Furthermore, research indicates that work activities and the associative outputs of economic value extend beyond the boundaries
of the firm (Marchington et al., 2005, 2011;
Nikolova, Reihlen, & Schlapfner, 2009; Phelps
et al., 2012; Sturdy &Wright, 2011) to include
clients, collaborators, and competitors. The
activity of work in a networked way, such as
inter-organizational project teams, has theoretical implications for HRM practices at both
the organizational and the individual level.
Human Resource Management DOI: 10.1002/hrm
RECONSIDERING BOUNDARIES: HUMAN RESOURCE MANAGEMENT
In the section that follows, we put forward
the organizational perspective by drawing on
network theory (Burt, 1992; Dyer & Nobeoka,
2000; Granovetter, 1973; Gulati, Nohria, &
Zaheer, 2000; Moliterno & Mahony, 2011;
Podolny, 2001; Powell & Grodal, 2005). We
then discuss the individual experience of
working across boundaries by drawing on the
theoretical construct of liminality.
Networked Working: The
Organizational Context
We define networked working as the cocreation of products and services that have
economic value for stakeholders extending
beyond the boundaries of a single organization. The conduct and performance of firms
can be more fully understood by examining
the synergies and tensions within the network of relationships within which they are
embedded (Brusoni, Prencipe, & Pavitt, 2001;
Dyer & Nobeoka, 2000; Granovetter, 1995;
Gulati et al., 2000, p. 203; Powell, Koput, &
Smith-Doerr, 1996). This relational approach is
often contrasted with the atomistic approach,
which focuses mainly on “within-firm variables” to explain various outcomes. The relational approach considers the structural and
sociopolitical domains of the social context
within which firms operate in order to understand between-firm differences (Gulati et al.,
2000; Uzzi, 1997). This suggests that we need
to consider how suppliers, partners, clients,
and customers influence the way in which
people are managed. However, the relational
perspective also calls for the reconsideration
of the very focus of HRM practices (i.e., our
definition of an “employee”). That is to say,
we can no longer assume that one firm has
“legal control” over its employees
(Marchington et al., 2005, 2011; Rubery et al.,
2003). This means that the HRM practices are
also no longer the property of a single firm
but they become the strategic imperative for a
network of organizations. This may lead to tensions between the network and its members
as organizations continue to compete for
human capital.
The dominant categories in the literature
on networked working include communities
Human Resource Management DOI: 10.1002/hrm
IN A
NETWORKED WORLD
293
and projects (Dal Fiore, 2007, p. 860), each
of which has distinctive characteristics. The
driving force of communities is to maximize
social control on individuality, while networks seek to maximize individual control
on social interaction. Communities tend to
be sustained through shared identity as well
as shared practice (Wenger, 2000); however,
they do not typically operate to achieve
commercial outputs and function more as
socializing entities. The lens of a community
becomes less useful for the study of crossboundary working as we are interested in
the activities that produce outputs of economic value. In such contexts the resource
base extends beyond the boundaries of the
firm (Fey & Birkinshaw, 2005) to
include intra- and inter-organizaThe conduct and
tional knowledge (Kaše, Paauwe, &
Zupan, 2009) and it re-configures
performance of
around existing members.
firms can be more
Work activities in networks
share
similar
characteristics
fully understood
with project forms of organizing (Drucker, 1998; Nonaka &
by examining the
Takeuchi, 1995) and project-based
learning, but they also differ from
synergies and
projects in particular ways. First,
tensions within
in current literature, projects are
often considered to exist within
the network of
the boundaries of the firm (Bredin
& Soderlund, 2011; Scarbrough relationships within
et al., 2004); however, networked
which they are
working extends beyond the firm
boundaries. Second, the focal
embedded.
resource in projects is often
thought to be human capital within the organization, but networked
working is reliant upon multidimensional
resources such as know-how and, crucially,
relationships that often act as the glue that
holds the network together (Swart & Kinnie,
2013). Third, the theoretical lens of a project
is often lenticular (Turner, Swart, & Maylor,
2012), although the practice may differ. We
focus on contemporary organizational forms,
which extend beyond intra-organizational
projects to include inter-organizational projects such as integrated project teams (IPTs)
and draw attention to the dynamic and iterative nature of networked working wherein the
294
HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2014
client and several other stakeholders play an
active role in managing people and shaping
knowledge-based outputs. We are also mindful of the tensions, such as conflicting objectives and competition over scarce resources
that exist between various stakeholders in the
network and illustrate how networked HRM
practices seek to manage these challenges.
In summary, we argue that it is appropriate to take an activity perspective (Kogut &
Zander, 1996) to identify the boundaries of
employment models in the twenty-first century. When we do so, it becomes apparent
that organizations operate within networks
to “get things done.” This networked working calls for HRM models to move from “owning and controlling” employment
relationships and resources to an
Professional
interactive model of generating
human capital synergies at the level
contract workers
of the network.
would often identify
We now examine the properties of working within a network
more with their
from an individual viewpoint by
adopting a liminality perspective
profession than an
(Beech, 2011; Garsten, 1999), as it
employer or client
accurately depicts the qualities of
the networked space and provides
and may opt for
key insights into the challenges
that need to be addressed.
cutting-edge skill
development rather
than employment
Networked Working: An
Individual Perspective
The act of working across organizational boundaries means that
employees experience work in a
different way. They occupy a liminal space,
being “betwixt and between” organizations
(Garsten, 1999, p. 603), operating at the limits of existing social structures. Employees occupying this liminal space may experience a
sense of freedom but also insecurity. They
find themselves floating between their firm
and their client, but anchored to neither
(O’Mahoney, 2007, p. 11). Indeed, Beech
(2011, p. 288) argues that the identities of
“employees” in this liminal space are formed
through a dialogue between themselves and
the parties with whom they interact. Tempest
and Starkey (2004, p. 507) state that
security.
liminality breeds ambiguity because if offers
both risks and opportunities for the individual and the organization. This is associated
with “instabilities in the social context, the
ongoing multiplicity of meanings and
the substitutability of the liminar” (Beech,
2011, p. 288).
The liminal context has specific characteristics. First, there are multiple time-target
demands from various stakeholders placed on
the individuals (Fincham, 1999), which may
create both synergies and conflicts (Donnelly,
2006, 2009, 2011; Purcell, Kinnie, Swart,
Rayton, & Hutchinson, 2009). Synergies are
associated with the creation of value for all
stakeholders involved. In other cases, there
will be conflict over objectives, costs, time
spent, skills developed, and other operational
issues. The second characteristic relates to the
emotive aspects of working where the individual may experience competing pulls from
various agents with whom they can identify.
Whereas more traditional employees could
identify with their organization, the liminar
anchors their identity in their “skill,” and this
therefore puts employability before identification with an organization or client (Swart &
Kinnie, 2013). Employees may be urged to put
the interests of the client first, and may also
be based on a client site, all of which fosters
identification with the client. Professional
contract workers would often identify more
with their profession than an employer or client and may opt for cutting-edge skill development rather than employment security.
Third, a sense of commitment is thought to
influence extra-role behavior and, ultimately,
network performance (i.e., employees tend to
go the extra mile for the agent in the network
to whom they are committed; Becker, 2009;
Bentein, Stinglhamber, & Vandenberghe,
2002; Purcell et al., 2009). Each stakeholder
may therefore compete for the individual’s
commitment.
In the following section we present the
research methods we adopted across a decade
of research to identify: (1) network variation,
(2) employment challenges and tensions
within networked working, and (3) HRM
models in this networked context.
Human Resource Management DOI: 10.1002/hrm
RECONSIDERING BOUNDARIES: HUMAN RESOURCE MANAGEMENT
Method
I
NETWORKED WORLD
at each stage of the process. In stage three, we
interviewed professionals who were engaged
in the client-interface process on a daily basis
(e.g., line managers, lawyers, and consultants). We asked detailed questions about the
prominent resources that they relied upon at
each stage of the client-engagement process
and how HR practices contributed, in reality,
to the development and management of each
asset.
In the second project, we sought to understand the impact of networked working on
employee attitudes. We focused in particular
on commitment to the various stakeholders
in the network (i.e., the organization, client,
team, and profession). Here we asked specific
questions about the synergies and conflicts
between these attitudes and how that impacts
on employee behaviors. In this article, we
draw on a single case of a retail organization
within the research project to illustrate what
we consider the most advanced form of networked working. In this case we conducted
38 interviews with senior managers, directors, and line managers.
All our qualitative data were then examined using thematic analysis. We coded our
data to identify: (1) the particular variation
in networked contexts (see Table II); (2) the
tensions inherent in each context between
the network (such as the project) and the
firm and between the firm and the employees,
and (3) the HRM practices that are associated
with each networked context (see Table III).
At this stage we could identify the key HRM
responses to networked working. Then we conducted parallel coding (i.e., cross-referring the
tensions with the HRM practices), wherein
which we identified precisely how HRM practices are used to manage specific networked
tensions.1
We draw on two research projects wherein
which we identified a variety of responses to
networked working. The first was conducted
within 13 PSFs and adopted the multiple-case
logic suggested by Eisenhardt (1989). The case
organizations were particularly suited to understand the HRM responses to networked working because they work so closely with their clients and other network partners (Malhotra &
Morris, 2009). The sample therefore included
law firms, management consultancies/
outsourcing, software houses, and creative
agencies (see Table I). We selected the client
interface process (e.g., the bidding process or
consultancy project) as the unit of analysis
because this allowed us to focus on crossboundary working. These units of analysis
were identified in collaboration with each
case study firm. We conducted 150 interviews, lasting between 60 and 90 minutes, all
of which were recorded and transcribed. A
stage-based approach to the collection of
qualitative data was adopted in each case.
First, we conducted in-depth interviews with
a representative sample of managing partners, directors, senior managers, and HR staff
at all levels. During these interviews, we asked
about the strategic challenges to the firm, the
nature and management of resources (which
we defined as human, social, and organizational capital), and the HRM practices that
were adopted. It was at this stage that we
identified the dominant cross-boundary unit
for further analysis. At the next stage we interviewed professionals responsible for managing their client-interface processes (i.e.,
principal consultants, practice managers, or
chief knowledge officers) and asked them
about the resources that had to be managed
TABLE
IN A
The Professional Services Firms’ Case Studies
Sector
Law
Management Consulting/
Outsourcing
Creative
Software
Senior staff
12
24
25
7
Middle managers
22
16
31
3
Junior staff
7
2
1
0
Interviews
41
42
57
10
Human Resource Management DOI: 10.1002/hrm
295
TABLE
Degree of network integration
II
The employing organization
with clear identification with
values
Individual may identify with
networked organization, such
as the IPT, which does not
directly employ them
The cross-boundary project
team becomes the focal point
for activity
The network and the individual Duality of employment
identity—organization and
firms become the focus of
networked team
work activity
Semi-permeable
A couple of parties in the network aim to generate commitment from those whom they
do not employ
Permeable
All parties contribute to a team
that is situated at the network
level
Interwoven
Intensive interaction mainly in
inter-organizational networks
such as Integrated Project
Teams (IPTs)
Integration
A separate organization exists
at the level of the network
Prominent
Identification
Internal client projects
The individual works across
several internal project teams
while having frequent contact
with network parties
Work Activity Focus
Internal permeability
The organization manages
external boundaries while
keeping internal boundaries
fluid
Boundary Properties
Interaction
At senior levels in the organization that manage relational
distance
Network Variations
296
HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2014
Human Resource Management DOI: 10.1002/hrm
Organization-specific but
valuable to network
Fluid internal boundaries and
developing flexible skills
Cultural and strategic objectives
(i.e., outputs and behaviors)
Values and behavior at both
firm and network level
Focused on retention of key skills
Reinforce permeable internal
boundaries
Fill the internal engagement
space to avoid liminality
developing
Development
Performance
Management
Reward
Involvement
Buffering the Network
Networked HRM Models
Values-driven
Cultural fit
Fluidity
III
External and
Internal Resourcing
TABLE
Human Resource Management DOI: 10.1002/hrm
Reward efficiencies that result from collaboration both within the network and
within the firm
Develop social capital to facilitate
knowledge sharing and learning from
best practice; this is balanced with
continued competition
Reward achievement of network- and
firm-level targets
Build commitment to the organization
and network to facilitate learning from
industry-specific knowledge
Performance targets set across network
with a focus on collaborative behavior
Duality of performance management systems with recognition at the network and
firm levels
Collaborative model for development—
generated from networked knowledge
needs
Development processes at level of the
network and the firm
Develop human capital that is complementary to achieve network objectives
Establish targets jointly agreed upon
between network parties
Duality of targets but firm-only
performance management system
Human and social capital as ability to
develop and manage relationships
becomes focal
Balancing the Network
Professional and industry-specific
knowledge become focal as experts work
together in the network
Borrowing From the Network
RECONSIDERING BOUNDARIES: HUMAN RESOURCE MANAGEMENT
IN A
NETWORKED WORLD
297
298
HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2014
The Networked Context: Variation
and Multiplicity
In this section we focus on network variation,
as this has a direct impact on the appropriateness of the networked HRM model. We identify three types of networks—interactive,
interwoven, and integrative. The data analysis indicates that each network type differs according to their: (1) boundary properties,
(2) work activity focus, and (3) prominent
identification (see Table II). We acknowledge
that each network model is not an ideal type,
yet our data analysis indicates that these are
prominent ways of networked working. Each
network type has its own set of
tensions that exist between the
We acknowledge
network and the firms and between the firms and the employthat each network
ees. We use an established framemodel is not an ideal work (Phelps et al., 2012) to
categorize these tensions into:
type, yet our data
(1) structural (i.e., those associated
with employment boundaries),
analysis indicates
(2) relational (i.e., the tensions that
exist in the relationships between
that these are
the network and the firms and the
prominent ways of
firms and the employees), and
(3) tensions that result from the
networked working.
properties of the knowledge in
the network. The identification of
Each network type
these tensions puts us in a
has its own set
position to understand how the
HRM models are used to manage
of tensions that
the challenges inherent in twentyfirst-century forms of organizing.
exist between the
network and the
firms and between
Interactive Networking
In this network type, organizations
work with partners and suppliers to
the firms and the
provide products and services to cliemployees.
ents. The aim is to meet the needs
of clients by actively engaging with
network partners while “protecting” firm-specific skills, often via strong commitment to the organization. The network is
held together via frequent interaction between
the various stakeholders at senior levels within
each partner. Here both long-term contracts,
where outputs are co-constructed, and shorter,
highly competitive contracts exist wherein the
network partners collaborate with one another
based on their skill specificity. The focus of
each organization is on “protecting” or buffering scarce skills in order to maintain networked
relationships. Products and services are generated via a focus on internal organizational processes, which “deliver” multiple outputs to
multiple partners in the network.
This network type is associated with two
employment boundary tensions. First, professionals work across client projects, which may
be characterized by different HRM practices
such as performance and reward targets. Hence,
the firm is faced with the challenge of establishing internal employment practice equity.
Second, clients and other network partners
may put pressure on the firm to adopt specific
HRM practices such as training and development. The firm therefore needs to manage the
boundary between its own HRM practices and
network partners’ employment practices.
The relational tensions between the network and the firms are associated with the
ambiguous power relationships and client
demands. Professionals have power based on
their expertise, while clients have economic
power. In this context, client needs are often
nebulous, which provides the client with a
considerable degree of power; yet, they rely
on the application of specialists’ knowledge
to meet their demands. This requires high
degrees of trust, as solutions may need to be
developed over extended periods of time.
Furthermore, as the market changes, the
PSFs’ skills may become less attractive, which
puts pressure on their ability to “protect”
their employees. For example, clients may no
longer be prepared to pay for highly creative
award-winning TV advertisements, preferring
instead the more measureable benefits of a
digital marketing campaign. It is in the firm’s
interest to maintain long-term client relationships; however, they need to manage the
relational distance between themselves and
their clients, as the delivery of products
and services to longer-term clients may result
in the client demanding that specific employees continue to work on their accounts, thereby
creating conditions within which employees
do not have optimal opportunities for skill
Human Resource Management DOI: 10.1002/hrm
RECONSIDERING BOUNDARIES: HUMAN RESOURCE MANAGEMENT
development. There are further conflicts that
exist between the firm and the employee.
First, our data indicates that employees need
to meet multiple, often conflicting objectives
(i.e., professional, via cutting-edge skill development, and organizational, which is often
dominated by a cost perspective and could
be mainly client-focused). Professionals may
also occupy a liminal space as they are rotated
between several client project teams, possibly
with conflicting client demands. This also
presents skill development tensions, which
stem from the difficulty in generating deep
specialisms while rotating staff between projects. Finally, the professionals’ organizational
commitment may be weakened if they are
intensively engaged in client work, often on
a client site. This could ultimately result in
the loss of valuable human capital.
The properties of the knowledge in this
network also present particular tensions.
Clients buy specialist solutions while simultaneously seeking to minimize costs. The
knowledge outputs generated will balance
cost and quality, which may not be optimal
for the professional firm or the employee’s
skill development. The firm also has a competitive interest in renewing knowledge, but
clients may not be willing to absorb costs
associated with the experimentation risks.
Finally, employees may be asked to develop
client-specific skills, which make them less
employable. The advantage of this is that
human capital remains relatively protected
within the boundaries of the firm, and development and retention of employees is therefore optimized.
Interwoven Networking
The prominent characteristic of this network
type is the collaboration of several firms to
produce a particular network-level output.
Professionals work across organizational
boundaries to work, for example, in an integrated project team (IPT). Defense contractors
may collaborate to build a new warship, or
architects, civil engineers, and building
contractors work together on a major construction site. Other examples are found in
consulting (Nikolova et al., 2009) and the
Human Resource Management DOI: 10.1002/hrm
IN A
NETWORKED WORLD
299
National Health Service (Marchington et al.,
2011). Employees will be seconded to the
project from their own organizations and
may work together on a shared physical site
and will often share domain knowledge such
as naval engineering, but parties will have
their own areas of specialism and, hence, the
skill sets are complementary. Individuals remain members of their own organizations
but work on the project for both defined and
open-ended time periods, even as long as a
decade.
There are several reasons for engaging in
this networked activity, which can be linked
to layers of “co-opetitive” forces.2 At the level
of the network there may be a need to gain
a national advantage, such as
retaining/establishing a capability
The relational
and to identify and shape operational requirements or to establish
tensions between
industry standards. At the level of
the firm the most basic motive the network and the
would be to gain revenue (i.e.,
to win work and reduce costs). firms are associated
There are further benefits associwith the ambiguous
ated with having the first-mover
advantage in terms of technical power relationships
output as well as market branding (e.g., to become known for and client demands.
a specialist skill). Firms would
Professionals have
want to maintain their network
relationships because of several
power based on
cooperative forces at play at the
their expertise,
level of the firm—for example,
to provide market credibility and
while clients have
generate brand value. Finally,
there are knowledge-based reaeconomic power.
sons for sustaining the network
(i.e., to provide an exciting environment for development of professional
skills and to authenticate the firm’s professional knowledge). This network does not
move toward integration over time because
firms have existence outside the network
wherein shareholders and employees require
a separate existence. The individual firms also
need to maintain a competitive momentum,
for example, through the use of their own
“skunk works”3 to innovate to stay ahead
of the game. Finally, the network comprises
complementary skill sets wherein firms will
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HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2014
hardly ever collaborate with firms that “know
similar things.”
These benefits coexist within a set of
challenges among the network, the partner
firms, and the employees. First, we identify a set of employment boundary tensions
that are associated with working both for an
employing organization and for the network.
The network itself would need to establish
employment equity since several of its contributing firms will have different employment conditions (e.g., the number of days’
leave). Equitable network-level employment
conditions therefore need to be negotiated
and established. There may also be interfirm
pressure to change employment
conditions as professionals are
Professional
exposed to variations in employment practices in the industry.
pride, which is
Finally, in any given organization,
linked to working
employees will work across several
networks, resulting in possible
on a high-profile
inequity in employment conditions within the firm.
project, needs to
The relational tensions between the network and the firm
be balanced with
entail the agreement of outputs,
personal costs such since there could be differences at
both national and firm levels over
as moving away
basic goals and who gets access to
resources. Firms may also not colfrom one’s family
laborate easily because they may
and professional
still be competing in other areas.
Thus, there are tensions between
group in the firm.
the “best” professional solution
and the most cost-effective soluIndividuals may
tion, which puts pressure on the
often experience
opportunities to develop cuttingedge skills. Employees may spend
anxiety over current
several years working in one network, which becomes the anchor
learning and future
for identification and could
prospects if their
impact on organization commitment because individuals may be
project is not highphysically and psychologically
distant from the organization.
profile.
This may lead, for example, to the
release of confidential financial
information as the project takes on a life of its
own. The network and the firms also compete
for scarce resources such as valuable technical
skills. This is combined with firm-specific
resourcing tensions that result from the need
to rotate staff between the network and other
organizational project teams in order to benefit from investment in skill development.
Finally, there are trust-related tensions as firms
simultaneously develop highly skilled professionals and are required to share this expertise with both collaborators and competitors.
Further relational tensions exist between the
firm and the employee. The most notable of
these is the maintenance of the motivational
contract, as the project may last more than
a decade and will draw on different specialisms during different time periods. Firms
need to focus on keeping employment costs
down as specialists negotiate salary increases
to compensate for personal cost in working
on the project. Professional pride, which is
linked to working on a high-profile project,
needs to be balanced with personal costs such
as moving away from one’s family and professional group in the firm. Individuals may
often experience anxiety over current learning and future prospects if their project is not
high-profile.
The properties of the knowledge in the
network present specific challenges. As
the network becomes the focal point for the
professional’s work, their knowledge becomes
so specialized that it may not easily be integrated into the PSF. This is intensified by the
fact that employees will often be physically
in a different location. It is important to keep
the boundaries of the firm relatively fluid to
allow for the adoption of leading-edge experience within the firm’s particular specialism.
This fluidity needs to be managed carefully,
as individual network partners would seek
to retain their skills and expertise. The network itself may suffer from learning challenges given the specialist nature of the
various skill sets (e.g., an aerospace engineer
may have to work closely with a hydrodynamics specialist on a submarine-launched
missile: they may speak very different technical languages). This results in firms facing
skill-development challenges, as they need
to invest in both specialist skill development
and relational skills that can assist in knowledge integration.
Human Resource Management DOI: 10.1002/hrm
RECONSIDERING BOUNDARIES: HUMAN RESOURCE MANAGEMENT
Integrative Networking
The core characteristic of this network type is
the sophisticated nature of collaboration.
Organizational boundaries are highly permeable and the networked activities are so focal
that they become a separate, often virtual and
legal organization that would typically have
its own HR practices and management structures. The aim of this kind of collaboration is
concerned with improving the performance
of the network (i.e., sharing best practice).
Individuals would therefore identify with
their employing organization and the networked organization. The advantage of this
form of networking is the efficiency it generates, but there are also several conflicting interests associated with the network type.
The particular employment boundary
tensions in this model relate to the duplication and potential inconsistencies between
network- and firm-level HRM practices. For
example, network-level incentive schemes
may reward behaviors that are not typically
rewarded at the firm level, leading to questions being raised about the links between
effort and reward. Employees experience
other network partners’ HRM practices via
secondments and may put pressure on their
employer to adopt these practices.
The relational tensions are linked to the
combination of continued collaboration and
competition. Individual firms may be reluctant to share knowledge with competitors for
fear of losing their advantage. There is also
a risk of the client dominating the network.
In our case examples, we found that a prestigious client will make key decisions that
illustrate power. Individual firms also have
to manage the time invested in collaboration
that results from the duplication of organizational procedures such as progress reports.
Tensions between the individual and the firm
include feelings of separation from the network if employees have not personally experienced the firm-level and individual benefits,
such as career opportunities. Individuals may
also not want to tie the development of their
skill set to only one network. They may, for
example, want to work in several networks
in order to increase their employability. In
Human Resource Management DOI: 10.1002/hrm
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301
particular, different client work provides the
opportunity to develop a diverse skill base.
Finally, the firms face a retention challenge
as employees take up positions across the
network, making themselves both attractive,
through their enhanced skill sets, and visible
as potential employees.
There are three kinds of tensions associated with the properties of knowledge.
First, questions exist about the ability of the
firms in the network to absorb the knowledge available at the network level. Some
firms may believe that network practices are
less relevant to their local situation. Second,
there may be process and practice challenges
associated with their adoption. For example,
firms may not have the IT systems
necessary to implement a quality
Questions exist
monitoring procedure available
from the network. Finally, managabout the ability
ers in the firm may lack the necessary experience of managing at
of the firms in the
the network level to identify the
network to absorb
potential opportunities to apply
wider network practices within
the knowledge
their own organization.
available at the
HRM Models in a
Networked Context
network level.
Some firms may
In this section we present the
three networked HRM models:
believe that network
buffering the network, borrowing
from the network, and balancing the
practices are less
network. We discuss the defining
relevant to their
characteristics and then compare
the three models using the same
local situation.
criteria (i.e., internal and external
resourcing, development, performance management, reward and
involvement; see Table III). In particular, we
pay attention to how HRM practices are used
to manage the networked tensions we identified earlier.
Buffering the Network: Human
Capital Agility
In this context, the HRM practices exist at the
level of the firm (see Figure 1). Firms thus retain flexibility to respond to changing
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HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2014
Client
Client
Project
teams
Boundary of the
HRM model
Permeability of the
boundaries
FIGURE 1. Buffering the Network: Human Capital Agility
network demands while anchoring knowledge
and specialist skills within the organizational
boundaries. This is achieved by linking HRM
systems to organizational values, which illustrates awareness of the intensity of the opportunities to join a collaborator or a client in a
cross-boundary setting.
Resourcing practices focus on the fit with
organizational values, yet they maintain the
need for flexibility in order to respond to a
variety of client demands. In one case, “High
Trust” took technical skills for granted and
paid close attention to values. A firmwide culture was established by encouraging staff to
share knowledge, pass on contacts, and delegate client work to others. The fit between
the employee and the firm enabled the retention of key skills, which secured continued
participation in the network. Importantly,
the values-driven HRM practices provided a
foundation from which the firm could push
back against the adoption of costly practices
such as excessive rewards for unique skills.
The dominant logic that the firms used to
manage cost tensions is that the culture and
branding of the firm provided an employability advantage.
This focus on values and flexibility is also
reflected in job design and resource allocation practices. Job-design facilitates multiskilling, which supports cooperation between
teams. A flexible resourcing model is used
when allocating staff to client project teams.
“Blueprint” rotated staff between client projects to develop firm-specific skills, which
were not easily transported to other organizations, that enabled the retention of valuable
human capital in the face of competition.
This also provided staff with development
opportunities. In this model, relationships
are described as the most important criteria for staff allocation to teams. This strategy creates an infrastructure for knowledge
flow within and between project teams and
reflects the emphasis on process agility, which
allows organizations to deploy resources
across diverse network demands. The fluid
job design enabled the organization to manage tensions between professional, organizational, and client objectives, as employees do
not become “locked into” a dominant client
or professional logic.
Development practices concentrate on
a broad range of skills in order to anticipate
future network demands, thereby providing a
context wherein employees can experiment.
There is an increased willingness to opt for
more creative solutions as client trust in the
firm grows, which in turn provides opportunities for the development of unique skills.
This approach is also reliant upon socially
sensitive mentoring relationships, which
Human Resource Management DOI: 10.1002/hrm
RECONSIDERING BOUNDARIES: HUMAN RESOURCE MANAGEMENT
create an environment for skill development,
which is not dominated by client demands.
The fluidity on the one hand and the deeply
valued mentoring processes on the other
result in a mix of specialist and generalist
skills that underpin the sustained advantage
of the network.
Performance management and reward
systems are linked with cultural and strategic objectives that strengthen commitment
to the organization, as opposed to the client and the profession only. The capability
of the firm takes precedent over “standard
individual rewards,” which enable the firm
to respond flexibly within a changing market. The power of the process agility was
articulated by an interviewee as “anyone who
comes here has to show they can bring in the
fees—show they can get hands dirty and build
a team through sheer hard work. You sacrifice a
decade but you get the reward.” Bonuses tend to
be linked to group or organizational performance. The performance and reward system
fits with the notion of values-driven HRM
practices, which enable the firm to develop
and retain human capital, while at the same
time focusing on client relationships, which
maintain the network. It also puts the firm in
a position of differentiation whereby they do
not come under pressure to adopt standardized or costly employment practices.
Our data analysis indicated that involvement practices are likely to encourage commitment to the organization and also
flexibility to work effectively within the
network. Opportunities for participation in
the day-to-day operations encourage knowledge flow, which aids the identification with
the firm. The employee’s involvement in the
allocation of work enables employees to
balance competing forces of commitment,
which is especially important when organizational, client, and professional objectives
have to be achieved. In several case studies,
cross-functional teams are used to enable participation in decision making and to develop
firm-specific skills. We found this to be critically important in creating a sense of belonging, which develops organizational networks
and builds trust both internally and at the
level of the network. It therefore enables the
Human Resource Management DOI: 10.1002/hrm
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303
firm to develop and retain firm-specific skills,
thereby providing the firm with a sustainable
competitive advantage and securing the sustainability of the network.
Borrowing From the Network:
Leveraging Complementarity
In this model, HRM practices exist at the level
of the firm with some practices, such as resourcing, emergent at the level of the network
(Figure 2). It is important to leverage resources
from other stakeholders in the network for
the achievement of network- and firm-level
objectives. Organizations that adopt this
model tend to focus on the development of complementary skills,
Performance
which will benefit the network
while leveraging the learning to
management and
benefit the individual and the
firm.
reward systems
In order to achieve both netare linked with
work- and firm-level objectives,
the focus is on attracting procultural and
fession-specific skills (Swart &
Kinnie, 2010), which will benefit strategic objectives
the firm’s reputation and enable
that strengthen
collaboration within the industry (e.g., aerodynamicists and
commitment to the
aerospace engineers who may
have complementary [i.e., differorganization, as
ing] professional knowledge but
who also hold sufficient com- opposed to the client
mon expertise to enable interacand the profession
tion). The reason for this is that a
bid would be won in partnership
only.
and would require immediate collaboration to achieve the agreedupon outputs. Indeed, the complementarity
of the skill base is often the deciding factor
in the winning of the bid. This approach
enables the firm to benefit from market
opportunities that are focused on professional knowledge and allows them to attract
the best employees. In “GlobalConsult,” consultants were drawn from within the firm
as well as from associate firms to develop a
highly specialized capability in the facilitation of large-scale change programs. This
interplay of firm-, profession-, and networkspecific knowledge enabled the firms to
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HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2014
Direct
employees
Agency/contractors
Project
Consultants
Self-employed
Boundary of the
HRM model
Permeable
boundaries
FIGURE 2. Borrowing From the Network: Leveraging Complementarity
manage tensions associated with their capability to learn from the network and to work
optimally across complementary skill sets.
The internal resourcing process is complex
since the firm continuously faces tensions
between pursuing a deep expertise approach,
which involves keeping project teams together
over long periods, and providing employees
with new opportunities for challenging work.
The firm is also faced with the (often erroneous) assumptions of employees that the work
of long-term project teams will become staid
and unexciting compared with opportunities in the “home,” firms which can appear
more dynamic. Our data indicate that varying
approaches are used to maintain internal fluidity, via staff rotation between projects and
the use of external associates to build flexibility across projects. Internal resource allocation is aimed at balancing the needs of the
network, the firm, and the employee while
maintaining the motivational contract across
the network and within the firm.
The resourcing of the project itself is
also characterized by personal/professional
tensions since employees may not want to
benefit from the opportunity to work on a highprofile project for fear of isolation. A process
of “stepping up” or exposing the professional
to more senior jobs in the project is used to
retain human capital and to manage possible
escalating employment costs. Another mechanism used to retain skills was that of informal
and sometimes formal “non-poaching agreements.” This encouraged trust and strengthened relationships, which enabled networks
themselves to be more competitive.
Development is focused on deepening professional skills that enable future
business winning. Practice groups within
“GlobalConsult” worked collaboratively with
other internal practice groups, external facilitators based in clients, and other external
skill experts to build unique capabilities. The
network was dependent not only on highly
skilled human capital but also on strong,
trusting relationships, which enabled professionals with complementary skill sets to
work together closely to sustain the network.
The development of what our interviewees
referred to as “T-shaped” professionals, which
include both deep technical skills as well as
“relational” skills, was evident in several cases.
Indeed, herein lies the challenge of this HRM
model; a powerful network partner may seek to
benefit from the resource investment of other
stakeholders without making their own human
capital investments. It is therefore crucial that
cooperative relationships underpin the development of both profession- (e.g., engineering)
Human Resource Management DOI: 10.1002/hrm
RECONSIDERING BOUNDARIES: HUMAN RESOURCE MANAGEMENT
IN A
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HR practices
Knowledge
sharing
Retailer
3PL
One Team
Steering Group
Workstreams
HR practices
3PL
3PL
Boundary of the
HRM model
3PL
Permeable
boundaries
FIGURE 3. Balancing the Network: Multidimensional Agility
and network- (e.g., defense) specific skills and
relationships while anchoring and integrating the benefits that occur from the network
into organization-specific processes.
The relative importance of professionrelated training and development varied
across the case studies. In some less innovative
networks, professional knowledge is “bought”
rather than “made,” and the emphasis is on
using this knowledge effectively within the
organization and the network. In other highly
innovative networks, where solutions are
emergent, network partners rely on the development of cutting-edge skills across organizational boundaries. In this context the individual
partners invest in the initial profession-specific
development (e.g., to train and recruit a skilled
engineer), and as the project unfolds, all stakeholders will bear the cost of innovation. Once
cutting-edge skills are developed at the level of
the network, the individual firms aim to maximize their learning by rotating staff between
networked projects.
Performance and reward practices exist at
the level of the firm; hence, performance feedback is taken from the network and included
in the firm’s performance management system, which is associated with achieving network and firm targets. Reward is subsequently
based on multiple criteria, which include
quality and cost measures. In most cases, we
Human Resource Management DOI: 10.1002/hrm
found an alignment between the network
objectives and the firm and individual objectives, as it was in the network partners’ interest to complete a contract within a specific
time and cost. This strengthened commitment to both the firm and the network and
encouraged collaboration. Rewards, such as
promotion and partnership, were also used to
retain employees and lock skills into future
competitive bidding.
There is a high degree of involvement
in the networked activities. In several cases,
employees would be closely involved in negotiating project specification and resource
allocation. Continued tensions between
the quality of knowledge generated and
costs has to be managed; hence, relationship
building and opportunities for involvement
became critical factors in sustaining the
network.
Balancing the Network:
Multidimensional Agility
In this model, a portfolio of HRM practices
exists at the level of the network and within
the firm (Figure 3). Unlike traditional HRM
models that focus on human capital, this networked model reflects the importance of
strong social relationships and network-level
processes. These relationships fill the liminal
305
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HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2014
space between the parties; they are the glue
that holds the network together.
Networked HRM practices were established
by a retail organization and its third-party
logistical partners (3PLs). The shared aims were
to collaborate to improve the performance of
the network by sharing best practice. The firms
continued to operate as a network and did
not integrate vertically because they compete
for other client business while collaborating
in the network. Senior managers regard the
enhancement of talent management throughout the network (called One Team) as one of
their clear objectives. They advertised all relevant job vacancies across the network via the
shared website, which meant that
employees had opportunities for
The networked
career development in ways that
they would not otherwise have
HRM model results
been aware. This encouraged staff
to move between network partin the generation
ners and supported the retention
of flexible human
of human capital in the network,
which is critical in an industry that
capital, which
has transferable skills.
The networked organization
can be effectively
was resourced from a variety of
deployed across the levels from each partner, which
meant that junior staff found
network as well as
themselves working alongside
quite senior staff from other partwithin the individual
ners and they could “get themselves noticed,” which provided
firms. These
further
career
opportunities.
efficiencies resulted All employees were encouraged
to wear the One Team uniform
in very significant
rather than their employing organization’s uniform, which further
cost savings and
encouraged a sense of belonging
have generated
to the network. Informal development was enabled as members
further networked
had autonomy over how they
achieved the network objectives.
ways of working.
The members had the freedom to
develop new ideas and to innovate. Alongside these more informal development opportunities, there were more formal
network-level training activities that aimed to
encourage the sharing of best practices across
the network and allowed for the adoption of
learning into the firms.
Performance management practices are
generally established at the level of the network with efficiency targets set for each firm
and performance measured weekly. Each network partner has information on its own performance and that of others within a league
table. This encourages performance improvements that are highly visible throughout the
network. There are also network-level reward
mechanisms that recognize the contribution
of individual employees, which provide an
incentive for employees to commit to both
their firm and the network and to share rather
than hoard their knowledge. The multiplicity
of performance and reward criteria addressed
the tensions inherent in the power struggle
between the various partners’ performance
targets.
It is important to understand that the networked HRM model results in the generation
of flexible human capital, which can be effectively deployed across the network as well as
within the individual firms. These efficiencies
resulted in very significant cost savings and
have generated further networked ways of
working.
Conclusion and Implications
This article examined the boundaries of
contemporary HRM models, wherein work
activities take place across organizations, in
networks. It is from within this focus that it
sought to identify appropriate HRM models
in these contemporary contexts. We adopted
an activity perspective (Kogut & Zander,
1996) to identify, from a decade of empirical
research, three types of networked working—
interaction, interwoven, and integrated, which
vary according to: (1) the properties of the
boundaries, (2) the focal point of work activity, and (3) the prominent identification (see
Table II). Inherent in each network type is a
series of tensions and conflicts that exist between the network and the firms and between
the firm and its employees (Donnelly, 2006,
2009, 2011; Purcell et al., 2009). We categorized these into structural, relational, and
knowledge-based tensions (Phelps et al.,
2012). In the final section of the article, we
drew on our data analysis to develop a
Human Resource Management DOI: 10.1002/hrm
RECONSIDERING BOUNDARIES: HUMAN RESOURCE MANAGEMENT
typology of HRM models that exists within a
networked context—(1) buffering the network, (2) borrowing from the network, and
(3) balancing the network—and we indicated
how each model is used to manage its associative network-specific challenges. This is where
contemporary HRM models can make such
an important strategic contribution to networked working because they enable firms
to both protect and share human capital in
ways that are appropriate to their extant network type.
Importantly, the data analysis indicates
that in a networked world it is not only
human capital but also the relational capabilities of the firm that take center stage.
This, we argue, is the focus of the networked
HRM model, which has important implications for each of the individual HR practices.
For example, resourcing would need a much
clearer focus on the ability to build and maintain relationships. The development of skills
that facilitate relationship building and, specifically, team-based effectiveness would be at
the heart of the networked HRM model. This
relational aspect would also be reflected in
performance and reward management.
We have also indicated that each networked HRM model has a set of defining
characteristics—for example, fluidity is at
the heart of the buffering model, leveraging
experience at the level of the network is central for the borrowing model, and duality of
membership and HRM practices, which result
in network-level efficiency, define the balancing model. Integral to our discussion is the
notion that networked HRM models play
a strategic role in the management of the
boundary of the firm. The organization may
select to have very fluid boundaries in order
to benefit most from collaborative working
and the subsequent cutting-edge skill acquisition. Alternatively, organizations may select
to have relatively impermeable boundaries
in order to develop firm-specific skills and to
retain key skills via strong values and a distinctive culture. This does not keep the organization from operating effectively in the
network, but it represents an alternative strategic response to the network. We have indicated in our analysis that the selected HRM
Human Resource Management DOI: 10.1002/hrm
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307
practices play a strategic role in determining
the properties of the firm boundaries in each
of the three HRM models.
This holds particular theoretical and practical implications. First, it urges HRM scholars to rethink the notions of the boundaries
of the firm and, subsequently, the very definition of an employee (Fisher et al., 2008; Lepak
& Snell, 2007; Marchington et al., 2005, 2011;
Rubery et al., 2003). Second, it calls for the
need to re-examine the theoretical assumptions that exist in current HRM models,
which tend to correlate HRM practices with a
single employer. Finally, the networked HRM
models developed from our data indicate that
it is not only human capital that should take
center stage in twenty-first-century forms of organizing, but that
both social capital and networked
The networked
processes should be at the heart of
HRM models
future HRM models.
Our research has some limitations. We studied PSFs that developed from our
represent particular types of netdata indicate that
worked working and knowledge
co-production. Future work may it is not only human
benefit from cross-comparison
capital that should
across various industry settings.
We have also conducted our
take center stage
research over an extended period
of time, which would have an
in twenty-firstimpact on how we understand
century forms of
network dynamics and the HRM
practices within each network
organizing, but that
type. Finally, our research is based
within the United Kingdom,
both social capital
which would have an impact
and networked
on both the way in which crossboundary contexts emerge and
how they are managed. This pro- processes should be
vides a fruitful avenue for future at the heart of future
research to explore national and
HRM models.
international networks and address
how the HRM models we have
identified here impact upon the
sustainability of networked working.
In summary, the article contributes to the
identification of networked HRM models. We
argued that networked working is a contemporary form of organizing and illustrated that
appropriate HRM models need to be identified
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HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2014
to develop both current theoretical models
and practice. We presented three forms of
networked working and developed a typology of networked HRM models (i.e., buffering
the network, borrowing from the network,
and balancing the network). It is within this
complex milieu of tensions that we need to
develop a set of robust HRM responses that
would enable networked working.
Notes
1.
Detailed codings are available from the authors.
2.
Term originally used to describe a situation where
firms cooperate together—for example, to design a
new product to save costs and maximize innovation,
but then compete when actually selling that product.
See Brandenburger and Nalebuff (2002).
3.
A phrase typically used to refer to groups within organizations that are given a high degree of
autonomy and operate outside the normal management structures to concentrate on innovative
projects. See Bennis and Biederman (1998) for a
discussion of this in the context of the aircraft firm
Lockheed.
JUANI SWART specializes in knowledge management and the management of knowledge workers. She is head of the organization studies group and director of the Work
and Employment Research Centre (WERC). She is known for her work on the transfer of
human capital into intellectual capital, thereby linking the intellectual capital, HRM, and
performance debates. Her current research is focused on the links between employee attitudes and behaviors, such as knowledge sharing. Swart conducts her research in crossboundary contexts wherein multiple stakeholders have an impact on the strategic impact
of HRM practices. Her work has been published widely in the area of HRM, knowledgeintensive firms, and intellectual capital.
NICHOLAS KINNIE conducts research into the links between strategic HRM and business
performance within the context of changing organizational structures. He is especially
interested in organizations, such as professional service firms, where employees work
across organizational boundaries and interact with a variety of internal and external parties. His most recent research examines the influences on employee attitudes and the
consequences of these attitudes for various kinds of behavior and outputs. His research
in these areas has been published, widely drawing on studies of professional service
firms and customer contact centers.
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Human Resource Management DOI: 10.1002/hrm
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HUMAN RESOURCE MANAGEMENT
V OLU ME 5 3
NUM BE R 1 , J A N U A RY / F E B RU A RY 2 0 1 4
HR SCIENCE FORUM
PREDICTING RETIREMENT UPON ELIGIBILITY: AN EMBEDDEDNESS
PERSPECTIVE
PETER A. BAMBERGER AND SAMUEL B. BACHARACH
1
Concern over the impact of baby-boomers’ retirement on needed skills and proprietary knowledge
has stimulated an interest in identifying workplace factors associated with retirement upon
eligibility. Drawing from embeddedness theory, the authors identify work-based antecedents
potentially underlying a related, but distinct, form of withdrawal—retirement upon eligibility. The
authors generate and test hypotheses regarding the impact of fit-, sacrifice-, and links-related
antecedents using a prospective study design and a national probability sample of some 500 older
individuals who, at the time of the initial interview, were within months of becoming—for the first
time—eligible to receive such benefits. The findings indicate that, beyond the effects of personbased antecedents (e.g., age, health, assets, expected retirement income), a combination of fit(i.e., job challenge), sacrifice- (i.e., perceived organizational support), and links-related factors (i.e.,
stability of close workplace peer relations) have a substantial influence on the decision to retire
upon eligibility.
GENDER ROLES AND ORGANIZATIONAL HR PRACTICES: THE CASE OF
WOMEN’S CAREERS IN ACCOUNTANCY AND CONSULTANCY FIRMS IN
CHINA
FANG LEE COOKE AND YUCHUN XIAO
23
The Chinese finance industry has experienced significant expansion both within the state sector
and into the private sector. Professional consultancy firms have also emerged as a result of the
rising interest in the outsourcing of accounting and management services. However, the study
of women’s careers in the accountancy profession in contemporary China remains largely an
uncharted territory. Drawing on data from 69 interviews with auditors in five firms, this article
investigates the nature of work of external auditors in China and how women auditors view their
work-life choices and constraints. We explore the likely differences between male and female
auditors in their career aspirations and the extent to which these self-perceived differences are
informed by social conventions of gender role, organizational practices, and personal preferences.
The study has strong implications for human resource management in professional service firms
in China, with particular reference to job design, work organization, career support, and worklife balance initiatives. The study contributes to the debate on gender, employment, and career
development in the accountancy profession in different parts of the world.
CAREER EXPLORATION AND PERCEIVED EMPLOYABILITY WITHIN AN
EMERGING ECONOMY CONTEXT
INGO FORSTENLECHNER, HASSAN SELIM, YEHUDA BARUCH, AND MOHAMED MADI
Following four decades of unprecedented economic, social, and cultural change, the United Arab
Emirates (UAE) labor market is highly segmented: The native population is almost exclusively
employed in the government sector, while the private sector is effectively outsourced to
foreigners. This has created an unsustainable situation with growing numbers of young citizens
reaching working age and with a public sector that has reached the saturation point. Policymakers
Human Resource Management, November–December 2014, Vol. 53, No. 6.
© 2014 Wiley Periodicals, Inc.
Published online in Wiley Online Library (wileyonlinelibrary.com).
DOI:10.1002/hrm.21696
45
repeatedly try to legislate to encourage private-sector employers to hire citizens. These policies
have had limited success. We explored the career attitudes of 2,267 United Arab Emirates citizens
prior to their entry into the labor market. Using structural equation modeling, we found that the
social contract and resulting expectations toward state employment have strong implications for
willingness to work in the private sector.
HRM SYSTEMS FOR KNOWLEDGE WORKERS: DIFFERENCES AMONG TOP
MANAGERS, MIDDLE MANAGERS, AND PROFESSIONAL EMPLOYEES
ACHIM KRAUSERT
67
This theoretical study contributes to the debate in the field of strategic HRM on whether HRM systems
should differ across employee groups within the firm. It explores differences in the efficacy of two
HRM systems—high-involvement HR and internal labor market systems—across top management
teams, middle managers, and professional employees. In addition, it examines factors that may
prevent the adoption of effective HRM systems for these groups of knowledge workers. A model
is proposed depicting how four job-level moderators influence the HRM-performance relationship
and how these moderators apply to each of the three employee groups. Short-term performance
pressures and favoritism in staffing are proposed as factors that may hinder the adoption of effective
HRM systems. Finally, HRM systems for different employee groups are classified based on their
gains potential and barriers to implementation, yielding four categories of strategic HRM activity
metaphorically labeled low-hanging fruits, high-hanging fruits, peanuts, and barren land.
IDENTIFICATION AND OCCUPATIONAL STRESS: A STRESS-BUFFERING
PERSPECTIVE
CAMERON NEWTON AND STEPHEN TEO
89
Occupational stress research has consistently demonstrated many negative effects of work
stressors on employee adjustment (i.e., job-related attitudes and health). Considerable literature
also describes potential moderators of this relationship. While research has revealed that different
workplace identifications can have significant positive effects on employee adjustment, it has
neglected to investigate their potential stress-buffering effects. Based on identity theories, it
was predicted that stress-buffering effects of different types of identifications (distal versus
proximal) would be revealed when the identification type and employee adjustment outcome
type (distal versus proximal) were congruent. Predictions were tested with an employee sample
from five human service nonprofit organizations (N = 337). Hierarchical multiple regression
analyses revealed that main and moderated effects relating to identification supported the notion
that occupational stress would be reduced when there was congruence of distal and proximal
identifications and distal and proximal outcome types. However, stress-buffering effects were
also found for high identifiers and low identifiers that were not in line with hypotheses posing
questions for the definitions of distal and proximal identifications. Findings are discussed in terms
of theoretical and practical implications.
HR PROFESSIONAL ROLE TENSIONS: PERCEPTIONS AND RESPONSES OF THE
TOP MANAGEMENT TEAM
CATHY SHEEHAN, HELEN DE CIERI, MICHELLE GREENWOOD, AND HARRY J. VAN BUREN III
The aims of the research are to explore evidence of professional human resource management
(HRM) role tensions, the factors that affect HRM role tension, and to consider the impact on
management perceptions when role tensions exist. Using a qualitative approach, 25 interviews
were conducted in Australia with senior HRM personnel, top management team (TMT) executives,
and a management consultant. Findings reveal that the failure of the HRM profession to attract
people with a business focus increases HRM role tensions. Respondents report that tensions were
reduced when aspects of the HRM role were devolved or outsourced, there was an acceptance of
a changed psychological contract, and clearer attempts were made to communicate an agreedupon strategic focus for HRM. HRM role bias led to a reduced willingness among TMT members to
respect, and communicate with, HRM professionals. The implications of the negative outcomes of
HR role tensions are discussed with reference to the power of the HRM function.
115
MEETING THE CHALLENGES OF EFFECTIVE INTERNATIONAL HRM:
ANALYSIS OF THE ANTECEDENTS OF GLOBAL MINDSET
JOANA S. P. STORY, JOHN E. BARBUTO JR., FRED LUTHANS, AND JAMES A. BOVAIRD
131
The full force of globalization has hit today’s organizations, and it is clear that there are many
cultural and human problems. International human resource management (IHRM) is being asked
to better understand and develop multinational organizational leaders to meet the challenges.
A prominent solution that is receiving increased attention is the construct of global mindset,
which has growing rhetoric but little research support. To help fill this need, after first theoretically
framing global mindset as made up of one’s cultural intelligence and global business orientation,
this study identifies and empirically tests some theory-driven antecedents. Utilizing a diverse
sample (N = 136) of global leaders of a well-known multinational, we found that personal,
psychological, and role complexity antecedents were related to the participants’ level of global
mindset. The practical implications of these findings for effective international human resource
management conclude the article.
ENOUGH IS ENOUGH: COGNITIVE ANTECEDENTS OF WORKAHOLISM AND
ITS AFTERMATH
CORINE I. VAN WIJHE, MARIA C. W. PEETERS, AND WILMAR B. SCHAUFELI
157
Workaholism is commonly conceptualized as a compulsive inner drive to work excessively hard.
This study investigates to what extent rigid personal beliefs—i.e., performance-based self-esteem
(self-esteem that is contingent upon good performance) and an enough continuation rule
(continuing with work until one feels one has done enough)—contribute to exhaustion through
workaholism. To examine these potential antecedents and consequences of workaholism, data of
a two-wave longitudinal survey study with a six-month time interval was used (n = 191). Results
of structural equation modeling provided support for our hypotheses. Taken together, our findings
show that rigid personal beliefs at T1 predicted primarily working compulsively at T2, and working
compulsively at T1 influenced exhaustion at T2. Moreover, reciprocal relationships were found
between applying the enough continuation rule and working compulsively, and between working
compulsively and exhaustion. These results suggest partial mediation from cognitive antecedents
(personal beliefs) through workaholism to exhaustion. In practical terms, the results indicate
that cognitive antecedents may provide a good starting point for interventions for preventing
exhaustion and workaholism.
FOREIGN DIRECT INVESTMENT FROM EMERGING MARKETS TO AFRICA:
THE HRM CONTEXT
GEOFFREY WOOD, KHELIFA MAZOUZ, SHUXING YIN, AND JEREMY ENG-TUCK CHEAH
179
In this article, we explore what determines the decisions of emerging-market multinational
corporations (MNCs) to invest in Africa and whether this is any different from their counterparts in
mature markets, focusing on the HRM context. More specifically, we explore the effect of potential
host-country wages, local capabilities, and the relative rights of owners versus workers on foreign
direct investment (FDI) decisions, as well as other relevant factors such as mineral resources and
corruption. We found that emerging-market MNCs were not deterred by relatively weak property owner
rights (as indeed was also the case for their counterparts from mature markets); hence, any weakening
of countervailing worker rights is unlikely to unlock significant new FDI. However, emerging-market
MNCs were more likely to invest in low-wage economies and did not appear to be concerned by local
skills gaps; the latter would reflect the relative de facto ease with which even partially skilled expatriate
labor can be imported into many African countries. At the same time, a reliance on low-wage, unskilled
labor, coupled with the extensive usage of expatriates, brings with it a wide range of challenges for the
HR manager, which a firm committed to cost-cutting may lack the capabilities to resolve.
(continued)
N UM BER 2 , MA RCH / A PRI L 2 0 1 4
SPECIAL ISSUE
Balancing Employment Relations in the 21st Century
GUEST EDITORS
Keith Townsend and Adrian Wilkinson
GUEST EDITORS’ NOTE
TIME TO RECONNECT THE SILOS? SIMILARITIES AND DIFFERENCES IN
EMPLOYMENT RELATIONS AND HUMAN RESOURCES
KEITH TOWNSEND AND ADRIAN WILKINSON
203
HR SCIENCE FORUM
CAN UNION VOICE MAKE A DIFFERENCE? THE EFFECT OF
UNION CITIZENSHIP BEHAVIOR ON EMPLOYEE ABSENCE
STEPHEN J. DEERY, RODERICK D. IVERSON, DONNA M. BUTTIGIEG, AND
CHRISTOPHER D. ZATZICK
211
The interests of organizations and unions are often seen to be in competition. However, the unionvoice hypothesis suggests that unions can provide a distinctive mechanism to lower organizational
costs by reducing exit behavior. This study looks at union citizenship behavior as a form of voice
and examines its effect on employee absence. It draws on data from 367 branches of a large
unionized banking organization to explore both the antecedents and outcomes of union citizenship
behavior. Union citizenship behavior directed toward helping fellow members with workplace
grievances was found to reduce branch-level absenteeism, while union loyalty mediated the
impact of a number of union-related variables on union citizenship behavior. The implications for a
balanced union-management relationship are discussed in the article.
FROM EMPLOYMENT RELATIONS TO CONSUMPTION RELATIONS:
BALANCING LABOR GOVERNANCE IN GLOBAL SUPPLY CHAINS
JIMMY DONAGHEY, JULIANE REINECKE, CHRISTINA NIFOROU, AND BENN LAWSON
229
Global supply chains are part of the corporate strategy of many multinational companies,
often with adverse effects on labor conditions. While employment relations scholars focus on a
production-oriented paradigm, revolving around interactions among employers, workers, and
government, much of the activism motivating the development of private labor standards is based
around companies’ relations with their consumers. This article proposes an analytical framework
conceptualizing the interface of employment relations and consumption relations within global
supply chains, identifying four regimes of labor governance: governance gaps, collective
bargaining, standards markets, and complementary regimes. Finally, we suggest a research
agenda for examining the role of consumption relations in the changing nature of global labor
governance.
TWENTY-FIRST CENTURY EMPLOYMENT RELATIONSHIPS: THE CASE FOR AN
ALTRUISTIC MODEL
GAIL P. CLARKSON
Different parties in any form of employment relationship (ER) will display variation in terms of their
motivations and what they want to accomplish. Insights into how we might meet these potentially
competing interests come from the discipline of sociobiology. In particular, this article focuses
upon multilevel selection (MLS); the central tenet being that internally altruistic groups are likely to
outperform their more selfish counterparts, which many contemporary theoretical biologists agree
is a legitimate theory accounting for evolutionary change and success. On the assumption that the
253
interests of all parties are more likely to be realized in the context of overall organizational success,
the simple logic of MLS challenges the quid pro quo arrangements central to dominant theoretical
perspectives of the ER. Drawing upon the growing evidence in support of MLS theory, and longaccepted insights from social psychology, the case for altruism as a model of the ER fit for the
twenty-first century world of work is presented and consideration is given as to how altruistic
behaviors can be encouraged in all parties.
ENJOYING NEW WAYS TO WORK: AN HRM-PROCESS APPROACH TO
STUDY FLOW
PASCALE PETERS, ERIK POUTSMA, BEATRICE I. J. M. VAN DER HEIJDEN,
ARNOLD B. BAKKER, AND THOMAS DE BRUIJN
271
This article investigates the relationships between human resource management practices
associated with New Ways to Work (employee empowerment, home-based teleworking, and
creating trust relationships) and work-related flow as experienced by employees (absorption,
work enjoyment, and intrinsic work motivation). Hypotheses, based on a combined perspective
integrating insights from the HRM-process model and the job demands-resources model, are
tested using multiactor multilevel data comprising employees ( N = 1,017) and their line managers
( N = 89), across 89 job categories in 30 organizations. Although organizations may implement
management practices aimed at empowering employees in particular job categories, this study
showed that anticipated effects on work-related flow (particularly work enjoyment) are not
achieved when employees themselves do not experience being empowered, and when they
do not use and experience their working conditions as job resources (home-based teleworking
and trust relationships characterized by supporting leadership, collegial support, and collegial
commitment). The article concludes with recommendations regarding organizational change aimed
at implementing New Ways to Work and suggestions for future research.
RECONSIDERING BOUNDARIES: HUMAN RESOURCE MANAGEMENT IN A
NETWORKED WORLD
JUANI SWART AND NICHOLAS KINNIE
291
In the twenty-first century, work activities tend to span organizational boundaries and take place in
projects or networks. This cross-boundary working has major implications for current HRM models
that are more suited to an industrial economy, which assumes a single employer and where work
is carried out within a set of clearly defined boundaries. We draw on a decade of empirical research
in cross-boundary contexts to identify: (1) three types of networks (interactive, interwoven, and
integrated) that vary according to their boundary properties, the focus of the work activity, and
the prominent identification; (2) the particular structural, relational, and knowledge-based tensions
(Phelps, Heidl, & Wadhwa, 2012) that are inherent in each networked context; and (3) three HRM
models (buffering, borrowing, and balancing) that are appropriate to sustain networked working
in these contexts. The main contribution of the article is the identification of HRM models in
networked contexts.
EXPANDING THE YOUNGER WORKER EMPLOYMENT
RELATIONSHIP: INSIGHTS FROM VALUES-BASED ORGANIZATIONS
RICHARD P. WINTER AND BRENT A. JACKSON
311
This article aims to expand understanding of managing younger workers by making work values
central to their employment relationship. Attention is focused on values-based organizations
where intrinsic values of societal contribution, work-life balance, and inclusive management
practices may take on added significance for younger workers. Asking younger workers to explain
what “success” or “efficiency” means to them in their work provides a window into the valuesbased reasoning underpinning younger workers’ work-related attitudes and behavior. Personorganization values fit findings suggest areas where the younger worker employment relationship
has possibly expanded (prosocial work, direct communication, managers as mentors, work-life
balance). Implications for managing younger workers in values-based contexts are discussed.
(continued)
NUM BE R 3 , MAY / J U N E 2 0 1 4
HR SCIENCE FORUM
RETHINKING LOVE AT THE OFFICE: ANTECEDENTS AND CONSEQUENCES
OF COWORKER EVALUATIONS OF WORKPLACE ROMANCES
G. STONEY ALDER AND DOUGLAS M. QUIST
329
Researchers have pointed out a wide variety of organizational effects attributable to workplace
romances, concluding that the impact of such romances on the workgroup can range from positive
to negative. To date, however, little research has attempted to pinpoint the elements leading to
this divergence. We suggest that coworker evaluation of a romance or anticipatory injustice may
play a key role in influencing the positive or negative impact of the relationship on the workgroup
at large. Our model proposes that three separate mechanisms (procedural fairness, intragroup
cognitive dissonance, and normative adjustment), each corresponding to a different domain of
evaluation, may mediate the apparent relationship between coworker evaluation of a romance and
various aspects of group performance.
THE EFFECTIVENESS OF RECRUITMENT ADVERTISEMENTS AND
RECRUITMENT WEBSITES: INDIRECT AND INTERACTIVE EFFECTS ON
APPLICANT ATTRACTION
MATTHIAS BAUM AND RÜDIGER KABST
353
This study compares the effect of printed recruitment advertisements and recruitment websites
on applicant attraction and shows how these recruitment activities interact with one another. Our
results indicate that websites have a significantly stronger impact on applicant attraction than
printed advertisements. We show that websites and printed recruitment advertisements have an
indirect effect on applicant attraction that is mediated by employer knowledge. Furthermore, printed
advertisements supplement the positive effects of websites and, thus, the simultaneous use of
multiple recruitment activities directly influences applicant attraction.
EXPANDING INSIGHTS ON THE DIVERSITY CLIMATE–PERFORMANCE LINK:
THE ROLE OF WORKGROUP DISCRIMINATION AND GROUP SIZE
STEPHAN A. BOEHM, DAVID J. G. DWERTMANN, FLORIAN KUNZE, BJÖRN MICHAELIS,
KIZZY M. PARKS, AND DANIEL P. MCDONALD
379
The present study extends knowledge of the performance consequences of workgroup diversity
climate. Building upon Kopelman, Brief, and Guzzo’s (1990) climate model of productivity, we
introduce workgroup discrimination as a behavioral mediator that explains the positive effects of
diversity climate on workgroup performance. In addition, we investigate group size as a moderator
upon which this mediated relationship depends. We test these moderated-mediated propositions
using a split-sample design and data from 248 military workgroups comprising 8,707 respondents.
Findings from structural equation modeling reveal that diversity climate is consistently positively
related to workgroup performance and that this relationship is mediated by discrimination. Results
yield a pattern of moderated mediation, in that the indirect relationship between workgroup
diversity climate (through perceptions of workgroup discrimination) and group performance was
more pronounced in larger than in smaller workgroups. These results illustrate that discrimination
and group size represent key factors in determining how a diversity climate is associated with
group performance and, thus, have significant implications for research and practice.
HOW HIGH-COMMITMENT HRM RELATES TO ENGAGEMENT
AND COMMITMENT: THE MODERATING ROLE OF TASK PROFICIENCY
CORINE BOON AND KARIANNE KALSHOVEN
In a multisource field study, we examine the relationship between employee perceptions of
high-commitment human resource management (HRM), task proficiency, work engagement, and
organizational commitment. Based on conservation of resources (COR) theory, we first propose that
work engagement mediates the relationship between high-commitment HRM and organizational
commitment. Second, we propose a mediated moderation model in which employees’ task
proficiency moderates the relationship between high-commitment HRM and work engagement,
403
which in turn affects organizational commitment. Results indicate that the relationship between
high-commitment HRM and organizational commitment was fully mediated by work engagement.
Results also supported the mediated moderation model. A significant indirect effect was found from
high-commitment HRM to commitment via engagement for low task proficiency, but not for high
task proficiency. Implications and directions for future research are discussed.
HOW DOES RELATIVE DEPRIVATION INFLUENCE EMPLOYEE INTENTION
TO LEAVE A MERGED COMPANY? THE ROLE OF ORGANIZATIONAL
IDENTIFICATION
BONGSOON CHO, DONGSEOP LEE, AND KWANGHYUN KIM
421
Recognizing the importance of postmerger integration from a human resource management
perspective, this study explores the relationship between employee perceptions of relative
deprivation during a merger and acquisition (M&A) process and their turnover intentions. Drawing
on social identity theory, we investigate whether the relationship between relative deprivation and
turnover intention can be mediated by employee organizational identification. The results, based
on a two-phase survey of 222 employees in a merged Korean company, show that egoistic relative
deprivation, defined as people’s feelings of deprivation due to their dissatisfaction with their
position as an individual, predicts employee turnover intention. Moreover, employee identification
with the postmerger organization was found to fully mediate the relationship between egoistic
relative deprivation and turnover intention. The article concludes with theoretical contributions,
practical implications, and future research directions.
CAREER MANAGEMENT STRATEGIES OF PEOPLE WITH DISABILITIES
MUKTA KULKARNI AND K. V. GOPAKUMAR
445
People with disabilities (PWD) tend to experience less career success than their counterparts
without a disability, and their talent and skill remain underutilized. Disability literature also outlines
various barriers to careers of PWD. Yet there are those who successfully manage their careers. Our
aim in the present interview-based study was to understand which strategies PWD engage in to
manage their careers proactively. Findings indicate that strategies include maintaining a positive
mind-set; trouncing competence stereotypes by sensitizing people to their ability through learning
and applying new skills, and by seeking feedback; engaging in disability advocacy to remove
performance myths; and building, leveraging, and contributing to disability networks. We noted
gender and tenure differences with regard to strategies employed. Findings imply that career
objectives of PWD are not those traditionally expected or lauded by organizations, and motivations
for career self-management are unique to PWD as compared to those without a disability.
HR LEADERSHIP FORUM
BALANCING INTERESTS IN THE SEARCH FOR OCCUPATIONAL LEGITIMACY:
THE HR PROFESSIONALIZATION PROJECT IN CANADA
DIONNE POHLER AND CHELSEA WILLNESS
467
Despite broad debates surrounding how the human resource management occupation can
increase its legitimacy, researchers have yet to examine the collective steps HR practitioners are
taking in this regard and the extent to which they have been successful. We conduct a case study
of the HR professionalization project in Canada via multisource qualitative and quantitative data,
which we analyze using a unique integration of the trait and control models from the sociology of
professions, as well as isomorphism from institutional theory. Viewed through the lens of these
frameworks, we find that HR practitioners are attempting to emulate traits that define traditional
notions of professions, and are aspiring to transcendent values associated with balancing the
sometimes conflicting interests of employers and employees. Objective data from external
stakeholders and institutions show that these collective strategies have been somewhat successful
in garnering greater legitimacy thus far, particularly when comparisons are made with the HR
professional project in the United States. We highlight numerous implications for future research
and practice surrounding the legitimacy of the HR profession.
(continued)
NUM BE R 4 , J U LY / A U G U ST 2 0 1 4
SPECIAL SECTION
Are HRM Processes Important?
GUEST EDITORS
Karin Sanders, Helen Shipton, and Jorge F. S. Gomes
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