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Edgar and Geare Article
Edgar and Geare Article
Human Resources
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Most research in the area of human resource management (HRM) has been
conducted from a managerial or academic perspective, and, apart from some
rare exceptions (Guest 1999; Cully, Woodland, OReilly and Dix 1999), the
employee voice has been afforded very little attention. This situation developed
even though employees are considered to be an organisations most important
asset and most models of HRM identify them as being an important stakeholder in the employment relationship. This paper builds the employee
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viewpoint into HRM by exploring their views on HRM practice and identifying what it is about HRM they consider important. In doing so some of the
ways incorporating the employee voice into studies on HRM can benefit the
field are highlighted.
Models of HRM
All variants of HRM are ultimately concerned with the effective management
of people so that organisations achieve their objectives and goals. However, at
least according to the British literature (Keenoy 1990), the two principal models
of HRM that came from the United States in the 1980s differ significantly.
There is the strategic model of HRM (Fombrun, Tichy and Devanna 1984),
characterised as hard, and the Harvard variant (Beer, Spector, Lawrence,
Quinn-Mills and Walton 1984; Walton 1985) characterised as soft.
Under the hard model, the effectiveness of HRM is measured using some
sort of criteria that reflects organisational performance (for example, profitability, productivity levels, absenteeism, and turnover rates see Edwards
1995; Becker and Gerhart 1996; Huselid 1995). Here the outcomes from the
effective utilisation of human resources for the organisation are of paramount
importance, whereas outcomes for employees do not enter into the equation
thus with this model employees are largely considered a means to an end.
Under the soft model of HRM, business performance is still the primary
objective, but importance is also attached to employee well-being and employee
commitment. Employee well-being is an end in itself, and can be used as a
measure of effectiveness of HRM (Guest 1999). It is also a means to employee
commitment, which in turn is a means to improved business performance.
From an ethical viewpoint this balancing of the needs and interests of the
organisation with those of individuals is widely supported and seen as a
necessary obligation on the part of employers (Payne and Wayland 1999).
Securing employee commitment has come to be seen as pivotal to the
success of HRM. For example, Guest (1999, 6) claims only by winning the
commitment of employees is it possible to achieve corporate goals and furthermore suggests (Guest 1998, 42): The concept of organisational commitment
lies at the heart of any analysis of HRM. Indeed, the whole rationale for introducing HRM policies is to increase levels of worker commitment so that other
positive outcomes can ensue.
Underpinning this relationship is the view that employee attitudes and
behaviours can be affected by human resource policies and practices and it is
this perspective which has been adopted by most HRM researchers (Whitener
2001; Arthur 1994). However, it is likely some practitioners face some very real
dilemmas as they try to reconcile the rhetoric of soft HRM with its emphasis
on developing employee commitment, when for many employees the employment relationship is no longer based on permanence (Mallon 1998; Fournier
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Method
Participants for this study were secured by firstly writing to all those employers
in the Wellington and Christchurch regions, listed in the New Zealand business
whos who, with 50 or more employees. In total 234 organisations were
contacted, with reminder letters being sent to those who had not responded
one month after the initial contact was made. Of these 234, a total of 52 agreed
to participate (22%). Twelve of these 52 subsequently withdrew their consent,
leaving a total sample of 40 organisations. This low response is not uncommon
at the organisational level and research by Tomaskovic-Devey, Leiter and
Thompson (1994) has found that organisational non-response is predominantly
the result of organisations either not wanting to divulge confidential information or an unwillingness to expend the time involved.
Participation was voluntary, confidentiality was guaranteed, and the
company fully endorsed their participation. The targeted population of
employees consisted of a total of 1075 full- and part-time workers. A total of
626 employees responded (a response rate of 58%) by completing the questionnaire and returning it in the reply-paid envelope provided. This response
rate compares very favourably for survey research in this area (Scandura and
Williams 2000). Employers were requested to distribute the surveys to a representative sample of their workforce, in terms of occupational classification,
ethnicity and gender. The number of employees in each organisational sample
was based on organisation size, with 10 per cent (a minimum of 20 and a
maximum of 50) of employees from each organisation being requested to
participate.
The data were analysed using SPSS 10.1, a statistical analysis program
specifically designed for use in the social sciences. The results reported here
primarily involve the analysis and reporting of descriptive and frequency data,
along with correlation analyses aimed at assessing the relationships between
the variables.
The survey administered to employees included a section requesting a
range of demographic information, such as ethnicity, gender, occupation and
age. The strength of soft HRM practice is measured using a 20-item perceptual scale (a = 0.9256), comprising five items for each of the four areas
examined. Participants are asked to indicate the extent to which they agreed
(using a 5-point Likert scale ranging from strongly disagree = 1 to strongly
agree = 5) with each of these statements (for example: EEO is promoted
within this organisation). The five items for each functional area were
later collapsed, enabling the relationship between assessments about
the strength of HRM practice and levels of employee commitment and
employee well-being to be explored. Three additional HRM-focused
questions tapping the employees overall impression of their employer were
also included.
Employee commitment is measured using a shortened version of the
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made for employees to make any additional comments about HRM practices
in their organisation should they wish to do so.
The sample
An analysis of the demographic data obtained from participants is presented
in table 1. The sample is skewed in terms of occupational classification. Some
53 per cent of participants classified themselves as belonging to the professional occupational grouping. However, this groups representation in the
actual labour force is considerably lower. The remaining variables are reasonably representative of these groups respective representation rates in the New
Zealand labor force.
Results
Employees were first asked to assess the strength of current operationalised
HRM practice in their organisations as well as provide an overall impression
of their employer by indicating the extent to which they agreed with each
statement (see table 2). The results show employees tended to agree or moderately agree with all of the statements on soft HRM practice. This suggests that
all of the HRM practices in those areas examined are indeed used in their
organisations.
Participants were then asked to provide an evaluative rating of their
employers current performance for a range of HRM areas (see table 3). Ratings
of employer performance across these functions reveal some differences of
sizeable magnitude. While the functions of health and safety, sexual harassment and EEO appear to be performed relatively well, others, notably
Table 1
Demographic
variable
Percentage (%)
Gender
Males
Females
46
54
Age
Under 20
2050
Over 50
2
78
20
Ethnicity
European
Maori
Polynesian
Chinese
Other
78
7
5
5
5
Demographic
variable
Percentage (%)
Length of service
Less than 1 year
15 years
6 years plus
16
47
37
Occupation
Professional
Semi-professional
Clerical/administration
Trades
Labourer
Other
53
13
24
3
3
4
Sector
Public
Private
55
45
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Table 2
No.
Area
H&S
H&S
3.95 (1.147)
H&S
4.21 (.958)
H&S
4.02 (1.053)
H&S
3.88 (1.048)
R&S
3.72 (1.076)
R&S
3.57 (1.179)
R&S
3.93 (1.152)
R&S
3.10 (1.237)
4.18 (.924)
10
R&S
3.48 (1.225)
11
EEO
3.37 (1.037)
12
EEO
3.85 (1.064)
13
EEO
3.82 (.996)
14
EEO
3.86 (1.155)
15
EEO
Promotes EEO
3.69 (1.047)
16
T&D
3.91 (1.091)
17
T&D
3.86 (1.137)
18
T&D
3.84 (1.176)
19
T&D
3.89 (1.117)
20
T&D
3.88 (1.048)
21
Overall
4.16 (.951)
22
Overall
4.09 (.989)
23
Overall
3.87 (1.055)
* 1 = Employee strongly disagrees this practice occurs in their workplace, 5 = Employee strongly agrees
this practice occurs in their workplace
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Table 3
2005 43(3)
Mean
Std dev.
3.86
.91
3.31
1.05
Sexual harassment
3.75
.96
3.30
.99
EEO
3.63
1.04
Performance appraisal
3.11
1.10
3.37
1.03
3.11
1.05
3.36
1.09
Promotion
2.93
1.00
Performance ratings
.505*
.607*
.648*
4. EEO
.588*
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Table 5
Item
Mean
Std dev.
3.73
.783
3.70
.865
3.72
.797
These results (see table 6) showed that employee assessments of current HRM
practice were all highly and statistically significantly correlated with both
employee commitment and employee well-being.
Job satisfaction was most strongly correlated with training and development, and health and safety, with recruitment and selection, on the other hand,
being the strongest correlate of organisational fairness. EEO had the weakest
correlation with all three employee work-related attitudes. The scale
measuring an employees overall impression of their employer and HRM
practice in their organisation was the largest correlate with respect of employee
attitudes. This supports those findings obtained in prior studies that also find
a relationship between HRM practice and employee attitudes, and furthermore
suggests that these four areas of practice have the potential to elicit desirable
organisational benefits. However, caution is required here in drawing any firm
conclusions as these results do not tell us anything about causality between the
variables in question, nor has the possibility been addressed that these findings
are contaminated by problems associated with common method variance, i.e.
an artificial correlation across questions due to mood or other contaminants
(Fiorito 2002, 217).
If we accept that soft HRM practice is probably going to produce beneficial outcomes for the organisation and the employee, then are there some areas
of practice that are more likely to contribute positively to this end than others?
Table 6
OC
OF
JS
.593*
.620*
.625*
.541*
.649*
.570*
.595*
.592*
.631*
EEO
.520*
.553*
.495*
.721*
.762*
.746*
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Table 7
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Area of HRM
Total employees
Percentage
508
81
Salary/wages
442
70
Performance appraisal
316
52
316
51
246
40
EEO
232
37
Promotion
177
28
124
20
Discipline/discharge
37
Sexual harassment
23
* Some respondents did not complete this section of the survey therefore the N of the sample was reduced
from 626 to 620.
To answer this question, participants were asked to identify from a list of ten
functional HRM areas, the four they consider to be most important. It is likely
employees will attribute most importance to those HRM functions which best
help them meet their needs.
The results in table 7 reveal a high degree of consensus among employees
that the opportunity for training and development is of paramount importance. A slightly lower level of consensus is evident for salary and wage entitlements, with a moderate level of agreement being found for the areas of health
and safety, and performance appraisal systems On the other hand, the areas of
EEO and recruitment and selection are considered to be important for around
only 37 per cent and 20 per cent of employees respectively. Arguably, this is
not surprising as participants have already gained entry into the organisation.
The group who are most likely to see this matter differently are those who
have applied for a position within the organisation and have subsequently been
declined. This therefore highlights the importance and need to collect data in
HRM studies from a wider group of stakeholders.
The importance employees appear to place on training and development
and the need for employers to provide more opportunities for this reflects the
growing body of literature that suggests the notion of a job for life has gone
and employees need to take some responsibility for their own career management. Some time ago, human resource practitioners wrote about this change
in direction (Tornow 1988, 97 and 99):
Paternalism and job security are out these days. Taking responsibility for
your own career is in The need for lifelong learning is also becoming
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more apparent. To participate in the job market, workers must also avoid
skills obsolescence
The logic for employers providing their employees with training is that it
enables them to do their jobs better. The logic behind development is that it
enables employees to do future tasks better, possibly as a result of promotion,
job expansion or job change. Investment in these areas supposedly equips the
organisation with a high performing workforce, providing it with flexibility
should it be required (Pfeffer and Veiga 1999).
The benefits to the employee are that they enhance their employability
and foster the development of lifelong learning skills. These benefits are seen
as desirable in a time when job security is no longer an attainable goal for many
employees.
To some extent training and development may be seen as a risky investment by employers as workers may leave the organisation and take the
acquired skills elsewhere. However, if training and development is valued by
employees the provision of this benefit is likely to positively impact on
employee retention.
Finally, for verification purposes and also to enable a more accurate
insight about the actual level of importance attached to various HRM functions
to be obtained, employees were asked to indicate, using a 5-point Likert scale,
the extent they considered the four areas of HRM practice that comprised the
focus of this research to be important. These results are presented in table 8,
and are reasonably consistent with the results presented in table 7. While all
areas received relatively high ratings, EEO was again afforded relatively less
importance. Recruitment and selection, on the other hand, rated much higher
than when respondents had 10 function areas to choose from. Clearly the type
of measures used affects the results obtained and this shows why more
supporting data, preferably of a qualitative nature, are required about the
relative importance of various HRM functions before any inferences can be
made about what really counts for employees.
In this study, this requirement was in some part addressed by the
provision of the open-ended question. When employees were provided with
Table 8
Item
Mean
Std dev.
4.83
.43
4.67
.75
EEO
4.03
.83
4.80
.57
373
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this leave. 10 days doesnt go far over a year. An employer can appear
exemplary in terms of its stated policies on HRM practices. However, it
is how these policies are applied (or not applied) that is important. My
employer looks good in terms of its stated policies, but I have some
concerns at how they are applied by some managers.
On the other hand, there is evidence to suggest that some organisations have
got it right and their policies are working well: I work 60% of full time [24
hrs/wk] and am able to balance work and family without undue pressure and
continue to be paid commensurate with my full time co-workers.
It is of interest that so many employees made comments about the lack
of consistency or the presence of unfair practices in their workplace. It is widely
accepted that common law in New Zealand has addressed the issue of fair
and proper treatment of employees, yet one-third of employees who made
comments reported that HRM practices in their organisation were either
unfair or lacked consistency in their application. It is possible that these perceptions have grown out of the employee dissatisfaction noted earlier in relation
to EEO initiatives that are seen to overtly favour some target groups.
Poor communication and a lack of participation in decision-making
were also identified by a large number of employees as major problems.
Communication in the workplace relates to the process of information sharing,
and is an aspect of employment practice that is under managements control
(Wimalasiri 1995). Research shows that it is positively correlated with
employees work-related attitudes, and thus is crucial to effective organisational functioning (Wimalasiri 1995). Some 117 employees made reference to
communication problems in their workplace. A few examples of the types of
issues raised by employees are as follows:
Overall very good place to work, though I feel management lacks certain
communication skills with staff and makes a pretence to listen to what
staff want but make there own decisions with what seems to be little
consideration for staff views.
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Fiona Edgar (PhD) did her PhD on a Foundation for Research, Science and Technology Fellowship, and
currently works as a lecturer in the Department of Management at the University of Otago. Her current
research interests include examining the relationship between HRM practice and its impact on
employees, along with the relationship between workplace ideology and HRM practice.
Alan J. Geare (PhD) has been professor of management, University of Otago, since 1987. He is author
of a number of books and many articles in industrial relations, industrial law and HRM. He has worked
as a consultant to companies and unions and has been a government-appointed mediator and
adjudicator.
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