Human Resource Management

Strategy of a company: a pattern of decisions emerging throughout the firm
Seven Best Practices (Pfeffer 1998): high commitment & involvement
Employment security: job secured/ the fundamental element of the model
Selective hiring: raise skill level of new employees to achieve human capital advantage as source of sustained competitive advantage
Teamworking: group of employees be responsible for group task
High compensation: motivation for employees to perform better; above-average compensation- attract and retain the core high-quality employees
Extensive training: sustained competitive advantage & remain the employees’ skill at forefront of their field
Small status differences: (status btw managers and employees) overall equal treatment encourages employees involve in work with higher responsibility
Information sharing: convey a message of ‘trust’, encourage bottom-up communication (idea sharing)
Arthur (1992, 1994)
Quality Enhancement / Innovation Strategy:
teamworking ↑
pay ↑
training ↑
employee involvement (discretion) ↑
use of internal labour markets (employment security) ↑
Cost Reduction Strategy
training ↓
teamworking ↓
pay ↓
ad hoc recruitment and selection ↑
use of temp workers, subcontractors and migrant workers ↑
+. Huselid (1995) cross-sectional study of 968 US workplaces: best practice workplaces had annual profits per employee $15,000 per annum higher
Patterson (1997) studies of 67 UK manufacturing: best practices as a driver to improved performance
Pfeffer (1998): best practice HRM has the potential to have positive imparct on all organizational performance regardless of company profile
-. Purcell (2003): diverse lists of desirable practices: beyond a certain level of obviously sensible practices, managers start to think about their unique context. Therefore, best practice models engender diversity rather than uniformity in HRM.

  I. Basic pay:
Job based- compare task & responsibility of different job...