The Strategic Human Resource Management - Essay Example

The impact of bundles of strategic human resource management practices on the performance of European firms Insert (s) Course Code Date of Submission The impact of bundles of strategic human resource management practices on the performance of European firms Introduction In their research article titled “The impact of bundles of strategic human resource management practices on the performance of European firms”, Gooderham Parry and Ringdal sought to critically analyze the relationship between HRM practices and some of the perceived firm performance in a number of firms in countries under the European Union. Generally the primary aim of the research was to compare the potential impact of bundles of both collaborative and calculative human resource management. The analysis of the impact of the intermediary practices was more of a secondary interest (Gooderham, Parry and Ringdal, 2008, p. 2042). This paper critically evaluates the research design, strategies and methods used in the research article as well as their potential drawbacks to the research. Research design and approach Generally the authors have used a quantitative research method for their empirical study regarding the relationship between human resource management practices and firm performance. The research design used is primarily based on cross sectional data derived from a recent Cranet survey of human resource management in 16 European countries. The authors collected their data through survey questionnaire which were appropriately translated and mailed to the respective human resource managers of the selected sample national firms in all the countries The resulted suggested that 5/6 of the calculative practices as well as two thirds of the intermediary practices had a significant impact on the performance. On the other hand, the analysis of the data further revealed that non of the collaborative practices had any impact on human resource management performance. The dependable variable used by the researchers was firm performance and this was primarily based on the gross revenue of the representative companies over the past three years. In this regard, the authors were able to effectively validate results by comparing the validity between self report and objective measures of the performance of the target firms (Punch, 2006, p.34). On the hand, the independent variables used in the research were the various HRM practices that were obtained from a comprehensive literature review by the researchers. These variables were analyzed using SPSS and the results obtained were then used to support the hypothesis of the researchers. Benefits of the research design and approach There are a number of benefits of the research design that the authors used. For example, while the method use in data collection was too simple it provided the needed information to the researchers. One of the strengths of the research design used is that the literature review has offered a proper basis for the research as it clearly brings out principles and schools of thought that concern the research. For instance the review addresses some of the issues attributed to management system that aims to give the human resource new knowledge, information, motivation that results to a better workforce and commitment (Wright and Snell, 1998,p.764). To validate their findings, the authors have also used a comprehensive literature review in their study. A well outlined and detailed literature review with a detailed introduction to the research was a very good approach towards undertake of this research. The difference between calculative and intermediary HRM bundles and also collaborative HRM bundles has been well outlined. On the other hand, the method of analysis employed by the researchers included the use control variables that effectively provided a broad macrocontext of operation for the sample firms. Consequently this enabled the researchers to control the differences such as institutional settings and the variation in the economic conditions of their respective countries (Saunders et al. 2007, p84). Lastly, to solve the problem of data being seen as clustered by country, the authors used fixed effects model with simple indicators for all the countries included in the research. In this regard, although the level of a firm’s performance may potentially vary among the countries, the authors assumed that the effects of the other explanatory variables were similar. Additionally the researchers effectively minimized the likelihood of any biasness by ensuring close collaboration between the business schools found in the representative countries. problems evaluation the research approach was the best where it were not bias in choosing and interpreting the topics by one country’s approach only (OLeary, 2004, p.203) .Those problems related to the translation of concepts and queries were overcome by close collaboration between businesses schools located in each country. With regard to ethical issues the research has brought out clearly the impotence to observe that HRM evolve from two concepts of the link between employee motivation and firm-level outcomes. The research has clearly outlined the principles to be followed in trying to choose the suitable HRM practice to be followed. Consequently HRM has evolved two distinct conceptions of motivation and firm’s level of outcome when addressing the impact of HRM practices on firm performance. Arthur as well argues that there are two distinct approaches to shaping employees attitude that is control and commitment approaches. These approaches are further categorized as calculative and collaborative respectively, the two seeks to improve efficiency by enforcing psychological links between organizational and employees’ links. The approaches used by the researchers are represented by fundamentally different practitioners’ models and programmes within an organization. For example, the calculative model approach is clearly represented in Fombru et al’s of 1984 which emphasized that superior firm performance is dependent on having in place systems for regular assessment of individual employees (Applebaum and Batt, 1994, p.78).This thereafter led to proposal of two hypotheses used in calculation of human resource management in a firm which include; calculative HRM which will positively impact firm performance and collaborative HRM practices which also has got a positive impact. To ensure that the selection and interpretation of the topic areas of the research were not biased, the researchers ensured close collaboration between the business schools found in the representative countries. A factor analysis of the different HRM practices across the European Union were categorized into 15 bundles of HRM practices which were then further divided into either calculative ,intermediary or collaborative. Potential limitations to the research design There are a number of limitations in the research design and approaches used in the study. First and foremost, the research question is poorly stated. For example the question is not specific and is not well connected to the primary aim of the research which was to compare the impact of bundles of both collaborative and calculative human resource practices on firm performances. The main research topic was how Bundles of Strategic Human Resource Management Practices affects the Performance of European Firms. Similarly the use of only one source, the cranet approach was limiting and did not provide enough information. On the other hand, cross sectional research design which is used in the research usually involves collecting all the data within a short time frame and this may significantly increase the chances of errors in the research. On the other hand, this research method is good for an exploratory research; it can not effectively be used to measure to establish cause and effect because it does not give the researchers control over the independent variables. On result presentation the choice of reporting only the baseline result and excluding the other results is also limiting to the research design and approach. Presentation of all results, well research on and organized would provide a deep understanding of the report findings. Another potential drawback of the study design is that although the research design and approaches used by the researchers was fairly appropriate to their research question, the researchers should have differentiated between long term and cyclical economic conditions in their research. In this regard, a longitudinal research design would have been more ideal since such designs usually combines both macro economic data with the other variables such as those that have been used in the study. It is also worth noting that the choice of research method strategy was not justified as the strategy used could not bring them to find a relationship between collaborative HRM and performance thus the research fell short of the most important aspect on evaluating the strategic human resource management practices (Boselie et al.2006, p.76). There is also a major drawback on the choice of the respondents used by the researchers. For example the authors have only focused on the HR managers and left out other important stakeholders such as the employees of the representative firms. Consequently this increases the likelihood of biased results. A good research design should have included all the stakeholders of human resource management including the employees. Although the response level associated with this kind of research design is relatively low the respondent made up the required minimum sample that formed the basis for evaluation. Lastly, there are a number of obstacles associated with the emailing of the questionnaires originated from translating but were addressed through collaboration. For example the respondents may fail to complete or send back the questionnaire. Suggested alternative research strategies and methods One of the alternative research strategies that I would recommend is longitudinal research design that combines both macro economic data with the other variables such as those that have been used in the study. A longitudinal research design is a research approach whereby data is collected over a long period of time. Measurements are usually taken on each variable over distinct periods such as weekly, monthly or yearly and this is critically important because it allows the researchers to overcome the variations due to contextual factors as well as changes over time (Ruspini, 2000, p.259). Generally some of the potential benefits of this alternative research design include the fact that it makes it easier to collect data, interpret results as well as forecast short term and long term trends. As opposed to the cross sectional research design used in the research, longitudinal research design would have helped the researchers to effectively differentiate between long term and cyclical economic conditions in their research. Another important alternative research deign that would have been appropriate for the research is a case study design. Unlike the cross sectional design which was used by the authors, case studies can be used to effectively examine some phenomenon such as the relationship between collaborative HRM and performance. Additionally case studies not only the facts regarding the subject but also the reasons for their occurrence. One of the potential benefits of using case study design for this kind of research is that it not includes data from various multiple perspectives but it also combines data from different sources such as literature reviews, interviews, observation and participation. Finally according to Paauwe (2009, p.135), the suggested alternative research methods would not only minimize cases of potential bias but will also ensure accurate findings regarding the relationship between collaboration HRM and performance. Conclusion In conclusion, although the research design and approaches employed such as the use of cross sectional data had a number of limitations, the researchers were able to effectively come up with conclusive findings regarding the impact of bundles of both collaborative and calculative human resource management. Consequently future researches in this area should base their findings on a longitudinal research design that combines both macro economic data with the other variables such as those that have been used in the study. References Applebaum, E. and Batt, R. 1994. The New American Workplace: Transforming Work Systems in the United States. New York: Cornell University Press. Boselie, P., Dietz, G., & Boon, C. 2006. Commonalities and contradictions in HRM and performance research. Human Resource Management Journal, 15(3), pp. 67-94. Gooderham, P., Parry, E.& Ringdal, K. 2008. The impact of bundles of strategic human resource management practices on the performance of European firms. The International Journal of Human Resource Management, 19(11), pp. 2041-2056.  Shahnawaz, M.(2006). Human Resource Management Practices and Organizational Commitment in Different Organizations. Journal of the Indian Academy of Applied Psychology, 32(3), pp. 171-178. Ferris, G.R., Hochwarter, B.A., Ronald Buckley, M., Harrell-Cook, G. & Frink, D.D. 1999. Human Resource Management: Some New Directions, Journal of Management, 25(3), pp.385-415. Lawler E. 1991.Participative management strategies: The handbook for managers and resource professionals. Lexington: Lexington books. OLeary, Z. 2004. The Essential Guide to Doing Research. London: Sage Paauwe, J. 2009. HRM and performance: Achievements, methodological issues and prospects. Journal of Management Studies,46(1), pp.129-142. Punch, K.F. 2006. Developing Effective Research Proposals. London: Sage. Ruspini, E. (2000). Longitudinal Research in the Social Sciences. New York. Wiley and sons publishers company. Saunders, M., Lewis, P. & Thornhill, A. 2007. Research Methods for Business Students. 4th ed. Harlow: Pearson Education Ltd. Wall,T. & Wood, S. 2005. The Romance of Human Resource Management and Business Performance, and the Case for Big Science’, Human Relations, 58 (4):pp.429-462. Wright, P. & Snell, S. 1998. Towards a Unifying Framework for Exploring Fit and Flexibility in Strategic Human Resource Management. Academy of Management Review, (23), pp. 756-772. Read More