Chief human resources officers on top management teams: an empirical analysis of contingency, institutional, and homophily antecedents

Magdalena Abt,Dodo Zu Knyphausen-Aufseß

doi:10.1007/s40685-016-0039-2

Magdalena Abt, Dodo Zu Knyphausen-Aufseß

Open Access

https://doi.org/10.1007/s40685-016-0039-2

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Journal: Business Research	Publication Date: Sep 21, 2016
Citations: 12	License type: open-access

Affiliation: Technische Universität Berlin

Abstract

Having the director of human resources (HR) as a member of the top management team (TMT) and giving him/her the title of chief human resources officer (CHRO) indicates an important strategic and symbolic choice. Such decisions not only determine who participates in controlling an organization and setting its strategic direction, but also reflect the organizational structure. In this paper, we examine the antecedents of CHRO presence according to the contingency, institutional, and homophily theories. Based on a multi-industry sample of 215 firms that considers a 10-year period, we find that the presence of a CHRO is influenced by the rates of unionization, rapid declines or increases in numbers of employees, the employment of a new or outsider chief executive officer (CEO), and the institutionalization of the CHRO position in the industry or firm. However, we find no evidence of the presumed influence of knowledge intensity or the CEO or TMT human resource management (HRM) experience. Overall, we find that the institutional theory has the highest explanatory power regarding the existence of CHRO positions.

Highlights

Since Hambrick and Mason’s (1984) groundbreaking article, the study of top management teams (TMTs) has developed into a prominent area of management research (Carpenter et al 2004)
Based on a multi-industry sample of 215 firms that considers a 10-year period, we find that the presence of a chief human resources officer (CHRO) is influenced by the rates of unionization, rapid declines or increases in numbers of employees, the employment of a new or outsider chief executive officer (CEO), and the institutionalization of the CHRO position in the industry or firm
The purpose of this study was to determine the factors associated with the likelihood of a CHRO on a TMT, and establish what theories are suitable for explaining these factors

Summary

Introduction

Since Hambrick and Mason’s (1984) groundbreaking article, the study of top management teams (TMTs) has developed into a prominent area of management research (Carpenter et al 2004). Promoting directors of human resources (HR) to the ranks of the upper echelon, and granting them titles such as chief human resources officer (CHRO) or personnel director, is an important structural, strategic, and symbolic choice. It signals a fundamental change in managerial roles, demonstrating the greater influence of institutionalized HR in the TMT structure.

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