Abstract

Human resource management in Germany is deeply rooted in its institutional environment. Thus, US style HRM cannot be simply transferred to the German context. Nevertheless, the German business system is not hostile to HRM principles. Rather, these practices have to be adapted to the demands and constrains of the German socio-economic context. The key labour market institutions of collective bargaining, co-determination, and initial vocational training in particular require a pluralist style of human resource management. As our review suggests, these institutions support the implementation of some HRM principles while inhibiting others. Also, the concept of Strategic HRM in Germany may only be fully understood against the background of labour market institutions.

Highlights

  • HRM philosophy and rhetoric has its origins in the US

  • Our analysis of how HRM principles have been implemented in German companies shows two things

  • The high priority of these principles has crystallized in formal structures – and this occurred before, and independent of, the German HRM discussion that began in the 1980’s

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Summary

Introduction

HRM philosophy and rhetoric has its origins in the US. From a European viewpoint the US form of HRM is perceived as unitarist and individualistic (Müller, 1999a). Several European scholars have questioned the simple application of American HRM principles and values (e.g., Brewster 1993, 1995, 1999; Guest 1990, 1994; Kabst/Brewster 2004). In this respect, Germany is a interesting country. Managerial decisions are much more strongly framed by the institutional environment than in other countries As it should become evident throughout this paper, this holds true especially for the management of human resource issues. By doing this, we examine via the example of Germany the limitations of a universalist, unitarist, and top-down conceptualisation of HRM

Reception of the HRM philosophy in academia
Collective bargaining
Initial vocational training
Reception of the HRM philosophy in companies operating in Germany
The human resource management of foreign owned companies in Germany
Findings
Conclusion
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