Study shows strong union presence specifically encourages use of person-centered human resource management (HRM) practices, but discourages performance-centered ones

Abstract

Purpose The researchers wanted to find out a number of things. First, they wanted to assess the influence of strong unions on approaches to HRM. Second, they wanted to know if the strategic HR function had a positive effect on both person-centered and performance-centered HRM. Third, they tested the theory that the economic context had a significant influence on HRM practices. Companies in liberal market economies (LMEs), for example, were expected to adopt more performance-centered HRM, but for companies in coordinated market economies the reverse was likely to be true (CMEs). Design/methodology/approach Cristiani et al collected their data from the Cranet 2009 survey, the world’s largest comparative analysis of HRM practices. They sent out a questionnaire to senior managers responsible for HRM at private multinational companies. The authors sampled 3,406 firms across 14 countries. They placed six OECD nations in the LME group (Australia, Canada, Ireland, New Zealand, the UK, and the USA) and ten in the CME group (Austria, Belgium, Denmark, Finland, Germany, Japan, Norway, Sweden, Switzerland, and the Netherlands). Findings The data revealed that the strategic HR function had a positive effect on the adoption of both person-centered and performance-centered HRM. The study also demonstrated that a more powerful union presence encouraged the use of person-centered approaches, whereas it discouraged performance-centered ones. The data suggested that the variety of capitalism (VoC) moderated the relationships between the strategic HR function role and performance-centered HMR, but the same impact on person-centered approaches was not found. Originality/value Proof of the moderating effect of the VoC shows that HR professionals – especially at multinationals - need to align their practices with the larger context in which their company is operating. The most valuable finding for businesses was the impact of a strong union presence on which HRM practices were likely to be accepted, or rejected.