The Value of Devolving HRM to Line Managers: An Evidence-based Review and Research Agenda

Abstract

The devolution of HRM responsibilities to line managers has generated a rich body of scholarly work in the last several decades. However, questions remain on whether devolution is a value-adding endeavor that organizations must adopt. To address this, we provide a comprehensive overview of the empirical outcomes of devolution on multiple stakeholder groups at the individual and organizational levels using a sample of 61 studies in the extant literature. Our findings reveal diverse outcomes for HR professionals, line managers and employees, as well as mixed positive and negative outcomes at the organizational level. Our study’s main contribution lies in three significant insights that reconcile such disparate outcomes: (1) taking into account the diversity among stakeholders’ characteristics and goals; (2) applying the opportunity cost theory from behavioral microeconomics; and (3) addressing the complexity of devolution, and improving the process through ideas from stakeholder synergy theories. Ultimately, we affirm that devolution offers value to organizations, and propose several agenda for future research.