Innovative HR Practices Research Articles

HRM innovations by Indian and foreign MNCs operating in India: a survey of HR professionals

The purpose of this study is to examine the innovative practices adopted by Indian and foreign high-tech firms operating in India as well as Indian human resource management (HRM) managers' perceptions of ‘ideal’ staffing practices. The research question was examined using quantitative and qualitative methods. First, three case studies were conducted to explore the different types of innovative HR practices prevalent among technologically intensive MNCs operating in India. Second, an online survey of 66 Indian HRM managers was conducted to find out how they viewed the term ‘innovation’ in the context of HRM practices. The results revealed differences between foreign firms' perceptions of innovations in HRM (HRMI) and their Indian counterparts. There is a greater emphasis on parent subsidiary alignments in foreign MNCs, something that Indian MNCs are less concerned with. For now, the Indian MNCs are clearly focused on managing performance from within, and have put in place innovative culture-building practices. In contrast, foreign MNCs are focused on keeping the balance between parent and subsidiary and standardizing the HRMI practices in various global areas. Foreign MNCs also tend to be conscious of the cost and performance aspects more than Indian MNCs.

High‐involvement work practices and analysts' forecasts of corporate earnings

AbstractResearch has shown that high‐involvement work practices are positively related to corporate financial performance. However, it is unknown if investors are able to use information on high‐involvement practices to predict the performance of specific companies. In this study, we examine earnings forecasts for a sample of Fortune 1000 firms and find professional stock analysts consistently underestimated the earnings of firms that made greater use of high‐involvement practices during the 1990s. Based on data collected from newspaper articles and annual reports, we argue that these lower estimates resulted from a lack of information on innovative HR practices. Recommendations to managers for disseminating information on and leveraging highinvolvement HR practices are discussed. © 2006 Wiley Periodicals, Inc.

UK public sector reform and the “performance agenda” in UK local government

PurposeTo examine how an external performance review process introduced as part of the public sector modernisation agenda in England and Wales has impacted on HR service provision and processes in local government and the extent to which it has acted as a catalyst for the development of more integrative and innovative HR practices to support organisational performance.Design/methodology/approachA case study analysis of the Best Value Review (BVR) process of HR services at two county and two unitary authorities generated data from multiple sources including interviews, focus groups, consultative meetings as well as internal documentation. This approach was adopted to offer perspectives from different stakeholders in the employment relationship.FindingsThere was found to be a frequent lack of synergy between organisational goals, departmental plans and the performance objectives of individuals combined with an absence of shared understandings about human resourcing priorities or commitment to the processes needed to strategically integrate HR policies.Research limitations/implicationsWhilst providing insights into the Best Value (BV) approach to public sector modernisation, a wider generalisation of the findings cannot be drawn from four case studies.Practical implicationsLine management and the HR function need to share better understandings concerning the HR practices needed to support the modernisation agenda and their respective HR responsibilities.Originality/valueThis paper reveals that the BV performance regime was not encouraging, and even limiting, a corporate approach to the HR policies and practices required to develop longer term organisational capability.

Re-engineering the HR Function at Harley Davidson

The case gives a detailed account of HR initiatives pursued by Harley Davidson, a leading manufacturer of motorcycles in U.S. The case describes the role of innovative HR practices in transformation of Harley Davidson company. The case also details the transition from Industrial Relations to Employee Relations at Harley Davidson and the emergence of HR function where HR strategy is aligned with Business Strategy.

Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry

Using a unique international data set from a 1989–90 survey of 62 automotive assembly plants, the author tests two hypotheses: that innovative HR practices affect performance not individually but as interrelated elements in an internally consistent HR “bundle” or system; and that these HR bundles contribute most to assembly plant productivity and quality when they are integrated with manufacturing policies under the “organizational logic” of a flexible production system. Analysis of the survey data, which tests three indices representing distinct bundles of human resource and manufacturing practices, supports both hypotheses. Flexible production plants with team-based work systems, “high-commitment” HR practices (such as contingent compensation and extensive training), and low inventory and repair buffers consistently outperformed mass production plants. Variables capturing two-way and three-way interactions among the bundles of practices are even better predictors of performance, supporting the integration hypothesis.