Current Developments in Theory and

Research on Human Resource Management

David Guest
Professor of Organizational Psychology and
Human Resource Management
Kings College, London
Aims of presentation
Review progress

Point to areas needing development

Set some research agendas


Start with definition of HRM
What is Human Resource Management?
All those activities associated with the management of
work and people in organizations
(Boxall and Purcell, 2011)

HRM is concerned with a set of practices and their
application and can be viewed as a system for
management of people at work

All organizations need HRM; but HRM is only likely to be
taken seriously if it can demonstrate impact. This is why
the link between HRM and outcomes is so important.

The Good News: Impressive Progress
After 25 years of contemporary research and writing, we are much
more knowledgeable about HRM:
Strong evidence of a link between HRM and performance
Advances in understanding role of external fit
Advances in understanding internal fit
Recognition that HRM operates as some kind of system
Evidence that HRM can have a positive link with employee well-
being
Advances in understanding linkages between HRM and
performance and determinants of effective implementation
Adoption of multi-level models of analysis and sophisticated
research methodology
BUT still a lot of unanswered questions
Recognise the Challenges of a Maturing Field:
Stages in the Development of HRM Research
The promise of HRM and mapping the field: concern for
strategy and commitment
Early empiricism: demonstration of link between HRM and
performance Huselid, MacDuffie, Arthur etc.
Backlash: conceptual critique (Legge, Keenoy); empirical
critique (Dyer & Reeves, Becker & Gerhart)
Conceptual refinement: AMO model: resource-based view;
Institutional perspective
Focus on worker: employee accounts of HRM and employee
attitudes and behaviour as central to impact
Growing sophistication: complex models and multi-level
analysis
Research Challenges
Defining the nature of HRM and measuring it

Defining performance and other outcomes and
measuring them

Theorising and operationalising the process whereby
HRM and outcomes (performance) might be linked

Establishing the evidence

The First Research Challenge

Defining Human Resource Management and
Measuring It

Link between external and internal fit
Deciding on the particular model of HRM
Determining sources of information
Linking Strategy and HRM
(Schuler and Jackson, 1987)
Company mission and values

Competitive strategy

Required employees and employee behaviours

HR practices aligned to requirements

Employee behaviour aligned with strategic goals
Clarifying HRM Systems
Much contemporary research and writing is trying to describe
human resource systems
Special issue of Human Resource Management Review (Vol
22: Issue 1) addresses this.
Posthuma et al (2013) in JoM offer an empirical taxonomy,
sorting 61 practices into 9 categories
But all are operating within a high performance work systems
paradigm
Nature of HRM: Alternative Models
Dominance of concept of HPWS a misnomer. Need
alternatives that recognise range of stakeholders in outcomes
High commitment HRM
High involvement HRM
High partnership HRM
And their opposites; so commitment vs compliance (control in
Walton)
Boxall and Macky 2009 distinguish focus on work practices
from focus on employment practices; show their link and
argue for neglect of many aspects of employment in HPWS
Cultural factors European and Australian legislation requires
certain employment practices

High Performance Work Systems (HPWS) HRM
Focus on human capital and mechanisms for leveraging it to
enhance performance: neglects employee outcomes
Note weakness of measures of human capital and neglect of
much of HRM
Tendency to focus on incentives as motivators and controls
Meta-analyses show:
Human capital considered alone has an association with financial
performance (Crook et al)
Human capital and incentive based motivation combine additively to
affect performance (Jiang et al)
Limited attention paid to Contribution dimension because often
neglected in research
High Commitment HRM
Recruitment & selection
Training & Development
Opportunity to
participate
Employee
motivation
Employee
competence
Job design
Involvement systems
Communication
Performance appraisal
Financial rewards
Feedback
Employee
commitment
Internal promotion
Security
Fair treatment
Met psych. contract

Higher employee
performance

and

Higher employee
well-being
High Involvement Work System
Business Practices



Work design
Incentive practices
Flexibility
Training
Goal-setting

High Involvement
Work Processes


Power
Information
Reward
Knowledge

Workforce
Psychological
Adjustment

Organizational
commitment
Job satisfaction
Intention to quit

Organization
Effectiveness


Turnover

Return on
Equity

Partnership HRM
Stakeholder approach, recognising the need to accommodate
different interests
Focuses on both high performance and high well-being
Can accommodate a wider range of HRM: both work
organisation and traditional personnel that is neglected in
other models (the fairness agenda)
Evidence consistently suggests direct participation through
autonomy/job design works well but best of all when
combined with representative participation
Close to Nordic/Germanic European model
Approaches to the
Measurement of HRM
Individual practices
Bundles of practices ideally theory-based
Interactions of bundles (and with strategy)
Count of HR practices in place: choice of presence of practice;
extent of coverage; application to key employee group
Effectiveness/implementation of HR practices
Question of who provides the information ideally multiple
respondents
Choice depends on theoretical perspective but note that a key
feature of HRM is the system concept
The Second Research Challenge:

Measuring Outcomes

Focus has been mainly on performance
In the case of performance, need to distinguish
proximal and distal outcomes
Need to broaden to consider a stakeholder
perspective

Approaches to the Measurement of
Performance

Standard performance indicators: financial,
productivity quits etc both proximal and distal
Goal-based perspectives manage a merger
Resource acquisition models unions and
universities
Bench-marking and ratios popular but limited
Process models; effectiveness of policies
Stakeholder perspectives subjective outcomes
What Outcomes do Workers Want?
Job satisfaction
Work-related well-being
Work-life balance
Adequate and fair rewards
Good employment relations
High quality of working life
Health
Life satisfaction

Raises the question of what employers are obliged to
provide what is the psychological contract?

The Third Research Challenge

Understanding and Exploring the
Implementation of HRM

Extent of implementation
Influences on implementation
Key actors in implementation
Exploring the Linkages: HRM and the Role
of Employee Responses
Background
factors

Sector
Size
Ownership
Strategy

Human
resource
practices

HR practices
Employment
relations
practices
and climate
Employee
attitudes and
behaviour

Job
satisfaction
Organizational
commitment
Motivation
OCB
Individual
performance
Internal
performance
indicators

Productivity
Quality of
goods and
services
Labour
turnover
Absence
Accidents
External
performance
indicators

Sales
Financial
performance
HRM Practices at Company Level in the
UK: Counting the Practices

Key HR Practices
14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
P
e
r
c
e
n
t

o
f

O
r
g
a
n
i
z
a
t
i
o
n
s
16
14
12
10
8
6
4
2
0
Number of HR
practices in UK
companies
(N=610)
FofW data
Why the Low Adoption of Practices?
(Guest and King, 2004)

Not aware of the evidence/message
Dont believe the message
Dont believe it is relevant to them
Already do it all/do enough
More important priorities
Sceptical of HR fad and fashions and gurus
Dont know how to implement high commitment
HR/where to start
The Implementation Challenge
Khilji and Wang (2006) highlighted a gap between
intended and implemented practices
Implies that it is not enough to have good HR policy
and practice
Guest & Conway (2011) show that
implementation/effectiveness is more strongly
associated with performance than HR practices
Draws attention to the roles of HR specialists, top
management and line managers
A Case Study of Implementation
Specific case of practices versus
implementation
Context of healthcare in the UK
Levels of reported bullying and harassment of
staff by staff higher than in most other sectors
Considerable pressure to reduce reported
levels
A Process Theory of HR Implementation
Stage 1: Decide to introduce a practice
Stage 2: Determine the quality of the practice
Stage 3: Line managers agree to implement the
practice
Stage 4: Line managers implement in a quality
way
Stage 5: Staff accept rationale for practice and
respond appropriately
Stage 3-5 cannot occur without 1 and 2
Board/HR responsible for 1-2: line for 3-5?

Definitions of Bullying and Harassment
Harassment
Unwelcome words, actions, or physical contact that frightens,
intimidates or otherwise discomforts another person. Can
involve an isolated incident.
Bullying
Harassing, offending, socially excluding someone or negatively
affecting someones work tasks. Must occur repeatedly over a
period.
NHS Staff Survey
In the past 12 months, have you personally experienced
harassment, bullying or abuse at work?
Bullying and Harassment in the UK
Healthcare. Regional Comparisons
16.2
17.2 17.3
17.7
17.8
17.9 18.0 18.0
18.4
21.6
0.0
5.0
10.0
15.0
20.0
25.0
North
East
West
Midlands
North
West
Yorkshire
and the
Humber
East of
England
South
Central
South
West
East
Midlands
South
East
Coast
London
%

S
a
t
f
f

r
e
p
o
r
t
i
n
g

B
&
H
Bullying and Harassment at a London
Acute Hospital 2004-2008
0
5
10
15
20
25
30
35
2004 2005 2006 2007 2008
%

r
e
p
o
r
t
i
n
g

B
&
H
Host organisation
National Acute trust average
Bullying and Harassment by Care Group in
the Hospital
11
13
20
24
26
27
29 29
33
35
0
5
10
15
20
25
30
35
40
Corporate &
Facilities
Specialist
Medicine
Clinical Services Cardiac &
Neurosciences
Finance Women's &
Children's
Dental Liver & Renal Critical & Surgery Medical Care
Care Group
%

R
e
p
o
r
t
i
n
g

B
&
H
Evidence on Bullying from Staff Surveys
and Interviews
Bullying associated with increased stress /reduced
job satisfaction/higher intention to quit
Bullying affects PSSQ through reduced motivation
and concern to do a good job
Bullying by staff associated with unsupportive work
environment and lack of faith in effectiveness of
relevant HR systems

How does this relate to HR policy and practice in the
hospital?



Best Practice in Management of Bullying

Implementation of a Formal Bullying Policy
Zero Tolerance Approach
Selection of Staff
Implementation of Awareness Campaigns
Address Environmental Problems
Training and Development for Managers and for Staff
Providing Informal Advisory Services
Data monitoring
Support for Victims of Bullying

All are in place at this hospital


Implications for HRM
The hospital has all the right policies and practices in
place but B&H still very high. Why?
Clear gap between intended and implemented
practice
In this context, seemingly good HR can get bad
results because of a poor implementation climate
Implementation may be particularly challenging in
public sector professional bureaucracies
Implies need to focus in implementation on roles of
key actors line, senior and HR management
The Boundaries of HR Functional Responsibility
What can the HR function be expected to contribute?

The function has the promise of exerting distinctive influence through
three main routes
Through the Ulrich model of structure and function
Through promoting the link between HR and performance
Through the traditional role of ensuring fair treatment

The evidence suggests that the HR function has failed on all three
counts, partly because of problems of implementation
As a result, it is unrealistic to expect a major independent HR
contribution. The HR function cannot do it on its own.
Adoption of the Ulrich Model in the UK
CIPD survey: responses from 787 out of 12,000 senior HR
figures
53% have re-structured HR roles in the previous year
81% have re-structured in the past five years
Of those who have re-structured, over half say their current
structure fully or partly reflects the Ulrich model
In practice, only 18% have all three elements in place
Restructuring of the function continues at the same pace
(Kings Speechly Bircham survey). No consensus on the right
structure.
Evaluating the Ulrich Framework:
Evidence from the CIPD/IES Survey
No evidence that organisations using the full model
report better performance

Some indication that those concentrating on the use
of business partners have poorer performance

Issues of cause and effect; are poorer performing
organisations more likely to adopt a new model?
Are HR Managers HR Champions and
HR Innovators?
Analysis of 25 years of WERS (Guest and Bryson) reveals:
No association between presence of a specialist role and
greater use of innovative HR practices
No association between presence of qualified HR
specialist and greater adoption of innovative HR practices
Association between adoption of innovative HR practices
and ratings of workplace performance
No association between presence of HR specialist and
workplace performance
HR managers are still not championing innovative HR
Kochans (2007) USA Evaluation
The human resource management profession faces a
crisis of trust and a loss of legitimacy in the eyes of
its major stakeholders. The two-decade effort to
develop a new strategic human resource
management role in organizations has failed to
realize its promised potential of greater status,
influence and achievement (p.599.
The Challenge of Implementation:
The Role of Line Managers
Consistent gap between intended and
implemented practices (Khilji and Wang) points to
failures by line managers
UK research suggests line managers
are neither capable nor motivated to take on these
(HR) issues (Hope Hailey et al)
Dutch evidence more positive about line managers;
main challenge is pressure of time
Line management role illustrated by case of bullying
and harassment in NHS hospitals
The Challenge of Implementation and the Role
of A Strong HR System
Bowen and Ostroff (2004): implementation a function of the
strength of the HR system:
High consensus; agreement among key stakeholders; fairness of HR
systems
High distinctiveness: visible, legitimate, relevant and understandable
High consistency: consistent, integrated HR policy and practice,
instrumental for goal achievement
Some provisional testing (Stanton et al, 2010) but highly and
imprecise complex model
Role of top management likely to be crucial
Developing Linkage Research
HRM
PROXIMAL
BEHAVIOUR
AMO
FINANCIAL
PERFORMANCE
Individual
differences
Attribution
Strategy Climate
Implementation
Leadership
Role of HR Function Role of Line
The Fourth Challenge

Establishing the Evidence

Ideally longitudinal multi-level, multi-respondent
Most research is cross-sectional
Varied measures, especially of HRM, challenge the
accumulation of evidence
Need to differentiate outcomes
Key challenge it mutual gains versus transaction/
exploitation
HRM and Performance:
The Starting Point: The Simple Model

HRM

Organizational Performance
HR Practices and Profit per Employee in
the UK Private Sector

Source: FoW (N=297)
Number of HR practices
11+ 8 to 10 5 to 7 0 to 4
P
r
o
f
i
t

p
e
r

e
m
p
l
o
y
e
e

(

)
4000
3000
2000
1000

HR Practices and Labour Turnover
HR practices (UK)
11+ 8 to 10 5 to 7 0 to 4
A
n
n
u
a
l

e
m
p
l
o
y
e
e

t
u
r
n
o
v
e
r

>

1
5
%
40
30
20
10
HRM and Performance: Reviewing the
Evidence
Around 1995, a series of studies appeared all showing an
association between a combination of HR practices and
workplace or organizational performance
Huselid (1995) top US organizations
Arthurs (1994); Ichniowski et al (1994) - strip steel mills
Delery and Doty (1996) - banks
MacDuffie (1995) - auto industry

A decade later, major reviews confirmed an association across
many studies
Boselie, Dietz and Boon (2005)
Combs, Liu, Hall and Ketchen (2006)

Also highlighted research challenges and issue of causality
Bringing Employees Centre-Stage
Linkage model confirms that HRM has its
impact on performance through the way it
affects employee attitudes and behaviour.

So if employees like experiencing HRM and
respond positively to it, we may get happy
productive workers
Work-Related Well-Being 1
Grant, Christianson and Price (2007) suggest well-being has
three dimensions in workplace settings:

Health: includes physical well-being, health and safety
Happiness: includes job satisfaction, contentment,
enthusiasm/engagement
Relationships: fairness, trust , openness, friendship, freedom
from bullying and harassment

Most of the research on HRM and well-being focuses on
happiness
Work-Related Well-Being 2
Warr views employee well-being in terms of positive mental health:

Warrs (2007) model has three dimensions

Job satisfaction - Dissatisfaction
(Pleasure) (Displeasure)

Contentment - Anxiety

Enthusiasm - Depression

Satisfaction is a component of well-being
HRM and Well-Being: Evidence from the
Psycones Study
Seven country, three sector European study with 1981
temporary workers and 3307 permanent workers from over
200 organizations

Obtained measures of HRM practices from managers and
employees and standard measures of well-being from
workers.

Key finding: temporary workers report higher well-being than
permanent workers

Also explored factors associated with well-being including
HRM (though both self-report here)





Guest, Isaksson and De Witte (2010) Employment Contracts, Psychological Contracts and Employee Well-Being (OUP)
HRM & Work-Related Well-being

1.7
1.9
2.1
2.3
2.5
2.7
2.9
3.1
Anxiety
Low HRM High HRM
1.7
1.9
2.1
2.3
2.5
2.7
2.9
3.1
Irritation
Low HRM High HRM
1.7
1.9
2.1
2.3
2.5
2.7
2.9
3.1
Depression
Low HRM High HRM
HRM and Work Attitudes
3.3
3.5
3.7
3.9
4.1
4.3
Org' Commitment
Low HRM High HRM
1.3
1.5
1.7
1.9
2.1
2.3
Intention to Quit
Low HRM High HRM
3.3
3.5
3.7
3.9
4.1
4.3
Self-rated Performance
Low HRM High HRM
HRM and Health and Satisfaction
3.3
3.5
3.7
3.9
4.1
4.3
General Health
Low HRM High HRM
3.3
3.5
3.7
3.9
4.1
4.3
Job Satisfaction
Low HRM High HRM
3.3
3.5
3.7
3.9
4.1
4.3
Life Satisfaction
Low HRM High HRM
The Exploitation Issue: Does HRM Lead to
Worker Exploitation or Work Engagement?
The Low Road Critique HRM as exploitation, leading to intensification of
work and increased stress
Focus on performance (high performance work systems) to neglect of
employees concerns
Some evidence of work intensification/stress: the Godard critique too much
HRM is bad for workers


The High Road Argument
HRM offers mutual gains: HR can enhance commitment, satisfaction, and well-
being as well as performance
Jensen et al (2013) highlight key role of job control in limiting negative
employee outcomes
Put simply, workers prefer to be in interesting jobs, to be well managed and
fairly treated and, within an exchange framework, will respond with higher
performance

HRM and Well-Being: The Wider Survey
Evidence
Few studies exploring HRM and both performance and well-being (due to
bias for performance)

Review* exploring the mutual gains hypothesis distinguished happiness
(21 studies) from health (6 studies)
Most happiness studies report an association between HRM,
satisfaction/commitment and performance.
Most studies of health show no clear association with HRM; two are
negative, showing higher performance and higher stress
Reviews fail to distinguish type of HRM

Responses depend on source of information about HRM; workers
accounts show positive happiness and health outcomes

* Peccei, Van De Voorde and van Veldhoven* In Paauwe, Guest & Wright (2013): HRM and Performance:
Achievements and Challenges (Wiley).
Mutual Gains or Exploitation: An Assessment
The rationale for a mutual gains approach is that everyone
wins and it is ethical. Counter is that it is costly
Offers a strong case for a stakeholder perspective
Much research ignores employees except as means to high
performance. Reflects a USA vs. Europe (and Australia?)
perspective
Case against mutual gains may be based on narrow view of
HRM (HPWS)
Autonomy can be associated with stress through high
involvement
Key question of causality remain unaddressed
Summary: The Contemporary Research Agenda
Start by celebrating progress
Avoid complexification as reflected in ever more complex
models, the call for often unrealistic multi-level longitudinal
studies and use of ever more complex statistical analysis
Compare different HRM systems
Study origins of/changes in HRM why they occur, who drives
them and what their impact is
Study contingent factors in implementation and role of actors
Broaden outcomes to incorporate a stakeholder perspective
Adopt an ethical research perspective that focuses on good
HRM and mutual gains

Thank you
For
Listening

david.guest@kcl.ac.uk
Some References
Boxall, P. & Macky, K. (2009). Research and theory on high-performance work
systems: progressing the high involvement stream. Human Resource
Management Journal, 19: 3-23.
Crook, T.R. et al (2011). Does human capital matter? A meta-analysis of the
relationship between human capital and firm performance. Journal of Applied
Psychology, 96: 443-56.
Godard, J. (2004). A critical assessment of the high-performance paradigm.
British Journal of Industrial Relations, 42: 249-78.
Jensen, J. et al (2013). High performance work systems and job control:
Consequences for anxiety, role overload and turnover intentions. Journal of
Management, 39: 1699-1724.
Kaufman, B. (2012). Strategic human resource management research in the
United States: A failing grade after 30 years? Academy of Management
Perspectives, 26: 12-36.
Posthuma, R. et al (2013). A high performance work practices taxonomy
Journal of Management, 39: 1184-1220.
More References
Guest, D. (2011). Human resource management and performance: Still
searching for some answers. Human Resource Management Journal, 21:3-13.
Guest, D. & Bos-Nehles, A. (2013). HRM and performance: The role of
effective implementation. In Paauwe, J., Guest, D. & Wright, P. (eds). HRM
and Performance: Achievements and Challenges. Wiley
Guest, D. & Bryson, A. (2009) From industrial relations to human resource
management: The changing role of the personnel function. In Brown, W et al
(eds). The Evolution of the Modern Workplace. Cambridge: CUP.
Guest, D. & Conway, N. (2011). The impact of HR practices, HR effectiveness
and a strong HR system on organizational outcomes: A stakeholder
perspective. International Journal of Human Resource Management, 22:
1686-1702.
Woodrow, C. & Guest, D. (2013 in press) When good HR gets bad results.
Human Resource Management Journal.