1
“In Rome, do as the Romans do?”
A STUDY ON THE POSSIBLE IMPACT OF INSTITUTIONAL AND INDUSTRY DIFFERENCES ON HUMAN RESOURCE POLICY STATEMENTS IN THE UNITED STATES AND CONTINENTAL EUROPE
Thesis by Jonathan Tamminga Student at the University of Groningen Faculty of Management & Organization
Specialization: International Business & Management First supervisor: Mr. dr. Becker-Ritterspach
Co-supervisor: drs. J.J. Hotho
2
Abstract
The aim of this research is to explore what the impact of institutional- and industrial differences is on the Human Resource policy statements in the United States and Continental Europe. The companies that are used in this research are selected from the manufacturing industry, which contains the pharmaceutical-, automobile-, chemical sector, and the service industry, which contains the banking-, and diversified financial sector. The selected sample is 67, divided from the United States, 31 companies, and from Continental Europe, 36 companies. The impact of institutional- and industrial differences was measured by the HR dimensions of the HR policy statement. The results show that the impact of institutions is not feasible and therefore the first proposition is answered negatively. In both the United States and Continental Europe the same pattern in the HR policy statements can be recognized. The second proposition on industry differences can be answered positively. The manufacturing and the service industry do differ and therefore an industry effect is feasible.
3
List of abbreviations
HRM Human Resource Management
HR Human Resource
US United States
4
Table of contents
1. INTRODUCTION ... 6
2. THEORETICAL BACKGROUND AND PROPOSITIONS ... 9
2.1 The global-local dilemma of HRM policies in MNEs ... 9
2.2 Propositions ... 10 2.2.1 Country ... 10 2.2.2 Industry ... 12 2.3 Conceptual model ... 15 3. METHODOLOGY ... 16 3.1 Selection process ... 16 3.2 Operationalization ... 17 3.2.1 Dependent variable ... 17 3.2.2 Independent variable ... 17 3.3 Type of study ... 18 3.4 Tests ... 18 3.5 Sample size ... 19 3.6 Statistical test ... 19 4. RESULTS ... 20 4.1 Country ... 20 4.1.1 Similarities ... 20 4.1.2 Differences ... 21 4.2 Industry ... 21 4.2.1 Similarities ... 22 4.2.2 Differences ... 22 4.3 Statistical result ... 24 5. DISCUSSION ... 25 5.1 Country ... 25 5.2 Industry ... 26
6. CONCLUSION AND LIMITATIONS ... 28
References ... 30
5
Appendix I List of figures ... 36
Appendix II Country comparison ... 39
Appendix III Industry comparison ... 46
6
1.
INTRODUCTION
“WHEN IN ROME, DO AS THE ROMANS DO?”
7
(2003) try to recognize country as well as industry effects. In their research they come up with several unusual choices, which also are taken in this research, they use bundled practices, several countries and industries. They come to the conclusion that the country effect is larger than the industry effect. However, they do not use contrary industries like they use countries, with contrary institutional backgrounds. Therefore, it is interesting to research the industry effect when contrary industries, for example manufacturing and service industry, are used. A possible industry effect should support the hyperglobalists view of no local institutional influences and a chance for international companies to adopt a global HR policy statement which should give them the advantage above their competitors. This industrial influence on HR policies could be the first step away from the point of view of Hall et al. (1999)where local institutions loose their influence on companies‟ policies.
The focus of this study is on two contrasting countries, Hall et al. (1999)drawing on LME and CME, namely the US and Continental Europe (CE). Additionally, for the cross-industry comparison two global industries can be distinguished, namely manufacturing and service. The reason for these choices will be explained later. The main research question is as follows:
“Do institutional and industrial differences impact HR policy statement? The case of the United States and Continental Europe.”
In order to answer this research question in the next chapter a theoretical background is given followed. Since this research concentrate on institutional- and industrial level the next chapter of theoretical background is supplemented with two propositions which focus on these two levels.
Importance of the study
8
between countries or industries. This comparison has as advantage that more insight will be acquired about HR policies in a certain country or industry. These insights will tell us more about the possible influence of countries‟ institutions and industrial influence and if globalization in HR policy statements is feasible. After the comparisons are done, the results will not only tells us if the countries‟ institutions and industry influencing these policies but also about the influence of globalization. The advantages of taking the HR policy statements instead of a practice are therefore a twofold.
Research outline
9
2.
THEORETICAL BACKGROUND AND PROPOSITIONS
2.1 The global-local dilemma of HRM policies in MNEs
10
to country and also can vary according to the international strategy chosen by the business. The latter does imply that a companies‟ strategy can cause differences in HR policy.
2.2 Propositions
In here, two levels of analysis, this thesis is based on, are explained by the use of recent literature. Additionally, the literature review forms the basis to formulate the propositions for each level of analysis, namely institutional and industry. These propositions will be answered later on and the results will be given in the result part.
2.2.1 Country
11
approaches can be found in different regions. Both approaches of Hall & Soskice and Whitley are interesting and could be used for this thesis, however, the approach of Hall & Soskice will be used for its simplicity in the research and the contrast of both areas. Therefore, for both branches the characteristics will be stated and explained. Following Soskice (1999), institutional frameworks for CMEs share the below mentioned characteristics:
- long-term financing possibilities for firms
- strong unions (see figure 2.2), cooperative industrial relations within the company, coordinated wage bargaining across companies
- involvement of companies into serious initial vocational training - intercompany systems that enable technology and standard setting
As the name already says, CMEs are more coordinated in a way of exchange of private information inside networks, and collaboration compared to competition (Hall et al., 2001). Because of the long-term aspect of this institutional form, and the strong linkages between institutions, firms and employees, will take more a kind of continuous form, for example the development and further specification of (for instance in Germany) consumer durables or factory tools, i.e. machinery.
The other branch of the VOC theory deals with LMEs. The framework for those, following again Soskice (1999), is described as incorporating:
- more short-term financing provided, still high risk-taking allowed - deregulated labour markets, weak unions
- emphasis on general education, bit-by-bit skill acquisition
- intercompany systems that encourage strong competition, limited coordination between companies
12
Because the country culture has its influence on institutions and the other way around the institutions are a reflection of the country culture, Hofstede (2001). Due to the higher degree of intervention by the government pointed out by Soskice (1999) and Hall et al. (2001) the proposition is as follow:
Proposition I: There is a large difference between USA and European companies in terms of HRM policy statements.
2.2.2 Industry
13
software company survived in this industry considering the institutional context, this can be called striking. In contrast, the US based company has in fact all the condition, on institutional level, to be and stay innovative without worrying about investments and flexible labour markets. But how the French companies survive in this industry is because of the government investment and the most important one, the internal labour market that is created in this industry over time. Without this internal labour market it was impossible for the French to survive. The internal labour market, that is created, causes that industry has the upper hand instead of the institutional factors, Cadin, Guérin and Defillippi (2006). Jolly (2005) confirms this in his article with a general look on companies in the high-tech industry where innovation is crucial. He found his conclusion on the fact that it is crucial to offer these highly skilled employees a good and competitive contract however it is not focussed on project based, like the video game industry. Jolly‟s argument is; when the HR policy is developed well, talented and highly skilled labour will come and bring the company to a higher and more competitive level. Firstly, in France the institutional factor of job security do not hold for the innovative industry and secondly, in the US in the high tech industry where job security is offered does not confirm the institutional starting point of LME countries, like the US. Next to these facts about the high tech and video companies also the pharmaceutical companies have to do with the institutional factors. Nevertheless, industry specific elements can have their effect on the HR policies of those companies in the industry. A prior research, bachelor thesis, showed that companies in the pharmaceutical industry focus on „development & training‟ and „external opportunities‟ also flexibility within these companies is very important. Because these practice do not have the upper hand no significant industrial effect was feasible, however the mentioned differences can be expected again in the specific practices. Lange (2006) underlines the importance of innovation and development of new products and research in both the pharmaceutical and bio-tech companies. The different aspect and especially research and development where highly skilled people are needed to develop new products. As can be derived from above people are important in innovative companies and therefore the emphasize in the HR policies can be expected on people aspect, like development and training, rewarding and so on, Lange (2006). This industry influence can be expected in the HR policies in this industry.
14
companies are active and have a history with a meaning for their country. In the US automobile industry the term high performance work systems is used and describes an approach to managing human resources wherein a fundamental principle is the belief that employees are an organizational asset rather than simply an expense to be incurred, Wood & Wall (2002). This approach assumes that when treated with fairness and respect, individuals are both capable and willing to work intelligently and to perform at higher levels. Therefore, automobile companies providing their employees with job security, and opportunities to upgrade their skills, Walton, 1985; Wood & Wall, 2002. This is in contrast with the institutional perspective of Hall et al. (2001) where job security is not the way to be and to stay competitive, especially not in the US. The opposite is true for CE where job security is one of basic dimension in the automobile companies, because on the other side vocational training is guaranteed by the government. Although, for the US this is the contrary with their institutional perspective it is only one part of the HR policy statement and therefore it will not cause a significant difference. Therefore, no significant influence of the automobile industry on the HR policies will be expected. However, it can be expected that a certain industry characteristic will arise, like job security in the US and vocational training in CE.
15
and mission of the service company. A typical industrial influence on HR policies is therefore not expected to appear. However, Ahmad & Schroeder (2002) have found in their research that HR practices vary widely by country and by industry. Therefore and according to the discussed literature on industry the proposition is as follow:
Proposition II: There is a large difference between the manufacturing and service industry in terms of HR policy statements.
2.3 Conceptual model
Considering chapter 2, it is now possible to construct a conceptual model represented in figure 2.3
Figure 2.3 Conceptual model
16
3.
METHODOLOGY
Most research is determined by the data availability. This choice is made with regard to limited time frame what makes it unrealistic to obtain primary data which is most common in studies on HR policies. However, in this research it is a combination of both primary and secondary data because some data is from prior research and additional data is obtained of the particular companies their website or is obtained by contacting the selected companies by e-mail and phone. The information gathered by contacting the companies by phone is the most valuable and reliable information. However, companies are only contacted by phone if the information on the website was not reliable or not sufficient enough. The level of sufficiently is set by using experience from prior research. Since the research is conclusive and the data is being graphed this research can be qualified as a quantitative study, Cooper and Schindler (2003). In the next paragraphs the selection process, operationalization, type of study and sample size will be discussed.
3.1 Selection process
The first step was to select two different countries. Here the institutional aspect is very important because two countries are chosen on the basis of the article of Hall et al. (2001) who distinguish two different systems, as mentioned earlier, namely the LME and CME also referred to as the Anglo-Saxon model and the Rhine-model. The two countries who meet these requirements are the US, LME, and CE, CME, which is not one country but a group of countries, see for example figure 2.2. As mentioned before, my bachelor thesis is the basis and this research is a sequel to the bachelor thesis, therefore choices are also made based of this prior research. Next to the country choice also two different industries are chosen in order to research if industry has influence on HR policy statements. The industries that are chosen in this research are the manufacturing industry, which contains the automobile, the pharmaceutical, and chemical sector, and the other service industry, which contains the banking and diversified financial sector. Two different industries are chosen in order to determine if industry has influence on the HR policy statements of companies.
17
3.2 Operationalization
The operationalization explains how the institutional characteristics and industry characteristics will be derived from the results of this study.
3.2.1 Dependent variable
The dependent variable in the propositions is HR policy statement. HR policy statement will be measured by the content of the policy. The content of the HR policy statement consist out of thirteen dimensions, namely „remuneration and benefits‟, „development and training‟, „recruitment and selection‟, „performance evaluation‟, „labour relations‟, „health care‟, „diversity employees‟, „working conditions/environment‟, „equal opportunities‟, „external opportunities‟, „internal opportunities‟, „job security‟ and „flexibility‟. The complete overview can be found in the appendix II. The dimensions are derived from the article of Treven (2001) and from prior research, bachelor thesis (2006). All dimensions of the HR policy statement should give a nice and clear overview of the possible emphasize of companies within an industry or within a country. The data of the content of the HR policy statements, HR dimension, will be retrieved from companies‟ websites, annual reports, and by contacting the particular companies by phone. The comparison, between the countries and the industries, will be made by the use of the graphs. These graphs show how many companies of a country or industry have the particular HR dimension in their HR policy statement or not. Does a company has a HR dimension in their HR policy then there are two degrees, namely one and two. One means that the HR dimension is present and also detailed described, on the other hand two means that the HR dimension is present but is less detailed described.
3.2.2 Independent variable
18
3.3 Type of study
This study can be characterized as a comparative type of study, since countries and industries will be compared. According to the theory of Thomas (2002) this is a study conducted in two countries, US and CE and in two industries, and used to point out similarities and differences. Furthermore, this study is not longitudinal, since it involves the observations of the companies‟ HR policies‟ in 2007 and the particular companies are able to change their HR policy over time so changes in this policy can cause different results. The data used in this research is quantitative, since the presence of the HR dimensions are given in the numbers one or two, depending how detailed they are described or by three if the HR dimension is not in the HR policy statement.
3.4 Tests
19
3.5 Sample size
After the selection process described in chapter 3.2, table 3.5 shows the number of firms that determinate the size of the population.
Table 3.5 Total sample size by country and industry
The companies who are selected from, for example, the USA have also their roots in the USA. However, their operational field can be the entire world. The same counts for companies from CE, they are established in CE.
3.6 Statistical test
Next to the descriptive analysis also a statistical test will be performed. The statistical test that will be used in this research is the Chi-square test. The reason why the Chi-square test will be used is because the variable has only two scores. Therefore this data can be considered as nominal data when the two scores represent two categories. However, this test has several requirements, namely the total number of frequencies have to be at least 50 and the expected frequency of the test cell has to meet five or higher. The requirement of at least N = 50 is no problem since the number of companies is 67. For the second requirement cannot said anything until the test has be done. When the expected frequency is less than 5 SPSS will give a notice below the pivot table. This notice mean that the outcome of the Chi-square test is not accurate.
Country Industry
Manufacturing Service Total
20
4. RESULTS
In this section, the results of the analysis of the data will be shown and the propositions will be answered. The results will show also the differences and similarities that exist between CE and the USA as well as between the manufacturing and the service industries. Since the data was gathered per HR dimension the results will be stated also per HR dimension of the HR policy. These overall results can be found in appendixes II and III. In here, the similarities and differences will be stated and the two propositions will be answered.
On the level of country, also called institutional level, it is important to recognize country specifics. This can be done best by the use of HR dimension because these give the best detailed overview. The results of each HR dimension will be brief and the figures of each HR dimension can be found in appendixes II. On industry level, the same attitude is used in order to state the results, here the two industries are also put together in one figure per HR dimensions. This gives a clearer overview how the two industries differ or correspond. These figures can be found in appendix III.
4.1 Country
On country level, the results of the analysis of the HR dimensions of the HR policy statements of the USA and CE are stated as similar or different. Hereby country effects, differences, can be distinguished and also globalization effect, similarities, can be recognized. After these results the following proposition will be answered:
“There is a large difference between USA and European companies in terms of HRM policy statements.”
4.1.1 Similarities
21
„labour relations‟, this dimension is in a large number of companies not described in their HR policy statement. The sixth similarity is „working conditions/environment‟, in both countries this described in their HR policy statement. The seventh similarity is „equal opportunities‟, although the level of presence in detailed way is higher in the USA. The next two similarities, „external opportunities‟ and „internal opportunities‟ show both equal patterns in both countries where half of each countries‟ companies do describe this dimension detailed in their HR policy statement. The tenth similarity is „job security‟, most companies in both countries do not give their employee security that they will keep their jobs therefore it is also not mentioned in their HR policies. The last similarity is „flexibility‟, in both countries this HR dimension is present in their HR policy however in the USA the description is far more detailed then in CE.
4.1.2 Differences
The first difference on the HR dimensions of the HR policy statements is „health care‟. The pattern in both countries is almost the same however it is surprising to notice that the USA has a higher number of companies that have not taken „health care‟ into their HR policy. The second and at the same time the last difference in HR dimensions is „diversity employees‟. In here, the same pattern as the previous HR dimension can be noticed.
The similarities and differences of each HR dimension of the HR policy statement of the country comparison are stated and therefore the first proposition can be answered now. There is no clear country effect on the HR policy statement neither in the US nor in CE. The institutional differences do not have a large impact as expected on the HR policy statement of companies.
4.2 Industry
The second level of analysis is industry. Here, two industries are compared and the results will be stated like the results on country level. The proposition on the industry will be answered at the end of this paragraph. The proposition is as follows:
22
4.2.1 Similarities
The first similarity in the industry comparison is „performance evaluation‟. In both industries this HR dimension is very important and therefore present in the HR policy of every company. However, not every company does describe this HR dimension very detailed. The second similarity is „health care‟. This HR dimension is in both industries in most companies present but still a small number of companies do not state it. The HR dimension, „diversity employees‟, is in both industries quite similar, although in the manufacturing industry there are some companies that do not subscribe to diversity of their employees. The pattern of the fourth HR dimension, „working conditions/environment‟, is in both industries similar, however not every company describes this HR dimension very detailed. The fifth similarity is „equal opportunities‟ in both industries equal opportunities are important and therefore detailed described in the HR policies. The next similarity is „external opportunities‟. In here, most companies do offer their employees external opportunities however some companies do not offer these opportunities. The seventh and at the same time the last similarity is „internal opportunities‟, where in both industries the same pattern can be recognized.
4.2.2 Differences
23
The similarities and differences of each HR dimension of the HR policy statement of the industry comparison are stated and therefore the second proposition can be answered now. There is a difference between the manufacturing and the service industry, however this difference is not very large. Both industries show many similarities, like the country comparison showed. In all HR dimensions similar patterns can be recognized but the stage of development differs per industry. The propositions on both country and industry level are answered now in order to make the result more feasible, the results of the analysis is set in the table below. The first proposition was not answered positively which results in similar HR policy statements in both countries. The second proposition was answered positively which result in an industry effect. The overall result, as in the table below can be seen, is a 'global industry effect'.
Different Similar
Different Country and industry
effect
Global industry effect
Similar Weak industry and
strong country effect
No industry and country effect
Countries
24
4.3 Statistical result
In the above result section, it is clear that several HR dimension differ with respect to presence in the HR policy statement. Especially, in the industry this is the case. These differences from the industry part are picked out and undergo also the statistical, Chi-square, test. The following HR dimensions are tested on their significant level: Flexibility, Job security, Labour relations, Recruitment and selection, Development and training, and Remuneration and benefits. All these HR dimensions are tested independently. Almost all the HR dimension shows significance, except one.
25
5.
DISCUSSION
In the field of cross country and cross industry comparison, most often HR practices are compared in order to research if some HR practices are country or industry specific. The objective of this thesis is to examine country and/or industry effects on HR policy statement of companies established in the USA or CE or active in the manufacturing or service industry. Additionally, this research is not on HR practice level but on HR policy statements as mentioned above. The results were analysed per dimension of the HR policy statement. The results of this research were not expected which will be discussed in this chapter. An attempt is made to provide an explanation for the similarities and differences on country and industries level.
5.1 Country
26
of Maine (2001). Therefore, many companies do offer their employees special health care arrangement or even health care insurance. This was also confirmed by the results of prior research. Nevertheless, the results show that more than 20 percent of the companies of the used sample do not offer this special arrangement. The same counts for „diversity of employees‟ where in the US in 1964 a Civil Rights Act was set up which made it illegal for organizations to engage employment practices that discriminated against employees on the basis of race, colour, religion, sex and national origin. In addition, Executive Order required government contractors to take affirmative actions to overcome past patterns of exclusion or discrimination. Following on this during the 1990s, diversity rhetoric shifted to emphasize the business case for supporting workforce diversity, Kochan, Bezrukova, Ely, Jackson, Joshi, Jehn, Leonard Levine and Thomas (2003). Therefore, one should expect diversity of employees is a number one priority for US based companies nevertheless still more than 20 percent of the companies used in this research do not explicitly state this in their policy which is remarkable.
Overall, it is surprising that the institutional proposition is not confirmed by the data however the result is interesting, because it could mean that there is a change going on.
5.2 Industry
The results on the industry level are as expected. Again some HR dimensions are picked out and discussed more detailed because of differences within the industries. It concerns the following HR dimensions; „remuneration and benefits‟, „labour relations‟, „recruitment and selection‟, „development and training‟, „diversity of employees‟, „job security‟, and „flexibility‟.
27
and labour relations are important in manufacturing oriented industries. Walton (1985) and Wood & Wall (2002) confirm the manufacturing part, in which job security and labour relations are important for the employees to have stable working conditions.
28
6.
CONCLUSION AND LIMITATIONS
This research has contributed to the expansion of the existing literature on the cross national and cross industry comparison with regard to the HR policy statements. The results of the data analysis show that there is no impact feasible of country on the HR policy statements of companies. But there is a certain „global‟ industry effect feasible. The results concerning the country level analysis do not confirm the literature of Hall et al. (2001), because they have concluded in their study that the USA and CE do differ with respect to the countries‟ institutions. These differences in institutions should have impact on HRM policy statements of companies operating in this country because companies have to make policy according the local law. Therefore, the influence should be feasible in the companies‟ HR policy statement, but this is not the case according to the results. From the results can be concluded that institutional differences do not have impact on HR policy statements. This could mean that HR policy statements more and more converge, which could be the effect of the ongoing process of globalization, Societe Generale annual report (2007). According to the hyperglobalists, the institutions across the globe indeed converge and through this convergence HR policy statements, since many policies do not have to be adjusted anymore to cultural and institutional differences, can easily being transferred, Rowley (2001); Bloemert (2005). The result on the industry level is positive and therefore HR policy statements between industries do differ. This is in contrast with the existing literature where is said that HR policy statement vary more on country level than on industry level, Ahmad et al. (2003). The implication of these results are that other researcher can use these results as starting point for their investigation and research if these results also hold by a larger sample of countries and industries. When that is the case, the results could be generalized.
It is interesting to extend these results to the HR manager nowadays, which have to cope with the consequences of these results. The results say that the HR policy statements in the USA and CE do not differ a lot, therefore, the HR manager can act in both countries the same with respect to the HR policy statement and also employees can be transferred easily without difficulties during the transfer.
Further research
29
here was chosen for international companies, different type of organization could have its impact on the results of the research. Next to this, companies‟ strategy can also be an influencing factor and therefore could have impact on the results.
Limitations
30
References
Ahmad, S. and Schroeder, R.G. (2003) “The impact of HR practices on operational performance: recognizing country and industry differences”, Journal of Operations
Management, vol. 21, pp. 19-43, January
Appelbaum, E., Bailey, T., Berg, P. and Kalleberg, A. (2000) “Manufacturing Advantage: Why high-performance work systems pay off”, Cornell University Press, Ithaca, NY.
Boxall, P. and Purcell, J. (2003) “Strategy and Human Resource Management”, Palgrave Macmillan, New York, NY.
Bloemert, M.L. (2005) “The myth of a global world? A study on the process of globalization: the transferability of HRM practices and policies of Dutch firms to South African
subsidiaries.”
Brewster, C. and Larsen, H.H. (1992) “Human Resource Management in Europe: Evidence from Ten Countries.” , The International Journal of Human Resource Management , 3: 409– 33.
Budhwar, P. (1997) “A Framework for Cross National Comparisons of Human Resource Management Practices.” In Hamel, W.A. (ed.) Proceedings of 15th Annual Conference of
International Association of Management, 15(1): 68–73.
Budhwar, P.S. and Debrah, Y. (2001) “Rethinking comparative and cross-national human resource management research.” International Journal of Human Resource Management, Vol. 12, No. 3, May.
31
Clark, T. and Pugh, D. (2000) “Similarities and differences in European conceptions of human resource management.” International Studies of Management & Organizations, 29(4), 84-100.
Darmon, R.Y. (1993) “Management des ressources humaines des forces de vent.” Paris: Economica.
Delery, J.E., Doty, D.H., 1996. Modes of theorizing in strategic human resource management: tests of universalistic, contingency, and configurational performance predictions. Academy of
Management Journal 39 (4), 802–835.
Edwards, T. and Kuruvilla, S. (2005) “International HRM: national business systems, organizational politics and the international division of labour in MNCs.” International
Journal of Human Resource Management, vol. 16, Iss. 1, 1-21
Gooderham, P., Nordhaug, O., and Ringdal, K. (1999) “Institutional and rational determinants of organizational practices: Human Resource Management in European firms.”
Administrative Science Quarterly, vol. 44, 507-531
Hall, P. and D. Soskice (2001) “An Introduction to Varieties of Capitalism“ in Varieties of
Capitalism: The Institutional Foundations of Comparative Advantage, P. Hall and D. Soskice
(eds.), Oxford: Oxford. Univ. Press.
Held, D. and McGrew, A. (1999) “Globalization.” Oxford: Entry for Oxford Companion to
Politics http://www.polity.co.uk/global/globocp.htm
Legare, T.L., 1998. The human side of mergers and acquisitions. Human Resource Planning 21 (1), 32–41.
Legge, K. (1995) “Human Resource Management: Rhetorics and realities.” London; Macmillan.
32
McLean, J. (2006) “Globalisation is here to stay.” Management matters, June/July
Morgan, G. (2001) “Transnational communities and business systems.” Global Networks, Vol. 1, No. 2.
Morley, M. and Collings, D. (2004) “Contemporary debates and new directions in HRM in MNCs.” International Journal of Manpower, Vol. 25, No. 6.
Peterson, R.B., Napier, N.K. and Shul-Shim, W. (2000) “Expatriate management: Comparison of MNCs across four parent countries.” Thunderbird International Business
Review, 42(2), 145-166
Prescott, R. K., Rothwell, W. J., and Taylor, M. (1999) “Global HR: Transforming HR into a global powerhouse.” HR focus. 76(3): 7-8.
Radice, H. (2000) “Responses to Globalization: a Critique of progressive nationalism.” New Political Economy, vol. 5, no. 1.
Rive, J. (1998) “Sociologie des vendeurs et implications pour la gestion des ressources humaines commercials.” , 9^'"^ Congres de VAGRH, St Quentin en Yvelines. Nov., pp.195-214.
Schneider, B. and Bowen, D.E. (1993) “The service organization: Human Resources Management is crucial.”, Organizational dynamics, vol. 21 Issue 4, p 39-52, Spring
Soskice, D. (1999) “Divergent Production Regimes: Coordinated and Uncoordinated Market Economies in the 1980s and 1990s.”
Sparrow, P., Schuler, R. S. and Jackson, S. E. (1994) “HR practices and policies for competitive advantage worldwide.” International Journal of Human Resource Management, vol. 6, issue 2, May
33
Tayeb, M. (1998) “Transfer of HRM practices across culture‟s: An American company in Scotland.” The International Journal of Human Resource Management, vol. 9, no. 2, April.
Von Glinow, M.A., Drost, E.A. and Teagarden, M.B. (2002) “Converging on IHRM best practices: Lessons learned from a globally distributed consortium on theory and practice.”
Human Resource Management, 41(1), 123-140.
Walton, R.E. (1985) “From control to commitment in the work place”, Harvard Business
Review, March-April, pp. 77-84.
Whitley, R. (1998) "Internationalization and varieties of capitalism: the limited effects of cross-national coordination of economic activities on the nature of business systems", Review
of International Political Economy, 5(3):445-481
Whitley, R. (1999) “The Nature of Business Systems and their Institutional Structuring”
Books
Briscoe, D.R. and Schuler, R.S. (2004). International Human Resource Management. (2nd ed.) Prentice Hall
Cooper, D.R. and Schindler, P.S. (2003). Business Research Methods.(8th ed.) International edition, McGraw-Hill
Djelic, M.-L. and S. Quack (2003) “Conclusion: Globalization as a double process of institutional change and institution building”, in Globalization and Institutions, M.-L. Djelic and S. Quack (eds.), pp. 302-333. Cheltenham, Edward Elgar.
Evans, P., Pucik, V., and Barsoux, J-L. (2002). The Global Challenge; frameworks for International HRM. International edition, McGraw-Hill Irwin.
Hofstede, G. (2001). “Culture’s Consequences: Comparing values, behaviors, institutions and organizations across nations” (2nd
34
Noe, Hollenbeck, Gerhart, and Wright (2003). Human Resource Management Gaining competitive advantage.(4th ed.)
Price, A. (200?). HRM in a business context.(2nd ed.), Thomson Learning
Sparrow, P., Brewster, C. and Harris, H. (2004). Globalizing human resource management. Routledge London
Wood, S. and Wall, T. (2002) “HRM and business performance”, in Warr, P. (ed.), Psychology at work, Penguin, London, pp. 351-374.
Internet
http://en.wikipedia.org/wiki/Anglo-Saxon_economy
http://en.wikipedia.org/wiki/Top_50_pharmaceutical_companies http://www.twanetwerk.nl/default.ashx?DocumentId=1517
www.reformmonitor.org: website of the International Reform Monitor with information on social policy, labor market policy and industrial relations in 15 OECD-countries.
www.thetimes100.co.uk: online dictionary with theories.
http://www.euronet.nl/users/warnar/demostatistiek/stat/chisquare.htm http://en.wikipedia.org/wiki/Chi-square_distribution
http://www.hrmguide.co.uk/conclusion/hrm-globalization.htm
Reports
Randstad. (2005). Annual report Randstad. (2006). Annual report
Others
Mr. J. Andringa, Member of the Management Team of Randstad United States, responsible for department Operations.
36
Appendix I List of figures
37
38
39
Appendix II Country comparison
0 5 10 15 20 25 1 2 3 1 2 3
Europe united states
Remuneration and Benefits
Totaal 0 5 10 15 20 25 1 2 3 1 2 3
Europe united states
Development and Training
40 0 5 10 15 20 25 1 2 3 1 2 3
Europe united states
Recruitment and Selection
Totaal 0 5 10 15 20 25 1 2 1 2
Europe united states
Performance evaluation
41 0 5 10 15 20 25 1 2 3 1 2 3
Europe united states
Labor relations Totaal 0 5 10 15 20 25 30 1 2 3 1 2 3
Europe united states
Health care
42 0 5 10 15 20 25 30 1 2 3 1 2 3
Europe united states
Diversity of employees Totaal 0 5 10 15 20 25 1 2 1 2 3
Europe united states
Working conditions / environment
43 0 5 10 15 20 25 1 2 3 1 2 3
Europe united states
Equal opportunities Totaal 0 2 4 6 8 10 12 14 16 18 1 2 3 1 2 3
Europe united states
External opportunities
44 0 2 4 6 8 10 12 14 16 18 1 2 1 2 3
Europe united states
Internal opportunities Totaal 0 5 10 15 20 25 1 2 3 1 2 3
Europe united states
Job security
45 0 5 10 15 20 25 1 2 3 1 2 3
Europe united states
Flexibility
46
Appendix III Industry comparison
0 5 10 15 20 25 1 2 3 1 2 Manufacturing Service
Remuneration and Benefits
Totaal 0 5 10 15 20 25 30 1 2 3 1 2 Manufacturing Service
Development and Training
47 0 5 10 15 20 25 30 1 2 3 1 2 Manufacturing Service
Recruitment and Selection
49 0 5 10 15 20 25 30 1 2 3 1 2 3 Manufacturing Service Diversity of employees Totaal 0 5 10 15 20 25 1 2 3 1 2 Manufacturing Service
Working conditions/ environment
53
Appendix IV Results statistical testing
STATISTICAL TESTING HR DIMENSIONS
Flexibility
This HR dimension is not significant
Name industry * RESULT RESEARCH Crosstabulation
RESULT RESEARCH Total PRESENT
NOT
PRESENT PRESENT
Name industry Manufacturing Count 24 7 31
% within Name industry 77,4% 22,6% 100,0%
Service Count 29 2 31
% within Name industry 93,5% 6,5% 100,0%
Total Count 53 9 62
% within Name industry 85,5% 14,5% 100,0% Chi-Square Tests Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 3,249(b) 1 ,071 Continuity Correction(a) 2,080 1 ,149 Likelihood Ratio 3,414 1 ,065
Fisher's Exact Test ,147 ,073
Linear-by-Linear
Association 3,197 1 ,074
54
Job security
This HR dimension is tested significant.
Name industry * RESULT RESEARCH Crosstabulation
RESULT RESEARCH Total PRESENT
NOT
PRESENT PRESENT
Name industry Manufacturing Count 17 14 31
% within Name industry 54,8% 45,2% 100,0%
Service Count 3 28 31
% within Name industry 9,7% 90,3% 100,0%
Total Count 20 42 62
% within Name industry 32,3% 67,7% 100,0% Chi-Square Tests Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 12,130(b) 1 ,000 Continuity Correction(a) 10,193 1 ,001 Likelihood Ratio 13,291 1 ,000
Fisher's Exact Test ,001 ,000
55
Labour relations
This HR dimension is tested significant.
Name industry * RESULT RESEARCH Crosstabulation
RESULT RESEARCH Total PRESENT
NOT
PRESENT PRESENT
Name industry Manufacturing Count 17 14 31
% within Name industry 54,8% 45,2% 100,0%
Service Count 2 29 31
% within Name industry 6,5% 93,5% 100,0%
Total Count 19 43 62
% within Name industry 30,6% 69,4% 100,0%
Chi-Square Tests Value Df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 17,075(b) 1 ,000 Continuity Correction(a) 14,874 1 ,000 Likelihood Ratio 18,897 1 ,000
Fisher's Exact Test ,000 ,000
56
Recruitment and Selection
This HR dimension is tested significant.
Name industry * RESULT RESEARCH Crosstabulation
RESULT RESEARCH Total PRESENT
NOT
PRESENT PRESENT
Name industry Manufacturing Count 19 12 31
% within Name industry 61,3% 38,7% 100,0%
Service Count 31 0 31
% within Name industry 100,0% ,0% 100,0%
Total Count 50 12 62
% within Name industry 80,6% 19,4% 100,0% Chi-Square Tests Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 14,880(b) 1 ,000 Continuity Correction(a) 12,503 1 ,000 Likelihood Ratio 19,544 1 ,000
Fisher's Exact Test ,000 ,000
57
Development and training
This HR dimension is significant.
Name industry * RESULT RESEARCH Crosstabulation
RESULT RESEARCH Total PRESENT
NOT
PRESENT PRESENT
Name industry Manufacturing Count 23 8 31
% within Name industry 74,2% 25,8% 100,0%
Service Count 31 0 31
% within Name industry 100,0% ,0% 100,0%
Total Count 54 8 62
% within Name industry 87,1% 12,9% 100,0% Chi-Square Tests Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 9,185(b) 1 ,002 Continuity Correction(a) 7,032 1 ,008 Likelihood Ratio 12,280 1 ,000
Fisher's Exact Test ,005 ,002
58
Remuneration and benefits
This HR dimension is tested significant.
Name industry * RESULT RESEARCH Crosstabulation
RESULT RESEARCH Total PRESENT
NOT
PRESENT PRESENT
Name industry Manufacturing Count 25 6 31
% within Name industry 80,6% 19,4% 100,0%
Service Count 31 0 31
% within Name industry 100,0% ,0% 100,0%
Total Count 56 6 62
% within Name industry 90,3% 9,7% 100,0%
Chi-Square Tests Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 6,643(b) 1 ,010 Continuity Correction(a) 4,613 1 ,032 Likelihood Ratio 8,962 1 ,003
Fisher's Exact Test ,024 ,012
