Erik Poutsma

Coordinated vs. liberal market HRM: the impact of institutionalization on multinational firms

The impact of institutionalized contexts on the HRM activities of multinational firms has become a focus of increasing attention in recent literature. However, theories of how different types of business systems or market economies may influence HRM, and the impact of context on multinational corporations (MNCs) operating under these different conditions are still not fully tested. In this paper the influence of the extent of institutional embeddedness of different national contexts (based on varieties of capitalism theory) on the HRM activities of MNCs is explored through the use of extensive survey data from four countries: the UK, Germany, the Netherlands and Sweden. Evidence is found of differences in HRM practices between foreign- and domestic-owned MNCs, as well as between MNCs and domestic organizations. Although less than expected, the restricted amount of leeway within a coordinated economy also appears to have differential effects on the various HRM practices explored in these foreign and domestic organizations.

The Diffusion of Calculative and Collaborative HRM Practices in European Firms

The aim of this paper is to trace and explain variations in calculative and collaborative human resource management (HRM) practices between companies and across national borders. Variations and similarities are explained in terms of the convergence and divergence of HRM practices determined by national institutions, and the increasing influence of multinational companies (MNCs). We explore the diffusion of HRM practices in Europe over time, using data sets from two surveys conducted in several European countries in 1995 and 2000. We use institutional explanations for the development of three selected bundles of HRM practices: individual, calculative performance-oriented practices; collective incentive schemes for the alignment of interests; and collaborative practices that seek to enhance the commitment of employees. We found substantial effects of country-specific institutions and of the country of origin of MNCs, which clearly support the institutional duality thesis. Foreign-owned MNCs, especially those that are US-based, appear to moderate country-specific institutional effects on the diffusion of the three HRM bundles.

Employee Participation in Europe: In Search of the Participative Workplace

This article presents an overview of participation schemes in European companies. It is based on a secondary analysis of data from the 1996 EPOC mail survey among managers of profit sector establishments in 10 EU countries. The article describes the diverse extent and nature of participative workplaces in European countries. It analyses the inter relationships between several forms of participation schemes and indicators for the participative nature of the workplace: schemes for direct participation (DP) of employees, i.e. group consultation and individual and group delegation; schemes for financial participation (FP), i.e. employee ownership and profit sharing; and the arrangements for indirect, employee representative participation (ER). Based on a multivariate analysis of the intensity of the participation schemes, a profile of participative workplaces is presented. To categorize these workplaces, we focused on country factors, management practices and workplace characteristics.

The Fit of Employee Ownership with Other Human Resource Management Practices: Theoretical and Empirical Suggestions Regarding the Existence of an Ownership High-Performance Work System

This article embeds employee ownership within a strategic human resource management (SHRM) framework, and in so doing, aims to redress in part a lack of attention in previous employee ownership and SHRM literatures. The study extends the configurational approach to SHRM to include the construct of the workforce philosophy as the factor that determines the coherence of HRM systems. Companies that have employee ownership as a central element and core HRM practice should do two things in order to ensure that their HRM system is coherent and potentially a high-performance work system (HPWS). First, these firms should propagate the idea that employees deserve to be co-owners and take employees seriously as such. Second, the HRM system should reflect this workforce philosophy: the HRM system should contain HRM practices that mirror the rights that make up the very construct of ‘ownership’. The core HRM practices of the ‘ownership-HPWS’, in addition to employee ownership, are: participation in decision-making, profit sharing, information sharing, training for business literacy and mediation.

Broad-based employee financial participation in the European Union

This paper describes developments in broad-based financial participation of employees in their enterprises within the European Union (EU). Broad-based means that all or most employees are eligible for participation in the scheme, in contrast to selective schemes where only certain categories of personnel (in most cases higher staff and management) are eligible. The main objective of this paper is to provide a comparative overview on the nature and extent of financial participation in the EU in the 1990s. It is based on a review of available international research and publications, together with interviews with and reports from national experts. Special attention is given to types of employee share ownership and the relationship with the three other pillars of employee participation: direct participation, representative participation and collective bargaining. For this purpose, the report includes an analysis of the situation in ten countries, based on the findings of the 1996 EPOC (Employee Direct Participation in Organizational Change) survey.

The Relationship between Financial Participation and Other Forms of Employee Participation: New Survey Evidence from Europe

This article explores the relationships between financial participation and other forms of participation drawing on data collected from listed companies in Finland, Germany, the Netherlands and the UK. The authors provide evidence on two questions. First, does the presence of either direct or indirect participation predict the use of profit sharing and employee equity plans? Second, to what extent is employee participation in profit sharing and equity plans influenced by the presence of other forms of participation? Overall, the results provide little evidence of complementarity between financial participation and other forms of participation. There are also clear differences between types of financial participation. It is found that indirect participation has a weak relationship with use of profit sharing and participation in profit sharing plans. Direct participation is not associated with the use of equity plans or profit sharing but with participation in stock acquisition plans. Employee participation in plan design is strongly associated with participation in profit sharing and stock acquisition plans but not stock options.

European Diversity in the Use of Participation Schemes

This article presents an overview of participation schemes in companies in different European countries. It analyses the interrelationships between two forms of participation schemes: first, schemes for direct participation of employees, namely consultation and delegation both on individual and group level; and second, schemes for financial participation, namely employee ownership and profit sharing. We discuss the background to the diversity in practices by analysing survey data of establishments in ten European countries.

Promotion of Employee Ownership and Profit Sharing in Europe

This article presents the major findings of a research project for the European Union on the development of promotion of employee ownership and profit sharing, known as PEPPER schemes, and the diffusion of these schemes throughout Europe. Since the first PEPPER report in 1991, the general situation of government policy on financial participation schemes in EU countries has improved slightly. Official government positions in individual EU countries still range from strongly in favour to undefined. The different government positions relate to distinct industrial relations systems in individual EU countries. This is demonstrated by the very particular developments with respect to the issue of financial participation in France, Germany and the UK.

The Use of Performance Appraisal Systems: Evidence from Dutch Establishment Data

Using Dutch data, we examine the characteristics of establishments that operate performance appraisal systems. Our estimates provide a couple of interesting results: (1) Multitasking and teamwork play a role in the use of performance appraisal systems. (2) While a shared corporate culture, the sharing of information, and a professional personnel management emerge as positive determinants, unions appear to play a negative role. (3) Employers fostering career development and promotion opportunities make greater use of performance appraisal. (4) Public sector affiliation plays a negative role.

Labour market institutions and economic performance in the Netherlands

The central question of this article is whether or not effectiveness and efficiency are improved by the stronger reliance on markets given Dutch labour market institutions and their resulting corporatist wage formation. In answering this question, besides the influence on the production costs (neoclassical approach), we explicitly deal with and quantify the ‘hidden’ transaction costs (institutional economics approach) of more decentralized labour relations, flexibilization of the labour market, and working conditions ‘à la carte’. The results presented cast doubt on both the efficiency and the effectiveness of recently introduced tailor-made solutions in the Dutch economy.