John Paul MacDuffie

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.

Prototypes and strategy: assigning causal credit using fuzzy sets

Strategies often are stylized on the basis of particular prototypes (e.g. differentiate or low cost) whose efficacy is uncertain often due to uncertainty of complex interactions among its elements. Because of the difficulty in assigning causal credit to a given element for an outcome, the adoption of better practices that constitute strategies is frequently characterized as lacking in causal validity. We apply Ragin’s (2000) fuzzy logic methodology to identify high performance configurations in the 1989 data set of MacDuffie (1995). The results indicate that discrete prototypes of practices are associated with higher performance, but that the variety of outcomes points to experimentation and search. These results reflect the fundamental challenge of complex causality when there is limited diversity in observed experiments given the large number of choice variables. Fuzzy set methodology provides an approach to reduce this complexity by logical rules that permit an exploration of the simplifying assumptions. It is this interaction between prototypical understandings of strategy and exploration in the absence of data that is the most important contribution of this methodology.

Employee voice and organizational performance: Team versus representative influence

This article explores the effects of team voice and worker representative voice, as well as their interaction, on labor productivity. We examine team voice in terms of team influence on key work-related issues and representative voice via the degree of worker representatives’ influence on multiple collective voice issues. We thus build on the European tradition of examining both direct and indirect voice and their implications for valued organizational outcomes. We find that neither type of voice bears a significant relationship to labor productivity when examined solely but that team voice significantly contributes to enhanced worker efficiency when considered in conjunction with representative voice. In examining the interaction of the two types of voice, we find that a combination of low team and low representative voice leads to inferior labor efficiency compared to other conditions. We also find a negative interaction between team voice and worker representative voice, supporting an interpretation that these types of voice do not complement each other with respect to worker productivity. The positive impact of each type of voice is significantly stronger at low levels of the other type of voice.

What Makes Teams Take? Employee Reactions to Work Reforms

This paper examines employee reactions to the introduction of work teams, reduced job classifications, and skill-based pay as established through the Modern Operating Agreement (MOA) between Chrysler Corporation and the United Auto Workers. Survey data suggest that workers responded favorably to the MOA across six diverse manufacturing plants, despite variation in founding conditions. The authors draw on field research to assess differences in effects across individual plants. Individual attitudes were more negative in plants facing the threat of sell-off, although individuals in those plants also reported engaging in more of the team-based behaviors required by the MOA. Individual responses to the MOA also varied by demographic characteristics, and by perceptions of the MOAs impact on various individual, group, and organization-level outcomes.

What makes transplants thrive: managing the transfer of "best practice" at Japanese auto plants in North America

Multinational companies are a conduit by which superior organizing principles can be transferred across national, institutional, and cultural environments. However, for such transplantation efforts to be successful, the companies face the challenge of adapting their practices and principles to the requirements of local environments. In the process they risk losing the performance benefits from those practices. In this paper we study the North American transplant production facilities of Japanese automobile producers--companies known for their ability to achieve superior labor productivity and quality in their manufacturing plants, along with high levels of product variety--for insight into how the practices associated with superior performance (including work systems, technology choices, and supplier relations) can be implemented outside of Japan. By comparing the Japanese transplants with automobile plants in Japan, and Big 3 plants in North America, we show that the extent of transfer varies by type of practice. Furthermore, we find that plants can shape and alter their external environment, and can also buffer themselves from it. Despite these modifications, we find that the transplants are able to achieve productivity and quality levels similar to plants in Japan.

12 HRM and Distributed Work: Managing People Across Distances

The phenomenon of managing work that is distributed over geographical distance is not new but is increasing in both frequency and intentionality as a function of globalization and knowledge-centric strategies. I review the literature on geographically distributed work, both that which highlights liabilities of loss of proximity and more recent research that emphasizes “virtual teams” as an intentional organizing device. I explore the adaptations, remedies, and countervailing strategies deployed to support such teams, contrasting those that minimize distance with those that increase individual and group capacity for coping with distance. I also emphasize that other dimensions of distance—cultural, administrative, and economic—affect the organization of work, the experiences of those doing the work, and individual and organizational outcomes. Here I highlight the “blended workforce” in which standard (traditional employees) and nonstandard (temporary and contract) workers are organized to accomplis...

Reorienting and Recalibrating Inter-organizational Relationships: Strategies for Achieving Optimal Trust

Drawing upon longitudinal, dyadic, comparative case-based research, we analyze the pursuit of optimal trust, i.e. trust that is neither excessive nor insufficient, by introducing the concepts of reorientation and recalibration. First, we show that large deviations from optimal trust are best addressed by reorientation which deals with both too much as well as too little trust. Reorientation processes include substantial efforts to change parties’ attributions of the intentions underlying past behavior, to reestablish social equilibrium among the parties, and to make structural changes via adjustments to goals and incentives. Reorientation is necessary when imbalance occurs in the powerful and opposed forces associated with excessive trust (faith, favoritism, contentment, loyalty) vs insufficient trust (skepticism, impartiality, exigency, opportunism). Second, we demonstrate that there is an effective path to maintaining optimal trust via practices we call recalibration, wherein small deviations are addressed before damage to trust occurs. Recalibration maintains inter-organizational trust near its optimum through processes that proactively balance the opposed forces. Large deviations from optimal trust in either direction can unleash destabilizing dynamics, requiring significant reorientation efforts to offset. Recalibration processes are then essential for preserving the effects of successful reorientation.

12 HRM and Distributed Work

AbstractThe phenomenon of managing work that is distributed over geographical distance is not new but is increasing in both frequency and intentionality as a function of globalization and knowledge-centric strategies. I review the literature on geographically distributed work, both that which highlights liabilities of loss of proximity and more recent research that emphasizes “virtual teams” as an intentional organizing device. I explore the adaptations, remedies, and countervailing strategies deployed to support such teams, contrasting those that minimize distance with those that increase individual and group capacity for coping with distance. I also emphasize that other dimensions of distance—cultural, administrative, and economic—affect the organization of work, the experiences of those doing the work, and individual and organizational outcomes. Here I highlight the “blended workforce” in which standard (traditional employees) and nonstandard (temporary and contract) workers are organized to accomplish...

Taiwan's bicycle industry A‐Team battles Chinese competition with innovation and cooperation

Purpose – This case aims to examine how Taiwans bicycle industry has persevered against increasingly severe competitive challenges from Chinese companies. The Taiwan firms have created innovative, high value‐added products and transformed the organization of production through a new version of cooperative competition. The case seeks to show how established producers may counter‐attack when faced with the strong challenges of low‐cost competitors.Design/methodology/approach – The authors, all experts on Taiwanese manufacturing and business processes, examine the characteristics of an integrated, co‐innovative, cooperative supplier network, named the A‐Team.Findings – The paper finds that, broadly speaking, integrated, co‐innovative supplier networks have two basic features that differentiate them from traditional modular, symbiotic supplier networks. First, whereas traditional supplier systems have emphasized cost control, integrated, co‐innovative supplier networks appear to be more focused on value crea...

Lean Production and Worker Health: A Discussion:

LANDSBERGIS: New systems of work organization have been introduced by employers throughout the industrialized world in order to improve productivity, product quality, and profitability. Such efforts have taken a variety of forms and names, including lean production, total quality management, re-engineering, and modular manufacturing, and have often been extolled as reforms of Taylorism and the traditional assembly-line approach to job design. While the new systems can introduce profound changes in the way work is designed, few studies have examined the impact of such systems on work injuries (especially work-related musculoskeletal disorders) or on job characteristics related to job strain (that is, jobs defined by high demands, low control, and low support), which have been linked to the development of hypertension and cardiovascular disease. In addition, lean production and related new work systems may impact on worker skill development, co-worker support and solidarity, and union strength, and may, in turn, be modified by union efforts. Therefore, we asked a number of researchers and educators in the field to discuss the impact of lean production on worker health and safety and related job characteristics. Paul Adler, University of Southern California, has studied the New United Motors Manufacturing, Inc. (NUMMI) auto assembly plant, a General Motors (GM)–Toyota joint venture in Fremont, California, and compared it to Scandinavian auto plants on productivity and quality, as well as ergonomics. Paul Landsbergis, Cornell University Medical College, has