Maura Sheehan

Human Resource Management and Corporate Performance in the UK

The relationship between HRM and performance was explored in 366 UK companies using objective and subjective performance measures and cross‐sectional and longitudinal data. Using objective measures of performance, greater use of HRM is associated with lower labour turnover and higher profit per employee but not higher productivity. After controlling for previous years’ performance, the association ceases to be significant. Using subjective performance estimates, there is a strong association between HRM and both productivity and financial performance. The study therefore confirms the association between HRM and performance but fails to show that HRM causes higher performance.

Business strategy, human resources, labour market flexibility and competitive advantage

This paper contributes to the strategic human resource management literature by testing the three main approaches – the universalistic (‘best practice’), contingency and configurational – against an original database. Specifically, we examine: (1) the relationship between HR and firm performance, (2) the links between strategy, HR and the use of flexible employment contracts and (3) the moderating effects of strategy on the links between HR, flexible labour and firm performance. 2  While there appears to be empirical support for these ‘core’ HR strategies having a positive effect on performance, each of these policies ‘may be embodied in a variety of concrete and detailed people management practices’ (Richardson and Thompson, 1999 :2). Using original data collected from manufacturing and service-sector companies, we find positive relationships between HR policies and practices and performance; that the relationship between HR and performance is dependent upon business strategy; and that companies pursuing an integrated approach to HR coupled with an innovator/quality-enhancer focus within their business strategy perform best. The use of external flexible labour reduces the effectiveness of HR, especially for those pursuing an innovator/quality-enhancer approach.

Human resource management and performance: Evidence from small and medium-sized firms

This article examines human resource management (HRM) practices in small and medium-sized enterprises (SMEs). In particular, by examining the issue of causal order, it addresses a significant gap in the extant HRM–performance literature within the context of such firms. Significant simultaneous and longitudinal relationships between HRM practices and specific performance indicators are found. Controlling for past performance and thus, testing for the potential for reverse causality does not eliminate the significant relationship between human resource practices and performance. In sum, the use of human resource practices is found to positively enhance sustained competitive advantage. By explicitly examining the issue of causality in the human resources –performance relationship, this article makes a contribution to both the human resource and SME literatures.

Developing managerial talent: Exploring the link between management talent and perceived performance in multinational corporations (MNCs)

Purpose – To examine the association between talent management (TM) and perceived subsidiary performance. Focus is given to the development of one key talent group – line managers – in subsidiaries of multinational corporations (MNCs). Specifically, the paper examines: whether there is a positive relationship between Management Development (MD) and perceived subsidiary performance; and whether national context mediates any link between MD and perceived subsidiary performance.Design/methodology/approach – A multi‐respondent survey was undertaken generating a sample of 143 UK‐owned MNCs. For each organisation, interviews were completed with the Head of HR at corporate Head Quarters; the HR Manager/Specialist and a line manager in both the domestic and foreign subsidiaries of the sample organisation. A total of 5 respondents per organisation is used in the analysis.Findings – The link between the MD variables and perceived subsidiary performance is consistently positive and robust in all of the models estima...

Regional convergence in the UK, 1970-1995

This paper tests for the existence of long run inter-regional equilibrium relationships in income per capita within the UK over the period 1971-95. We examine both the cross-sectional and time-series evidence of inter-regional convergence. The time series approach allows us to investigate whether there are long-run regional equilibrium trends, whereas the cross-sectional analysis allows us to investigate whether the dispersion in per capita incomes between regions has narrowed. While it was found that some of the regions converged over time, there were no obvious explanations for why these regions converged and others did not. Moreover, with the exception of Northern Ireland and Scotland, regional policy appears to have had little impact on the relative positions of assisted regions in terms of their share of UK GDP.

Introduction: Global human resource management and economic change: a multiple level of analysis research agenda

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Investing in management development in turbulent times and perceived organisational performance: a study of UK MNCs and their subsidiaries

The recent global economic crisis has contributed to organisations carefully scrutinising all budgets. Resources allocated to investment in human capital, especially training and development, have been one of the first cuts in previous downturns. This reflects, at least in part, that training and development is often regarded as expenditure. Such cutbacks are likely to be detrimental to future competitive advantage, especially if there is a link between training and development and organisational performance. This study focuses on one aspect of training and development, management development (MD). A multi-faceted process model of MD – comprising eight inputs; two constructs of process and two constructs of output – is used to examine whether there is a link between MD and perceived subsidiary performance. The mediating effect of national context on any relationship between MD and perceived subsidiary performance is also explored. The potential implications of the global economic crisis for expenditure on MD and how such changes may affect future competitiveness are also considered.

Government Policies and Employers' Attitudes Towards Long-term Unemployed People in Northern Ireland

The article discusses government policies towards unemployed people in the context of the development of ‘fair employment’ policy in Northern Ireland. It presents results from a survey of long-term unemployed people in West Belfast which challenge the direction and content of existing training and employment schemes, and their capacity to address inequalities in unemployment between Catholics and Protestants. The article argues that current supply side labour market policies are having limited impact in Northern Ireland and goes on to explore policies to influence labour demand. On the basis of interviews with employers, a number of policies are advocated, including giving priority to recruitment of long-term unemployed people in areas of high unemployment by means of making grant aid conditional.

Human capital or signalling, unpacking the graduate premium

Purpose - –The purpose of this paper is to revisit the debate on the contribution of higher education (HE) to the economy which has been dominated by human capital theory and signalling theory. Human capital theory contends that HE contributes by adding to the potential productivity of graduate employees. Signalling theory, asserts that HE contributes by enabling employers to differentiate potentially productive graduate employees. Design/methodology/approach - – The paper uses recent advances in our understanding of the graduate employability to reassess the two theories. Most graduate job vacancies are open to graduates of any subject and the key to employment in such jobs appears to be the graduate propensity to learn in employment. Findings - – HE both increases students’ propensity to learn in employment and signals to employers that graduates are people with a high propensity to learn in employment. Practical implications - – The conclusion is that for the four key stakeholder groups, the economic value of a university education can best be explained with the concept of “graduate propensity to learn”. Social implications - – Employers, government, existing students and potential students and universities benefit from the propensity to learn, which is the most important economic outcome of a university education. Originality/value - – The paper resolves the choice between human capital and signalling theories as a false dichotomy as HE both develops students’ powers.

Investment in Training and Development in Times of Uncertainty

The Problem While there is some consensus in the economics literature that there is a negative association between uncertainty and investment in capital, whether this relationship applies to investment in human capital—in particular training and development (T&D)—undertaken by firms is not clear. The evidence about what has happened to T&D investment in the aftermath of the global financial and economic crisis of 2008 is very inconclusive. This article examines how uncertainty has affected overall, general, and firm-specific T&D post-2008. The Solution The analysis shows that T&D investment is highly sensitive to uncertainty, especially general T&D. Given the importance of T&D—especially general T&D for sustained competitive advantage—it is absolutely essential that investment is sustained, even in the presence of uncertainty. Viewing and treating T&D as an investment, rather than its current accountancy configuration, as an “expenditure,” can help to ensure T&D investment is maintained. Practitioners need to become more confident and competent in demonstrating that T&D is an investment, with the potential to generate significant returns for organizations, especially in relation to sustained competitive advantage. The Stakeholders The article will be of particular relevance to human-resource development, T&D practitioners, and employees, all of whom have to compete for scarce resources.