HRM practices of JIT firms in Canada

Many firms have adopted the just-in-time (JIT) philosophy to compete successfully in the global environment. The literature suggests that die success of JIT implementation depends on sound human resource management (HRM) practices that will attract, maintain, and retain employees with the required workforce characteristics. However, only a few field studies investigate the effectiveness of such practices. This empirical study examines HRM practices of 69 JIT manufacturing firms in Ontario, Canada. Specifically, it identifies important workforce characteristics, recruitment sources and selection instruments used by JIT firms. It also evaluates die degree of change in training, compensation, employee retention, and labour relations practices in the firms since JIT implementation. The level of attainment of various expected outcomes of JIT implementation and die competitiveness of the JIT firms are investigated. Problems faced by HRM managers are also discussed.     

HRM practices of Canadian and US manufacturing firms: An empirical investigation

This research investigates human resource management HRM practices of manufacturing firms in Ontario, Canada n = 141 , and midwestern United States n = 100 . Differences in sources of recruitment and selection instruments used by firms in the two countries are examined. The study also compares various training, compensation, and other HRM issues. We found major differences in HRM practices of manufacturing firms in the US and Canada.     

Strategic Integration and Devolvement of Human Resource Management in the UK Manufacturing Sector

This paper analyses the practices of ‘integration’ of HRM into the corporate strategy and ‘devolvement’ of responsibility for HRM to line managers in six British manufacturing industries. The findings are based on a questionnaire survey, in‐depth interviews and cognitive mapping methodologies. The results show that over 50% of the firms under study practise a high level of strategic integration. On the other hand, over 61% of the sample firms practise a low level of devolvement practices. Interestingly, both the practices of integration of HRM into the corporate strategy and devolvement of HRM to line managers are more determined by a number of organizational policies than traditional contingent variables. The adoption of the mixed methodology has been useful. The findings contribute to strategic HRM literature, and also have some key messages for policy‐makers in the field. The cognitive maps developed in the paper could be used to give feedback and training to managers.     

Modelling the impact of performance management practices on firm performance: interaction with human resource management practices

The paper draws on resource orchestration theory to investigate whether and how performance management (PM) practices interact with human resource management (HRM) practices in organisations as well as how this interaction affects firm performance. The proposed theoretical model was tested through a survey of 192 UK firms using Partial Least Squares approach for structural equations modelling. The findings show that the effect of PM practices on firm performance is better explained when the interaction between these practices and other organisational practices is considered. In particular, we examine the extent to which the interaction between PM practices and commitment-based HRM practices affects performance. We find that when HRM practices and PM practices are misaligned, their effect on performance can be negative. This is the first paper in the PM literature that establishes the relationship between PM and HRM practices in organisations and demonstrates the effect of this relationship on firm performance.     

Human resource management in the just-in-time environment

Successful just-in-time (JIT) implementation requires a multiskilled group-oriented and self-disciplined workforce with good quantitative skills. Little discussion exists in the JIT literature concerning the development of such a workforce. The human resource management (HRM) literature deals with employee issues but does not identify strategies for achieving a JIT workforce. In order to identify appropriate HRM strategies for a JIT environment, a comprehensive model is presented to show the critical linkage between JIT and HRM. Interactions between legal issues, management and union, and human input are examined. The impact of US labour laws on HRM practices is discussed and contrasted with Japanese practices. The literature review of HRM-related JIT articles suggests that HRM practices in the areas of staffing, training and development, compensation, and employee retention can be used to develop an effective JIT workforce. The article will help production managers to understand the impact of specific HRM strategies that are appropriate for developing a JIT workforce.     

The Impact of Organizational Culture on Time‐Based Manufacturing and Performance

Firms are utilizing an array of manufacturing practices in their quest for survival and success in the marketplace. The implementation of those practices has not always resulted in success stories as the focus had been mostly on technical issues, with little concern for “soft issues.” For example, the enabling role of organizational culture has often been ignored. Using Schein's conceptualization of culture as underlying assumptions, espoused values, and artifacts, we examine a framework that relates culture and manufacturing practices to performance. The underlying assumption of customer orientation is posited to affect espoused values such as beliefs on investing in facilities and equipment to leverage intellectual work and to promote creativity, beliefs on working with others, beliefs on making decisions that are global, beliefs on management control, and beliefs on integrating with suppliers. The espoused values are hypothesized to affect visible attributes of culture (behaviors) such as time‐based manufacturing practices, which firms are employing for competitive advantage. A sample of 224 firms is used for developing research instruments and testing the hypothesized relationships advanced. Results indicate that high levels of customer orientation lead to a set of managerial beliefs that are collaborative and integrative. In turn, certain espoused values support a high level of time‐based manufacturing practice, which leads to high performance.     

Collective voice mechanisms,HRM practices and organizational performance in Italian manufacturing firms

The literature on employee voice has grown enormously over the past decades. However, the relationships between different employee voice mechanisms and organizational performance are far from being fully understood, and the existing research shows mixed evidence. Moreover, the HRM literature tends to concentrate on individual voice mechanisms (e.g. employee involvement) and to underestimate the role that collective voice may have in the HRM performance relationship. This paper aims to analyze how collective employee voice mechanisms (i.e. union voice and team voice) affect organizational productivity and how these relationships vary when voice mechanisms are adopted in combination with other HRM practices (i.e. variable pay, training, performance appraisals and multitasking). The analysis of a sample of 223 Italian manufacturing firms matched with an external database (AIDA) containing balance sheet information found that union voice is positively related to labor productivity, while team voice does not show any significant relationship with labor productivity. Moreover, both union and team voice have important moderation effects in the HRM-performance relationship. Union voice moderates positively the relationship between variable pay and performance and negatively the relationship between training and performance. Team voice positively moderates the relationship between training and performance. The implications of these findings are discussed.     

Improving supply chain responsiveness through Advanced Manufacturing Technology: the mediating role of internal and external integration

Abstract

Responsiveness is one of the key performance factors that firms need to face up to the challenges posed by today’s markets. Many manufacturing firms are investing in advanced manufacturing technology (AMT) with a view to improving competitiveness. However, empirical evidence shows that investments in AMT alone do not lead to improvements in performance. In this study, a model that links AMT implementation and responsiveness through internal integration and external integration is proposed. A sample of 441 Spanish industrial companies was used to test the model through structural equation modelling. The findings highlight that internal integration needs to be supplemented with external integration in order to ensure that the implementation of AMT will result in improved responsiveness. Supply chain managers should focus on integration within the supply chain – firstly internal and later external – to obtain returns on investments in AMT in the form of improved flexibility and more reliable and faster deliveries.     

Organizational modifications to support JIT implementation in manufacturing and service operations

This study investigates JIT implementation practices and performance in manufacturing and service organizations in the US. Literature related to JIT usage and performance in both sectors is reviewed. A field study is then conducted to investigate the actual implementation experiences of a selected group of service and manufacturing users of JIT. Our findings from the literature and the field study are used to develop four research hypotheses that are tested using survey data from 130 manufacturing and 61 service firms. Manufacturing and service firms that had engaged in modifications such as operator and management training and improving linkages with suppliers prior to implementing their JIT systems experienced less implementation problems and achieved higher levels of success than firms that placed less emphasis on these modifications. This paper details and discusses these and other results from our study. In addition, managerial implications of our findings are presented.     

Human Resource Management under Institutional Constraints: The Case of Germany

Most human resource management (HRM) research has been conducted in countries that have relatively weak labour market institutions such as the UK and the USA. There is little research about the scope for and constraints on the adoption of HRM practices in countries with strong statutory regulations. The research presented here is based on 16 case studies of banks and chemical firms operating in Germany, that comply with the requirements of the German labour market institutions of collective bargaining, co-determination and initial vocational training, and hence operate under strong institutional constraints. The evidence presented shows that institutional features of the German system encourage the implementation of some ingredients of the HRM ‘recipe’ and inhibit others. It also indicates that constraining influences notwithstanding, a pluralist version of HRM appears to be quite compatible with the highly regulated German context.     

From Customer‐Oriented Strategy to Organizational Financial Performance: The Role of Human Resource Management and Customer‐Linking Capability

Drawing on the organizational capabilities literature, the authors developed and tested a model of how supportive human resource management (HRM) improved firms’ financial performance perceived by marketing managers through fostering the implementation of a customer‐oriented strategy. Customer‐linking capability, which is the capability in managing close customer relationships, indicated the implementation of the customer‐oriented strategy. Data collected from two emerging economies – China and Hungary – established that supportive HRM partially mediated the relationship between customer‐oriented strategy and customer‐linking capability. Customer‐linking capability further explained how supportive HRM contributed to perceived financial performance. This study explicates the implication of customer‐oriented strategy for HRM and reveals the importance of HRM in strategy implementation. It also sheds some light on the ‘black box’ between HRM and performance. While making important contributions to the field of strategy, HRM and marketing, this study also offers useful practical implications.     

Labour Market Flexibility,Human Resource Management and Corporate Performance

Labour market flexibility is often portrayed as a key to the competitive success of the UK and US economies. We surveyed several hundred firms in the UK, and using the resulting data (on over 200 manufacturing firms) this paper investigates the relationships between firms’ use of flexible work practices, human resource systems and industrial relations on the one hand, and corporate performance on the other hand. The results suggest that ‘low‐road’ practices – short‐term contracts, a lack of employer commitment to job security, low levels of training and low levels of human resource sophistication – are negatively correlated with corporate performance. In contrast, it is found that ‘high‐road’ work practices –‘high commitment’ organizations or ‘transformed’ workplaces – are positively correlated with good corporate performance. It is also found that human resource management practices are more likely to contribute to competitive success where they are introduced as a comprehensive package, or ‘bundle’ of practices. Significant interaction effects between human resource systems, trade unions and flexible work practices add further support to the bundling hypothesis.     

The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms

Manufacturing firms aim at improving both internal and external processes to improve the competitive advantage. Such initiatives include lean practices as well as supplier rationalization and integration. In this paper, we analyze these improvement initiatives and their impact on business performance. In particular, we explore potential differences between make-to-order (MTO) and make-to-stock (MTS) firms. We use data from 216 Australian manufacturing firms. We find a clear difference of improvement focus between MTO and MTS firms. MTO firms exhibit a significant impact of supplier integration on business performance, but not for lean practices and supplier rationalization. The situation is completely reversed for MTS firms, since they have significant effects for internal lean practices and supplier rationalization, but not for logistics integration with supplier. The results show that the distinction between MTO and MTS firms is important when analyzing manufacturing and supply chain improvement initiatives.     

竞争驱动战略转型的人力资本视线研究——以天津中小制造业企业为例

转型升级阵痛中的中国制造业企业，唯有基于人力资本"视线"实施差异化战略、推进激进式创新，才能变革成功，进而在激烈市场竞争中存活下来并形成核心竞争力。以天津市各大工业园区154家中小制造业企业的问卷调查数据为样本，采用结构方程模型对制造业企业创新逆驱战略转型的人力资本"视线"进行统计检验。结果显示，战略层面的"视线"有一个：外部环境竞争性、差异化战略、激进式创新与企业绩效。资源层面"视线"有两个：差异化战略、HRM系统、人力资本、渐进式创新、激进式创新与企业绩效；差异化战略、HRM系统、知识共享与企业绩效。这三条"视线"为中国制造业企业指明了战略转型、创新变革的具体方向。     

Taxonomy of ERP integrations and performance outcomes: an exploratory study of manufacturing firms

Building and deploying network capabilities of firms are crucial for sustaining competitive advantage. Enterprise resource planning (ERP) systems are useful to enhance such network capabilities thorough effective information flows. Their intended goals are measured in terms of production costs, operational flexibility and supply chain performance outcomes. However, the impact of ERP system implementation on firm performance has been reported as somewhat inconclusive. This study contends that a missing link in the story is the scope and extent of ERP system implementation after investigating how the extent of ERP integration is associated with the performance outcomes of manufacturing firms. The study also posits that restructuring in the organisation and supply chains are positively associated with manufacturing performance. Since ERP often entails restructuring in an organisation and supply chains, it is anticipated that restructuring plays an important role in inducing positive impact of ERP implementation to the firm. Using a global sample of 641 manufacturers, this research identifies four distinct ERP systems integration patterns, epitomised by different extents and directions of integration, and finds a significant association among the broadest degree of ERP systems integration, restructuring and plant performance improvement. The empirical results also show that restructuring takes place most actively in a firm that implement ERP with widest scope and scale.     

International HRM in South African multinational companies

With the paucity of published research on human resource management (HRM) policy and practice in the BRICS countries (Brazil, Russia, India, China and South Africa), the rationale for this article is to evaluate the nature of HRM practices, their development, application and diffusion in South African MNCs. It provides an exploratory analysis in a systematic literature review referring to qualitative case study research and research survey literature to better understand HRM strategies and practices developed and diffused by growing emerging market MNCs from South Africa.The findings underline significant challenges of human resource development and controversies regarding host country issues alongside a degree of ‘sophistication’ in the HRM practices of firms analysed. An aim of the article is to identify areas for further research on business and HRM models of Emerging Market MNCs (EMMNCs) in the African context and develop a set of seven research propositions.     

An Empirical Investigation of the Contribution of Strategic Sourcing to Manufacturing Flexibilities and Performance*

Empirical studies for achieving manufacturing flexibility goals have centered around the uses and advantages of advanced technology. Few studies have examined alternative ways of attaining flexibility objectives. Strategic sourcing finds mention in the literature as a potential route to manufacturing flexibility. However, little empirical evidence exists to validate this view. Literature also describes manufacturing flexibility as a multidimensional concept but fails to adequately examine the synergies among the different dimensions. This research investigates the influence of strategic sourcing and advanced manufacturing technologies on specific manufacturing flexibilities, and examines relationships among different flexibilities. The results are tied to manufacturing cost reduction. The findings suggest that strategic sourcing can assist in the achievement of modification flexibilities. Volume and modification flexibility are found to influence new product flexibility. Modification flexibility is found to influence manufacturing cost reduction. The results show that strategic sourcing can be used to target specific manufacturing flexibilities and that interflexibility synergies need to be considered while formulating flexibility-based manufacturing strategies.     

The effects of human resource systems on operational performance in mass customisation manufacturing environments

This study empirically examines the impact of two human resource management (HRM) systems on operational performance in two distinct mass customisation manufacturing (MCM) environments. Using the survey data collected electronically from 148 mass customisation manufacturers in the USA, moderated hierarchical multiple regression was employed to test the research hypotheses. Results suggest that operational performance significantly increases when a bundle of complementary basic HRM practices are integrated in MCM contexts that emphasise module and process standardisation. This finding indicates that these types of mass customisation manufacturers are capitalising on the opportunity to improve operational performance by strategically combining several different, but supportive, traditional HRM practices with a finite MCM system.     

Human resource strategy to improve organizational performance: a route for firms in Britain?

Performance, in the context of organization, is not only a broad concept which has been used synonymously with productivity, efficiency, effectiveness and, more recently competitiveness, it has also been a subject of study for social scientists from a wide range of disciplinary perspectives. More recently, efforts have been made by human resource management (HRM) theorists to try to establish a causal link between HRM and performance. This has led to a growing number of studies which examine the potential contribution that good human resource policy can make to improving organizational performance. This paper is not concerned with the conceptual debate of HRM and performance. Rather, it explores whether adopting good HR practices to improve performance is a practicable approach to organizations in the UK. Drawing on existing empirical evidence from other studies, the paper reviews the strategies British firms deploy to improve labour productivity. In particular, the issue of whether they use the 'high-road' HRM or 'low-road' HRM strategy to enhance performance is investigated. This paper concludes by suggesting that high-road HRM may lead to better organizational performance, but it may not be a strategy that firms opt for, given the historical, social and institutional context of employment relationships in Britain.     

Flexibility configurations: Empirical analysis of volume and product mix flexibility

In this paper we address flexibility and investigate the relationship between volume and product mix flexibility. One view of flexibility is that of being a capability in itself; another view is that of flexibility as an enabler, providing the manufacturing system with properties on which other competitive capabilities are built. In this research, the latter view of flexibility is used, where flexibility acts as a second order competitive criterion. The aim is to differentiate between two dimensions of flexibility important to the manufacturing value chain, i.e., volume and product mix flexibility, and to investigate how different flexibility configurations are related to various manufacturing practices. A clustering research approach is used to identify groups of companies based on flexibility configurations. The groups are then analyzed with respect to characteristics and impact on operational performance. For the empirical investigation, we use empirical data from the high performance manufacturing (HPM) study, including three industries and seven countries—a total of 211 plants. We find that flexibility configurations based on high or low levels of volume and mix flexibility combinations show significant differences both in terms of operational performance, and in terms of emphasis put into different flexibility source factors.