Strategic human resource management: where have we come from and where should we be going?

Strategic human resource management (SHRM) implies a concern with the ways in which HRM is critical to organizational effectiveness. This straightforward assertion is examined in theory and through research evidence to reveal high levels of complexity in relation to how, when and why the interconnection between HRM and organizational outcomes is achieved. The two dominant normative models of 'best fit' and 'best practice' are considered. The paper concludes that the HR strategies of firms are heavily shaped by contextual contingencies, including national, sectoral and organizational factors. However, such a conclusion does not invalidate all 'best-practice' thinking. Although constrained in certain ways, underpinning principles of labour management still have relevance to practice as essential attributes of a firm's ability to compete in its chosen markets. The paper then considers the resource-based view (RBV) of the firm and asks whether this provides a better basis for the development of theory in SHRM and in understanding the contribution of HRM to the achievement of sustained competitive advantage. While limits to the utility of RBV in respect of SHRM theory are identified, important implications for research are signalled. Trends in the RBV literature are pushing all those interested in strategy towards studies of intellectual capital, learning processes and organizational adaptability. Researchers in HRM could, if they wished, play a central role in these developments because questions of how to attract, motivate and develop workers with critical and scarce abilities, and develop effective processes of work organization, must be fundamental to any model of knowledge-based competition. Greater progress will be made when organizations are studied in a much more interdisciplinary or systemic way.     

Health care futures. What lies ahead? Where are we going? Panel discussion

Who would have guessed that managed care would dominate the health care industry in the final two decades of the millennium? That physicians would be joining labor unions? Or that they would be going back to school to become Fellows of the American College of Physician Executives? To find out what may be in store for health care in America five to 10 years hence, The Physician Executive asked nine health care experts to participate in a two-part panel discussion. Here's what they see ahead in managed care, information technology, and biotechnology. Part 2 will appear in the July/August Issue of The Physician Executive.     

Do Immigrants Compete with Natives?

The paper analyses the impact of foreign workers on the Italian labour market. We address the issue of whether immigrants from less developed countries are complementary or substitutes to domestic workers. We construct a data set on immigrant workers from the Administrative Social Security Archive which starts in 1986, before the general amnesty of 1990–91, when a large share of illegal immigrants were granted working permits, and end in 1995. A two-stage procedure devised by Moulton is applied to yearly cross-sections of wages by industry and region. Our results show that the inflow of immigrants raises the wages of native manual workers (i.e. it has a complementary effect), and this effect is larger in small firms and in the north of the country. We postulate that the positive impact on native wages is due to the existence of labour constraints on the side of firms. Firms are unable to expand their output because they cannot find native workers who are willing to undertake certain (typically low-skilled) jobs. Immigrants help to fill this gap. This view is reinforced by the fact that over a ‘crucial threshold’ of the share of foreign work (7.7–12 percent) additional inflows in the labour market of foreign work have a negative effect on native wages (i.e. they compete with natives).     

Is white always the standard? Using replication to revisit and extend what we know about the leadership prototype

This research is a pre-registered replication of Rosette, Leonardelli, and Phillips' (2008) seminal work in leadership categorization theory. Their work established race as a component to the business leader prototype and found evidence that when a leader was given credit for successful organizational performance, White leaders were evaluated more favorably than non-White leaders. As leadership exemplars are evolving, however, a need to reexamine these relationships has emerged. Results from our replications of their first and third studies showed minimal support for the argument that being White is a component of the business leader prototype. Additionally, across six separate studies, we found no conditions in which White leaders received more favorable evaluations than their non-White counterparts. Contrary to our expectations, we found that non-White leaders received marginally more favorable ratings than White leaders in four of our studies.     

Do R&D activities foster globalization of young innovative companies? Empirical evidence from the Italian energy industry

Although executives and scholars interested in “globalization” and “R&D activities” mainly focus their attention on corporations, the relevance that young innovative companies – YICs are assuming is compelling them to redefine their focus. With reference to YICs, some scholars investigate the influence of globalization on R&D activities, while others inquire the impact of R&D activities on their globalization. This paper shares the second approach and sets out to investigate whether and to what extent R&D activities managed by YICs affect their globalization.By enacting Law n. 221/2012, the Italian Government has posed particular attention on YICs. Accordingly, primary and second-hand data concerning 2070 Italian YICs with high technological value in the energy industry – YICsei and 12,278 Italian YICs (operating in other industries) are used to carry out stochastic frontier analyses – SFAs. These allow testing whether R&D activities (measured through investments, personnel, and outputs) foster the globalization of these firms. SFAs reveal that none of the three factors affects the globalization of Italian YICsei; instead, R&D personnel and R&D outputs foster the globalization of Italian YICs.Achieved results open new research avenues about the impact of R&D activities on the globalization of YICs.     

Telemedicine: where is technology taking us?

Five years ago, a few zealots in Switzerland, at the CERN Laboratory, were contemplating using the Internet for hypertext and for transfer of still images, recorded sounds, and compressed video files. Five years later, the World Wide Web defines a set of standards for packaging and routing information over the Internet that involve millions of people and personal computers and that allowed a start-up Netscape to enjoy a capitalization of more than $2 billion when it sold stock to the public recently. Now, video-conferencing and multimedia electronic mail over the Internet are the fascinations of engineers at NASA, and the MBONE Information Web, the province of technophiles with UNIX workstations. Five years from now, you may be participating in telemedicine sessions frequently, from your workstation, and think nothing of it.     

Physician-hospital organizations and PHO executives. What lies ahead for the PHO?

The 1996/97 Profile of Physician-Hospital Organizations and PHO Executives, jointly conducted by the American Association of Physician-Hospital Organizations/Integrated Delivery Systems (AAPHO/IDS) and Tyler & Company, takes a closer look at the PHO and trends within the health care system. In examining contracting, enrollees, staff size and experience, compensation, incentives, and projected salary increase for CEOs, the survey found that the PHO is in the midst of transformation into an integrated delivery system. As physicians and hospitals form a team to deliver more efficient and cost-effective health care to patients, they are paving the way to the integrated delivery system. The survey also focuses on the details of the PHO and PHO executives, including an in-depth look at all aspects of compensation for the CEO.     

Emotional labor and leadership: A threat to authenticity?

Building on the emotional labor and authentic leadership literatures, we advance a conceptual model of leader emotional displays. Three categories of leader emotional displays are identified: surface acting, deep acting and genuine emotions. The consistency of expressed leader emotions with affective display rules, together with the type of display chosen, combines to impact the leader's felt authenticity, the favorability of follower impressions, and the perceived authenticity of the leader by the followers. Emotional intelligence, self-monitoring ability, and political skill are proposed as individual differences that moderate leader emotional display responses to affective events. We also look at followers' trust in the leader and leader well-being as key outcomes. Finally, we explore the influence on leader emotional labor of contextual dimensions of the environment, including the omnibus (national and organizational culture, industry and occupation, organizational structure, time) and discrete (situational) context. Directions for future research are discussed.     

Does positivity enhance work performance?: Why,when, and what we don’t know

There is evidence, spanning many decades of research, that the subjective well-being (SWB) of workers, including life satisfaction, job satisfaction, and positive affect, positively correlates with the performance of workers and organizations. However, the size of the relationships is typically small to moderate. In this review we address the question of why the relationships are not stronger. We first review evidence of a relationship moving from well-being to performance through various pathways. Workers who are high in SWB are now understood to have: 1. better health, 2. lower absenteeism, 3. greater self-regulation, 4. stronger motivation, 5. enhanced creativity, 6. positive relationships, and 7. lower turnover. Each of these variables can predict individual and organizational performance. However, the sheer number of known and possible pathways means the relationships are bound to be complex, and there are mitigating conditions at every turn. Thus, second, we review the evidence of moderators of these mediators, hypothesizing when a happier workforce is a more productive one, and when not. Future research is needed to firmly establish the pathways from different types of SWB through the mediators to metrics of performance, to further establish the moderating conditions in which these relations are most likely to occur, and to evaluate how much SWB is needed to maximize effectiveness. We end by urging scholars to conduct this future research using the highest standards of scientific integrity.     

Correction to: What do we lose when machines take the decisions?

Journal of Management and Governance - In the original publication, the word “lose” has been inadvertently published as “loose”. All occurrences of “loose”...     

CCR or BCC: what if we are in the wrong model?

The CCR model by Charnes et al. (Eur J Oper Res 2:429–444, 1978) together with the BCC model by Banker et al. (Manag Sci 30:1078–1091, 1984) are the most popular approaches of measuring efficiency among a group of decision making units, DMUs, in data envelopment analysis, DEA. The right choice of a DEA model—CCR or BCC—often, if not always, is a difficult decision. To evaluate a DMU’s efficiency for both models might be helpful, but it does not always capture the essential issues at stake. In this paper we propose a comparative analysis of both concepts: How does activity scaling under constant BCC-efficiency influence CCR-efficiency. And inversely, how does BCC-efficiency behave when activity scaling under constant CCR-efficiency is applied. Such findings of mutual effects improve a DMU’s ability to reassess upsizing and downsizing of activities. Moreover, it allows for exact calculations of the resulting economic effects, and these effects give new insights beyond classical DEA. Finally, scale efficiency turns out to be the ideal concept to control these activity changes, rather than just CCR- or BCC-efficiency. We use a little numerical example to emphasize advantages of the new concept and sketch the new findings for a theater scenery.     

India: Can we eliminate poverty?

The problem of poverty is severe and of long-standing duration in India, and is at its most acute in rural areas. In recent years central and state governments have started a number of schemes aimed at reducing rural poverty but they cannot solve the problem completely because of their shortcomings and inadequacies. The author describes the deficiencies of these schemes and suggests that a multi-pronged approach and more effective strategy are needed to make significant headway. He advocates an assistance rather than a control mode of planning and close coordination among the various agencies involved in rural development.     

Standard of Living as a Right,Not a Privilege: Is It Time to Change the Dialogue from Minimum Wage to Living Wage?

Dating back to the 1930s, President Franklin D. Roosevelt argued that workers were entitled to a wage that allowed them to enjoy a decent standard of living—a conviction that led the president to propose the first federally‐mandated minimum wage. Mr. Roosevelt’s proposal was met with highly partisan resistance in congress and the courts—reactions not different in kind from the highly partisan resistance former President Obama experienced in his proposal to increase the federal minimum wage from its current level of $7.25 per hour. Reflecting President Roosevelt’s convictions, it is clear that many low wage workers today are not, and cannot, enjoying a decent standard of living at current minimum wage levels. Further, many of the economic arguments raised in opposition to increasing the minimum wage have been thoroughly discredited: empirical evidence suggests that increased minimum wages would not lead to dramatic spikes in unemployment, massive substitutions of capital for labor, business closings, and significantly increased consumer prices. However, as compelling as arguments for increasing the minimum wage may be, the reality is that this may not be sufficient to alleviate the plight of low income workers, particularly given the political nature of minimum wage adjustments. Indeed, it may be time to shift the national focus away from the minimum wage to an emphasis on viable living wage legislation, a proposition consistent with the social justice perspective of contemporary ethicists.     

Functional leadership in interteam contexts: Understanding ‘what’ in the context of why? where? when? and who?

Research on team leadership has primarily focused on leadership processes targeted within teams, in support of team objectives. Yet, teams are open systems that interact with other teams to achieve proximal as well as distal goals. This review clarifies that defining ‘what’ constitutes functionally effective leadership in interteam contexts requires greater precision with regard to where (within teams, across teams) and why (team goals, system goals) leadership processes are enacted, as well as greater consideration of when and among whom leadership processes arise. We begin by synthesizing findings from empirical studies published over the past 30 years that shed light on questions of what, where, why, when, and who related to interteam leadership and end by providing three overarching recommendations for how research should proceed in order to provide a more comprehensive picture of leadership in interteam contexts.     

Does the capital of social capital matter? Relational resources of the board and the performance of Brazilian companies

Based on theories of social capital, in this study, we seek to assess the impact of a board’s social capital on the market value of companies listed on the Brazilian stock exchange. As our indicator of social capital, we use the relational resources identified in the direct, indirect and heterogeneous ties of the board. Employing panel data from 508 observations, our results indicate that heterogeneous relational resources have a stronger and more significant influence than the resources available from board members’ direct relationships. Additionally, as the effects of board interlock are endogenously determined by several factors related to the firm level, we seek to mitigate the endogeneity problem using models of instrumental variables and simultaneous equations. Our hypotheses were consistent after controlling for endogeneity. We also check whether the board’s social capital could present a U-inverted effect on the market value. This relationship was only plausible in social capital by indirect ties. Finally, we isolate the effect of relational resources within and between industries on Tobin’s Q. There was no significant effect through interlocks within the same industry. However, ties with companies in several other industries were significant.     

Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?

The choice of a mode of market entry is a critical component of the internationalization strategy, and numerous empirical studies have focused on this topic. Prior research, however, has provided mixed empirical evidence and thus, is difficult to interpret and review.This study examines the external antecedents of the choice of entry mode by meta-analyzing data from 72 independent primary studies. We focus on the decision between wholly owned subsidiaries and cooperative entry modes. For each variable, hypotheses about the theoretically expected direction of effect are posited and tested.We find a strong positive relationship between power distance as a cultural trait of the firm's home country and the propensity to establish a wholly owned subsidiary. On the other hand, we find a negative association between country risk, legal restrictions, market growth, and market size and the preference for wholly owned subsidiaries. We extensively discuss the implications of the meta-analytical results and investigate moderating effects of industry type and the time of the study. The relationship between income level of the host country and entry mode depends, to some degree, on the industry type. Service companies exhibit a negative relationship between income level and wholly owned subsidiaries, while manufacturing companies show a positive relationship.