Read the summary and the most important questions on Human Resource Management and labor productivity: Does Industry Matter? | D.K. Datta

• 1 Introduction

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• What examined Datta in his study: Human Resource Management and labor productivity: Does Industry Matter?

  In this study is examined how industry characteristics affect the relative importance and value of high-performance work systems.

• What are industries (Datta)?

  Industries, like national cultures, are the contexts within which meanings are construed, effectiveness is defined and behaviors are evaluated. A firm's industry (or industries) is an important part of the environment within which organizational policies and practices are framed and executed (uitgevoerd).

• 2 Historical roots and theoretical perspectives

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• How is SHRM defined by Wright and McMahan? (in: Datta)

  Wright and McMahan defined strategic human resource management (SHRM) as 'the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals'.

• According to Delery and Shaw (2001), at least two major features distinguish SHRM research from the more traditional HR management (HRM) practice research. Which two? (in Datta)

  1)      SHRM studies have focused on explicating the strategic role that HR can play in enhancing organizational effectiveness.

  2)      The level of analysis. HRM practice research has traditionally an individual-level focus, while SHRM research is typically conducted at the business-unit or organizational level of analysis.

• What was the focus of recent HR research? (Datta)

  Recent HR research has focused on high-performance work systems, a term used to denote (aanduiden) a system of HR practices designed to enhance employees' skills, commitment, and productivity in such a way that employees become a source of sustainable competitive advantage.

• Describe the differences between an mechanistic and organic style? (Datta)

  A mechanistic management style emphasizes the expertise and authority of members at the top of an organizational pyramid. In a firm with an organic organizational style knowledge is assumed to be widely dispersed throughout the organization, and broadened task roles and employee commitment to the entire organization are emphasized. These management styles or systems are employee-centered by design: it is assumed that optimal organizational performance will be achieved through high employee capability, paired with employee commitment and involvement.

• The resource-based view of the firm has also incorporated a contingency perspective. What does this mean (Datta)?

  Organizational resources can be a source of sustainable competitive advantage to the extent that they create value and allow a firm to excel in its particular competitive environment. Resources contribute more or less value depending on a firm's competitive environment.

• 4 Methods

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• How is Labor productivity defined? (Datta)

  In general it is defined as total output divided by labor inputs, indicates the extent to which a firm's labor force is efficiently creating output.

• On which work is the authors measure of the High-performance work system based? (Datta)

  The authors measure is based upon the work of Guthrie (2001) and Huselid (1995). They assessed the use of 18 practices, which are identified in the Appendix. Estimates were obtained of the proportion (0-100%) of members of each of two groups 'exempt' and 'nonexempt' employees, who were covered by each high-performance work system practice. Using the number of employees in each group, we computed a weighted average for each practice.

• What 5 control variables did the authors controlled for? (Datta)

  (1) Firm size (may be associated with the use of more sophisticated human resource practices as well as with higher productivity). (2) Size (is about a firm's number of employees). (3) Firm sales growth (is defined as the growth in a firm's sales over a three year period). (4) Firm capital intensity (is to control for possible relationships with use of high-performance work systems and firm productivity). (5) Level of employee unionization (is controlled because unions might influence labor productivity).