Whatever happened to humanresource managementperformance.docx

Whatever happened to human
resource management
performance?
Peter Prowse and Julie Prowse
University of Bradford, Bradford, UK
Abstract
Purpose – The purpose of this paper is to critically explore the
evidence that human resource
management (HRM) could contribute to the improvement of
organizational and individual
performance. It aims to examine the historical development of
HRM and its emergence as a distinct
management discipline. The evidence indicates that HRM is the
product of several different traditions
that range from a concern with employee welfare to the
development of workplace relationships. The
paper critically re-evaluates what human performance is and
assesses its contribution to
organizational effectiveness. What is particularly important is
the lack of empirical literature on the
contribution of HRM and business performance. This paper will
call for the re-evaluation of more
contemporary criteria of how people contribute to
organizational performance in private, public and
the emerging non-profit making sectors.
Design/methodology/approach – The methodology adopted in
this research uses critical
literature on the contribution of human resource management

performance.
Findings – The main finding of this research is the
understanding of the problems of research design
in measuring the contribution of HRM to develop performance
in organizations.
Research limitations/implications – The research presented in
this paper needs to review and
standardize comparative research design to confirm the
performance of HRM in organizations. It
compares the alternative perspectives of measuring performance
in financial criteria.
Originality/value – This paper reviews the research between key
authors for exploring the
correlation between HRM and organizational performance for
future research and examines the
influence of human resource professional bodies.
Keywords Human resource management, Performance
measurement (quality), Critical success factors
Paper type Literature review
Introduction
This chapter evaluates the contribution of human resource
management (HRM) to
improving organisational performance. What is evident from the
literature is the
linkages between human resource management and
organizational performance. One
of the key issues that needs to be examined is exactly what type
of performance and
the contribution of HR techniques to increase performance.

Initially, the chapter evaluates the historical development of
performance
management from the HRM literature before evaluating the
debates on efficiency
and performance. It then outlines the development of HRM
techniques designed to
evaluate the outcomes of HRM to improve organizational and
individual performance,
The current issue and full text archive of this journal is
available at
www.emeraldinsight.com/1741-0401.htm
The authors would like to thank the Editor and anonymous
referees for their helpful comments
and suggestions.
Human resource
management
performance
145
Received March 2009
Revised July 2009
Accepted September 2009
International Journal of Productivity
and Performance Management
Vol. 59 No. 2, 2010
pp. 145-162
q Emerald Group Publishing Limited

1741-0401
DOI 10.1108/17410401011014230
and links this to performance in organizations. The outcomes of
techniques intended to
increase organisational commitment and increase job
satisfaction will be critically
evaluated. The chapter further examines the North American
and the European (and
particularly the UK) literature on efficiency and effectiveness
and the evidence whether
human resource management improves organizational
performance.
What is HRM and how does it link to organizational
performance?
Initially it is helpful to identify the factors that influenced HRM
developments and
consider if these approaches to managing people represent
something different or a
continuation of previous management practices (Legge, 1995,
Keenoy, 1990). Over the
last 30 years there has been an increased interest in HRM.
Arguably, it represented a
new and radically different way of managing people and is a
critical lever for
improving organizational performance in terms of productivity
and harnessing and
increasing employee commitment (Storey, 2007).
Storey (1989, p. 3) notes that HRM is associated in a number of
organisations with
only a change in terminology from industrial relations to

employee relations and from
personnel management to human resource management.
Similarly the number of
definitions of HRM reflects the diversity of the subject. Beer et
al. (1984, p. 1) define
HRM as, “all management decisions that affect the relationship
between organisations
and employees – its humans”. Whilst Guest (1991) defines HRM
in terms of four key
policy goals: high commitment, high quality, flexibility and
strategic integration.
Storey (1995, p. 5) argues:
Human resource management is a distinctive approach to
employment management which
seeks to achieve competitive advantage through the strategic
deployment of a highly
committed and capable workforce, using an integrated array of
cultural, structural and
personnel techniques.
Blyton and Morris (1992, p. 116) make the observation that
“underpinning this linkage
of HRM and flexibility is the argument that HRM posits a closer
connection between
business strategies, personnel policies and practices”. However,
a number of authors
(Sisson, 1994; Legge, 1995; Noon, 1992; Storey, 1995) suggest
it remains unclear exactly
what HRM is, a view reiterated by Guest (1998, p. 43) who
comments that “after more
than a decade, it can be argued that we still don’t know what
HRM is”. Whilst Sisson
(1990, p. 1) defines HRM as “in the most general of senses to
refer to the policies,
procedures and processes involved in the management of people

in work
organizations”. Poole (1990, p. 3) suggests that:
Human resource management is viewed as strategic; it involves
all managerial personnel; it
regards people as the most important single asset of the
organisation; it is proactive in its
relationship with people; and it seeks to enhance company
performance, employee “needs”
and societal well being.
Hartley and Stephenson (1992, p. 5) observe that HRM has
generated new ideas about
how to motivate rather than control employees that involves
engendering a climate of
commitment, genuine flexibility and adaptability and employee
concern for quality.
The extent to which HRM has achieved this is open to debate.
Sisson (1994, p. 4) argues
that there is little evidence that HRM has been implemented in
the UK and that it is “a
moot point whether British management are developing a more
strategic approach to
managing human resources or whether they are muddling
through”. This view is
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supported by Storey (1992) who contends that many writers in
the 1980s presented
HRM as something new and distinct, when in reality little had

changed. Blyton and
Morris (1992, p. 127) concur with this point and suggest that
“although the theory of
HRM focuses on a long-term and strategic approach, the reality
is that workforce
flexibility is driven by short-term responses, primarily cost
driven and ad hoc”.
Both Guest (1987) and Storey (1992), 2007) argue that since the
1980s strategic
managers have been interested in different methods of managing
people and
performance. Arguably, changes in the HR practices of
organisations signify a move
away from the “collective” (trade union negotiated
involvement) to the “individual”
(harnessing employee commitment using the management of
culture); resulting in a
shift to payment systems that focus on an individual’s
contribution to profitability and
performance and employment strategies that reward individual
performance (Storey,
2007).
During the 1980s and 1990s in both the USA and UK a number
of different HRM
models were developed that represent the various perspectives
and encompass both
hard and soft approaches to HRM and these will now be briefly
discussed (Beer et al.
1984, Fombrum et al., 1984; Guest, 1987, Hendry and
Pettigrew, 1990).
The Harvard model (Beer et al. 1984) presents a “map of HRM
territory” that
emphasises communication, teamwork, and the utilization of

individual talents and
advocates a soft HRM approach (Pinnington and Edwards,
2000). This model proposes
that HRM policy choices are determined by a combination of
stakeholder interests and
situational factors resulting in: HRM policy choices and human
resource outcomes that
have long term consequences. Beardwell et al. (2004) suggest
that the Harvard model
recognises the legitimate interests of various groups and this is
translated into a
human resource strategy. A number of criticisms have been
leveled at the model.
Sisson and Timperley (1994, p. 163) observe that that the
elements of strategic choice
has a “strong prescriptive” overtone and the model suggests that
there is in effect one
preferred and superior set of HR policy choices.
In contrast, the Michigan model (Fombrum et al., 1984) presents
a hard approach to
HRM and introduces the concept of strategic human resource
management (Storey,
1992). In this model, HRM policies are linked to the formation
and implementation of
strategic and corporate objectives and the needs of the
organisation are paramount
(Pinnington and Edwards, 2000). The Michigan model is
presented as a triangle that
represents both the external and internal factors of HRM and a
tight fit between human
resource strategy and business strategy (Beardwell et al., 2004).
The internal factors
revolve around the firm and comprise of the mission and
strategies, organisational
structure and HRM, these respond to the external economic,

political and cultural
forces.
In the UK a number of HRM models have also been developed
(Guest, 1987; Hendry
and Pettigrew, 1990; Storey, 1992). Guest’s (1987) model
included a set of interrelated
factors and includes: “strategic integration, high quality,
flexibility and high
commitment” necessary for creating an effective organisation.
The premise
underpinning this approach is the link between HRM aims,
policies and outcomes.
The Practice of HRM
Wood and Wall (2002) argue that the practice of HRM is
comprised of a range of
organizational activities that focus on recruitment and the
development and
Human resource
management
performance
147
management of employees. Wall and Wood (2005, p. 430)
outline HRM practices that
emphasize or include the following:sophisticated selection
methods, appraisal,
training, teamwork, communications, empowerment,
performance related pay and
employment security. Collectively, these are deemed to
contribute to skill and

knowledge base within the organization, and to the employees’
willingness to deploy
their learning to the benefit of the organization. Interest in
HRM was stimulated by a
number of developments (Blyton and Morris, 1992). In the USA
a combination of
increasing competitive markets, the introduction of Japanese
work systems, declining
unionization in the USA private sector and the limited power of
personnel management
in individual organizations encouraged the development of
HRM (Beaumont, 1992).
Similar conditions prevailed in the UK, but also included the
recession of the 1980s, the
loss of competitiveness and the introduction of new technology,
that encouraged the
introduction of HRM (Blyton and Morris, 1992; Beaumont,
1992). Hendry and Pettigrew
(1990, p. 54) observed:
The political climate of Thatcherism, heralded a new legitimacy
for entrepreneurial and anti-
legislation which encouraged firms to introduce new labour
practices and to re-order
collective barraging arrangements.
In contrast, Blyton and Morris (1992, p. 119) are skeptical of
the extent to which the UK
moved from short-term defensive flexibility strategies and
engaged more fully in long
term developments implicit in the ideas that underpin strategic
HRM. Sisson (1994, p. 7)
observes that the prescriptions offered to manage people are
based on a number of
features that include functional flexibility, team working but
have “the principal aim of

developing a highly committed and adaptable workforce willing
to learn new skills and
tasks”.
The various HRM models also reflected the two dimensions of
“hard” and “soft”
HRM. Storey (1992, p. 29) provides a model of two dimensions
of HRM hard and soft
the former represents a manpower planning approach, the latter
a HRM and defines
them as:
The hard version emphasises the quantitative, calculative and
business-strategic aspects of
managing the headcounts resource in as “rational” way as for
any other economic factor, By
contrast the “soft” version traces its roots to the human-
relations school: it emphasises
communication, motivation and leadership.
Blyton and Morris (1992, p. 4) observe that the Harvard model
is associated with the
developmental humanism; in contrast to the Michigan school
(Fombrun et al., 1984) is
utilitarian- instrumentalism. In the UK the distinction is made
between “soft” and
“hard” HRM, with human resources emphasized in the former
and management in the
latter. “Soft” HRM is seen as a method of “releasing untapped
reserves of human
resourcefulness by increasing commitment, participation, and
involvement, the notion
of ‘developmental humanism’” (Legge, 1995, p. 66). In contrast
“hard” HRM is a method
of maximizing economic returns from labour resources by
integrating HRM into

business strategy and based on “utilitarian instrumentalism”
(Blyton and Morris, 1992;
Keenoy, 1990). Blyton and Morris (1992) suggest that the
differences between long and
short term forms of flexibility are paralleled in the soft and hard
distinctions of HRM.
Soft HRM emphasises the long term maximization of human
potential, whilst hard
HRM focuses on the short-term control of labour resources.
Clarke and Newman (1997)
observe that soft HRM stresses commitment building and the
empowerment of staff
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through the utilization of affective management practices, with
emphasis placed on
participation and involvement. This approach ensures that
committed employees will
not only be prepared to work flexibly, but want to succeed
(Storey, 1995). However,
Keenoy and Anthony (1992) challenges this assumption and
contends that flexibility
has resulted in “deskilling is one of the consequences of
managerial efforts to increase
control over work and has also had the effect of minimizing the
potential for employee
involvement and commitment”.
Sisson (1994) suggests that one of the clearest explanations of
hard HRM is

contained in Burawoy’s (1985) examination of management
behaviour. This analysis
contends that HRM does not replace simple, technical or
bureaucratic controls of
Taylorist organisations, rather new controls have been
implemented in the form of
surveillance (Sewell and Wilkinson, 1992). Bach and Sisson
(2000, p. 14) reflecting on
HRM observe “that there is growing concern that hard HRM
was being wrapped in the
language of the soft version as a means to manipulate and
control the workforce”.
Stiles et al. (1997) support this view and observe:
That the rhetoric adopted by the companies frequently embraces
the tenets of soft,
commitment model while the reality experienced by employees
is more concerned with
strategic control, similar to the hard model.
The measure of performance without humans?
One key area of concern is the definitions and limitations of
performance used in
evaluation. Current measures of performance are largely
determined by financial
performance and productivity, usually within a highly
managerialist perspective
(Guest, 1997). However, this approach neglects the role and
contribution of employees
in achieving organizational performance and fails to consider
how employees’ perceive
HR practices (Guest, 1999). Rogers and Wright (1999) reviewed
29 empirical studies
containing 80 observations and tested the links between HRM
and organizational
performance. The authors reported three measures related to HR

issues, 34 measures
related to organizations, 24 related to accounting and 19 to
financial market outcomes
(see Table I).
Most US studies on HRM and performance use large qualitative
datasets and
statistical associations (e.g. Becker and Gerhart, 1996; Huselid,
1995; Huselid et al.,
1997; Ichionowski et al., 1997; McDuffie, 1995; Capelli and
Neumark, 2001; Richard and
Johnson, 2001: Batt, 2002; Wright et al., 2003; Wright et al.,
2005). In the UK studies
have also included statistical measures (e.g. Guest, 1997;
Patterson et al., 1997; Wood
and de Menezes, 1998; Hoque, 1999; Guest et al., 2003: Way,
2002).
What has differentiated testing whether HR practices improve
organisational
performance is if the evidence and links with causation between
statistical studies are
1. Human resources Employee turnover
2. Organizational Productivity, quality, customer satisfaction
3. Financial accounting Return on assets
4. Financial markets Differential between market and book
value of firm’s assets
Source: Rogers and Wright (1999)
Table I.
Review of performance
measures in 29 empirical
studies on HRM and

performance
Human resource
management
performance
149
the measures or factors that can be correlated and tested for
statistical associations
between HR practices and organizational performance. These
approaches to testing
causality between HRM practices and performance will be
evaluated using different
methods of research design to determine evidence then the
current evidence of if there
are an exact forms or techniques of HRM practices that
contribute to organizational
performance. The evidence will then examining some HRM
agendas that influence the
research and will examine the politics of non-managerialist
approaches before finally
analysing the need to demonstrate such research to gain
influence and credibility in the
politics of management functions.
The link between HRM and performance is examined using
three main schools of
thought titled “best practice”, “best fit” and “configurational”
fit. The first is the “best
practice” test which is the hypothetical links of a set of
techniques/practices known as
“universalistic prescriptive” and “best fit” (contingency) models

(Storey, 2007, p. 14).
Testing the “universalistic prescriptive” school has used
evidence in the USA (Delaney
and Huselid, 1996; Huselid (1995) and Huselid et al. (1997).
One group of UK
researchers used a longitudinal study of people management
practices to examine
improved company performance compared to investment in
research and
development, focus on quality or even business strategy
(Patterson et al., 1997).
Wider UK evidence on “best fit” confirmed that use of “new
management practices”
such as the improving workplace climate, improving job
satisfaction and employee
commitment plus job security can effect organisational
performance. Practices used to
increase workplace commitment in the UK private sector can be
found in Table II
(Cully et al., 1999). What is clear is that the terms “high
commitment” and “high
performance” work practices have been used interchangeably.
The second thesis on HRM and performance causation is the
practices of
“contingency/best fit”. This argues there is a link between
business strategy and
different approaches to HRM). However studies of UK
workplace performance found
(see Table II) evidence that UK HRM practices in the 1990s
focused on cost
minimization practices, using low pay, disposable labour and
outsourcing rather than a
development of a high skilled, co-operative and mutual gains
partnership with their
workforce (Kochan and Osterman, 1994; Bach and Sisson,

2000).
Financial
performance
Labour
productivity
Climate of
employee
relations
Largest group has:
Personality testing U
Performance tests U
Formal off the job training for most employees U U
Regular appraisals U U U
Fully autonomous/semi autonomous teams U U
Guaranteed job security U U
Workforce employees participate in problem solving groups U
U U
Two or more family friendly practices or special leave schemes
U U
Source: Adapted from Cully et al. (1999, Table 12.5, p. 285)
Table II.
Measures of workplace
performance in UK by
high commitment
practices
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The final thesis argues that in addition to universalistic and
contingency/best fit there
is a “configurational” perspective that are contingent to the
situation (e.g. Delery and
Doty, 1996). The question is how do these approaches test HR
practices and causality
of increased performance?
Approaches to testing causality of HRM practices and
performance
This discussion will evaluate and critically appraise methods of
research design to
determine whether there is evidence that an exact forms or
techniques of HRM
practices contribute to improve organizational performance.
Firstly, this discussion
will evaluate the research methodologies and studies that test
causality of HRM and if
it increases performance.
The majority of the quantitative US and European Union
studies, particularly in the
UK, use surveys and are rarely longitudinal. The issues also
evaluate if there is
causality that HRM policies and techniques specifically produce
positive outcomes.
There are specific methodological approaches that attempt to
establish measureable
and linear causal relationships. These Legge (2001, p. 31)
describes as “beloved of
positivists”. However there are two contemporary literature
reviews that attempt to
examine the HR performance relationship and adopt a critical

approach to the testing
of causality of HR techniques to high performance. Firstly, the
evidence of Wall and
Wood (2005) and in contrast, the evidence of Wright et al.
(2005). What is important to
consider is the inter-related linkages in the literature reviews
and the omissions in
evidence between the two studies. Wall and Wood (2005) use
their choice of 25 research
studies on causality of HRM measures and performance in
reputable refereed journals
excluding books and reports (see Table III).
What is particularly important is the breadth of both authors in
reviewing the HR
performance literature methodology. Wall and Wood (2005) in
their evaluation of 25
empirical studies suggest caution on the evidence that HR
practices do have a positive
effect on performance. What is important to note is that the 25
studies have rather
small organizational sample sizes, with 18 organizations
employing less than 300
employees in 25 of the studies and less than 100 employees in
nine studies (Wall and
Wood, 2005, p. 435). The authors argue that there is a wide
diversity of 13 particular
practices but the majority (20) of the studies used single
respondents and respondents
describing their own context of the organization. Wall and
Wood (2005, p. 441) argue
that, “Measurement of the dependent (performance) minimally
should come from a
different source from that used to measure HRM practices and
would be objective”.
The methodological consequences of managers self ratings are

important to note
(Huselid and Becker, 1996). The investigation potential
consequences of both random
and systematic measurement error in research on HR and firm
performance has been
identified by Gerhart et al. (2000) and they argue for greater
attention to measurement
error and construct validity issues. This was developed in
evidence by Wright et al.
(2005) and Wood and Wall (2002) who both argue that current
evidence suggests a
positive relationship between HR and performance. Wright et al.
highlight that “little
or any research has utilized research designs to test the
hypothesis that employing
progressive HRM systems actually results in higher
organizational performance in a
causal sense” (Wright et al., 2005, p. 410).
On research design Wall and Wood’s examination found 21 of
25 studies were cross
sectional studies providing weak grounds for causal inference,
whilst 17 of the 21 studies
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151
“involve a relationship between current HRM and prior
performance” (Wall and Wood,
2005, p. 443). Wright et al. (2005, p. 412) concurs with Wall
and Wood’s comments on

predictive causality. In their review of 68 studies, Wright et al.
(2005) criticize the
over-reliance on a singular research design which measures HR
performance after the
performance period and predicts past performance. This is the
case in the majority of
studies (71 per cent). This analysis of most evidence and data
on HR and performance
used a single data collection with the respondent providing data
on both the assessment
of their HR performance and their firm’s information. The
second most popular design (7
per cent) asked respondents to retrospectively recall HR
practices before the performance
data period which could lead to inaccurate recall. The third
category of studies (6 per
cent) used recent year end data with HR performance with a
matter of months to and
during a similar period of measures or concurrent analysis.
Finally 12 per cent of the
studies explored if assessment of HR practices related to
subsequent performance over
an extended time period of data over a period of 2-3 years.
The authors argued that the strongest research study on causal
and predictive
causality of HR practices was used in ten of the 68 reported
studies. Few of the studies
are tested for reverse causal nature of the relationships which
fail to evaluate the
measure of design that measures performance after using the HR
practice. Testing for
spurious relationships are also critical if there were co-
variation. Wall and Wood (2005,
Wall and Wood (2005) Wright et al. (2005)

1. Number of studies 25 empirical studies 68 Refereed empirical
studies
1994-2003 in reputable
highly citations journals
1994-2003 and one applied
longitudinal study of 45
businesses in large food
corporation
2. HR/performance All report at least one
relationship
All report at least one significant
relationship
3. Studies of single HR
Practice (e.g. training, pay)
Excluded Excluded
4. Performance Economic (productivity) Profitability
Affective and organizational
commitment
Operational (productivity, quality,
shrinkage, workers compensation)
Financial performance (expenses,
profit) measures organizational
commitment
5. Comparative omission
between studies
Guest and Hoque (1994); Koch and
McGrath (1996), Wood and de Menezes

(1998), Hoque (1999), Patterson et al.
(2004)
6. Methodological
comparison
Yes For selected cases
Sources: Wall and Wood (2005); Wright et al. (2005)
Table III.
Comparison with studies
on the HR-performance
relationship
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p. 450) suggest in their examination of 25 studies, control for
third factors is used in 23
of their selected studies and the major studies use multiple HR
measures performance
indicators. They argue tests for findings were statistically
significant at p , 0.05 (that
is an analysis of variance significant difference at less than 5
percent) and there were
few any interactions in tests 12 of the 25 studies with a wide
variation in interactions
(Wall and Wood, 2005, p. 452). There is no examination of the
relative effects of specific
HR practices with 15 of the 25 studies making it problematic to
ascertain that HR

systems are linked to performance. The solutions to lack of
robust evidence on
causation of HR practices leading to enhanced performance.
Wall and Wood (2005,
p. 456) recommend the solutions of enhanced research design
can be resolved by
avoiding an-over reliance on single source measures of HRM
practices, increasing
sampling of larger samples with higher response rates and the
use of longitudinal
studies with independent audit of introduction of specific HR
practices and measures of
their effects on performance.
Wright develops this challenge by examining a study using
causality between HR
practices and affective commitment and operational and
financial measures (see Table II).
The data was collection from 45 self contained units in a single
US enterprise between
1998-2000. The data also used employees surveys in each job
group from a business unit.
The response rate was collected under the HR Director in
anonymous questionnaires and
resulted in a high response rate of nearly 99.4 per cent with a
total sample of 13,005
respondents. The job profiles of respondents were
merchandising, warehouse workers
and drivers with a total size of 21.6 per cent of all employees
across 62 business units.
One important methodological issue in this design was access to
a single company using
a limited range of questions to respondents. Key questions
included examined HR
practices such as selection, performance pay, training and
participation and included

highly reliable measures that allowed individuals in multiple
job groups to rate their own
employment relationships and the number of individual HR
practices they experienced.
These were tested for reliability and aggregated.
In an attempt to measure affective commitment five statement
items were
aggregated by multiple respondents at business level using half
the employees sample
from scale of 1 (lowest) to 5 (highest). The ANOVA calculated
the respondents as a
significant reliability (at 0.001 level) confirming levels of
agreement that there was high
affective commitment at business unit level. However, Wright et
al. (2005, p. 432) found
a causal relationship between “HR practices impacting on
collective commitment,
operational performance, expenses, and profits were supported
in a predictive sense”.
The results of HR practices linked with operational and
financial measures through
observations, supported earlier evidence that robust HR
practices result in improved
operational and financial performance (Becker and Huselid,
1998; Dyer and Reeves,
1995). Guest et al. (2003) examination of HR practices using
past and parallel
performance data identified concerns that the use of past
performance correlations
were higher than future performance ratings. Both Wright et al.
(2005) and Guest et al.
(2003) contend that investment in HR and performance suggests
a positive cost/benefit
but less than the earlier predicted research of Huselid and
Becker (1996, 2000).

Both Wall and Wood (2005) and Wright et al. (2005)
recommend further use of
longitudinal research as a solution to more robust tests on HR
and causality of
performance and Wright et al. actually designed and test this in
their case. Wright
recommended that extension of sampling business units in a
single corporation could
Human resource
management
performance
153
be developed by testing an enhanced range of organizations
using data analysis and
evaluating how HR practices are causations of improved
performance. The future of
research or as Wall and Wood (2005, p. 457) title “big science”
of enhanced HR
performance research to wider surveys using government,
research councils, and
academics linked to European surveys such as the Work,
Employee Relations Survey
(WERS) or Australian surveys (Morehead et al., 1997). The
critical issue is to maintain
there is an evaluation which tests for the reverse causation
effect. The range of HR
factors measures in Wall and Wood’s (2005) review highlighted
the different factors
used in the 25 studies and argued the broader variation in HR
practices and tests for

causation require more precise practices and in comparison
Wright et al. (2005) tested
nine practices.
The research agenda however on performance measures and
causality may also link
to organizational cases with distinct performance measures that
may be beyond the
current financial performance measures. For example, evidence
on reducing patient
mortality (West et al., 2002) and “strategic fit” to compare
organizational data on staff
turnover, patient complaints on lack of skill, staff grievance,
discipline, stress and staff
injury Bertam et al. (2007). The study of non-profit
organizations such as healthcare still
reported the focus remains focused upon financial activity and
patient satisfaction and
less evaluation of performance measures related to improve
practice in healthcare
organizations. Such limited evaluation may ignore the critical
measures on non-financial
outcomes such as cost-effective outcomes and processes
(Bertam et al., 2007).
In comparison, performance management research in areas such
as accounting
examines performance and control systems. In a review of 120
field studies published
in Accounting, Organizations and Society and Management
Accounting Research
between 1990-2004 examining and emphasizing how
performance elements are
combined (Stringer, 2007). The review by Stringer identified a
framework of elements
of developing performance studies using a framework by Otley

(1999) by budgeting,
transfer pricing, capital expenditure, performance evaluation,
economic valued added,
balanced scorecard and reward systems (Stringer, 2007, p. 94).
This review in
accounting compares in methodological terms to evidence on
Human resource
management. Many of the studies in accounting research use
particular groups such as
accountants and senior management rather than evaluate
independent data. The
evidence also identified few longitudinal studies and lack of
theoretical model building
with a tendency foe description. Similarly to HRM and
performance research, there is
little examination of causality or research design testing of
models. There is an over
emphasis on performance research contrasting performance
management practices in
a single organization (or a range of organizations) using similar
methodological
approaches adapted by Wright et al. (2005) in research on HRM
and performance using
longitudinal data analysis. In conclusion the difficulties in use
of methodologies to test
the causation and contribution of performance are not solely
difficulties encountered
by HRM literature.
Some possible agendas within the politics of non-managerialist
approaches
One critical area within measuring performance is the politics
of human resource
management performance. The discussion by critical writers
(e.g. Keenoy, 1999, p. 15;
Legge, 1995; Wilmott, 1993) highlights the unitaristic approach

that rejects other
perspectives. Guest (1999) argues that neglect of the employee
perspectives on the
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154
introduction of HR policies and the effects on employees are
accepted as positive by
employees. The issue of testing causation and developing links
with HR and
performance are criticized by Legge (2001) who argues that the
practice of HR and
performance has a misplaced conviction on positivist studies.
Secondly, Legge (2001)
argues that the setting of performance standards and audit has
become a twenty-first
century obsession and the rhetoric of HR contributions to
organizational performance
has influenced policy and research agendas.
Thirdly, there is the consensus that the general adoption of
financial performance
measures, ignores the employees perspective. Moreover, it fails
to address the issue of
passive employees who can be manipulated to improve
performance. Finally the use of
evidence based HR performance and its use to promote
consultancy services by global
consultancies have been an influence to promote universalistic
of contingent practices.
A Google search on global HR consultancies on 31 July 2009

highlighted 2,380,000 hits
for consultancy services (Google, 2009). A range of reports by
consultancy services
who publicize services through their research has not been a
recent phenomenon. Guest
(1997) argues that earlier Consultant-led evidence has
contributed to generation of
training and consultancy interventions to improve performance
based on lack of
authoritative evidence based performance initiatives.
The politics of HRM professionals
Any examination of the debate on HRM and performance also
needs to include the
professional/occupational perspective that emphasizes the
existence and strategic
contribution of HRM. This perspective argues that HR research
and practitioners are
also important for providing influence for HR qualified
professionals and the prevailing
influence of the UK professional body, the Chartered Institute
of Personnel and
development (CIPD) in the UK and the US Society for Human
Resource Management
(SHRM). A survey in the 1990s found evidence from the CIPD
(then the IPD) and
examined if active IPD members influenced the debate on
developments in HRM and the
dominate people’s perceptions and influence of HR
practitioner’s thinking (Grant and
Oswick, 1997, p. 191). This evidence confirmed the
professional zeal of the HR
professional to attain power and influence in management by
emphasizing the
professional using HR techniques to improve performance
through the organization. One

particular recent example is by the CIPD Chief executive using
the contribution of HR
contribution to improve hospital performance (Royles, 2009). In
contrast, to the CIPD
with 135,00 individual members, the USA Society of Human
Resource Management
(SHRM) has 236,498 members in 140 countries (Society of
HRM, 2008). The professional
associations representing HRM in the UK and the USA
publishes and promotes
continued evidence for HR contributions to increased
performance with little critical or
generalized application throughout all sectors. This is what
Legge (1978) defined as
“conformist innovation” by advocating social science practice
to resolve performance
issues in organizations. Despite this recommendation evidence
by Guest and King (2004,
p. 13) still found in their research to test HR Directors’ lack of
knowledge of any research
on the contribution of HR performance to their organization.
Conclusion
After evaluating the development of HRM since the 1980s the
differing approaches
to managing people by strategic managers in organizations in
practice has been
Human resource
management
performance
155

more complex. Commentators on HRM have noted changes in
the practices of firms
emphasizing changes from trade union involvement to the
development of
promoting individualized employee commitment. However, the
evidence on
generating individual commitment and development of the
management of
culture, payment systems focusing on individual contribution
and performance
have been highlighted but proved more difficult to test for
improving performance.
What has been identified has been development of employment
strategies which
managers claim to be a critical factor in developing
organizational strategy (Storey,
2007).
Despite the rhetoric that emphasizes HRM as a valued asset and
line managers used
in the critical delivery of HRM how they are used and
contribute to improving
performance has been difficult to evaluate. What has been
critical in this chapter is the
difficulty and current limitations of measures of performance
used in most published
research and studies. Current measures still over-emphasize the
use and measures
relationships of financial performance and productivity and the
managerialist
perspective (Guest, 1997).
The conclusion however will review the issue of consistency,
generalisability, the
critical issue of causality and the hidden agenda of politics in
managerial power and

status between approaches to performance. There are four key
issues to be
addressed.
Firstly, the review of empirical studies has developed into a
wider range of research
studies have little consistent methodological approaches.
Evaluation of the studies and
methodological consistency has been limited to reviews by
Rogers and Wright (1999),
Gerhart et al. (2000), Wall and Wood (2005) and Wright et al.
(2005). All four studies
have been critical of methodological inconsistency of empirical
studies testing links
between HRM and organizational performance. What has been
developed is the large
complex positivistic set of studies including large qualitative
datasets and statistical
associations but with different measures of performance which
are carefully evaluated
by Wall and Wood (2005). Just to compare some of the key
evidence as an illustration,
Huselid (1995) evaluates employee turnover and productivity
whilst Ichionowski et al.
(1997) measure increase in shareholder value. UK studies also
include associated
statistical studies (e.g. Guest, 1997; Wood and de Menezes,
1998; Hoque, 1999; Guest
et al., 2003; Way, 2002). The causal links between HRM and
performance have two
main theses for empirical testing.
Firstly, “best practice” testing the hypothetical links of a set of
techniques/practices
in a universalistic prescriptive may be too difficult to generalize
(Storey, 2007, p. 14).

The association and categorization of performance studies are
unclear. The terms
“high commitment” and “high performance” work practices
have been used
interchangeably without any real associations..
Secondly, linked to this issue of methodological inconsistency
is the difficult issue of
testing causality of HRM practices and performance. From the
review of studies the
majority of the quantitative US studies and EU (and particularly
the UK) use surveys of
organizational studies and use of longitudinal analysis rare. The
evaluation of causality
that HRM policies and techniques specifically produce positive
outcomes has been
inconsistent. It is important to contrast the inter-related
linkages in the literature reviews
and the consistent omissions. Wall and Wood (2005) analysis on
key empirical studies
suggest caution using evidence that HR practices have a
positive effect on performance.
IJPPM
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156
Their caution on universalistic prescriptions for performance
and hypothesis that
employing progressive HRM systems actually results in higher
organizational
performance in a causal sense are supported by Wright et al.
(2005, p. 410).

Causality testing has over-reliance of a singular research design
measuring HR
performance after a performance period whilst predicting past
performance. This
suggests more care in future with research design and causality.
With the increasing
use of singular cases in an organisation is the problem for
generelisability and limits of
the universalistic approach.
In conclusion, to resolve the criticism of positivistic methods to
link causality
between HR and organizational performance, both Wall and
Wood (2005) and Wright
et al. (2005) recommend longitudinal research. These studies
examine causality and
test effects in a more robust statistical manner and can test the
issues of HR causality
and the performance agenda. The research agenda however on
performance measures
and causality may also link to organizational cases with distinct
performance
measures that may be contributions to performance there has
been little evaluation of
the possible agendas within the politics of non-managerialist
approaches. In terms of
HR performance and the inclusion of trade unions using a
collective effect has been
underplayed in the evidence on testing despite the lack of
evidence from employees on
the employee perceptions effects of HR practices on their work
environment. The
testing and lack of employee perspective treats employees as
passive agents and
commodifies employees despite the rhetoric of their importance.

This unitaristic
approach tends to reject other perspectives. Guest identifies the
neglect employee
perspectives on the introduction of HR policies and the effects
of HR policies are rarely
evaluated despite the limited evidence that HR practices are
welcomed as a positive
effect by employees (Guest, 1999).
The evidence may be critical of ignoring employees and their
evaluation of
experiencing HR and developing performance. Perspective by
employers simply
highlight the issue of passive employees who can be
manipulated to improve
performance but also neglect the union effect on performance in
larger
organisations or the argument that unionization could assist in
the improvement
of the employment relationships and is rarely used studies in
employee/employer
climate.
The continuing emphasis and fixation on measuring
performance Legge (2001)
argues means that the setting of performance standards and
audit has become a
twenty-first century obsession and the rhetoric of HR
contributions to organizational
performance has influenced policy and research agendas. The
continued use of best
practice requires benchmarking, testing of processes and
measurement of outcomes.
The politics and influence of the HR performance agenda also
must include the use of
positive evidence to support the agenda and increasing power

for HRM Professions.
What needs to be evaluated is how employees experience and
link their experiences in
areas such as performance management and move away from the
generalisability of
HR practices as a universalistic solution. More complex
external challenges may not
necessarily be profit or financial control. We need to challenge
the Universalistic
solutions for all sectors and the outcomes may not be financial.
A move may be
towards best practice to improve performance in sectors or a
consideration of
contingency rather than the conformity of driving cutting costs
that eventually leads to
reducing quality and commitment.
Human resource
management
performance
157
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About the authors
Peter Prowse is a Senior Lecturer in Human Resource

Management and Employee Relations at
University of Bradford School of Management. His research
interests are public services reform
and management.
Julie Prowse is a Senior Lecturer at University of Bradford
School of Health Studies. Her
research interests include National Health Service reforms and
the implications for employees.
Julie Prowse is the corresponding author and can be contacted
at: [email protected]
IJPPM
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Major Assessment #4
Doctorate in Nursing Practice NURS 8200
Rubric
Article Critique Assignment
Program LO: 1

1: Scholar/Evidence-based Practitioners
DNP Essential: 3
3: Clinical Scholarship and Analytical Methods for Evidence-
Based Practice
(Scroll down for table)
ASSIGNMENT PROMPT
Target
6.6 points
Acceptable
4.6 points
Unacceptable
2.6 point
Score/Level
Article Critique Evaluation
Part 1: Overview of the study
(6.6 points)

Program LO: 1
DNP Essential: 3
Exemplary quality.
Content is of a professional portfolio quality; addresses every
major subsection in the assignment [fully developed overview
of the selected research study] using advanced critical thinking
skills; does not summarize or paraphrase the content of the
selected article, rather demonstrates content mastery using
examples of and/or personalized reflections about the content of
the article; demonstrates an applied level of understanding
through personalized reflections about the content area. Excels
in meeting expectations for graduate level work.
Fully meets expectations for LO 1
Fully meets expectations for Essential 3
Well-developed good quality work.
Content is of a professional portfolio quality; addresses at least
80% of the major subsections in the assignment using adequate
critical thinking skills; includes some summarizing or
paraphrasing of article; demonstration of content mastery using
the selected research article; demonstration of an applied level
of understanding through personalized reflections about the

content area. It fully meets expectations for graduate level
work.
Meets expectations for LO 1
Meets expectations for Essential 3
Superficially developed, unacceptable quality.
Content needs substantial revision for it to be of a professional
portfolio quality; addresses less than 50% of the major
subsections in the assignment using weak critical thinking
skills; consists primarily of a summary of main ideas from the
research article; does not demonstrate an applied level of
understanding. Lags behind expectations for graduate level
work.
Insufficient to meet expectations for LO 1
Insufficient to meet expectations for Essential 3
Part 2: Strengths of the research study
(6.6 points)

Program LO: 1
DNP Essential: 3
Exemplary quality.
major subsection in the assignment, clearly identifying two or

three strengths with support that demonstrates advanced critical
thinking skills; does not summarize or paraphrase the content of
the research article, rather demonstrates content mastery using
examples of and/or personalized reflections about the strengths
of the research study; demonstrates an applied level of
understanding through personalized reflections about the
strengths of the research study. Excels in meeting expectations
for graduate level work.
80% of the major subsections in the assignment, clearly
identifying two or three strengths of the research study, which
are supported using adequate critical thinking skills; includes
some summarizing or paraphrasing of the research article;
demonstration of content mastery using examples of and/or
personalized reflections about the strengths of the research
study; demonstration of an applied level of understanding
through personalized reflections about the strengths of the
research study. It fully meets expectations for graduate level
work.

skills; consists primarily of a summary of strengths of the
research study; does not demonstrate an applied level of
work.
Part 3: Weaknesses of the research study
(6.6 points)

Program LOs: 1
DNP Essential: 3
Exemplary quality.
major subsection in the assignment, clearly identifying two or
three weaknesses with support that demonstrates advanced
critical thinking skills; does not summarize or paraphrase the
content of the research study, rather demonstrates content
mastery using examples of and/or personalized reflections about
the weaknesses of the research study; demonstrates an applied
level of understanding through personalized reflections about
the weaknesses of the research study. Excels in meeting
expectations for graduate level work.
80% of the major subsections in the assignment identifying two
or three weaknesses with support demonstrating adequate

paraphrasing of research study; demonstration of content
the weaknesses of the research study; demonstration of an
applied level of understanding through personalized reflections
about the weaknesses of the research study. It fully meets
skills; consists primarily of a summary of weaknesses of the
research study; does not demonstrate an applied level of
work.
Part 4: Proposed changes to improve the quality of the research
study
(6.6 points)

Program LO: 1
DNP Essential: 3
Exemplary quality.
major subsection in the assignment, fully and clearly describes
changes to improve the quality of the research study using
advanced critical thinking skills; does not summarize or
paraphrase the content of research article, rather demonstrates
content mastery using examples of and/or personalized
reflections about the proposed changes and how they will
improve the quality of the study; demonstrates an applied level
proposed changes. Excels in meeting expectations for graduate
level work.
80% of the major subsections in the assignment using adequate
paraphrasing of the proposed changes to improve the quality of

the research study; demonstration of content mastery using
the research article; demonstration of an applied level of
proposed changes and how they will improve the quality of the
study. It fully meets expectations for graduate level work.
Needs substantial revision to be of a professional portfolio
quality; addresses less than half the major subsections in the
assignment using weak critical thinking skills; consists
primarily of a summary of the proposed changes; does not
demonstrate an applied level of understanding. Lags behind
Part 5: Summary of the implications for nursing practice
(6.6 points)

Program LO: 1
DNP Essential: 3
Exemplary quality.

major subsection in the assignment [summarizing the
implications of the research study for nursing practice] using
advanced critical thinking skills; demonstrates content mastery
using examples of and/or personalized reflections about the
implications for practice; demonstrates an applied level of
content area. Excels in meeting expectations for graduate level
work.
80% of the major subsections in the assignment summarizing
the implications of the research study for nursing practice using
adequate critical thinking skills;; demonstration of content
the implications for practice; demonstration of an applied level
content area. It fully meets expectations for graduate level
work.
Needs substantial revision to be of a professional portfolio
quality; addresses less than half the major subsections in the
assignment using weak critical thinking skills; weak summary
of the implications for practice; does not demonstrate an applied
level of understanding. Lags behind expectations for graduate

level work.
Up to 5 points (20%) may be deducted for errors in grammar
and/or APA style, as described below.
Assignment:
Select one of the four articles listed on the Week 2 Learning
Resources page and referenced below.
· Fouquier, K.F. (2011). The concept of motherhood among

three generations of African American women. Journal of
Nursing Scholarship, 43(2), 145–153.
· Grey, M., Whittemore, R., Jaser, S., Ambrosino, J.,
Lindemann, E., Liberti, L. … Dziura, J. (2009). Effects of
coping skills training in school-age children with Type 1
diabetes. Research in Nursing & Health, 32, 405-418.
· Methey, N.A., Davis-Jackson, J., & Stewart, B.J. (2010).
Effectiveness of an aspiration risk-reduction protocol. Nursing
Research, 59, 18-25.
· Newhouse, R.P., Morlock. L., Pronovost, P., & Breckenridge-
Sproat, S. (2011). Rural hospital nursing: Results of a national
survey of nurse executives. Journal of Nursing Administration,
41(3), 129-137.
In a 5- to 7-page paper written in APA format you will:
· Provide a brief one to two paragraph overview of the study.
· Identify two to three strengths of the study and support your
selection (i.e. why is this a strength)
· Identify two to three weaknesses of the study and support your
selection (i.e. why is this a weakness)
· Note: The strengths and weaknesses should be in relation to:
· Design
· Sampling
· Data collection
· Statistical analysis
· Results and discussion.
· Propose changes to improve the quality of the study
capitalizing on the strengths and improving on the weaknesses
you identified in the study.
· Summarize the implications for nursing practice.
Due by Day 7 of Week 9

Writing (5 points): Up to 5 points (20%) may be deducted for
grammar and APA style errors.
(Total points possible: 25)
Application 1: Article Critique [Major Assessment 4]
DNP graduates are expected to apply research findings and
integrate nursing science into
evidence-based practice. To develop your ability to engage in
this high level of nursing practice,
you will analyze the strengths and weaknesses of a research
study over the next several weeks
using the concepts presented throughout Weeks 1 through 9 of
the course. Your final analysis
will be a 5- to 7-page paper that includes the following:
Brief one to two paragraph overview of the study
Two to three strengths of the study and support for your
selection (i.e. why is this a strength)
Two to three weaknesses of the study and support for your
selection (i.e. why is this a
weakness)
Note: The strengths and weaknesses you identified should be in
relation to design, sampling,
data collection, statistical analysis, results and discussion of the
study
Proposed changes to improve the quality of the study,
capitalizing on the strengths and

improving on the weaknesses identified in the study
Summary of the implications for nursing practice
The purpose of the analysis is to help you develop a deeper
understanding of the research
process, to inspire you to think critically and deeply about
research on a specific topic, and to
strengthen your ability to integrate research findings into
evidence-based nursing practice. This
assignment also gives you practice in analyzing the research
literature, which will support you
when you begin your DNP project. Before you proceed, please
review the rubric for this
assignment, which is located in the Grading section in the left-
hand navigation menu of this
course. Keep in mind that you will be working on your article
critique throughout Weeks 2
through 9 with your critique due by Day 7 of Week 9.
To prepare for this week's assignment complete the following:
Select one of the four research articles cited in this week's
required readings.
Review the various quantitative research designs presented in
the textbook readings and
research articles and discussed in the "Musings: Aligning
Research Question and Methodology"
media.
Consider the research design used in your selected article. Ask
yourself the following questions.
Is the design appropriate for the study? Would a different
design provide better results?
You are not required to submit this assignment this week.
Resources to Use:

Fouquier, K.F. (2011). The concept of motherhood among three
generations of African
American women. Journal of Nursing Scholarship, 43(2), 145–
153. Retrieved from the Walden
Library databases.
Grey, M., Whittemore, R., Jaser, S., Ambrosino, J., Lindemann,
E., Liberti, L., Northrup, V., &
Dziura, J. (2009). Effects of coping skills training in school-age
children with Type 1 diabetes.
Research in Nursing & Health, 32, 405–418. Retrieved from the
Walden Library databases.
Methey, N.A., Davis-Jackson, J., & Stewart, B.J. (2010).
Effectiveness of an aspiration risk-
reduction protocol. Nursing Research, 59, 18–25. Retrieved
from the Walden Library databases.
Newhouse, R.P., Morlock. L., Pronovost, P., & Breckenridge-
Sproat, S. (2011). Rural hospital
nursing: Results of a national survey of nurse executives.
Journal of Nursing Administration,
41(3), 129–137. Retrieved from the Walden Library databases.
The "fit for purpose" HR function
Ashton, Chris;Haffenden, Mike;Lambert, Andrew
Strategic HR Review; Nov/Dec 2004; 4, 1; ProQuest Central
pg. 32

Creating the indispensable HR function
Miranda, Steve
Strategic HR Review; Mar/Apr 2005; 4, 3; ProQuest Central
pg. 32

INTRODUCTION
Connecting human resources
management and knowledge
management
Ivan Svetlik
University of Ljubljana, Ljubljana, Slovenia, and
Eleni Stavrou-Costea
University of Cyprus, Nicosia, Cyprus
Abstract
Purpose – The article seeks to demonstrate the benefits of using
an integrative approach between
human resource management (HRM) and knowledge
management (KM), where one reinforces and
supports the other in enhancing organisational effectiveness and
performance.
Design/methodology/approach – This contribution is a
collection of research articles that explore
how HRM and KM are interrelated and provide empirical
support for such connection.

Findings – The authors firmly believe that the articles of this
issue will not only provide for
interesting and worthwhile reading material, but also set the
stage for enlarging and enriching the
research base on the relationship between HRM and KM.
Research limitations/implications – It is not an exhaustive
analysis of the connections between
HRM and KM; however, it is a very good first step in that
direction. Even though HRM and KM have
much in common, there are few studies that make such a
connection explicit.
Practical implications – The article provides a very useful
source of information and practical
advice on how the connection between the two disciplines can
enhance organisational functioning.
Originality/value – This special issue fulfils a gap in the
existing literature for both academics and
practitioners on the merits of using HRM and KM integratively.
Keywords Human resource management, Knowledge
management
Paper type Literature review
Introduction
In this issue of the International Journal of Manpower we try to
demonstrate the
interface between human resource management (HRM) and
knowledge management
(KM) and the benefits of using an integrative approach between
the two disciplines
having the employee at the centre. While HRM, KM, and
similar disciplines, such as

management of intellectual capital and information
management, address the issues of
increasing the role of knowledge in contemporary organisations
and the economy from
different angles, it is felt that combining these angles into an
integrative approach
could be more fruitful.
This belief has been recently put forward and empirically
verified by various
authors. To illustrate, Scarbrough (2003) found that the
innovation process could be
facilitated if HRM and KM are linked within organisations.
Furthermore, Scholl et al.
(2004) explain that the most effective approach to the
theoretical and empirical issues
of KM would be an interdisciplinary and a multi-disciplinary
one. According to their
The current issue and full text archive of this journal is
available at
Connecting HRM
and KM
197
International Journal of Manpower
Vol. 28 No. 3/4, 2007
pp. 197-206
q Emerald Group Publishing Limited
0143-7720

DOI 10.1108/01437720710755209
research, the most pressing and challenging practical problem
for the understanding
and advancement of KM is to give priority to human factors. In
a similar fashion, Oltra
(2005) criticises academics for not taking rigorous and
systematic steps toward
comprehensive theory building in linking KM and HRM.
Finally, Yahya and Goh
(2002) argue that:
The focus of KM should rightly be placed on humans
themselves, and the impact made by
human resource management on KM practices . . . and that KM
is actually an evolved form of
human resource management . . .
To address the aforementioned arguments, we have organised an
international
conference held in Ljubljana in June 2004 and titled HRM in the
knowledge-based
economy. The main idea of the conference was to explore the
question on how HRM
does, could and should contribute to knowledge-based
organisations and the economy.
The implicit assumption was that HRM and KM should come
closer together. We used
three articles from that conference, for this special issue. In
addition, we recruited four
additional ones through an open call in order to provide a wider
array of studies to this
link between HRM and KM.

These articles are primarily empirical, each focusing on a
different aspect of HRM
and KM. Their conceptualisations, methods and findings
demonstrate the importance
of an interdisciplinary approach. Therefore, before providing an
overview of each
paper, we will first put forward some considerations regarding
each as well as the
interfaces between the two managerial disciplines, HRM and
KM.
Human resource management
Strait forward definitions of human resource management are
difficult to find. A
typical handbook usually defines HRM as the management of
the organisation’s
employees (Scarpello and Ledvinka, 1988, p. 4). Armstrong
(2000) defines HRM as
strategic personnel management emphasising the acquisition,
organisation and
motivation of human resources. Beardwell and Holden (2001,
pp. 9-16) hold that
understanding HRM depends highly on the perspective taken:
HRM could be conceived
as traditional personnel management, as a fusion of personnel
management and
industrial relations, as a resource-based employment
relationship or as a part of
strategic managerial function. With respect to this, HRM
involves managing
employees, their interpersonal relations and relations with the
organisation.
Perhaps the most crucial point about HRM is that people and
their interpersonal

relations become and are treated as resources, something that
could be considered both
good and bad: the negative side is that recourses are often
treated as expendable; we
promote the positive side, that recourses are valuable and
necessary for an
organisation to become exceptional. In line with the resource-
based view (Penrose,
1959) employees with all their capacities become desirable and
real resources for the
organisation if they are to a high degree: valuable and scarce,
inimitable,
non-substitutable and appropriable (Boxall and Purcell, 2003, p.
75). Boxall and
Purcell continue that:
Firms have the possibility of generating human capital
advantage through recruiting and
retaining outstanding people: through “capturing” a stock of
exceptional human talent, latent
with powerful forms of “tacit” knowledge. Organisational
process advantage, on the other
hand, may be understood as a function of historically evolved,
socially complex, causally
IJM
28,3/4
198
ambiguous processes, such as team-based learning and cross-
functional cooperation –
processes which are very difficult to imitate . . . In a nutshell,
“human resource advantage” . . .

can be traced to better people in organisations with better
process (Boxall and Purcell, 2003,
pp. 85-86).
There are two points to remember: first, HRM does not manage
people as such, but
their personal and interpersonal (inter-group, organisational)
characteristics, which
could be considered resources and create organisational
advantages; and second,
human resources are not only brought into the organisation by
means of recruitment
and selection but also developed within the organisation by
investment in their
personal capacities and deployed by nurturing of interpersonal
and inter-group
relations.
Another important point for our discussion is how human
resources are composed;
what is their structure and how it is changing? According to
O’Donnell et al. (2003),
people are evaluated through their competencies, knowledge,
know-how, adaptability,
network connections and experiences. Among these
components, knowledge has
become most accentuated: according to Drucker (1999), the
basic economic resource is
no longer capital, natural resources or labour, but knowledge.
What really
distinguishes work results from each other is the share of
embedded knowledge
(Burton, 1999, p. 4). In their study of the Irish ICT sector
O’Donnell et al. (2003) found
that approximately two thirds of organisational value is
perceived to be composed of

intellectual capital and that over half of this capital stems
directly from people
working, thinking and communicating.
Knowledge management
Unlike human resource management, which is seldom explicitly
defined, a bundle of
definitions of knowledge exist. However, like human resource
management, definitions
of knowledge and how to manage it, are usually incomplete
because they deal with a
rather slippery subject (Winter, 1987). Furthermore, no
universally accepted
foundation for knowledge has yet been developed (Barabas,
1990, p. 61). Perhaps the
most profound distinction in the study of knowledge has been
made between
knowledge as a subjective state in individuals’ minds embedded
in organisations and
communities – constructivist approach (Davenport and Prusak,
1998, p. 5; Lang, 2001),
and knowledge as an objective state of things – objectivist
approach (Spender, 1998).
This distinction coincides to some extent with that made
between tacit and explicit
knowledge (Polanyi, 1966; Nonaka, 2002), soft and hard
knowledge (Hildreth et al.,
1999), background and foreground knowledge (Bhatt, 2001).
The proponents of the second view would argue that knowledge
management is a
conscious strategy of getting the right knowledge to the right
people at the right time
and helping people share and put information into action in
ways that strive to
improve organisational performance (O’Dell and Jackson, 1998,

p. 4). Knowledge is a
commodity to be traded (Gibbons et al., 2000) and needs to be
managed (Dodgson, 2000,
p. 37).
The proponents of the first view rely on the difference between
information and
knowledge. According to Bhatt (2001) knowledge is different
from data and
information. Data are raw facts and when organised they
become information.
Knowledge is meaningful information. They claim that “the
most important parts of
knowledge cannot be handled as a thing for others” (Scholl et
al., 2004). Rooney and
Connecting HRM
and KM
199
Schneider (2005) explain that knowledge is bound to human
consciousness while data,
texts and images are contained in storage media. In a similar
fashion, Kakabadse et al.
(2003) argue that:
KM is not about managing knowledge but about changing entire
business cultures and
strategies of organisations to ones that value learning and
sharing. Although some aspects of
knowledge, such as culture, organisational structure,
communication process and
information can be managed, knowledge itself, arguably, cannot

. . . Hence, one can
manage or support processes of learning rather than managing
knowledge.
Finally, Rooney and Schneider (2005, p. 33) are explicit that
“because knowledge is
sensitive to context and is fallibly enacted, it cannot be
managed”.
The constructivist approach accepts not only individual
knowledge but also for
knowledge that exists in the social context of groups,
organisations and societies
(Yahya and Goh, 2002). While knowledge is created by and
rests in individual
employees, it is also created through social interaction and is
embedded in the social
structure of organisational members (Narasimha, 2000).
According to Davenport and
Prusak (1998) knowledge in organisations often becomes
embedded not only in
documents and repositories, but also in organisational routines,
processes, practices
and norms. As Malhotra (1998) states KM “embodies
organisational processes that
seek synergistic combination of data and information processing
capacity of
information technologies, and the creative and innovative
capacity of human beings”.
This means that the distinction made between knowledge as a
thing and knowledge as
a state of mind cannot be conceived in terms of “either or”.
In our view they complement each other. Objective knowledge
encoded in written,
electronic and other forms has helped enormously in functioning

of the existing
educational systems, which strive for the transfer of knowledge
to the new generations.
A well-structured textbook keeps its value even in a modern
study process. The same
stands for the production systems, which use written plans,
designs, manuals etc.
However, to make encoded knowledge available to individuals
and organisations and
to create additional knowledge on this basis, human touch is
unavoidable. They must
read, listen and speak in order to reach a new level of
comprehension. Only this way a
new piece of knowledge could become encoded.
If knowledge does not exist and cannot be observed and
managed in its pure form,
the concept of knowledge embeddedness deserves special
attention. According to
Blacker (2002, pp. 48-50) knowledge could be embedded in
several ways: embrained in
terms of conceptual skills and cognitive abilities; embodied in
terms of being action
oriented, situational and only partially explicit, linked to
individuals’ senses and
physical abilities; encultured in terms of shared understandings
achieved in the
process of socialisation and acculturation; embedded in
systemic routines that include
relationships between technologies, roles, formal procedures
and emergent routines;
and encoded in terms of information conveyed by signs and
symbols in books,
manuals, codes of practice and electronic media.
Ingrained into the process of KM is the so-called knowledge

cycle. This cycle
integrates knowledge through four main phases, which should
be observed
interactively rather than by a linear approach (OECD, 2001):
the first is knowledge
acquisition, which focuses primarily on searching among
various sources of
information and knowledge, on their selection, and on ways to
bring the existing
knowledge in the possession of individuals and organisations;
the second involves
IJM
28,3/4
200
knowledge creation, which focuses on the development and
increasing bulk of new
knowledge; the third is knowledge transfer, distribution,
dissemination and sharing,
aiming for relevant knowledge to reach relevant individuals,
groups and organisations
as soon as possible; and the fourth entails knowledge utilisation
and application in
various environments, which is the ultimate goal of the
economic organisations and
systems as well as individuals who work for them.
Where HRM and KM meet
If we compare the enumerated characteristics of HRM and KM
as described above, the
following observations could be made: If HRM is about
managing people effectively

and if people’s most valuable resource is knowledge, then HRM
and KM come closely
interrelated. Even more, HRM and KM share common activities
and goals when
creating work units, teams, cross-functional cooperation, as
well as communication
flows and networks inside the organisation and across its
borders.
If we compare the KM cycle with HRM processes, we will find
the various activities
shared between KM and HRM. Knowledge acquisition is about
recruiting outstanding
people and about helping them learn and grow as individuals
and as professionals. It is
also about encouraging employees to participate in professional
networks and
communities of practice that extend beyond organisational
boundaries (Wenger et al.,
2002). Knowledge creation is achieved by creating a supportive
environment, through
requisite HRM, for individuals, groups and teams in order to be
challenged by the
organisational problems, to search for the problems’ solutions
and to innovate. It goes
from the creation of positions and teams, to the provision of
information feedback
flows, to the design of stimulating remuneration and other
systems of encouragement.
It includes also investment in the training and development of
human resources.
Knowledge transfer concerns various forms of learning, the
creation of a knowledge
sharing climate, establishment of training units which assess
and analyse training
needs, provide and evaluate training, and lead towards learning

organisations (Senge,
1994). Finally, knowledge utilisation is about the deployment of
human resources by
means of proper leadership, division of tasks and
responsibilities, remuneration
systems, and performance appraisal.
It would be difficult to find an area where HRM and KM do not
meet. Perhaps one
such area could be management of the encoded knowledge,
although one could argue
that this is not a KM but an information management issue. It
seems, however, that
encoding knowledge and putting it in an explicit form could go
beyond sheer
information management. Furthermore, codification is usually
associated with the
process of abstraction, which should provide for effective
diffusion (Boisot, 2005,
pp. 178-190). Thus, managing knowledge and managing human
resources, even
though not interchangeable concepts, they are certainly highly
inter-related. Teece
(2000) takes this argument a step further, suggesting that KM is
more multifaceted
than HRM because it involves managing intellectual property
rights and the
development and transfer of individual and organisational
know-how. Nevertheless,
knowledge cannot be managed in a void – without people – and
the other way around.
Therefore, the two disciplines are not only inter-related but also
highly interdependent
By this comparison we propose an integrative approach between
KM and HRM, one

that will advance knowledge in both fields as well as improve
organisational
effectiveness. If HRM neglects the requisite management of
knowledge and does not
Connecting HRM
and KM
201
adjust its concepts and practices to the multi-faceted nature of
knowledge, it puts itself
on a side-track. The same stands for KM if it does not focus on
the requisite
management of individuals, their interpersonal relations and
their relations with their
respective organisations. To put it affirmatively:
The focus of KM should rightly be placed on humans
themselves, and the impact made by
human resource management on KM practices . . . The main
tasks of HRM are to monitor,
measure and intervene in construction, embodiment,
dissemination and use of knowledge of
employees (Yahya and Goh, 2002).
Shih and Chiang (2005) have already attempted to provide
empirical support for the
connection among HRM, KM and corporate strategies and we
seek to enrich such
support with similar studies through this special issue.
About the articles
Given the aforementioned discussion and without further due,

we introduce below the
various articles in this special issue (International Journal of
Manpower, Vol. 28 No. 3/4,
2007) that demonstrate the merits of integrating KM and HRM.
The first article, by B.A. Lundvall and P. Nielsen, deals with
the establishment of
“learning organisations” as a central element of knowledge
management – especially
among firms operating in markets where product innovation is
an important
parameter of competition. The authors argue that the wide use
of information extends
the potential for codifying knowledge but at the same time it
makes tacit knowledge
scarcer and it contributes to the formation of “a learning
economy”. They support their
argument with an empirical analysis demonstrating that firms
that introduce several
human resource management practices assumed to characterise
the learning
organisation are more innovative than the average firm. HRM
contributes thus to
knowledge creation.
Following the above is an article on measuring organisational
learning among
employees, by R. Chiva, J. Alegre and R. Lapiedra. In this
article, the authors describe
the development and validation of a diagnostic tool which aims
to capture the
organisational propensity to learn, something which as they
claim is missing from
extant literature. They propose five dimensions that represent
the essential factors that
determine organisational learning capability: experimentation,

risk taking, interaction
with the external environment, dialogue, and participation in
decisions. This tool may
be related to a dynamic training approach applied to
organisations or serve as a
mechanism to facilitate learning, as the five dimensions may
represent a useful target
for organisational change initiatives.
In the third article, N. Zupan and R. Kase examine the structural
positions of line
managers and HR specialists (called “HR actors”) within
relational networks for
creating and sharing knowledge; and explore the implications
for designing and
implementing HR practices in knowledge-intensive firms (KIF).
This is a very
interesting article as it demonstrates that line managers who are
HR actors are
centrally positioned within the knowledge networks examined,
while HR specialists
are not. These results imply that a decentralised approach to
HRM in KIF can be
effective. Furthermore, the study shows that HRM can affect the
process of knowledge
creation and sharing by implementing HR practices through
centrally positioned line
managers.
IJM
28,3/4
202

In line with the aforementioned articles, but shifting gears a bit
towards
organisational competitive advantage, the fifth article of this
issue deals with the
development of a proactive approach to competency modelling
and its application to
facilitate strategic change by supporting communication,
understanding of business
goals and the incorporation of new behaviours, roles and
competencies within the
organisation. M. Vakola, K.E. Soderquist and G.P. Prastacos
base their study on the
central role that competencies have in integrating the different
human resource
management activities into a requisite system and the real need
to translate business
strategy into the people competencies necessary to implement
and support that
strategy at the operational organisational levels. Through a case
study, M. Vakola and
her colleagues have demonstrated that their suggested approach
was successful in
anchoring the competencies in the new organisational strategy,
ensuring focus on
job-related skills, and allowing for significant flexibility while
keeping areas and
competencies generic.
Adding to the richness of this special issue, in the next article
T.J. Chang and S.P.
Yeh explore how knowledge sharing among new product
development members of
high technology Taiwanese firms is positively related to team-
based joint reward
systems and organisational citizenship behaviours. They also
investigate the

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