Comparative Capitalisms and Comparative Human Resource Management Chris Brewster London South Bank University 22 October 2013

Outline The notion of Human Resource Management (HRM) Strategic HRM Some HRM concepts Comparative Capitalisms Comparative HRM Conclusions/ Discussion

Human Resource Management...

Strategic HRM...

Concept 1: Universalist vs Contextual Paradigms the Universalistic paradigm –theory –methodology the Contextual paradigm –theory –methodology other paradigms Brewster, C. (1999)

The Past...Back to the Future?

Comparative HRM: part of the answer… Different countries, different… HRM policies and practices Definitions of HRM Definitions of “good” HRM Stakeholders Explanations Outcomes

Concept 2. Cultural vs Institutional explanations the Institutional explanation the Cultural explanation the meaning of words Brewster, C., (2004)

Explanations (Cultures) Institutions –Law –Politics –Business systems –Structure, history, education systems, labour market, technology, wealth, etc… Varieties of Capitalism

Cultural vs Institutional explanations of differences the Cultural explanation the Institutional explanation –neo-institutionalism; –legal systems; –political systems; –VoC; the meaning of words

neo-institutionalism The power of Isomorphism… Coercive Mimetic Normative To establish efficiency and legitimacy

legal systems Common Law Constitutional Law La Porta et al, various

political systems Majoritarian Proportional Pagano and Vulpin 2005 Left Right Roe (2003)

Varieties of Capitalism Liberal Market Economies Co-ordinated Market Economies Hall and Soskice, 2001 Nordic economies (Flexicurity states) Mediterranean economies Transitional Economies (CEE) Whitley, 1999; Amable, 2003;

Varieties of Capitalism and what about: –Communist/Capitalist states? –Transition states? –African states? –Latin American states? Jackson and Deeg 2006

Concept 3.Globalisation and the impact of MNCs Local organisations Foreign MNCs Local MNCs Farndale, Brewster and Poutsma (2008)

Findings MNCs are different But not very different National recipes still prevail

Concept 4. Convergence and Divergence Convergent pressures: –Globalisation –European Union Kinds of convergence Divergent pressures Mayrhofer, W., Brewster, C., Morley, M. and Ledolter, J. (2011)

Findings on Convergence Common trends in the expertise and centralisation of the department Common trends in practice: recruiting, individualisation, increased information, pay systems No common trends in size of department or in T&D NO EVIDENCE OF FINAL CONVERGENCE

So, what does this mean? Similar trends do not mean countries are getting more alike in the way they manage their HRM Implications for practice: –HRM practices linked to high performance in one country might be useless or detrimental in another; so there is no “one-size-fits-all”; principles not systems and procedures

And so what…? Need to: challenge the assumption that what is good for short-term management requirements is “Good” to be more critical in our research and teaching –Wider range of stakeholders; longer-term thinking “best fit” and not “best practice” more internationally and comparatively aware There’s a “new” agenda – and a lot to do…

Comparative Capitalisms and HRM (if you have been) Thank you for listening… Questions, comments, discussion…?

Example Publications (i) Books: Brewster, C. and Mayrhofer, W. (2012) A Handbook of Research on Comparative Human Resource Management, Cheltenham, Edward Elgar Brewster, C., Carey, L., Dowling, P., Grobler, P., Holland, P. and Warnich, S. (2012) Contemporary Issues in Human Resource Management: Gaining a Competitive Advantage, (4 th edition) Oxford University Press, South Africa, Cape Town Brewster, C. Sparrow, P., Vernon. G. and Houldsworth, L. (2011) International Human Resource Management. (3 rd edition), CIPD, Wimbledon Brewster, C., Mayrhofer, W. and Morley, M., (eds) (2004) Human Resource Management in Europe: Evidence of Convergence? Butterworth Heinemann, London

Example Publications (ii) Articles: Goergen, M., Brewster, C. and Wood, G.T., (2013). The Effects of the National Setting on Employment Practice: the Case of Downsizing International Business Review 22 (6): Brewster, C., Brookes, M., Johnson, P. and Wood, G. (2013) Direct Involvement, Partnership and Setting: A Study in Bounded Diversity International Journal of Human Resource Management Goergen, M., Brewster,C., Wood, G.T. and Wilkinson, A ( 2012) Varieties of capitalism and investments in human capital Industrial Relations 51 (2): Croucher, R., Wood, G., Brewster, C. and Brookes, M.(2012) Employee turnover, HRM and institutional contexts Economic and Industrial Democracy 33 (4) Mayrhofer, W., Brewster, C., Morley, M. and Ledolter, J. (2011) Hearing a Different drummer? Evidence of convergence in European HRM Human Resource Management Review 21 (1): Wood, G.T., Croucher, C., Brewster, C., Collings, G.C. and Brooks, M. (2009) Varieties of Firm: complementarity and bounded diversity. Journal of Economic Issues 43 (1): Farndale, E., Brewster, C. and Poutsma, E. (2008) Coordinated vs. liberal market HRM: the impact of institutionalisation on multinational firms. International Journal of Human Resource Management 19 (11):

Example Publications (iii) Brewster, C., Wood, G. and Brookes, M. (2008) Similarity, Isomorphism or Duality: recent survey evidence on the HRM policies of Multinational Corporations British Journal of Management 19 (4): Farndale, E., Brewster, C. and Poutsma, E. (2008) Coordinated vs. liberal market HRM: the impact of institutionalisation on multinational firms. International Journal of Human Resource Management 19 (11): Brewster, C., Wood, G. and Brookes, M. (2008) Similarity, Isomorphism or Duality: recent survey evidence on the HRM policies of Multinational Corporations British Journal of Management 19 (4): Johnson, P., Wood, G.T., Brookes, M. and Brewster, C. The Rise of Post- bureaucracy:Theorists' Fancy or Organizational Praxis? International Sociology 24 (1): Brewster, C., Wood, G., Brookes, M. and van Ommeren, J. (2006) “What Determines the Size of the HR Function?: a cross-national analysis” Human Resource Management, 45(1):3-21 Brookes, M., Brewster, C. and Wood, G., (2005) “Social Relations, Firms And Societies: A Study Of Institutional Embeddedness” International Sociology, 20(4): Mayrhofer, W. and Brewster, C. (2005) “European Human Resource Management: researching developments over time” Management Revue 16, (1): 36-62