1. Change and Globalisation: is HRM converging?
PeopleinAid conference:
Strategic HR in a Global Context
7th February 2007
Change and Globalisation:
is HRM converging?
– and what do we do about the answer?
Chris Brewster
Professor of International Human Resource Management
Henley Management College

2. Change and Globalisation: is HRM converging
Change and Globalisation: is HRM converging? – and what do we do about the answer? Programme
Does Globalisation apply to HRM too? Are we becoming more alike in the way we manage people?
Is the impact of HRM on Performance being Globalised? Do different things work in different countries?

3. Convergence vs Divergence (or Stasis)
convergence theories
market-led/US
institutional/European
world vs regional
divergence theories; or stasis
maybe it’s a bit of each…..

4. The Cranet surveys 42 countries (24 in Europe): partner in each
repeating every 3 years
6000+ responses each round
Questionnaire to senior HR; “factual” not perceptual
40 questions (2-44 responses each Q) + 19 demographic questions
Representative, not panel

6. Directional ConvergenceX T N
T I M E

7. Final Convergence E X T N
T I M E

8. Findings on Directional convergence
convergence (increases in)
strategic potential of HR department;
assignment of HRM to line;
HR professionalisation;
employee resourcing;
Individualisation of employee relations
increased information to employees;
contingent compensation systems.
no convergence
staff ratio;
employee development

9. Findings on Final convergence
No final convergence of HR configuration
No final convergence of HR practices

10. Conclusions (i) Evidence of Directional convergence
No evidence of Final convergence
Similar trends do not mean countries are getting more alike in the way they manage their HRM
There is no “one-size-fits-all”

11. What does this mean for performance?
The Cranet survey
Identifying high performers
profit
market share
quality
Identifying HRM practices linked to high performance (self organising maps)

12. Strategic HRM within the European Union
Region 1
Region 2
Region 3

13. Selected states by cluster
Cluster 1: north-west
Austria
Denmark
Finland
Germany
Netherlands
Sweden
Cluster 2: anglo-irish UK
Ireland
Cluster 3:central southern
Belgium
France
Greece
Italy
Portugal
Spain

14. HRM practices linked to performance in Europe
Evaluating HRM
Monitoring and evaluating training effectiveness
Career management
Merit pay
Communication on change (-)

15. Region 1
Region 2
Region 3
Evaluating HRM X
Communication
X (on Strategy)
-X (on Change)
Staffing (internally and RIFs) -X
Profit Sharing
Bonus schemes
Evaluating training

16. Conclusions (ii) Evidence of Directional convergence
No evidence of Final convergence
Similar trends do not mean countries are getting more alike in the way they manage their HRM
There is no “one-size-fits-all”
HR practices linked to high performance also vary with country
Understand HR in the countries in which you operate

17. So, what does this mean for practitioners?
Each country is different (a wider range of countries would have shown more difference); and
What works in HRM is different for each country; but…
We have to ensure good practice, fairness and equity across all countries; so
We should concentrate on the principles, not the systems, processes or procedures.
Can we monitor the outputs of our Human Resource Management?

18. PeopleinAid conference: Strategic HR in a Global Context
7th February 2007
Change and Globalisation: is HRM converging?– and what do we do about the answer?
Thank You!
Chris Brewster
Professor of International Human Resource management
Henley Management College