Harney: capturing complexity
10 important questions on Harney: capturing complexity
From open system theory, organizations are viewed as
- set of interdependent parts, so that
- movement of one, leads to movement in other
- siginificant: interdependence between internal structures and environment in which it competes
Little big business syndrome
Open system theory of HRM, two important features of organizations
- their system characteristics
- their openness to enivornmental influences
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Objective of Harney's article
HR was found contradictionary in the case study companys
- None had explicit HR strategy (hints the validity of open system)
- But, procedures are documented in manual, and by that desired employee role behaviour.
- So HR planning at times forward-looking, and sometimes reactive as issues emerged (supportive of open system perspective)
Drawing on an open system approach, two theories helps to facilitate the linkage between external influences and HR effects
- institutional theory: depicts pressures that arise from social and economic interrelations among firms, and so, provide a base for HRM.
- Resource dependency: complementory to institutional. Focuses on nature of resource exchanges.
Internal factors for HR in SE
- Size: SE do not have time for HR administration "they dont have time to scratch their ass, never mind all those procedures"
- Management StyleThere can be paternalistic management style: loyalty on staff, has relaxed informal atmosphere, owner is locus of control and decission making. Also involves tight job descriptions.
- Ownership
- Employees
Findings of Harney's research, relations HRM & SE
- HRM differs amongs industries (way more formalized by lawyers for ex.)
- Range of training varied significantly. Training often less structured: 'on the job skills are easy to pick up yourself'
- HRM more informal, ex. 'continuous improvement conversations'. If you formalise somehing, you're dead.
Evidence from case study companies suggests
- Size constraints, and resource limitations clearly had a role of delineating HR decisions
- But, size per se did not determine HRM.
External factors for HRM in SE
- Indeustry sector: Intense competition has sparked introduction of strict job description
- Market structure: Growth and expansion demanded full time HR positions
- Legislation: employment legislation is a burden in terms of time and administration
- Value Chain: Pressure not only from LE, but also social influences to consolidate control
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