Theme 1: HRM, Skills and Performance
Theme members: Professor Jonathan Payne, Dr Alexandra-Paraskevi Chytiri and Dr Merve Sancak
The theme draws together research projects exploring the complex relationship between work organisation, people management and performance, broadly defined.
Projects use rich, sector-specific primary research, both qualitative and quantitative, to shed light on the factors shaping work organisation, management practice and HR practice in particular - together with their implications for employees and performance.
There is a specific interest in the role of HR practices, skills, the nature of work organisation in the growing service economy, and the changing public sector. Cross-national comparative studies explore the role played by national institutions, sector dynamics and social actors (in particular trade unions and employers’ organisations) in shaping work organisation.
Other projects examine the implementation of performance-related pay in British schools and its impact on teachers. Longitudinal projects explore the so called ‘Holy Grail’ of HRM, the HRM-Performance relationship, across all industries and in different economic cycles, so as to identify the direction of causality in the relationship.
Studies focus also on the response of HRM to crisis situations and mainly to economic crisis. A number of cross-sectional studies explore these issues in the tourism and hospitality industry. Other projects examine whether local skills strategies can help support ‘inclusive growth’.
The research seeks to make recommendations for public policy reforms for economic and social benefit.
Recently completed projects involving Professor Jonathan Payne have explored work organisation and performance in the service economy through an international comparative lens, and the role of local skills strategies in inclusive growth in England.
Project: Work organisation and performance in the service economy: vocational teachers, fitness instructors and café workers in the UK, Norway and France
Jonathan Payne (with Caroline Lloyd, Cardiff University)
Across the developed world, most of us who work now earn our living in the service sector. However, the issue of what kind of service economy is sustainable and desirable, in both economic and social terms, is rarely debated. In recent decades, problems of over-qualification, skills wastage and poor job quality have become increasingly difficult to ignore. This raises important questions as to what kind of service jobs will be on offer to meet the aspirations of a more qualified workforce and what role governments can play in raising the skills and quality of jobs and services. Central to this is the organisation of work in shaping the skill content of jobs and the opportunities available for workers to deploy their skills and capabilities. We therefore need to know more about what shapes work organisation in the service sector and the role played by national institutions, sector dynamics and employer approaches.
The project, in collaboration with Professor Caroline Lloyd (Cardiff University), explores the impact of national and sectoral institutions on work organisation and job quality through a comparison of three service sector jobs (vocational teachers, fitness instructors and café workers) in three European countries (UK, France and Norway). It draws on 245 interviews between 2009 and 2012, with key stakeholders at sectoral level and multiple workplace case studies involving interviews with those doing the job and their direct supervisors and managers. Initial findings were published in a number of journal papers, with the full data from all three sectors and countries providing the basis for a research monograph, Skills in the Age of Over-Qualification: Comparing Service Sector Work in Europe, published in 2016 by Oxford University Press.
More recent outputs from this project include a paper in the European Journal of Industrial Relations exploring the impact of occupational regulation on fitness instructors in the three countries. The paper considers whether licensing or other forms of occupational regulation can be used to support skill development and higher wages lower down the labour market. This is one of the few studies to use cross-national comparison and helps shed light on how outcomes are dependent upon their interaction with other elements of the skill formation system and industrial relations institutions. While licensing offers some beneficial outcomes in the French case, the relationship with other institutions is found to be critical.
A further extension of this project has been to examine the relationship between pay and working time in the café sector. While low-pay is recognised as a problem in many advanced economies, there are also concerns about insecurity in working time and its effect on incomes and job quality. This has made us go back to our data and consider whether, in a sector often seen as synonymous with low-pay and insecurity and noted to be challenging for union organisation and the enforcement of legal regulations, there are different country approaches to pay and working time regulation. What differences exist, do these impact on worker outcomes, and what might be the lessons for public policy?
Recent outputs
Lloyd, C. and Payne, J. (2018) ‘Hard times in latte land: analysing pay and working time in the café industry in France, Norway and the UK’, Economic and Industrial Democracy, online first, 1-23.
Lloyd, C. And Payne, J. (2017) Licensed to skill? The impact of occupational regulation on fitness instructors, European Journal of Industrial Relations, online first.
Lloyd, C. and Payne, J. (2016) Skills in the Age of Over-Qualification: Comparing Service Sector Work in Europe, Oxford: Oxford University Press.
Lloyd, C. and Payne, J. (2013) Changing job roles in the Norwegian and UK fitness industry – in search of national institutional effects, Work, Employment and Society, 27, 1, 3-20.
Lloyd, C, and Payne, J. (2012) Delivering better forms of work organization: Comparing vocational teachers in England, Wales and Norway, Economic and Industrial Democracy, 33, 1, 27-47.
Project: Local skills strategies and inclusive growth in England
Jonathan Payne
Rising income inequality, labour market polarisation, low-wage work and in-work poverty – problems with which the UK has been struggling for several decades - have led to increasing interest in the concept of ‘inclusive growth’, a term of varied definition and understanding. Socially progressive interpretations emphasise the need to shape the economy in ways that benefit all stakeholders through the development of more and better jobs, and improved access for disadvantaged groups. This contrasts with neo-liberal understandings that focus on growth per se, trickle-down economics and moving people off benefits and into work.
Inclusive growth presents a serious challenge to the UK Conservative government and its post-Brexit agenda to build a Britain that ‘works for everyone’. This challenge also applies to local economies in the context of the ‘devolution agenda’ for England that has developed since 2010, with its promise to empower local communities to drive economic growth for the benefit of local people. This promise has been forged in the context of austerity and one of the most centralised countries in the western world. The challenge of making growth inclusive now presents itself to Local Enterprise Partnerships (LEPs) and Combined Authorities. Can they make a difference through the new powers and responsibilities that have been brokered through ‘city-deals’, ‘growth deals’ and ‘devo-deals’, given the constraints of devolution? What kind of policy interventions might they adopt?
Skills often figure prominently as an area of local concern and a focus of activity, amid moves to localise elements of national skills policy, most notably through the devolution of the much-reduced adult skills budget in 2017-18. Critical commentaries on national skills policy over the last three decades have highlighted the limitations of policies focused narrowly on skills supply, and the failure to address problems of weak employer demand for, and usage of, skill. Progress is likely to require a more integrative approach that addresses supply, demand and utilisation, with skills woven into broader initiatives around economic development, business improvement, workplace innovation and job quality. There is the danger that local skills policies simply continue with a supply-driven approach but with vastly scaled down resources and focus narrowly on matching provision to priority growth sectors, while supporting people to move into employment regardless of job quality. A further concern is that economic development initiatives mirror central government’s ‘new industrial strategy’ approach and its preoccupation with elite, high-tech sectors and thereby miss the bulk of the economy where most people work. While skills alone cannot solve the problem of low wage jobs, they might have a role to play as part of more integrative approaches to business improvement and workplace development targeted at low wage, low productivity sectors.
The project explores whether devolution might open opportunities for different strategies to be pursued in relation to (a) skills and (b) economic development/business improvement, and to what extent these elements are being joined up in ways that can help to progress the inclusive growth agenda. How do local actors understand the ‘skills problem’ in relation to ‘inclusive growth’, and what scope exists for new innovative approaches, given current constraints. The project probes the ‘assumptive worlds’ of local actors, drawing on semi-structured interviews with Local Authority economic development and skills leads, LEP officers, and college principals in four areas of the Midlands.
Recent outputs
Payne, J. (2018) ‘LE(a)P in the dark? Devolution, local skills strategies and inclusive growth in England’, Journal of Education and Work, 31(5-6): 489-502.
Project: Human Resource Management and the Organisational Performance Relationship
Dr Alexandra-Paraskevi Chytiri (with Prof. David Guest (King’s College University, UK) and Dr Leda Panayotopoulou (Athens University of Economics and Business, Greece))
There is consistent evidence of an association between human resource management (HRM) and performance. There is a general assumption that it is HR practices that are driving organizational performance. However, most past studies are cross-sectional, limiting the ability to determine causality. There are sound theoretical reasons favouring both the view that an increase in the use of HR practices leads to an increase in performance, but also the view that increased performance will, in turn, lead to an increase in use of HR practices. There is therefore the possibility of a circular relationship. These competing perspectives and their conceptual and empirical bases are outlined in this work. The analysis confirms a need for longitudinal research that allows for the possibility that the causal direction can flow either from HR practices to performance or from performance outcomes to HR practices or may be bilateral. The aim of this project is to present these possibilities within a developed analytical framework and also to present the findings from a longitudinal study that can help to address the question of causality and direction of causality in the relationship.
Three waves of data on HR practices from 140 Greek organizations (in both the manufacturing and services sector) have been collected over a period of 13 years. Performance data (both objective and subjective), including measures of profitability, growth and efficiency have been collected on an annual basis over the 13 year period. A number of control factors, including ownership, size, sector, trade union presence and economic context are taken into account. The study is placed in a non US/UK based context in Southern Europe – namely Greece, considering a different cultural approach compared to the majority of previous studies. The impact they have on the very existence and the strength of the relationship is examined. The study also explores the time gaps between HR practices implementation and HR practices first results.
Outputs
Alexandra-Paraskevi Chytiri, David Guest, Leda Panayotopoulou, “A review of the Human Resource Management practices and Organisational Performance relationship”, (work in progress to be submitted to Human Resource ManagementJournal).
Alexandra-Paraskevi Chytiri, Leda Panayotopoulou, Nancy Papalexandris (2017), “Human Resource Management and Organisational Performance in the 21st century in Greece”, Edited book, Honourable edition (for Professor Oikonomou), University of Piraeus Research Center.
Alexandra-Paraskevi Chytiri, David Guest, Leda Panayotopoulou, “Human Resource Management and Performance-The causal relationship revisited with a longitudinal study”, 10th Dutch HRM Conference, 9-10th November 2017, Nijmegen, Netherlands
Alexandra-Paraskevi Chytiri. “The relationship of Human Resource Management Practices and Organisational Performance: A causality case-A longitudinal approach”, HR Professional Magazine, February 2017.
Alexandra – Paraskevi Chytiri, “Human Resource Management practices and Organisational Performance: A causality relationship – A practical approach”, CRANET Conference, 12th December 2016, Athens, Greece.
Alexandra - Paraskevi Chytiri, L. Panayotopoulou and D. E. Guest, “The impact of a financial crisis on human resource management and performance relationship”, 9th Annual EMAB Conference, 14-16th September 2016, Warsaw, Polland.
Alexandra - Paraskevi Chytiri, D. E. Guest and L. Panayotopoulou,“Human Resource Management and Performance: In a Changing Economic Context”, 9th Biennale/Conference of the Dutch HRM Network, 12-13th November 2015, Utrecht, Holland.
Alexandra-Paraskevi Chytiri, L. Panayotopoulou, N. Papalexandris, “Human Resource Management: Testing the relationship in a longitudinal background”, 11th EIASM Interdisciplinary Workshop on Intangibles Intellectual Capital and Extra Financial Information, 17-18thSeptember 2015, Athens, Greece
Alexandra - Paraskevi Chytiri, D. E. Guest and L. Panayotopoulou,“Human Resource Management and Performance: Exploring the Direction of Causality”,8th Biennale/Conference of the Dutch HRM Network, 14th November 2013, Leuven, Belgium.
Alexandra Paraskevi Chytiri, “HRM practices-organisational performance framework redefined: a circular model representation”, 14thInternational QMOD Conference on Quality and Services Sciences (ICQSS), 29-31stAugust 2011, San Sebastian, Spain.
Alexandra Paraskevi Chytiri, Ebrahim Soltani and Dennis Tourish, “Reverse causality-Is this the case in HRM-performance relationship?”, BAM (British Academy of Management) Conference 2010, 14-16thSeptember 2010, Sheffield, UK.
Alexandra Paraskevi Chytiri, “A review of the HRM practices-performance link – A causal order problem”, 13thInternational QMOD and Toulon-Verona Conference on Quality and Services Sciences (ICQSS), 30th August-1st September 2010, Cottbus, Brandenburg, Germany.
Project: Human Resource Management and the Response to Economic Crisis
Dr Alexandra-Paraskevi Chytiri (with Prof. David Guest (King’s College University, UK) and Dr Leda Panayotopoulou (Athens University of Economics and Business, Greece))
Over the past thirty years, an extensive body of research has confirmed an association between the adoption of more human resource practices and various indicators of organizational performance. While strategic perspectives on human resource management (HRM) take account of the competitive environment, they have not generally considered the wider economic context and impact of economic crisis. The choice of response to economic crisis is likely to be influenced by a range of factors.
In the face of a general, national economic crisis, organizations are inevitably deeply affected as are employees whose jobs may be at risk. In such contexts, human resource management is likely to have a central role to play. There are two major aspects to this role. On the one hand, there is a need to manage staffing issues, perhaps introducing new practices such as management of redundancy. On the other hand, there are choices about what happens to existing HR practices and in what ways they might be strengthened, cut back or even abandoned. These choices and the factors that affect them in the context of national economic crisis have not been a focus of attention to date within HRM research.
The aim of this study is to examine how national economic crisis affects the use of HR practices and to identify the main influences on the organizational response. We develop and test three alternative theoretical perspectives and identify and explore a range of contingent factors that might be expected to influence the response. We then explore these through surveys of organizations conducted in 2008 and 2012 to capture HR policy and practice just prior to and after the main impact of the crisis and to identify the influence of the contingent factors.
The present study, in contrast to the majority of cross-sectional studies in the field, uses a longitudinal design to examine the reaction of organisations concerning the HRM investment in an economic crisis environment. The influence of factors on their decision, such as ownership and sector of operation are also taken into consideration. The association of HRM practices investment with organisational performance results is also examined in the present study.
Outputs
Alexandra-Paraskevi Chytiri, David Guest, Leda Panayotopoulou, “Human Resource Management practices and Organisational Performance in a crisis context – A longitudinal approach”, (work in progress to be submitted to the International Journal of Human Resource Management).
Alexandra-Paraskevi Chytiri, David Guest, Leda Panayotopoulou, “Human Resource Management and the Response to Economic Crisis”, British Academy of Management Conference (BAM), 4-7th September 2017, Warwick University, UK
Project: Human Resource Management in the Tourism and Hospitality Industry
Dr Alexandra-Paraskevi Chytiri (with Dr Fragkiskos Filippaios (University of Kent, UK), Dr Alireza Nazarian (Roehampton University), Prof. Peter Atkinson (Lancaster University))
The present study aims to capture and describe current and future trends in the implementation of recruitment and selection practices in the Greek hotel industry, as well as, attempt a comparison of this implementation between Greek hotel units and foreign hotel units (MNEs) operating in Greece. The study’s objective is to capture differences in the variety of methods and tools used, the way they are implemented and the level of effectiveness in this implementation. It also attempts to identify the impact of organizational factors on the choice of the mix of recruitment and selection methods and tools used. The hereby research also aims to examine the level of transfer of HRM practices from the parent company/hotel headquarters, to the subsidiaries as well as, the factors (in organizational level) influencing the transfer. The final objective is to depict the mostly used and the most effective recruitment and selection practices in the industry and to explain them based on the relevant literature as well as set the basis for future research in the field. The study also aims to depict future trends in the industry regarding the use and effectiveness of recruitment and selection practices (with Dr Fragkiskos Filippaios (University of Kent, UK))
A related study explores the relationship between leadership styles and organisational effectiveness, taking into consideration the impact of national culture. The study explores transformational, transactional and laissez-faire leadership. It focuses on the hospitality industry in Iran. 370 responses have been collected from 86 hotels in the four main Iranian cities, Tehran, Shiraz, Esfahan, Kish. The study aims to explore association and causality in the relationship. Communication, quality and the ability to acquire resources of each hotel, are considered as mediators in the relationship between leadership and organisational effectiveness. (with Dr Alireza Nazarian (Roehampton University), Prof. Peter Atkinson (Lancaster University))
Outputs
Working papers for journal submission for both studies
Project: Skill Formation Systems in Mexico and Turkey
Dr Merve Sancak
This research sits in between international political economy, comparative political economy and economic sociology and aims to understand capitalist societies in the context of globalisation. More specifically, the work is interested in studying the intersections between the global political and economic dynamics and the national institutional structures, and the implications of these interactions for inclusive development. An important project here focuses on the skill formation systems in Mexico and Turkey, and how the coordination structures in global value chains (GVCs) and national institutional arrangements affect domestic firms’ strategies for finding workers with the skills necessary for them. The study has developed a novel ‘multi-level’ framework that links the macro-level studies on GVCs and comparative capitalisms with the micro-level approach of employment systems and human resource management.
Outputs:
Developing skills in developing countries. The case of auto parts suppliers in Mexico and Turkey. Oxford University Press (forthcoming).
Partisan politics of skills in middle-income countries: Insiders, outsiders and the vocational education system of Turkey. Competition & Change. (2020)
When politics gets in the way: domestic coalitions and the making of skill systems, Review of International Political Economy, 25:3, 340-363, , with Isik D. Özel (2018)