Human Resource Management in Emerging Markets

Originally coined as a term for a grouping of developing countries which that were neither mature market economies nor “Third World” and with earlier linked terminologies, emerging markets reflect an evolving and diverse literature with a series of opportunities, encompassing the purely theoretical through to the methodological and the analytical. This chapter provides an overview examination of such theoretical approaches, indicating where there might be similarities, differences, or advantages to deploying multiple approaches to better understand the complexity and diversity of human resource management in these contexts. Examples of research using these approaches are given. The theoretical approaches include institutional theory, cross-cultural perspectives, emerging market multinational companies internationalization perspectives, the Afro-Asian nexus, resource and social capital perspectives, the postcolonial approach, and an examination of hybrid models. The latter may include similarities, convergence, and the interplay between one or more of these approaches.

Human Resource Management and Industrial Relations in the Latin American Context

With a particular focus on the Mercosur bloc, this chapter examines key features of human resource management (HRM) and industrial relations systems (IRS) in Latin America. Several key themes are explicated in the chapter. The first theme is whether the dissemination of HRM practices in an institutional setting that emphasizes the hierarchical and market characteristics of IRS will also produce some kind of convergence in these practices. The second theme is to what extent the rather different national institutional environments generate similar or different HRM practices. The third theme, relatedly, is whether evidence exists of mimetic influences in the spread of HRM practices. The framework discussed in the chapter could serve as a useful theoretical point of departure for identifying both national and regional contextual influences on HRM and IRS. It may ignite interest in comparative analyses in the Latin American context. Accounts of HRM in the Latin American context, along with comparative analyses of IRS of specific countries in the region, are significantly underrepresented in the literature. Furthering national comparative research on HRM practices of organizations in the Mercosur region could open up new lines of inquiry, in particular, on the likelihood of convergence or divergence.

Human Resource Management in the African Context

This chapter provides a critical overview of the evolving human resource management (HRM) research context, labor market developments, insights regarding cross-cultural diversity, human resource practices, issues pertaining to the efficacy of adoption of Western and East Asian international HRM, and employment relations in African countries. Given the influence of multinational corporations on the diffusion and development of HRM in African countries, issues pertaining to their influence are critically evaluated. Even with the increasing focus on the Chinese–African HRM nexus, studies on African management or HRM are often country specific, occasionally comparative, and variously suggest that HRM practices follow the convergence perspective, “cross-convergence” perspective, or divergence perspectives. There are still unexplored issues relating to African management or HRM, and new findings could reshape the research agenda, HRM policy, and practice. Though often country or regionally focused, there is evidence of increasing research on HRM issues and mergers and acquisitions, impacts of privatization on HRM, knowledge appropriation, emerging market multinational corporation HRM policy and practice, diversity and cross-cultural management, HIV/AIDS policy implementation issues, sustainable development and corporate social responsibility, and impacts of the institutional and regulatory environment on HRM and employment relations.

The Profile of the Human Resource Management Director

The role of the human resource management (HRM) function has significantly evolved since the 1980s. Specifically, the HRM function has become more strategic, with the most senior human resource professional (the HRM director) often being an integral member of the top management team. The profile and competencies of the HRM director, however, are crucial in shaping the strategic role of HRM in organizations. This chapter provides a comprehensive overview of the role of contextual factors related to both external environment (e.g., national culture, industry) and internal environment (e.g., ownership, the role of the HR function, performance, employee turnover) for the profile of the HRM director. Using data from the Cranfield Network on International Human Resource Management study, the chapter demonstrates that significant differences in the profile of an HRM director in terms of education, experience, and gender exist across contexts. This study contributes to the HRM literature by empirically exploring the differences in the profile of the human resource director across contexts and elucidating reasons for these differences.

The Context of Terrorism for Managing People in Multinational Enterprises

A number of research studies have been published in recent years dealing with the implications of terrorism for human resource management (HRM)–related issues, mostly at the individual level. Different theoretical perspectives have been utilized, such as stress theory, social identity theory, and social support theory, and the respective studies have contributed to our knowledge in this important research field. Nonetheless, a comprehensive theoretical approach at the organizational level relevant to HRM in the context of terrorism is lacking. To address this shortcoming, this chapter examines extant literature on the influence of terrorism on HRM-related issues, integrates several theoretical approaches that emerge from this literature, and introduces an HRM terrorism-response theory relevant for companies operating in countries afflicted with terrorism. Avenues for future research are discussed and practical implications are derived.

Human Resource Management in the Postsocialist Region of Central and Eastern Europe

In this chapter, the authors landscape key aspects of the historical and contemporary nature of human resource management in the postsocialist region of central and eastern Europe. The chapter commences with a background discussion of the evolution of human resource management in the region under three key periods, namely, the socialist period, the transition period, and the contemporary period. The chapter then turns to providing an account of a selected number of particular historical and contextual factors that account for some of the commonalities and differences exhibited in contemporary human resource management in the region. Chief among the factors identified are cultural determinants, variations in the control provisions that operated under socialism, the path to gradual Europeanization, the ownership structure in the economy, the shifting fortunes of trade unions, and the levels of managerial competence. Finally, drawing on three waves of Cranet data gathered between 2004/5 and 2014/15, the authors provide a summative account of selected aspects of organizational-level human resource management policy and practice in the region.

Is the Human Resource Management Department Becoming More Strategic?

This chapter focuses on the historical development of the strategic orientation of human resource management (HRM) departments in different regions of the world, providing both a theoretical base and an overview of current practices and trends. By observing data on HRM departments across the globe over more than a decade, the chapter paints a picture of the HRM department’s strategic evolution in its attempt to deliver value to the organization and create sustainable competitive advantage. Analyzing the data to address the question “Is the HRM department becoming more strategic?” yields the answer of a qualified yes. The trends over time and across contexts appear to suggest directional convergence in the HRM department achieving a strategic role. There are, however, differences in the pace at which this is being achieved and even in what the ultimate goal might be, depending on the context in which an organization is operating. Moreover, there is clear evidence of a connection between how advanced an economy is and the extent to which the HRM department can be more strategic. These findings have implications for human resource practitioners and line managers alike in delivering bottom-line value to organizations.

Human Resource Management in the Family Business Context

Family businesses seem to have unique characteristics that make them different from nonfamily firms and, even though this phenomenon is understudied, they seem to differ substantially from nonfamily firms in the ways they handle human resource management (HRM). This chapter focuses on three key theoretical perspectives, namely, the resource-based view of the firm, institutional perspectives, and stakeholder analyses, to advance understanding of HRM in family-owned organizations. First, looking at the direct relationships between strategic HRM and distal competitive outcomes, the family business context seems to fall short compared to the non–family business context. However, when adding moderators, some relationships change, raising questions as to the appropriateness of extant theorizations of competitive advantage across organizational institutional settings. Second, family businesses seem to pay special attention to certain stakeholders when compared to their nonfamily counterparts, creating the need to explicate the reasons behind such emphasis. Third, family businesses seem to be affected by certain institutional constraints and enablers, necessitating their study in greater depth and the reasons behind their effects. Given these results, this chapter proposes a line of research devoted to the study of HRM in family business in its institutional context, also looking at the antecedents and the effects of such practices.

Human Resource Management in a Public-Sector Context

Human resource management (HRM) scholars studying HRM in a public-sector context hold that the public-sector context is distinctive despite decades of reforms oriented on private-sector management principles. Distinctive characteristics include (1) the multiple goals that public organizations serve, making vertical alignment of HRM difficult; (2) the constraints on managerial autonomy resulting from red tape and trade union involvement; and (3) employees’ public service motivation, which is antithetical to performance management. However, there is a lack of evidence on public- versus private-sector differences in the human resource practices that are actually applied. Using Cranet 2014/15 survey, this chapter examines whether public-sector institutional characteristics affect the application of human resource practices as theoretically expected. The results show that, compared to the late 1990s, HRM in public organizations continues to differ in some respects from HRM in private-sector organizations, but not in other respects. The traditional belief that public-sector HRM is not outright aimed at efficiency and effectiveness still holds. The public service ethic and the resilience of collectivized industrial relations likely contribute to this. However, the traditional public-sector HRM orientation on employee well-being is less distinctive, which will likely affect the position of public organizations in the labor market.

Human Resource Development

This chapter provides an overview of global human resource development (HRD) and highlights some of the key contextual challenges driving increased emphasis on HRD investment. It adopts a multilevel and embedded stakeholder approach to consider explanations of HRD from a variety of perspectives. Definitional aspects of learning and development at the organizational level are first introduced, followed by a deeper consideration of who the different HRD stakeholders might be at each level and what their priorities might include. Trends in the macro context for HRD are then discussed before a review of the organizational-level context of HRD is presented. Drawing on data from successive rounds of the Cranet survey (2004/5, 2009/10, and 2014/15), HRD investment across the countries surveyed is presented, followed by a discussion on needs identification, targeted investment, and common evaluation strategies employed. Throughout, it is emphasized that the significance of HRD extends beyond any individual level of analysis and, increasingly, issues concerned with developing individual knowledge and skills are of global significance as organizations and nations strive to develop their competitive human capital base.