Abstract:

The purpose of this study is two-fold: to investigate the degree to which the formal structure of the HR organization is reflected in the concrete activities of the HR function; and to explore the extent to which social capital, as a resource, impacts on the actual HR functional activities. The study sought to contribute to our knowledge of HR functional roles in MNCs by taking into account how social capital may operate on the enacting of these roles. Most prior studies have concentrated on HR roles, instead of ascertaining role performance from HR professionals’ actual day-to-day activities. Knowing what HR professionals actually do is the strongest gauge for determining if the function is strategically aligned to serving line needs or not. This study aimed to employ social capital as a tool to conceptualize HR formal roles versus actual activities in an exploratory setting. It was based on a single case study of an MNC subsidiary. A total of 10 interviews were conducted. The finding showed the HR function was highly evaluated for administrative tasks. However, strong callswere made on HR to increase their involvement with a particular focus on activities related to the business support role. There appeared to be a connection between HR social capital and the actual activities of the HR organization. Although strong formal linkages between the HR function and line management were evident, the level of informal relationships was weak between them. This is a slice of case study research in a subsidiary, and therefore the findings may not be generalizable. Further quantitative research is recommended. The practical implication for HR professionals is that careful consideration should be taken in observing how social capital between the HR function and the larger organization adds value.

Keywords: HRM, HR roles, social capital theory, case study

References:

[1]. Adler, N.J. and Bartholomew, S. (1992). Managing globally competent people. Academy of Management Executive6 (3), pp. 52–65.

[2]. Adler, P., & Kwon. S.W. (2000). Social Capital: The Good: The Bad and the Ugly. In Lesser, E.L. (Ed.), Knowledge and Social Capital Foundations and Applications 69-87.

[3]. Adler, P. & Kwon, S. (2002). Social capital: prospects for a new concept. Academy of Management Review, 27, 17–40.

[4]. Balogun, J., Jarzabkowski, P. & Seidl, D. (2007). Strategizing: A Practice Perspective. Human Relations, 60:1, tbd.

[5]. Baron J. & Kreps D. (1999). Strategic Human Resources-Frameworks for General Managers- New York: Wiley.

[6]. Brewster, C. & Larsen, H.H. (1992). Human Resource Management in Europe: Evidence from ten countries. The International Journal of Human Resource Management, 3: 409–433.

[7]. Burt R. S. (1992). Structural Holes. Cambridge, MA: Harvard University Press.

[8]. Burt, R.S. (1997). The contingent value of social capital. Administrative Science Quarterly, 42, 339–365.

[9]. Buyens, D. & De Vos, A. (2001). “Perceptions of the value of the HR function”. Human Resource Management Journal.11: 3, 70-89.

[10]. Caldwell, R. &Storey, J. (2007). The HR function: Integration or fragmentation? Human resource management: A critical text. London: Thomson. 21 38.

[11]. Caldwell, R. (2008). HR business partner competencies models: Re-contextualising effectiveness. Human Resource Management Journal. 18:3, 275-294.

[12]. Easterby-Smith, M., Thorpe, R., &Lowe, A. (2002). Management Research: An Introduction (2^nd edn). London: Sage

[13]. Evans, P., Pucik, V., and Björkman, I. (2010, in press). Global Challenge: International Human Resource Management (2^nd edition), New York: McGraw-Hill.

[14]. Ghauri, P. (2004). Designing and conducting case studies in international business research. In: Handbook of Qualitative Research Methods for International Business, 109-124. Eds R. Marschan-Piekkari and C. Welch. Cheltanham: Edward Elgar Publishing, Ltd.

[15]. Golsorkhi, D., Rouleau L., Seidl D., & Vaara, E. (2010). Cambridge Handbook of Strategy as Practice. Cambridge: Cambridge University Press.

[16]. Gratton, L. and Truss, C. (2003). “The three-dimensional people strategy: putting human resources policies into action”. Academy of Management Executive. 17:3, 74-86.

[17]. Guest, D. & King, Z. (2004). Power, Innovation and Problem-Solving: The Personnel Managers’ Three Steps to Heaven? Journal of Management Studies. 41: 3, 401-423

[18]. Huber, G.P. & Power, D.J. (1985). “Retrospective reports of strategy-level managers: guidelines for increasing their accuracy”. Strategic Management Journal.6, 171-80.

[19]. Jarzabkowski, P. (2002). "Centralised or decentralised? The strategic implications of resource allocation models."Higher Education Quarterly, 56:1, 5-32.

[20]. Lawler, E. & Mohrman, S. (2003). “HR as a strategic partner: what does it take to make it happen?” HR Planning. 26: 15-30.

[21]. Lawler E.E., Boudreau, J. & Mohrman, S.A. (2006). Achieving Strategic Excellence. Stanford: Palo Alto.

[22]. Murphy, G. & Southey, G. (2003). “High performance work practices: perceived determinants of adoption and the role of the HR practitioner”. Personnel Review.32 : 1/2,73-92.

[23]. Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage, Academy of Management Review. 23, 242-266

[24]. Snell, S. (1999). “Social capital and strategic HRM: it’s who you know”. Human Resource Planning, 22: 62-4.

[25]. Sparrow, P., Harris, H., & Brewster, C. (2003). Towards a new model of globalizing HRM. Paper presented at the 7th Conference on International Human Resource Management, University of Limerick, Ireland.

[26]. Storey, J. (1992). Developments in human resource management. Oxford: Blackwell.

[27]. Tsai, W. (2000).“Social capital, strategic relatedness and the formation of intra-organizational linkages”. Strategic Management Journal. 21: 925-39

[28]. Tyson, S., & Fell, A. (1986). Evaluating the personnel function. London: Hutchinson.

[29]. Ulrich, D. (1997). Human Resource Champions – The Next Agenda for Adding Value and Delivering Results. Harvard Business School Press. Boston, MA.

[30]. Ulrich, D., & Brockbank, W. (2005). Role call. People Management. 11:12, 24–28.

[31]. Ulrich, D., Y o u n g e r, J. & Brockbank, W. (2008). The Twenty-First-Century HR. Human Resource Management. 47: 4, 829–850.

[32]. Wright, C. (2008). ‘Reinventing human resource management: business partners, internal consultants and the limits to professionalisation’. Human Relations, 61: 8, 1063–1086.