Exploring the impact of deregulation on HRM: the case of the Norwegian energy sector

Abstract

The traditional HRM system has been job-based and has reflected a bureaucratic model of organizing work. Such job-based personnel management systems have shown a tendency to break down under deregulation and exposure to competitive market situations. The study reported here suggests that, after the deregulation of the Norwegian energy sector, the industry was forced to change its primary focus from engineering and technical problems to a critical concern for customers, service, operational costs and productivity. In addition, due to increased work interdependence, numerous centralized operational units have developed in the companies. The relevance of operational knowledge was found to increase, together with the establishment of work groups. This also created a shift from a job-related performance management system to a more person-related system. Organization-specific competence was emphasized as well as increased attention to customer interface issues. Market orientation was reflected in the need to introduce pay-for-performance systems. These changes in HRM systems developed on an ad hoc basis. Due to lack of relevant knowledge on the changes occurring and clear management direction HRM adaptation was, however, slow. Implications are highlighted.

Keywords:

• Deregulation
• Human Resource Management
• Job Flexibility
• Job Content