Manufacturing flexibility and advanced human resource management practices

Abstract

This article analyses the connection between the use of advanced human resource management (HRM) practices, individually and as a system, with manufacturing flexibility. The results show a positive relationship between the implementation of advanced HRM practices and manufacturing flexibility. While most of the advanced HRM practices analysed show higher levels of implementation in flexible firms, no differences are observed in training efforts. Flexible firms are more prone to implement systems of advanced HRM practices.

• flexibility
• manufacturing
• human resource management

Notes

1. A review of the literature on manufacturing flexibility is beyond the scope of this article. For a comprehensive review, see, for example, Beach et al. (2000).

2. A large number of taxonomies of manufacturing flexibility can be found in the literature (e.g. Gupta and Somers 1992, Suarez et al. 1996, Upton 1997, D'souza and Williams 2000, Koste et al. 2004). Although taxonomies are useful, in that they provide general ‘types’ that can be used to distinguish one form of flexibility from another, the use of so many terms, sometimes to designate the same type of flexibility, has generated confusion. Sethi and Sethi (1990), for example, identified over 50 terms for various flexibility types. Koste et al. (2004) claim that, despite the efforts made to address the measurement gap, good, measures that span multiple industries are still lacking. All this hinders a good understanding of manufacturing flexibility. Gerwin (1993) suggested that the lack of full understanding of manufacturing flexibility is inhibiting progress towards the utilisation of flexibility concepts in industry and impeding manufacturing managers from evaluating and changing the flexibility of their operations.

3. The table that shows sample and population distribution by size is available upon request.