Influences on the choice of HR system: the network organization perspective

Abstract

Research into the links between HR and performance has assumed that managers have a high degree of strategic choice in this area. We argue this choice is constrained by members of the network within which the firm operates. Two contrasting firms are examined to discuss how and why strategic choice varies by reference to the resource dependency theory. This discussion leads us to conclude that the links between HR and performance can be understood only in the context of the characteristics of network relationships.

Keywords:

• Human resource management
• performance
• strategic choice
• constraint, networks

Notes

1  The focal firm is the firm in the network that we had access to and researched in.

2  Brief details of these cases are included in the appendix.

3  Our focus here is on the customer service representatives, those employees who are in contact with customers. These make up around 80 per cent of the total employment. Other employees in administrative functions are subject to the HR polices of Contact 24 and are not directly affected by the client.