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Purpose:Using concepts taught throughout theJ300 Lesson,
Operational Art & Design, you will write an analytical/research
paper on a historical event (your instructor will give you the
historical event).
You will analyze a historical event from the perspective of the
operational art & design concepts and terms from chapter IV, JP
5-0, Joint Planning and/or other appropriate joint doctrinal
publications. You can analyze the entire campaign/operation, a
single battle, or a group of battles from the campaign/operation.
Use the following questions to guide your analysis:
How did country X’s military leaders apply operational art
during the campaign/operation?
How did country X’s military leaders design the
campaign/operation?
How did country X’s military leaders understand the operational
environment?
What problems did country X’s military have to solve?
What approaches did country X’s military use to solve the
problem and achieve the termination criteria or military end
state?
What were the termination criteria and/or military end state?
What were the military objectives?
What effects were established to obtain the military objectives?
What was the adversary/friendly center of gravity and the
associated critical factors?
How did country X’s military attack/defend the
adversary/friendly center of gravity, directly or indirectly?
What decisive points were established?
What lines of operation/effort were established?
What defeat/stability mechanisms were used?
How did country X’s military apply the concepts of
anticipation, operational reach, or culmination?
How were operations arranged? Did country X’s military
consider the factors of simultaneity, depth, timing, and tempo?
Did country X’s military use the tools phases, branches and
sequels, or operational pauses?
Was the campaign/operation design focused on defeating either
adversary forces, functions, or a combination of both?
Was the campaign/operation phased? Did country X’s military
consider numbers, sequence, overlap, or transitions? What
phases of the joint operation model were used?
You do not have to address all the guiding questions, but you
are expected to integrate the operational art & design concepts
and terms from chapter IV, JP 5-0, Joint Planning and/or other
appropriate joint doctrinal publications into your paper. The
majority of the word count must address operational art &
design concepts and terms. This will ensure you understand the
lesson material. Articles from databases such as ProQuest,
EBSCO, Google Scholar, or military schools such as USASMA,
CGSC or the Army War College are the best types of sources
for research and will help ensure you receive a maximum score.
These types of databases will ensure you use scholarly, peer
reviewed articles for your research. Books written about your
historical event are also appropriate for your research.
Assignment Instructions: The paper will be in APA format, a
title page, a reference page, and 5 to 7 pages of content (does
not include the cover and reference pages). You will use Times
New Roman, 12-font, and double-spaced. Do not try to cover
everything. Focus on the factors you consider most important in
analyzing your historical event. You will use a minimum of five
resources for your paper.
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strategicHR
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Strategic HR functions and firm performance:
The moderating effects of high-involvement
work practices
Hyondong Kim & Kang Sung-Choon
Published online: 17 August 2011
# Springer Science+Business Media, LLC 2011
Abstract Although the strategic human resource management
literature has
emphasized the value of the integration of human resource
management into
strategic management, the mechanism through which the
strategic integration of
HR functions contributes to the improvement of firm
performance is relatively
unknown. Assuming that HR strategies cannot be successfully
implemented
without employee support for and commitment to these
strategies, this research
focuses on high-involvement work practices, which allow
employees to
participate in management decisions as potential moderators of
the integration
of HR functions in strategic management and firm performance.
Using a sample
of 203 unionized Korean firms, this research found that the
effects of a
strategic HR function on firm performance were moderated by
high-
involvement work practices such as a pay-for-performance
program, a career-
development program, union participation in company strategy,
and temporary
worker benefits. The results suggest that a strategic HR function
will not be
successful without institutional mechanisms that foster
employee involvement.
Keywords Strategic HR function . HR process . Employee
contribution
and commitment
In recent years, management scholars and practitioners have
increasingly noted the
strategic value of human resources because the acquisition,
development, and
Asia Pac J Manag (2013) 30:91–113
DOI 10.1007/s10490-011-9264-6
Both authors contributed equally to this article.
H. Kim (*)
Department of Management, Dongguk University, 3-26 Pil-
Dong, Chung-gu, Seoul 100-715,
South Korea
e-mail: [email protected]
K. Sung-Choon
SK 613, Graduate School of Business, Seoul National
University, San 56-1, Shillim-Dong,
Kwanak-Ku, Seoul, South Korea
e-mail: [email protected]
retention of human resources are embedded in a firm’s unique
history and culture
and thus provide the firm with an idiosyncratic source of
competitive advantage
(Barney, 1991; Heneman, Ledford, & Gresham, 2000). To
realize the strategic value
of human resources, administrative or operational HR functions
must be altered to
have a strategic orientation (Ulrich, 1997). In a study of 115
subsidiaries of 89
Fortune 500 firms, Martell and Carroll (1995) reported that
between 40 and 69
percent of subsidiaries in the United States had HR functions
that were involved to
some extent in strategic management processes.
The integration of HR functions into strategic management can
proceed through
two phases: strategy formulation and implementation.
Concerning strategy formu-
lation, HR functions should provide insight into the types of
employee knowledge,
skills, and abilities that can be mobilized to create competitive
advantage. In
implementing a strategy, HR functions should organize and
manage HR competen-
cies and behaviors in alignment with the strategy. Prior HR
scholars have exclusively
focused on the integration of HR functions into strategy
formulation. For example,
Wright, McMahan, McCormick, and Sherman (1998) found that
although HR
executives’ involvement in strategic management was not
directly associated with
firm performance, their involvement had a substantial effect
when the firms pursued
a product innovation strategy for which skilled employees were
a critical source of
core competence. Likewise, Welbourne and Cyr (1999) showed
that the involvement
of HR executives had a positive effect on stock prices only in
fast-growing, small
pre-IPO firms. These studies suggest that the involvement of
HR functions in
strategy formulation positively influences firm performance,
particularly when a
firm’s core business requires human capital as a strategic asset.
An appropriate match between human resource management
(HRM) and strategic
choice does not automatically result in effective implementation
(Becker & Huselid,
2006). HR researchers recently noted that weak relationships
between HRM and
firm performance may be attributed to the gap between intended
and implemented
HR strategies (Wright & Nishii, 2005). In many cases, the
knowledge and skills that
are required to implement strategies may reside in non-
managerial employees
(Grant, 1996; Guthrie, 2001). When a firm intends to utilize
existing strategic
resources and/or develop new strategic assets to implement a
planned strategy,
employee acceptance of and commitment to the strategy is
indispensable. Therefore,
our research focuses on high-involvement work practices, which
are intended to
enhance employees’ positive attitudes toward their jobs and
employers, as a potential
moderator in the relationship between a strategic HR function—
which refers to the
degree to which an HR function is integrated into strategy
formulation and
implementation—and firm performance.
This study analyzes the effects of a strategic HR function on
firm performance
using a large-scale survey of Korean firms, whose HR systems
and functions have
changed dramatically since the economic crisis of 1997.
Although Korean firms
traditionally maintained paternalistic internal labor markets in
which employee
seniority and hierarchical control were key principles of HRM,
to survive amid
global competition, these firms have radically transformed their
HR systems to
become more performance oriented (Bae & Lawler, 2000).
Accompanying these
changes in the HR system, Korean firms have also made radical
changes to HR
functions, including administrative expertise and strategic
partners. Thus, Korean
92 H. Kim, K. Sung-Choon
firms provide an appropriate research context to test the effects
of a strategic HR
function on firm performance (Budhwar & Debrah, 2009).
Theory and hypotheses
To achieve effective strategy implementation, HR functions
should encourage
employees to accept strategic requirements and advise them to
commit to strategic
requirements (Ulrich, 1997). High-involvement work practices
that support
employee involvement in the business of the organization
expand employee
discretion (Riordan, Vandenberg, & Richardson, 2005) and
increase employee
commitment by appealing to intrinsic motivations (Bae &
Lawler, 2000). Thus, high-
involvement work practices develop employee competencies and
behaviors that
support strategy implementation and thereby complement a
strategic HR function by
increasing the effectiveness of strategic management.
Lawler (1992) posited that high-involvement work practices
feature four
organizational elements: power, information, knowledge, and
rewards. All employ-
ees within a firm should be given the responsibility and
information necessary for
them to influence decisions regarding the firm’s operations and
performance (Power
& Information). They should also be trained to deploy expertise
based on a solid
understanding of the decision-making processes of the firm
(Knowledge). Finally, all
workers in the firm must participate and share in the returns of
their efforts through
pay and benefit programs (Rewards).
When HR functions implement a new HR strategy, they can
enhance
employees’ acceptance of and commitment to the new HR
strategy by allowing
employees to participate in decision-making processes and by
giving them
ongoing information about the business of the organization.
While worker
participation (or empowerment), as a sub-system of high-
involvement work
practices, can be derived from the CEO or senior managers of
the firm, labor
unions may also support employee participation. Through labor
unions,
employers and employees are willing to share detailed
information about
strategic decisions related to the firm and to cooperate to
enhance firm
performance. Accordingly, labor unions provide important
participation mech-
anisms through which employees share power and information
with the
management of the organization. Career development and
training opportunities
can help employees to acquire the competencies that are
required to implement
a strategic HR function. By aligning personal interests with
company
objectives, a pay-for-performance program motivates workers to
realize the
strategic objectives of the HR function.
Based on Lawler’s (1992) conceptualization of high-
involvement work practices,
the existing literature has focused on regular workers. However,
given the
widespread use of alternative work arrangements (e.g.,
independent contractors
and temporary workers), HR functions cannot implement
strategic decisions
effectively without support from both temporary and regular
workers. Thus, the
development and maintenance of cooperative relationships
among core and
temporary workers is critical for efficient strategy
implementation (Lepak, Taylor,
Tekleb, Marrone, & Cohen, 2007). Accordingly, this study
expands the scope of
Strategic HR functions and firm performance 93
high-involvement work practices by including the management
of temporary
workers in addition to studying the high-involvement practices
of regular workers.
We assume that HR strategic functions will be facilitated when
accompanied by
high-involvement work practices. In the sections that follow, we
explore how each
sub-system of high-involvement work practice will complement
a strategic HR
function to increase firm performance.
Union participation
For a strategic HR function to become more effective, it must
communicate
information about the firm’s strategic decisions and operations.
First, researchers
have recently highlighted the possible discrepancy between
intended and actual HR
strategies during the implementation phase. For example, based
on a case study of
Hewlett-Packard (HP), Truss (2001) found that although the
firm emphasized
training and development programs, fewer than half of its
workers felt that the firm’s
training programs improved their job performance. Further, HP
could reduce the
discrepancy between actual and perceived HR activities by
communicating
information about changes in HR programs to employees.
The cultivation of a shared understanding among employees
regarding HR
processes and systems can also enhance the strategic
contribution of HR. When
HR activities assume a leading role in strategy planning and
implementation,
employees may experience feelings of anxiety about substantial
changes to HR
programs (Truss, 2001; Truss, Gratton, Hope-Hailey, Stiles, &
Zaleska 2002).
Thus, HR should not only encourage feedback about employee
attitudes toward
strategic planning and activities but also inform employees
about the intent and
implications of new programs to alleviate their concerns.
Finally, when a firm launches strategic HR programs, it tends to
place new
expectations on employees. To satisfy their employer’s
demands, employees require
detailed knowledge about their new strategic task
responsibilities and the intended
consequences of new HR activities. The firm must utilize
communication channels
and information-sharing programs that explain strategic HR
programs to employee
groups to ensure these programs’ effectiveness. Hence, research
on strategic HR
functions has consistently emphasized the importance of
communication activities
and the information sharing among employees and executives.
As employee representatives, labor unions provide employees
with institutional
channels to obtain power and information in the organization.
Through labor unions,
employees can exert influence over firm strategies and
operations. Labor unions play
key roles in delivering employee demands and interests to
management and in
ensuring the establishment and implementation of practices that
are compatible with
employee interests. Moreover, labor unions provide employees
with opportunities to
access information regarding business activities and
organizational outcomes. Thus,
labor unions are expected to provide important participatory
opportunities for
employees at Korean workplaces.
The existing literature suggests that labor unions function as
either facilitators or
barriers to workplace operations. Labor-management relations
have traditionally been
perceived as adversarial because labor unions tend to suppress
managerial autonomy
to preserve continued employment and worker welfare.
Specifically, labor unions
94 H. Kim, K. Sung-Choon
negotiate with management to maximize collective outcomes for
unionized groups. To
satisfy the demands of unionized groups, labor unions tend to
hold strong equality
norms in the workplace. Thus, union participation in HR issues,
which directly
influences employees’ status and welfare, may lead to conflicts
with management.
However, recent industrial relations research has also noted that
labor unions often
cooperate with management to support organizational
innovation and success (Boxall &
Macky, 2009; Verma, 2005). For example, Cutcher-Gershenfeld
and Kochan (2004)
showed that the active involvement of labor unions in
workplace strategies supports
workplace innovation. Likewise, Block and Berg (2009)
demonstrated that joint
responsibility between labor unions and management facilitates
the adoption of
innovative work practices that reduce production costs and
improve profitability at
GM plants. These studies suggest that labor unions can provide
productive solutions
and constructive suggestions with respect to workplace
operations. Accordingly, labor
unions can support a firm’s strategic management by mobilizing
employee
participation in strategic decision-making and program
implementation.
From the opposing views of the roles of labor unions present in
the literature, it is
apparent that the effects of union participation may vary with
the type of union
participation. Specifically, labor unions can collaborate with
management to enhance
labor productivity and operational efficiency when they are
involved in the strategic
management of the firm. However, union participation in HR
issues may also lead to
conflicts with management when unions try to suppress
management autonomy to
change employment practices.
Recently, in South Korea, Kim and Bae’s (2005) case study
noted significant
HRM differences between unionized and non-unionized
companies. Although
Samsung SDI and LG Electronics are subsidiaries of Chaebol
group and belong to
the electronics industry, union status significantly determines
the characteristics of
work practices and programs. At Samsung SDI, the employee
participation system
has been realized through a variety of programs, such as quality
meeting, The Six
Sigma program, and employee suggestion system. Employee
participation at
Samsung SDI tends to be restricted around the suggestions and
committees.
Samsung SDI relies on a top-down approach to workplace
management. In contrast,
LG Electronics motivates employee participation through
collective bargaining.
Labor unions have opportunities to participate at the strategic
level, such as
restructuring, investment, and product development. LG
Electronics conducts a
bottom-up approach to workplace management. Kato, Lee, Lee,
and Lee (2005)
reported that adversarial unionized workplaces have less quality
control programs
than harmonized working environments. Labor unions in South
Korea may exert
significant influences over workplace activities and programs,
although it is
endorsed by top management.
Thus, we propose two separate hypotheses regarding the
differential effects of
union participation by reflecting strong bargaining powers in
South Korea workplaces.
Hypothesis 1a Union strategic participation will enhance the
positive effect of a
strategic HR function on firm performance.
Hypothesis 1b Union HR participation will undermine the
positive effect of a
strategic HR function on firm performance.
Strategic HR functions and firm performance 95
Career development and employee training programs
The resource-based view of the firm suggests that a firm’s
unique human assets are a
fundamental source of the firm’s competitiveness (Barney,
1991). To respond to changing
environments and to achieve a sustainable competitive
advantage, a firm must develop
flexible human assets that can quickly adjust to possible
changes in firm strategy (Wright
& Snell, 1998). Career development programs expand
employees’ competencies, thus
providing support for career development. Employee training
programs also provide
opportunities for workers to acquire skills and knowledge that
support task performance.
Through career development and employee training programs,
employees can be
exposed to a broad range of knowledge and perspectives,
making them less inclined to
resist change and more inclined to generate new knowledge and
creative approaches
(Beugelsdijk, 2008). In this respect, extensive career
development and employee training
programs are likely to expand the human resources available for
strategic implementation
and help the firm flexibly align human resources with a variety
of strategic requirements
(Takeuchi, Wakabayashi, & Chen, 2003). Accordingly, as a sub-
system of high-
involvement work practices, career development and employee
training programs are
expected to expand the positive effects of a strategic HR
function on firm performance.
Hypothesis 2 Employee career development and training
programs will enhance the
positive effect of a strategic HR function on firm performance.
Pay-for-performance program
To effectively implement HR strategies, firms must determine a
method to make low-
level employees internalize the intention of these strategies.
One such method is pay-
for-performance programs, which align personal interests with
organizational objectives
by connecting payouts to employee performance. Thus, through
pay-for-performance
programs, HR functions can shape employee behaviors and
attitudes in a manner that is
compatible with the firm’s strategic objectives (Keizer, 2011).
Pay-for-performance
programs also support other elements of high-involvement work
practices, including
union participation, temporary worker management, career
development, and
employee training programs. Without the support of pay-for
performance programs,
these other elements may be unable to fully support strategic
HR because without
incentives, employees may be unwilling to participate in new
programs, collaborate
with temporary workgroups, and master new training and
development. Therefore,
companies must implement pay-for-performance programs as a
critical part of high-
involvement work practices.
Hypothesis 3 A pay-for-performance program will enhance the
positive effect of a
strategic HR function on firm performance
Management of temporary workers
Employment statistics from the Korean Ministry of Labor show
that more than one-
third of all employees are temporary workers (Eun, 2006).
Because Korean labor law
96 H. Kim, K. Sung-Choon
stipulates conditions for the dismissal of permanent workers,
some Korean firms use
temporary workers as an alternative employment mechanism to
control labor costs
and maintain their ability to adapt to changing business
circumstances (Eun, 2006).
In this case, the use of temporary workers may negatively
impact employee
competency and commitment, which strategic HR systems aim
to leverage to
develop organizational competitiveness (Kwon, 2004).
However, researchers have recently noted that temporary
workers can be utilized
as strategic assets. Lepak and Snell (2002) identified different
modes of employment
to examine how companies strategically utilize human capital.
They suggested that
there are two modes of temporary employment: contract and
alliance. Under the
contract mode, firms rely on temporary workers when human
capital is not important
or unique. However, it is sometimes necessary for firms to
employ highly skilled
contractors, that is, when their cost is lower than the labor costs
that would incur
from internal employment. Instead of hiring these workers as
internal employees,
firms form partnerships with temporary workers to utilize
specialized skills and
expertise to produce specific outcomes in a process that is
known as the alliance
mode of temporary employment. Lepak, Takeuchi, and Snell
(2003) also showed
that the use of temporary workers results in improved firm
financial performance
(ROE) when firms make a significant investment in internal
development and
encourage a long-term commitment from core work groups:
contract workers can
buffer core workers from potential risks and enable the firm to
quickly adjust the
amount and expense of human capital. Further, Dyne and Ang
(1998) showed that
temporary workers may have high levels of loyalty and
commitment to organizations
when firms actively invest in temporary workers. Interestingly,
they showed that a
temporary workforce with high levels of organizational
commitment is as
likely to exhibit pro-social behaviors (e.g., organizational
citizenship behavior)
as a permanent workforce. Bidwell (2009) compared the use of
contractors and
regular workers in the information technology departments of
financial
institutions. Managers prefer contractors to be assigned to
positions where
frontline managers’ interests differ from organizational interests
(Bidwell, 2009).
Additionally, Kwon (2004) investigated the use of temporary
workers and its
related effects in 182 South Korean companies. Whereas the
number of
temporary workers negatively impacts company performance,
the institutional-
ization of a temporary-worker management system contributes
to labor
productivity, employee turnover, and profitability. Therefore,
when firms treat
temporary workers as important business partners and support
their career
development, the temporary workforce can serve as a valuable
resource to
improve organizational competitiveness (Felstead & Gallie,
2004).
In summary, temporary workers can provide organizations with
specialized skills
and knowledge that are valuable but unavailable from internal
employment and that
complement the value of regular workers. Thus, the
institutionalization of temporary
worker management should help HR functions to mobilize the
competencies and
cooperation of temporary workers, which in turn support the
implementation of HR
strategies.
Hypothesis 4 The institutionalization of temporary worker
management will
enhance the positive effect of a strategic HR function on firm
performance.
Strategic HR functions and firm performance 97
Methodology
Sample and procedure
Data were collected from the 2005 Workplace Panel Survey
(WPS) conducted by the
Korea Labor Institute (KLI), a government-funded labor policy
group, from June
2005 to November 2005. The objective of the WPS survey was
to understand how
Korean firms manage human resources and to observe
employment relationships in
the workplace. The WPS survey was administered at 359 state
enterprises in the
public sector and 3,916 firms in the private sector, each of
which had over 30
employees. A survey package was mailed to the HR manager,
the industrial relations
manager, and/or the firm’s employee representative responsible
for HRM and labor
relations. Specific questionnaires were designed for each type
of managers such that
HR managers responded to questions about HR programs and
policies, industrial
managers responded to questions about company IR policies,
and employee
representatives responded to questions about labor union
policies. The survey
package included a letter that explained the objectives and
methods of the survey
and its importance. KLI used a variety of methods, including
web-based surveys,
paper-and-pencil questionnaires, and computer-assisted personal
interviews, to
increase the response rate of WPS. Approximately 50 percent of
the total population,
that is, 1,905 firms (1,615 in the private sector and 290 in the
public sector), returned
the survey.
For our study, we selected firms with more than 100 employees
because firms of
this size can be assumed to have systematic HR programs
(Datta, Guthrie, & Wright,
2005). We also eliminated state enterprises from our analysis,
because state
enterprises pursue public interests. HR department in state
enterprises put focus on
compliances with laws and regulations. As state enterprises may
not be consistent
with study purposes, we withdrew state enterprises from the
samples. Because our
study focuses on the moderating effect of union participation on
the relationship
between a strategic HR function and firm performance, we
eliminated non-unionized
firms from the final sample. After deleting the missing
variables, the final sample
included 203 firms.
Measures
Strategic HR function A strategic HR function is defined as the
extent to which HR
roles and responsibilities are integrated into a firm’s strategic
management. HR
managers were asked to rate HR functions in strategic
management on a five-point
Likert scale, with responses ranging from (1) “absolutely” to (5)
“not at all” for the
following items: (1) Are HRM issues closely integrated with the
business strategy of
your firm? (2) Is the HR manager at your firm a major
contributor to your business
strategy? (3) Does the HR manager at your firm substantially
influence the decision-
making process of the CEO? (4) Does your firm exert concrete
efforts to ensure that
HRM is compatible with the business strategy? (5) Do persons
in other divisions in
your firm recognize the HR division as an architect of change
and as a major partner
in business? (6) Does HRM in your firm appropriately support
the achievement of
business strategy objectives? All items were reverse-scaled to
test our hypotheses.
98 H. Kim, K. Sung-Choon
High-involvement work practices Union participation was
measured by asking
industrial relations managers to rate the extent to which their
unions participate in
the decision-making of the firm. Union participation was
assessed in two areas of
management decisions: firm strategy and HRM. We developed
the measures by
referring to previous studies (Deery & Iverson, 2005; Kato et
al., 2005) that assess
the extent to which labor unions are actively involved in a
firm’s strategic and HRM
issues. Specifically, union participation in strategic decisions
was measured with five
items related to management strategy, investment strategy, and
the introduction of
new technologies and new machinery. Union participation in
HRM was measured
with three items that assessed the extent to which a union
participated in HRM
decisions regarding personnel appraisal, compensation, and
promotion systems. All
of the survey items on union participation employed a four-
point Likert scale,
ranging from (1) “the management makes unilateral decisions
without informing the
union” to (4) “decisions are made jointly between labor and
management.” A firm’s
career development programs were measured by the number of
…

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PurposeUsing concepts taught throughout theJ300 Lesson, Operation.docx

  • 1. Purpose:Using concepts taught throughout theJ300 Lesson, Operational Art & Design, you will write an analytical/research paper on a historical event (your instructor will give you the historical event). You will analyze a historical event from the perspective of the operational art & design concepts and terms from chapter IV, JP 5-0, Joint Planning and/or other appropriate joint doctrinal publications. You can analyze the entire campaign/operation, a single battle, or a group of battles from the campaign/operation. Use the following questions to guide your analysis: How did country X’s military leaders apply operational art during the campaign/operation? How did country X’s military leaders design the campaign/operation? How did country X’s military leaders understand the operational environment? What problems did country X’s military have to solve? What approaches did country X’s military use to solve the problem and achieve the termination criteria or military end state? What were the termination criteria and/or military end state? What were the military objectives? What effects were established to obtain the military objectives? What was the adversary/friendly center of gravity and the associated critical factors? How did country X’s military attack/defend the adversary/friendly center of gravity, directly or indirectly? What decisive points were established? What lines of operation/effort were established? What defeat/stability mechanisms were used? How did country X’s military apply the concepts of anticipation, operational reach, or culmination? How were operations arranged? Did country X’s military consider the factors of simultaneity, depth, timing, and tempo?
  • 2. Did country X’s military use the tools phases, branches and sequels, or operational pauses? Was the campaign/operation design focused on defeating either adversary forces, functions, or a combination of both? Was the campaign/operation phased? Did country X’s military consider numbers, sequence, overlap, or transitions? What phases of the joint operation model were used? You do not have to address all the guiding questions, but you are expected to integrate the operational art & design concepts and terms from chapter IV, JP 5-0, Joint Planning and/or other appropriate joint doctrinal publications into your paper. The majority of the word count must address operational art & design concepts and terms. This will ensure you understand the lesson material. Articles from databases such as ProQuest, EBSCO, Google Scholar, or military schools such as USASMA, CGSC or the Army War College are the best types of sources for research and will help ensure you receive a maximum score. These types of databases will ensure you use scholarly, peer reviewed articles for your research. Books written about your historical event are also appropriate for your research. Assignment Instructions: The paper will be in APA format, a title page, a reference page, and 5 to 7 pages of content (does not include the cover and reference pages). You will use Times New Roman, 12-font, and double-spaced. Do not try to cover everything. Focus on the factors you consider most important in analyzing your historical event. You will use a minimum of five resources for your paper. See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/283152033 strategicHR
  • 3. Data · October 2015 CITATIONS 0 READS 2,036 2 authors, including: Some of the authors of this publication are also working on theserelated projects: Self-boss agreements in manager performance appraisals View project HyondongKim Dongguk University 14 PUBLICATIONS 64 CITATIONS SEE PROFILE All content following this page was uploaded by HyondongKim on 25 October 2015. The user has requested enhancement of the downloaded file. https://www.researchgate.net/publication/283152033_strategicH R?enrichId=rgreq-d275f6b7d95216011fb5b5fb73130419-
  • 4. XXX&enrichSource=Y292ZXJQYWdlOzI4MzE1MjAzMztBUzo yODg0ODAzODQwNDUwNTZAMTQ0NTc5MDQ5MTA2NA%3 D%3D&el=1_x_2&_esc=publicationCoverPdf https://www.researchgate.net/publication/283152033_strategicH R?enrichId=rgreq-d275f6b7d95216011fb5b5fb73130419- XXX&enrichSource=Y292ZXJQYWdlOzI4MzE1MjAzMztBUzo yODg0ODAzODQwNDUwNTZAMTQ0NTc5MDQ5MTA2NA%3 D%3D&el=1_x_3&_esc=publicationCoverPdf https://www.researchgate.net/project/Self-boss-agreements-in- manager-performance-appraisals?enrichId=rgreq- d275f6b7d95216011fb5b5fb73130419- XXX&enrichSource=Y292ZXJQYWdlOzI4MzE1MjAzMztBUzo yODg0ODAzODQwNDUwNTZAMTQ0NTc5MDQ5MTA2NA%3 D%3D&el=1_x_9&_esc=publicationCoverPdf https://www.researchgate.net/?enrichId=rgreq- d275f6b7d95216011fb5b5fb73130419- XXX&enrichSource=Y292ZXJQYWdlOzI4MzE1MjAzMztBUzo yODg0ODAzODQwNDUwNTZAMTQ0NTc5MDQ5MTA2NA%3 D%3D&el=1_x_1&_esc=publicationCoverPdf https://www.researchgate.net/profile/Hyondong_Kim?enrichId=r greq-d275f6b7d95216011fb5b5fb73130419- XXX&enrichSource=Y292ZXJQYWdlOzI4MzE1MjAzMztBUzo yODg0ODAzODQwNDUwNTZAMTQ0NTc5MDQ5MTA2NA%3 D%3D&el=1_x_4&_esc=publicationCoverPdf https://www.researchgate.net/profile/Hyondong_Kim?enrichId=r greq-d275f6b7d95216011fb5b5fb73130419- XXX&enrichSource=Y292ZXJQYWdlOzI4MzE1MjAzMztBUzo yODg0ODAzODQwNDUwNTZAMTQ0NTc5MDQ5MTA2NA%3 D%3D&el=1_x_5&_esc=publicationCoverPdf https://www.researchgate.net/institution/Dongguk_University?e nrichId=rgreq-d275f6b7d95216011fb5b5fb73130419- XXX&enrichSource=Y292ZXJQYWdlOzI4MzE1MjAzMztBUzo yODg0ODAzODQwNDUwNTZAMTQ0NTc5MDQ5MTA2NA%3 D%3D&el=1_x_6&_esc=publicationCoverPdf https://www.researchgate.net/profile/Hyondong_Kim?enrichId=r greq-d275f6b7d95216011fb5b5fb73130419-
  • 5. XXX&enrichSource=Y292ZXJQYWdlOzI4MzE1MjAzMztBUzo yODg0ODAzODQwNDUwNTZAMTQ0NTc5MDQ5MTA2NA%3 D%3D&el=1_x_7&_esc=publicationCoverPdf https://www.researchgate.net/profile/Hyondong_Kim?enrichId=r greq-d275f6b7d95216011fb5b5fb73130419- XXX&enrichSource=Y292ZXJQYWdlOzI4MzE1MjAzMztBUzo yODg0ODAzODQwNDUwNTZAMTQ0NTc5MDQ5MTA2NA%3 D%3D&el=1_x_10&_esc=publicationCoverPdf Strategic HR functions and firm performance: The moderating effects of high-involvement work practices Hyondong Kim & Kang Sung-Choon Published online: 17 August 2011 # Springer Science+Business Media, LLC 2011 Abstract Although the strategic human resource management literature has emphasized the value of the integration of human resource management into strategic management, the mechanism through which the strategic integration of HR functions contributes to the improvement of firm performance is relatively unknown. Assuming that HR strategies cannot be successfully implemented without employee support for and commitment to these strategies, this research focuses on high-involvement work practices, which allow employees to participate in management decisions as potential moderators of the integration of HR functions in strategic management and firm performance.
  • 6. Using a sample of 203 unionized Korean firms, this research found that the effects of a strategic HR function on firm performance were moderated by high- involvement work practices such as a pay-for-performance program, a career- development program, union participation in company strategy, and temporary worker benefits. The results suggest that a strategic HR function will not be successful without institutional mechanisms that foster employee involvement. Keywords Strategic HR function . HR process . Employee contribution and commitment In recent years, management scholars and practitioners have increasingly noted the strategic value of human resources because the acquisition, development, and Asia Pac J Manag (2013) 30:91–113 DOI 10.1007/s10490-011-9264-6 Both authors contributed equally to this article. H. Kim (*) Department of Management, Dongguk University, 3-26 Pil- Dong, Chung-gu, Seoul 100-715, South Korea e-mail: [email protected] K. Sung-Choon SK 613, Graduate School of Business, Seoul National University, San 56-1, Shillim-Dong,
  • 7. Kwanak-Ku, Seoul, South Korea e-mail: [email protected] retention of human resources are embedded in a firm’s unique history and culture and thus provide the firm with an idiosyncratic source of competitive advantage (Barney, 1991; Heneman, Ledford, & Gresham, 2000). To realize the strategic value of human resources, administrative or operational HR functions must be altered to have a strategic orientation (Ulrich, 1997). In a study of 115 subsidiaries of 89 Fortune 500 firms, Martell and Carroll (1995) reported that between 40 and 69 percent of subsidiaries in the United States had HR functions that were involved to some extent in strategic management processes. The integration of HR functions into strategic management can proceed through two phases: strategy formulation and implementation. Concerning strategy formu- lation, HR functions should provide insight into the types of employee knowledge, skills, and abilities that can be mobilized to create competitive advantage. In implementing a strategy, HR functions should organize and manage HR competen- cies and behaviors in alignment with the strategy. Prior HR scholars have exclusively focused on the integration of HR functions into strategy formulation. For example, Wright, McMahan, McCormick, and Sherman (1998) found that
  • 8. although HR executives’ involvement in strategic management was not directly associated with firm performance, their involvement had a substantial effect when the firms pursued a product innovation strategy for which skilled employees were a critical source of core competence. Likewise, Welbourne and Cyr (1999) showed that the involvement of HR executives had a positive effect on stock prices only in fast-growing, small pre-IPO firms. These studies suggest that the involvement of HR functions in strategy formulation positively influences firm performance, particularly when a firm’s core business requires human capital as a strategic asset. An appropriate match between human resource management (HRM) and strategic choice does not automatically result in effective implementation (Becker & Huselid, 2006). HR researchers recently noted that weak relationships between HRM and firm performance may be attributed to the gap between intended and implemented HR strategies (Wright & Nishii, 2005). In many cases, the knowledge and skills that are required to implement strategies may reside in non- managerial employees (Grant, 1996; Guthrie, 2001). When a firm intends to utilize existing strategic resources and/or develop new strategic assets to implement a planned strategy, employee acceptance of and commitment to the strategy is indispensable. Therefore, our research focuses on high-involvement work practices, which
  • 9. are intended to enhance employees’ positive attitudes toward their jobs and employers, as a potential moderator in the relationship between a strategic HR function— which refers to the degree to which an HR function is integrated into strategy formulation and implementation—and firm performance. This study analyzes the effects of a strategic HR function on firm performance using a large-scale survey of Korean firms, whose HR systems and functions have changed dramatically since the economic crisis of 1997. Although Korean firms traditionally maintained paternalistic internal labor markets in which employee seniority and hierarchical control were key principles of HRM, to survive amid global competition, these firms have radically transformed their HR systems to become more performance oriented (Bae & Lawler, 2000). Accompanying these changes in the HR system, Korean firms have also made radical changes to HR functions, including administrative expertise and strategic partners. Thus, Korean 92 H. Kim, K. Sung-Choon firms provide an appropriate research context to test the effects of a strategic HR function on firm performance (Budhwar & Debrah, 2009).
  • 10. Theory and hypotheses To achieve effective strategy implementation, HR functions should encourage employees to accept strategic requirements and advise them to commit to strategic requirements (Ulrich, 1997). High-involvement work practices that support employee involvement in the business of the organization expand employee discretion (Riordan, Vandenberg, & Richardson, 2005) and increase employee commitment by appealing to intrinsic motivations (Bae & Lawler, 2000). Thus, high- involvement work practices develop employee competencies and behaviors that support strategy implementation and thereby complement a strategic HR function by increasing the effectiveness of strategic management. Lawler (1992) posited that high-involvement work practices feature four organizational elements: power, information, knowledge, and rewards. All employ- ees within a firm should be given the responsibility and information necessary for them to influence decisions regarding the firm’s operations and performance (Power & Information). They should also be trained to deploy expertise based on a solid understanding of the decision-making processes of the firm (Knowledge). Finally, all workers in the firm must participate and share in the returns of their efforts through pay and benefit programs (Rewards).
  • 11. When HR functions implement a new HR strategy, they can enhance employees’ acceptance of and commitment to the new HR strategy by allowing employees to participate in decision-making processes and by giving them ongoing information about the business of the organization. While worker participation (or empowerment), as a sub-system of high- involvement work practices, can be derived from the CEO or senior managers of the firm, labor unions may also support employee participation. Through labor unions, employers and employees are willing to share detailed information about strategic decisions related to the firm and to cooperate to enhance firm performance. Accordingly, labor unions provide important participation mech- anisms through which employees share power and information with the management of the organization. Career development and training opportunities can help employees to acquire the competencies that are required to implement a strategic HR function. By aligning personal interests with company objectives, a pay-for-performance program motivates workers to realize the strategic objectives of the HR function. Based on Lawler’s (1992) conceptualization of high- involvement work practices, the existing literature has focused on regular workers. However, given the
  • 12. widespread use of alternative work arrangements (e.g., independent contractors and temporary workers), HR functions cannot implement strategic decisions effectively without support from both temporary and regular workers. Thus, the development and maintenance of cooperative relationships among core and temporary workers is critical for efficient strategy implementation (Lepak, Taylor, Tekleb, Marrone, & Cohen, 2007). Accordingly, this study expands the scope of Strategic HR functions and firm performance 93 high-involvement work practices by including the management of temporary workers in addition to studying the high-involvement practices of regular workers. We assume that HR strategic functions will be facilitated when accompanied by high-involvement work practices. In the sections that follow, we explore how each sub-system of high-involvement work practice will complement a strategic HR function to increase firm performance. Union participation For a strategic HR function to become more effective, it must communicate information about the firm’s strategic decisions and operations. First, researchers
  • 13. have recently highlighted the possible discrepancy between intended and actual HR strategies during the implementation phase. For example, based on a case study of Hewlett-Packard (HP), Truss (2001) found that although the firm emphasized training and development programs, fewer than half of its workers felt that the firm’s training programs improved their job performance. Further, HP could reduce the discrepancy between actual and perceived HR activities by communicating information about changes in HR programs to employees. The cultivation of a shared understanding among employees regarding HR processes and systems can also enhance the strategic contribution of HR. When HR activities assume a leading role in strategy planning and implementation, employees may experience feelings of anxiety about substantial changes to HR programs (Truss, 2001; Truss, Gratton, Hope-Hailey, Stiles, & Zaleska 2002). Thus, HR should not only encourage feedback about employee attitudes toward strategic planning and activities but also inform employees about the intent and implications of new programs to alleviate their concerns. Finally, when a firm launches strategic HR programs, it tends to place new expectations on employees. To satisfy their employer’s demands, employees require detailed knowledge about their new strategic task responsibilities and the intended
  • 14. consequences of new HR activities. The firm must utilize communication channels and information-sharing programs that explain strategic HR programs to employee groups to ensure these programs’ effectiveness. Hence, research on strategic HR functions has consistently emphasized the importance of communication activities and the information sharing among employees and executives. As employee representatives, labor unions provide employees with institutional channels to obtain power and information in the organization. Through labor unions, employees can exert influence over firm strategies and operations. Labor unions play key roles in delivering employee demands and interests to management and in ensuring the establishment and implementation of practices that are compatible with employee interests. Moreover, labor unions provide employees with opportunities to access information regarding business activities and organizational outcomes. Thus, labor unions are expected to provide important participatory opportunities for employees at Korean workplaces. The existing literature suggests that labor unions function as either facilitators or barriers to workplace operations. Labor-management relations have traditionally been perceived as adversarial because labor unions tend to suppress managerial autonomy to preserve continued employment and worker welfare. Specifically, labor unions
  • 15. 94 H. Kim, K. Sung-Choon negotiate with management to maximize collective outcomes for unionized groups. To satisfy the demands of unionized groups, labor unions tend to hold strong equality norms in the workplace. Thus, union participation in HR issues, which directly influences employees’ status and welfare, may lead to conflicts with management. However, recent industrial relations research has also noted that labor unions often cooperate with management to support organizational innovation and success (Boxall & Macky, 2009; Verma, 2005). For example, Cutcher-Gershenfeld and Kochan (2004) showed that the active involvement of labor unions in workplace strategies supports workplace innovation. Likewise, Block and Berg (2009) demonstrated that joint responsibility between labor unions and management facilitates the adoption of innovative work practices that reduce production costs and improve profitability at GM plants. These studies suggest that labor unions can provide productive solutions and constructive suggestions with respect to workplace operations. Accordingly, labor unions can support a firm’s strategic management by mobilizing employee participation in strategic decision-making and program implementation.
  • 16. From the opposing views of the roles of labor unions present in the literature, it is apparent that the effects of union participation may vary with the type of union participation. Specifically, labor unions can collaborate with management to enhance labor productivity and operational efficiency when they are involved in the strategic management of the firm. However, union participation in HR issues may also lead to conflicts with management when unions try to suppress management autonomy to change employment practices. Recently, in South Korea, Kim and Bae’s (2005) case study noted significant HRM differences between unionized and non-unionized companies. Although Samsung SDI and LG Electronics are subsidiaries of Chaebol group and belong to the electronics industry, union status significantly determines the characteristics of work practices and programs. At Samsung SDI, the employee participation system has been realized through a variety of programs, such as quality meeting, The Six Sigma program, and employee suggestion system. Employee participation at Samsung SDI tends to be restricted around the suggestions and committees. Samsung SDI relies on a top-down approach to workplace management. In contrast, LG Electronics motivates employee participation through collective bargaining. Labor unions have opportunities to participate at the strategic
  • 17. level, such as restructuring, investment, and product development. LG Electronics conducts a bottom-up approach to workplace management. Kato, Lee, Lee, and Lee (2005) reported that adversarial unionized workplaces have less quality control programs than harmonized working environments. Labor unions in South Korea may exert significant influences over workplace activities and programs, although it is endorsed by top management. Thus, we propose two separate hypotheses regarding the differential effects of union participation by reflecting strong bargaining powers in South Korea workplaces. Hypothesis 1a Union strategic participation will enhance the positive effect of a strategic HR function on firm performance. Hypothesis 1b Union HR participation will undermine the positive effect of a strategic HR function on firm performance. Strategic HR functions and firm performance 95 Career development and employee training programs The resource-based view of the firm suggests that a firm’s unique human assets are a fundamental source of the firm’s competitiveness (Barney, 1991). To respond to changing
  • 18. environments and to achieve a sustainable competitive advantage, a firm must develop flexible human assets that can quickly adjust to possible changes in firm strategy (Wright & Snell, 1998). Career development programs expand employees’ competencies, thus providing support for career development. Employee training programs also provide opportunities for workers to acquire skills and knowledge that support task performance. Through career development and employee training programs, employees can be exposed to a broad range of knowledge and perspectives, making them less inclined to resist change and more inclined to generate new knowledge and creative approaches (Beugelsdijk, 2008). In this respect, extensive career development and employee training programs are likely to expand the human resources available for strategic implementation and help the firm flexibly align human resources with a variety of strategic requirements (Takeuchi, Wakabayashi, & Chen, 2003). Accordingly, as a sub- system of high- involvement work practices, career development and employee training programs are expected to expand the positive effects of a strategic HR function on firm performance. Hypothesis 2 Employee career development and training programs will enhance the positive effect of a strategic HR function on firm performance. Pay-for-performance program To effectively implement HR strategies, firms must determine a
  • 19. method to make low- level employees internalize the intention of these strategies. One such method is pay- for-performance programs, which align personal interests with organizational objectives by connecting payouts to employee performance. Thus, through pay-for-performance programs, HR functions can shape employee behaviors and attitudes in a manner that is compatible with the firm’s strategic objectives (Keizer, 2011). Pay-for-performance programs also support other elements of high-involvement work practices, including union participation, temporary worker management, career development, and employee training programs. Without the support of pay-for performance programs, these other elements may be unable to fully support strategic HR because without incentives, employees may be unwilling to participate in new programs, collaborate with temporary workgroups, and master new training and development. Therefore, companies must implement pay-for-performance programs as a critical part of high- involvement work practices. Hypothesis 3 A pay-for-performance program will enhance the positive effect of a strategic HR function on firm performance Management of temporary workers Employment statistics from the Korean Ministry of Labor show that more than one- third of all employees are temporary workers (Eun, 2006).
  • 20. Because Korean labor law 96 H. Kim, K. Sung-Choon stipulates conditions for the dismissal of permanent workers, some Korean firms use temporary workers as an alternative employment mechanism to control labor costs and maintain their ability to adapt to changing business circumstances (Eun, 2006). In this case, the use of temporary workers may negatively impact employee competency and commitment, which strategic HR systems aim to leverage to develop organizational competitiveness (Kwon, 2004). However, researchers have recently noted that temporary workers can be utilized as strategic assets. Lepak and Snell (2002) identified different modes of employment to examine how companies strategically utilize human capital. They suggested that there are two modes of temporary employment: contract and alliance. Under the contract mode, firms rely on temporary workers when human capital is not important or unique. However, it is sometimes necessary for firms to employ highly skilled contractors, that is, when their cost is lower than the labor costs that would incur from internal employment. Instead of hiring these workers as internal employees, firms form partnerships with temporary workers to utilize specialized skills and
  • 21. expertise to produce specific outcomes in a process that is known as the alliance mode of temporary employment. Lepak, Takeuchi, and Snell (2003) also showed that the use of temporary workers results in improved firm financial performance (ROE) when firms make a significant investment in internal development and encourage a long-term commitment from core work groups: contract workers can buffer core workers from potential risks and enable the firm to quickly adjust the amount and expense of human capital. Further, Dyne and Ang (1998) showed that temporary workers may have high levels of loyalty and commitment to organizations when firms actively invest in temporary workers. Interestingly, they showed that a temporary workforce with high levels of organizational commitment is as likely to exhibit pro-social behaviors (e.g., organizational citizenship behavior) as a permanent workforce. Bidwell (2009) compared the use of contractors and regular workers in the information technology departments of financial institutions. Managers prefer contractors to be assigned to positions where frontline managers’ interests differ from organizational interests (Bidwell, 2009). Additionally, Kwon (2004) investigated the use of temporary workers and its related effects in 182 South Korean companies. Whereas the number of temporary workers negatively impacts company performance, the institutional-
  • 22. ization of a temporary-worker management system contributes to labor productivity, employee turnover, and profitability. Therefore, when firms treat temporary workers as important business partners and support their career development, the temporary workforce can serve as a valuable resource to improve organizational competitiveness (Felstead & Gallie, 2004). In summary, temporary workers can provide organizations with specialized skills and knowledge that are valuable but unavailable from internal employment and that complement the value of regular workers. Thus, the institutionalization of temporary worker management should help HR functions to mobilize the competencies and cooperation of temporary workers, which in turn support the implementation of HR strategies. Hypothesis 4 The institutionalization of temporary worker management will enhance the positive effect of a strategic HR function on firm performance. Strategic HR functions and firm performance 97 Methodology Sample and procedure
  • 23. Data were collected from the 2005 Workplace Panel Survey (WPS) conducted by the Korea Labor Institute (KLI), a government-funded labor policy group, from June 2005 to November 2005. The objective of the WPS survey was to understand how Korean firms manage human resources and to observe employment relationships in the workplace. The WPS survey was administered at 359 state enterprises in the public sector and 3,916 firms in the private sector, each of which had over 30 employees. A survey package was mailed to the HR manager, the industrial relations manager, and/or the firm’s employee representative responsible for HRM and labor relations. Specific questionnaires were designed for each type of managers such that HR managers responded to questions about HR programs and policies, industrial managers responded to questions about company IR policies, and employee representatives responded to questions about labor union policies. The survey package included a letter that explained the objectives and methods of the survey and its importance. KLI used a variety of methods, including web-based surveys, paper-and-pencil questionnaires, and computer-assisted personal interviews, to increase the response rate of WPS. Approximately 50 percent of the total population, that is, 1,905 firms (1,615 in the private sector and 290 in the public sector), returned the survey.
  • 24. For our study, we selected firms with more than 100 employees because firms of this size can be assumed to have systematic HR programs (Datta, Guthrie, & Wright, 2005). We also eliminated state enterprises from our analysis, because state enterprises pursue public interests. HR department in state enterprises put focus on compliances with laws and regulations. As state enterprises may not be consistent with study purposes, we withdrew state enterprises from the samples. Because our study focuses on the moderating effect of union participation on the relationship between a strategic HR function and firm performance, we eliminated non-unionized firms from the final sample. After deleting the missing variables, the final sample included 203 firms. Measures Strategic HR function A strategic HR function is defined as the extent to which HR roles and responsibilities are integrated into a firm’s strategic management. HR managers were asked to rate HR functions in strategic management on a five-point Likert scale, with responses ranging from (1) “absolutely” to (5) “not at all” for the following items: (1) Are HRM issues closely integrated with the business strategy of your firm? (2) Is the HR manager at your firm a major contributor to your business strategy? (3) Does the HR manager at your firm substantially influence the decision-
  • 25. making process of the CEO? (4) Does your firm exert concrete efforts to ensure that HRM is compatible with the business strategy? (5) Do persons in other divisions in your firm recognize the HR division as an architect of change and as a major partner in business? (6) Does HRM in your firm appropriately support the achievement of business strategy objectives? All items were reverse-scaled to test our hypotheses. 98 H. Kim, K. Sung-Choon High-involvement work practices Union participation was measured by asking industrial relations managers to rate the extent to which their unions participate in the decision-making of the firm. Union participation was assessed in two areas of management decisions: firm strategy and HRM. We developed the measures by referring to previous studies (Deery & Iverson, 2005; Kato et al., 2005) that assess the extent to which labor unions are actively involved in a firm’s strategic and HRM issues. Specifically, union participation in strategic decisions was measured with five items related to management strategy, investment strategy, and the introduction of new technologies and new machinery. Union participation in HRM was measured with three items that assessed the extent to which a union participated in HRM decisions regarding personnel appraisal, compensation, and
  • 26. promotion systems. All of the survey items on union participation employed a four- point Likert scale, ranging from (1) “the management makes unilateral decisions without informing the union” to (4) “decisions are made jointly between labor and management.” A firm’s career development programs were measured by the number of …