Human Resource Management and labour productivity: does industry matter? -- Datta, Guthrie, Wright, 2005

11 important questions on Human Resource Management and labour productivity: does industry matter? -- Datta, Guthrie, Wright, 2005

What is the research question of this study? (Datta, 2005)

How do industry characteristics moderate the relationship between high-performance work systems and labour productivity?

What does a mechanistic management style emphasise? (Datta, 2005)

The expertise and authority of members at the top of an organisational pyramid

What does an organic management style entail? (Datta, 2005)

The knowledge is widely distributed throughout the organisation, and broadened task roles and employee commitment to the entire organisation is emphasised, so essentially more employee centered
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What is labour productivity? (Datta, 2005)

Indicates the extent to which a firm's labour force is efficiently creating output (real economic output per labour, per hour over a defined period)

According to the discretion theory what should moderate the effectiveness of high-performance work systems? (Datta, 2005)

Capital intensity, market growth, industry differentiation, and industry dynamism

Capital intensity (discretion theory) (Datta, 2005)

The amount of fixed or real capital present in relation to other factors of production, like labour
(investments of money for machinery and infrastructure to make a profit)

What is market growth? (Datta, 2005)

Expanding the market for a product or service

What are the the arguments made about market growth? (Datta, 2005)

High-growth industries are characterised by entrepreneurial decision making, with greater opportunities for industry initiatives and decision making freedom. Industry growth results in expanded options for firms, reducing the tendency towards organisation passivity. These industry features are associated with market and organisational variability and enhanced discretion, increasing the relative benefit derived from using an organic HR system in the form of high-performance work systems

What is meant with industry differentiation (discretion theory)? (Datta, 2005)

In more differentiated industries, competitive success often hinges on products that stand out from competitors on the basis of product features, quality and design

What arguments are made about industry differentiation? (Datta, 2005)

Industry differentiation should also moderate the relationship between high-performance work systems and firm productivity. Firms in differentiated industries shift production and organisational processes more frequently to meet changing market and customer preferences. Moreover, jobs tend to be more complex and varied, requiring broader skill sets and the ability and willingness to succeed in more challenging and varying circumstances. As such, higher industry differentiation should magnify the value of high-performance practices such as broadly defined tasks, decentralised decision making, greater use of terms, cross-utilisation, and more training.

What is meant with industry dynamism? (Datta, 2005)

The extent to which a firm faces an environment that is predictable and stable or changing and uncertain

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