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Published by: Allied Business Academies
Published in: "Academy of Strategic and Organizational Leadership Journal", 1999
Length: 15 pages

Abstract

An essential element of the strategic human resource management (SHRM) perspective is the range of decision making discretion a human resource manager has for enacting change in response to environmental contingencies. Higher levels of discretion lead to human resource practices that are more innovative, responsive to employees, and congruent with the business strategy of the organisation. In this study, we examined the degree to which human resource manager discretion is influenced by an organisation’s institutional environment. More specifically, research suggests that institutional factors such as laws, regulations, and the expectations of external constituents may constrain human resource manager discretion, ultimately affecting the range and content of human resource practices. The results of this study indicate that institutional factors such as industry-type, legal coercion, environmental uncertainty, and the interconnectedness of the institutional environment and the organisation influence human resource manager discretion. The implications of these findings are discussed.

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Abstract

An essential element of the strategic human resource management (SHRM) perspective is the range of decision making discretion a human resource manager has for enacting change in response to environmental contingencies. Higher levels of discretion lead to human resource practices that are more innovative, responsive to employees, and congruent with the business strategy of the organisation. In this study, we examined the degree to which human resource manager discretion is influenced by an organisation’s institutional environment. More specifically, research suggests that institutional factors such as laws, regulations, and the expectations of external constituents may constrain human resource manager discretion, ultimately affecting the range and content of human resource practices. The results of this study indicate that institutional factors such as industry-type, legal coercion, environmental uncertainty, and the interconnectedness of the institutional environment and the organisation influence human resource manager discretion. The implications of these findings are discussed.

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