Premium
Management Buyouts and Human Resource Management
Author(s) -
Bacon Nicolas,
Wright Mike,
Demitalia
Publication year - 2004
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.2004.00317.x
Subject(s) - business , agency (philosophy) , human resource management , human resources , industrial organization , leveraged buyout , agency cost , resource (disambiguation) , management , finance , economics , shareholder , private equity , corporate governance , computer network , philosophy , epistemology , computer science
This paper reports the findings from a survey of the effects of management buyouts on human resource management (HRM). Buyouts resulted in increased employment, the adoption of new reward systems, and expanded employee involvement. These developments support the resource‐based view that buyouts develop internal assets over agency theory predictions that managers will adopt a cost reduction approach. The type of buyout influences the subsequent development of HRM. Buyouts report more commitment‐orientated employment policies where employees own shares, and where the buyout pursues a ‘buy and build’ corporate strategy and adopts a business strategy of enhancing customer service and developing markets.