Open AccessMaking Or Buying Employees: The Relationship Between Human Resources Policy, Business Strategy And Corporate Restructuring
Author(s) -
Linda K. Stroh,
Anne H. Reilly
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v10i4.5902
Subject(s) - restructuring , business , human resources , human resource management , variance (accounting) , work (physics) , marketing , business administration , management , accounting , economics , finance , mechanical engineering , engineering
This study used cross level data from two different levels of management to examine the relationship between human resources policy, business strategy and corporate restructuring activities. The results suggested that corporate restructuring activities, not business strategy, accounted for a significant proportion of variance in the career patterns of managers. Organizations that had experienced more restructuring in the form of cutbacks in operations, reductions in force, voluntary terminations, and reorganizations had a remaining work force that had an external labor market orientation. These results challenge the theory of Miles & Snow (1984) and Sonnenfeld and Peiperl (1988) that suggests an organizations business strategy should be reflected in human resource policy.