The Role of Human Resource System on Crisis Resolve

Authors: Abbas Haddadzadeh, Marzieh Sharif Paghaleh

Abstract:

Within the new world order, the term “crisis" is nowadays familiar to companies. Organizations are experiencing conditions which are surprising, uncertain, often adverse and usually unstable. The companies, who grasp the importance of transformation within the information age, have felt the need to develop modern methods to achieve the ability to thrive despite severe shocks. Through strategically managing human resource and developing appropriate elements of human resource system, companies can be assured for resolving the crisis. In this paper the role of HR system on resolving crisis has been evaluated. To help accomplish this, an insight on previous strategic HRM literature and an introduction to the elements and relationship within HR systems has been presented. It also reviews different attitude around resilience in literature. It continues by reviewing three elements central to developing an organization-s capacity for crisis resolving and it will demonstrate how designing proper elements of HR system can lead the organizations to possess the ability for passing through crisis. Finally it will evaluate an Iranian Insurance organization in case of one of the three central elements (specific cognitive ability) and observe how successful they were on developing an effective HR system to be ready for facing crisis.

Keywords: Crisis, HR System, Resilience, Strategic Human Resource Management.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1060918

References:

[1] P. Altiok, Applicable vision, mission and the effects of strategic management on crisis resolve. Procedia Social and Behavioral Sciences, 2011, 24, 61-71.
[2] C. A. Lengnick-Hall, T. E. Beck & M. L. Lengnick-Hall, Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 2011, 21, 243-255.
[3] P. M. Wright & W. R. Boswell, Desegregating HRM: A review and synthesis of micro and macro human resource management research. Journal of Management, 2002, 28, 247-276.
[4] P. M. Wright, B. B. Dunford & S. A. Snell, Human resources and the resource based view of the firm. Journal of Management, 2001, 27, 701−721.
[5] P. M. Wright & G. C. McMahan, Theoretical perspectives for strategic human resource management. Journal of Management, 1992, 18, 295- 320.
[6] B. A. Colbert, The complex resource-based view: Implications for theory and practice in strategic human resource management. Academy of Management Review, 2004, 29, 341−358.
[7] J. E. Delery, Issues of fit in strategic human resource management: Implications for research. Human Resource Management Review, 1998, 8, 289−309.
[8] S. Kepes & J. E. Delery, Designing effective HRM systems: The issue of HRM strategy. In R. J. Burke & C. L. Cooper (Eds.), The human resources revolution: Why putting people first matters, 2006, (pp. 55−76). Elsevier.
[9] D. Lepak & S. A. Snell, The human resource architecture: Toward a theory of human capital allocation development. Academy of Management Review, 1999, 24, 31−48.
[10] C. Ostroff & D. E. Bowen, Moving HR to a higher level: HR practices and organizational effectiveness. In K. J. Klein, & S.W. J. Kozlowski (Eds.), Multilevel theory, research, and methods in organizations, 2000, (pp. 211−256), San Francisco Jossey-Bass.
[11] R. Schuler, Strategic human resources management: Linking the people with the strategic needs of the business. Organizational Dynamics, 1992 Summer, 21, 18−32.
[12] J. B. Arthur & T. Boyles, Validating the human resource system structure: A levels-based strategic HRM approach. Human Resource Management Review, 2007, 17, 77-92.
[13] B. E. Becker & B. Gerhart, The impact of human resource management on organizational performance: Progress and prospects. Academy of management journal, 1996, 39, 779-801.
[14] L. Dyer & G. W. Holder, Toward a strategic perspective of human resource management. In L. Dyer (Ed.), Human resource management: Evolving roles and responsibilities, 1988, (pp. 1−46), Washington, DC Bureau of National Affairs.
[15] K. Jiang, D. P. Lepak, K. Han, Y. Hong, A. Kim & A. L. Wikler, Clarifying the construct of human resource systems: Relating human resource management to employee performance. Human Resource Management Review, 2012, 22, 73-85.
[16] A. P. Jones & L. R. James, Psychological climate: Dimensions and relationships of individual and aggregated work environment perceptions. Organizational Behavior and Human Performance, 1979, 23, 201−250.
[17] B. Schneider, The psychology of organizations. In C. Ashkanasy, C. Wilderom, & M. F. Peterson (Eds.), Handbook of organizational culture and climate, 2000, Thousand Oaks, CA Sage Publications.
[18] D. E. Bowen & C. Ostroff, Understanding the HRM-firm performance linkages: The role of the "strength" of the HRM system. Academy of Management Review, 2004, 29(2), 203−221.
[19] N. Kumar, L.W. Stern & J. C. Anderson, Conducting interorganizational research using key informants. Academy of Management Journal, 1993, 36, 1633−1651.
[20] R. Balu, How to bounce back from setbacks. Fast Company, 2001, 45, 148−156.
[21] J. E. Dutton, P. J. Frost, M. C. Worline, J. M. Lilius & J. M. Kanov, Leading in times of trauma. Harvard Business Review, 2002, 80(1), 54−61.
[22] J. H. Gittell, K. Cameron, S. Lim & V. Rivas, Relationships, layoffs, and organizational resilience: Airline industry responses to September 11th. Journal of Applied Behavioral Science, 2006, 42(3), 300-330.
[23] J. F. I. Horne, The coming of age of organizational resilience. Business Forum, 1997, 22(2/3), 24−28.
[24] J. F. I. Horne & J. E. Orr, Assessing behaviors that create resilient organizations. Employee Relations Today, 1998, 24(4), 29−39.
[25] L. A. Mallak, Putting organizational resilience to work. Industrial Management, 1998, 40(6), 8−13.
[26] D. Robb, Building resilient organizations. OD Practitioner, 2000, 32(3), 27−32.
[27] J. W. Rudolph & N. P. Repenning, Disaster dynamics: Understanding the role of quantity in organizational collapse. Administrative Science Quarterly, 2002, 47, 1-30.
[28] K. M. Sutcliffe & T. J. Vogus, Organizing for resilience. In K. S. Cameron, J. E. Dutton, & R. E. Quinn (Eds.), Positive organizational scholarship: Foundations of a new discipline, 2003, ( 94-110). San Francisco: Berrett-Koehler.
[29] D. L. Coutu, How resilience works. Harvard Business Review, 2002, 80(5), 46−55.
[30] S. F. Freeman, L. Hirschhorn & M. Maltz, Organization resilience and moral purpose: Sandler O'Neill and partners in the aftermath of 9/11/01. Paper presented at the National Academy of Management meetings, New Orleans, LA, 2004.
[31] T. Guidimann, From recovery to resilience. The Banker, 2002, 3−6.
[32] J. J. Jamrog, J. E. I. McCann, J. M. Lee, C. L. Morrison, J. W. Selsky & M. Vickers, Agility and resilience in the face of continuous change. : American Management Association, 2006.
[33] A. Layne, How to make your company more resilient, 2001 March from. http://www/fastcompany.com/articles/2001/03/odwalla.html.
[34] C. A. Lengnick-Hall & T. E. Beck, Beyond bouncing back: The concept of organizational resilience. Seattle, WA: Paper presented at the National Academy of Management meetings, 2003.
[35] C. A. Lengnick-Hall & T. E. Beck, Adaptive fit versus robust transformation: How organizations respond to environmental change. Journal of Management, 2005, 31(5), 738−757.
[36] K. E. Weick, Enacted sensemaking in crisis situations. Journal of Management Studies, 1988, 25, 305−317.
[37] D. P. Ashmos & G. P. Huber, The systems paradigm in organization theory: Correcting the record and suggesting the future. Academy of Management Review, 1987, 12(4), 607−621.
[38] F. P. Morgeson & D. A. Hofmann, The structure and function of collective constructs: Implications for multilevel research and theory development. Academy of Management Review, 1999, 24(2), 249−265.
[39] C. A. Lengnick-Hall & T. E. Beck, Resilience capacity and strategic agility: Prerequisites for thriving in a dynamic environment. In C. Nemeth, E. Hollnagel, & S. Dekker (Eds.), Resilience engineering perspectives, 2009, 2, Aldershot, UK: Ashgate Publishing.
[40] C. A. Lengnick-Hall & T. E. Beck, & M. L. Lengnick-Hall, Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 2011, 21, 243-255.