Abstract
This is a study based on comparative transnational survey evidence from across Europe. It examines recent trends in the use of external providers to manage human resources and how this use has changed since the global economic crisis that began in 2008. The study shows that the use of external HRM providers significantly decreased following the onset of the crisis; this would indicate that firms primarily perceived it as a luxury or something that could support discretionary managerial initiatives rather than a means for making firms more efficient or contributing to more added value. In addition, after 2008 a large number of firms abandoned their HRM function entirely, probably because of the increase in cheap, easily disposable labor in many national contexts. The study reveals that these trends were most pronounced in the emerging market economies of Central and Eastern Europe. The consequences of the crisis appear to have contributed to enhancing national differences instead of bringing the national contexts closer together.
This is a preview of subscription content, log in via an institution.
References
Alewell, D., Bähring, K., Canis, A., Hauff, S., & Thommes, K. (2007). Outsourcing HR functions. Development of an explanatory approach to firms (Non-Existent) demand for personnel services. Management revue, 18(3), 271–292.
Alewell, D., Hauff, S., Thommes, K., & Weiland, K. (2009). Triggers of HR outsourcing decisions–an empirical analysis of German firms. The International Journal of Human Resource Management, 20(7), 1599–1617.
Amable, B. (2003). The diversity of modern capitalism. Oxford: Oxford University Press.
Belcourt, M. (2006). Outsourcing—The benefits and risks. Human Resource Management Review, 16(2), 269–279.
Beregszaszi, J., & Polay, D. H. (2012). Human resource outsourcing in times of economic turbulence–a contemporary review of practice. International Journal of Human Resource Studies, 2(1), 46–65.
Brewster, C., Hegewisch, A., & Lockhart, T. (1991). Researching human resource management: The methodology of the price waterhouse-Cranfield project on European trends. Personnel Review, 20(6), 36–40.
Brewster, C., Hegewisch, A., Mayne, L., & Tregaskis, O. (1994). Methodology of the pricewaterhouse Cranfield project. Appendix 1. In C. Brewster & A. Hegewisch (Eds.), Policy and practice in European human resource management. London: Routledge.
Brewster, C., & Mayrhofer, W. (Eds.). (2012). Handbook of research in comparative human resource management. Cheltenham: Edward Elgar.
Brewster, C., Morley, M., & Buciuniene, I. (2010). The reality of human resource management in Central and Eastern Europe. Baltic Journal of Management, 5, 145–155.
Brewster, C., Wood, G., Van Ommeren, J., & Brookes, M. (2006). The determinants of HR Size. Human Resource Management, 45(1), 3–21.
Canato, A., & Giangreco, A. (2011). Gurus or wizards? A review of the role of management consultants. European Management Review, 8(4), 231–244.
Chiang, F. F., Chow, I. H. S., & Birtch, T. A. (2010). Examining human resource management outsourcing in Hong Kong. The International Journal of Human Resource Management, 21(15), 2762–2777.
Church, A. (2003). Returns to human capital investment in a transition economy: The case of Russia 1994–1998. International Journal of Manpower, 24(1), 11–30.
Cook, F. L., Shen, J., & McBridge, A. (2005). Outsourcing HR as a competitive strategy? A literature review and an assessment of implications. Human Resource Management, 44(4), 413–432.
Cranet. (2006). International executive report 2011, cranet survey on comparative human resource management. Cranfield: Cranet-Cranfield University.
Cranet. (2011). International executive report 2011, cranet survey on comparative human resource management. Cranfield: Cranet-Cranfield University.
De Thierry, E., Lam, H., Harcourt, M., Flynn, M., & Wood, G. (2014). Defined benefit pension decline: The consequences for organizations and employees. Employee Relations, 26(6), 654–673.
Delmotte, J., & Sels, L. (2008). HR outsourcing: Threat or opportunity? Personnel Review, 37(5), 543–563.
Farndale, E., Paauwe, J., & Hoeksema, L. (2009). In-sourcing HR: Shared service centres in the Netherlands. The International Journal of Human Resource Management, 20(3), 544–561.
Ghauri, P., & Gronhaug, K. (2010). Research methods in business studies. A practical guide. New York: Prentice Hall.
Glaister, A. J. (2014). HR outsourcing: The impact on HR role, competency development and relationships. Human Resource Management Journal, 24(2), 211–226.
Goergen, M., Brewster, C., Wood, G., & Wilkinson, A. (2012). Varieties of capitalism and investments in human capital. Industrial Relations, 51(1), 501–527.
Grint, K., & Case, P. (1998). The violent rhetoric of re-engineering: Management consultancy on the offensive. Journal of Management Studies, 35(5), 557–577.
Grünbaum, N. N., Andersen, M., Holemusen, & Kohle, L. (2013). Industrial buying behavior related to human resource consulting service. The IUP Journal of Marketing, 12(3), 27–51.
Hall, P., & Soskice, D. (2001). An Introduction to the Varieties of Capitalism. In P. Hall & D. Soskice (Eds.), Varieties of capitalism: The institutional basis of competitive advantage. Oxford: Oxford University Press.
Hancke, B., Rhodes, M., & Thatcher, M. (2007). Introduction. In B. Hancke, M. Rhodes, & M. Thatcher (Eds.), Beyond varieties of capitalism: Conflict, contradiction, and complementarities in the European economy. Oxford: Oxford University Press.
Harrison, B., & Kelley, M. R. (1993). Outsourcing and the search for flexibility. Work, Employment & Society, 7(2), 213–235.
Hätönen, J., & Eriksson, T. (2009). 30+ years of research and practice of outsourcing—Exploring the past and anticipating the future. Journal of International Management, 15(2), 142–155.
Hitt, W. D. (1995). The learning organization: Some reflections on organizational renewal. Leadership & Organization Development Journal, 16(8), 17–25.
Holton, E. F., & Yamkovenko, B. (2008). Strategic intellectual capital development: A defining paradigm for HRD? Human Resource Development Review, 7(3), 270–291.
Kazlakauiste, R., Buciunine, I., Poór, J., Karoliny, Z., Alas, R., Kohont, A., & Szlávicz, Á. (2013). Human resource management in the Central and Eastern European region. In E. Parry, E. Stavrou, & M. Lazarova (Eds.), Global trends in human resource management. London: Palgrave-Macmillan.
Kazlauskaitė, R., & Bučiūnienė, I. (2010). HR function developments in Lithuania. Baltic Journal of Management, 5(2), 218–241.
Kim, A., & Lee, C. (2012). How does HRM enhance strategic capabilities? Evidence from the Korean management consulting industry. The International Journal of Human Resource Management, 23(1), 126–146.
Lane, D. (2007). Post-State socialism: A diversity of capitalisms? In D. Lane & M. Myant (Eds.), Varieties of capitalism in post-communist countries (pp. 13–39). London: Palgrave.
Lazarova, M., Morley, M., & Tyson, (2008). Introduction-international comparative studies in HRM and performance—The Cranet data. The International Journal of Human Resource Management, 17(11), 1995–2003.
Lewis, P. C. (2005). How the East was won. New York: Palgrave Macmillan.
Lievens, F., & de Corte, W. (2008). Development and test of a model of external organizational commitment in human resources outsourcing. Human Resource Management, 47(3), 559–579.
Mayrhofer, W. (1998). Between market, bureaucracy and clan: Coordination and control mechanisms in the Cranfield network on European human resource management (Cranet-E). Journal of Managerial Psychology, 13(3/4), 241–258.
McDonnell, A., & Burgess, J. (2013). The impact of the global financial crisis on managing employees. International Journal of Manpower, 34(3), 184–197.
Morley, M. J., Heray, N., & Michailova, (Eds.). (2008). Managing human resources in the transition economies of Central and Eastern Europe. Global HRM series. London: Routledge.
Pocztowski, A. (2011). Human resource management in transition—The polish case. Warszawa: Oficyna-Wolters Kluwer Business Publishing House.
Poór, J. (2001). Central and Eastern Europe. In B. Curnow & J. Reuvid (Eds.), The international guide to management consultancy. London: Kogan Page.
Poór, J., & Gross, A. (2003). Management consultancy in an Eastern European context. Budapest: KJK and Kerszöv Publishing House.
Psychogios, A., & Wood, G. (2010). Human resource management in Greece in comparative perspective: Alternative institutionalist perspectives and empirical realities. International Journal of Human Resource Management, 21(14), 2614–2630.
Reeb, D., Sakakibara, M., & Mahmood, I. P. (2012). From the editors: Endogenety in international business research. Journal of International Business Research, 43(3), 211–218.
Sheehan, C. (2009). Outsourcing activities in Australian organizations. Asia Pacific Journal of Human Resources, 47(2), 236–253.
Sturdy, A. (2011). Consultancy’s consequences? A critical assessment of management consultancy’s impact on management. British Journal of Management, 22(3), 517–530.
Whitley, R. (1999). Divergent capitalisms: The social structuring and change of business systems. Oxford: Oxford University Press.
Wood, G., & Wright, M. (2015). Corporations and new statism: Trends and research priorities. Academy of Management Perspectives, 29(2), 271–286.
Acknowledgements
We thank Prof. Allen D. Engle Sr. (Eastern Kentucky University, KY-US) for his encouraging comments and suggestions on this version of our manuscript. We also thank all our colleagues from the Cranet network (www.cranet.org) for allowing us to use their collected data in the course of our research.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2018 Springer Fachmedien Wiesbaden GmbH
About this chapter
Cite this chapter
Poór, J. et al. (2018). The Changing Role of External Providers of HRM: Empirical Evidence from Consecutive Cranet Surveys. In: Covarrubias Venegas, B., Thill, K., Domnanovich, J. (eds) Personalmanagement. Forschung und Praxis an der FHWien der WKW. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-15170-6_4
Download citation
DOI: https://doi.org/10.1007/978-3-658-15170-6_4
Published:
Publisher Name: Springer Gabler, Wiesbaden
Print ISBN: 978-3-658-15169-0
Online ISBN: 978-3-658-15170-6
eBook Packages: Business and Economics (German Language)