Gives an account of Swedish industrial relations and discusses thedecline of the classic Swedish harmony model. Analyses historically highunemployment figures. Makes a…
Abstract
Gives an account of Swedish industrial relations and discusses the decline of the classic Swedish harmony model. Analyses historically high unemployment figures. Makes a presentation of HRM as a profession in Sweden including the speciality of human resource costing and accounting. Uses Marxist, pluralist and rationalist models to explain the gap between theory and practical implementation of HRM. Discusses the HRM consequences of Sweden joining the EU and the future prospects for Sweden in a world economy.
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This paper comprises a theoretical study of factors influencing the utility of organisational downsizing. Companies downsize in order to adapt to lower demand or as a means to…
Abstract
This paper comprises a theoretical study of factors influencing the utility of organisational downsizing. Companies downsize in order to adapt to lower demand or as a means to improving efficiency, i e to improve their performance/cost ratio. With perfect information and no legal or ethical restrictions, management would remove employees with the lowest utility. This information is normally lacking and downsizing is instead based on a headcount or on total salary cost reduction. The efficiency of such measures will then be a function of the correlation between salary and utility. Different downsizing outcomes are calculated on the basis of different assumptions; some of these outcomes increase efficiency while others would probably lead to continued decline. Many companies are subject to legal restrictions such as Last In First Out tenure requirements. This leads on to an analysis of relationships among utility, salary and period of employment. Break‐even analyses are computed showing on what terms it would be worthwhilefor management to offer longterm employees early retirement.
HUNTER MABON and GUNNAR WESTLING
This paper examines both theoretically and empirically the application of utility theory to downsizing decisions. It is shown that residual efficiency after downsizing can differ…
Abstract
This paper examines both theoretically and empirically the application of utility theory to downsizing decisions. It is shown that residual efficiency after downsizing can differ greatly, depending on whether a company uses a headcount, utility or payroll reduction and that the correlations among employee age/period of job tenure, individual utility and salary all contribute to these differences. Companies are often restricted by legal and ethical considerations when deciding who will leave during downsizing. Using the above conceptual framework it is shown that companies can determine a financial break‐even point where it would be worthwhile to offer some categories of employees a severance package in order to have freedom of action during downsizing. Data are used from an empirical study of a large financial services company to illustrate the practical application of the model. It is concluded that only limited amounts of information in addition to that normally available to HR managers is required in order to apply the models developed in this study and that utility theory can make a valuable contribution to decision‐making in the downsizing process.
This paper provides a brief account of the work of the PEI since its inauguration. Furthermore, a number of current issues are discussed such as the way the scope of the subject…
Abstract
This paper provides a brief account of the work of the PEI since its inauguration. Furthermore, a number of current issues are discussed such as the way the scope of the subject has been extended to broader issues including intellectual capital and the balanced score card. A final conclusion is drawn that while much has been achieved by the PEI and others, there are still many central measurement issues to be resolved in the future.
ULF JOHANSON and MARIANNE NILSON
Human resource costing and accounting (HRCA) has been the subject of much model construction but there has been little research as to how these models are utilised in practical…
Abstract
Human resource costing and accounting (HRCA) has been the subject of much model construction but there has been little research as to how these models are utilised in practical decision‐making and implementation. This issue is addressed in three studies covering different aspects of HRCA. The first study shows that decisions are influenced in an experimental situation by HRCA information in such a way that the decisions are made in accordance with the content of the information. In the second study, the stimulating and inhibiting factors of force‐field analysis are used to examine a possible implementation of the methods of HRCA. In the third study, developments some years after a number of managers have come into contact with HRCA are examined. The conclusion is that HRCA has been useful as a basis for decisions or actions concerning human resource decision‐making
To many observers, the area of utility analysis appears disjointed, unfocused, and they wonder where it is going. Despite the fact that there is almost 20 years of experience with…
Abstract
To many observers, the area of utility analysis appears disjointed, unfocused, and they wonder where it is going. Despite the fact that there is almost 20 years of experience with utility analysis since researchers brought it into the modern era, this approach to cost/benefit analysis has not caught on widely and it is not a standard procedure in the assessment of HR interventions. I argue that utility analysis remains an appropriate area of inquiry, but currently it suffers from three broad sets of problems: (1)from an applied research perspective there is often a failure to focus on critical, value‐adding activities that managers regard as relevant and important to their own success; (2) inability to communicate the results of utility analyses in a persuasive, credible manner to operating executives; and (3) technical problems, both theoretical and operational. In my view, none of these is insurmountable, but we must address each one in a systematic manner if the potential of utility analysis to help guide organizational decision making is to be realized in practice.
Despite a promising outlook in the 1970s, it has been claimed that human resource costing and accounting have progressed at something less than snail’s pace over the past two…
Abstract
Despite a promising outlook in the 1970s, it has been claimed that human resource costing and accounting have progressed at something less than snail’s pace over the past two decades. This is largely due to difficulties in the application of the concept. In this article several extant studies regarding the application of HRCA are classified and exemplified. The idea is to increase our knowledge of how implementation of the concept could be achieved from a management control perspective. Most managers in the majority of studies hold very positive attitudes towards HRCA, but the integration of HRCA in the management control process has never been really attained. In seven Swedish case studies, the inhibiting factors in the implementation process of HRCA are compared. The lesson is that training, information, reward, target setting and cultural systems have to be worked actively to overcome inhibiting factors when trying to implement HRCA. Efforts should focus on: (1) knowledge of human resource costs, values and outcomes as well as how to calculate these; (2) top management demand as well as other elements in the reward system; (3) HRCA target setting; and (4) openness for change.