9.3 HRM and Strategic Contingency
Approaches
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Looking back at the classic HRM models of Beer et al. ( 1984 ) and Fombrun et al.
( 1984 ), we see that they paid attention to how context has an impact on HRM
policies and practices. Fombrun’s model (the so-called ‘Michigan approach’) refers
to context in terms of economic, political, and cultural forces. Beer et al.’s model
(the so-called ‘Harvard model’) is more explicit in that it recognizes a wide range
of contextual factors ranging from stakeholder interests to situational factors. Next
to shareholders and management, Beer et al. ( 1984 ) take stakeholders such as
employees, government, community, and unions into account. Situational factors
that have an impact on the stakeholders include the labor market, task technology,
laws, and societal values. Since Fombrun et al. ( 1984 ) and Beer et al. ( 1984 ), research
has moved forward to testing the added value of human resource management: the
HRM and performance debate. Empirical studies on the added value of HRM
include contextual features such as the degree of unionization and industry or
sector as control variables but little or no attention is actually paid to how these
factors aVect HRM or how they interact (Boselie et al. 2005 ).
In terms of the HRM theories of the last two decades, Delery and Doty ( 1996 )
distinguish between universalistic, conWgurational, and contingent approaches.
The last one is especially interesting for our purposes. Contingency theory^1 states
that the relationship between relevant independent variables (like HRM practices)
and the dependent variable (performance) will vary according to inXuences such
as company size, age, and technology, strategy, capital intensity, the degree of
unionization, industry/sector, ownership, and location. Strategic contingency
approaches were the most popular theoretical approaches used in empirical
HRM-performance research in the period 1994 – 2003 , exceeding the number of
studies which used either the RBV or high-performance/high-commitment HRM
approaches (Boselie et al. 2005 ).
Strategic contingency approaches gained popularity in HRM in the 1980 s
through the work of a number of authors. Miles and Snow ( 1984 ) developed a
model for linking HR strategy to competitive strategy using three basic types of
(^1) The Essex studies (Woodward 1965 ), the famous work by Lawrence and Lorsch ( 1967 ), the Aston
Programme (e.g. Pugh and Hickson 1976 ), and the work of Mintzberg ( 1979 ) represent a stream in
organization theory known as strategic contingency approaches. Their empirical researchWndings
suggest that contingencies (e.g.Wrm size, branch of industry,Wrm age, capital intensity, trade union
inXuence, technology) aVect strategic decision making, organizational goals, organizational structure,
systems, and culture. Contingency approaches stress the relevance of the ‘organization environment
interface’ (Lawrence and Lorsch 1967 ) and the notion of situation determined problems. The con
tingency school covers a range of models, which advocateWtting business strategy to its surrounding
(external) context.
hrm and societal embeddedness 169