Oxford Handbook of Human Resource Management

various forms of rationality. He associates the concept of strategy with the
following general categories of social action:

.Instrumental-rational, which refers to the means needed to achieve utilitarian

ends (reXecting material interests and the will to power). Weber ( 1946 ) labels

this ‘Zweckrationalita ̈t’.

.Value-rational, which refers to ethical, aesthetic, religious, political, or other

ideals (involving identiWcation and commitment). Weber ( 1946 ) labels this

‘Wertrationalita ̈t’.

.AVectual/emotional, which refers to the actor’s speciWcaVects and feelings

(sentiments and emotions can enhance value-rational commitments).

.Traditional, which refers to ingrained habits (the institutionalization of pre-

vious strategic decisions of either a utilitarian or idealistic character).

In theWeld of HRM, these four kinds of social action are particularly relevant
in shaping HR practices. From an economic and managerial perspective, it is usual
for only the instrumental-rational perspective to be taken into account. However,
especially when decisions relate to the shaping of employment relationships,
other categories of social action, based on values, emotions, and traditions, are
at stake. Kochan et al. ( 1986 ) also attach importance to the role of values, which stem
from diVerent rationalities, the role of history, and processes of institutionalization.
The framework presented in Fig. 9. 1 summarizes their approach.
This brings us into the realm of new institutionalism, a strand of theorizing
which gives us a sound basis for the inclusion of context in the study of HRM and a
way to explore the societal embeddedness of HR practices.

External environment

Values

Business

strategies Instiutional structureof firm-level industrial

relations Performance

outcomes

Employers

Workers

Labor unions

Society

Strategic activities

Collective bargaining/

personnel functional

activities

History and Workplace activities

current

structures

Labor markets

Workforce

characteristics

and values

Product markets

Technology

Public policies

Fig. 9.1. General framework for analyzing industrial relations issues

Source:Kochan et al. 1986.

172 jaap paauwe and paul boselie