||Studies of Employment Modes, Employment Relationship and Core Competency Workforce
||Institute of International Management (IIMBA--PHD)
Social Exchange Theory
The current study uses a case study approach to investigate why organizations allocate different kinds of employees We adopt relational (social exchange theory) and transactional (agency theory) perspectives to explain the increasing allocation of external employees, in contrast to previous scholars who only emphasize cutting operating costs as the main reason for hiring external employees. Our study shows that opportunism is assumed to be important ― not because everyone is opportunistic but because it is impossible to obtain reliable information concerning the opportunism of the partner. Therefore, to control risk, it is perhaps safer for an organization to hire external workers and then to shorten the cognitive distance between managers and new hires, thereby fostering opportunities for mutual understanding. When trust is built, long-term relationships are easier to maintain and turnover rates typically decrease.
TABLE OF CONTENTS
TABLE OF CONTENTS I
LIST OF TABLES III
LIST OF FIGURES IV
CHAPTER ONE INTRODUCTION 1
1.1 Employment Mode Studies. 1
1.2 The Trend of Employees Arrangements. 3
1.3 Employment Mode Research in Hospitality Industry. 4
CHAPTER TWO LITERATURE REVIEW 6
2.1 The Employment Relationship. 6
2.1.1 Transactional Perspective. 6
2.1.2 Relational Perspective. 6
2.1.3 Shamrock Organization vs. Employment Modes. 7
2.1.4 Employment Modes in HR Configuration. 9
2.2 Employment Modes in the Hospitality Industry. 10
2.3 The Core Competency Workforce. 11
CHAPTER THREE STUDY ONE 13
3.1 The Cases. 13
3.2 Validity and Reliability in Case Studies. 15
3.3 Case Analysis. 16
3.3.1 Employment Mode from Transactional Analysis. 16
3.3.2 Employment Mode from Relational Analysis. 20
CHAPTER FOUR STUDY TWO 25
4.1 The Core Competence of Human Capital. 25
4.2 Change Creator-Employment Mode Fit. 26
4.3 Commitment Maximizer - Employment Mode Fit. 27
4.4 Cost – Minimizer - Employment Mode Fit. 28
4.5 Stable Operator - Employment Modes Fit. 29
4.6 Analysis. 30
4.6.1 Sampling. 31
4.6.2 Measurement. 32
4.6.3 Validity and Reliability Test. 34
4.6.4 Cluster Analysis in Organizational Strategy. 36
CHAPTER FIVE CONCLUSION 45
5.1 Conclusion and Application. 45
5.2 Theoretical Contribution. 46
5.3 Research Limitation. 47
5.4 Future Research. 48
LIST OF TABLES
Table 3-1 Profile and Characteristics of Cases 14
Table 3-2 Important Attributes of Human Capital 14
Table 3-3 A Tentative Schema for Employment Mode from a Transactional Perspective 20
Table 3-4 A Tentative Schema for Employment Mode from a Relational Perspective 23
Table 4-1 Major Characteristics of Sample Firms 32
Table 4-2 Demographic Characteristics of the Respondents 32
Table 4-3 Factor Analysis and Reliability Test of Research Constructs 35
Table 4-4 Description of Clusters 38
Table 4-5 Core Competency Workforce in Change Creator 40
Table 4-6 Core Competency Workforce in Commitment Maximizer 41
Table 4-7 Core Competency Workforce in Cost Minimizer 43
Table 4-8 Core Competency Workforce in Stable Operator 44
LIST OF FIGURES
Figure 4-1. Employment modes and organizational strategy 26
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