5689629

Journal of Management1989, Vol. 15, No. 2, 157-180

Current and RecurrentChallenges In HRM

Cynthia D. FisherUniversity of Baltimore

This article reviews recent research progress and identifies futureresearch needs relevant to two somewhat different constituencies inHRM: the HR executive, and the operating level HR manager. Issuesprimarily of concern to the former include attuning HR policies to theorganization's strategy, managing human resources in an interna-tional context, dealing with mergers and acquisitions, and downsiz-ing. Researchers have just begun to explore these critical problems,and much remains to be done. Daily issues of more concern to oper-ating level HR practitioners include selection, training, compensa-tion, and performance appraisal. These topics have been much morethoroughly researched, though existing knowledge is not being appliedas well as it could be.

In their 1986 yearly review of human resource management (HRM) for theJournal of Management, Manoney and Deckop identified two different conceptsof the field. These were the "human resource management" focus on an inte-grated set of internally consistent HR policies designed to facilitate organiza-tional performance, and the "personnel administration" focus on rather discreteactivities such as recruiting, training, and compensation. These two approacheshave spawned quite different types of research. The newer strategic human re-source management view often takes the organization or SBU as the unit of anal-ysis, and explores the fit between HR practices and organizations' environmentsand/or strategies. In contrast, research relevant to the traditional personneladministration approach focuses on the individual as the unit of analysis and ex-amines variables such as ability, attitudes, and job performance. Both types ofresearch seem critical to the advancement of the field, and both have made prog-ress in the last 3 years.

Strategic human resource management seems to have taken root primarily atthe corporate level, where top HR executives are becoming more involved instrategy formulation. Once a strategic direction is chosen, HR executives have acrucial role in designing HRM systems that will elicit and reinforce the employeebehaviors necessary to implement the strategy successfully (c.f. Foulkes, 1986;

Address all correspondence to Cynthia D. Fisher, Management Department, University of Baltimore, 1420North Charles Street, Baltimore, MD 21201.

Copyright 1989 by the Southern Management Association 0149-2063/89/$2.00.

157

158 CYNTHIA D. FISHER

Schuler & Jackson, 1987). The first section of this article will explore recent de-velopments in strategy-based contingency views of HRM. The second major sec-tion will address other new and continuing challenges to strategically oriented HRexecutives, such as managing human resources in multinational organizations,dealing with mergers and acquisitions, and downsizing. The third major sectionof this article suggests that the jobs of most operating level HR professionals haveexperienced less change than those of top HR executives and that traditional per-sonnel administration activities still make up the bulk of their duties. Thus, thethird section will review and critique the research on four important areas of HRpracticed at the operating level: selection, training and development, compensa-tion, and performance appraisal. In all three sections, future research needs aswell as recent progress will be discussed.

Strategy-based Contingency Approaches to HRM

A consensus seems to be emerging that most HRM activities can and shouldbe matched to the organization's strategy. Prescriptive articles to this effectabound; empirical studies are substantially more rare. There is not yet a singlecommonly accepted set of strategies upon which recommendations for "match-ing" can be based. Some scholars have adopted Miles and Snow's (1978, 1984)typology of prospector, analyzer, and defender; others prefer Porter's (1985) strat-egies of differentiation and cost efficiency; still others have made HRM policysuggestions depending upon product life cycle models or have developed theirown typology. At this point, the diversity of typologies seems functional. We areat the brainstorming stage of model building, and a variety of interesting ideashave been proposed for each framework. With time and testing, a comprehensivetypology of strategies and associated HR practices should evolve. In the mean-time, HR practitioners in search of guidance can surely find at least one cell inone of the strategy typologies that seems to describe and prescribe for their or-ganization's situation.

Although the frameworks differ somewhat, there is definitely some agreementbetween authors on strategic HRM. Individual articles contain much finer dis-tinctions, but it is possible for the purpose of illustration to group much of theadvice for HR managers around two gross categories of strategy: (a) growth-pro-spector-high-tech-entrepreneurial strategies, and (b) mature-defender-cost effi-ciency strategies. Business units in the former category require creative, inno-vative, and risk-taking behavior; business units in the latter category needrepetitive, predictable, and carefully specified behavior from most of their em-ployees (Schuler, 1986). HRM systems should be systematically different underthe two strategies so as to select appropriate types of employees and then inducethem to behave as needed. For example, growth-prospector-high-tech-entrepre-neurial units typically recruit at all levels from the external labor market to obtainthe high level and changing mix of skills they need. They will ideally appraiseemployees on the basis of results rather than process, will avoid excessive focuson short term results, and will not punish innovative efforts that happen to fail. Alarge part of compensation will be "at risk" in the form of performance incen-

JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989

CHALLENGES IN HRM 159

tives, bonuses, and profit sharing, whereas base salaries will be modest. Mature-defender-cost competitors, on the other hand, will tend to recruit primarily at theentry level and promote from within, appraise on the basis of process (doingthings the right way) and quantifiable short term results, and base compensationon hierarchical wage structures derived by job evaluation. (These generalizationsare based on Balkin & Logan, 1988; Hufnagel, 1987; Olian & Rynes, 1984;Schuler, 1986; Schuler & Jackson, 1987; and Sonnenfeld & Peiperl, 1988.)

The task for researchers in the next several years will be to determine whetheror not firms actually use the HR practices that ostensibly are best suited to help-ing them implement their strategy. Only a few studies have addressed these ques-tions. Fisher and Shaw (1987) found very few of the predicted differences in HRpractices between firms pursuing prospector or analyzer versus defender strate-gies. Schuler and Jackson (1989) found modest differences in some HR prioritiesbetween firms in the growth versus maturity stages and pursuing differentiationversus cost efficiency strategies. However, both studies suffered from measure-ment problems and neither assessed performance.

According to the contingency model, high performing business units should befound to use more strategy-consistent HR practices than low performing unitspursuing the same strategies in the same industry. A small sample study by Cookand Ferris (1986) made a good effort to test this prediction in three industries ex-periencing decline. Representatives of three successful and three unsuccessfulfirms were interviewed for each industry. The successful firms generally weremore proactive in strategic HRM, engaged in better and longer term HR plan-ning, and had better integration across HRM activities. Using a criterion of per-ceived pay system effectiveness, Balkin and Gomez-Mejia (1987) found supportfor their hypotheses that incentive based reward systems were most effective ingrowth stage companies and in high-tech companies.

A great deal more research is needed on strategy-contingent approaches toHRM. Measures of business unit performance must be collected in addition toinformation on strategy and HR practices. One of the greatest needs at this pointis better conceptualization and measurement of HR policies and practices. Nearlyan infinite number of aspects of HR practice could be assessed; the problem isdetermining how and which to measure. The few empirical studies to date haveused homemade questionnaires or interviews for data collection. The relevance,objectivity, comprehensiveness, and reliability of these procedures are unknown,but they may provide a starting point for the development of standardized scalesfor assessing and comparing HRM practices across organizations. In the area ofcompensation, Milkovich (1988) has started in this direction by suggesting sixcompensation policy issues that may have particular strategic relevance.

The idea of strategic human resource management has become clearer and bet-ter developed since the 1986 yearly review, and it does seem to have much to offerin the way of opportunities for research and thought-provoking ideas for practi-tioners. However, a strategic HRM orientation may present problems as well assolve them. For instance, Baird and Meshoulam (1988) have suggested that theHRM function in organizations grows through predictable stages, during whichthe credibility and skills of incumbents and the sophistication of HR systems in-



crease by building upon the groundwork laid down in earlier stages. HRM de-partments that skip a stage often fail while trying to implement new programs be-cause the groundwork is lacking. Thus, HR executives who suddenly decide toadopt new strategy-consistent HRM systems should ask themselves whether theyhave the expertise and infrastructure to do so. For instance, attempting to imple-ment a complex performance-based reward system for R & D employees wouldprobably fail if a well developed and accepted performance appraisal system wasnot already in place.

Other concerns revolve around the idea of whether too much ' 'fit'' will inhibitthe organization's ability to change strategies and elicit different employee be-haviors when the environment changes (Evans, 1986), or how employees andunions will react to changing HRM practices dictated by progress through the lifecycle of a product (Schuler & Jackson, 1989). Schuler and Jackson also point outthe possibilities of perceived inequity if different units of the same organizationoperate under markedly different HR policies in response to their differing strat-egies or life cycle stages. Finally, adopting a set of internally and strategicallyconsistent HR policies may ignore the realities of the external labor market. Othercompetitors for labor may be pursuing different strategies, and may thus offer adifferent and perhaps more attractive mix of compensation, training, and pro-motion opportunities. Thus, strategically sensible policies may need to be tem-pered by the reality of what it takes to attract and keep good employees in a par-ticular labor market.

Further Challenges to HR ExecutivesIn addition to becoming more strategically oriented, top HR executives are

dealing with a number of other trends and challenges brought about by environ-mental pressures and corporate business decisions. These trends include inter-nationalization/globalization, the high rate of mergers and acquisitions, and pres-sures to downsize or restructure the employment relationship in order to reducecosts. In this section, some of the HR implications and research needs associatedwith these business trends are explored.

International HRM

In 1986, a practicing intemational HR manager lamented that "What happensbetween expatriation and repatriation remains a mystery" (Morgan, p. 45). Hesaid that intemational HR managers were working in an information void and hecalled for support from academics through research and courses on intemationalHRM. In fact, academic interest in intemational HRM has been growing rapidlyin the last few years. The joumal Human Resource Management has co-spon-sored two invitational symposia on the subject (in Fontainbleau in 1985 and To-kyo in 1987; see the Spring 1986 and 1988 issues), while an open conference washeld in Singapore in 1987 with another planned for December 1989 in HongKong.' These conferences have produced some good conceptual work, but solidempirical research is still quite rare.

'For more information on the Hong Kong Conference on Intemational Personnel/Human Resources Manage-ment in December 1989, contact Dr. James B. Shaw, Management Department, University of Baltimore, 1420North Charles Street, Baltimore, MD 21201 (301-625-3145).



Much of the writing on intemational HRM seems to deal with two classes ofproblems: exporting people (expatriate selection, training, and career manage-ment), and exporting the HRM function itself. With regard to exporting people,an optimistic view of sending U.S. nationals abroad to work is presented by Jeli-nek and Adler (1988). They found a very low self-reported failure rate among fe-male American expatriates working in Asia. In fact, many women reported thattheir sex was an advantage, in that foreign clients remembered them better, wereless threatened by them, and attributed greater competence to them in comparisonto male expatriates. In a separate survey, Jelinek and Adler found that U.S. per-sonnel managers mistakenly believed that female professionals did not want towork abroad and would not be successful abroad, particularly in countries werelocal women experience employment discrimination. In light of this evidence,U.S. firms would be well advised to evaluate their intemational staffing proce-dures for disparate treatment and adverse impact.

In contrast to Jelinek and Adler's findings, most research on expatriate em-ployees suggests that the failure rate is quite high, and a recent book by Tung(1988) reports that the failure rate of U.S. expatriates is substantially higher thanthatof European or Japanese expatriates. Mendenhall, Dunbar, and Oddou (1987)give a possible reason for this dismal record: most organizations still select ex-patriates on the basis of technical competence alone, ignoring other predictors ofsuccess such as language skills, fiexibility, and adaptability of the family.

Pucik and Katz (1986) suggest a contingency approach to expatriate selectioncriteria, based on the type of information and control required by the job. Whenjobs are largely technical, information is objective, and control is bureaucratic,they suggest that organizations can select technically competent outsiders for rel-atively short tours to foreign subsidiaries. However, for longer term assignmentsin posts where social information and normative control are more important, longtime insiders steeped in the organization's culture are recommended as more ef-fective both working in the subsidiary and communicating what they leam backto headquarters. Doz and Prahalad (1986) have also discussed differences amongexpatriate management positions, noting that some are essentially domestic po-sitions, concemed with operations in a single (foreign) country, whereas otherstruly are global in scope. They suggest that managers be purposefully rotatedthrough both kinds of positions to leam how to be sensitive to local conditions aswell as to maintain a corporation-wide or global perspective.

These contingency views seem to be a step in the right direction, away fromthe simplistic orientation of the 1970s that "working abroad is working abroad."More systematic research on the dimensions of intemational jobs and the skillsrequired for each seems needed as a first step toward designing effective expa-triate selection systems and furthering the systematic development of global ex-ecutives via training and job experience.

A second area of research concems the extent to which the HRM practices ofa firm's home country can or should be transferred to its foreign locations. Lau-rent (1986) points out that HR practices and philosophies are deeply grounded inthe surrounding national culture. Parent country managers often do not perceivethis, and believe that practices which are effective in their own culture will be



universally applicable. Further, parent country HR managers may desire to applyconsistent HR practices across nations in the interest of fairness or to promote asingle organizational culture. However, the same practices (e.g. a participativeappraisal interview), might convey an entirely different and perhaps unintendedmeaning in another culture. International HRM calls for a delicate balancing actbetween parent and host country preferences and between the desire for globalconsistency and the need for differentiation across cultures (Laurent, 1986, p.97).

Research on these issues is just beginning. For instance. Von Glinow and Tea-garden (1988) offer some interesting ideas on the problems of transferring U.S.HRM practices to joint ventures in China in light of differing cultural assump-tions and host country managers' fears of rapid change. They conclude that thetransfer of "soft technology" such as management and HR systems is extremelydifficult, but is necessary to support the successful transfer of hard technology.Ishida (1986) has collected questionnaire and interview data on the extent towhich traditional Japanese HRM practices and values are implemented in over-seas subsidiaries run by Japanese managers. He concludes that some practices,like employment security, continuous training, promotion from within, and acommunity orientation, transfer relatively well, whereas others, like groupism,flexible job behavior, and low turnover, do not. Further, Japanese-style HRMseems better accepted by blue collar workers than by middle managers at overseasinstallations.

Lorange (1986) discusses four types of cooperative ventures, and notes thateach requires a different type and amount of HRM transfer from the parent com-panies. For instance, when a process is licensed to a foreign organization, therole of HRM may be limited to identifying and preparing a few technically com-petent expatriates. When the venture is a jointly owned but free-standing, on-going organization, it will require its own full service HRM unit, which will haveto choose practices satisfactory to both parent firms as well as the host country.

Further research on the trans-national generalizability of HRM assumptionsand practices is badly needed. Concurrently, it will be helpful to explore the ex-tent to which global consistency in practices is necessary. Tolerating diversityacross sites, at least in some areas of practice, may be more effective.

Mergers and AcquisitionsThe number of mergers and acquisitions has risen substantially in the last few

years, as has awareness ofthe HR executive's role in facilitating post merger suc-cess. The fact that a great many mergers and acquisitions fail to live up to expec-tations is often attributed to improper management of the human component(Bastien, 1987). A number of articles have appeared in practitioner journals sug-gesting how the existing research on stress and stress management can be appliedto help employees cope with an impending or recently consummated merger(Hunsaker & Coombs, 1988; Ivancevich, Schweiger, & Power, 1987; Marks &Mirvis, 1985), or on how organizational development techniques can be used tohelp clarify and then integrate the cultures of the two firms (Marks & Cutcliffe,1988). Another set of highly applied articles has encouraged practitioners to be-come more proactive in assessing likely problems prior to an acquisition. They



suggest that HR professionals can provide critical expertise in assessing the pen-sion and benefit liabilities to be incurred, the extent of unique skills versus re-dundancy in the employee population of an acquisition target, or potential prob-lems with existing labor agreements (Baytos, 1986; Manzini & Gridley, 1986).Immediate attention to executive compensation in the acquired firm also may benecessary to facilitate the retention of the management expertise that made thetarget attractive in the first place (Ferracone, 1986). Another segment of the lit-erature (to be discussed in the next section of this paper) addresses the impact ofthe reductions in force that often accompany mergers and acquisitions.

Scholarly research on human resource issues in mergers and acquisitions isstill relatively rare and tends to use the case study approach. As a starting point,this type of research can be interesting and useful. For instance, Bastien (1987)presents an interview study of the communication patterns and perceptions of keyactors over time in three acquisition situations. However, larger sample hypoth-esis-testing studies are also needed. Independent variables might include the ex-tent of job loss, the similarity/dissimilarity of strategies or cultures, the degree ofdevelopment of the HRM functions (using the typology of Baird & Meshoulem,1988), and whether or not the organizations use the same or different career sys-tems (using the typology of Sonnenfeld & Peiperl, 1988). Dependent variablescould run the gamut from profits to individual performance, attitudes, and turn-over. Moderate variables might include the extent of HR involvement and influ-ence prior to the ownership change and the degree of autonomy granted to the ac-quired firm. For instance, one might hypothesize that mergers betweenorganizations sharing the same strategy, level of HR development, and career sys-tem would be most successful, but that similarity on these dimensions would berelatively less important to success when the acquired firm is allowed a great dealof autonomy or when HR issues have received sufficient attention from the verybeginning of the transaction. Research of this sort may help to identify when dif-ferences in HR approaches are likely to be problematic in a merger or when HRhas a particularly crucial role to play in facilitating the success of a change inownership.

Downsizing and the Rise of Alternative Employment RelationshipsAs a result of foreign competition or acquisition, many U.S. organizations

have been forced to cut costs and reduce size: that is, to become "lean andmean" in order to survive. One consequence of this trend is substantial reduc-tions in force among both blue collar and managerial/professional employees.Several articles have explored strategies for reducing the size of the work force.McCune, Beatty, and Montagno (1988) found that layoffs were by far the mostcommon downsizing strategy used, mainly because HR managers in their sampletypically had less than 2 months in which to plan and carry out the reduction inemployment levels. They suggest that HR managers become more expert andproactive in monitoring product life cycles, the business environment, and orga-nizational strategy in order to anticipate needed staff changes farther in advance.Given some advance notice, HR managers can make use of the comprehensivetypology of work force reduction strategies and suggestions on when to use eachprovided by Greenhalgh, Lawrence, and Sutton (1988).



Joel Brockner and his colleagues have pioneered research on the flip side oflayoffs—the reactions of retained employees to a reduction in force (Brockner,1988; Brockner, Grover, & Blonder, 1988; Brockner, Grover, Reed, DeWitt, &O'Malley, 1987). In a series of lab and field studies, they have shown that "sur-vivor guilt" can lead to increased performance among layoff survivors undersome conditions, that employees with a strong work ethic may increase their jobinvolvement after mild layoffs, and that preexisting stress levels affect reactionsto layoffs. As expected, procedural justice and generous treatment of separatedemployees by the firm seem to have positive effects on survivors. More detail andan agenda for further research on survivor effects are given in Brockner (1988).

In the wake ofthe downsizing, employers are devising new ways to meet theirneed for labor. Often this includes a smaller core of permanent employees plus afiuctuating number and type of less permanent quasi-employment relationships.Pfeffer and Baron (1988) present a fascinating look at obtaining labor via tem-porary agencies, free-lance professionals, part-time employees, employee leas-ing, subcontracting of work, and at-home workers. They contend that employer-employee bonds are weakening along the dimensions of physical proximity, ad-ministrative control, and duration of employment. Their views are borne out bythe increasing number of articles on these alternative staffing arrangements ap-pearing in the HRM practitioner journals (c.f. Halcrow, 1988; Munchus, 1988;Simonetti, Nykodynm, & Sell, 1988).

Pfeffer and Baron (1988, p. 257) contend that "understanding the growth ofexternalized forms of labor contracting and why employment relations vary overtime, industry, and geographic context should be one ofthe primary tasks ofscholars interested in organizations.'' Their chapter goes on to suggest the manyways in which changing employment relationships may affect the job attitudesand careers of such partially included workers, the skills needed by managers oftemporary or free-lance employees, and the relative roles of internal and extemalequity in determining compensation for such a work force. If these trends con-tinue, a clear need for more research on the impact of alternative employment re-lationships exists.

Operational HRM Issues

As described above, the jobs of corporate HR executives seem to be expandingrapidly in terms of content and influence in the organization. However, most HRpractitioners are not in the executive ranks. Operating level HR managers makeup the bulk of the profession and tend to be involved more in implementing poli-cies than in formulating them. A recent study by Tsui and Milkovich (1987) sug-gests that the job of operating-level HR manager has yet to experience the devel-opment seen at higher levels. They surveyed four constituencies withinorganizations that hold expectations about the activities of operating-level HRMdepartments. Respondents rated the importance of 73 HRM activities, whichwere grouped for analysis into eight dimensions. Although there were significantdisagreements between constituencies on the importance of some dimensions,the overall mean importance of activities was as follows:

1. administrative service (orient new hires, communicate information aboutbenefits, etc.),



2. compensation/employee relations (including implement fair pay and ap-praisal systems),

3. policy adherence (assure equitable administration of discipline and otherpolicies),

4. legal compliance,5. employee support (administer benefits, EAPs),6. organization and employee development,7. staffing/HR planning,8. labor relations.This list sounds very much like what Mahoney and Deckop labeled the dated

"personnel administration view" in their 1986 review. Nevertheless, these nutsand bolts activities will continue to be an important and necessary part of thepractice of HRM. Perhaps the next yearly review will be able to report that a stra-tegic orientation has filtered down to the operating level to integrate these stillsomewhat independent sets of activities. However, even a strategic orientationseems unlikely to alter the basic mechanics of these activities. Rather, strategymay dictate the amount of the activity and some of the criteria against which theactivity is evaluated. For example, in the selection area, strategy may dictatemore or less focus on internal versus extemal recruiting and may affect the be-havioral criteria against which selection devices are validated. But effectivelydistinguishing good from poor candidates will still be the goal. Similarly, in thetraining area, strategy may affect the make-or-buy decision for skills and thus theamount of training provided by the organization, and may affect the specific con-tent to be taught. However, needs assessment, appropriate training design, trans-fer of training to the job, and training evaluation will remain crucial componentsof an effective training process. In compensation, the basic goals of motivatingorganizational membership and high performance, however the latter is defined,will not change. In addition, issues of perceived fairness and pay equity will notgo away, regardless of strategy. Finally, in the area of performance appraisal,strategy may dictate the performance dimensions assessed and the time frame ofthe assessment (cf. Kerr, 1988), but fair and job-related assessment with effec-tive feedback mechanisms will still be necessary. In the next sections of the pa-per, I will focus on research progress and needs in these four basic HRM activi-ties.

Employee SelectionEmployee selection has always been viewed as an extremely important area by

industrial psychology researchers. The largest number of articles appearing inHRM research journals during the 3-year span of this review concemed some as-pect of selection (from specific selection techniques to validation and validitygeneralization to utility issues). However, in the Tsui and Milkovich (1987) sur-vey, selection was rated very low in importance compared to other HR functions.This is quite unfortunate, and probably flows from (a) a lack of understanding ofthe large and quantifiable savings and increases in productivity that can be real-ized from a good selection system (c.f. Schmidt, Hunter, Outerbridge, & Tratt-ner, 1986), and (b) the fact that selection procedures in many organizations arefar from ideal given the current state of knowledge in the area.



There has been a good deal of progress in selection research in the past fewyears. One case in point is interviewing. New techniques for structured panel in-terviews have been found to yield quite good predictive validities. Both situa-tional interviews ("What would you do if ?" questions with keys based onmanagerial consensus) and behavior description interviews ("Tell us about thetoughest sale you ever made.") are showing great promise (Arvey, Miller, Gould,& Burch, 1987; Campion, Pursell, & Brown, 1988; Janz, Hellervik, & Gilmore,1986; Weekley & Gier, 1987). In addition, the validation designs of most past in-terview studies have recently been criticized for inappropriately collapsing dataacross interviewers (Dreher, Ash, & Hancock, 1988), and more innovative de-signs have shown that some interviewers are highly valid while others make con-sistently poor decisions (Dougherty, Ebert, & Callender, 1986). These findingshave quite direct implications for the selection of interviewers and the design ofinterview procedures in today's organizations.

The predictive validity of assessment centers has also been reaffirmed by ameta-analysis (Gaugler, Rosenthal, Thomton, & Bentson, 1987), but doubt stillremains about the construct validity of assessor ratings. Although assessorssomehow capture valid variance in their ratings, they do not seem able to accu-rately judge whether assessees possess the specific traits or managerial skills thatthe center is designed to tap (Bycio, Alvares, & Hahn, 1987; Klimoski & Brick-ner, 1987).

There seems to be a resurgence of interest in personality as a predictor or mod-erator of behavior in organizations. Adler and Weiss (1988) make a strong casefor the importance of personality in predicting a wide range of behaviors, espe-cially in less structured work settings that permit the expression of individual dif-ferences. One relatively unstructured job might be CEO, and there is growing in-terest in selecting top managers whose personality and skills fit the strategic roleassigned to their unit (cf. Gupta, 1986). One method used to evaluate fit is in-dividual assessment by a clinical or industrial psychologist. Rigorous validationstudies of individual assessment are likely to remain rare, but a survey by Ryanand Sackett (1987) provides a start towards finding out how, when, why, and bywhom individual assessment is practiced.

Day and Silverman (1989) note that many jobs contain both a technical com-petence component and an interpersonal component. In a predictive validationstudy of accountants, they found that cognitive ability measures predicted ratingsof technical competence, and personality dimensions chosen on the basis of athorough job analysis were significant predictors of the more interactive aspectsof job performance. For lower level jobs, a few studies have found that personalitytest scores interact with ability or situational factors to predict performance (Hol-lenbeck & Whitener, 1988; Knight & Nadel, 1986). Additional evidence suggeststhat personality characteristics such as need for achievement may become signif-icant predictors of performance only after several months of job experience,whereas ability measures are the best predictors during the early job learningstage (Helmreich, Sawin, & Carsrud, 1986). These findings may partially vin-dicate HR practitioners' long standing conviction that somehow personality mat-ters, despite its historically poor showing in validation research.



An improved understanding of the relationship of experience to job perform-ance also seems likely to lead to better selection systems in the near future. Al-though experience is often used as a screening device, it is seldom empiricallyvalidated. However, a recent meta-analysis documented that years of experienceis a significant predictor of performance and is particularly predictive amonggroups with relatively low mean levels of experience and on jobs with lower cog-nitive demands (McDaniel, Schmidt, & Hunter, 1988a). Progress has also beenmade in understanding how applicant experience can best be assessed (Mc-Daniel, Schmidt, & Hunter, 1988b).

In the area of ability testing, research on validity generalization continues tosuggest that general cognitive ability is a robust predictor of the acquisition of jobknowledge and of subsequent job performance (Hunter, 1986). Carrying this ar-gument to its controversial extreme suggests that the measurement of job-specificabilities and the construction of different selection systems for jobs with some-what different content may not be necessary, a position clearly at odds with thepresent Uniform Guidelines on Employee Selection Procedures. Numerous arti-cles criticizing the statistical methods used to establish validity generalizabilityhave appeared in the last few years, and the status of this technique is not yet re-solved. Nevertheless, U.S.' Employment Service offices in several states are nowsuccessfully using a validity generalization-based system in which five weightedGATB composite scores are used for referral to openings in five broad job classes(Madigan, Scott, Deadrick, & Stoddard, 1986).

The selection practices of many organizations have been affected by the re-cently enacted federal ban on the use of polygraph tests for employment. Em-ployment managers are tuming to other methods in an attempt to screen out jobcandidates likely to steal, and in consequence, paper and pencil honesty tests andeven graphology seem to be increasing in popularity (Gorman, 1989). A longstring of studies, most recently by Ben-Shakhar, Bar-Hillel, Bilu, Ben-Abba, andFlug (1986), show zero validity for graphology. On the other hand, a review bySackett and Harris in 1984 suggests that carefully developed honesty tests are re-liable and show modest but significant validities against a variety of theft criteria.However, the problem that was largely responsible for the banning of the poly-graph, the high rate of false positives, also seems to plague paper and pencil hon-esty tests. Of test takers, 40-50% "fail"; usually a much smaller percentage ac-tually steal from their employer (Bales, 1988).

Drug testing has also become an issue of great concem. The Supreme Courthas recently upheld drug testing programs for drug enforcement officers, and fortrain crews after accidents. It is unclear what position the Court will eventuallytake on the legality of mandatory drug testing for applicants and/or present em-ployees in the private sector, but many companies have recently adopted the prac-tice. Although prescriptive articles abound in practitioner joumals, dmg testinghas attracted very little research attention. A survey of HRM executives byGomez-Mejia and Balkin (1987) indicates that dmg testing programs perceivedto be effective are accompanied by supervisor training, drug awareness pro-grams, and efforts to rehabilitate employees found to be users. McDaniel (1988)has pioneered the predictive validation of dmg use measures. Relationships be-



tween self-reports of drug use prior to enlistment and subsequent discharge forunsuitability were investigated in a large military sample. Correlations were dis-appointingly low (< .10) but were significant. Further research on the predictivevalidity of drug tests and self-reports of drug use against performance and acci-dent criteria are badly needed to justify the use of these procedures in selection.

For more thorough reviews of research on selection and placement, the readeris referred to Guion and Gibson (1988), Murphy (1988); and Robertson and lies(1988). Two books have also recently appeared on the subject. Human ResourcesSelection by Gatewood and Feild (1987) and the second edition of Staffing Or-ganizations by Schneider and Schmitt (1986).

Training and DevelopmentAt the operational level, training and development activities were ranked sixth

in overall importance of eight HRM functions in Tsui and Milkovich's survey.Despite this relatively low ranking, U.S. organizations spent an estimated 32 bil-lion dollars on training costs (exclusive of trainee salaries) in 1987 (Geber, 1987).Even small improvements in training effectiveness could have considerable utilitygiven this high expenditure. There does seem to be a great deal of room for im-provement, as indicated in a recent survey of management training practices bySaari, Johnson, McLaughlin, and Zimmerle (1988). Common weaknesses werelack of needs assessment (only 27% of the responding organizations systemati-cally assessed training needs); lack of evaluation, especially of out-of-housetraining; and near complete absence of programs to facilitate transfer and reten-tion after training.

On the bright side, HRM researchers seem to be broadening their interests intraining well beyond the preoccupation of the 70s and early 80s with behaviormodeling training. For instance, a new thrust in training research focuses ontrainee motivation and how it affects training success. Articles looking at self-efficacy perceptions (Gist, 1987), trainee attitudes, job involvement, and careerplanning activities (Noe, 1986; Noe & Schmitt, 1986), and the use of self-as-sessments of training needs (Ford & Noe, 1987; McEnery & McEnery, 1987) allhave implications for building trainee motivation and improving training success.Several large sample field studies of the impact of pretraining variables (such astested ability, prior performance, and interjob similarity) and course characteris-tics on training success are adding to our understanding of leaming in organiza-tions (Dunbar & Novick, 1988; Gordon, Cofer, & McCullough, 1986; Mumford,Weeks, Harding, & Fleishman, 1988). Transfer of training is finally getting theattention it deserves, in articles by Baldwin and Ford (1988) and by Russell andWexley (1988). An area still in need of attention is training for employees priorto overseas assignments. Only one true experiment in this area appeared in thejournals between 1986 and 1988: a comparative study by Earley (1987) of twomethods of intercultural training to prepare employees for a short tour in Korea.

An aspect of management development that is rapidly growing in importanceis succession planning. HR executives are increasingly involved in the design ofsystems to assess, select, and develop internal candidates for promotion to thehighest executive ranks in the organization (Beatty, Schneier, & McEvoy, 1987).One survey found that 68% of 1000 large firms had succession planning systems



for top executives, and 18% of the responding firms said that their systems hadbeen adopted within the last 2 years (Friedman, 1986). Friedman went on to ex-plore the relationships between succession system characteristics and organiza-tional reputation and financial performance. He found that successful firms hadsuccession systems that differed from those of less successful firms. The formerinvolved HR managers in the supportive role of developing background infor-mation on candidates and development opportunities, while line managers wereheld directly accountable for planning and carrying out the development of theirsubordinates. Effective systems were not necessarily formal, but containedchecks and balances, and (contrary to the hypothesis) did allow for the consid-eration of political issues such as loyalty and the personal values of successioncandidates.

Hall (1986) suggests that organizations need "strategic development plan-ning," in which the dimensions of managerial potential assessed in the succes-sion system are derived from the organization's present or future strategy, ratherthan from a generic typology of management skills. Further, he contends that de-velopment for top executives has been absent or misdirected, and that it shouldfocus more on the "personal leaming" aspects of the midlife stage than on tech-nical or interpersonal skills. Personal leaming "involves the self-reflective proc-ess of examining and possibly changing one's attitudes and identity" (p. 253). Itrequires active and experiential learning methods—quite the opposite of themethods and content offered in most upper management training programs.

For more details on management training, readers are referred to a meta-anal-ysis of the effectiveness of various management training techniques by Burke andDay (1986) and an article on current trends and issues by Keys and Wolfe (1988).More general reviews of the literature on training and development are providedby Goldstein and Gessner (1988) and by Latham (1988).

CompensationResearch on compensation has been proceeding on several fronts. As men-

tioned in the introduction, strategic compensation has emerged as an area of in-terest. Gomez-Mejia and Welboume (1988) provide an excellent review of the lit-erature and issues in strategic compensation. Their article appears in a specialissue of Human Resource Planning devoted to this topic.

The major concem of strategic compensation is to design reward and appraisalsystems that elicit desired and necessary behaviors from employees who are crit-ical to the organization's success. For instance, Newman (1988) discusses theimportance of motivating boundary spanners to sense and transmit new infor-mation about the environment in organizations in declining industries. In agrowth or start-up situation, a major concem is motivating innovative and entre-preneurial behavior, openness to change, and willingness to take risks (Balkin,1988; Balkin & Logan, 1988; Hufnagel, 1987). Most writers in this area recom-mend relatively low base salaries to keep fixed labor costs low, supplemented byprofit sharing and individual and group pay-for-performance plans. More gener-ally, there seems to be a trend toward greater individual accountability for per-formance, with pay for performance systems being one visible manifestation ofthis trend. However, dissatisfaction with traditional merit raise plans also seems



high, and new ways to link pay and performance are appearing in the literature.Yearly bonuses based on performance are being touted as an alternative to theproblems inherent in merit raise systems. Critics contend that merit pay focusestoo much on the size of the raise rather than the amount of total compensation,perpetuates differences in pay based on past rather than present performance, andcreates perceived inequities for good performers too near the top of their range toreceive the large raises they feel they deserve. By keeping base salaries relativelylow and even, allowing substantial performance based bonuses, and suggestingthat performance is related to total compensation rather than size of raise, bonussystems can potentially increase the equity and motivational impact of pay (Whit-ney, 1988a, 1988b).

However, even the most elegantly and strategically designed compensationplan will fail if it is not implemented properly. A growing body of research incompensation focuses on how pay allocation decisions are actually made by man-agers. The results ofthe allocation studies suggest that compensation decisionsoften are not made in the fair and consistent manner specified in pay policies. Forinstance, in a policy-capturing study of 11 managers from the same organization,Sherer, Schwab, & Heneman (1987) found sizable individual differences in theweights given to five factors (performance level, performance consistency, ten-ure, current pay, existence of a competing job offer), in determining salary raises.Markham (1988) found group level but not individual performance effects onraise levels in what was supposed to be an individual merit pay system. Henemanand Cohen (1988) found that only 24% of the variance in subordinate raises wasattributable to subordinate characteristics and behavior, and a surprising 11% wasdue to supervisor characteristics, in particular, the size ofthe supervisor's lastraise. Finally, Bartol and Martin (1988) have suggested that pay allocation deci-sions may be affected by the amount of dependence of the superior upon subor-dinates, and the extent to which that dependence is threatened. Raises may begiven almost as bribes to subordinates on whom the supervisor is dependent, inorder to induce them to continue to fulfill their roles. Further research on actualpay allocation decisions may help span the gap between formal compensationsystem design factors and subsequent employee perceptions of and satisfactionwith the system.

Research has also continued on the wage gap, gender-based occupational seg-regation, and possible sex bias in job evaluation (c.f. Arvey, 1986; Pfeffer &Davis-Blake, 1987). Despite the lack of federal action on comparable worth un-der the Reagan administration, several states and a number of cities have passedlaws requiring equal pay for jobs of comparable worth among public employees.Practitioners are quietly forging ahead in attempts to develop compensation sys-tems to comply with these laws (Olney, 1987a, 1987b), while researchers pointout the remaining unsolved problems.

For instance, Madigan and Hoover (1986) found that the job evaluation methodchosen strongly affects the resulting pay structure. Because there is no ultimatecriterion of fairness or job worth, they suggest that choosing one job evaluationsystem over another is essentially a value judgment. Mahoney (1987, p, 209) con-curs: "The process of job evaluation can accommodate any criterion of job



worth, but is dependent upon some prior consensus of relative job or occupationalworth. Achieving consensus is primarily a political task." Even given a job eval-uation system acceptable to all parties, there are at least five different and equallydefensible ways of converting job evaluation points into wage levels to achievepay equity (Arvey & Holt, 1988). Quite different compensation systems for thesame set of jobs could be developed and presented as "fair" under our existingunderstanding of pay equity issues. Additional research that compares and con-trasts the perceived fairness, statistically evaluated fairness, and costs of differentapproaches to job evaluation and wage structure pricing are needed. This type ofresearch may eventually provide the basis for consensus on how to construct gen-der-blind compensation systems that satisfy employers, unions, women'sgroups, and the courts.

Performance AppraisalPerformance appraisal has continued to receive attention in practitioner jour-

nals, though a survey by Bemardin and Klatt (1985) suggests that the state ofpractice lags far behind the state of knowledge in this area. Performance appraisalhas also been an extremely popular topic for research in the past few years. It wasthe most common topic among papers submitted to the P/HRM Division of theAcademy of Management for the 1988 Annual Meeting (Bemardin, 1988), andwas the second most frequently occurring HRM topic in my reading of HRM re-search journals since the beginning of 1986. Much of this research was done inthe laboratory, using students as subjects.

Laboratory Research on Performance Appraisal. The majority of the manylaboratory studies on performance appraisal have followed a similar procedure:students view short videotapes (or read paper descriptions) of the performance ofa single stimulus person and then make ratings of performance. There are nocompeting tasks to distract attention from the performance stimulus, and ratingsare made immediately or after a 1 or 2 day delay. Results are analyzed in terms ofthe amount of halo and leniency error in rating, the accuracy of ratings with re-spect to a "true score" of performance generated by expert-rater consensus, andthe degree of systematic bias in the recall of performance incidents.

The purposes of this research have been to explore (a) the biasing effect of fac-tors such as intelligence, liking for the ratee, mood, stress, knowledge of ratee'sprior performance, familiarity with the ratee's job, and pattem and level of rateeperformance on the encoding, recall, and rating of performance, (b) the extent towhich various models of rater cognitive and schematic processes seem to de-scribe the information acquisition, memory, and integration processes of raters,and (c) the extent to which true covariation among rating dimensions affects per-ceived covariation or halo (cf. Cardy & Dobbins, 1986; DeNisi & Williams,1988; Krzystofiak, Cardy, & Newman 1988; Murphy & Balzer, 1986; Sinclair,1988; Smither, Reilly, & Buda, 1988; Srinivas & Motowidlo, 1987).

Lab studies usually attempt to determine how accurately individuals can rateunder a variety of near-ideal circumstances. This is an interesting and appropriatearea of study for cognitive psychologists. However, there are some problems withapplying this research directly to performance appraisal in organizations. First,as Funder (1987) eloquently points out, judgment' 'errors" are not the same thing



as "mistakes." Errors are defined as deviations from a true score or from a cor-rect normative judgment model specified by the researcher in the artificial envi-ronment of a laboratory. Mistakes, on the other hand, are "incorrect judgementsin the real world. .. .What is wrong in relation to a laboratory stimulus, taken lit-erally, may be right in terms of a wider, more broadly defined social context, andreflect processes that lead to accurate judgments under ordinary circumstances"(Funder, 1987, p. 76). Rater errors such as halo and primacy effects represent in-correct judgements in the lab when raters have been exposed to an artificial se-quence of performance information such as a partially "good" lecture tape fol-lowed by several predominantly "average" or "poor" tapes of the sameperformer. However, in the real world there probably is much greater performanceconsistency over time and across dimensions within ratees. Thus, judgment heu-ristics that result in halo and primacy errors in the lab may not be mistakes in thereal world, but may in fact be functional in producing correct ratings most of thetime.

The second problem with focusing purely on maximizing accuracy and reduc-ing error under highly artificial lab conditions is that it ignores the political andmotivational issues facing raters in organizations. Even if raters are capable ofrating accurately, there is no guarantee that they will choose to do so. In fact, twosurveys of actual raters suggest that rater behavior is highly calculative and thataccuracy is one of the least important factors considered. Bemardin and Villa-nova (1986) found that superiors, administrators, and subordinates believed thatratings were often inflated to avoid confrontations with subordinates, to pleasecertain employees, or because raters feel ill at ease in evaluating others. Longe-necker, Gioia, and Sims (1987) interviewed 60 executives and found that politicalconsiderations were nearly always involved in making performance appraisal rat-ings. Executives consciously used the appraisal process to attain desired endssuch as to obtain a larger merit raise for a subordinate, encourage a subordinatewith personal problems, teach a rebellious subordinate a lesson, jolt a subordi-nate into performing up to his or her potential, or the like. According to one in-terviewee, "Accurately describing an employee's performance is really not asimportant as generating ratings that keep things cooking" (p. 185).

Despite these legitimate criticisms, applied suggestions based on laboratoryresearch on performance appraisal are starting to appear. For instance, knowl-edge of rater schemas and cognitive processes has implications for rater training,diary keeping, and the design of rating systems to match the cognitive demandsof the task (DeNisi & Williams, 1988; Feldman, 1986). In addition, the cognitiveprocesses first explored in connection with performance appraisal, albeit inhighly artificial settings, are now being used to understand about other judgmen-tal tasks in HRM, such as making interview decisions (Eder & Buckley, 1988),assigning assessment center ratings (Silverman, Dalessio, Woods, & Johnson,1986; Zedeck, 1986), and assessing training needs in subordinates (Russell &Wexley, 1988). However, an important future task in performance appraisal re-search must be to transfer successfully the laboratory research of the 80s to theorganization of the 90s. Some recent field studies are leading the way.

Field Research on Performance Appraisal. As an example, progress in under-



Standing the ways superiors actually conceive of performance has been made infield studies. Borman (1987) and Hauenstein and Foti (1989) have worked onidentifying "folk theories" or consensual prototypes and schemata for judgingemployee effectiveness in specific jobs. Theoretically, raters who share the sameperiformance schemata should observe, recall, and evaluate performance simi-larly, especially if the rating instrument contains the same dimensions and defi-nitions that they intuitively use in assessing subordinates. The techniques pi-oneered by these researchers allow for the identification of raters withidiosyncratic schemata, and it is these individuals who might benefit most fromframe-of-reference training based on the dominant performance schemata.

Tziner and Kopelman (1988) report a field experiment that showed behaviorobservation scales were superior to graphic rating scales for producing higher lev-els of goal clarity, goal acceptance, and goal commitment among subordinates.Working with actual ratings in a large public sector organization, Schoorman(1988) found evidence of escalation of commitment biases (c.f. Staw, 1987) inperformance appraisal. Specifically, raters who had been involved in a decisionto hire or promote an employee later rated the employee higher if they had agreedwith the decision and lower if they had opposed it than superiors who had not par-ticipated in making the initial decision. Although there may be some intemal va-lidity problems with field research such as this study, the probability of generat-ing fairly reliable knowledge that is relevant and useful seems to suggest that wemove in the direction of more field work in performance appraisal.

A promising research area that seems to be making a comeback of late is self-assessment. Researchers are realizing that most employees hold rather strongviews about their own performance, even if these views are not highly correlatedwith assessments by others (Harris & Schaubroeck, 1988). The genesis of self-assessments as well as the implications of superior-subordinate disagreementseem to offer many interesting theoretical and applied possibilities for research(c.f. Ashford, 1989; DeGregorio & Fisher, 1988; Hauenstein & Foti, 1989;Pearce & Porter, 1986; Shaw & Fisher, 1988). Campbell and Lee (1988) suggestthat self-assessment might play a greater role in planning for employee develop-ment than in traditional perlFormance evaluation, but Farh, Werbel, and Bedeian(1988) found that it was possible to integrate a large self-assessment componentinto an appraisal system for professors.

Feedback. Improving the appraisal interview and feedback process is an im-portant and applied area that has attracted a fair amount of research over the pastdecade. For instance, we know that participative appraisal interviews are usuallypreferred to nonparticipative feedback sessions. The last few years of researchhave added to this body of knowledge, particularly in terms of appraisal interviewcontent. Baron (1988) found that destructive criticism was much less effectivethan constructive criticism that was specific, considerate, and did not attributepoor performance to intemal causes. Bannister (1986) also determined that neg-ative feedback was seen as more accurate and helpful if accompanied by extemalrather than intemal attributions. Even though negative feedback can be helpful,two studies have confirmed earlier findings that superiors tend to delay and some-



times to distort their ratings when faced with the task of conveying negative feed-back (Benedict & Levine, 1988; Larson, 1986).

Another content issue is whether or not to discuss salary raises in the appraisalinterview. Conventional wisdom, dating from a 1965 study by Meyer, Kay, andFrench, suggests that this subject is emotionally charged and detracts from a pro-ductive discussion of past and future performance. However, two recent studieshave found that the discussion of merit pay is either positively related or unrelatedto appraisal outcomes such as satisfaction with the appraisal, perceived partici-pation, and work planning (Prince & Lawler, 1986; Dorfman, Stephan, & Love-land, 1986). These field study results contain a possible confound, in that ap-praiser skill may have caused both the favorable appraisal outcomes and thethorough appraisal discussion (including compensation issues). On the otherhand, there is no remaining justification for suggesting that salary issues be ex-cluded from the performance appraisal discussion.

Conclusions

The role of the HR executive seems to be changing and growing rapidly. Min-imizing HR costs while motivating strategy-appropriate behavior is the goal, andthis goal must often be accomplished in a confusing multi-cultural environ-ment—either across national cultures, or across organizational cultures follow-ing mergers. At the present time, researchers are providing only limited guidancefor HR executives facing these new challenges. Conceptual papers have begun toappear, and some empirical research on strategic HRM has been reported. How-ever, a research-practice gap clearly exists, with research lagging behind the cur-rent needs of practicing HR executives. The gap will not be easy to fill, as thequestions to be investigated are complex, definition and measurement issues aredifficult, and problems with obtaining samples are daunting. Few of the newchallenges can be addressed anywhere but in the field, and most require cross-organization samples, with the organization being the unit of analysis rather thanthe individual. Nevertheless, the potential for exciting and useful research is sub-stantial.

Although HR activities at all levels should be consistent with each other andalso with the organization's strategic goals, traditional activities such as selec-tion, training, compensation, and appraisal are still the bread and butter of op-erating level HR managers. In these areas there is also a research-practice gap,but for the most part it runs in the other direction. The state of practice in mostorganizations lags far behind the state of knowledge. This is particularly true foremployee selection. Despite a flurry of research activity, utility models remaintoo complex for application by most practitioners. Thus, the potential payoffsfrom improved selection are neither estimated nor realized. Proven techniquesthat can be applied immediately include the situational and behavior descriptioninterviews and systematic methods for evaluating past job experience. Validitygeneralization, if it stands up to statistical and legal challenges, offers practition-ers the opportunity to use ability tests for screening without bearing the costs ofan in-house validation study.

In the area of training, the importance of developing trainee motivation, com-



mitment, and high efficacy expectations prior to training seems indisputable. Theresearch on transfer of training should also be incorporated into training programdesign.

In compensation, the new strategic orientation suggests improved ways of de-fining and rewarding appropriate behavior, and research on superiors' actual re-ward allocations has shed light on why merit raise decisions are often perceivedas less than completely fair. For the practitioner, this research may suggest thatadditional supervisory training is needed, or that a shift to more objective meansof determining rewards might be preferable.

With regard to performance appraisal, a great deal of research on rater cogni-tive processes, rater training, and performance schemata has been accomplished.This research is starting to result in solid suggestions for practice, such as con-structing rating scales based on shared performance schemata and providingframe of reference training for raters with discrepant schemata. This should in-crease the ability to rate accurately. The motivation to rate accurately is anotherissue altogether, but researchers are beginning to catch up to practitioners in theirunderstanding of this phenomenon. Finally, research on the performance ap-praisal interview has banished the 20-year-old caution against discussing salaryactions in the developmental appraisal interview.

References

Adier, S., & Weiss, H.M. (1988). Recent developments in the study of personality and organiza-tional behavior. In C L . Cooper & I. Robertson (Eds.) International review of industrial andorganizational psychology 1988 (pp. 307-330). Chichester: Wiley.

Arvey, R.D. (1986). Sex bias in job evaluation procedures. Personnel Psychology, 39, 315-326.Arvey, R.D., & Holt, K. (1988). The cost of alternative comparable worth strategies. Compensa-

tion and Benefits Review, 20, 37-46.Arvey, R.D., Miller, H.E., Gould, R., & Burch, P. (1987). Interview validity for selecting sales

clerks. Personnel Psychology, 40, 1-12.Ashford, S.J. (1989). Self-assessments in organizations: A literature review and integrative model.

Research in Organizational Behavior, 11, 133-174.Baird, L., & Meshoulam, I. (1988). Managing two fits of strategic human resource management.

Academy of Management Review, 13, 116-128.Baldwin, T T , & Ford, J.K. (1988). Transfer of training: A review and directions for future re-

search. Personnel Psychology, 41, 63-105.Bales, J. (1988, August). Integrity tests: Honest results? Afl4 Monitor, pp. 1, 4.Balkin, D.B. (1988). Compensation strategies for firms in emerging and rapidly growing indus-

tries. Human Resource Planning, 11, 207-213.Balkin, D.B., & Gomez-Mejia, L.R. (1987). Toward a contingency theory of compensation strat-

egy. Strategic Management Journal, 8, 169-182.Balkin, D.B., & Logan, J.W (1988). Reward policies that support entrepreneurship. Compensa-

tion and Benefits Review, 20(1), 18-25.Bannnister, B.D. (1986). Performance outcome feedback and attributional feedback: Interactive ef-

fects on recipient responses. Journal of Applied Psychology, 71, 203-210.Baron, R. A. (1988). Negative effects of destructive criticism: Impact on conflict, self-efficacy, and

tzsk'pedormance.. Journal of Applied Psychology, 73, 199-207Bartol, K.M., & Martin, D.C. (1988). Influences on managerial pay allocations: A dependency

perspective. Personnel Psychology, 41, 361-378.Bastien, D.T (1987, Spring). Common patterns of behavior and communication in corporate merg-

ers and acquisitions. Human Resource Management, pp. 17-33.Baytos, L. (1986). The human resource side of acquisitions and divestitures. Human Resource

Planning, 9, 167-175.


176 CYNTHIA D, FISHER

Bealty, R.W, Schneier, C E , , & McEvoy, G,M, (1987), Executive development and managementsuccession. Research in Personnel arid Human Resources Management, 5, 289-322,

Benedict, M,E,, & Levine, E,L, (1988), Delay and distortion: Tacit influences on performance ap-praisal effectiveness. Journal of Applied Psychology, 73. 507-514,

Ben-Shakhar, G,, Bar-Hillel, M,, Bilu, Y , Ben-Abba, E,, & Flug, A, (1986), Can graphologypredict occupational success? Two empirical studies and some methodological ruminations.Journal of Applied Psychology. 71. 645-653,

Bemardin, H,J, (1988), Notes from the chair. Personnel!Human Resources Division News. 2(1), 6-1.

Bemardin, H,J,, & Klatt, L,A, (1985, November), Managerial appraisal systems: Has practicecaught up to the state of the art? Personnel Administrator, pp, 79-86,

Bemardin, H,J,, & Villanova, P, (1986), Performance appraisal. In E,A, Locke (Ed,), General-izing from laboratory to field settings (pp, 43-62), Lexington, MA: Lexington Books,

Borman, WC, (1987), Personal constructs, performance schemata, and "folk theories" of subor-dinate effectiveness: Explorations in an army officer sample. Organizational Behavior and Hu-man Decision Processes, 40, 307-322,

Brockner, J, (1988), The effects of work layoffs on survivors: Research, theory, and practice. Re-search in Organizational Behavior. 10. 213-255,

Brockner, J,, Grover, S,L,, & Blonder, M,D, (1988), Predictors of survivors' Job involvement fol-lowing layoffs: A field study. Journal of Applied Psychology. 73, 436-442,

Brockner, J,, Grover, S,, Reed, T , DeWitt, R,, & O'Malley, M, (1987), Survivors' reactions tolayoffs: We get by with a little help for our friends. Administrative Science Quarterly, 32. 526-541.

Burke, M,J,, & Day, R,R, (1986), Acumulativestudy of the effectiveness of managerial training.Journal of Applied Psychology, 71. 232-245,

Bycio, P,, Alvares, K,M,, & Hahn, j , (1987), Situational specificity in assessment center ratings:A confirmatory factor analysis. Journal of Applied Psychology. 72, 463-474,

Campbell, D,J,, & Lee, C, (1988), Self-appraisal in performance evaluation: Development versuse\aluaUon. Academy of Management Review. 13. 302-314,

Campion, M,A,, Pursell, E,D,, & Brown, B,K, (1988), Structured interviewing: Raising the psy-chometric properties of the employment interview. Personnel Psychology. 41, 25-42,

Cardy, R,L,, & Dobbins, G,H, (1986), Affect and appraisal accuracy: Liking as an integral di-mension in evaluating performance. Journal of Applied Psychology. 71. 672-678,

Cook, D,S,, & Ferris, G,R, (1986), Strategic human resource management and firm effectivenessin industries experiencing decline. Human Resource Management. 25. 441-458,

Day, D,V,, & Silverman, S,B, (1989), Personality and job performance: Evidence of incrementalvalidity. Personnel Psychology. 42, 25-36,

DeGregorio, M,B,, & Fisher, C D , (1988), Providing performance feedback: Reactions to alter-native methods. Journal of Management, 14. 605-616,

DeNisi, A,S,, & Williams, K,J, (1988), Cognitive approaches to performance appraisal. Researchin Personnel and Human Resources Management. 6, 109-155,

Dorfman, P W , Stephan, WG,, & Loveland, J, (1986), Performance appraisal behaviors: Super-visor perceptions and subordinate reactions. Personnel Psychology, 39. 579-598,

Dougherty, T,W, Ebert, R,J,, & Callender, J , C (1986), Policy capturing in the employment inter-view. Journal of Applied Psychology. 71, 9-15,

Doz, Y,, & Prahalad, C K , (1986), Controlled variety: A challenge for human resource manage-ment in the MNC Human Resource Management. 25, 55-71,

Dreher, G,F, Ash, R,A,, & Hancock, P (1988), The role of the traditional research design inunderestimating the validity of the employment interview. Personnel Psychology, 41. 315-327

Dunbar, S,B,, &Novick, M,R, (1988), On predicting success in training for men and women: Ex-amples from Marine Corps clerical specialties. Journal of Applied Psychology. 73, 545-550,

Earley, P C (1987), Intercultural training for managers: A comparison of documentary and inter-personal methods. Academy of Management Journal, 30, 685-698,

Eder, R,W,, & Buckley, M,R, (1988), The employment interview: An interactionist perspective.Research in Personnel and Human Resources Management, 6.15-107,

Evans, PA,L, (1986), The strategic outcomes of human resource management. Human ResourceManagement. 25, 149-167,

JOURNAL OF MANAGEMENT, VOL, 15, NO, 2, 1989


Farh, J., Werbel, J.D., & Bedeian, A.G. (1988). An empirical investigation of self-appraisal-based performance evaluation. Personnel Psychology, 41, 141-156.

Ffeldman, J.M. (1986). Instrumentation and training for performance appraisal: A perceptual-cog-nitive viewpoint. Research in Personnel and Human Resources Management, 4, 45-99.

Ferracone, R. (1987). Blending compensation plans of combining firms. Mergers and Acquisi-tions, 22(5), 57-62.

Fisher, C D . & Shaw, J.B. (1987). Does business strategy affect personnel practices? (NTIC No.A183-007). Washington, DC: Office ofNaval Research.

Ford, J.K., & Noe, R.A. (1987). Self-assessed training needs: The effects of attitudes towardtraining, managerial level, and function. Personnel Psychology, 40, 39-53.

Foulkes, FK. (1986). Strategic human resources management. Englewood Cliffs, NJ: Prentice-Hall.

Friedman, S.D. (1986). Succession systems in large corporations: Characteristics and correlates ofperformance. Human Resource Management, 25, 191-213.

Funder, D.C. (1987). Errors and mistakes: Evaluating the accuracy of social judgment. Psycholog-ical Bulletin, 101,75-90.

Gatewood, R.D., & Feild, H.S. (1987). Human resource selection. Chicago: Dryden.Gaugler, B.B., Rosenthal, D.B., Thornton, G.C III, & Bentson, C. (1987). Meta-analysis of as-

sessment center validity. Journal of Applied Psychology, 72, 493-511.Geber, B. (1987, October). Training budgets still healthy. Training, pp. 39-45.Gist, M.E. (1987). Self-efficacy: Implications for organizational behavior and human resource

management. Academy of Management Review, 12, 472-485.Goldstein, LL., & Gessner, M.J. (1988). Training and development in work organizations. In CL.

Cooper & LT. Robertson, (Eds.) International review of industrial and organizational psy-chology 1988 (pp. 43-72). Chichester: Wiley.

Gomez-Mejia, L.R., & Balkin, D.B. (1987). Dimensions and charcteristics of personnel managerperceptions of effective drug-testing programs. Personnel Psychology, 40, 745-764.

Gomez-Mejia, L.R., & Welboume, T.M. (1988). Compensation strategy: An overview and futuresteps. Human Resource Planning, II, 173-189.

Gordon, M.E., Cofer, J.L., & McCullough, P.M. (1986). Relationships among seniority, past per-formance, interjob similarity, and trainability. Journal of Applied Psychology, 71, 518-521.

Gorman, C (1989, January 23). Honestly, can we trust you? Time, p. 44.Greenhalgh, L., Lawrence, A.T., & Sutton, R.I. (1988). Determinants of work force reduction

strategies in declining organizations. Academy of Management Review, 13, 241-254.Guion, R.M., & Gibson, W.M. (1988). Personnel selection and placement. Annual Review of Psy-

chology, 39, 349-374.Gupta, A.K. (1986). Matching managers to strategies: Point and counter point. Human Resource

Management, 25, 215-234.Halcrow, A. (1988). Temporary services warm to the business climate. Personnel Journal, 84-89.Hall, D.T. (1986). Dilemmas in linking succession planning to individual executive learning. Hu-

man Resource Management, 25, 235-265.Hards, M.M., & Schaubroeck, J. (1988). A meta-analysis of self-supervisor, self-peer, and peer-

supervisor ratings. Personnel Psychology, 41, 43-44.Hauenstein, N.M.A., & Foti, R.J. (1989). From laboratory to practice: Neglected issues in im-

plementing frame-of-reference rates training. Unpublished manuscript, Virginia PolytechnicInstitute, Blacksburg, VA.

Helmreich, R.L., Sawin, L.L., & Carsrud, A.L. (1986). The honeymoon effect in job perform-ance: Temporal increases in the predictive power of achievement motivation. Journal of AppliedPsychology, 71, 185-188.

Heneman, R.L., & Cohen, D.J. (1988). Supervisory and employee characteristics as correlates ofemployee salary increases. Personnel Psychology, 41, 345-360.

Hollenbeck, J.R., & Whitener, E.M. (1988). Reclaiming personality traits for personnel selection:Self-esteem as an illustrative case. Journal of Management, 14, 81-91.

Hufnagel, E.M. (1987). Developing strategic compensation plans. Human Resource Management,26, 93-108.

Hunsaker, PL., & Coombs, M.W. (1988, March). Mergers and acquisitions: Managing the emo-tional issues. Personnel, pp. 56-63.



Hunter, J.E. (1986). Cognitive ability, cognitive aptitudes, job knowledge, and job performance.Journal of Vocational Behavior, 29, 340-362.

Ishida, H. (1986). Transferability of Japanese human resource management abroad. Human Re-source Management, 25, 103-120.

Ivancevich, J.M., Schweiger, D.M., & Power, F.R. (1987). Strategies for managing human re-sources during mergers and acquisitions. Human Resource Planning, 10, 19-35.

Janz, T , Hellervick, L., & Gilmore, D.C. (1986). Behavior description interviewing. Boston: Al-lyn & Bacon.

Jelinek, M., & Adler, N. J. (1988). Women: World-class managers for global competition. Academyof Management Executive, 2, 11-19.

Kerr, J.L. (1988). Strategic control through performance appraisal and rewards. Human ResourcePlanning, JJ, 215-223.

Keys, B., & Wolfe, J. (1988). Management education and development: Current issues and emerg-ing trends. Journal of Management, J4, 205-229.

Klimoski, R., & Brickner, M. (1987). Why do assessment centers work? The puzzle of assessmentcenter validity Personnel Psychology, 40, 243-260.

Knight, P. A., & Nadel, J.I. (1986). Humility revisited: Self-esteem, information search, and policyconsistency. Organizational Behavior and Human Decision Processes, 38, 196-206.

Krzystofiak, F.,Cardy, R., & Newman, J. (1988). Implicit personality and performance appraisal:The influence of trait inferences on evaluations of behavior. Journal of Applied Psychology 73515-521.

Larson, J.R., Jr. (1986). Supervisors' performance feedback to subordinates: The impact of sub-ordinate performance valence and outcome dependence. Organizational Behavior and HumanDecision Processes, 37, 391-408.

Latham, G.P (1988). Human resource training and development. Annual Review of Psychology39, 545-582.

Laurent, A. (1986). The cross-cultural puzzle of international human resource management. Hu-man Resource Management, 25, 91-102.

Longenecker, C O . , Gioia, D.A., & Sims, H.P, Jr. (1987). Behind the mask: The politics of em-ployee appraisal. Academy of Management Executive, J, 183-193.

Lorange, P. (1986). Human resource management in multinational cooperative ventures. HumanResource Management, 25, 133-148.

Madigan, R.M., & Hoover, D.J. (1986). Effects of alternative job evaluation methods on decisionsinvolving pay equity. Academy of Management Journal, 29, 84-100.

Madigan, R.M., Scott, K.D., Deadrick, D.L., & Stoddard, J.A. (1986, September). Employmenttesting: The U.S. job service is spearheading a revolution. Personnel Administrator, pp. 102-112.

Mahoney, T.A. (1987). Understanding comparable worth: A societal and political perspective. Re-search in Organizational Behavior, 9, 209-245.

Mahoney, T.A., & Deckop, J.R. (1986). Evolution of concept and practice in personnel adminis-tration/human resource management. Journal of Management, J2, 223-241.

Manzini, A.O., & Gridley, J.D. (1986). Human resource planning for mergers and acquisitions:Preparing for the people issues that can prevent merger synergies. Human Resource Planning,9, 51-56.

Marks, M.L., & Cutcliffe, J.G. (1988). Making mergers work. Training and Development Jour-nal, 42(4), 3Ch36.

Marks, M.L., & Mirvis, P (1985, Summer). Merger syndrome: Stress and uncertainty. Mergersand Acquisitions, pp. 50-55.

Markham, S.E. (1988). Pay-for-performance dilemma revisited: Empirical example of the impor-tance of group effects. Journal of Applied Psychology, 2, 111-180.

McCune, J.T., Beatty, R.W, & Montagno, R.V (1988). Downsizing: Practices in manufacturingfirms. Human Resource Management, 27, 145-161.

McDaniel, M.A. (1988). Does pre-employment drug use predict on-the-job suitability? PersonnelPsychology, 4J, 717-729.

McDaniel, M.A., Schmidt, F.L., & Hunter, J.E. (1988a). Job experience coaelates of job perform-ance. yoMr/ia/o/Ap/jferf/'jyc/io/o^y, 73, 327-330.

McDaniel, M. A., Schmidt, EL., & Hunter, J.E. (1988b). A meta-analysis of the validity of meth-



ods for rating training and experience in personnel selection. Personnel Psychology, 41. 283-309.

McEnery, J., & McEnery, J. M. (1987). Self-rating in management training need assessment: A ne-glected opportunity. Journal of Occupational Psychology. 60. 49-60.

Menderhall, M.E., Dunbar, E., & Oddou, G.R. (1987). Expatriate selection, training, and career-pathing: A review and critique. Human Resource Management. 26. 331-345.

Meyer, H. H., Kay, E., & French, J.(1986). Split roles in performance appraisal. Harvard BusinessReview. 43. 123-129.

Miles, R.E., & Snow, C.C. (1978). Organizational strategy, structure, and process. New York:McGraw-Hill.

Miles, R.E., & Snow, C.C. (1984). Designing strategic human resource systems. OrganizationalDynamics. 13. 36-52.

Milkovich, G.T. (1988). A strategic perspective on compensation management. Research in Per-sonnel and Human Resources Management. 6. 263-288.

Morgan, P.V (1986, September). Intemational HRM: V&aoxfidxonl Personnel Administrator, pp.43-47.

Mumford, M.D., Weeks, J.L., Harding, ED., & Eleishman, E.A. (1988). Relations between stu-dent characteristics, course content, and training outcomes: An integrative modeling effort.Journal of Applied Psychology. 73. 443-456.

Munchus, G. (1988, July). Employee leasing: Benefits and threats. Personnel, pp. 59-61.Murphy, K.R. (1988). Psychological measurement: Abilities and skills. In C L . Cooper & I.T.

Robertson (Eds.) International review of industrial and organizational psychology 1988 (pp.213-243). Chichester: Wiley

Murphy, K.R., & Balzer, W.K. (1986). Systematic distortions in Memory-based behavior ratingsand performance evaluations: Consequences for rating accuracy. Journal of Applied Psychology.71. 39-44.

Newman, J.M. (1988). Compensation strategy in declining industries. Human Resource Planning.11. 197-206.

Noe, R.A. (1986). Trainees' attributes and attitudes: Neglected influences on training effective-ness. Academy of Management Review. 11. 736-749.

Noe, R.A., & Schmitt, N. (1986). The influence of trainee attitudes on training effectiveness: Testof a model. Personnel Psychology. 39. 497-524.

Olian, J.D., & Rynes, S.L. (1984). Organizational staffing: Integrating practice with strategy. In-dustrial Relations. 23. 170-183.

Olney, P.B., Jr. (1987a). Meeting the challenge of comparable worth: Part 1. Compensation andBenefits Review. 19(2). 34-44.

Olney, PB., Jr. (1987b). Meeting the challenge of comparable worth: Part 2. Compensation andBenefits Review. 79(3), 45-53.

Pearce, J.L., & Porter, L.W. (1986). Employee responses to formal performance appraisal feed-back. Journal of Applied Psychology. 71. 211-218.

Pfeffer, J., & Baron, J.N. (1988). Taking the workers back out: Recent trends in the structuring ofemployment. Research in Organizational Behavior. 10. 257-303.

Pfeffer, J., & Davis-Blake, A. (1987). The effect of the proportion of women on salaries: The caseof college administrators. Administrative Science Quarterly. 32. 1-24.

Porter, M.E. (1985). Competitive advantage. New York: The Free Press.Prince, J.B., & Lawler, E.E., III (1986). Does salary discussion hurt the developmental perform-

ance appraisal? Organizational Behavior and Human Decision Processes. 37. 357-375.Pucik, V, & Katz, J.H. (1986). Information, control, and human resource management in multi-

national firms. Human Resource Management. 25. 121-132.Robertson, I.T, & lies, PA. (1988). Approaches to managerial selection. In C L . Cooper & I.

Robertson (Eds.) International review of industrial and organizational psychology 1988 (pp.159-211). Chichester: Wiley.

Russell, J.S., & Wexley, K.N. (1988). Improving managerial performance in assessing needs andtransferring training. Research in Personnel and Human Resources Management. 6. 289-324.

Ryan, A.M., & Sackett, PR. (1987). A survey of individual assessment practices by I/O psychol-ogists. Personnel Psychology. 40. 455-488.



Saari, L.M., Johnson, T.R., McLaughlin, S.D., &Zimmerle, D.M. (1988). A survey of manage-ment training and education practices in U.S. companies. Personnel Psychology, 41, 731-743.

Sackett, P.R. (1987). Assessment centers and content validity: Some neglected issues. PersonnelPsychology, 40, 13-26.

Sackett, PR., & Harris, M.M. (1984). Honesty testing for personnel selection: A review and cri-tique. Personnel Psychology, 37, 221-245.

Schmidt, FL., Hunter, J.E., Outerbridge, A.N., & Trattner, M.H. (1986). The economic impactof job selection methods on size, productivity, and payroll costs ofthe federal work force: Anempirically based demonstration. Personnel Psychology, 39, 1-30.

Schneider, B., & Schmitt, N. (1986). Stajfing organizations. Glenview, IL: Scott, Foresman.Schoorman, F.D. (1988). Escalation bias in performance appraisals: An unintended consequence

of supervisor participation in hiring decisions. Journal of Applied Psychology, 73, 58-62.Schuler, R.S. (1986). Fostering and facilitating entrepreneurship in organizations: Implications for

organization structure and human resource management practices. Human Resource Manage-ment, 25, 607-629.

Schuler, R.S., & Jackson, S.E. (1989). Determinants ofhuman resource management priorities andimplications for industrial relations. Journal of Management, 15, 89-99.

Schuler, R.S., & Jackson, S.E. (1987). Linking competitive strategies with human resource man-agement practices. Academy of Management Executive, 1, 207-219.

Shaw, J.B., & Fisher, C D . (1988). Subordinate agreement with performance feedback: A fieldstudy. In D. Smith Cook & N.J. Bentell (Eds.), Proceedings ofthe Eastern Academy of Man-agement, (pp. 226-228). Washington, DC: Eastern Academy of Management.

Sherer, PD., Schwab, D.P, & Heneman, H.G. Ill (1987). Managerial salary-raise decisions: Apolicy-capturing approach. Personnel Psychology, 40, 27-38.

Silverman, W.H., Dalessio, A., Woods, S.B., & Johnson, R.L., Jr (1986). Influence of assess-ment center methods on assessors' ratings. Personnel Psychology, 39, 565-578.

Simonetti, J.L., Nykodym,N., &Sell, L.M. (1988, August). Temporary employees: A permanentboon? Personnel, pp. 50-56.

Sinclair, R.C (1988). Mood, categorization breadth, and performance appraisal: The effects of or-der of information acquisition and affective state on halo, accuracy, information retrieval, andevaluations. Organizational Behavior and Human Decision Processes, 42, 22-46.

Smither, J.W, Reilly, R.R., & Buda, R. (1988). Effect of prior performance information on ratingsof present performance: Contrast versus assimilation revisited. Journal cf Applied Psychology,73. 487-496.

Sonnenfeld, J.A., & Peiperl, M.A. (1988). Staffing policy as a strategic response: A typology ofcareer systems. Academy of Management Review, 13, 588-600.

Srinivas, S., & Motowidlo, S.J. (1987). Effects of raters' stress on the dispersion and favorabilityof performance ratings. Journal of Applied Psychology, 72, 247-251.

Tsui, A.S., & Milkovich, G.T. (1987). Personnel department activities: Constituency perspectivesand preferences. Personnel Psychology, 40, 519-538.

Tung, R.L. (1988). The new expatriates. Cambridge, MA: Ballinger.Tziner, A., & Kopelman, R. (1988). Effects of rating format on goal-setting dimensions: A field

experiment. Journal of Applied Psychology, 73, 323-326.Von Glinow, M.A., & Teagarden, M.B. (1988). The transfer of human resource technology in

Sino-U.S. cooperative ventures: Problems and solutions. Human Resource Management, 27,201-229.

Weekley, J.A., & Gier, J.A. (1987). Reliability and validity ofthe situational interview for a salesposition. Journal cf Applied Psychology, 72, 484-487

Whitney, J.L. (1988a). Pay concepts for the 1990s, Part I. Compensation and Benefits Review,20(2), 33-44.

Whitney, J.L. (1988b). Pay concepts for the 1990s, Part II. Compensation and Benefits Review,20(3), 45-50.

Zedeck, S. (1986). A process analysis ofthe assessment center method. Research in Organiza-tional Behavior, 8, 259-296.


5689629

Documents