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Looking for HRM/union substitution: evidence from British workplaces

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  • Machin, Stephen
  • Wood, Stephen

Abstract

In this paper we test the HRM/union substitution hypothesis that human resource management (HRM) practices act as a substitute for unionization. We use British workplace data between 1980 and 1998 which allows us to examine for the first time whether increased HRM incidence has coincided with union decline. First, we compare changes over time in the incidence of HRM practices across union and non-union sectors, finding little cross-time difference occurring between sectors. Second, we ask whether newer workplaces (strongly shown by other research as more likely to be non-union) have experienced differentially faster HRM incidence; we are unable to find much evidence in support of this. Third, longitudinal changes also fail to pick up any evidence of faster union decline in workplaces or industries with faster take up of HRM practices. We find no evidence of HRM substitution operating in the hypothesised way of it replacing unions and conclude that increased HRM incidence does not seem to be an important factor underpinning union decline in Britain.

Suggested Citation

  • Machin, Stephen & Wood, Stephen, 2004. "Looking for HRM/union substitution: evidence from British workplaces," LSE Research Online Documents on Economics 19999, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:19999
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    File URL: http://eprints.lse.ac.uk/19999/
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    References listed on IDEAS

    as
    1. Stephen Wood & Maria Teresa Albanese, 1995. "Can We Speak Of A High Commitment Management On The Shop Floor?," Journal of Management Studies, Wiley Blackwell, vol. 32(2), pages 215-247, March.
    2. Jeremy Waddington, 1992. "Trade Union Membership in Britain, 1980–1987: Unemployment and Restructuring," British Journal of Industrial Relations, London School of Economics, vol. 30(2), pages 287-324, June.
    3. Keith Sisson, 1993. "In Search of HRM," British Journal of Industrial Relations, London School of Economics, vol. 31(2), pages 201-210, June.
    4. John H. Pencavel, 2004. "The Surprising Retreat of Union Britain," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 181-232, National Bureau of Economic Research, Inc.
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    Cited by:

    1. repec:lan:wpaper:4012 is not listed on IDEAS
    2. A I Petrescu & R Simmons & S Bradley, 2004. "The impacts of human resource management practices and pay inequality on workers' job satisfaction," Working Papers 542602, Lancaster University Management School, Economics Department.
    3. repec:lan:wpaper:3727 is not listed on IDEAS
    4. repec:lan:wpaper:3621 is not listed on IDEAS
    5. repec:lan:wpaper:3619 is not listed on IDEAS

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    More about this item

    Keywords

    Human Resource Management; Trade unions;

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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