RESEARCH AND PRACTICE

IN HUMAN RESOURCE MANAGEMENT

Approaches to HRM on the Pacific Rim: A

Abstract
This study examines the influence of region of ownership on the approach to HRM taken by firms.
Various indicative elements of HRM such as philosophies, policies and practices are investigated
within the Australian hospitality industry. Firms from different regions of the Pacific Rim
employed distinctive HRM approaches. The Asian firms emphasise HRM philosophies, with other
HRM elements adopted as felt appropriate. In contrast, the US firms were operationally
sophisticated with an emphasis on harnessing their human resources. Finally, the Australian
firms had a relatively basic approach to HRM. The distinctive emphasis on either information
inclusion (Asian) or manifest rewards (US) may hightlight potential sources of competitive
advantage that are difficult to imitate and therefore provide another tool in the repertoire of
managers on the Pacific Rim.

INTRODUCTION
From the late 1970s until the late 1980s there was a strong &end of rapid growth in the labour market in the
Australian tourism industry (Faulkner, 1990). Although the hospitality industry may have stagnated during the late
1980s-early 1990s recession it has recently experienced a period of growth. In 1995-96 the industry was responsible
for the employment of around 694,000 people, or 8 percent of the workforce (DIST, 1998). Recent discussion of
employment generation and future employment potential of the hospitality industry has identified a variety of
management issues that are important in terms of policy and managerial decision making (e.g. Maull and Childe,
1994) and call for further study of contemporary management practices as they are applied in the industry (Ingram
and Baldwin, 1996).
The hospitality industry has also seen rapid employment growth in recent years in Pacific Rim countries such as
Singapore (Cheng and Brown, 1998) and other southeast Asian countries (Nankervis, 1995). several recent papers
have called for researchers to study the nature of human resource management (HRM) and level of sophistication
of HRM practices in the hospitality industry (e.g. Ingram and Baldwin, 1996). An important characteristic is that
for many hospitality operators the primary source for enhancing competitiveness is through harnessing the
organisation’s human resources. Indeed, human resources have been proposed as one of the most important
sources of competitive advantage in the modem global environment (Barney, 1991). In particular the nature of
HRM on the Pacific Rim has been recognised as a key area of investigation (Haley, 1998; Twig and Shadur, 1997). A
key force behind the examination and importance of approaches to HRM around the Pacific is the potential impact
and competitive advantages that can be derived from host and parent country influences. The focus of this paper is
therefore an analysis of the nature of HRM, as influenced by home country orientation in the hospitality industry.

The Nature of Human Resource Management

The importance of human resource management has been promoted by many best practice management studies
(Dertouzos, et. al., 1989; Womack, Jones and Roos, 1990). The hotel industry has been described as perhaps the
least advanced of all industries in its use and integration of modem human resource management activities
(Nankervis, 1993). These studies have consistently emphasised the importance of the management of people as a
crucial factor of success.
The importance of HRM, from a strategic perspective, to the management of HR is seen to be a source of
competitive advantage (e.g. Huselid, Jackson and Schuler, 1997; Poole and Jenkins, 1996; Schuler, 1992). A
strategic approach to HRM is generally characterised by linking the external and internal environment of the
business to the management of HR (Baird and Meshoulam, 1988; Beer et al., 1984; Hendry and Pettigrew, 1986).
These features emphasise the need to achieve consistency and complementarities among HR practices (Baird and
Meshoulam, 1988; Baron and Kreps, 1999) including the uniformity of practices and treatment among individuals,
continuity in HR philosophy and practice and technical complementarities among policies and practices (Baron
and Kreps, 1999).
Schuler (1992) proposes that strategic HRM is about integrating people issues with the strategic needs of the
business. Therefore, business strategies provide the foundation for HRM strategies, policies and processes to be
linked. The elements of the HRM mix are the philosophy, policies, programs, practices and processes. First,
philosophy, refers to the organisation attitude towards its human resources and the extent to which they contribute
towards the success of the organisations. It is used as a guideline for formulating the necessary actions required to
manage its HR strategically. Second, policies, are used to provide the link between the organisation’s business
needs and specific people related business issues. These issues are critical for the organisations as they impact on
the short and long term aspects of people management relevant to the business. Third, programs are shaped by HR
policies in an attempt to introduce organisational changes that are essential for meeting business needs. Fourth,
HR practices are used to provide the motivation to match the specific role behaviour required to reinforce the
desired performance. Finally, processes ensure that the HRM practices support the strategic business needs. When
these elements are operationalised for the purposes of empirical research some of the elements can be grouped
together. Further, due to the more specifically operational nature of the HRM programs, practices and processes
the text below combines these elements under the most suggestive and appropriate label, for this study namely
HRM practices.
This study takes the examination of approaches to HRM further by focussing on the HRM elements used at the
workplace level, thereby investigating the HRM elements actually used, rather than those that may be espoused by
the senior management. Examining the similarities and differences in HRM elements at the workplace level allows
us to determine the elements that may be country or region specific and avoids the potential for any investigator-
expectation bias where the participants give answers that they think the experimenter wants to hear. Such
pressures may also come from the popular business press where managers may feel that they “should” be using the
best practices purported by the literature. These biases are avoided and the basic benefits of focusing on HRM as it
occurs in reality are obtained by studying HRM at the workplace level.
A key issue in the external environment is the possibility that factors from countries and cultures different from the
host country may have an impact on the approach to HRM employed by the organisation. Multinational
corporations (MNCs) need to develop multidimensional capabilities as a means of increasing their competitive
advantage in the global arena (Bartlett and Ghoshal, 1987a; 1987b).
As a critical element of competitive advantage, especially within services industries (Arrowsmith and McGoldrick,
1996), HRM in the international context is important in the operations of MNCs (Schuler, Dowling and De Cieri
1993; Tung, 1990). The approach of the MNC to the management of their human resources ranges from
ethnocentric through to geocentric (Perlmutter and Heenan, 1974). That is, the international HRM practices of the
subsidiaries of the MNC reflect the degree of ethnocentricity in the operations of the firm (Dowling and Schuler,
1990). For example, Japanese organisations have been found to be more ethnocentric than UK and US firms (Kopp,
1994). However, more research needs to be undertaken that can enhance our understanding of how MNCs manage
their human resources (Ferner, 1994; Schuler, Dowling and De Cieri, 1993; Welch, 1994).
Notably, the differences in HRM approaches between East and West have been the focus of a lot of attention,
especially over the past two decades. However, two key issues within this field have yet to be clearly proven. First,
what are the distinguishing HRM approaches of companies across the regions of the pacific Rim? As noted above,
studies have found differences in terms of “best practices”, but what about normal practices - the practices that
form part of the HRM approach of the company? Once a practice has been noted as a best practice it can be
mimicked and copied. If there were differences in the approach taken to HRM, then HRM elements that are more
specific to the country or region should be evident and these elemnts should be harder to imitate due to their basis
in the norms of the home country.
More specifically, research into the nature of HRM in MNCs needs to be conducted in the Asia Pacific. Despite the
recent economic and organisational failures, the Pacific region remains crucial to the West for three primary
reasons: the courses of self-renewing growth, the market potential that Asia offers Western manufacturers, and the
alternative models of development and change that the Asia Pacific presents for global competition (Haley, 1998).
The ongoing interaction between Asian and Western cultures and practices is fertile ground for the investigation of
HRM approaches. A special case of this interaction between Western and Asian influences is represented by the
subsidiaries operating in Australia. As a country that is close to Asia in proximity, yet with Western institutions and
government structures, Australia provides an interesting context for the study of the impact of a firm’s home region
on the HRM approaches of subsidiaries. The investigation of the practices which are characteristic of a country or
region is based, in this study, on the elements of the HRM mix proposed by Schuler (1992), as briefly reviewed in
the next section.
The Elements of HRM

HRM Philosophy The aspects of HRM philosophy that are examined here are those that reflect the organisation’s
attitude towards its human resources (following Schuler, 1992). The HRM philosophy of the organisation can often
set the tone of HRM within the firm, as also reflected in the firm’s policies and practices. The communication of
these philosophies can be seen as a source of competitive advantage (Sparrow, Schuler and Jackson, 1994).
HRM Policies Similarly, studies examining the extent to which all employees are valued by the organisation are
exemplified by the research into equal employment opportunity and affirmative action (EEO/AA) policies. A bleak
picture has been painted in recent HRM studies about the effectiveness and accessibility of these policies in
Australian and New Zealand organisations (e.g. Pringle and Tudhope, 1996). Perhaps the incorporation and
institutionalisation of EEO/AA policies in an organisation may be an indicator of the extent to which all of the
employees, their human resources are being harnessed by the firm. Subsequently, this proxy of (human) resource
utilisation could be reflected in the approach to HRM taken by firms in the relatively labour-critical hospitality
industry.
HRM Practices As demonstrated in Baron arid Kreps (1999) and Poole and Jenkins (1996) effective strategic HRM
relies on choosing the right practices to achieve alignment with business strategies. Therefore, we have
operationalised strategic HRM by focusing on the HR practices used to meet business needs in terms of staffing,
appraising, compensating, developing and organising.
Staffing Organisational effectiveness depends on finding the right people in the right job at the right time (Bechet
and Walker, 1993). The staffing practices of a firm are often inter-connected with the firm’s HRM policies,
especially when the staffing practices are examined in terms of EEO/AA policies as they are here.
Appraising It is not sufficient just to get the right person for the right job at the right time. It is also necessary to
motivate them to ensure their performance is consistent with the long term needs of the business. Furthermore,
performance management practices are essential in the strategic management of HR in the hospitality industry
(Go, Monachello and Baum, 1996). Appraising includes performance appraisal activities and those dealing with
communication and feedback between management and employees. Specifically, performance appraising practices
that are efficient and effective, can influence service quality and productivity in the hospitality industry (Nankervis,
1995).
Compensating The compensation practices of the firm are important in creating and maintaining specific
behaviour and performance outcomes from employees. Compensation practices are often essential in attracting and
retaining those employees who are core to the business, especially in the hospitality industry (Cheng and Brown,
1998; Nankervis, 1995).
Developing HR development practices include those that focus on training (i.e. immediate concerns) and
development (longer term). Recent studies into HRM practices have demonstrated that HR development practices
can be used to achieve organisational objectives (Nankervis, 1995) and can be a means to minimise staff turnover
(Cheng and Brown, 1998). The HR development practices can also be used to narrow skills gaps and to conduct
career planning.
Organising A recent emphasis in the literature on practices that reflect the organisation of HRM within the firm is
included here as an extension of the common four HRM practices noted above. For example, employee
empowerment is said to have much to offer hospitality organisations (Lashley, 1996). Similarly, studies have found
that participation can have a statistically significant effect on performance, although the average size of this effect is
small enough to raise concerns about its practical significance (Wagner, 1994). Teamwork has also been
emphasised as a key feature of the flexible organization of the 1990s (Scully, Kirkpatrick and Locke, 1995). Despite
these research findings, the Australian hotel industry has been described as perhaps the least advanced of all
industries in its use and integration of modem HRM activities (Nankervis, 1993).
Together these HRM elements constitute the HRM approach used by the subsidiary. The elements of the firm’s
HRM approach are, in turn, shaped by host country norms and a subsidiary’s parent country norms regarding their
human resources. The business context and differences between the norms and practices of regions is represented
in Figure 1. Less central characteristics of the parent country’s approach to HRM are likely to be dominated and
replaced by host country norms. The resultant range of practices used by a subsidiary are also, therefore, indicators
of the characteristics of the parent country’s culture and practices that are central to that country, whereby the
parent country practices are not left to be dominated by the host country’s norms and practices.
Figure 1
A model of the forces influencing the HRM approach of a subsidiary
The aim of this study is to explore the approach to HRM taken by Pacific Rim organisations in the context of the
Australian hospitality industry. By examining these differences, the key elements of each region’s approach to HRM
can be highlighted. The three approaches to HRM examined are the baseline group, Australian firms, firms with a
US headquarters and firms with an Asian headquarters.

METHOD

Sample

The sample was drawn from the Australian Bureau of Statistics register of all establishments in Australia so as to be
representative, by industry (excluding agriculture, forestry and fishing and defence), of the economy for all
workplaces with greater than 20 employees. The data is from the Australian Workplace Industrial Relations Survey
conducted in 1995 (Morehead, Steele, Alexander, Stephen, and Duffin, 1997). The sampling frame for the workplace
surveys was the Australian Bureau of Statistics Business Register. Workplaces were randomly chosen such that they
would be representative of the industry across five size bands as part of a random stratified sample (Morehead et
al., 1997). For each of the chosen workplaces the HRM manager or the manager with responsibility for HRM,
sometimes a General Manager, was interviewed and asked the set, structured questions. The sample used in this
research consists of the 43 private sector workplaces that had the Australia and New Zealand Standard Industry
Classification of 57 - Accommodation, Cafes and Restaurants (Morehead et al., 1997).
Most of the external factors (as detailed by Jackson and Schuler, 1995) are controlled for in this study, and/or are
grouped together at the broad level of the three categories, which are the three levels of the independent variable of
country of ownership. That is, all of the firms are operating within the same legal, social and political environments,
with relatively similar contexts in terms of host country culture and practices, namely the Australian environment.
Similarly, the industry characteristics are controlled to one industry, an industry where HRM is important.

Measures

The dependent variables are presented here under the heading of HRM elements and the business environment
covariates are presented under the heading of measures of the external environment. Together, these groups of
variables will be tested across the independent variable of ownership category.
HRM Elements Each respondent scored yes or no to a question asking whether or not they had any of the following
programs, policies or practices in place. For ease of analysis the questions have been grouped by the type of
category they are most relevant to. Some of the questions could relate to more than one of the categories. However,
the groups of questions used here are for ease of conceptual analysis. The items are grouped in terms of whether or
not they are indicative of the firm’s HRM philosophy, HRM policies, or HRM practices (staffing, appraising,
compensating, developing and organising) of the firm.
The first group of questions reflected the HRM philosophy of the workplace. The questions assessed whether
certain methods were currently used by management here to communicate with employees at this workplace? The
methods included: Daily “walk around” the workplace by senior management, Suggestion schemes, Regular
newsletters/staff bulletins distributed to all employees, and Regular formal meetings between managers and/or
supervisors and employees. The managers were also asked whether the following practices were standard at the
workplace: Regular meetings are held down the management line, Employees meet with supervisors regularly, and
Employees meet with senior management more than once a year. Further, the HRM philosophy of the firm was
seen to be reflected by the special measures used to provide information to employees that are part-time workers,
shift workers or workers from a non English speaking background. The measures examined were: Meetings are
held at times so everyone can attend them, Information is displayed on noticeboards, and Management inform
staff.
The HRM policies of the firm were assessed by asking whether or not the firm had a written policy on equal
employment opportunities or affirmative action? Similarly, the respondent was asked whether they had a specific
written policy on sexual harassment? These policies are also integral to the staffing aspect of the firm’s HRM
practices.
The remaining HRM practices of the firm investigated here include questions assessing the appraising,
compensating and developing aspects of HRM practices. The appraising practices examined were the presence or
not of a staff appraisal/evaluation scheme, and whether staff appraisal is conducted more than once a year?
Compensation practices examined include the use of a bonus scheme, and if the workplace had share ownership
options for employees? The developmental aspect of HRM practice was assessed by asking whether or not the
workplace had a skills audit system in place, and if there was a training scheme in place? A further two questions
assessed whether, in terms of organising HRM, the firm had semi-autonomous work groups, and whether they used
team building programs?
Similarly, the respondent was asked, again on a yes or no scale, whether, for most of the above questions, if the
practice had been implemented in the last two years? The questions that were not asked the follow-up question
were the standard practice and special measures questions reflecting the philosophy of the firm’s HRM, the
policies, whether staff appraisal was more than once a year, and the share ownership question.
Measures of the External Environment To allow for the impact of the external environment on the firm, the
managers were also asked questions about the nature of their business environment. In particular, the managers
were asked whether the demand for their product was seasonal (yes/no) and to rate the degree of competition
present in their industry from 1, intense competition through to 5, limited competition.

RESULTS
The majority of the questions were tested using Chi-squared tests. All analyses were obtained using the Statistical
Package for the Social Sciences. The key grouping variable, representing the Pacific Rim approaches, had sample
sizes of 20, 13, and 10 for each of the Australian, US and Asian categories respectively, all operating in the
Australian hospitality industry. A few of the variables had one or two cases fewer in a category, although the
majority of cases were used for the majority of variables. Further, to ensure that the results below are not due to
size, a cheek using oneway ANOVAs was conducted across the ownership groupings for the variables: current
number of employees, and the number of employees a year ago. No significant differences in size were found for
either test.
The first table reports the use of a range of contemporary practices across the categories. The use of a Skills Audit
system was significantly lower in Asian and Australian firms relative to the US firms. Similarly, there was a
tendency for US and Asian finns to use Bonus Schemes more than Australian firms. The results also highlight the
large extent to which firms have high levels of practices such as a daily walk around by managers, regular meetings
with managers and employees and staff appraisal schemes.
Table 1
Practices and programs curtent in place
Variable Australian US Asian
Bonus scheme t 35 69 70
Daily walk around by managers 90 92 100
Regular meetings between managers arid employees 90 85 90
Semi-autonomous work groups 20 8 20
Skills audit * 20 54 0
Staff appraisal/eval. scheme 75 85 80
Staff newsletters/bulletins 30 69 90
Suggestion schemes 30 46 30
Team building 70 54 70
 Variable Australian US Asian
Training scheme 65 85 60
Note: * = p<.05, t = p<.10. All numbers are the percentage of firms that answered yes.
Table 2 examines the extent to which the above practices were implemented in the last two years by the firms. The
US and Asian firms had only recently implemented their Bonus Scheme and tended to have only recently
implemented their staff newsletters. Similarly, the US firms had only implemented their skills audit processes
recently, unlike the Australian and Asian firms who, as presented above, had little usage of Skill Audit processes.
Table 2
The following programs were implemented in the workplace in the prior two years
Policy/Practice Implemented in the last two years Australian US Asian
Bonus scheme * 25 69 60
Daily walk around by managers 32 8 11
Regular meetings between managers and employees * 53 15 11
Semi-autonomous work groups 15 15 20
Skills audit * 20 46 0
Staff appraisal/eval. scheme 55 62 60
Staff newsletters/bulletins t 5 38 33
Suggestion schemes 26 23 11
Team building 55 38 70
Training scheme 50 62 40
Note; * = p<.05, t = p<.10. All numbers are the percentage of firms that answered yes.
Further, the Australian workplaces had implemented their program of regular meetings between managers and
employees only recently. Comparisons between Table 2 and Table 1 provide some indication of the recency of the
practices examined. An unusual result was that more US firms had implemented semi-autonomous workgroups in
the last two years (15%) than had those groups in place (8%). However, both levels are consistently low. Most of the
practices in place appear to have been implemented recently, with the exception of the practice of the daily walk
around by managers, which appears to have been implemented some time ago consistently across categories.
The final table of results presents the levels of use for key policies and involvement practices across the categories.
The US and Asian firms had higher levels of written policies on sexual harassment and meetings held when
everyone can attend, than the Australian firms.
Table 3
Policies and Involvement practices that reflect the HRM philosophy
Variable Australian US Asian
Written policy on EEO/AA 40 15 20
Written policy on sexual harassment * 50 92 90
Work eval/appraisal more than once/year t 30 8 0
Meetings held when everyone can attend * 6 50 71
Information displayed on noticeboards 39 70 43
Management inform staff 6 20 0
Regular meetings down management line 67 82 67
Employees meet with supervisors regularly * 17 45 78
Employees meet with senior management more than once a year 50 64 56
Share/ownership options for employees * 5 38 0
Seasonal demand for product * 55 23 20
t
Note: * = p<.05, = p<.10. All numbers are the percentage of firms that answered yes.
The variables included to monitor the impact of external factors were both significant. Australian firms had a more
seasonal demand for their product than either the US or Asian firms. Further, while all firms said that the degree of
competition in their industry was at least reasonably competitive, an analysis of variance, with a Bonferroni post
hoc test, showed that the Australian firms rated the degree of competition they faced as being significantly more
competitive (mean 1.47, standard deviation (SD) = 0.61) than the US firms (mean = 2.77, SD = 1.01), while the
Asian firms were also seen to have a competitive environment (mean = 2.10, SD = 1.29).

DISCUSSION
The results above provide evidence of approaches to HRM that vary between the general Pacific Rim categories.
Each of the groups is examined in detail and then similarities and differences between the three groups are
examined.
The US firms were distinguished by their having bonus schemes in place, skill audit systems, a written policy on
sexual harassment, and share ownership options for employees. Even though the bonus schemes and skill audit
systems had only been introduced in the prior two years, the US firms had been practicing regular meetings
between senior managers and employees for longer than the Australian firms. In general, the US firms had an
approach to HRM that was more sophisticated than the other two categories at that time, especially relative to the
Australian firms. Conversely, the US group tended to have only recently introduced the newsletters present and had
a tendency not to have work evaluations more than once a year.
Many of the characteristics that were significant in the results above are similar between the Asian and US firms. In
particular, the Asian firms also had bonus schemes in place, albeit recently introduced, had been having regular
meetings between senior managers and staff for some time, and a written policy on sexual harassment. However,
the Asian firms were distinguished by their holding meetings when everyone can attend and that employees meet
with supervisors regularly. Conversely, the Asian firms had no use of skills audits, did not undertake work
evaluations more than once a year, did not allow share options for employees, and, as with the US firms, tended to
have only recently introduced the newsletter schemes, when present.
The third group, the Australian firms, were characterised by their recent introduction of regular meetings between
senior managers and employees, and their use of work evaluations more than once a year. Notably, across the
majority of variables examined here, especially those that characterised the other groups’ approaches, the
Australian firms had relatively lower levels of use of many of the HRM policies and practices. The Australian firms
had low levels of use of bonus schemes, skills audits, meetings held when everyone can attend, and few offered
share ownership to employees.
Each of these key results are summarised in Table 4, in terms of the HRM elements (philosophy, policies and
practices) that constitute the HRM approach of the firm. The Asian firms were the only group that were
distinguished by issues that reflected the HRM philosophy of the firm. The philosophy characteristics appear to
emphasise the inclusion of the employee in the information distribution processes. Another possible explanation
for this finding is related to the management philosophy adopted by Asian firms in general, in that they place more
emphasis on human resources as an asset supporting the findings of Haley (1998) and Tung and Shadur (1997).
Both the US and Asian firms commonly had sexual harassment policies, in contrast to the Australian firms. For
policies in general, all firms had similar, albeit low to moderate, use of a written policy on EEO/AA. These findings
occur despite the legislated requirements placed upon firms in Australia to have EEO policies. Most notably, the
lack of a sexual harassment policy and the lack of written EEO/AA policies in Australian firms appears to indicate
that the Australian firms are operating in an old-fashioned mode and are not harnessing, or recognising, all of their
human resources and are subsequently not fully utilising their human resources.
The final set of HRM elements, the HRM practices, that distinguish the groups are few. The Australian firms had
more frequent evaluations, the Asian firms had recently introduced bonus schemes and the US firms had recently
introduced bonus schemes, skills audits and share ownership schemes. The US firms have the most HRM practices
in Table 4 and the practices appear to emphasise the compensation of employees, or perhaps the management of
the employees through manifest (e.g. monetary) involvement.
The business environment faced by the US and Asian finns is more munificent than that facing the Australian group
of firms. The influence of the business environment on the HRM elements of the groups can be seen in their overall
HRM approach.
Table 4
The significant characteristics that distinguish between the three groups
HRM Element Australia US Asian
(The meetings with senior Employees meet with supervisors
HRM Philosophy managers were only Nil regularly, meetings held when
recently introduced) everyone can attend
Lack of sexual harassment
HRM Policies Sexual harassment Sexual harassment
policy
Work evaluation more than Bonus Scheme (recent), Skills
HRM Practices Bonus Scheme (recent)
once a year Audit (recent), Share ownership
Business Seasonal Demand, Very Non-seasonal Demand, Non-seasonal Demand,
Environment Competitive Competitive Competitive
Harnessing human resources
Basis of HRM
Market forces through analysis combined with Information distribution
Approach
manifest reward
HRM Approach Basic Operationally sophisticated Adapted Philosophical
The US firms are labeled as operationally sophisticated because although they had no distinguishing HRM
philosophy characteristics, they were characterised by operational elements that were well-developed and more
extensive. Overall, the US firms appear to approach HRM by valuing their employees as a “resource”. The context of
a stable and relatively less competitive environment may be either the result or cause of the emphasis on an
operationally sophisticated HRM approach.
For example, if the firm chose the environment within the industry that is more munificent, they may have felt that
it is not as necessary that HRM be considered at the broader, more philosophical level. The HRM focus then is that
the firm’s resources be harnessed as best as possible. The emphasis on harnessing the human resources of the firm
is also congruent with the proposal that, in such a relatively stable segment of the hospitality environment, the firm
does not need to be sophisticated with all of the elements of their HRM approach and can therefore focus their
efforts at one level.
In contrast to the US firms, the Asian firms emphasise HRM philosophies as the key in their stable environment,
although they have adopted some of the other HRM elements as they felt appropriate (i.e. “adapted” elements).
Again, whether primacy is given to the firm, or its environment, the emphasis on one strata of the HRM elements
could be simply a different point of leverage to that of the US firms.
Finally, there is the relatively basic and non-distinctive HRM approach employed by the Australian firms. Perhaps
the basic approach taken by the Australian firms is a reflection of their business environment. That is, they may
perceive that they simply do not have the “luxury” of implementing HRM philosophies, policies and practices that
go beyond that needed to survive in their competitive environment. Further, the relatively seasonal nature of their
environment means that investing in practices such as skill audits may be less useful, given that the assessed
employees are quite likely to move on.

Conclusion

This study found that firms from different regions of the Pacific Rim employed distinctive HRM approaches. The
results reported here have some similarities to the findings of previous studies (e.g. Cheng and Brown, 1998;
Nankervis, 1995), and there was some evidence to support the adoption of a strategic approach to HRM in the
Australian hospitality industry. The Australian firms had a relatively basic approach to HRM. The operationally
sophisticated approach to HRM of the US firms and the adapted philosophical HRM approach of the Asian firms
appear to go beyond the basic approach of the Australian firms. Subsequently, this study is a contribution toward
answering Jackson and Schuler’s (1995) request for research on the nature of the elements of HRM, as influenced
by the country of ownership of the firm, within similar broad environments (i.e. the Australian hospitality
industry).
It is not clear as to whether the HRM approaches of the three respective groups were adopted because of the degree
of competition in their environment, or whether the more stable business environment was chosen by the firm so as
to allow the firm to focus on one or other element of HRM. Future research may wish to examine the causal order of
these factors, although for the moment, it is noteworthy that distinctive approaches to HRM for each of the groups
were found at all.
The key differences between regions found in this study highlight an emphasis on the philosophy of HRM by Asian
firms, an emphasis on the integrated analysis and rewarding of employees by the US firms and the impact of the
business environment on the basic HRM approach of the Australian firms. The finding that respective regions
emphasised either information inclusion or manifest rewards may highlight potential sources of competitive
advantage. That is, it does appear that in terms of their approach to HRM, regions have a differentiating
characteristic that should be harder to imitate due to its basis in the norms of the home region.
The practical ramifications of this study include a recognition that firms often have a HRM approach and that their
approach will give emphasis to certain of the HRM elements. The Australian managers in particular may want to
consider more thoroughly the HRM elements and approach that they employ. All in all, the nature of HRM is varied
and multi-faceted, yet the approach to HRM adopted by managers is another tool in their competitive repertoire.

REFERENCES:
Arrowsmith, J. & McGoldrick, A. E. (1996). HRM service practices: Flexibility, quality and employee strategy.
International Journal of Service Industry Management, 7, 46-62.
Baird, L. & Meshoulam, I. (1988). Managing the two fits of strategic human resource management. Academy of
Management Review, 13, 116-128.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120.
Baron, J. N. & Kreps, D. M. (1999). Consistent human resource practices. California Management Review, 41, 29-
53.
Bartlett, C. A. & Ghoshal, S. (1987a). Managing across borders: New strategic requirements. Sloan Management
Review, 28, 7-17.
Bartlett, C. A. & Ohoshal, S. (1987b). Managing across borders; New organizational responses. Sloan Management
Review, 29, 43-52.
Bechet, T. P. & Walker, L. W. (1993). Aligning staffing with business strategy. Human Resource Planning, 16, 1-16.
Beer, M., Spector, B., Lawrence, P. R., Mills, D. Q. & Walton, R. E. (1984). Managing Human Assets. Free Press:
New York.
Cheng, A. & Brown, A. (1998). HRM strategies and labour turnover in the hotel industry: A comparative study of
Australia and Singapore. International Journal of Human Resource Management, 9, 136-154.
Dertouzos, M. L., Lester, R. K., Solow. R. M. & the MIT Commission on Industrial Productivity (1989). Made in
America: Regaining the Productive Edge. Harper Perennial; New York.
DIST. (1998). Monthly Facts Sheet on the Economic Impact of Tourism and the Latest Visitor Arrival Trends:
September. Department of Science and Tourism: Canberra.
Dowling, P. J. & Schuler, R. S. (1990). International Dimensions of Human Resource Management. PWS-Kent;
Boston, MA.
Faulkner, H. W. (1990). Swings and roundabouts in Australian tourism. Tourism Management, 11, 29-37.
Ferner, A. (1994). Multinational companies and human resource management; An overview of research issues.
Human Resource Management Journal, 4, 79-102.
Go, F. M., Monachello, M. L. & Baum, T. (1997). Human Resource Management in the Hospitality Industry. John
Wiley & Sons: New York.
Haley, U. C. V. (1995). Editorial: Why the Asia Pacific matters. Journal of Organizational Change Management, 11,
278-281.
Hendry, C. & Pettigrew, A. (1986). The practice of strategic human resource management. Personnel Review, 15, 3-
8.
Huselid, M. A., Jackson, S. E. & Schuler, R. S. (1997). Technical and strategic human resource management
effectiveness as determinants of firm performance. Academy of Management Journal, 40, 171-188.
Ingram, A. & Baldwin, J. (1996). The new managerialism: Review of human resources development and student
guide to public and private organizations. International Journal of Hospitality Management, 15, 11-18.
Jackson, S. F. & Schuler, R. S. (1995). Understanding human resource management in the context of organizations
and their environments. Annual Review of Psychology, 46, 237-264.
Kopp, R. (1994). International human resource policies and practices in Japanese, European, and United States
multinationals. Human Resource Management, 33, 581-599.
Maull, R. & Childe, S. (1994) Business process re-engineering; An example from the banking sector. International
Journal of Service Industry Management, 5, 26-34.
Morehead, A., Steele, M., Alexander, M., Stephen, K. & Duffin, L. (1997). Changes at Work: The 1995 Australian
Workplace Industrial Relations Survey. Sydney Longman Australia.
Nankervis, A. R. (1993). Enhancing productivity in the Australian hotel industry: The role of human resource
management. Research & Practice in Human Resource Management, 1, 17-39.
Nankervis, A. R. (1995). Management strategies in the production of service: A study of hot 1 practice in Southeast
Asia. Research & Practice in Human Resource Management, 3, 71-83.
Perimutter, H. & Heenan, D. (1974). How multinational should your top managers be? Harvard Business Review,
52, 121-132
Poole, M. & Jenkins, G. (1996). Competitiveness and human resource management policies. Journal of General
Management, 22, 1-19.
Pringle, J. & Tudhope, J. (1996). Family friendly policies: The experiences of three New Zealand companies. Asia
Pacific Journal of Human Resources, 34, 77-89.
Schuler, R. S. (1992). Strategic human resources management: Linking the people with the strategic needs of the
business. Organizational Dynamics, 21, 18-32.
Schuler, R. S., Dowling, P. J. & De Cieri, H. (1993). An integrative framework of strategic human resource
management. Journal of Management, 19, 419-459.
Scully. J. A., Kirkpatrick, S. A. & Locke, E. A. (1995). Locus of knowledge as a determinant of the effects of
participation on performance, affect and perceptions. Organizational Behavior & Human Decision Processes, 61,
276-289.
Spa P., Schuler, P. S. & Jackson, S. E. (1994). Convergence or divergence: Human resource practices and policies
for competitive advantage worldwide. International Journal of Human Resource Management, 5, 267-299.
Tung, R. L. (1990). International human resource management policies and practices: A comparative analysis.
Research in Personnel and Human Resources Management, Suppl. 2, 171-186.
Tung, R. L. & Shadur, M. A. (1997). Introduction: New developments in HRM in the Asia Pacific region. Employee
Relations, 19, 291-297.
Wagner III, J. A. (1994). Participation effects On performance and satisfaction: A reconsideration of research
evidence. Academy of Management Review, 19, 312-330.
Welch, U. (1994). HRM implications of globalization. Journal of General Management, 19, 52-68.
Womack, J. P., Jones, D. L. & Roos, D. (1990). The Machine that Changed the World. Macmillan: New York.