The totalitarian dynamic behind HRM's democratic façade

The terms 'authoritarian' and 'democratic' are political concepts often applied as a means of distinguishing human resource management (HRM) from older forms of labour management, the common assertion being that former authoritarian practices have become more democratic under HRM. This article challenges this view by arguing that the foundational principles and practices of HRM, when orientated by the expectations of a 'desired' organisational culture, cast it into a role that involves mobilising the collective psychology of organisational members to accept willingly the legitimacy of managerial authority and the virtues of firm loyalty. It is suggested that such a role has no parallel in orthodox democratic arrangements; that if political concepts are to be applied to the way labour is managed under HRM, a clearer affinity exists with the aims and practices of totalitarian regimes and their use of propaganda and other means to control civilian populations. Key points: This article challenges the assumption that HRM is cast in the spirit of democracy. HRM's foundational principles and functional practices are instead more closely aligned with totalitarian conceptions of social control. This is evidenced by HRM's role in mobilising the collective psychology of employees in accordance with a 'desired' workplace culture proscribed by organisational leaderships.

HRM retrenchment practices and firm performance in times of economic downturn: exploring the moderating effects of family involvement in management

A substantial number of studies have indicated a significant negative relationship between human resource management (HRM) retrenchment practices such as downsizing, and firm performance. However, a consideration of the potential effects of business family involvement in management is largely absent from the general employment restructuring literature. Using a sample of 218 Taiwanese publicly listed firms, this study seeks to further our understanding in this area by examining the moderating effects of family involvement in management on the relationship between the adoption of HRM retrenchment practices and firm performance during the period of global economic downturn that erupted in the middle of 2008. Data analysis reveals that HRM retrenchment practices had a negative influence on firm performance, and that the relationship between HRM retrenchment practices and firm performance was negatively and significantly moderated by family involvement in management.