HUMAN RESOURCE FLOW POLICIES : STRATEGIES FOR COMPANIES IN SINGAPORE'S LABOR SCARCE ENVIRONMENT

Abstract

Data regarding human resource management policies, organizational goals and strategies, and work practices were gathered from 105 Singapore firms. The relationship between organisational factors and internal orientation (employment security, labor turnover, seniority-based rewards, employee development, internal promotion, and organizational culture) were examined. Larger size firms; public sector organisations; firms that utilized small, mass and continuous production processes; firms which were branches (as opposed to being an independent organization); firms which employed workers with higher levels of education; firms with more complex jobs; and Singapore firms (as opposed to foreign-invested firms) were more likely to have an internal orientation. On the other hand, firms in the manufacturing sector; firms with a union presence; firms that utilized large batch and customized production processes; and U.S. and Japanese firms were less likely to have an internal orientation. In addition, the relationships between internal orientation, firms with 'high road' HRM policies (cultivating a superior work force rather than minimizing labor costs), and high performance work practices (teams and employee participation programs) were examined. The analysis of the data indicated that staffing orientation seemed to be a two dimensional construct, and not a unitary construct. One dimension involved developing employee potential (internal development and promotion) while the second dimension related to policies that promoted employment stability (seniority-based rewards and employment security). Using this two dimensional construct, further analysts revealed that policies that emphasized developing employee potential were positively and significantly associated with both high road HR.M policies and high performance work practices. However, employment stability policies were negatively (though not significantly) associated with high road HRM policies and high performance work practices.