The Adoption of a National Human Resource Development Standard: The Role of Internal and External Pressures Aileen Carmel Murphy B.Ed. (Hons) M.Sc. Thesis submitted for the Degree of Doctor of Philosophy University of Limerick Research Supervisor: Professor Thomas Garavan Submitted to the University of Limerick May 2016 1 Declaration I declare that this thesis represents my own work. _________________________________________ Aileen Murphy i Acknowledgements I would like to thank the following people: My supervisor Professor Thomas Garavan for his insight, guidance and encouragement throughout the process Dr. Richard Hayes, Head of School of Humanities and Mr. Ray Cullen, Head of Department of Languages, Tourism and Hospitality for their support Mr. J.J. Casey for his assistance with the statistical analysis Mr. Tony Dunbar from Foras Áiseanna Saothair Mr. Fergal O’Byrne, Ms. Michelle Browne and Ms. Patricia Whelan from the National Standards Authority of Ireland I would like to acknowledge the support of my family and friends throughout ii Dedication In memory of my parents Evelyn and Daniel who gave me such strong foundations My husband Jim for his love and understanding My children Evelyn and James who are a source of joy and inspiration iii Abstract This study investigates the internal and external pressures which explain the adoption or non-adoption of the Irish human resource development standard among organisations. National governments use a variety of strategies and policy measures to encourage organisations and individuals to invest in human capital. A National human resource development standard (NHRD) is one such measure. This research moves beyond the dominant view in the literature that organisations adopt practices for rational reasons. This is the first study to utilise institutional theory to explain the adoption of a NHRD standard. Organisations that had adopted the Irish NHRD standard and non-adopter organisations were surveyed. The results of the logistic regression analysis show that there are some notable differences between adopter and non adopter organisations. This study makes some important contributions as it offers empirical evidence that some relationships between adoption of a NHRD standard and independent variables do exist. The research model and associated hypotheses advances the theoretical understandings of the internal and external pressures which explain the adoption of a NHRD standard. The results provide a new means of understanding organisations’ responses to the internal and external pressures in the adoption of a NHRD standard.This study adds to a currently sparse literature on the adoption of a NHRD standard. iv Illustrations Tables 2.1 Comparison of HR and related standards...............................................37 2.2 Cumulative number of adoptions of ETP 1996–2005............................50 2.3 Number of new adoptions of ETP 2006–2013.......................................50 2.4 Evaluation of adoption rationales...........................................................76 3.1 Ontology, epistemology, methodology and methods.............................99 3.2 Philosophical assumptions of positivism..............................................100 3.3 A Comparison of nomothetic and ideographic research methods – a continuum.............................................................................................101 3.4 Positivist principles and interpretivist principles.................................103 3.5 Hypotheses and measures table............................................................111 4.1 Sample characteristics..........................................................................126 4.2 Inter-correlation analysis......................................................................132 4.3 Logistic regression: Explaining the adoption of Excellence Through People...................................................................................................136 5.1 Key findings Figures 2.1 Research model......................................................................................83 Appendix B1 Singapore Business Excellence Framework.........................................225 Appendix B2 Singapore Business Excellence Certifications and Award...................226 v Abbreviations ANSI American National Standards Institute BEMs Business Excellence Models BSI British Standards Institute CIPD Chartered Institute of Personnel and Development CSR Corporate Social Responsibility EFQM European Foundation for Quality Management ETBs Education and Training Boards ETP Excellence Through People FÁS Foras Áiseanna Saothair FDA Food and Drug Administration FDI Foreign direct investment FET Further Education and Training HPWPs High Performance Work Practices HR Human Resources HRD Human Resources Development HRM Human Resources Management HRPA Human Resources Policy Association IBEC Irish Business and Employers Confederation’ ICT Information and communication technology IDA Industrial Development Authority IFRS International Financial Reporting Standards IIP Investors in People IIPUK Investors in People UK IITD Irish Institute of Training and Development ISO International Organisation for Standardisation LECs Local Enterprise Companies (Scotland) LSCs Learning and Skills Councils MNCs Multi-national corporations NHRD National Human Resource Development NHRDS National Human Resource Development Standards PD People Developer PE People Excellence SABPP South African Board for People Practices SAI Social Accountability International SHRM Strategic Human Resource Management SMEs small to medium-sized enterprises SOLAS An tSeirbhís Oideachais Leanúnaigh agus Scileanna SQA Singapore Quality Award SQC Singapore Quality Class T&EA Training and Employment Agency Ireland TECs Training and Enterprise Councils TQM Total Quality Management VECs Vocational Educational Committees vi Contents Abstract .................................................................................................................................. iv Illustrations ............................................................................................................................. v Abbreviations ......................................................................................................................... vi Chapter 1 Introduction ............................................................................................................... 1 1.1 Introduction ......................................................................................................................... 1 1.2 Study Context ....................................................................................................................... 1 1.2.1 The Irish Context ........................................................................................................... 2 1.2.2 Global Context .............................................................................................................. 5 1.3 Definition of Standards ........................................................................................................ 7 1.3.1 National and International HRM and HRD Standards ................................................... 8 1.4 Research Question and Rationale ........................................................................................ 9 1.5 Thesis Structure ................................................................................................................. 14 1.5 Conclusion .......................................................................................................................... 16 Chapter 2 Literature Review ..................................................................................................... 17 2.1 Introduction ....................................................................................................................... 17 2.2 Global Trend Towards Increased Standardisation of Organisational Practices ................. 19 2.3 Types of Standards ............................................................................................................. 23 2.4 National and International HRM and HRD Standards ........................................................ 29 2.5 Effectiveness of NHRD Standards ...................................................................................... 30 2.6 Adoption and Diffusion of NHRD Standards ...................................................................... 44 2.6.1 Adoption of ETP .......................................................................................................... 48 2.7 Rationales for Adoption of HR Standards .......................................................................... 51 2.7.1 The Rational Rationale ................................................................................................ 51 2.7.2 The Strategic Choice Rationale ................................................................................... 54 2.7.3 The Psychodynamic Rationale .................................................................................... 57 2.7.4 The Cultural Rationale ................................................................................................. 59 2.7.5 The Political Rationale ................................................................................................. 63 2.7.6 The Dramaturgical (Rhetorical) Rationale ................................................................... 65 2.7.7 The Institutional Rationale .......................................................................................... 67 2.7.8 Evaluation of Adoption Rationales .............................................................................. 80 2.8 Research Model ................................................................................................................. 81 2.8.1 Internal Business Factors Influencing the Adoption of a NHRD Standard .................. 84 vii 2.8.2 External Factors Influencing the Adoption of a NHRD Standard ................................ 89 2.9 Conclusion .......................................................................................................................... 95 Chapter 3 Study Methodology .................................................................................................. 97 3.1 Introduction ....................................................................................................................... 97 3.2 The Study Context .............................................................................................................. 97 3.2.1 Research Question and Rationale ............................................................................... 98 3.4 Approaches to Research .................................................................................................... 99 3.5 Methodological Approach ............................................................................................... 100 3.6 The Research Instrument ................................................................................................. 103 3.7 Measures .......................................................................................................................... 105 3.7.1 Control Variables ....................................................................................................... 105 3.7.2 External Factors and Adoption .................................................................................. 105 3.7.3 Internal Business Factors and Adoption ................................................................... 108 3.8 The Study Sample ............................................................................................................. 118 3.9 Fieldwork .......................................................................................................................... 118 3.10 Data Analysis .................................................................................................................. 119 3.11 Conclusion ...................................................................................................................... 121 Chapter 4 Findings .................................................................................................................. 123 4.1 Introduction ..................................................................................................................... 123 4.2 Sample Characteristics ..................................................................................................... 123 4.3 Inter-correlation Analysis ................................................................................................. 129 4.4 Hypothesis Testing ........................................................................................................... 133 4.5 Conclusion ........................................................................................................................ 136 Chapter 5 Discussion Chapter ................................................................................................. 137 5.1 Introduction ..................................................................................................................... 137 5.2 Contribution of this Study ................................................................................................ 137 5.3 Key Contributions ............................................................................................................. 140 5.7 Study Limitations ............................................................................................................. 155 5.8 Recommendations for Future Research .......................................................................... 156 5.9 Implications for Practice .................................................................................................. 161 5.10 Conclusion ...................................................................................................................... 162 References ................................................................................................................................. 163 Appendices ................................................................................................................................. 197 viii Appendix A: The Emergence of HR Standards ....................................................................... 197 Appendix B: Singapore Business Excellence Framework ....................................................... 223 Appendix C: Original Excellence Through People Standard ................................................... 225 Appendix D: 2004 Revision of Excellence Through People Standard .................................... 233 Appendix E: Excellence Through People 1000:2012 .............................................................. 243 Appendix F: Adopter Questionnaire ...................................................................................... 255 Appendix G: Nonadopter Questionnaire ............................................................................... 266 Appendix H: Cover email to respondents .............................................................................. 277 ix
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