Path dependency and the role of HR

Abstract

Path dependency is used to assess the dynamics and evolution of workplace experiences in both the New Zealand Public Sector, and the marginalisation of the HRM function in the United Kingdom. In the New Zealand public sector a controlling management style, but weak leadership and low organisational capability came from the freedom-to-manage and accountability ethos of the new public management reforms. These current features then became entrenched through processes such as: learning effects and reward systems as a new cohort of managers rose through the ranks; managerial norms and implicit theories of human behaviours that included a disinterest in socio-technical concepts and strategic HRM. A controlling management style and weak leadership complimented other behaviours and practices, such as risk aversion, and the rise of Ministerial policy advice at the expense of other practices such as service delivery. In the case of UK HRM managers, the GFC provided an opportunity for the HRM function to escape from its traditional marginalised role. However GFC induced innovations such as the implementation of e-HR and service centres further removed the HRM function from strategic conversations and left them as contract managers. The paper ends with an outline of further planned research on how HRM can shift toward a more strategic function.