“Flexible HRM” through coordination of interests

Abstract

The purpose of this paper is to explain the mechanism of flexible HRM in terms of coordination of various interests hold by stakeholders such as employers, human resource staffs, frontline managers and employees. In order to adapt to the environment, HR system as the bundle of HR practices has to keep updating its constitution and objectives. In SHRM literature, though the elements of flexible HRM has been specified, the nature of flexibility as organizational process is still ambiguous. Design and implementation of HR practices are not only the result of a compromise between different interests, but also the result of political and distorted decision making. So, by introducing new HR practices though much of problems are solved collectively and individually, other problem solving are put off. Rather, new problems tend to emerge from such a compromise. They show that the evolution of HRM is inevitably contentious and incremental. Two factors enable collective and individual coordination of interests. Firstly, such process is based on stakeholders' multilayer interests. Though interests of stakeholders are different superficially, many of them share an assumption such as the importance of a reasonable level of organizational performance which is able to achieve through cooperation between stakeholders. Secondly, HR practices are “ quasi-rules” which allows stakeholders to interpret and utilize them flexibly.