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Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry
Abstract
Using a unique international data set from a 1989–90 survey of 62 automotive assembly plants, the author tests two hypotheses: that innovative HR practices affect performance not individually but as interrelated elements in an internally consistent HR “bundle” or system; and that these HR bundles contribute most to assembly plant productivity and quality when they are integrated with manufacturing policies under the “organizational logic” of a flexible production system. Analysis of the survey data, which tests three indices representing distinct bundles of human resource and manufacturing practices, supports both hypotheses. Flexible production plants with team-based work systems, “high-commitment” HR practices (such as contingent compensation and extensive training), and low inventory and repair buffers consistently outperformed mass production plants. Variables capturing two-way and three-way interactions among the bundles of practices are even better predictors of performance, supporting the integration hypothesis.
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“We did not find practices such as quality circles or team improvement workshops that are otherwise a core element of lean production concepts (Adler & Borys, 1996;Macduffie, 1995;Vidal, 2022).”
From Between control and participation: The politics of algorithmic management (2025) · cites this paper as Macduffie, 1995
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Cited by
HUSELID, M. A. (1995) · Academy of Management Journal · doi:10.2307/256741 · Cited by 9,342
What Firms Do? Coordination, Identity, and Learning
Kogut, B., & Zander, U. (1996) · Organization Science · doi:10.1287/orsc.7.5.502 · Cited by 3,078
Understanding HRM–Firm Performance Linkages: The Role of the “Strength” of the HRM System
Bowen, D. E., & Ostroff, C. (2004) · Academy of Management Review · doi:10.5465/amr.2004.12736076 · Cited by 2,996
Lean manufacturing: context, practice bundles, and performance
Shah, R., & Ward, P. T. (2003) · Journal of Operations Management · doi:10.1016/s0272-6963(02)00108-0 · Cited by 2,897
Defining and developing measures of lean production
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Metadata
- Authors
- Macduffie, J. P.
- Venue
- ILR Review
- Publisher
- SAGE Publications
- Published
- 1995-01
- Volume
- 48
- Issue
- 2
- Pages
- 197-221
- ISSN
- 0019-7939
- 2162-271X
- Cited by
- 1,809
- References
- 2
- Language
- en
- Licence
- journals.sagepub.com/page/policies/text-and-data-mining-license (tdm)
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