THE ROLE OF HRM IN FOSTERING INNOVATION­ A CASE STUDY OF A DUTCH TECHNICAL COMPANY

Abstract

This article discusses the relation between Human Resource Management (HRM) and innovation. Through a case study, in­depth information is collected that may give new insight into how HRM can influence innovation. The case study is a Dutch technical company, a Dutch branch of a German global corporation. It delivers innovative customer solutions in factory automation. The guiding question for the study was “Which HRM practices are important to foster innovation and which HRM practices should receive more attention to achieve the company’s innovation ambitions?” A small questionnaire survey structured along the AMO model (abilities, motivation, and opportunities) and comple­ mentary interviews were conducted. The results show that the company’s HRM has most AMO factors in place, but improvements can be made in cross­departmental teamwork based on team targets instead of individual tasks; these improvements include more facilitated interactions between teams, less focus on quantitative performance standards, and more­flexible organizational procedures and more employee autonomy. The case study indicates that a contin­ gency approach is more appropriate than searching for generalizations of the influence of HRM on innovation and that human resource development/organizational development may be more relevant than working with HRM models such as AMO.

Keywords

• AMO model
• communication
• HRM
• innovation
• performance management
• performance targets
• rewarding