International Business Management

Year: 2014
Volume: 8
Issue: 1
Page No. 13 - 23

HR-Line Relationship in Integrated and Devolved HRM and Agency Theory:A Conceptual Analysis

Authors : Nadia Newaz Rimi and YuslizaMohd Yusoff

Abstract: Researchers identify integration and devolution as two paradoxical elements of Human Resource Management (HRM). Integration is related with centralization of HRM and linking HRM strategies with business strategies. HR professionals are responsible for integrating HRM that is widely referred as strategic HRM. On the other hand, devolution is the involvement of line managersto take administrative or technical HRM decisions. Thus, both HR professional and line managers are found agents for HRM and performing differing HRM. However, both agents need to cooperate each other in performing their contradictory HR tasks. For strategic contribution, HR managers need to work with line managers for understanding business strategy and aligning HR strategy with them. Conversely, line managers require HR managers assistance and support in developing line competency to perform administrative HRM consistently. The present study reviews extant literatures on integration and devolution and accumulates the scattered comments on HR-line relationship. HR professionals and line managers are found to work in a partnership relation while performing differing HRM. Moreover, this study contributes to relate agency theory as a theoretical basis for creating partnering relation between HR professionals and line managers.

How to cite this article:

Nadia Newaz Rimi and YuslizaMohd Yusoff, 2014. HR-Line Relationship in Integrated and Devolved HRM and Agency Theory:A Conceptual Analysis. International Business Management, 8: 13-23.

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