The relevance of socially responsible blue-collar human resource management. An experimental investigation in a Chinese factory
| DOI | https://doi.org/10.1108/ER-03-2018-0081 |
| Date | 07 October 2019 |
| Pages | 1256-1272 |
| Published date | 07 October 2019 |
| Author | Nick Lin-Hi,Lisa Rothenhöfer,Igor Blumberg |
| Subject Matter | Hr & organizational behaviour,Industrial/labour relations,Employment law |
The relevance of socially
responsible blue-collar
human resource management
An experimental investigation in a
Chinese factory
Nick Lin-Hi
University of Vechta, Vechta, Germany
Lisa Rothenhöfer
University of Mannheim, Mannheim, Germany, and
Igor Blumberg
University of Vechta, Vechta, Germany
Abstract
Purpose –The purpose of this paper is to investigate how Chinese factories can attract and retain blue-collar
workers. While higher wages are typically considered to be an effective HR instrument in this regard, this
paper argues for the relevance of ethics in the HR domain. To this end, the paper develops and tests the
concept of socially responsible blue-collar human resource management (SRBC-HRM).
Design/methodology/approach –In a scenario-based experiment, 296 blue-collar employees from a Chinese
garment factory responded to questionnaires measuring their job choice determinants regarding a fictitious
employer. In the scenarios, pay level (average vs above average) and SRBC-HRM (good vs poor) were manipulated.
Findings –The results revealed significantly positive relationships between SRBC-HRM and Chinese
blue-collar workers’job choice determinants (employer attractiveness, employer prestige and
recommendation intentions), which were moderated by workers’perceived importance of employer
prestige. However, there was no significant effect of above-average pay on the three job choice determinants.
Moreover, average pay in combination with good SRBC-HRM had stronger effects on job choice determinants
than above-average pay in combination with poor SRBC-HRM.
Practical implications –The study highlights the economicrelevance of the ethicaltreatment of employees
in the manufacturing sector.In addition, the findingschallenge the predominantmanagerial viewthat monetary
rewards are the most important factorfor instilling productive employee attitudesand intentions.
Social implications –Poor labor practices are still widespread in factories in emerging countries. By
indicating that SRBC-HRM improves factories’bottom line, the study provides a powerful rationale for
factory managers to improve working conditions.
Originality/value –The present paper introduces the concept of SRBC-HRM specifically tailored to the
context of blue-collar workers in emerging countries, who have received little attention in the literature. In
addition, the findings demonstrate the economic relevance of SRBC-HRM.
Keywords China, Ethics, Emerging countries, Employer attractiveness, Blue-collar workers,
Employer prestige
Paper type Research paper
Introduction
Following the market reforms in the late 1970s, China has established itself as one of the
world’s largest economies at an unprecedented pace and quickly earned the name of the
“world’s factory.”This success story has been driven by the readily available and virtually
unlimited supply of cheap labor that has attracted Western companies in their search for
low-cost production locations. Although China has created millions of higher qualified jobs
over the past years, about one-third of its labor force is still comprised of blue-collar workers
(Fleming and Søborg, 2014), which renders the country one of the world’s largest markets
for blue-collar jobs.
Employee Relations: The
International Journal
Vol. 41 No. 6, 2019
pp. 1256-1272
© Emerald PublishingLimited
0142-5455
DOI 10.1108/ER-03-2018-0081
Received 19 March 2018
Revised 12 October 2018
Accepted 10 December 2018
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0142-5455.htm
1256
ER
41,6
Even though blue-collar workers haveprovided the foundation for China’srisetoaglobal
economic superpower, their workplace situation is still poor. Chinese entrepreneurs often
treat blue-collar workers as expendable resources and “disposable human bodies with a
use-by date”(Chan et al., 2014, p. 522) and the leadership style practiced in Chinese factories
has been described as “managerial despotism characterized by coercion and punishment”
(Choi and Peng, 2015, p. 288). In fact, poor employee rights and safety protection,
discrimination and excessive working hours are still widespread in Chinese factories
(Friedman and Lee, 2010; Lin-Hi and Blumberg, 2017).
However, as the era of cheap and unlimited blue-collar labor in China is gradually coming
to an end (Li et al., 2012), the necessity of modernizing the traditional culture of employment
relations is becoming increasingly evident. The labor-intensive Chinese economy is
increasingly being troubled by labor unrest (Wang, 2016) and shortages of labor (Song,
2017). The problem of labor shortage in the Chinese blue-collar domain is likely to intensify
in future due to low birthrates and enhanced education. In consequence, the ability to attract
and retain blue-collar workers is a key determinant of Chinese factories’future success
(Hofman et al., 2014).
The present study is devoted to Chinese factories’new reality in the HR domain.
Specifically, it analyzes the relevance of socially responsible blue-collar human resource
management (SRBC-HRM) as an instrument to realize win-win situations between blue-
collar workers and factories. We define SRBC-HRM as the fair and respectful treatment of
blue-collar workers and the provision of a decent working environment. SRBC-HRM is
centered on ensuring the physical and psychological integrity of workers and preventing
them from being harmed in the workplace. By addressing the relevance of SRBC-HRM in
China, we respond to recent calls to investigate issues relating to ethics and social
responsibility in HRM in emerging countries (e.g. Jamali and Karam, 2018; Newman et al.,
2016; Hofman et al., 2014; Tymon et al., 2010; Srinivasan and Arora, 2015).
The paper presents the results of a scenario-based experiment that was conducted with
Chinese blue-collar workers to investigate the question of how factories can attract and
retain their workforce. Specifically, we explored first, the effects of above-average pay and
second, the effects of good vs poor SRBC-HRM on three job choice determinants (employer
attractiveness, recommendation intentions and employer prestige). In addition, we explored
the moderating role of perceived importance of employer prestige. Finally, we addressed the
question whether poor SRBC-HRM can be compensated by above-average pay.
Research background and hypotheses development
As the majority of research in the HRM domain is centered on white-collar workers (Batt
and Banerjee, 2012), HRM in the blue-collar domain remains an understudied topic (Chen
et al., 2016; Sassi et al., 2015). In addition, HRM studies in emerging countries are rare
relative to studies in the Western world (Horwitz, 2017; Yeganeh and Su, 2008). This is
somewhat surprising given blue-collar workers’utmost importance for the economic
development of emerging countries. Thus, it is valuable to devote more attention to the
analysis of effective HRM for blue-collar workers outside of the Western world.
Many managers in emerging countries believe that blue-collar HRM can simply be
equated to monetary compensation (Domat et al., 2013). For example, employers in China
typically react to strikes and worker protests by promising higher wages (To and Tam,
2014). Of course, the generation of income is an important reason for employees around the
world to take a job ( Judge et al., 2010). However, the debate about the relationship between
payment and work-related outcomes is controversial. On the one hand, research
demonstrates that money is a critical instrument to foster favorable employee attitudes,
intentions and behaviors (e.g. Cable and Judge, 1994; Shaw and Gupta, 2015). On the other
hand, scholars highlight that monetary compensation is less important for and sometimes
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Relevance of
SRBC-HRM
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