A PARTNERSHIP ROUTE TO HUMAN-RESOURCE MANAGEMENT

Collaborative relationships between firms have been growing in importa nce, including 'partnerships' between customers and suppliers. Institu tional economists and sociologists have different views on the origins , character and consequences of partnership, and the nature of this de bate is outlined, as well as the implications for the reality of 'part nership' and its role in the diffusion of business practice. Against t his background we use case study and survey evidence to explore the tr ansition within the supply chain relationship, from a customer 'demand s' model and hence to 'supplier development'. Supplier development can be seen as an aid to risk reduction, particularly where it involves m anagement control system development in the supply organization. The p artnership implications for the human resource management (HRM) functi on are explored. Supply-side partners are likely to be involved increa singly with activities that will underpin the alliance (for example, t raining, cultural change and removal of industrial relations obstacles to change). These indirect effects may be supplemented by direct invo lvement by the HRM specialists in the customer organization, especiall y where partnership development places strong reliance on the human re source dimensions of the two organizations. Examples of this form of d evelopment are discussed. This evidence is assessed in terms of the di fferent disciplinary approaches discussed at the outset. What emerges most strongly is that although 'partnership' is used to describe many inter-firm relationships, many of these are very unequal and are recog nized to be so, but in other cases evolutionary steps can be taken to reduce the risks involved and lead to apparently equitable alliances. Within this risk reduction process, the role of human resources appear s to be of varying importance.