TOP MANAGEMENTS PERCEPTIONS OF CHANGES IN HRM PRACTICES AFTER UNION ELECTIONS IN SMALL FIRMS - IMPLICATIONS FOR BUILDING COMPETITIVE ADVANTAGE

Management of human resources has been acknowledged as an important fa ctor in developing asustainable competitive advantage. Labor unions ca n have a major impact on human resource management (HRM) practices of firms striving to build a competitive advantage through people. The pu rpose of this article is to explore top management's perceptions of ho w various HRM practices changed in small manufacturing firms after uni on elections. While training activities and the use of screening tests were reported to increase regardless of whether a union was certified , the reported increases were greater after, unions lost elections. Fi rms in which unions were certified reported decreases in merit-based c ompensation, merit-based promotions, and merit-based layoffs, as well as decreases in wages (compared to industry standards). Managers repor ted that employee commitment and turnover significantly decreased in f irms in which unions lost elections. Significant increases in many HRM practices and characteristics that are believed to lead to a competit ive advantage through human resources were reported in firms in which unions lost elections but not in firms where unions were certified.