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The Model of Negative Externality for Sustainable HRM

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Sustainability and Human Resource Management

Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

Abstract

Although human resource management (HRM) literature has provided abundant insight into strategies used to improve employee effectiveness for company performance, relatively limited research exists on the harm or negative externality that those HRM practices can have on employees and the community. This article explores the negative externality of HRM practices that is imposed by organizations on employees, their families and communities. A conceptual model of negative externality for Sustainable HRM is proposed to provide a framework for HRM practitioners and researchers to understand the resulting harm of some HRM practices on employees, their families and communities. To highlight the practical implications of the model, downsizing, a widely used business turnaround strategy to improve business efficiency, is analyzed for its negative externality. Subsequently, the role of Sustainable HRM practices which can minimize such harm is examined. Practical and empirical implications of the negative externality of HRM practices are explored.

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Acknowledgments

I thank Dr. Ina Ehnert for resurrecting my passion to publish in the field of Sustainable HRM. I also extend my appreciation to Prof. Barry Fallon, Nancy Reid and two anonymous book chapter reviewers for reviewing this article and providing useful comments.

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Authors and Affiliations

  1. School of Business (Melbourne), Australian Catholic University, Melbourne, Australia

    Sugumar Mariappanadar

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  1. Sugumar Mariappanadar
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Correspondence to Sugumar Mariappanadar .

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Editors and Affiliations

  1. , Louvain School of Management, Université Catholique de Louvain, Place des Doyens 1, Louvain-la-Neuve, 1348, Waals Brabant, Belgium

    Ina Ehnert

  2. , Cass Business School, University of Chester, Picts Lane 21, Princes Risborough, HP27 9DX, United Kingdom

    Wes Harry

  3. University of Kaiserslautern, Gottlieb-Daimler-Straße, Kaiserslautern, 67663, Germany

    Klaus J. Zink

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Mariappanadar, S. (2014). The Model of Negative Externality for Sustainable HRM. In: Ehnert, I., Harry, W., Zink, K. (eds) Sustainability and Human Resource Management. CSR, Sustainability, Ethics & Governance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-37524-8_8

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