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HRM in the German Business System: A Review


  • Angelo Giardini

    () (Justus-Liebig-Universitaet Giessen)

  • Ruediger Kabst

    (Justus-Liebig-Universitaet Giessen)

  • Michael Muller-Camen

    (International University in Germany)


Human resource management in Germany is deeply rooted in its institutional environment. Thus, US style HRM cannot be simply transferred to the German context. Nevertheless, the German business system is not hostile to HRM principles. Rather, these practices have to be adapted to the demands and constrains of the German socio-economic context. The key labour market institutions of collective bargaining, co-determination, and initial vocational training in particular require a pluralist style of human resource management. As our review suggests, these institutions support the implementation of some HRM principles while inhibiting others. Also, the concept of Strategic HRM in Germany may only be fully understood against the background of labour market institutions.

Suggested Citation

  • Angelo Giardini & Ruediger Kabst & Michael Muller-Camen, 2005. "HRM in the German Business System: A Review," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 16(1), pages 63-80.
  • Handle: RePEc:rai:mamere:1861-9908_mrev_2005_01_giardini

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    References listed on IDEAS

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    1. repec:kap:asiapa:v:35:y:2018:i:1:d:10.1007_s10490-017-9522-3 is not listed on IDEAS
    2. repec:spr:manint:v:55:y:2015:i:3:d:10.1007_s11575-013-0197-9 is not listed on IDEAS
    3. Festing, Marion & Sahakiants, Ihar, 2013. "Path-dependent evolution of compensation systems in Central and Eastern Europe: A case study of multinational corporation subsidiaries in the Czech Republic, Poland and Hungary," European Management Journal, Elsevier, vol. 31(4), pages 373-389.

    More about this item


    HRM; National Business System; Neo-Institutionalism; Industrial Relations; Germany;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General


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