JOB DESIGN, HR PRACTICES AND POLICIES IN KNOWLEDGE INTENSIVE

FIRMS IN IRELAND
Grinne Kelly, Dublin City University Business School, Dublin City University, Dublin 9,
Ireland; Ph: 353 17006952; Email: grainne.kelly@dcu.ie
Kathy Monks, Dublin City University Business School, Dublin City University, Dublin 9,
Ireland; Ph: 353 17005397; Email: Kathy.monks@dcu.ie
Edel Conway, Dublin City University Business School, Dublin City University, Dublin 9,
Ireland; Ph: 353 17008895; Email: Edel.conway@dcu.ie
Patrick Flood, Dublin City University Business School, Dublin City University, Dublin 9,
Ireland; Ph: 353 17006943; Email: Patrick.flood@dcu.ie
Katie Truss, Kingston Business School, Kingston University, Kingston, UK; Ph: 020
85472000; Email: Katie.truss@kingston.ac.uk
Michele Mastroeni, Kingston Business School, Kingston University; Ph; 020 85472000;
Email: m.mastroeni@kingston.ac.uk
Enda Hannon, Kingston Business School, Kingston University, Kingston, UK; Ph: 020
85472000; Email: e.hannon@kingston.ac.uk

WORKING PAPER
HUMAN RESOURCE MANAGEMENT TRACK

This research is funded by the Irish Research Council for the Humanities and Social
Sciences and the Economic and Social Research Council (RES-062-23-1183). The
financial support of these institutions is gratefully acknowledged.

INTRODUCTION
Knowledge Intensive Firms (KIFs) have been defined as those firms where work is of a
primarily intellectual nature, competitive advantage is based on human capital rather than
physical capital, and where well-educated and qualified employees constitute the majority of
the workforce (Alvesson, 2000; Swart and Kinnie, 2003). KIFs have considerable discretion
in developing and utilising employee skills (Leitch, 2006) and the nature of the human
resource management (HRM) structures and policies adopted is a critical mediator between
external environmental influences and performance outcomes. However, there has been little
research that directly addresses the question of how HRM practices and strategies within KIFs
shape these outcomes (Swart and Kinnie, 2003). This paper addresses this gap and details the
findings of a survey questionnaire to employees in four firms in the pharmecuetical and ICT
sectors in Ireland. The paper begins with an overview of research on knowledge intensive
firms before discussing the findings from the survey.
HRM in KIFs
Defining Knowledge Intensive Firms
The term knowledge intensive has been used to describe three broad contexts: knowledge
intensive work, knowledge workers and knowledge intensive firms (Alvesson, 2000).
Alvesson (2001) suggests that the distinction between knowledge-intensive and nonknowledge intensive firms is not immediately apparent as all types of work and all types of
work organisations utilise knowledge to some extent. While organisations such as consultancy
companies, advertising agencies, research and development units, high tech companies, law
firms and accountancy practices are generally be classified as KIFs (Swart et al., 2003), many
individuals within such firms may also be engaged in routine work. Thus, such firms may
have pockets of knowledge-intensive activity in areas such as research and development,
while other areas might more accurately be described as labour-intensive.
There is some agreement on the main characteristics of KIFs. First, work within KIFs is
identified as that which is for the most part of an intellectual nature (Alvesson, 1995) and is
undertaken by individuals who are well-educated (Alvesson, 2000). Within KIFs, the
principal resource is identified as the competence of the workforce (Alvesson, 1995; 2000;
Alvesson and Karreman, 2007) and knowledge and expertise are seen as trading assets which
they seek to sell to their clients (Swart et al. 2003: 1). Starbuck (1992) states that knowledge
intensive can be applied to firms in which knowledge has more importance than other inputs
and human capital, as opposed to physical or financial capital, dominates. In addition,
individual expertise is applied to difficult problems through creative and innovative solutions
(Starbuck, 1992). Swart and Kinnie (2003: 62), in summarising the literature in their study on
knowledge sharing in KIFs define these firms as:
the organisations within a knowledge economy (Drucker, 1993) that employ highly
skilled individuals and therefore create market value through the application of
knowledge to novel, complex client demands.
Swart and Kinnie (2003) further suggest that KIFs can be defined in terms of their emphasis
on:
1. The nature and quality of their highly skilled human capital. The flow from human
capital to intellectual capital is seen as an important factor in defining knowledge
intensive processes;
2. The work processes that create market value through knowledge; and

3. The deployment of the knowledge involving innovation, initiative and competence

building in the provision of bespoke services.
Knowledge Work
Frenkel et al. (1995: 773) describe knowledge work as a shift towards people-centredness
characterised by an emphasis on theoretical knowledge, creativity and the use of analytical
and social skills. Benson and Brown (2007:125) develop this distinction further by
suggesting that knowledge work has three distinct but interrelated attributes: variation and
the dynamic nature of the work undertaken (Scarbrough, 1999); the degree of reciprocal
interdependence of work with other tasks being performed in the organisation (Cortada, 1998;
Scarbrough, 1999); and the degree of autonomy employees have in carrying out their work
(Kubo and Saka, 2002). They further suggest that knowledge workers will need to make
numerous judgements about a variety of job-related issues and it is this uncertainty in the
decision-making process that is a key characteristic of knowledge work (Mohrman et al.,
1995: 17). Other insights into the nature of knowledge work are provided by Alvesson (1995:
1000-1004) who notes that the work of knowledge workers is more aptly characterised as
ambiguity intensive rather than knowledge intensive. He suggests that these workers may
have a traditional knowledge type linking science and rational problem solving and requisite
knowledge, as well as a particular subjectivity requiring an ability to deal with complexity
and uncertainty.
Human Resource Management Systems in KIFs
Swart et al. (2003:43) suggest that the people management practices that play a key role in the
successful management of employees within knowledge-intensive firms are:
Attracting, developing, rewarding and retaining human capital;
The development of human capital through work organisation and exposure to
challenging projects as a tool to develop cutting-edge skills;
Reward in the form of redundant time for development;
The centrality of performance management;
The intensification of social capital (i.e. knowing who to ask, when to ask and what to
ask about when trading in a knowledge currency);
Managing clients and relationships with other partners in external networks.
However, they identify a number of tensions in this management process. These tensions
concern the balancing of the interests of individual knowledge workers and the need to share
knowledge within and between organisations; the need to identify with the employing
organisation, the client and the clients profession; and the need for formal explicit policies
and procedures and for more informal embedded practices. Collins and Smith (2006) suggest
that it is the tacit knowledge content of competencies and capabilities rather than the explicit
knowledge that underlines a firms basis for competitive advantage.
An increasing body of research points to the importance of human resource practices for
effective knowledge sharing between employees (Hunter et al., 2002; Cabrera and Cabrera,
2005). Collins and Smith (2006) found that commitment-based HR systems were significantly
related to knowledge exchange and combination and that a large proportion of the relationship
between these practices and firm performance was explained by the mediating effects of
knowledge exchange and combination. Robertson and O Malley Hammersely (2000)
conducted a longitudinal, qualitative study of a specialist UK business and scientific
consultancy firm and examined how HRM practices influenced both the attitudes of their
consultants to share their knowledge and levels of employee satisfaction. They found that the
3

firm used a wide range of HR practices which underpinned employees positive attitudes
towards knowledge sharing and high levels of job satisfaction and organisational
commitment. These practices included: recruitment and selection (where workers were chosen
for how well they fitted with the knowledge sharing culture); training and development
(where workers had a lot of autonomy to decide on their own training and development
requirements) and job design (where the workers were granted significant autonomy over how
they worked and the development of a culture of informality and openness to knowledge
sharing).
The case for new approaches to managing knowledge workers is argued by Casse (1994) who
states that conventional HR approaches do not address the issue of retaining a degree of
managerial control, while at the same time fostering a culture that promoted creativity,
autonomy, and innovation. Kalra (1997) also highlights the need for a new way of managing
knowledge employees in proposing the concept of human potential management. Human
potential management is a system characterised by a focus on self management, which
fosters peoples potential and enables them to use it, thus creating advantages for both the
individual and ultimately the organisation. Kalra argues that there needs to be continuous
updating of organisational policies, structures and systems, which enable employees to
autonomously achieve their potential. Despite this acknowledgement of the need to manage
knowledge workers differently, the majority of this literature, however, generally lacks
substantive empirical evidence and little research exists on the individual experience of the
people management practices adopted by KIFs (Shipton et al., 2006).

THE RESEARCH
Background to the Study
This research is part of a comparative research project into (KIFs) in Ireland and the UK. The
aim of the study is to explore how Ireland and the UK differ in their approach to industrial
policy and labour market planning for knowledge intensive firms (KIFs), and the impact these
differences have on HRM policies and practices and outcomes at the level of the firm. The
research focuses on outcomes such as innovation, knowledge sharing, skill levels and
employee well-being. The study compares approaches to managing among KIFs that operate
in the pharmaceutical and information and communication technology (ICT) sectors and
consists of an on-line survey and interviews in eight organisations, four from each of the
sectors, in both Ireland and the UK.
Sample and Procedure
The findings reported in this paper are based on an on-line survey within four firms in the
pharmaceutical and ICT sectors in Ireland between February and May 2009. The
questionnaires were administered using Survey Monkey to employees who had access to a
PC. Table 1 provides a breakdown of the companies. As Table 1 shows a good response rate
was achieved within these firms.
Table 1: Summary of Sample Sizes and Response Rates
Sector/ Company
Pharma 1
Pharma 2
ICT 1
ICT 2
Total

Questionnaires
Administered
210
122
50
90
472

Questionnaires
Completed
131
77
49
49
306

Response Rate
62%
63%
98%
54%
69%

The measure of HR practices used within the questionnaire draws largely on those items
employed by Collins and Smith (2006), but also draws heavily on theorising by Kang and
Snell (2009) about what constitutes HR systems that promote explorative and exploitative
learning. The research team devised a list of items to represent each type of system, but also
included items related to employee centred HR practices that to date have been largely
unmeasured in empirical research to date (REF). The HR practices measure included 34
items, which spanned the areas of selection, socialisation, training, performance management,
career development, employee involvement, teamwork, employee-management relations,
equality and diversity. Response options range from (1) strongly disagree to (5) strongly
agree. This paper deals with a comparison between the firms of attitudes to these HR
practices. Although a series of t test were conducted to explore if there were differences
between the firms, no significant differences emerged.
FINDINGS
The findings are described under two inter-related sections: job design and HR policies and
practices.
Job Design
Figure 1 displays the mean scores for respondents views on the design of their job along the
three dimensions of routine, task interdependence and autonomy. In addition employees
views on the levels of ability-job fit are indicated. The scores for routine tasks and job
autonomy are just above average with those for task interdependence and job-ability fit
higher. Table 2 provides a more detailed analysis of some of the items in each of the
measures.
5

Figure 1: Job Design Mean Scores

4
3
2

R o ut ine T a s k s

3.7

3.5
3.3

T a s k int e rde pe nde n c e

J o b A ut o no m y
A bilit y- J o b F it

As Table 2 shows a half of respondents in the pharmaceutical sector and 65% of ICT sector
employees agreed that they could choose the way to go about doing their jobs. A high
proportion of employees across both sectors (87% pharmaceutical and 85% ICT) indicated the
variety of work tasks that they undertake. The high level of interdependency between tasks in
the firms across both sectors is evidenced by the fact that the majority of respondents (79%
pharmaceutical and 81% ICT) indicated that they were dependent on other employees or other
sections of the firm. For a significant proportion of respondents in each sector, ability-job fit
is high, with 85% of pharmaceutical sector staff and 90% of ICT employees indicating that
they feel competent and fully able to handle their jobs.

Table 2: Job Design Details

Job Design and Knowledge Work
My job has variety
My job cannot be done unless other sections do their work
I am able to choose the way to go about doing my job
I feel competent and fully able to handle my job

Pharma
%Agree
87%
79%
50%
85%

ICT
%Agree
85%
81%
65%
90%

Employee Attitudes to HR Practices

Figure 2 presents the mean scores for attitudes towards each of the HR practices. Attitudes to
all practices could be broadly described as neutral although attitudes to practices that relate to
information and communications and performance management are higher than those relating
to development or employability. Each of these practices is described in more detail below.

Figure 2: Employee Satisfaction with HR Practices across the Pharmaceutical and ICT
sectors Mean Scores

4
R e wa rd s

3
T ra in in g

D e v e lo pm e n t

3.5

3.7

3.3

3.7

3.3

P e rf o rm a nc e M a n a ge m e n t

P ro m o t io n

2.9

In f o rm a t io n a nd C o m m unic a t io ns
E m p lo ya bilit y

Table 3 examines employee attitudes to the rewards in their organisation. Just over half the
respondents in the pharmaceutical sector (57%) and just under half of respondents in ICT
(48%) considered that the reward package was fair when compared to others doing a similar
job within their company. 51% of respondents in the pharmaceutical sector and 44% of ICT
employees felt that they were rewarded for new ideas or innovations. Across both sectors,
about a third of respondents (37% in pharmaceutical and 35% in ICT) felt that they were
rewarded for sharing knowledge with co workers.
Table 3: Attitudes to Rewards Details
Employee Attitudes to Rewards
My reward package is fair compared to others doing a similar job
in this organisation
I am rewarded for new ideas or innovations
I am rewarded for sharing knowledge with my co workers

Pharma
%Agree

ICT
%Agree

57%
51%
37%

48%
44%
35%

Table 4 examines attitudes to training and development in more detail. One of the issues for
many employees is the extent to which they can deepen their specialist or technical skills
and/or obtain training and development that will enhance their skills in a broad range of areas.
In relation to specialist skills, about half of respondents in pharmaceutical firms (58%) and

ICT firms (51%) felt that they received training that keeps their technical skills up to date. In
relation to the acquisition of generalist skills, 59% of pharmaceutical employees and 58% of
employees in ICT indicated that they were encouraged to enhance their skills through ongoing
training and development in a broad range of areas. Only 19% of respondents in ICT and 34%
of the employees in the pharmaceutical sector indicated that they had experienced job rotation
as part of this skill enhancement.
Table 4: Attitudes to Training and Development Details
Employee Attitudes to Training & Development

Pharma
%Agree
I receive training that keeps my technical skills up to date
58%
I am encouraged to enhance my skills through on going training and development
in a broad range of areas
59%
I am rotated around various positions so that I can learn a broad range of skills
34%

ICT
%Agree
51%
58%
19%

Table 5 examines views on performance management. Around two thirds of respondents in

each sector indicated that their organisation uses competency based performance measures.
Around three quarters of respondents indicated that their performance was assessed on the
basis of their results or output. 54% of pharmaceutical sector employees and 60% of ICT
employees felt that their performance appraisal assisted in the development of their skills and
abilities.
.
Table 5: Attitudes to Performance Management Details
Employee Attitudes to Performance Management

Pharma
%Agree

My performance is assessed based on a set of clearly defined

competencies
69%
My performance is assessed based on the results/output that I achieve
through on going training
76%
My performance appraisal focuses on developing my skills and abilities
54%

ICT
%Agree
64%
77%
60%

Table 6 provides detail on views on promotion. One of the concerns that employees may have
is the extent to which there are opportunities internally for promotion to senior level positions,
or whether such positions are primarily filled by external applicants. Nearly three quarters of
pharmaceutical sector employees (70%) and 60% of ICT respondents were of the view that
higher level positions were filled by internal promotions. Respondents were more or less split
between those who felt that they had all the opportunities they needed to get promoted and
those who felt that they did not have such opportunities. There was limited evidence of
mentoring in either sector.
Table 6: Promotion Details
Employee Attitudes to Promotion
Most higher level promotions here are filled by internal promotions
I have opportunities to meet with a mentor who provides support
and advice

Pharma
%Agree
70%

ICT
%Agree
60%

35%

40%

Table 7 indicates employees attitudes about their employability. Knowledge employees, such
as those working in pharmaceutical and ICT industries, are individuals whose capabilities can
easily be lost to a firm as, once they leave, the knowledge and skills they possess departs with
them and it is difficult to either capture or replace what is essentially tacit knowledge. Thus,
investment in knowledge employees is both risky and expensive. At the same time, KIFs
need to invest in the training and development of staff in order to ensure that staff have the
competencies required to undertake their jobs and are kept motivated by being challenged
with new ideas and experiences. As Table 7 shows, around half of employees in both sectors
felt that their skills were sought after in the labour market. However, the current labour
market is such that only around a half of respondents in both sectors felt that they could easily
find jobs if they left the organisation.
Table 7: Attitudes to Employability Details
Employee Attitudes to Employability
I could easily find another job if I left this organisation
People with my sets of skills are highly sought after in this
labour market

Pharma
%Agree
43%

ICT
%Agree
47%

50%

56%

Table 8 identifies attitudes to participation. Responses were higher in relation to information

and communications at organisational rather than local levels. Thus, 91% of the
pharmaceutical respondents and 82% of the ICT employees agreed that there were formal
systems for sharing information with employees. However only 62% of the pharmaceutical
respondents and 60% of the ICT respondents felt that their manager kept them well informed
about important decisions or changes within the firm. Similarly, in relation to participation in
decisions that affect their jobs, about half of respondents across both sectors felt that they had
the opportunity to participate in these decisions.
.
Table 8: Attitudes to Participation Details
Employee Attitudes to Participation

Pharma
%Agree

ICT
%Agree

53%

56%

62%

60%

91%

82%

I have the opportunities to participate in decisions that affect my job

My manager keeps me well informed about important decisions
or changes within the organisation
My organisation has formal systems for sharing information with
employees

DISCUSSION
Job Design
The literature suggests that the design of jobs is of crucial importance to those who are
engaged in knowledge work and variety, interdependence and autonomy have been shown to
be crucial elements in job design (Cabrera and Cabrera, 2002; Benson and Brown 2007).
However, although this study found that respondents reported high levels of job variety and
task interdependence, other aspects of job design that have been identified with knowledge
work were not as much in evidence. For example, nearly half of respondents considered that
the duties that comprised those jobs are repetitious and a similar percentage also indicated that

they were never in control of how their jobs were scheduled. Input into choices between tasks
that might be completed was also limited. In all cases, this autonomy was more limited in the
pharmaceutical rather than the ICT sector firms. One possible explanation for these findings
lies in the nature of the industries in which the research was undertaken. The pharmaceutical
industry, although described as knowledge intensive, is also highly regulated with the need to
ensure conformity in drug production. Of necessity, many employees in this industry are
likely to be curtailed in the choices they make in their tasks. While the software industry
might seem less regulated, there is also evidence that there may be distinctions in this industry
between those who are involved in high level design work that involves significant autonomy
and those who are employed in support or testing roles that offer far less (Marks and
Scholarios, 2007).
HR Practices
Overall, the findings indicated fairly neutral attitudes to HR practices across the two sectors.
This finding raises issues about the role of HRM within the firms. The literature suggests that
HR practices are critical in KIFs, particularly in their enhancement of the knowledge sharing
and innovation that are key to organisational performance in such firms (Cabrera and Cabrera,
2002; Swart et al., 2003; Shipton et al., 2006). Yet issues such as development, that would
seem to be important to the enhancement of knowledge creation and transfer activities, were
rated lower than average across all HR practices. In addition, it was surprising to find that the
reward system did not encourage to any great extent knowledge sharing behaviours and was
limited to the extent to which it provided rewards for new ideas. Again these findings may be
interpreted best by reference to the nature of the sectors in which these firms operate. In the
case of development, both sectors need highly specialised skills and, while expenditure on
training may be justified in order to increase these specialist skills, investment in development
may offer less immediate returns. However, such an approach fails to recognise the
importance of redundancy (Nonaka and Takeuchi, 1998) which allows knowledge employees
to engage in activities that outwardly appear to be unconnected with the task at hand but
which in the longer term may reap benefits. In the case of rewards, the systems may simply be
designed in traditional formats which restrict the opportunity to encourage particular types of
behaviours and attitudes.
CONCLUSIONS
The findings of the research are presented as preliminary findings and thus represent a very
static account of the nature of HRM in this sample of firms. The data is still in the process of
being collected and the inclusion of data from the UK will provide the basis for interesting
comparisons to be made.
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