5689629

Journal of Management
1989, Vol. 15, No. 2, 157-180
Current and Recurrent

Challenges In HRM
Cynthia D. Fisher
University of Baltimore
This article reviews recent research progress and identifies future

research needs relevant to two somewhat different constituencies in
HRM: the HR executive, and the operating level HR manager. Issues
primarily of concern to the former include attuning HR policies to the
organization's strategy, managing human resources in an interna-
tional context, dealing with mergers and acquisitions, and downsiz-
ing. Researchers have just begun to explore these critical problems,
and much remains to be done. Daily issues of more concern to oper-
ating level HR practitioners include selection, training, compensa-
tion, and performance appraisal. These topics have been much more
thoroughly researched, though existing knowledge is not being applied
as well as it could be.
In their 1986 yearly review of human resource management (HRM) for the
Journal of Management, Manoney and Deckop identified two different concepts
of the field. These were the "human resource management" focus on an inte-
grated set of internally consistent HR policies designed to facilitate organiza-
tional performance, and the "personnel administration" focus on rather discrete
activities such as recruiting, training, and compensation. These two approaches
have spawned quite different types of research. The newer strategic human re-
source management view often takes the organization or SBU as the unit of anal-
ysis, and explores the fit between HR practices and organizations' environments
and/or strategies. In contrast, research relevant to the traditional personnel
administration approach focuses on the individual as the unit of analysis and ex-
amines variables such as ability, attitudes, and job performance. Both types of
research seem critical to the advancement of the field, and both have made prog-
ress in the last 3 years.
Strategic human resource management seems to have taken root primarily at
the corporate level, where top HR executives are becoming more involved in
strategy formulation. Once a strategic direction is chosen, HR executives have a
crucial role in designing HRM systems that will elicit and reinforce the employee
behaviors necessary to implement the strategy successfully (c.f. Foulkes, 1986;
Address all correspondence to Cynthia D. Fisher, Management Department, University of Baltimore, 1420
North Charles Street, Baltimore, MD 21201.
Copyright 1989 by the Southern Management Association 0149-2063/89/$2.00.
157
158 CYNTHIA D. FISHER
Schuler & Jackson, 1987). The first section of this article will explore recent de-
velopments in strategy-based contingency views of HRM. The second major sec-
tion will address other new and continuing challenges to strategically oriented HR
executives, such as managing human resources in multinational organizations,
dealing with mergers and acquisitions, and downsizing. The third major section
of this article suggests that the jobs of most operating level HR professionals have
experienced less change than those of top HR executives and that traditional per-
sonnel administration activities still make up the bulk of their duties. Thus, the
third section will review and critique the research on four important areas of HR
practiced at the operating level: selection, training and development, compensa-
tion, and performance appraisal. In all three sections, future research needs as
well as recent progress will be discussed.
Strategy-based Contingency Approaches to HRM
A consensus seems to be emerging that most HRM activities can and should
be matched to the organization's strategy. Prescriptive articles to this effect
abound; empirical studies are substantially more rare. There is not yet a single
commonly accepted set of strategies upon which recommendations for "match-
ing" can be based. Some scholars have adopted Miles and Snow's (1978, 1984)
typology of prospector, analyzer, and defender; others prefer Porter's (1985) strat-
egies of differentiation and cost efficiency; still others have made HRM policy
suggestions depending upon product life cycle models or have developed their
own typology. At this point, the diversity of typologies seems functional. We are
at the brainstorming stage of model building, and a variety of interesting ideas
have been proposed for each framework. With time and testing, a comprehensive
typology of strategies and associated HR practices should evolve. In the mean-
time, HR practitioners in search of guidance can surely find at least one cell in
one of the strategy typologies that seems to describe and prescribe for their or-
ganization's situation.
Although the frameworks differ somewhat, there is definitely some agreement
between authors on strategic HRM. Individual articles contain much finer dis-
tinctions, but it is possible for the purpose of illustration to group much of the
advice for HR managers around two gross categories of strategy: (a) growth-pro-
spector-high-tech-entrepreneurial strategies, and (b) mature-defender-cost effi-
ciency strategies. Business units in the former category require creative, inno-
vative, and risk-taking behavior; business units in the latter category need
repetitive, predictable, and carefully specified behavior from most of their em-
ployees (Schuler, 1986). HRM systems should be systematically different under
the two strategies so as to select appropriate types of employees and then induce
them to behave as needed. For example, growth-prospector-high-tech-entrepre-
neurial units typically recruit at all levels from the external labor market to obtain
the high level and changing mix of skills they need. They will ideally appraise
employees on the basis of results rather than process, will avoid excessive focus
on short term results, and will not punish innovative efforts that happen to fail. A
large part of compensation will be "at risk" in the form of performance incen-
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
CHALLENGES IN HRM 159
tives, bonuses, and profit sharing, whereas base salaries will be modest. Mature-
defender-cost competitors, on the other hand, will tend to recruit primarily at the
entry level and promote from within, appraise on the basis of process (doing
things the right way) and quantifiable short term results, and base compensation
on hierarchical wage structures derived by job evaluation. (These generalizations
are based on Balkin & Logan, 1988; Hufnagel, 1987; Olian & Rynes, 1984;
Schuler, 1986; Schuler & Jackson, 1987; and Sonnenfeld & Peiperl, 1988.)
The task for researchers in the next several years will be to determine whether
or not firms actually use the HR practices that ostensibly are best suited to help-
ing them implement their strategy. Only a few studies have addressed these ques-
tions. Fisher and Shaw (1987) found very few of the predicted differences in HR
practices between firms pursuing prospector or analyzer versus defender strate-
gies. Schuler and Jackson (1989) found modest differences in some HR priorities
between firms in the growth versus maturity stages and pursuing differentiation
versus cost efficiency strategies. However, both studies suffered from measure-
ment problems and neither assessed performance.
According to the contingency model, high performing business units should be
found to use more strategy-consistent HR practices than low performing units
pursuing the same strategies in the same industry. A small sample study by Cook
and Ferris (1986) made a good effort to test this prediction in three industries ex-
periencing decline. Representatives of three successful and three unsuccessful
firms were interviewed for each industry. The successful firms generally were
more proactive in strategic HRM, engaged in better and longer term HR plan-
ning, and had better integration across HRM activities. Using a criterion of per-
ceived pay system effectiveness, Balkin and Gomez-Mejia (1987) found support
for their hypotheses that incentive based reward systems were most effective in
growth stage companies and in high-tech companies.
A great deal more research is needed on strategy-contingent approaches to
HRM. Measures of business unit performance must be collected in addition to
information on strategy and HR practices. One of the greatest needs at this point
is better conceptualization and measurement of HR policies and practices. Nearly
an infinite number of aspects of HR practice could be assessed; the problem is
determining how and which to measure. The few empirical studies to date have
used homemade questionnaires or interviews for data collection. The relevance,
objectivity, comprehensiveness, and reliability of these procedures are unknown,
but they may provide a starting point for the development of standardized scales
for assessing and comparing HRM practices across organizations. In the area of
compensation, Milkovich (1988) has started in this direction by suggesting six
compensation policy issues that may have particular strategic relevance.
The idea of strategic human resource management has become clearer and bet-
ter developed since the 1986 yearly review, and it does seem to have much to offer
in the way of opportunities for research and thought-provoking ideas for practi-
tioners. However, a strategic HRM orientation may present problems as well as
solve them. For instance, Baird and Meshoulam (1988) have suggested that the
HRM function in organizations grows through predictable stages, during which
the credibility and skills of incumbents and the sophistication of HR systems in-
crease by building upon the groundwork laid down in earlier stages. HRM de-
partments that skip a stage often fail while trying to implement new programs be-
cause the groundwork is lacking. Thus, HR executives who suddenly decide to
adopt new strategy-consistent HRM systems should ask themselves whether they
have the expertise and infrastructure to do so. For instance, attempting to imple-
ment a complex performance-based reward system for R & D employees would
probably fail if a well developed and accepted performance appraisal system was
not already in place.
Other concerns revolve around the idea of whether too much ' 'fit'' will inhibit
the organization's ability to change strategies and elicit different employee be-
haviors when the environment changes (Evans, 1986), or how employees and
unions will react to changing HRM practices dictated by progress through the life
cycle of a product (Schuler & Jackson, 1989). Schuler and Jackson also point out
the possibilities of perceived inequity if different units of the same organization
operate under markedly different HR policies in response to their differing strat-
egies or life cycle stages. Finally, adopting a set of internally and strategically
consistent HR policies may ignore the realities of the external labor market. Other
competitors for labor may be pursuing different strategies, and may thus offer a
different and perhaps more attractive mix of compensation, training, and pro-
motion opportunities. Thus, strategically sensible policies may need to be tem-
pered by the reality of what it takes to attract and keep good employees in a par-
ticular labor market.
Further Challenges to HR Executives
In addition to becoming more strategically oriented, top HR executives are
dealing with a number of other trends and challenges brought about by environ-
mental pressures and corporate business decisions. These trends include inter-
nationalization/globalization, the high rate of mergers and acquisitions, and pres-
sures to downsize or restructure the employment relationship in order to reduce
costs. In this section, some of the HR implications and research needs associated
with these business trends are explored.
International HRM
In 1986, a practicing intemational HR manager lamented that "What happens
between expatriation and repatriation remains a mystery" (Morgan, p. 45). He
said that intemational HR managers were working in an information void and he
called for support from academics through research and courses on intemational
HRM. In fact, academic interest in intemational HRM has been growing rapidly
in the last few years. The joumal Human Resource Management has co-spon-
sored two invitational symposia on the subject (in Fontainbleau in 1985 and To-
kyo in 1987; see the Spring 1986 and 1988 issues), while an open conference was
held in Singapore in 1987 with another planned for December 1989 in Hong
Kong.' These conferences have produced some good conceptual work, but solid
empirical research is still quite rare.
'For more information on the Hong Kong Conference on Intemational Personnel/Human Resources Manage-
ment in December 1989, contact Dr. James B. Shaw, Management Department, University of Baltimore, 1420
North Charles Street, Baltimore, MD 21201 (301-625-3145).

Much of the writing on intemational HRM seems to deal with two classes of
problems: exporting people (expatriate selection, training, and career manage-
ment), and exporting the HRM function itself. With regard to exporting people,
an optimistic view of sending U.S. nationals abroad to work is presented by Jeli-
nek and Adler (1988). They found a very low self-reported failure rate among fe-
male American expatriates working in Asia. In fact, many women reported that
their sex was an advantage, in that foreign clients remembered them better, were
less threatened by them, and attributed greater competence to them in comparison
to male expatriates. In a separate survey, Jelinek and Adler found that U.S. per-
sonnel managers mistakenly believed that female professionals did not want to
work abroad and would not be successful abroad, particularly in countries were
local women experience employment discrimination. In light of this evidence,
U.S. firms would be well advised to evaluate their intemational staffing proce-
dures for disparate treatment and adverse impact.
In contrast to Jelinek and Adler's findings, most research on expatriate em-
ployees suggests that the failure rate is quite high, and a recent book by Tung
(1988) reports that the failure rate of U.S. expatriates is substantially higher than
thatof European or Japanese expatriates. Mendenhall, Dunbar, and Oddou (1987)
give a possible reason for this dismal record: most organizations still select ex-
patriates on the basis of technical competence alone, ignoring other predictors of
success such as language skills, fiexibility, and adaptability of the family.
Pucik and Katz (1986) suggest a contingency approach to expatriate selection
criteria, based on the type of information and control required by the job. When
jobs are largely technical, information is objective, and control is bureaucratic,
they suggest that organizations can select technically competent outsiders for rel-
atively short tours to foreign subsidiaries. However, for longer term assignments
in posts where social information and normative control are more important, long
time insiders steeped in the organization's culture are recommended as more ef-
fective both working in the subsidiary and communicating what they leam back
to headquarters. Doz and Prahalad (1986) have also discussed differences among
expatriate management positions, noting that some are essentially domestic po-
sitions, concemed with operations in a single (foreign) country, whereas others
truly are global in scope. They suggest that managers be purposefully rotated
through both kinds of positions to leam how to be sensitive to local conditions as
well as to maintain a corporation-wide or global perspective.
These contingency views seem to be a step in the right direction, away from
the simplistic orientation of the 1970s that "working abroad is working abroad."
More systematic research on the dimensions of intemational jobs and the skills
required for each seems needed as a first step toward designing effective expa-
triate selection systems and furthering the systematic development of global ex-
ecutives via training and job experience.
A second area of research concems the extent to which the HRM practices of
a firm's home country can or should be transferred to its foreign locations. Lau-
rent (1986) points out that HR practices and philosophies are deeply grounded in
the surrounding national culture. Parent country managers often do not perceive
this, and believe that practices which are effective in their own culture will be
universally applicable. Further, parent country HR managers may desire to apply

consistent HR practices across nations in the interest of fairness or to promote a
single organizational culture. However, the same practices (e.g. a participative
appraisal interview), might convey an entirely different and perhaps unintended
meaning in another culture. International HRM calls for a delicate balancing act
between parent and host country preferences and between the desire for global
consistency and the need for differentiation across cultures (Laurent, 1986, p.
97).
Research on these issues is just beginning. For instance. Von Glinow and Tea-
garden (1988) offer some interesting ideas on the problems of transferring U.S.
HRM practices to joint ventures in China in light of differing cultural assump-
tions and host country managers' fears of rapid change. They conclude that the
transfer of "soft technology" such as management and HR systems is extremely
difficult, but is necessary to support the successful transfer of hard technology.
Ishida (1986) has collected questionnaire and interview data on the extent to
which traditional Japanese HRM practices and values are implemented in over-
seas subsidiaries run by Japanese managers. He concludes that some practices,
like employment security, continuous training, promotion from within, and a
community orientation, transfer relatively well, whereas others, like groupism,
flexible job behavior, and low turnover, do not. Further, Japanese-style HRM
seems better accepted by blue collar workers than by middle managers at overseas
installations.
Lorange (1986) discusses four types of cooperative ventures, and notes that
each requires a different type and amount of HRM transfer from the parent com-
panies. For instance, when a process is licensed to a foreign organization, the
role of HRM may be limited to identifying and preparing a few technically com-
petent expatriates. When the venture is a jointly owned but free-standing, on-
going organization, it will require its own full service HRM unit, which will have
to choose practices satisfactory to both parent firms as well as the host country.
Further research on the trans-national generalizability of HRM assumptions
and practices is badly needed. Concurrently, it will be helpful to explore the ex-
tent to which global consistency in practices is necessary. Tolerating diversity
across sites, at least in some areas of practice, may be more effective.
Mergers and Acquisitions
The number of mergers and acquisitions has risen substantially in the last few
years, as has awareness ofthe HR executive's role in facilitating post merger suc-
cess. The fact that a great many mergers and acquisitions fail to live up to expec-
tations is often attributed to improper management of the human component
(Bastien, 1987). A number of articles have appeared in practitioner journals sug-
gesting how the existing research on stress and stress management can be applied
to help employees cope with an impending or recently consummated merger
(Hunsaker & Coombs, 1988; Ivancevich, Schweiger, & Power, 1987; Marks &
Mirvis, 1985), or on how organizational development techniques can be used to
help clarify and then integrate the cultures of the two firms (Marks & Cutcliffe,
1988). Another set of highly applied articles has encouraged practitioners to be-
come more proactive in assessing likely problems prior to an acquisition. They
suggest that HR professionals can provide critical expertise in assessing the pen-
sion and benefit liabilities to be incurred, the extent of unique skills versus re-
dundancy in the employee population of an acquisition target, or potential prob-
lems with existing labor agreements (Baytos, 1986; Manzini & Gridley, 1986).
Immediate attention to executive compensation in the acquired firm also may be
necessary to facilitate the retention of the management expertise that made the
target attractive in the first place (Ferracone, 1986). Another segment of the lit-
erature (to be discussed in the next section of this paper) addresses the impact of
the reductions in force that often accompany mergers and acquisitions.
Scholarly research on human resource issues in mergers and acquisitions is
still relatively rare and tends to use the case study approach. As a starting point,
this type of research can be interesting and useful. For instance, Bastien (1987)
presents an interview study of the communication patterns and perceptions of key
actors over time in three acquisition situations. However, larger sample hypoth-
esis-testing studies are also needed. Independent variables might include the ex-
tent of job loss, the similarity/dissimilarity of strategies or cultures, the degree of
development of the HRM functions (using the typology of Baird & Meshoulem,
1988), and whether or not the organizations use the same or different career sys-
tems (using the typology of Sonnenfeld & Peiperl, 1988). Dependent variables
could run the gamut from profits to individual performance, attitudes, and turn-
over. Moderate variables might include the extent of HR involvement and influ-
ence prior to the ownership change and the degree of autonomy granted to the ac-
quired firm. For instance, one might hypothesize that mergers between
organizations sharing the same strategy, level of HR development, and career sys-
tem would be most successful, but that similarity on these dimensions would be
relatively less important to success when the acquired firm is allowed a great deal
of autonomy or when HR issues have received sufficient attention from the very
beginning of the transaction. Research of this sort may help to identify when dif-
ferences in HR approaches are likely to be problematic in a merger or when HR
has a particularly crucial role to play in facilitating the success of a change in
ownership.
Downsizing and the Rise of Alternative Employment Relationships
As a result of foreign competition or acquisition, many U.S. organizations
have been forced to cut costs and reduce size: that is, to become "lean and
mean" in order to survive. One consequence of this trend is substantial reduc-
tions in force among both blue collar and managerial/professional employees.
Several articles have explored strategies for reducing the size of the work force.
McCune, Beatty, and Montagno (1988) found that layoffs were by far the most
common downsizing strategy used, mainly because HR managers in their sample
typically had less than 2 months in which to plan and carry out the reduction in
employment levels. They suggest that HR managers become more expert and
proactive in monitoring product life cycles, the business environment, and orga-
nizational strategy in order to anticipate needed staff changes farther in advance.
Given some advance notice, HR managers can make use of the comprehensive
typology of work force reduction strategies and suggestions on when to use each
provided by Greenhalgh, Lawrence, and Sutton (1988).
Joel Brockner and his colleagues have pioneered research on the flip side of
layoffs—the reactions of retained employees to a reduction in force (Brockner,
1988; Brockner, Grover, & Blonder, 1988; Brockner, Grover, Reed, DeWitt, &
O'Malley, 1987). In a series of lab and field studies, they have shown that "sur-
vivor guilt" can lead to increased performance among layoff survivors under
some conditions, that employees with a strong work ethic may increase their job
involvement after mild layoffs, and that preexisting stress levels affect reactions
to layoffs. As expected, procedural justice and generous treatment of separated
employees by the firm seem to have positive effects on survivors. More detail and
an agenda for further research on survivor effects are given in Brockner (1988).
In the wake ofthe downsizing, employers are devising new ways to meet their
need for labor. Often this includes a smaller core of permanent employees plus a
fiuctuating number and type of less permanent quasi-employment relationships.
Pfeffer and Baron (1988) present a fascinating look at obtaining labor via tem-
porary agencies, free-lance professionals, part-time employees, employee leas-
ing, subcontracting of work, and at-home workers. They contend that employer-
employee bonds are weakening along the dimensions of physical proximity, ad-
ministrative control, and duration of employment. Their views are borne out by
the increasing number of articles on these alternative staffing arrangements ap-
pearing in the HRM practitioner journals (c.f. Halcrow, 1988; Munchus, 1988;
Simonetti, Nykodynm, & Sell, 1988).
Pfeffer and Baron (1988, p. 257) contend that "understanding the growth of
externalized forms of labor contracting and why employment relations vary over
time, industry, and geographic context should be one ofthe primary tasks of
scholars interested in organizations.'' Their chapter goes on to suggest the many
ways in which changing employment relationships may affect the job attitudes
and careers of such partially included workers, the skills needed by managers of
temporary or free-lance employees, and the relative roles of internal and extemal
equity in determining compensation for such a work force. If these trends con-
tinue, a clear need for more research on the impact of alternative employment re-
lationships exists.
Operational HRM Issues
As described above, the jobs of corporate HR executives seem to be expanding
rapidly in terms of content and influence in the organization. However, most HR
practitioners are not in the executive ranks. Operating level HR managers make
up the bulk of the profession and tend to be involved more in implementing poli-
cies than in formulating them. A recent study by Tsui and Milkovich (1987) sug-
gests that the job of operating-level HR manager has yet to experience the devel-
opment seen at higher levels. They surveyed four constituencies within
organizations that hold expectations about the activities of operating-level HRM
departments. Respondents rated the importance of 73 HRM activities, which
were grouped for analysis into eight dimensions. Although there were significant
disagreements between constituencies on the importance of some dimensions,
the overall mean importance of activities was as follows:
1. administrative service (orient new hires, communicate information about
benefits, etc.),
2. compensation/employee relations (including implement fair pay and ap-

praisal systems),
3. policy adherence (assure equitable administration of discipline and other
policies),
4. legal compliance,
5. employee support (administer benefits, EAPs),
6. organization and employee development,
7. staffing/HR planning,
8. labor relations.
This list sounds very much like what Mahoney and Deckop labeled the dated
"personnel administration view" in their 1986 review. Nevertheless, these nuts
and bolts activities will continue to be an important and necessary part of the
practice of HRM. Perhaps the next yearly review will be able to report that a stra-
tegic orientation has filtered down to the operating level to integrate these still
somewhat independent sets of activities. However, even a strategic orientation
seems unlikely to alter the basic mechanics of these activities. Rather, strategy
may dictate the amount of the activity and some of the criteria against which the
activity is evaluated. For example, in the selection area, strategy may dictate
more or less focus on internal versus extemal recruiting and may affect the be-
havioral criteria against which selection devices are validated. But effectively
distinguishing good from poor candidates will still be the goal. Similarly, in the
training area, strategy may affect the make-or-buy decision for skills and thus the
amount of training provided by the organization, and may affect the specific con-
tent to be taught. However, needs assessment, appropriate training design, trans-
fer of training to the job, and training evaluation will remain crucial components
of an effective training process. In compensation, the basic goals of motivating
organizational membership and high performance, however the latter is defined,
will not change. In addition, issues of perceived fairness and pay equity will not
go away, regardless of strategy. Finally, in the area of performance appraisal,
strategy may dictate the performance dimensions assessed and the time frame of
the assessment (cf. Kerr, 1988), but fair and job-related assessment with effec-
tive feedback mechanisms will still be necessary. In the next sections of the pa-
per, I will focus on research progress and needs in these four basic HRM activi-
ties.
Employee Selection
Employee selection has always been viewed as an extremely important area by
industrial psychology researchers. The largest number of articles appearing in
HRM research journals during the 3-year span of this review concemed some as-
pect of selection (from specific selection techniques to validation and validity
generalization to utility issues). However, in the Tsui and Milkovich (1987) sur-
vey, selection was rated very low in importance compared to other HR functions.
This is quite unfortunate, and probably flows from (a) a lack of understanding of
the large and quantifiable savings and increases in productivity that can be real-
ized from a good selection system (c.f. Schmidt, Hunter, Outerbridge, & Tratt-
ner, 1986), and (b) the fact that selection procedures in many organizations are
far from ideal given the current state of knowledge in the area.
There has been a good deal of progress in selection research in the past few
years. One case in point is interviewing. New techniques for structured panel in-
terviews have been found to yield quite good predictive validities. Both situa-
tional interviews ("What would you do if ?" questions with keys based on
managerial consensus) and behavior description interviews ("Tell us about the
toughest sale you ever made.") are showing great promise (Arvey, Miller, Gould,
& Burch, 1987; Campion, Pursell, & Brown, 1988; Janz, Hellervik, & Gilmore,
1986; Weekley & Gier, 1987). In addition, the validation designs of most past in-
terview studies have recently been criticized for inappropriately collapsing data
across interviewers (Dreher, Ash, & Hancock, 1988), and more innovative de-
signs have shown that some interviewers are highly valid while others make con-
sistently poor decisions (Dougherty, Ebert, & Callender, 1986). These findings
have quite direct implications for the selection of interviewers and the design of
interview procedures in today's organizations.
The predictive validity of assessment centers has also been reaffirmed by a
meta-analysis (Gaugler, Rosenthal, Thomton, & Bentson, 1987), but doubt still
remains about the construct validity of assessor ratings. Although assessors
somehow capture valid variance in their ratings, they do not seem able to accu-
rately judge whether assessees possess the specific traits or managerial skills that
the center is designed to tap (Bycio, Alvares, & Hahn, 1987; Klimoski & Brick-
ner, 1987).
There seems to be a resurgence of interest in personality as a predictor or mod-
erator of behavior in organizations. Adler and Weiss (1988) make a strong case
for the importance of personality in predicting a wide range of behaviors, espe-
cially in less structured work settings that permit the expression of individual dif-
ferences. One relatively unstructured job might be CEO, and there is growing in-
terest in selecting top managers whose personality and skills fit the strategic role
assigned to their unit (cf. Gupta, 1986). One method used to evaluate fit is in-
dividual assessment by a clinical or industrial psychologist. Rigorous validation
studies of individual assessment are likely to remain rare, but a survey by Ryan
and Sackett (1987) provides a start towards finding out how, when, why, and by
whom individual assessment is practiced.
Day and Silverman (1989) note that many jobs contain both a technical com-
petence component and an interpersonal component. In a predictive validation
study of accountants, they found that cognitive ability measures predicted ratings
of technical competence, and personality dimensions chosen on the basis of a
thorough job analysis were significant predictors of the more interactive aspects
of job performance. For lower level jobs, a few studies have found that personality
test scores interact with ability or situational factors to predict performance (Hol-
lenbeck & Whitener, 1988; Knight & Nadel, 1986). Additional evidence suggests
that personality characteristics such as need for achievement may become signif-
icant predictors of performance only after several months of job experience,
whereas ability measures are the best predictors during the early job learning
stage (Helmreich, Sawin, & Carsrud, 1986). These findings may partially vin-
dicate HR practitioners' long standing conviction that somehow personality mat-
ters, despite its historically poor showing in validation research.
An improved understanding of the relationship of experience to job perform-

ance also seems likely to lead to better selection systems in the near future. Al-
though experience is often used as a screening device, it is seldom empirically
validated. However, a recent meta-analysis documented that years of experience
is a significant predictor of performance and is particularly predictive among
groups with relatively low mean levels of experience and on jobs with lower cog-
nitive demands (McDaniel, Schmidt, & Hunter, 1988a). Progress has also been
made in understanding how applicant experience can best be assessed (Mc-
Daniel, Schmidt, & Hunter, 1988b).
In the area of ability testing, research on validity generalization continues to
suggest that general cognitive ability is a robust predictor of the acquisition of job
knowledge and of subsequent job performance (Hunter, 1986). Carrying this ar-
gument to its controversial extreme suggests that the measurement of job-specific
abilities and the construction of different selection systems for jobs with some-
what different content may not be necessary, a position clearly at odds with the
present Uniform Guidelines on Employee Selection Procedures. Numerous arti-
cles criticizing the statistical methods used to establish validity generalizability
have appeared in the last few years, and the status of this technique is not yet re-
solved. Nevertheless, U.S.' Employment Service offices in several states are now
successfully using a validity generalization-based system in which five weighted
GATB composite scores are used for referral to openings in five broad job classes
(Madigan, Scott, Deadrick, & Stoddard, 1986).
The selection practices of many organizations have been affected by the re-
cently enacted federal ban on the use of polygraph tests for employment. Em-
ployment managers are tuming to other methods in an attempt to screen out job
candidates likely to steal, and in consequence, paper and pencil honesty tests and
even graphology seem to be increasing in popularity (Gorman, 1989). A long
string of studies, most recently by Ben-Shakhar, Bar-Hillel, Bilu, Ben-Abba, and
Flug (1986), show zero validity for graphology. On the other hand, a review by
Sackett and Harris in 1984 suggests that carefully developed honesty tests are re-
liable and show modest but significant validities against a variety of theft criteria.
However, the problem that was largely responsible for the banning of the poly-
graph, the high rate of false positives, also seems to plague paper and pencil hon-
esty tests. Of test takers, 40-50% "fail"; usually a much smaller percentage ac-
tually steal from their employer (Bales, 1988).
Drug testing has also become an issue of great concem. The Supreme Court
has recently upheld drug testing programs for drug enforcement officers, and for
train crews after accidents. It is unclear what position the Court will eventually
take on the legality of mandatory drug testing for applicants and/or present em-
ployees in the private sector, but many companies have recently adopted the prac-
tice. Although prescriptive articles abound in practitioner joumals, dmg testing
has attracted very little research attention. A survey of HRM executives by
Gomez-Mejia and Balkin (1987) indicates that dmg testing programs perceived
to be effective are accompanied by supervisor training, drug awareness pro-
grams, and efforts to rehabilitate employees found to be users. McDaniel (1988)
has pioneered the predictive validation of dmg use measures. Relationships be-
tween self-reports of drug use prior to enlistment and subsequent discharge for
unsuitability were investigated in a large military sample. Correlations were dis-
appointingly low (< .10) but were significant. Further research on the predictive
validity of drug tests and self-reports of drug use against performance and acci-
dent criteria are badly needed to justify the use of these procedures in selection.
For more thorough reviews of research on selection and placement, the reader
is referred to Guion and Gibson (1988), Murphy (1988); and Robertson and lies
(1988). Two books have also recently appeared on the subject. Human Resources
Selection by Gatewood and Feild (1987) and the second edition of Staffing Or-
ganizations by Schneider and Schmitt (1986).
Training and Development
At the operational level, training and development activities were ranked sixth
in overall importance of eight HRM functions in Tsui and Milkovich's survey.
Despite this relatively low ranking, U.S. organizations spent an estimated 32 bil-
lion dollars on training costs (exclusive of trainee salaries) in 1987 (Geber, 1987).
Even small improvements in training effectiveness could have considerable utility
given this high expenditure. There does seem to be a great deal of room for im-
provement, as indicated in a recent survey of management training practices by
Saari, Johnson, McLaughlin, and Zimmerle (1988). Common weaknesses were
lack of needs assessment (only 27% of the responding organizations systemati-
cally assessed training needs); lack of evaluation, especially of out-of-house
training; and near complete absence of programs to facilitate transfer and reten-
tion after training.
On the bright side, HRM researchers seem to be broadening their interests in
training well beyond the preoccupation of the 70s and early 80s with behavior
modeling training. For instance, a new thrust in training research focuses on
trainee motivation and how it affects training success. Articles looking at self-
efficacy perceptions (Gist, 1987), trainee attitudes, job involvement, and career
planning activities (Noe, 1986; Noe & Schmitt, 1986), and the use of self-as-
sessments of training needs (Ford & Noe, 1987; McEnery & McEnery, 1987) all
have implications for building trainee motivation and improving training success.
Several large sample field studies of the impact of pretraining variables (such as
tested ability, prior performance, and interjob similarity) and course characteris-
tics on training success are adding to our understanding of leaming in organiza-
tions (Dunbar & Novick, 1988; Gordon, Cofer, & McCullough, 1986; Mumford,
Weeks, Harding, & Fleishman, 1988). Transfer of training is finally getting the
attention it deserves, in articles by Baldwin and Ford (1988) and by Russell and
Wexley (1988). An area still in need of attention is training for employees prior
to overseas assignments. Only one true experiment in this area appeared in the
journals between 1986 and 1988: a comparative study by Earley (1987) of two
methods of intercultural training to prepare employees for a short tour in Korea.
An aspect of management development that is rapidly growing in importance
is succession planning. HR executives are increasingly involved in the design of
systems to assess, select, and develop internal candidates for promotion to the
highest executive ranks in the organization (Beatty, Schneier, & McEvoy, 1987).
One survey found that 68% of 1000 large firms had succession planning systems
for top executives, and 18% of the responding firms said that their systems had
been adopted within the last 2 years (Friedman, 1986). Friedman went on to ex-
plore the relationships between succession system characteristics and organiza-
tional reputation and financial performance. He found that successful firms had
succession systems that differed from those of less successful firms. The former
involved HR managers in the supportive role of developing background infor-
mation on candidates and development opportunities, while line managers were
held directly accountable for planning and carrying out the development of their
subordinates. Effective systems were not necessarily formal, but contained
checks and balances, and (contrary to the hypothesis) did allow for the consid-
eration of political issues such as loyalty and the personal values of succession
candidates.
Hall (1986) suggests that organizations need "strategic development plan-
ning," in which the dimensions of managerial potential assessed in the succes-
sion system are derived from the organization's present or future strategy, rather
than from a generic typology of management skills. Further, he contends that de-
velopment for top executives has been absent or misdirected, and that it should
focus more on the "personal leaming" aspects of the midlife stage than on tech-
nical or interpersonal skills. Personal leaming "involves the self-reflective proc-
ess of examining and possibly changing one's attitudes and identity" (p. 253). It
requires active and experiential learning methods—quite the opposite of the
methods and content offered in most upper management training programs.
For more details on management training, readers are referred to a meta-anal-
ysis of the effectiveness of various management training techniques by Burke and
Day (1986) and an article on current trends and issues by Keys and Wolfe (1988).
More general reviews of the literature on training and development are provided
by Goldstein and Gessner (1988) and by Latham (1988).
Compensation
Research on compensation has been proceeding on several fronts. As men-
tioned in the introduction, strategic compensation has emerged as an area of in-
terest. Gomez-Mejia and Welboume (1988) provide an excellent review of the lit-
erature and issues in strategic compensation. Their article appears in a special
issue of Human Resource Planning devoted to this topic.
The major concem of strategic compensation is to design reward and appraisal
systems that elicit desired and necessary behaviors from employees who are crit-
ical to the organization's success. For instance, Newman (1988) discusses the
importance of motivating boundary spanners to sense and transmit new infor-
mation about the environment in organizations in declining industries. In a
growth or start-up situation, a major concem is motivating innovative and entre-
preneurial behavior, openness to change, and willingness to take risks (Balkin,
1988; Balkin & Logan, 1988; Hufnagel, 1987). Most writers in this area recom-
mend relatively low base salaries to keep fixed labor costs low, supplemented by
profit sharing and individual and group pay-for-performance plans. More gener-
ally, there seems to be a trend toward greater individual accountability for per-
formance, with pay for performance systems being one visible manifestation of
this trend. However, dissatisfaction with traditional merit raise plans also seems
high, and new ways to link pay and performance are appearing in the literature.
Yearly bonuses based on performance are being touted as an alternative to the
problems inherent in merit raise systems. Critics contend that merit pay focuses
too much on the size of the raise rather than the amount of total compensation,
perpetuates differences in pay based on past rather than present performance, and
creates perceived inequities for good performers too near the top of their range to
receive the large raises they feel they deserve. By keeping base salaries relatively
low and even, allowing substantial performance based bonuses, and suggesting
that performance is related to total compensation rather than size of raise, bonus
systems can potentially increase the equity and motivational impact of pay (Whit-
ney, 1988a, 1988b).
However, even the most elegantly and strategically designed compensation
plan will fail if it is not implemented properly. A growing body of research in
compensation focuses on how pay allocation decisions are actually made by man-
agers. The results ofthe allocation studies suggest that compensation decisions
often are not made in the fair and consistent manner specified in pay policies. For
instance, in a policy-capturing study of 11 managers from the same organization,
Sherer, Schwab, & Heneman (1987) found sizable individual differences in the
weights given to five factors (performance level, performance consistency, ten-
ure, current pay, existence of a competing job offer), in determining salary raises.
Markham (1988) found group level but not individual performance effects on
raise levels in what was supposed to be an individual merit pay system. Heneman
and Cohen (1988) found that only 24% of the variance in subordinate raises was
attributable to subordinate characteristics and behavior, and a surprising 11% was
due to supervisor characteristics, in particular, the size ofthe supervisor's last
raise. Finally, Bartol and Martin (1988) have suggested that pay allocation deci-
sions may be affected by the amount of dependence of the superior upon subor-
dinates, and the extent to which that dependence is threatened. Raises may be
given almost as bribes to subordinates on whom the supervisor is dependent, in
order to induce them to continue to fulfill their roles. Further research on actual
pay allocation decisions may help span the gap between formal compensation
system design factors and subsequent employee perceptions of and satisfaction
with the system.
Research has also continued on the wage gap, gender-based occupational seg-
regation, and possible sex bias in job evaluation (c.f. Arvey, 1986; Pfeffer &
Davis-Blake, 1987). Despite the lack of federal action on comparable worth un-
der the Reagan administration, several states and a number of cities have passed
laws requiring equal pay for jobs of comparable worth among public employees.
Practitioners are quietly forging ahead in attempts to develop compensation sys-
tems to comply with these laws (Olney, 1987a, 1987b), while researchers point
out the remaining unsolved problems.
For instance, Madigan and Hoover (1986) found that the job evaluation method
chosen strongly affects the resulting pay structure. Because there is no ultimate
criterion of fairness or job worth, they suggest that choosing one job evaluation
system over another is essentially a value judgment. Mahoney (1987, p, 209) con-
curs: "The process of job evaluation can accommodate any criterion of job
worth, but is dependent upon some prior consensus of relative job or occupational
worth. Achieving consensus is primarily a political task." Even given a job eval-
uation system acceptable to all parties, there are at least five different and equally
defensible ways of converting job evaluation points into wage levels to achieve
pay equity (Arvey & Holt, 1988). Quite different compensation systems for the
same set of jobs could be developed and presented as "fair" under our existing
understanding of pay equity issues. Additional research that compares and con-
trasts the perceived fairness, statistically evaluated fairness, and costs of different
approaches to job evaluation and wage structure pricing are needed. This type of
research may eventually provide the basis for consensus on how to construct gen-
der-blind compensation systems that satisfy employers, unions, women's
groups, and the courts.
Performance Appraisal
Performance appraisal has continued to receive attention in practitioner jour-
nals, though a survey by Bemardin and Klatt (1985) suggests that the state of
practice lags far behind the state of knowledge in this area. Performance appraisal
has also been an extremely popular topic for research in the past few years. It was
the most common topic among papers submitted to the P/HRM Division of the
Academy of Management for the 1988 Annual Meeting (Bemardin, 1988), and
was the second most frequently occurring HRM topic in my reading of HRM re-
search journals since the beginning of 1986. Much of this research was done in
the laboratory, using students as subjects.
Laboratory Research on Performance Appraisal. The majority of the many
laboratory studies on performance appraisal have followed a similar procedure:
students view short videotapes (or read paper descriptions) of the performance of
a single stimulus person and then make ratings of performance. There are no
competing tasks to distract attention from the performance stimulus, and ratings
are made immediately or after a 1 or 2 day delay. Results are analyzed in terms of
the amount of halo and leniency error in rating, the accuracy of ratings with re-
spect to a "true score" of performance generated by expert-rater consensus, and
the degree of systematic bias in the recall of performance incidents.
The purposes of this research have been to explore (a) the biasing effect of fac-
tors such as intelligence, liking for the ratee, mood, stress, knowledge of ratee's
prior performance, familiarity with the ratee's job, and pattem and level of ratee
performance on the encoding, recall, and rating of performance, (b) the extent to
which various models of rater cognitive and schematic processes seem to de-
scribe the information acquisition, memory, and integration processes of raters,
and (c) the extent to which true covariation among rating dimensions affects per-
ceived covariation or halo (cf. Cardy & Dobbins, 1986; DeNisi & Williams,
1988; Krzystofiak, Cardy, & Newman 1988; Murphy & Balzer, 1986; Sinclair,
1988; Smither, Reilly, & Buda, 1988; Srinivas & Motowidlo, 1987).
Lab studies usually attempt to determine how accurately individuals can rate
under a variety of near-ideal circumstances. This is an interesting and appropriate
area of study for cognitive psychologists. However, there are some problems with
applying this research directly to performance appraisal in organizations. First,
as Funder (1987) eloquently points out, judgment' 'errors" are not the same thing
as "mistakes." Errors are defined as deviations from a true score or from a cor-
rect normative judgment model specified by the researcher in the artificial envi-
ronment of a laboratory. Mistakes, on the other hand, are "incorrect judgements
in the real world. .. .What is wrong in relation to a laboratory stimulus, taken lit-
erally, may be right in terms of a wider, more broadly defined social context, and
reflect processes that lead to accurate judgments under ordinary circumstances"
(Funder, 1987, p. 76). Rater errors such as halo and primacy effects represent in-
correct judgements in the lab when raters have been exposed to an artificial se-
quence of performance information such as a partially "good" lecture tape fol-
lowed by several predominantly "average" or " p o o r " tapes of the same
performer. However, in the real world there probably is much greater performance
consistency over time and across dimensions within ratees. Thus, judgment heu-
ristics that result in halo and primacy errors in the lab may not be mistakes in the
real world, but may in fact be functional in producing correct ratings most of the
time.
The second problem with focusing purely on maximizing accuracy and reduc-
ing error under highly artificial lab conditions is that it ignores the political and
motivational issues facing raters in organizations. Even if raters are capable of
rating accurately, there is no guarantee that they will choose to do so. In fact, two
surveys of actual raters suggest that rater behavior is highly calculative and that
accuracy is one of the least important factors considered. Bemardin and Villa-
nova (1986) found that superiors, administrators, and subordinates believed that
ratings were often inflated to avoid confrontations with subordinates, to please
certain employees, or because raters feel ill at ease in evaluating others. Longe-
necker, Gioia, and Sims (1987) interviewed 60 executives and found that political
considerations were nearly always involved in making performance appraisal rat-
ings. Executives consciously used the appraisal process to attain desired ends
such as to obtain a larger merit raise for a subordinate, encourage a subordinate
with personal problems, teach a rebellious subordinate a lesson, jolt a subordi-
nate into performing up to his or her potential, or the like. According to one in-
terviewee, "Accurately describing an employee's performance is really not as
important as generating ratings that keep things cooking" (p. 185).
Despite these legitimate criticisms, applied suggestions based on laboratory
research on performance appraisal are starting to appear. For instance, knowl-
edge of rater schemas and cognitive processes has implications for rater training,
diary keeping, and the design of rating systems to match the cognitive demands
of the task (DeNisi & Williams, 1988; Feldman, 1986). In addition, the cognitive
processes first explored in connection with performance appraisal, albeit in
highly artificial settings, are now being used to understand about other judgmen-
tal tasks in HRM, such as making interview decisions (Eder & Buckley, 1988),
assigning assessment center ratings (Silverman, Dalessio, Woods, & Johnson,
1986; Zedeck, 1986), and assessing training needs in subordinates (Russell &
Wexley, 1988). However, an important future task in performance appraisal re-
search must be to transfer successfully the laboratory research of the 80s to the
organization of the 90s. Some recent field studies are leading the way.
Field Research on Performance Appraisal. As an example, progress in under-
Standing the ways superiors actually conceive of performance has been made in
field studies. Borman (1987) and Hauenstein and Foti (1989) have worked on
identifying "folk theories" or consensual prototypes and schemata for judging
employee effectiveness in specific jobs. Theoretically, raters who share the same
periformance schemata should observe, recall, and evaluate performance simi-
larly, especially if the rating instrument contains the same dimensions and defi-
nitions that they intuitively use in assessing subordinates. The techniques pi-
oneered by these researchers allow for the identification of raters with
idiosyncratic schemata, and it is these individuals who might benefit most from
frame-of-reference training based on the dominant performance schemata.
Tziner and Kopelman (1988) report a field experiment that showed behavior
observation scales were superior to graphic rating scales for producing higher lev-
els of goal clarity, goal acceptance, and goal commitment among subordinates.
Working with actual ratings in a large public sector organization, Schoorman
(1988) found evidence of escalation of commitment biases (c.f. Staw, 1987) in
performance appraisal. Specifically, raters who had been involved in a decision
to hire or promote an employee later rated the employee higher if they had agreed
with the decision and lower if they had opposed it than superiors who had not par-
ticipated in making the initial decision. Although there may be some intemal va-
lidity problems with field research such as this study, the probability of generat-
ing fairly reliable knowledge that is relevant and useful seems to suggest that we
move in the direction of more field work in performance appraisal.
A promising research area that seems to be making a comeback of late is self-
assessment. Researchers are realizing that most employees hold rather strong
views about their own performance, even if these views are not highly correlated
with assessments by others (Harris & Schaubroeck, 1988). The genesis of self-
assessments as well as the implications of superior-subordinate disagreement
seem to offer many interesting theoretical and applied possibilities for research
(c.f. Ashford, 1989; DeGregorio & Fisher, 1988; Hauenstein & Foti, 1989;
Pearce & Porter, 1986; Shaw & Fisher, 1988). Campbell and Lee (1988) suggest
that self-assessment might play a greater role in planning for employee develop-
ment than in traditional perlFormance evaluation, but Farh, Werbel, and Bedeian
(1988) found that it was possible to integrate a large self-assessment component
into an appraisal system for professors.
Feedback. Improving the appraisal interview and feedback process is an im-
portant and applied area that has attracted a fair amount of research over the past
decade. For instance, we know that participative appraisal interviews are usually
preferred to nonparticipative feedback sessions. The last few years of research
have added to this body of knowledge, particularly in terms of appraisal interview
content. Baron (1988) found that destructive criticism was much less effective
than constructive criticism that was specific, considerate, and did not attribute
poor performance to intemal causes. Bannister (1986) also determined that neg-
ative feedback was seen as more accurate and helpful if accompanied by extemal
rather than intemal attributions. Even though negative feedback can be helpful,
two studies have confirmed earlier findings that superiors tend to delay and some-
times to distort their ratings when faced with the task of conveying negative feed-
back (Benedict & Levine, 1988; Larson, 1986).
Another content issue is whether or not to discuss salary raises in the appraisal
interview. Conventional wisdom, dating from a 1965 study by Meyer, Kay, and
French, suggests that this subject is emotionally charged and detracts from a pro-
ductive discussion of past and future performance. However, two recent studies
have found that the discussion of merit pay is either positively related or unrelated
to appraisal outcomes such as satisfaction with the appraisal, perceived partici-
pation, and work planning (Prince & Lawler, 1986; Dorfman, Stephan, & Love-
land, 1986). These field study results contain a possible confound, in that ap-
praiser skill may have caused both the favorable appraisal outcomes and the
thorough appraisal discussion (including compensation issues). On the other
hand, there is no remaining justification for suggesting that salary issues be ex-
cluded from the performance appraisal discussion.
Conclusions
The role of the HR executive seems to be changing and growing rapidly. Min-
imizing HR costs while motivating strategy-appropriate behavior is the goal, and
this goal must often be accomplished in a confusing multi-cultural environ-
ment—either across national cultures, or across organizational cultures follow-
ing mergers. At the present time, researchers are providing only limited guidance
for HR executives facing these new challenges. Conceptual papers have begun to
appear, and some empirical research on strategic HRM has been reported. How-
ever, a research-practice gap clearly exists, with research lagging behind the cur-
rent needs of practicing HR executives. The gap will not be easy to fill, as the
questions to be investigated are complex, definition and measurement issues are
difficult, and problems with obtaining samples are daunting. Few of the new
challenges can be addressed anywhere but in the field, and most require cross-
organization samples, with the organization being the unit of analysis rather than
the individual. Nevertheless, the potential for exciting and useful research is sub-
stantial.
Although HR activities at all levels should be consistent with each other and
also with the organization's strategic goals, traditional activities such as selec-
tion, training, compensation, and appraisal are still the bread and butter of op-
erating level HR managers. In these areas there is also a research-practice gap,
but for the most part it runs in the other direction. The state of practice in most
organizations lags far behind the state of knowledge. This is particularly true for
employee selection. Despite a flurry of research activity, utility models remain
too complex for application by most practitioners. Thus, the potential payoffs
from improved selection are neither estimated nor realized. Proven techniques
that can be applied immediately include the situational and behavior description
interviews and systematic methods for evaluating past job experience. Validity
generalization, if it stands up to statistical and legal challenges, offers practition-
ers the opportunity to use ability tests for screening without bearing the costs of
an in-house validation study.
In the area of training, the importance of developing trainee motivation, com-
mitment, and high efficacy expectations prior to training seems indisputable. The
research on transfer of training should also be incorporated into training program
design.
In compensation, the new strategic orientation suggests improved ways of de-
fining and rewarding appropriate behavior, and research on superiors' actual re-
ward allocations has shed light on why merit raise decisions are often perceived
as less than completely fair. For the practitioner, this research may suggest that
additional supervisory training is needed, or that a shift to more objective means
of determining rewards might be preferable.
With regard to performance appraisal, a great deal of research on rater cogni-
tive processes, rater training, and performance schemata has been accomplished.
This research is starting to result in solid suggestions for practice, such as con-
structing rating scales based on shared performance schemata and providing
frame of reference training for raters with discrepant schemata. This should in-
crease the ability to rate accurately. The motivation to rate accurately is another
issue altogether, but researchers are beginning to catch up to practitioners in their
understanding of this phenomenon. Finally, research on the performance ap-
praisal interview has banished the 20-year-old caution against discussing salary
actions in the developmental appraisal interview.
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Journal of Management

1989, Vol. 15, No. 2, 157-180

Current and Recurrent

This article reviews recent research progress and identifies future

Copyright 1989 by the Southern Management Association 0149-2063/89/$2.00.

Strategy-based Contingency Approaches to HRM

JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989

universally applicable. Further, parent country HR managers may desire to apply

2. compensation/employee relations (including implement fair pay and ap-

An improved understanding of the relationship of experience to job perform-

JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989

JOURNAL OF MANAGEMENT, VOL, 15, NO, 2, 1989

JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989

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