Managing employees in Thai family firms: the mutuality perspective

Abstract

Purpose This paper aims to adopt the mutuality perspective from the field of human resource management (HRM) to examine family firms, specifically human resource (HR) practices that are likely to be found in Thai family firms. Design/methodology/approach The cross-case analysis of three successful unreformed or authoritarian family firms in Thailand draws on semistructured interviews with top managers and/or HR managers as well as the employees of each family firm, field visits to each firm and a review of archival documents and Web-based resources. Findings This paper proposes that the recruitment of employees via alternative or substream recruitment channels (especially the recruitment of current employees’ relatives or family members), paternalistic employee relations practices and the management of aging employees, specifically with regard to the absence of retirement age, the facilitation of financial planning, reduced workload, the appointment of mentors/advisors and the encouragement of aging employees to transfer knowledge to younger generations tend to be found across Thai family firms, especially the unreformed or authoritarian type. These HR practices are implemented across family firms because they help to manage high levels of debt that have accumulated over many years so that employees attain financial literacy before retirement and to foster and maintain positive relationships between managers and employees across firms. These positive relationships thus foster the retention of capable and loyal, aging employees who have been developed within the firm and who have worked with the firm for a long time (so-called Look-Mor), leading to the maintenance of tacit knowledge and experience within firms and the alleviation of the problem of labor shortage. Theoretically, this paper proposes that a family-like corporate culture typically found in family firms serves as the antecedent to the adoption and implementation of those HR practices (so-called culture determinism). In particular, the fit between corporate culture and HR practices is likely to foster the strong commitment among employees to firms and the feelings of job security among these employees (so-called commitment match in the mutuality of the employment relationship). Research limitations/implications An important limitation of this study concerns its methodology. Because this study is based on the case studies of only three unreformed or authoritarian family firms located in Thailand, the findings in this paper only propose substream or alternative HR practices that are likely to be found across Thai family firms; therefore, generalization to all other types of family firms and all other family firms across countries is not possible. Examining whether the HR practices proposed in this paper are uniquely found across family firms should be the subject of future research. Another limitation of this study is that it does not include firms located in other industries, such as the health-care industry and the hotel and restaurant industry. Future research could explore the HR practices implemented by family firms in these industries. Moreover, quantitative studies using large samples of family firms across industries might be useful in deepening the understanding of the HR practices implemented in family firms from the mutuality perspective on HRM. Practical implications This paper has practical implications for top managers and/or HR managers across firms not only in Thailand but also in other countries. First, top managers and/or HR managers across family firms, especially those of the unreformed or authoritarian type, should implement the HR practices proposed in this paper that are aligned well with a family-like corporate culture found in family firms to foster the strong commitment among employees to firms and the feeling of job security among these employees. Second, other types of firms (e.g. publicly owned corporations and multinational corporations) that do not have a family-like corporate culture may have to adapt some of these HR practices to their corporate culture and workplace atmosphere within their firms. Third, to manage and retain high-quality aging employees within firms, top managers and HR managers across various types of firms should implement some of the HR practices for managing aging employees proposed in this paper so that the firms can retain invaluable aging employees over time. Social implications This paper provides social/policy implications for the government and/or relevant public agencies of Thailand and of several other emerging market economies. These governments should encourage the firms located in their countries to implement some of the HR practices proposed in this paper to maintain and support knowledgeable and skillful aging employees in their firms. Originality/value This paper contributes to the two main bodies of literature on HRM and family business in the following ways. First, most previous studies on HRM have focused on the mainstream HR practices used in large firms while neglecting the alternative or substream HR practices used in family firms. Additionally, relatively little research has specifically examined the mutuality perspective with regard to HRM. Thus, this paper extends the literature on HRM and family business settings regarding HR practices that are likely to be found across Thai family firms, corporate culture as an antecedent of the adoption and implementation of those HR practices, and the fit between corporate culture and HR practices with respect to mutuality in the employment relationship. Moreover, the literature on HRM has typically overlooked the underresearched country of Thailand; most studies in this area have primarily focused on developed countries or other emerging market economies, including China and India. The findings of this paper provide an in-depth analysis of HR practices that are likely to be found in family firms located in the emerging market economy of Thailand according to the mutuality perspective with regard to HRM.