ABSTRACT
This chapter reviews what is known about the impact of buyouts on employees, focuses on the implications for human resource management (HRM). It considers whether buyouts are associated with an overall approach to HRM strategy that seeks to develop workforce skills and loyalty, or seeks to minimize employment costs. The chapter explores the perceived importance of HRM issues, resources devoted to managing employees, and the extent of adoption of high-performance work systems (HPWS) that indicate an investment orientation. An alternative way of assessing the impact of buyouts on overall HRM strategy is to consider the adoption of HPWS aimed at improving firm performance by increasing employee abilities, motivation, and opportunities to contribute. The chapter focuses on training provision, pay systems, and the management of employment change. Changes to work relations practices in buyouts may therefore be suggestive of a calculative, cost-minimization HRM approach in buyouts.
