Management Buyouts and Human Resource Management

24 Pages Posted: 20 Jun 2004

See all articles by Mike Wright

Mike Wright

Nottingham University Business School

Nicholas Bacon

Nottingham University Business School

Natalia Demina

Nottingham University Business School

Abstract

This paper reports the findings from a survey of the effects of management buyouts on human resource management (HRM). Buyouts resulted in increased employment, the adoption of new reward systems, and expanded employee involvement. These developments support the resource-based view that buyouts develop internal assets over agency theory predictions that managers will adopt a cost reduction approach. The type of buyout influences the subsequent development of HRM. Buyouts report more commitment-orientated employment policies where employees own shares, and where the buyout pursues a 'buy and build' corporate strategy and adopts a business strategy of enhancing customer service and developing markets.

Suggested Citation

Wright, Mike and Bacon, Nicholas and Demina, Natalia, Management Buyouts and Human Resource Management. Available at SSRN: https://ssrn.com/abstract=537506

Mike Wright

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom
+44 115 951 5257 (Phone)
+44 115 951 5204 (Fax)

Nicholas Bacon

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

Natalia Demina

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

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