Configurations of HRM decentralisation and devolution in multi-unit organisations

Two key ways in which the HR function responds to an increasingly turbulent environment is by means of the decentralisation of HRM decisions to local units as well as the devolution of HRM decision making responsibility to line managers. While the literature assumes that these two processes materialise hand in hand, we lack research that examines when and where both processes are more likely to be found. We perform a cluster analysis in a sample of 3163 organisations in 35 countries to identify whether different combinations of decentralisation-devolution are detected, and what contextual factors are associated with each cluster. Despite the assumption that decentralisation and devolution are positively associated, we find four distinct and similarly populated clusters. Following structural contingency theory, we argue that different combinations may be more likely to be found depending on different organisational and HR function characteristics, hence reinforcing the idea that convergence between HRM decentralisation and devolution is unlikely for many organisations. Our work contributes to the HRM configuration literature by clearly demarcating the differences between decentralisation and devolution, showing how they may be combined, and linking those combinations to contextual factors.