Who’s in the driving seat? Managing human resources in a franchise firm

This article reports on the findings of a study within the automotive franchise retail sector which shows how employees’ experiences of HRM can, under some circumstances, be influenced both directly and indirectly by third-party organisations. A model that describes these patterns of influence is put forward. These findings point to the way in which inter-firm relationships influence the employment relationship from the perspective of both the employer and the employee, and raise questions about the limits of control exercised by HR department policies and activities. The article also contributes to the relatively limited literature on the operation of franchising systems, in particular concerning the role played by HR policies and practices as a mechanism for inter-organisational control.