This paper explores in two steps the relationship between the design of HRM policies and the use of advanced manufacturing technologies. First, the relationship between advanced manufacturing technologies and changes in the production environment is examined. Second, changes in the production environment are related to the design of HRM policies. For one, data from ten Dutch and eight British companies in the chemical and food and drink industries indicate that the use of advanced manufacturing technologies significantly alters the production environment in terms of product, production and process flexibility. The strength of the impact, however, differs between large batch and mass production on the one hand and continuous process production on the other, and is dependent on the type(s) of automation methods implemented. Subsequently, a refined classification of manufacturing types is developed to relate these changes to the design of HRM policies.
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