Employee Relations: An International Journal

James Kelly

2001 Employee Relations: An International Journal

doi: 10.1108/EUM0000000006267

The 1990s literature portrays the corporate personnel/HR function as in decline due to the decentralisation and delayering of large organisations. As a result personnel's presence on boards of directors and participation in the formation of corporate business and HR strategies cannot survive. This paper challenges this view arguing that strategies do not originate at main board of director level but at the CEO executive group level in most cases. Research has shown the personnel/HR function's involvement at this level to be higher than on main boards. Other recent evidence has accorded personnel a higher strategic role in MNCs, especially regarding the staffing and development of an international cadre of managers. This evidence however supports the view that personnel's corporate presence declined from the mid 1980s to the mid 1990s before picking up, whereas the paper's argument favours a steady growth thesis from the early 1970s. Additionally the dominant perspective contains an overly top down view of strategy formation whereas this paper argues for a counter-balancing bottom up influence on strategy formation.

William N. Cooke

2001 Employee Relations: An International Journal

doi: 10.1108/EUM0000000006268

The USA is not only the largest foreign direct investor country in the world, it is also host to the largest inflow of foreign direct investment (FDI) in the world. Although recent analyses have shown that multinational companies have invested less in countries with higher levels of union membership and contract coverage, more centralized negotiation structures and more restrictive workplace regulations, no similar analysis has been made of the influence of these factors on FDI in the USA. Also lacking in the literature is any analysis of the extent to which foreign-owned affiliates have engaged in union avoidance in the USA as part of their investment and human resource management/labor relations strategies. This study first focuses on the estimated effects of the relatively low union penetration and decentralized negotiation structure of the USA on FDI in the USA. Second, the precipitous decline in union coverage of foreign subsidiaries in the USA over the last two decades is analyzed. The results of both inquiries strongly support the proposition that foreign multinationals have given substantial weight to union avoidance preferences as part of their FDI strategies.

Anne‐Wil Harzing

2001 Employee Relations: An International Journal

doi: 10.1108/01425450110409248

Aims to get a clearer picture of why multinational companies (MNCs) send out expatriates. Identifies three organisational functions of international transfers: position filling, management development and coordination and control. Based on an empirical study with results from 212 subsidiaries of MNCs from nine different home countries, located in 22 different host countries, shows that the importance that is attached to these functions differs between subsidiaries in MNCs from different home countries, between subsidiaries in different host regions and in addition varies with the level of cultural difference. Sees position filling as most important for subsidiaries of US and British MNCs and in the Latin American and Far Eastern regions. Sees management development as most important for subsidiaries of German, Swiss and Dutch MNCs and as tending to occur more in Anglo-Saxon countries than in the Far Eastern region. Transfers for coordination and control seem to be most important for subsidiaries of German and Japanese MNCs and in host countries that are culturally distant from headquarters. Argues that these differences might have important consequences for expatriate management.

John Gennard; Kirsty Newsome

2001 Employee Relations: An International Journal

doi: 10.1108/EUM0000000006269

Analyses the UNI-Europa Graphical Sector (UEGS) agreement on European co-ordination of collective bargaining initially made in 1999. Explains the purpose of the agreement, its objectives, its main components, the principles underpinning it and the mechanisms by which it is reviewed. Provides empirical data on the extent to which graphical trade unions (all affiliated to the UEGS throughout Europe, in their 2000 collective bargaining round with graphical employers, were able to make accommodations consistent with the spirit of the co-ordination of collective bargaining agreement. The research is based on official publications of UEGS, the Minutes of its Collective Bargaining Committee, the reports of its annual general meetings and attendance at its Annual Collective Bargaining Conference for Negotiators.

Richard Holden

2001 Employee Relations: An International Journal

doi: 10.1108/EUM0000000006270

Examines the problems and pitfalls of managing multi-cultural organisations from a corporate perspective. The author, a practising HR director, makes use of his work experience of three companies to analyse the difficulties arising from different values, perceptions and cultures in MNCs. Language and communications play a significant role which are illustrated in the areas of European Works Councils, mergers and takeovers and HRM processes, particularly regarding international recruitment. Solutions to these problems include training management awareness and understanding of the cultural context within which the firm operates, and managers keeping an open mind with regard to the different values and perceptions held by others.

John Donaldson

2001 Employee Relations: An International Journal

doi: 10.1108/EUM0000000006271

The contribution of multinational enterprises to wealth creation is evident, but there is much discussion on whether the consequent power is, or ought to be, used responsibly for social and economic ends. In employment relations, although international standards have long been established, current issues include the use of child labour, safety, differential pay, hiring policies and conditions, especially towards locals. This paper attempts to identify the ethical, as opposed to prudential or legal, dimensions of the issues, especially as illustrated in case studies, and to estimate the prospects for agreed improvement. The paper suggests that technical management skills, ethical awareness and the propagation of international standards together are not enough to reduce the contentiousness of the various practices. Inclusion of consumers (the ultimate paymasters) tends to be rudimentary. Discussions of other relevant persons in the "stakeholder" debate have yielded little practical application. Economic and business pluralism could be helpful.