Chapter - 9 Ihrm Industrial Relation
Chapter - 9 Ihrm Industrial Relation
Chapter - 9 Ihrm Industrial Relation
INTERNATIONAL
INDUSTRIAL RELATIONS &
THE GLOBAL
INSTITUTIONAL CONTEXT
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
1 of 20
START
Click on an item to
Chapter 9
Managing HR in ‘offshoring countries’
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
2 of 20
Vocabulary
industrial relations, trade unions
regional economic zones
collective bargaining
enterprise unions
plant closure, redundancy, layoff programs
lobbying
sub-optimizing
investment strike
offshoring, turnover rates, BPO = business process outsourcing, EHCNs
guanxi, iron rice bowl
ITSs = international trade secretariats, SEM, NCP, EU
ETUC, ILO, UNCTAD, OECD, IFCTU, CIIME, EWC, FIET, AFL-CIO
social dimensions, social ‘dumping’
umbrella or chateau clause
‘golden handshake’
Chapter 9
strike-proneness
‘converging divergences’
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
3 of 20
Objectives
In this chapter, we …
1. Discuss key issues in international industrial relations &
the policies & practices of MNEs
2. Examine the potential constraints that trade unions may
have on MNEs
3. Outline key trade union concerns regarding MNEs
4. Discuss recent trends & issues in the global workforce
context
5. Discuss the formation of regional economic zones such as
the EU & the impact of opponents to globalization
6. Present issues of codes of conduct & NGOs
as MNEs
Chapter 9
7. Discuss HR implications of offshoring
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
4 of 20
Introduction
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
5 of 20
Factors underlying historical
differences in trade unions
Mode of technology & industrial organization
at critical stages of union development
Methods of government union regulation
Ideological divisions within
the trade union movement
Influence of religious organizations
on trade union development
Managerial strategies for labor
relations in large corporations
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
6 of 20
Key Issues in international
industrial relations
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
7 of 20
Key issues
1. Industrial relations policies & practices of MNEs
2. Degree of inter-subsidiary production integration
3. Nationality of ownership of the subsidiary
4. International HRM approach
5. MNE prior experience in industrial relations
6. Subsidiary characteristics
7. Characteristics of the home product market
8. Management attitudes towards unions
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
8 of 20
Trade unions & international
industrial relations
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
9 of 20
Trade unions limit MNE strategies
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
10 of 20
The response
of trade unions to MNEs
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
11 of 20
Trade union concerns about MNEs
MNEs …
have formidable financial resources
have alternative sources of supply
can move production facilities to other countries
have a remote locus of authority
have production facilities in many industries
have superior knowledge & expertise
in industrial relations
have the capacity to stage
an ‘investment strike’
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
12 of 20
Three trade union responses
1. International trade secretariats (ITSs)
want to achieve transformational bargaining by
1) research & information
2) Calling company conferences
3) Establishing company councils
4) Companywide union-management discussions
5) Coordinated bargaining
2. Lobbying for restrictive national legislation
3. Regulation of MNEs by international organizations:
ETUC, ILO, UNCTAD, OECD, EU
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
13 of 20
Region integration: the EU
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
14 of 20
EU regional integration
1. Disclosure of information
& European Works Councils
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
15 of 20
Codes of conduct –
monitoring HRM around the world
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
16 of 20
HRM related to global code of
conduct may include
Drawing up & reviewing codes of conduct
Conducting cost-benefit analysis to oversee
employee & relevant alliance partners’ compliance
Championing the need to train employees &
alliance partners in the code of conduct
Checking that performance & rewards
include compliance to codes of conduct
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
17 of 20
Managing HR
in ‘offshoring countries’
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
18 of 20
Offshoring countries HRM
Offshoring & HRM in India
» Turnover issues
Offshoring & HRM in China
» No systematic link between HRM & business strategy
» Despite labor surplus, recruiting & retention problems
» No systematic link between performance management,
reward & long-term motivation
» Lack of coherence & continuity in enterprise training
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
19 of 20
Summarizing emerging issues
Possible HRM roles:
Consult with unions/employee representatives
Manpower planning, considering the scope for
employee redeployment
Contribute to internal communication strategy
Identify training needs
Design new jobs generated by offshoring operations
Highlight potential risks, such as the implications of
employment regulation both in HC &
in foreign locations
Chapter 9
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
20 of 20