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1 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090.

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Presentation on theme: "1 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090."— Presentation transcript:

1 1 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT Chapter 9

2 2 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning TABLE OF CONTENTS Chapter 9  Vocabulary  Objectives  Introduction  Key issues in international industrial relations  Trade unions & international industrial relations  The response of trade unions to MNEs  Region integration: the EU  Codes of conduct – monitoring HRM around the world  Managing HR in ‘offshoring countries’ INTERNATIONAL INDUSTRIAL RELATIONS & THE GLOBAL INSTITUTIONAL CONTEXT

3 3 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning  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’  strike-proneness  ‘converging divergences’ Vocabulary

4 4 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning 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 7.Discuss HR implications of offshoring Objectives

5 5 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning Introduction

6 6 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning 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

7 7 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning Key Issues in international industrial relations

8 8 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning 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

9 9 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning Trade unions & international industrial relations

10 10 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning Trade unions limit MNE strategies 1.Influence wage levels 2.Constrain the ability of MNEs to vary employment levels at will 3.Hinder or prevent global integration of operations of multinationals

11 11 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning The response of trade unions to MNEs

12 12 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning 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’

13 13 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning 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

14 14 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning Region integration: the EU

15 15 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning EU regional integration 1.Disclosure of information & European Works Councils 2.The issue of social ‘dumping’: that firms would locate in those member states that have lower labor costs, (relatively low social security) to gain a competitive advantage

16 16 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning Codes of conduct – monitoring HRM around the world

17 17 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning 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

18 18 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning Managing HR in ‘ offshoring countries’

19 19 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning 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

20 20 of 20 Chapter 9 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: © Cengage Learning 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


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