Union substitution effects of human resource management practices in South Korean workplaces, 2005–2013

Abstract

This article explores the association between various workplace-level HRM practices and a decline in union strength using a unique longitudinal survey data-set gathered in South Korea from 2005 to 2013. It addresses the underlying theoretical mechanisms by which HRM programs substitute for the roles labor unions have traditionally played. Suggesting more nuanced theoretical implications about HRM practices and union decline, statistical analyses reveal that workplaces that have implemented HRM practices have unions with a weaker organizational base than those without such practices, but that certain HRM programs correlate with unions with a strong collective voice in management decision-making. This article identifies the new roles for unions in South Korea in the era of HRM.     

Shifting sands? trade unions and productivity at Rover Cars

This article examines the impact of trade unions on productivity at Rover Cars. Intra-organisational variables which influence productivity levels at Rover are also considered. It concludes that the positive approach by both management and unions to collective bargaining in the late 1980s yielded significant gains in performance. This endorses the view of the Harvard School of economists who argue that unionism can be a force for greater economic efficiency.     

Problems with partnership at work: lessons from an Irish case study

This article uses a case study of a celebrated enterprise partnership in Ireland that broke down to get an insight into why such arrangements are hard to sustain. The argument of the article is that meaningful enterprise partnerships require trade unions and management to accept agency costs, which in practice involves management modifying their right to manage and unions accepting that issues normally addressed by the collective bargaining process may have to be delegated to the partnership arrangement. The evidence of the case study is that neither management nor unions were prepared to incur such costs. The case study suggests that the following trinity – meaningful partnership, full-blown collective bargaining and management's right to manage is exceptionally difficult to operate at the same time.     

Militant and moderate trade union orientations: what are the effects on workplace trade unionism,union-management relations and employee gains?

This paper presents survey findings exploring the claim that trade union militancy will deliver more advantages for unions than moderation (Kelly, 1996). Responses from representatives in two unions reveal militancy is associated with stronger union workplace activity and greater engagement with management in solving operational problems and long-term business strategies. However, there was no evidence that militancy significantly affects many terms and conditions. Moderate trade unionists in this sample were no more likely to hold a unitarist frame of reference. A further factor analysis of the militancy-moderation scale revealed two separate dimensions of militancy - a 'bargaining' and a 'mobilizing' approach. Although finding some expected benefits linked with militancy, different benefits appear to be associated with a bargaining approach and a mobilizing approach. It is suggested the approach taken in collective bargaining may be at least as important as mobilizing union members in securing gains from a militant union strategy.     

Not every public sector is a field: evidence from the recent overhaul of the English NHS

ABSTRACT

A structural interpretation of institutionalism has become dominant in public management research. Yet, studies tend to assume an institutional-level phenomenon without specifying how an organizational field was identified or whether structural characteristics can indeed be found in the organizational population studied. This lacuna is illustrated by exploring the structural interpretation of the field construct in the case of the recent overhaul of English primary care. Findings demonstrate the need for a more robust application of institutionalism in empirical research. Possible research problems for public management and a future research agenda based on a more relational approach to fields are discussed.     

The impact of large-scale employee share ownership plans on labour productivity: the case of Eircom

Large-scale employee share ownership plans (ESOPs) have been a distinctive characteristic of Irish public enterprise reform, with shareholdings of 14.9% being allocated to employees as part of firm restructuring and privatisation programmes. This paper presents a case study analysis of a large-scale ESOP in Eircom, Ireland's former national telecommunications operator. We identify changes in labour productivity (LP) during 8 years before and after the establishment of the company's ESOP and use a framework based on Pierce, Rubenfeld and Morgan (1991, The Academy of Management Review, 16, 121–144) and Pierce, Kostova and Dirks (2001, Academy of Management Review, 26, 298–310) to explore the role played by the ESOP. The ESOP was found to play a key role in enabling firm-level reform through concession bargaining and changes in employee relations, and thereby indirectly affecting LP. However, despite the substantial shareholding and influence of the ESOP, we find that it has failed to create a sense of psychological ownership among employees, and thereby further impact on productivity.     

Individualism and collectivism: into the 1990s

New, employer-led initiatives in the management of human resources are said to have pitched the emphasis towards the ‘individualistic’ rather than the ‘collectivistic’ aspects of the employment relationship. The marginaliza-tion of trade unions and collective bargaining which this has entailed are but two (albeit fundamental) facets of a wide-ranging set of issues and repercussions. Individualization of employment policies throws up dilemmas and unresolved challenges for managers, trade unions and employees.

In embarking upon a major new empirical research project it has become necessary to revisit and review the utility of the currently available literature. In particular, how well would the traditional approaches to modelling individualism and collectivism cope with the new directions taken by recent managerial initiatives? The results of this analysis contribute the heart of this article. It is suggested that previous approaches ignore key dimensions of change which managers are currently pursuing. A new set of categories is proposed for understanding the mix of individual and collective elements in current developments. It is argued that these more accurately reflect current issues and tensions in management strategy.     

Configurations of New Public Management reforms and the efficiency,effectiveness and equity of public healthcare systems: a fuzzy-set Qualitative Comparative Analysis

ABSTRACT

Fuzzy-set Qualitative Comparative Analysis identifies configurations of New Public Management (NPM) reforms (privatization, consumerism, performance management, and corporatization) associated with perceptions of improvements in healthcare efficiency, effectiveness and equity in 14 European countries. Although these outcomes are pursued concurrently, no combination of the considered reforms appears to support success or failure across the board and the inter-relations between reforms shape their effects. Three NPM reform profiles are evident in Europe; (1) strong reformers, adopting a comprehensive package of reforms that are perceived to perform better than (2) partial reformers, with (3) limited reformers also doing better than partial reformers.     

Public Management in Developing Countries

Abstract

Ten years ago public management in developing countries was reaching the end of a period in which the ‘Washington consensus’ model of a small state was dominant, with downsizing and privatization as its key mechanisms. With reform programmes in disarray and NPM an inadequate replacement, the subsequent decade has been one of ‘reculer pour mieux sauter’, with management dislodged from centre stage by a concern with the domestic and political determinants of reform. We have also seen the return of a poverty agenda, featuring education and health in central roles, to which management specialists have yet to respond fully. This review suggests the need for public management specialists to absorb a political analysis before returning to perennial management concerns.     

The under-utilization of human resources in industrial relations theory and practice

Industrial relations, as a theoretical and practical system of work arrangements between employees, unions, management and governments, have come under substantial pressure in recent decades, but neither theory nor practice has fully adjusted to the new circumstances. The article describes the changing conditions in relation to one aspect of the industrial relations (IR) system, namely influence and power sharing outside the sphere of collective bargaining. The analysis is based on two theoretical models derived from an accumulation of social science research evidence since the 1960s and further supported by recent comparative studies of countries with significant different IR philosophies.

The application of the human resources and motivated competence models to IR leads to the conclusion that long-term interests of employees and management as well as governments are best served by having a dual system of influence and power sharing, only one of which is adversarial.     

New Technology in Unionized Firms: Advantages of Mandatory Bargaining

U.S. Labor Law currently allows employers whose work forces are unionized to introduce new technologies without bargaining over the decision to do so. This forces unions to adopt inefficient strategies when negotiating collective bargaining agreements in an effort to minimize the impact of technological change on their members. Allowing unions to bargain over the decision to introduce new technologies would obviate their having to resort to these inefficient strategies. In addition, it might increase the likelihood of employees suggesting alterations in production processes that would increase the rate of technological change. For these reasons, this article advocates amending U.S. labor law to require employers to bargain over the introduction of new technologies.     

Free riders: the rise of alternative unionism in Denmark

In this article we analyse some disturbing trends in the Danish labour market: while collective bargaining coverage is still relatively high, union density has been declining and—worse than that—there has been a substantial shift away from recognised and in favour of alternative unionism. The alternative unions are not parties to collective agreements, and they offer membership much cheaper than the recognised unions, in effect taking a free ride on the institutional supports that used to be effective only for the recognised unions. The article explains this conundrum by pointing to the political and institutional backgrounds to this development, which threatens to erode the very basis for the Danish collective bargaining system. On the background of general statistics and of a general employee survey, we point out the reasons behind the challenges confronting the recognised unions, pointing out that the recognised unions must become both more efficient in the member services and more cost efficient, if they wish to halt the present downhill trend.     

Shaping the bargaining agenda. The Audit Commission and public service reform in British local government

This article examines the role of the Audit Commission (AC) in local government collective bargaining. While the AC has no official role in such bargaining, it has a role in monitoring the performance of local government services. In this role the AC has a clear potential, in the context of the government's ‘modernization’ agenda – as manifested in its ‘Best Value’ regime, for influencing both the content of collective agreements, and the process of collective bargaining, where these are seen to conflict with other Best Value objectives – particularly in relation to external competition. The research conducted involved a content analysis of AC inspection reports on human resource services and longitudinal case studies of two local authority union branches' experiences of Best Value and the role of the AC. The findings from the inspection reports indicate that, while the AC is actually acting to promote activities that could be seen as supportive of union bargaining agendas, notably in relation to equality type issues, they are also supporting service externalisation and thereby acting to limit the scope of their impact. The reports also indicate that, despite there being prescribed ‘best practice’ for local government employment relations (‘social partnership’ with unions), the AC is not promoting any such engagement with unions. Evidence from the case studies add weight to these observations: the AC, in one case, was deeply suspicious of an attempted union management agreement on procurement, while in the other, the AC made no criticism of the costly effects that externalization had on union-management relations.     

Representation at Suncorp – what do the employees want?

It is apparent from existing research that little is known about the effectiveness of non‐union employee representation (NER) voice arrangements in Australian firms. This article examines both the non‐union Suncorp‐Metway Employee Council (SMEC) and union voice arrangements at an Australian financial services firm, Suncorp, and assesses their effectiveness in representing the needs of employees. This study is unique because it is one of the few examples of dual representation channels at a single firm. Overall the findings suggest that the effectiveness of union and NER arrangements is dependent on the union and NER voice channels being perceived by the workforce as both representative and able to act effectively or independently. However, while trade unions may provide greater voice than non‐union arrangements, the strength of voice is dependent on the legitimacy and effectiveness of trade unions in representing employees' interests at the workplace. The findings also suggest that the marginalisation strategy used by the union in excluding SMEC from its industrial campaigns, coupled with employees' perception of a lack of effective union voice, could impact negatively on the influence that unions may have on management decision‐making. This could also be perceived by employees as an inappropriate response by the union to management substitution strategies. As a consequence, any changes to industrial relations policy or trade union strategies regarding NER should be considered in the light of these findings.     

What has been happening to collective bargaining under New Labour? Interpreting WERS 2004

The late 20th century saw the rapid decline of collective bargaining, which had hitherto been the dominant means of regulation of employment in Britain. The article uses a comparison of the Workplace Employment Relations Surveys for 1998 and 2004 to assess how far this changed during the later period of economic growth and sympathetic labour legislation. Contrary to expectations, the data show that collective bargaining coverage has continued to fall, although much of this decline is concentrated in small firms in the private sector. The article goes on to analyse the recent change at sectoral level and examines evidence on the extent to which the character, as well as the extent, of collective bargaining had changed. The locus of management decision making has continued to move down organisations, both where collective bargaining occurs and also where unions are absent. Finally, the article evaluates how the perceptions of those involved in the bargaining process have shifted at a time of greatly diminished trade union influence.     

Workplace bargaining and trade union power

Frans Leijnse argues that although workplace bargaining in Britain has made substantial inroads into management control on the shop floor, there has been a striking failure by the unions to protect members against unemployment and inflation. He explains this in terms of the trade unions' existing lack of the organisational means to transfer the power they have won from the shopfloor to higher levels.     

Investment, expropriation, and unionization

In this paper, I examine an economy where output is produced from labor, capital and public services, and where firms and labor unions bargain over labor conditions and lobby the government over union bargaining power and public services. I compare three institutional cases: (a) competitive wage settlement, (b) bargaining over wages and employment, and (c) bargaining over wages only. I show that in cases (a) and (b) the government expropriates investment rents, but right-to-manage bargaining (c) protects investors from this expropriation.      

Disclosure of information: stratification and collective bargaining

Research has continually emphasised the lack of interest of management and trade unions into greater disclosure of information in collective bargaining. In this article the author explains this failure in terms of the stratification of new and existing information along hierarchical lines which do not disturb existing property rights and maintain status structures.     

Antecedents of concession bargaining in the Great Recession: evidence from Ireland

Concession or ‘give back’ bargaining involves firms seeking changes in pay and conditions of employment from trade unions in return for pledges of enhanced job security and sometimes other forms of reciprocation. Several distinct modes of concession bargaining are distinguishable in the literature, and three modes of concession bargaining have been identified in Ireland during the Great Recession: integrative, distributive and minimal engagement. Deploying qualitatively informed quantitative data on the conduct of collective bargaining during the Great Recession, this article examines a series of antecedent influences on the choices firms make in conducting concession bargaining with unions.     

Collective bargaining towards mutual flexibility and security goals in large internationalised companies—why do institutions (still) matter?

This paper examines the potential of collective bargaining to generate mutually advantageous flexibility and security outcomes at firm level. By focusing attention on actors' negotiating capacity at sites in Denmark and Italy of four large chemical-pharmaceutical companies, it provides a nuanced, comparative explanation. The findings demonstrate that, across countries, differences in actors' capacity and negotiated outcomes are attributable to the stability and depth of collective bargaining institutions. Within country differences are accounted for by the organisational resources (internal democracy, external links and pro-activity) of local trade unions, which condition their capacity to induce management to negotiate outcomes which benefit both parties.