Industrial relations and organizational behaviour: a critical appraisal1

This paper is concerned with the growth and development of two fields of study which are customarily separated in both theory and practice. Those who specialize in one area, whether as students, teachers or research workers, are not necessarily familiar with, or required to learn, the state of knowledge in the other, although, as we shall show, there is a considerable commonality of interest. To some extent, this situation is an accident of history and the first part of this paper deals with the events and influences leading to the emergence of each field of study. In the second part, common strands and factors leading to the convergence of the two fields are considered. The third section examines the “state of the art” and evaluates current strengths and weaknesses. Finally, an appraisal is made of the direction of likely future trends.     

Booms, Busts, and Fraud

Firms sometimes commit fraud by altering publicly reported informationto be more favorable, and investors can monitor firms to obtainmore accurate information. We study equilibrium fraud and monitoringdecisions. Fraud is most likely to occur in relatively goodtimes, and the link between fraud and good times becomes strongeras monitoring costs decrease. Nevertheless, improving businessconditions may sometimes diminish fraud. We provide an explanationfor why fraud peaks towards the end of a boom and is then revealedin the ensuing bust. We also show that fraud can increase iffirms make more information available to the public.     

Diversification and performance: evidence from East Asian firms

We examine the impact of diversification on performance for firms operating in different institutional environments during a relatively stable period and during a major economy‐wide shock. We locate our study in six Asian countries at different levels of institutional development. Results indicate that diversification negatively impacts performance in more developed institutional environments while improving performance only in the least developed environments. Even in the least developed institutional environments, diversification offers limited benefits when an economy‐wide shock strikes. Though successful diversifiers are sometimes affiliated with business groups, diversification is associated with poorer performance for both affiliated firms and independent firms. In sum, we find that the outcomes of diversification are influenced by institutional environments, economic stability and affiliation with business groups. Copyright © 2007 John Wiley & Sons, Ltd.     

Bottom-up learning in marketing frontlines: conceptualization, processes, and consequences

This study proposes a frontline learning process by which organizations capture new knowledge generated by frontline employees in addressing productivity-quality tradeoffs during customer interactions and transform it into updated knowledge for frontline use. Updated knowledge, in turn, is posited to influence customer satisfaction and financial outcomes (i.e., revenue, efficiency). Empirical testing with multi-source data reveals that: (1) knowledge articulation mediates the transformation of knowledge generated in the frontlines into updated knowledge, (2) updated frontline knowledge positively impacts customer and financial outcomes, and (3) frontline employee workload inhibits the transformational process unless it is at an intermediate level (inverted U-effect), while employee goal convergence bolsters it linearly.     

Diversity in organizations: Where are we now and where are we going?

A great deal of research has focused on workforce diversity. Despite an increasing number of studies, few consistent conclusions have yet to be reached about the antecedents and outcomes of diversity. Likewise, research on different dimensions of diversity (e.g., age, race, gender, sexual orientation, disability, and culture) has mostly evolved independently. Therefore, the purpose of this review is to examine each of these dimensions of diversity to describe common themes across dimensions and to develop an integrative model of diversity.     

Welfare Policy: Cash Versus Kind,Self-Selection and Notches

This paper investigates second-best allocations where the government lacks full information about consumer types, and how such allocations may be implemented through notch schemes. Thus, we provide another rationale for notches in addition to that investigated by Blinder and Rosen (1985). We use a model of Blackorby and Donaldson (1988), extending their results to more general preferences and to more general tax-subsidy instruments (piecewise linear, rather than linear). We argue that observed policies are sometimes of this nature: In-kind subsidies that are available only if consumption equals or exceeds a particular amount have been used in practice, in housing, and medical care.     

Transnational corporations and the global water industry

This article takes stock of foreign direct investment (FDI) undertaken by transnational corporations (TNCs) in the global water industry and examines the evidence on the impact of their operations in host countries. Between 1996 and 2006, approximately $12 billion were invested in water‐related sectors, of which 75% came from the private sector (including TNCs) from just four countries, while tentative calculations put the global share of investment by TNCs at 56%. Presently, 243 enterprises have interests in 409 water projects in 53 host countries. However, just six countries have received over half of the total investment. A survey of the evidence reports mixed results of the impact of TNCs' investment in host countries. It is argued that the biggest issue here is pricing, a dilemma that, alongside the privatization issue of host countries' water industry, is discussed in the concluding section. © 2011 Wiley Periodicals, Inc.     

Supplements and Complements to the Current Employee Representation System in the United States

Employee representation is an important aspect of the employment relationship. In some countries (e.g., Germany), the government mandates employee representation. In other countries (e.g., the Commonwealth), employers voluntarily recognize employee representatives. In the United States, employees must earn their right to be represented in a certification process that results in collective bargaining. With the significant reduction of union membership in the United States, this representation model is in decline. Other forms of participation have not picked up the slack. Hence, there remains a significant representation gap. In this paper, I describe and analyze several solutions to the representation gap. Both unorganized and organized forms of employee representation are considered.     

Politics, Insurance Regulation, and Unfunded Pension Liabilities

ABSTRACT: Insurance regulators operate in an environment in which resources are scarce and issues are most often complex and not salient to affected persons. Consequently, regulatory agencies, such as the Pension Benefit Guaranty Corporation (PBGC), need to use resources efficiently by making issues salient and not complex if regulatory goals are to be attained. To further its goal of full funding of defined benefit pension plans, the PBGC annually published a list of the Top Fifty Companies With the Largest Underfunded Pension Liability (LIST). This article investigates the issue of the economic effects of pension plan disclosure by measuring the share price response of the companies included on the LIST; then policy implications are drawn. The event study findings show that, on average, publication of the LIST did not have a negative effect on firm value. However, cross-sectional analysis provides some support for the contention that publication of the LIST had an economic cost on LISTed firms. The authors' results show that the value of large firms on the PBGC's list is less negatively affected at arrival (ARRIVAL) than smaller LISTed firms. Conversely, when firms leave the list (DEPARTURE), the value of large growth-oriented firms is more negatively affected than the value of other firms that reduce their unfunded pension liability. From a policy perspective, as hypothesized by Meier (1991), the PBGC used its scarce resources effectively by publishing the LIST. The issue of unfunded pension liability became less complex and more salient to interested parties. Consequently, consumer groups and political elites provided their support to further the regulatory agency's stated goal, which was the full funding of defined benefit pension plans. Furthermore, increased awareness of the underfunding problem contributed to the passage of the Retirement Protection Act of 1994.     

Code of ethics quality: an international comparison of corporate staff support and regulation in Australia,Canada and the United States

The objective of this paper is to examine the ‘Code of Ethics Quality’ (CEQ) in the largest companies of Australia, Canada and the United States. For this purpose, a proposed CEQ construct has been applied. It appears from the empirical findings that while Australia, Canada and the United States are extremely similar in their economic and social development, there may well be distinct cultural mores and issues that are forming their business ethics practices. A research implication derived from the performed research is that the construct provides a selection of observable and measurable elements in the context of CEQ. The construct of CEQ consists of nine measures divided into two dimensions (i.e. staff support and regulation). They should not be seen as a complete list. On the contrary, it is encouraged that others propose and elaborate revisions and extensions. A practical implication of this paper is a structure of what and how to examine the CEQ in a managerial setting. It may assist companies in their efforts to establish, maintain and improve their ethical culture, norms and beliefs within the organization and supporting them in their ethical business practices with different stakeholders in the marketplace and society. The dimensions and measures of the construct may be used as a frame of reference for further research. They may be useful and applicable across contexts and over time using similar samples when it comes to large companies, as small‐ or medium‐sized ones may not have considered all areas nor have the elements in place. This is a research limitation, but it provides an opportunity for further research.