Employment flexibility,unions and companies in France

Employment flexibility–eg in relation to easier dismissal and the removal of most restrictions on temporary work–has grown in France during the eighties. This article traces and discusses its consequences for labour relations, collective bargaining and the labour movement.     

Institutions in building projects: Implications for flexibility and change

Building practice is often studied from a project management perspective, a view that stresses the temporary and unique aspects of the project organizations. However, the organization of building projects, as well as the buildings produced, varies little between projects. This homogeneity suggests that the building sector is subject to strong institutionalization. The findings of a building project case study are used to illustrate the different kinds of institutions in Swedish building. It is concluded that the strong institutions are related to a great need for coordination and communication in complex project organizations. The institutionalization could explain why initiatives generated by individual projects and companies seldom bring about long-term change in building.     

Organizational flexibility in Korean companies: rules and procedures on managerial discretion and employee behaviour

This paper examines organizational flexibility in Korea by concentrating on the rules and procedures on managerial and employee behaviours (safeguard and control rules), and their association with size, ownership, strategy and performance. The data reported were collected from forty-five organizations in South Korea. The results showed that flexibility in terms of low control rules (rules on employees) relates to innovation strategies, and lack of flexibility (high control rules) relates to cost-reduction strategies. The results also show that in Korea, a 'fit' between this aspect of organizational flexibility and strategy had a positive impact on organizational performance. Rules on managerial behaviour (safeguard rules) were strongly related to family or individual ownership in the Korean context. The implications of 'congruence' between organizational strategy and presence/absence of flexibility for employee behaviour are discussed.     

The myth of flexibility in organizational change

In this article we examine the complex nature of organizational flexibility. We question the myth of flexibility as exclusively a top management interpretation of constant adaptiveness to environmental change by exploring the various rigidities involved in a seemingly adaptive organization. Our long-term study of a major Finnish commercial bank under deregulation identified several dominant forms of temporal flexibility–rigidity configurations: formal rigidities, flexible rigidities, rigid flexibilities and defensive rigidities. These configurations were revealed by focusing on the structural tensions which emerge between different levels of management and on the different interpretations given by competing groups to the notion of “organizational flexibility” within a process of change.     

Workplace industrial relations in British Rail: change and continuity in the 1980s

This article compares the findings of a recent survey of workplace industrial relations in British Rail with those from one conducted in 1980. It is suggested that the changes observed may be unintended consequences of management policies rather than the planned outcome of explicit industrial relations strategies.     

Innovation,actors and institutions: change and continuity in local development policy in two Hungarian regions

This article focuses on institutional and policy innovation in two Hungarian regions. We analyse the responses of the local elites in these two regions to the post‐1989 challenges and discuss how they have tried to innovate local economic policy in order to promote economic development. Also, we will consider to what extent they have been constrained or facilitated by historically developed institutions. We conclude that the more successful innovation strategies have been those which have at least partially been based on historically accumulated institutional resources. These have been selectively employed in innovative ways and form essential building blocks of the regions' new development strategies. Also, the cases suggest that economic development, as well as the accumulation of institutional resources over time, do not necessarily follow one homogeneous path but may combine several simultaneous paths. Different combinations, then, result in diverse sets of institutional resources which affect the capacity for innovation. Cet article est consacréà l'innovation institutionnelle et politique dans deux régions hongroises. Il analyse les réponses des élites locales aux défis de l'après‐1989, montrant comment elles ont tenté de concevoir une politique visant à faciliter l'expansion économique régionale. Il étudie ensuite dans quelle mesure elles ont été entravées ou soutenues par les institutions d'origine historique. En conclusion, les stratégies d'innovation les plus fructueuses ont été celles qui se sont appuyées, au moins en partie, sur des ressources institutionnelles accumulées depuis longtemps. Ces derniegrave;res ont été exploitées ponctuellement selon des modalités novatrices, devenant les composantes essentielles des nouvelles stratégies de développement des régions concernées. L'expansion économique, de même que l'accumulation historique de ressources institutionnelles, ne suivent pas obligatoirement un seul chemin homogène, combinant parfois plusieurs sentiers parallèles. Des combinaisons différentes produisent ainsi des ensembles variés de ressources institutionnelles, lesquels influent sur la capacité d'innovation.     

When companies improve the sustainability of the natural environment: A study of large U.S. companies

In light of the call for companies to abandon current approaches to environmental management, this study adds to the environmental strategy literature and uses the evidence of competitive dynamics among companies to identify a mechanism by which companies invest in proactive environmental strategies and thereby improve the sustainability of the natural environment. An examination utilizing fixed effects regressions on a sample of large U.S.‐based companies reveal that even after controlling the number, environmental and financial performance of leading (environmental) companies, laggard (environmental) companies are more likely to invest in proactive environmental strategies when their leading peers display higher sustainability orientations. Neither the expectation of government regulation nor social movement pressure was found to be influential in this relationship. Therefore, the future dominance of companies' investments in the sustainability of the natural environment will be driven by companies themselves as long as competitive advantages are expected.     

Transformations in- and outside the internal labour market: institutional change and continuity in Japanese employment practices

The weak performance of the Japanese economy since the 1990s has renewed the debate on the efficiency of its employment practices. Although actual changes have long trailed expectations, two major developments have taken place in recent years: a rise in non-regular employment and the introduction of performance-related pay (seikashugi). Both affect the internal labour market that has been crucial to human resource management in Japan. The first development diminishes its relevance and the second directly impacts its functioning. This paper discusses these changes and the factors that determine their character. Moreover, it argues that the changes are not just aligned with but also made possible by an important continuity in the support for the core practice of lifetime employment. What results is a story of institutional change and continuity which argues that the specific character of Japanese employment practices remains in spite of an apparent convergence.     

Determinants of work organization in the modern firm: change and continuity in the Spanish labour relations

The host of statistical data on labour organization from the 2004 Encuesta de Calidad de Vida en el Trabajo (2005) will be used as a basis for using factorial analysis to identify the factors that determine how ‘modern’ companies organize their work according to business management literature. Workers' identification with their company seems to be the essence of a good part of business managers' objectives. The results of the research point to a continuity in a worker profile that largely corresponds to the Fordist model, with a few significant changes: the domain of some non-conflictive industrial relations which is settled on the value that is given to the good relationships with mates and managers and the flexible work-class positive assessment that allows to harmonize other life aspects.     

Evaluating environmental and social performance of large Portuguese companies: a balanced scorecard approach

A thematic balanced scorecard format was used to address environmental and social performance evaluation of 13 large companies operating in Portugal. Financial aspects of environmental and social company activities are also included. Companies were categorized as to their actual performance status using a predefined performance framework. Three categories were found: compliance with the law while emphasizing pollution control, pollution prevention and eco‐efficiency. Management tools and procedural matters were found to be most relevant for categorization. Often, reported information did not allow for quantitative evaluation of environmental burden reduction. Use of the thematic balanced scorecard format was useful to better understand the strengths and weaknesses of links between objectives and measurements, initiatives and achievements. Improvement as to environmental performance was found to be paralleled by increased social performance, suggesting that a multi‐level ‘sustainability’ performance categorization of these Portuguese companies is feasible. Driving forces for environmental management initiatives were found to differ by category of performance. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Employment security at DEC: Sustaining values amid environmental change

This article, based on a case study of Digital Equipment Corporation, examines issues raised by efforts to stabilize employment. The specific case is a large program which restructured and reduced employment without resorting to layoffs. The article describes the DEC process, the key choices which underly the procedures, and provides data on the consequences for individuals and the firm. It then explores the implications of the DEC experience for the broad human resource principles and actions which must underlie any effort to stabilize employment.     

Many roads to flexibility: how large firms built autarchic regional production systems in France

This article discusses the adjustment of large firms in France, in particular how they regionalized their production structures in the 1980s. Throughout the ‘Golden Age’, large firms had geographically reorganized their activities: strategic planning remained in Paris, while the actual production was decentralized into the provinces, primarily to address cost and labour conflict issues. When the large firms faced a profitability crisis in the 1980s, and the traditional state‐financed way out of the problems was no longer available, they saw in these proto‐regional production systems a chance to become more competitive. They relied on the decentralization policies of the governments in the 1980s, and used the second‐order effects of the new policies as a means to modernize their own operations. L'article examine l'adaptation des grandes entreprises françaises, notamment la régionalisation de leurs structures de production dans les années 1980. Durant ‘l'Age d'Or’, les grosses entreprises avaient réorganisé géographiquement leurs activités: la planification stratégique restait à Paris, tandis que la production réelle se décentralisait en province, principalement pour résoudre des problémes de couûts et de conflits sociaux. Lorsque ces grandes entreprises se heurtèrent à la crise de rentabilité des années 1980, alors que la solution traditionnelle de financement étatique n'existait plus, elles virent dans ces systèmes de production proto‐régionaux une chance d'améliorer leur compétitivité. Elles s'appuyèrent donc sur les politiques de décentralisation des gouvernements de l'époque, profitant des effets secondaires de ces initiatives pour moderniser leur propre fonctionnement.     

The roles of the HR function: A systematic review of tensions,continuity and change

This paper provides a comprehensive review of continuity and change in the roles associated with the HR function and the tensions they entail, systematically covering over 50 years of research. It reveals that the normative models of HR roles, including the influential work of Ulrich (e.g., 1997), have stimulated greater interest in studying HR roles than the sociological studies conducted by the field’s pioneers. In terms of change, many HR specialists have sought to make a transition, through various means, towards a greater strategic role in organisations. The extent to which they have navigated this transition successfully has been influenced by complex, multi-level contingencies and by the varying interpretations and responses of the stakeholders involved in HRM. The literature analysis shows that the historical tensions associated with the HR function remain a defining continuity. As the paradox perspective suggests, they are lived with or adjusted to, with varying degrees of success. In contrast to the dichotomous view of HR roles that assumes a trade-off between strategic and operational roles, the review provides evidence of synergy or complementarity between them. This more integrative view of HR roles is clearly important for the pursuit of greater mutuality in the employment relationship, something that is often strongly valued by HR specialists. The paper includes recommendations for future research to develop the theories and the research process on HR roles and practical implications.     

The effect of cash holdings on firm performance in large Italian companies

This paper examines the relationship between cash holdings and performance in Italy over 36 years. Specifically, in light of the presence of conflicting evidence concerning the worth of cash stock, which could lead to a positive effect rather than a negative one, the role of moderating factors that can shape the magnitude of this relationship is investigated. The results show that the value of cash holdings is affected by firm‐specific characteristics, as well as factors related to the institutional context. Although other studies have analyzed moderators one at a time, this is the first work to consider how they jointly work. When the moderators are considered together, some of them become no longer statistically significant while others become even more economically and statistically relevant.     

Globalisation,industrial diversification and productivity growth in large European R&D companies

This paper aims to assess the impact of both geographic and industrial diversification of economic activities on the productivity performance of large European R&D Multinational Enterprises (MNEs). Based on the worldwide subsidiaries of these firms, we measure the performance of the firms according to their level of industrial diversification and globalisation that we proxy with the presence and importance of subsidiaries in the EU, North America and Asia–Pacific regions. The sample consists of large R&D firms that represent about 80 % of total European R&D. In general, the results indicate a positive impact from globalisation on firms’ R&D productivity, especially in the US, while a negative impact for industrial diversification is found.     

Attitude and consciousness of Japanese men and women towards career commitment and continuity: the role of expected change in HRM policies

A survey was conducted on 302 working men and women in Japanese private firms and local government organization anrl 51 non-working Japanese women to examine the attitude and consciousness towards career commitment and continuity if organizations adopt some policy formulations in more relaxed ways to accommodate, particularly, Japanese women in the workplace. Many studies have well documented that women’s passive attitude towards career commitment and continuity, as compared to that of men, is the outcome of discriminatory HRM policies and practices in the internal labour market. The ANOVA results show that the attitude on the policy relating to work–home harmonization differs significantly between men and women. As compared to working women, non-working women would have a more positive attitude to career commitment and continuity if a work-home harmonization policy wcre adopted. The ANOVA results also reveal that men and women have shown an almost similar attitude to pay structure and, thus, the integrated corporate pay structure can help in developing women’s attitude and consciousness towards career commitment and continuity, but women cannot share equally with their male counterparts as regards the policy of career development; rather, they are demanding job security, distributive justice and career counselling in the workplace.     

Agency costs,corporate governance mechanisms and ownership structure in large UK publicly quoted companies: A panel data analysis

This paper examines the impact of governance and ownership variables on agency costs for a panel of large UK quoted companies. We use three measures of agency costs: the ratio of sales-to-total assets, the interaction of free cash flows and growth prospects and the number of acquisitions. We employ a range of techniques to analyse the data: fixed-effects, instrumental variables, and Tobit regressions. We find that the changes in board structures that have occurred in the post-Cadbury period have not, generally, affected agency costs. This suggests a range of mechanisms is consistent with firm value maximisation. We also find that having a nomination committee increases agency costs, which indicates that there are costs associated with certain governance mechanisms. Increasing board ownership also helps to reduce agency costs. We also find that debt reduces agency costs. Our results raise questions about the usefulness of the information sent to shareholders when firms adopt a recommended governance framework.     

The German model of employee relations on trial: negotiated and unilaterally imposed change in multi‐national companies

This article investigates the effects of negotiated and unilaterally imposed change on employee relations in the German subsidiaries of a Finnish and a German multi‐national company (MNC). We look at how the strategies affect the sustainability of the current German model of employee relations and highlight some of the disadvantages of this model for global MNCs.     

Duality and continuity

This paper fills the one remaining lacuna in (multiple-output) duality theory by provingjoint continuity (in input and output vectors) of cost, benefit, and (input and output) distance functions. Continuity is an important property where measurement error exists, for it provides assurance that small errors of measurement (of quantities or prices) result only in small errors in concepts like minimal cost. We consider continuity not only in prices and quantities, but also in technologies. Continuity in technologies might be more important than continjity in prices or quantities, because production technologies are almost certainly measured (or estimated) with error.     

CEO succession with gender change in troubled companies: The effect of a new woman CEO on firm risk and firm risk perceived

The replacement of the CEO is one of the first actions a troubled company may take to recover from a critical situation. In this paper, we analyze the change in firm risk and firm risk perception when women are replacing men as CEOs of troubled companies. The analyses are based on a comprehensive dataset covering all registered companies in Norway from 2005 to 2014. We argue that a new woman CEOs increase the chances of improving the risk situation of troubled companies. Building on CEO succession and social identity theories, we study the firm risk situation under the lenses of risk perception and firm risk, and we find that a newly appointed woman CEO, following a man, tend to decrease the level of risk of the company. Furthermore, we find counterbalancing effects on these changes given the moderation effect of women on the board.