How did the wealthiest Britons get so rich?

The source of 200 of the greatest fortunes in Great Britain in 1988 is examined using data published in Money magazine. The 200 fortunes originated in 74 different industries, the most common being land-holding (n=33) and real estate trading and development (n=15). Sixty-two of the industries were judged to be competitive at the time the fortunes orginated, 12 non-competitive. Three-quarters of the fortunes originated in what were essentially competitive industries. Possible explanations include infra-marginal rents due to business acumen or ownership of scarce essential resources, short-run disequilibrium profits, the returns to innovation, luck (or observations of the very fortunate investors who played the business uncertainty lottery), or classification errors. In any case, we learn that monopoly is not the exclusive (or even most common) source of vast fortunes in Great Britain.     

Curse or Cure? Why Was the Enactment of Britain's 1909 Trade Boards Act so Controversial?

The Trade Boards Act of 1909 was introduced in Britain to counteract sweating. Associated with long hours, insanitary work conditions and inadequate pay — with the accent falling on low wages — sweating probably afflicted some 30 per cent of Edwardian Britain's labour force. Trade boards supporters as diverse as Winston Churchill and R. H. Tawney heralded the legislation as marking a significant break in economic and social thought. Opponents declared that the enactment of the legislation would be ruinous for Britain. The future Labour Prime Minister, Ramsay MacDonald, and his wife denounced trade boards as pallid reformism and campaigned for the licensing of home workshops. On the other hand, proponents of a subsistence minimum wage, such as Sidney and Beatrice Webb, were disappointed that the legislation did not go further. Initially, it encompassed less than a quarter of a million workers. The rates set were not based on the cost of living but on what the individual trade could bear. On their own, trade boards were insufficient to eradicate Britain's long and historical tradition of being a low-paying economy. Trade boards (and their successors, wages councils) were trapped in their collective laissez-faire origins. However, despite its sanctioning of a statutory national minimum wage in 1998, the British state is still far from being interventionist in the labour market. If Britain is to break with the past, she must also implement a comprehensive framework of minimum rights. Otherwise, the principle of collective laissez-faire will still remain triumphant over the Webbs' alternative conception of a comprehensive labour code.     

The Coverage of Collective Pay-setting Institutions in Britain, 1895–1990

Fewer than 50% of British employees now have their pay and conditions affected by collective pay-setting institutions — collective bargaining or wages councils. This paper charts the historical context for the current picture of a decollectivized Britain, constructing a time series on coverage from 1895 to 1990. Extant estimates and sources of coverage data are presented and discussed alongside estimates drawn from a source used only sparingly before now — the number of workers affected by changes in wage rates of national agreements or wage orders. The recent decline in collective bargaining coverage is the most prolonged ever recorded and has been noticeably steeper than the fall in union density, such that the proportion of British workers covered is lower now than in the 1940s. With the abolition of wages councils in 1993, collective pay-setting machinery now affects the pay and conditions of fewer workers than it did in the 1930s.     

Why Do Non–union Employees Want to Unionize? Evidence from Britain

This paper assesses the determinants of the level of support for union membership among non–union employees. Using data from a representative sample of non–union employees in Great Britain, the research confirms the importance of job dissatisfaction, left–wing views and perceived union instrumentality as predictors of willingness to join a trade union, union instrumentality being the most significant.     

The character of demand in mature organic food markets: Great Britain and Denmark compared

We investigate the organic food market in two selected European countries, Great Britain and Denmark, identifying main differences and similarities. We focus particularly on consumer perceptions and priorities, labelling schemes, and sales channels as a basis for assessing market stability and prospects for future growth. We employ a unique set of household panel data that includes information on stated values and concerns as well as registered purchasing behaviour. Most organic food on both markets is produced and processed by large-scale industrialised units and distributed through mainstream sales channels, consumer confidence being sustained at present by organic labelling schemes that appear to function well. However, a parallel market, based on the supply of goods through various direct sales channels to heavy users, prevails. We find that organic food purchase decisions are primarily motivated by ‘private good’ attributes such as freshness, taste and health benefits, attributes that may be perceived as being compatible with modern production and sales structure. Mature markets for organic foods nevertheless appear to be vulnerable to consumer dissatisfaction, particularly among heavy users of organic food products.     

Viewpoint: Can U.S. local soda taxes continue to spread?

Taxes to reduce the consumption of sugar-sweetened beverages (SSBs) such as soda drinks have been endorsed by the World Health Organization and are now in place in France, Hungary, and Mexico, and scheduled for Portugal, South Africa, and Great Britain. Such taxes have so far been impossible to enact in the United States at the state or federal level, but since 2014 seven local jurisdictions have put them in place. Three necessary conditions for local political enactment emerge from this recent experience: Democratic Party dominance, external financial support for pro-tax advocates, and a political message appropriate to the process (public health for ballot issues; budget revenue for city council votes). Roughly 40 percent of Americans live within local jurisdictions where the Democratic Party dominates, so room exists for local SSB taxes to continue spreading.     

Technology, entrepreneurship and company performance in textile and clothing SMEs

This article examines the relationship between technology, entrepreneurial human capital and company performance in a sample of textile and clothing SMEs in Great Britain. General conclusions suggest that firms with a computer network are more likely to have a formal management team. Networked firms appear to be larger: smaller companies are making increasing use of computer networks.     

The Role of Job Attributes in Understanding the Public-Private Wage Differential

This study uses a unique data set for Great Britain to investigate the impact of differences in job attributes on the public-private wage differential. The study reveals that (1) there are substantial differences in wage structure between the two sectors, particularly finding that the public-sector wage structure is less sensitive to differences in the attributes of jobs, and (2) differences in job attributes play in a major role in accounting for pay differences across sectors.     

The Survey Tradition in British Industrial Relations Research: an Assessment of the Contribution of Large-Scale Workplace and Enterprise Surveys

The paper assesses the contribution to industrial relations research of the large-scale workplace and enterprise-based surveys of industrial relations in Britain, paying particular attention to the Workplace Industrial Relations Survey (WIRS) series. It takes issue with recent criticism of survey-based analysis in the field, arguing that industrial relations researchers have developed a distinctive and valuable survey tradition. The use of surveys in industrial relations contrasts markedly with that in labour economics, stemming from differing methodological preferences in the two fields. Some limitations of the WIRS series to date are reviewed, before considering future directions that survey research might take in order to capture the changing canvass of industrial relations in Britain.     

Product creation process at Philips Electronics

About 3 years ago Dr F.P. Carrubba, Chief Technology Officer on the Board of Philips Electronics, stated that product creation is a core activity for Philips and thus needs continuous attention and improvement. A corporate-wide Product Creation Process Improvement Drive was started. In this article describing the drive, we want to share our experiences that we think are important for a successful improvement drive.
The elements to be addressed are:—a framework for the improvement drive;—top-down or bottom-up approach;—the creation of an assessment tool;—some considerations for the buy-in process;—application of the assessment tool;—follow-up after the creation of the assessment tool;—conclusion.     

Inequality and Union Membership: The Influence of Relative Earnings and Inequality Attitudes

Using surveys from the International Social Survey Programme covering the period 1985–2002 for seven European countries (West and East Germany, Sweden, Norway, Italy, the Netherlands and Great Britain), we examine the effect of relative earnings on union membership and show that union density is higher among workers in the intermediate earnings group than among low or high earners. Next, we examine the association of inequality attitudes with union membership and demonstrate that union membership is not only motivated by instrumental considerations related to relative earnings, but also by normative concerns about inequality. We interpret our findings suggesting that rising earnings inequality is in itself a source of union decline.     

British Science Parks: Reflections on the Politics of High Technology

Science parks—high technology property developments associated with universities—have suddenly proliferated in Britain. Local authorities, universities and public sector development agencies are now eager to exploit what seems an obvious way of stimulating high technology industry. Though much of their enthusiasm is a product of self interest, it is justified by arguments that science parks provide conditions conducive to high technology industry's prosperity. These arguments are hard to accept, but then so too is the reasoning that perceives easy and instant benefits from high technology. Such euphoria is in stark contrast to the reality that will probably face many British science parks. Keywords: science parks, high technology, universities, Britain, information flow.     

Antecedents and Consequences of Goal Incongruity on New Product Development in Five Countries: A Marketing View

This article examines an important challenge to effective cross-functional integration: goal incongruity among marketing, research and development (R&D), and manufacturing in new product development. We examine the effect of this incongruity as perceived by the marketing function on three components of cross-functional integration: the harmony of cross-functional relationships, the quality of cross-functional information, and the level of cross-functional involvement. We also examine how two types of managerially controllable variables affect goal incongruity: (1) factors that motivate functions to develop common goals; and (2) factors that facilitate the formation of such goals. We give special attention to the effect of national culture on the formation of common goals. Data collected from marketing managers in 1,083 firms in five culturally distinct areas—-the United States, Great Britain, Japan, Hong Kong (a special administrative region of China), and mainland China—are used to test the hypothesized relationships. Our results underscore the importance of people-side issues, and of national culture, in cross-functional integration. Perceived goal incongruity among marketing, R&D, and manufacturing impairs all three components of cross-functional integration. In United States and British firms, goal incongruity generally is attributed to motivational factors and in Japan and Hong Kong to facilitative factors. Finally, our results show that the two types of managerially controllable variables interact. For example, joint rewards and job rotation strengthen each other's tendency to reduce goal incongruity in all five samples. This suggests that job rotation promotes the development of joint goals more effectively when it is accompanied by a joint reward system.     

Nothing New under the Sun: The Prescience of W. S. Sanders' 1906 Fabian Tract

In order to understand the impact of the national minimum wage (NMW) on pay, employment and other variables, the Low Pay Commission studies pay setting, coverage of the NMW, competitive versus monopsonistic labour markets, non-compliance, offsets and the interaction between the NMW and the social security system. But similar issues were analysed a century ago by Fabian and other writers. In particular, the 18-page 1906 Tract by W. S. Sanders — the first ever call for a national minimum wage — anticipated all the present debates. That tract is examined here.     

The Role of the User in Successful New Product Development

Abstract: The purpose of the study reported in this paper is to examine the view that one of the reasons for the poor performance of British companies in certain engineering industries may be the relatively low technical sophistication of its domestic customers. Data for the study were collected predominantly by mail questionnaire from customer organisations in Great Britain and West Germany. The results of the study suggest that British customers are significantly less receptive to new technology than their West German counterparts, and less demanding of new technology from their suppliers. Given the importance of the domestic customer to new product development activity this appears to be a major problem for British suppliers, and suggests an alternative approach to public policy designed to improve the innovative performance of British Industry in these sectors.     

An application-oriented guide to R&D project selection and evaluation methods

The purpose of this paper is to provide managers with a set of guidelines to help them to choose the project evaluation and selection model that best suits their business environments. To this end the authors have surveyed the literature of the subject and used contacts made in training workshops with Swiss industry.
From this information the authors have identified five key issues — signposts that mark the route towards the appropriate project selection method. Once a sufficiency of project proposals has been identified — more than could be implemented with the resources available — then one takes into account successively how far the selection parameters can be quantified, how far one project interferes with or depends on the completion of another, whether a project has one or more than one objective, and the degree of acceptable risk. The procedure is presented in the form of a binary decision tree the various branches of which lead ultimately to twelve archetypal groups of methods. Each group is in principle suited to a practical situation represented by some combination of the key issues recognizable by a manager.
The paper discusses the strengths, weaknesses, limitations and practicality of the methods falling into each group. It concludes with suggestions about how a framework could be extended and refined. Keywords: Research and Development, Project Selection.     

Understanding What Has Been Happening to the Public-Sector Pay Premium in Great Britain: A Distributional Approach Based on the Labour Force Survey

This article investigates what has been happening to the public-sector wage differential in Great Britain over the period 1994–2017. The evidence indicates that apart from men in the lower part of the pay distribution, the public-sector pay premium has declined for all public-sector workers. This decline has coincided with a decline in the overall pay gap, which is associated with changes in the composition of public- and private-sector workforces. As the relative pay disadvantage experienced by public-sector workers at the top of the pay distribution has worsened over time this must raise serious concerns about the ability of the public sector to recruit and retain the staff it needs to deliver public services.     

Book reviews

Book review in this Article
The Management Implications of New Information Technology N. Piercy (ed.)
High Technology Small Firms — Innovation and Regional Development in Britain and the United States R. Oakey
Future Work James Robertson Maurice Temple Smith
Technology, Work and Industrial Relations Russell D. Lansbury and Edward M. Davis
Report of the Committee of Inquiry into Labour Market Programs Australian Government Publishing Service Canberra
Japanese Employment and Employee Relations: An Annotated Bibliography Bill Ford, Millicent Easther and Ann Brewer Australian Government Publishing Service, Canberra
Technology and the Workforce: An Annotated Bibliography Bill Ford, Margaret Coffey and Dexter Dunphy Technology Research Unit, New South Wales Ministry of Technology
Technological Change: The Tripartite Response, 1982–85 Hedva Sarfati and Margaret Cove
Work in the 1980s. Emanicipation and Derogation Bengt Ove Gustavsson, Jan Ch. Karlsson & Curt Räftegård     

Objectives and incentives: Evidence from the privatization of Great Britain’s power plants

Does privatization increase plant productivity because the private owner’s objective is different, or because they are better able to control management? And, is privatization sufficient to improve productivity, or is it only effective in combination with competition? We answer these questions using the quasi-experiment of Great Britain’s electricity industry privatization. To separate the effect of a change in objectives from a change in incentives we assume, that the former only affects labor but not fuel productivity. And, assuming that effective competition was only introduced after privatization, we are able to separately identify the effects of privatization and competition. We find that privatization increased labor but not fuel productivity: evidence for the importance of objectives. There is no evidence that the introduction of effective competition after privatization increased labor or fuel productivity: evidence that privatization increases productivity by itself.     

Institutions and the Management of Human Resources: Incentive Pay Systems in France and Great Britain

Using data from large‐scale establishment surveys in Britain and France, we show that incentive pay for non‐managers is more widespread in France than in Britain. We explain this finding in terms of the ‘beneficial constraint’ arising from stronger employment protection in France, which provides an impulse to develop incentive pay; employer networking activities in France, which facilitate joint learning about its development and operation; and government fiscal incentives for profit‐sharing, which reduce the cost of its operation.