Between trust and control: company‐level bargaining on flexible working hours in the Danish and German metal industries

Denmark is often highlighted as a good example of organised decentralisation in which employee bargaining power remains comparatively strong. However, comparative analysis of the Danish case rarely reflects how the social contracts between management and workers' representatives contribute to the bargaining outcome at company level. Drawing on 10 case studies in the German and Danish metal industries carried out in 2005, this article argues that the social contracts at the Danish case companies allow a more efficient use of company‐level agreements on flexible working hours than the social contracts at the German case companies.     

Partnership with and without trade unions in the UK financial services: filling or fuelling the representation gap?

Partnership theory proposes that an appropriate integration of direct and indirect employee participation mutually benefits the workers and the company. This study explores the putative employee voice gains and the risks for union effectiveness by comparing employees' evaluation of partnership practices at two financial service companies with non‐union and union employee representation, respectively.     

A comparison of HRM systems in the USA,Japan and Germany in their socio‐economic context

This article provides a comparative analysis of the HR practices of American, Japanese and German companies. The starting point is an investigation of the managerial, economic, socio‐political and cultural contexts of the three HR systems. It will be demonstrated that the socio‐economic contextual factors of the American and Japanese HR systems are in many ways at opposite ends of the spectrum, with the German factors in between. Subsequently, the three HR systems themselves are analysed. The data show that the same pattern, USA and Japan at the extremes and Germany taking a middle position, is valid also for the HR systems. This suggests that the relevant socio‐economic context is highly pertinent for the establishment of an HR system. This outcome does not exclude either the integration of HR practices from a foreign HR model into the domestic one or standardisation efforts of HR practices of multinational companies, but confines the potential for cross‐cultural learning and standardisation to what is within the ‘fit’ of the relevant socio‐cultural context.     

The role of employee participation in generating and commercialising innovations: insights from Chinese high-tech firms

To date, employee participation finds very little recognition in China in research as well as in management practice. It seems to fundamentally contradict traditional values in Chinese culture. The effect of employee participation on innovation is completely unknown, not only for China, but also for many other emerging economies. In contrast, employee participation finds a lot of recognition in the western world for quite some while. Research suggests that employee participation is particularly relevant for innovations in skilled labour contexts, which are becoming increasingly important also for China. Based on a survey of 620 medium-sized and large companies we are investigating the effect of employee participation on innovation generation and commercialisation in China. In the formulation of our hypotheses we take the moderating effects of incentives into account. The contribution of this article is to give evidence on the explanation power of the western concept of employee participation outside the western world. This allows for a better understanding of the robustness of the concept towards cultural context factors.     

Widening the lens: a structuration theory perspective on European works councils and transnational labour relations

This article outlines a concept for analysing practices of European works councils. Much previous research has focused its attention merely on a single institution or actor, for instance the European works council, transnational agreements or trade union federations. However, previous research in the field suggests that transnational labour relations often involve many actors on different levels inside and outside an MNC who interact, refer to different cultural patterns and draw power to act from various sources. To cover those processes, a structuration theory framework is developed that models different ‘action fields’, which actors refer to in their social practices of cross‐border employee representation. The framework is illustrated with case studies of Toyota and General Motors. The benefits and limitations of the new perspective are discussed with reference to previous accounts.     

Managing employee expectations during acquisitions

There is a wide body of evidence that suggests that the management of 'human factors' in post‐acquisition implementation is important and, where it is badly managed, helps to explain why up to half of acquisitions are not deemed to be successful. A central feature in this process is the management of employee expectations. Using research insights drawn from the management and formation of expectations in recruitment and from breaches of the psychological contract, this article reports on research in organisations subject to a takeover within two years of the field work. Detailed findings on two of these cases are used to explore the dimensions of dual expectations in such circumstances. It is suggested that employees in acquired companies have concerns that become expectations concerning both themselves ('me') and their work group ('us'), ranging from immediate job and employment worries on transfer to longer‐term status and behavioural and cultural concerns in the 'new' organisation. These expectations will vary over time and have different facets according to the seniority of the employee, the degree of integration sought by the acquirer and the extent to which expectations formed are proven to be realistic and realisable. The two cases analysed reveal different aspects of unmet expectations in acquisitions. Seven factors were identified as influential in shaping employees' expectations in acquisitions: quality of communication, believability of information, trust in management action, credibility of leadership, fairness of action, consistency of action and communication and logic of management action or behaviour.     

Improving the Sustainable Development of Firms: The Role of Employees

Stakeholders have been found to be an important driver of organizations' sustainable development. In particular, customers, governments and non‐governmental organizations push firms towards sustainability. But to what extent is sustainability really and deeply embedded within an organization's structures and processes? And what is the role of an important, but frequently neglected, stakeholder group for successful sustainability implementation: employees? The objective of this research is to better understand the impact that organizational change for sustainability has on firm performance. Also, this study seeks to understand how the consideration of employees into the process of organizational change for sustainability moderates the organizational change and performance relationship. Using data from 92 German companies from the manufacturing and services sector, the study finds that the structural implementation of sustainability is positively related to firm performance and that employee integration moderates this relationship to some extent. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

Improving corporate biodiversity management through employee involvement

This paper presents an empirical examination of the role of employee involvement in the internalization of corporate biodiversity management. A qualitative study in natural resource companies was conducted, based on semi‐directive interviews with managers, consultants, and experts in this area. The findings show that employee involvement is essential to improve biodiversity practices in natural resource companies, which largely rely on organizational citizenship behaviors for the environment. The role of tacit knowledge, voluntary initiatives, and prevention of harmful behaviors in the workplace are highlighted. The main obstacles to the internalization of biodiversity issues include their complexity, the lack of corporate commitment, the externalization of initiatives, and the lack of training for employees. The contributions to the literature on corporate environmental management, internalization of new practices, and organizational citizenship behaviors for the environment are explained. Managerial implications and avenues for future research are also provided.     

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.     

High‐commitment HR practices,employee effort,and firm performance: Investigating the effects of HR practices across employee groups within professional services firms

In this study, the authors examine the relationship between high‐commitment HR practices and firm performance in professional services firms through the mediator of employee effort. In addition, they contribute to the debate in the field of strategic HRM on whether high‐commitment HR practices should be used across all employee groups within a firm. Their study's results show that high‐commitment HR practices positively relate to firm performance through employee effort for two employee groups within professional services firms. Further, they found that the relationship between effort and performance is contingent on the value of the employee group to firm competitive advantage, suggesting that companies may only want to expend the effort and resources on building a high‐commitment HR system for employee groups that are clearly tied to creating firm competitive advantage. © 2011 Wiley Periodicals, Inc.     

Conceptualising the dynamics of employee information and consultation: evidence from the Republic of Ireland

The debate concerning the emerging regulatory environment for employee voice continues apace, in particular the requirements to inform and consult employees as a result of the European Employee Information and Consultation Directive. This article examines the processes used to inform and consult employees across 15 case studies in the Republic of Ireland. It evaluates different voice arrangements using a conceptual framework that seeks to capture the dynamics of different employee voice schemes across union and non‐union companies. The findings suggest that participation is more robust when the channels for information and consultation accommodate both conflictual and cooperative processes. It is shown that robust forms of participation are more likely through processes that facilitate independent representation. The evidence also shows that some employers may devise their own counterbalancing forms of (pseudo) consultation, in an attempt to minimise the impact of regulatory rights for employee voice.     

The Olympic Effect: Employee Reactions to Their Employer's Sponsorship of a High‐Profile Global Sporting Event

With companies investing vast sums of money on sponsoring high‐profile sports events, it is surprising that very little research exists to examine the possible impact that this has on the sponsors’ employees. This two‐wave panel study explores the indirect role that Olympic sponsorship and employee support for this sponsorship has on increases in organizational identification and discretionary effort—via, that is, pride and employee assessments of their employer's corporate social responsibility (CSR) credentials. The current study surveyed 241 employees (from three countries) in two phases across a 12‐month period in the run‐up to the 2012 London Olympics. Olympic sponsorship support was found to be positively associated with organizational pride and CSR perceptions, which both predict increases in organizational identification and discretionary effort (controlling for earlier baseline levels of these outcomes). In addition, there is also evidence of an indirect positive effect (through CSR perceptions and pride) of Olympic sponsorship support on increases in organizational identification and discretionary effort. The implications of these findings for decision makers considering sponsoring major sporting events are discussed; the findings provide interesting insights that can help HR functions to understand the consequences of sports sponsorship and processes involved that explain positive employee responses. © 2015 Wiley Periodicals, Inc.     

Are German,Japanese and Anglo‐Saxon Strategic Decision Styles Still Divergent in the Context of Globalization?*

abstract Issues of globalization and divergence in terms of national systems and cultures are equally contentious, yet equally important, in the context of increasing cross‐continental co‐operation. This article investigates comparative strategic decision styles in Britain, the USA, Germany and Japan. An industry at an advanced stage in terms of globalization, vehicle components manufacture, was selected in order to explore the extent of convergence and whether this has changed. Between 1989 and 1998, field case studies were made of 100 strategic investment decisions (SIDs) by manufacturers in these four countries. Longitudinal judgements were supplemented by earlier comparative strategy field research carried out in 60 suppliers between 1980 and 1983, and two longitudinal case studies, one from the UK and one from Japan, interviewed throughout both these periods and again in 2002. Two competing hypotheses, derived from rich research literatures, are investigated. The first (H1) suggests that national institutional and cultural factors exert profound differences, and should therefore be afforded more significance as globalization proceeds further. The second (H2) is apparently contradictory and emphasizes that institutions and organizations are likely to respond to convergence pressures, spurred by global capital markets and competition on the one hand, and a diffusion of ‘professional management’ practices on the other. Japanese firms generally, and German family firms in particular, were still found to exhibit deep‐rooted differences from the Anglo‐Saxon model, which appears to confirm H1. However study of German public companies reveals that their strategic approaches are far less divergent from what is now an increasingly consistent Anglo‐Saxon model than they were a decade ago, which appears to confirm the competing hypothesis H2.     

All for one and one for all: A mechanism through which broad‐based employee stock ownership and employee‐perceived involvement practice create a productive workforce

Drawing on social identity theory, this research frames a multimediational model that delineates how broad‐based employee stock ownership (BESO) and employee‐perceived involvement practice in tandem yield a productive workforce at the organization level. In our theoretical model, we propose that social cohesion and voluntary turnover are collective attitudinal and behavioral outcomes resulting from the shared perception of we‐ness that employees experience through both participatory practices. Our path analysis of a multisource, time‐lagged dataset from 176 large U.S. companies revealed the sequential mediating roles of social cohesion and voluntary turnover between these organizational practices and labor productivity. Our theoretical claims and empirical evidence will contribute to a systematic understanding of how and why BESO and employee involvement leverage greater organizational productivity from employees.     

Front‐line managers as agents in the HRM‐performance causal chain: theory,analysis and evidence

Research on the link between HRM and organisational performance has neglected the role of front‐line managers, yet it is these managers who are increasingly charged with the implementation of many HR practices. Using an employee survey in 12 ‘excellent’ companies we explore the extent to which employee commitment towards their employer and their job are influenced by the quality of leadership behaviour and by satisfaction with HR practices. Both have a strong effect on employee attitudes. The article concludes with a case study of a planned effort to improve front‐line managers' skills in people management.     

Employee involvement and group incentives in manufacturing companies: a multi-level analysis

The effects of employee involvement and group incentives on organisational commitment and turnover intention were examined using data from a survey of over 4,000 employees in 29 manufacturing companies. Using the mediated moderation model, we investigated the moderating role of capital intensity on the relationships between employee involvement and group incentives and these outcomes, and the mediating role of organisational commitment on the effects of employee involvement and group incentives on turnover intention. The findings revealed that employee involvement is more effective in capital-intensive companies than in labour-intensive companies, but group incentives are more effective in labour-intensive companies. The moderated effects on turnover intention were mediated through organisational commitment. Implications for company policies and future research are discussed.     

Embedded collectivism? Workplace representation in France and Germany

In most countries of Western Europe it makes little sense to speak of non‐union employee representation, as this is understood in the Anglo‐American world, for the principle of collective representation independent of the employer is strongly institutionalised. In this article we examine experience in two countries. In Germany, works councils with a wide repertoire of rights typically work in close partnership with trade unions. The system has experienced strains in recent years, and a growing proportion of mainly smaller workplaces are covered neither by councils nor by collective agreements; but there is virtually no evidence of alternative ‘voice’ mechanisms, and systems of direct participation are normally introduced by negotiation with councils. In France, works committees have fewer powers, and a divided trade union movement has been less successful than its German counterpart in ‘embedding’ the legally mandated institutions, at least in the private sector. Despite some common trends in both countries, national distinctiveness remains very apparent. There is growing scope for managerial strategic choice, but this is still institutionally bounded. Much more generally, countries displaying characteristics of a ‘European social model’ can be expected to sustain a close articulation between union and ‘non‐union’ channels of representation.     

Local complexities and global uncertainties: a study of foreign ownership and human resource management in China

Drawing on qualitative data, this paper examines developments in human resource and employment policies and practices among a sample of joint venture and wholly owned foreign enterprises operating in China. The research reveals that the effects of parent company nationality and ownership form were most visible in the areas of remuneration, worker representation and aspects of employee selection. There was, however, little overt involvement of multinational parent companies in the management of human resources of their Chinese operations. The trend was towards indirect reporting relationships with regional sub-units of multinational companies rather than direct links with the parent headquarters. Overall, these intermediate sub-units were playing an important role in the integration of Chinese business units in the global management systems of multinational companies.     

Co‐determination and strategic integration in German firms

Looking at the economic development and importance of German companies in Europe, one might expect that an important aspect of a good economic performance is a well‐functioning HR system. Although a number of scholars claim this, the empirical evidence seems to point to the opposite. Several comparative studies have found that HRM in German companies is less strategically integrated and proactive than that of comparable firms in other countries. This article argues that the empirical results reported fail to grasp the essence of HRM in German firms. This lacuna is partly due to the co‐determination structure. HRM in large German firms has to be evaluated within the co‐determination structure, with the Betriebsrat (works council) being an important actor. For German firms co‐determination might even be a strategic resource. By examining this issue within such a framework, a more favourable picture of HR integration in German firms emerges.