Union objectives and indexation externalities in a monopolistically competitive economy

This paper extends the literature on indexation externalities by analyzing equilibrium and efficient indexation in a unionized economy characterized by a monopolistically competitive goods market. The assumption that union objectives relate to both employment and the real wage implies that union indexation decisions are associated with a negative externality and, as a consequence, the equilibrium degree of indexation is inefficiently high. This feature is characteristic of both passive and activist policy environments.     

Inflation and Growth: Stories Short and Tall

This paper reviews the stories that economists tell about the growth effects of inflation. Informal accounts are common, but there are few models that get to grips with the effects that are probably central. Partly as a result of this, and partly as a result of many econometric problems, much of the empirical evidence remains unconvincing. The paper assesses the various contributions, and suggests possible improvements.     

The human resource barriers to managing quality in China

China has one of the fastest growing economies in the world. The challenge for the future is likely to be the extent to which Chinese operations can utilize modern management techniques to improve product and service quality. This paper explores some of the problems that were affecting the management of quality within two foreigninvested enterprises (FIEs) based in the Shenzhen region of China. The paper argues that the provision of new factories and machinery was not sufficient in itself to ensure the maintenance of quality standards. Quality management in the West has become synonymous with increased employee involvement and developing customer-orientated cultures (Rees, 1998). The success or otherwise of quality management initiatives therefore depends upon the co-operation and enthusiasm of employees (Wilkinson et al ., 1998; Oliver and Wilkinson, 1992). Quality management within the case companies was hampered by the prevailing work ethic and was hindered by inadequate human resource and management systems. The study highlighted poor standards of training, dissatisfaction over levels of remuneration, and poor communication within the case companies. The paper argues that the problems experienced by the companies were inextricably linked to aspects of China's historical development. This history has helped to engender employee attitudes and behaviours that are poorly understood. Models of quality management are needed which are sensitive to the Chinese operating context.     

The Accuracy of Hybrid Estimating Approaches: A Case Study of an Australian State Road & Traffic Authority

Reference class forecasting (RCF) is increasingly being adopted to mitigate two main factors causing persistent cost overruns in infrastructure projects—optimism bias and strategic misrepresentation. In practice, organizations tend to tailor generic estimating approaches to their unique operating environments by developing hybrid approaches blending RCF with other approaches such as the conventional fixed contingency approach. Yet, little empirical evidence exists on the accuracy of RCF or its variations. This study presents the results of estimation accuracy of a sample of road projects conducted by an Australian State Road & Traffic Authority using a hybrid estimating approach blending primarily RCF with fixed contingency approach. The results are then compared with historical results from literature on infrastructure projects and samples of two other dominant estimation methods, namely, the conventional fixed contingency approach and risk-based estimating (RBE). This study finds that the average accuracy of this sample using the hybrid approach compares favorably to historical results, which typically use the fixed contingency approach.     

Farewell to HRM? Personnel practices in Japanese manufacturing plants in the UK

While Japanese manufacturing investment burgeoned in the UK in the 1980s and 1990s, its relative size remained small. Nevertheless, its impact was greater than its size. At its extreme it was championed by the 'new right' as the way forward for industrial practices, while manufacturing organizations in the UK were quick to attempt to emulate Japanese management practices. Core to these practices was the management of human resources. Coincidentally in the 1980s a new model of personnel management was being championed, namely human resource management (HRM). This was eagerly embraced by UK academics and was translated into two distinct forms, 'hard and soft'. Despite appearing mutually incompatible, the hard and soft forms were forged into a unified model. This paper, drawing on an empirical analysis of personnel practices in Japanese manufacturing plants in the UK, searches for a conjuncture between the HRM model and 'Japanese' models. It concludes that, while there are similarities between the two, there are also distinct differences. Moreover, where similarities exist they are with the hard variety of HRM.