Seeding the clouds for industrial relations climate change in emerging economies

As manufacturing businesses increasingly move labor‐intensive production to emerging economies, it is important for international managers to understand the sociopolitical factors that shape the climate in which management and labor interact. We present a conceptual “weather map” of industrial relations climates and use indices to plot the climates of 33 emerging, 11 transition, and 21 developed economies. As hypothesized, emerging economies, compared with transition and developed economies, are characterized by a relatively adversarial industrial relations climate and a high incidence of industrial action. Implications for international managers and future research directions are discussed. © 2009 Wiley Periodicals, Inc.     

Cornering the Japanese market

Carol Sage, Training Director of the Sheraton Center, New York City, presents an account of a training initiative in a New York City convention hotel — aimed at improving relations with Japanese guests, with a view to increasing the hotel's share of the Japanese tourist market. Training in cross-cultural awareness improved staff services for Japanese visitors, to such an extent, that the Japanese market share of the hotel has already increased.     

A theory of bank regulation and management compensation

We show that concentrating bank regulation on bank capital ratiosmay be ineffective in controlling risk taking. We propose, instead,a more direct mechanism of influencing bank risk-taking incentives,in which the FDIC insurance premium scheme incorporates incentivefeatures of top-management compensation. With this scheme, weshow that bank owners choose an optimal management compensationstructure that induces first-best value-maximizing investmentchoices by a bank's management. We explicitly characterize theparameters of the optimal management compensation structureand the fairly priced FDIC insurance premium in the presenceof a single or multiple sources of agency problems.     

Maternity rights and mothers' return to work

This paper uses a cohort of 12,000 births to examine the effect of maternity rights on mothers' post-birth return to employment decisions. It uses a discrete hazard model to disentangle the effects of the terms of maternity rights entitlements from other factors that influence the timing of a mother's return to work. Mothers with rights have an underlying (but unobserved) stronger attachment to the labour market that prompts earlier return than on average. We take this into account by estimating a counterfactual distribution of return times using a sample of women who failed to qualify for maternity rights but who have similar levels of labour market attachment. Even when differential attachment is taken into account there remains a substantial impact of maternity rights on behaviour.     

CORPORATE CULTURE: THE LAST FRONTIER OF CONTROL?[1]

The purpose of this paper is to examine the present U.S. use of the concept of ‘corporate culture’ using the sociology of Emile Durkheim as a conceptual framework. Durkheim was concerned with understanding where potential sources of morality might reside in a rapidly changing, increasingly differentiated society. Proponents of corporate culture do not rely specifically on Durkheim's work but essentially answer his question by suggesting that the corporation is the appropriate site for moral order. In this paper it is argued that the attempted manipulation of a corporation's culture is simply an addition to other forms of control which companies have tried to implement. More than other forms of control, however, corporate culture elicits sentiment and emotion, and contains possibilities to ensnare workers in a hegemonic system. On the other hand, strengthening corporate cultures in the U.S.A may also lead to increased worker homogenization and activism.     

Contents of Volume 35

Volume Contents

Contents of Volume 35     

Alienation in corporate America: Fact or fable?

Using NORC annual survey data, the authors selected 21 questions describing respondent attitudes toward job, life in general, and financial status. Respondents were catigorized as management, white collar, blue collar, and those not affiliated with business organizations. Attitudes were compared across the four occupational groups. Little dissatisfaction was found in any but the blue collar group. Management as a group, and men as well as women managers showed high levels of satisfaction, with few significant differences found in responses by men and women. This study does not support the earlier finding of widespread alienation in business firms.Charles B. Sannders is Professor of Business Administration at the University of Connecticut. He has written numerous articles which have been published in various management journals.Hugh M. O'Neill and Oscar W. Jensen are Assistant Professors of Business Administration at the University of Connecticut and the Fairfield University, respectively. Both have written several articles, published in management journals.