Lecture 5 2021 - Tutor Input #4-1

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Managing Employment Relations in a Global

Context 2021-22

Managing employment relations for


high performance in global
perspective

Tutor input #4
Divergence and the management of employment relations

• Cooke (2004) study of a toy factory in


China marked by control and compliance
approach; unrealistic to expect
convergence towards the high-
commitment model of HRM (Cooke
2005)
• Foxconn in China: a ‘high pressure
production regime’ (Chan et al 2013)
• McKay (2006) study of the Philippines:
critique of HPWS concept; study of
electronics factories showed varied
management approaches, but no real
worker empowerment; notion of
Divergence and the management of
employment relations
• What about the influence of national institutional and
cultural contexts on the adoption and development
of sophisticated HRM (see Farnham 2015)? The
importance of contextualisation (Kaufman 2020)
- Western Europe: the relatively gradual and
constrained pace of change (e.g. greater trade union
involvement, higher levels of employee protection)
- Turkey: human resource management from above
(Nichols and Sugur 2004)
- Japan: the evolution of HRM in a context of strong,
organisationally-based employment systems; the
gradual shift from seniority etc to performance (see
Salmon 2004; Wood 2013: 100)
Divergence and the management of employment relations

• Management as an ‘agent of capital’:


- ‘institutions matter’: the comparative
institutionalist approach (Klerck 2014) - e.g.
are there different ‘varieties’ of capitalism (e.g.
Hall and Soskice 2001)?
- compare and contrast the short-termist
financial pressures in the US and UK with the
organisation of capitalism in countries like Japan
and Germany
- shareholder dominance and the rise of
‘disconnected capitalism’(Thompson 2011; 2013;
Dundon & Rafferty 2018)
Conclusions
• Convergence or divergence? Managing employment
relations in comparative perspective
- global competitive pressures and the diffusion of
best practice managerial techniques indicate
convergence
- but how far has the HPWS model influenced
the management of employment relations?
- importance of contextualisation (Kaufman 2020)
- evidence of convergence AND ongoing
diversity: is it a case of ‘converging divergences’
(Katz and Darbishire 2000)?

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