Lecture%2b11%2bInternational%2bLabor%2bRelations

Lecture%2b11%2bInternational%2bLabor%2bRelations - Lecture...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
11/10/11 MGT 4190 1 Lecture 11: Industrial Relations Key definitions Background MNCs and International Industrial Relations Labor and International Industrial Relations Recent trends MNC concerns about Labor Labor concerns about MNCs Impact of regional trading blocs
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
11/10/11 MGT 4190 2 Key Definitions Industrial Unions: represent all grades of employees in an industry Craft Unions: based on skilled occupational groupings across industries Conglomerate Unions: represent members in more than one industry General Unions: open to almost all employees in a given country
Background image of page 2
11/10/11 MGT 4190 3 Background Difficult to compare industrial relation systems and behavior across national boundaries Difficult to understand industrial relations in any country without understanding its historical background and evolution Lack of familiarity of MNCs with local industrial and political conditions has sometimes needlessly worsened a condition that a local firm would have been likely to resolve. Prahalad and Doz
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
11/10/11 MGT 4190 4 MNC Concerns About Labor Unions Influence wage levels Can lead to higher costs and Loss of competitive advantage if not managed properly Constrain the ability of the MNC to vary employment levels Many countries have legislation that limits the MNC’s ability to make major changes, pay extraordinary rates for redundancy, etc. Can be a more serous problem than higher wages Hinder or prevent integrated global operations Can restrict the ability of the MNC to fully optimize its global network – leading to intentional sub-optimization to prevent labor strife Labor unions can limit strategic choices of MNCs in several ways
Background image of page 4
11/10/11 MGT 4190 5 MNCs Response Responsibility for labor relations often delegated to foreign subsidiaries But decentralization does not necessarily mean that HQ does not exercise some control and coordination over labor strategy – especially when Could affect overall international business strategy Could create negative precedents for labor negotiations in other countries
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
11/10/11 MGT 4190 6 MNCs Response Most MNCs track and monitor labor performance across countries and regions Provides MNC HQ or regional HQ with valuable information for decision-making in terms of Planning when and where to locate Where to invest or not invest Rationalization of production capacity
Background image of page 6
11/10/11 MGT 4190 7 MNCs Response MNC HQ involvement influenced by several factors Degree of Inter-subsidiary product integration Nationality of ownership of the subsidiary US firms tend to exercise greater control over labor relations than other MNCs
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/10/2011 for the course MGMT 4190 taught by Professor Robertdesman during the Fall '11 term at Kennesaw.

Page1 / 26

Lecture%2b11%2bInternational%2bLabor%2bRelations - Lecture...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online