11.6.3 Approaches to labour relations
There are two broad approaches to international labour relations: centralised and decentralised. To argue in favour of one versus the other is to beg the question. Both approaches are necessary and one must dovetail into the other.
Centralisation is desirable when decisions are concerned with labour and transportation costs, skill levels, availability of natural resources and the political climate in countries in which the MNE operates.
Decentralisation is desirable when decisions are concerned with labour laws, union power, the nature of collective bargaining and the work culture. Increasingly, the way work is organised in particular countries is seen as a source of competitive advantage. Employee participation has a long history and it has many forms. Your textbook mentions self-managing teams, but quality circles (QC) and ultimately total quality management (TQM) are manifestations of employee participation in decision making. This is definitely the domain of local management - decentralisation.
Read what Hill (2005) has to say to complete this section on international labour relations and also work through the additional reading that contain examples of how labour relations differ in a number of countries.
In your text
Hill 2005, Chapter 18, pp. 637-639.
Reading 11.5
Gómez-Mejía, L. R., Balkin, D. B. and Cardy, R. L. 2004, Managing Human Resources , 4 th edn, Pearson/Prentice Hall, Upper Saddle River , New Jersey , pp. 507-510: 'Labor relations in other countries'.
To help tie the topic of IHRM together, read through the article by McEvoy and Parker (2000) and consider whether you (and your partner and family if applicable) would be suitable for an overseas assignment.
Reading 11.6
McEvoy, G. M. and Parker, B. 2000, 'The contemporary international assignment: A look at the options', in Mendenhall, M. and Oddou, G., eds, Readings and Cases in International Human Resource Management , 3 rd edn, South-Western College Publishing, Cincinnati, Ohio, pp. 470-486.
Activity 11.4
A colleague has approached you for advice on whether an offer of an international assignment should be accepted. Write your 'Top 10' pieces of advice here.
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