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Final

BUS 432 Final: CHAPTER 10 –INTERNATIONAL EMPLOYEE REPRESENTATION & CSR


Department
Business Administration
Course Code
BUS 432
Professor
Dave Thomas
Study Guide
Final

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BUS 432 FINAL EXAM
CHAPTER 10 INTERNATIONAL EMPLOYEE REPRESENTATION
& CSR
- Employee Representation:
o Industrial relations as a system (balance triangle)
o Influences of MNE organization of trade union and the influences of
trade unions on MNE
Industrial relations as a system
National industrial relations system is a reflection of the society in which it
operates. It can be thought of as a subsystem of society.
It consists of
1. actors (orgs, employees and management)
2. rules product of the interaction between actors
3. environmental context dynamic forces that result in the interactions
among actors
a. technological context (technological features of work situation)
b. economic context (market opportunities or limitations)
c. political context (relative power distribution)
4. ideology
a. binds the system together as an entity
Management, workers and gov’t are always in equilibrium in a society. In
different part of the word, different elements of the relationships tend to
dominate. For example in the USA the nature of the relationship largerly between
management and workers and gov’t doesn’t play much of a role (adversiral).
Whereas in Europe gov’t plays a big role in the relationship between
management and workers. Always in balance and they relate the distribution of
power in the larger society.
USA the dominate power force is largely in management - commercial driven
society
This system results in different kinds of industrial relationships in different
societies
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o
Types of Unions
1. industry unions: represent all levels of employees in an industry
2. craft unions: based on occupation, represent employees across industries
3. conglomerate unions: same as craft unions
4. general unions: open to membership of almost everyone in a country
5. enterprise unions: limit membership to employees of a single firm, japan
6. professional unions: restrictive
7. public unions: restrictive to public sector
Liberal labor market economies autonomy when they bargain with labor
market economies
Coordinated market economies dense network of institution sustained by laws,
customs, values
MNEs influence on the industrial relations system
- Ability to relocate factors of production
o MNE upset the balance in the national IR system because they are
multinational and trade union are not.
o They are therefore not bound by the constraints of a single trade
union because it has the ability or reorganize factors of production
elsewhere. This gives it far more leverage because it has the ability to
move production to countries that have lower production cost, lower
standards and low degree of organization this allows the MNE to
put more pressure on trade union, worker and their gov’t to accept
what they are proposing
- Remote location of authority
o Trade union have a harder time dealing with MNE because they aren’t
able to understand the decision making structure of the organization.
This further limits the trade unions bargaining power because they
aren’t able to figure out if a particular subsidiary can meet their
bargaining demands.
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