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Topic: International Industrial Relations & The Global Institutional Context

Topic: International Industrial Relations & The Global Institutional Context. Name: SID:. The Objectives. Compare the cross-cultural differences between Australia and China Explore major issues of MNEs’ international industrial relations and related policies

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Topic: International Industrial Relations & The Global Institutional Context

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  1. Topic: International Industrial Relations & The Global Institutional Context Name: SID:

  2. The Objectives • Compare the cross-cultural differences between Australia and China • Explore major issues of MNEs’ international industrial relations and related policies • Identify the role of trade union in international business • Analyse the importance of regional integration (EU) • Summarise the HRM roles in international business

  3. Cultural difference between Australia & China (Hofstede culture dimensions) • Individualism versus Collectivism

  4. Cultural difference between Australia & China (Hofstede culture dimensions)Power Distance

  5. Cultural difference between Australia & China (Hofstede culture dimensions)Short-term versus Long-term Orientation

  6. Cultural difference between Australia & China (Trompenaars culture dimensions)Neutral versus Affective

  7. Cultural difference between Australia & China (Trompenaars culture dimensions)Specific versus Diffuse

  8. Cultural difference between Australia & China (Trompenaars culture dimensions)Universalism versus Particularism

  9. Key Issues of International Industrial Relations • Industrial Relations Policies and Practices of Multinational Firms • National differences on economy, politics and regulations • Tend to be at a more cross-national and comparative level

  10. The Degree of Inter-subsidiary production integration • High degree of integration leading to the centralization of the industrial relations function • A coordinated industrial relation is essential for global production strategy

  11. Subsidiary Characteristics • Subsidiaries formed through acquisition of well-establish indigenous firms tend to be given more autonomy over industrial relations • Young subsidiary has greater intervention • The significant resources supports • Unsatisfactory performance of subsidiary tends to accompanied by increased corporate involvement in industrial relations

  12. International Human Resource Management Approach • The ethnocentric predisposition is more likely to associated with various forms of industrial relations conflicts • The geocentric firms tend to bear more influences on host-country industrial relations systems

  13. Other Major Issues of International Industrial Relations • Nationality of Ownerships of the Subsidiary • MNE Prior Experience in Industrial Relations • Characteristics of the Home Product Market • Management Attitudes towards Unions

  14. Trade Unions and Strategic Choices • Influence the wage levels • Constrain the ability of multinationals to vary employment levels at will • Hinder global integration of the operations of multinationals

  15. The Responds of Trade Unions • International Trade Secretariats • Lobbying for Restrictive national Legislations • Regulation of Multinationals by International Organizations

  16. Case Study: Wal-Mart • Wal-Mart is confronted with the large campaign held by trade unions • The employees have either poor medical coverage or none at all. • The Negative Industrial Relations have significant influences on Wal-Mart

  17. The Influences on Wal-Mart • The reduction of employee satisfaction • The decline of organizational efficiencies in the workplace • The unsatisfactory market performance caused by the serious public reputation • Therefore, Wal-Mart must take immediate actions to deal with industrial relations when conducting global business activities

  18. The European Union (EU) and Industrial Relations • The EU provides various implications for industrial relations • The ‘social policy’ involves the issues such as labour law and working conditions, aspects of employment and vocational training • The issue of social ‘dumping’

  19. The Role of HRM and Industrial Relations • Consulting with unions and employee representatives • Contribute to internal communication strategy • Design new jobs generated by off shoring operations

  20. Reference Lists • Bamber, G. Lansbury, R. and Wailes, N. (2004). International and Comparative Employment Relations, London: Sage • Cooke, W. N. (2006). ‘Multinational Companies and Global Human Resource Strategy’, Oxford University Press, pp.489-509 • Shen, J. (2007). Labour Disputes and Their Resolution in China, Oxford: Chandos Publishing • Schregle, J. (1981), ‘Comparative Industrial Relations: Pitfalls and Potential’, International Labour Review, vol.120, no.1, pp. 15-30 • Meardi, G. & Marginson, P. (2006), ‘European Union Enlargement and the foreign direct investment channel of industrial relations transfer’, Industrial Relations Journal, vol.37, no.2, pp. 92-110 • Gunnigle, D. & Collings, D. (2005), ‘Exploring the dynamic of Industrial Relations in US Multinational: Evidence from the Public of Ireland’, Industrial Relations Journal, vol.36, no.3, pp. 241-256 • Hamill, J. (1984), ‘Multinational Corporations and Industrial Relations in the UK’, Employee Relations, vol.6, no.5, pp. 12-16

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