INTERNATIONAL HUMAN RESOURCE MANAGEMENT Globalization, National Systems and Multinational Companies TONY EDWARDS & CHRIS REES Third Edition ccc.indd 8/13/16 12:18 PM 02/08/2016 11:44 International Human Resource Management A01_REES4105_03_SE_FM.indd 10/05/1938 SAKA 10:30 pm A01_REES4105_03_SE_FM.indd 10/05/1938 SAKA 10:30 pm Third Edition International Human Resource Management Globalization, National Systems and Multinational Companies Tony Edwards and Chris Rees A01_REES4105_03_SE_FM.indd 10/05/1938 SAKA 10:30 pm Pearson Education Limited Edinburgh Gate Harlow CM20 2JE United Kingdom Tel: +44 (0)1279 623623 Web: www.pearson.com/uk _ First published 2006 (print) Second edition published 2011 (print and electronic) Third edition published 2017 (print and electronic) © Pearson Education Limited 2006 (print) © Pearson Education Limited 2011, 2017 (print and electronic) The rights of Tony Edwards and Chris Rees to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 The print publication is protected by copyright Prior to any prohibited reproduction, storage in a retrieval system, distribution or transmission in any form or by any means, electronic, mechanical, recording or otherwise, permission should be obtained from the publisher or, where applicable, a licence permitting restricted copying in the United Kingdom should be obtained from the Copyright Licensing Agency Ltd, Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN The ePublication is protected by copyright and must not be copied, reproduced, transferred, distributed, leased, licensed or publicly performed or used in any way except as specifically permitted in writing by the publishers, as allowed under the terms and conditions under which it was purchased, or as strictly permitted by applicable copyright law Any unauthorised distribution or use of this text may be a direct infringement of the authors’ and the publisher’s rights and those responsible may be liable in law accordingly Pearson Education is not responsible for the content of third-party internet sites ISBN: 978-1-292-00410-5 (print) 978-1-292-00414-3 (PDF) 978-1-292-17189-0 (ePub) British Library Cataloguing-in-Publication Data A catalogue record for the print edition is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Edwards, Tony, 1968– editor | Rees, Chris, 1966– editor | Edwards, Tony, 1968- International human resource management Title: International human resource management : globalization, national systems and multinational companies / [edited by] Tony Edwards and Chris Rees Description: Third Edition | New York : Pearson, 2016 | Revised edition of International human resource management, 2006 Identifiers: LCCN 2016026134 | ISBN 9781292004105 | ISBN 9781292004143 (PDF) | ISBN 9781292171890 (ePub) Subjects: LCSH: International business enterprises—Personnel management | International business enterprises—Management Classification: LCC HF5549.5.E45 I5777 2016 | DDC 658.3—dc23 LC record available at https://lccn.loc.gov/2016026134 10 9 8 7 6 5 4 3 2 21 20 19 18 17 Print edition typeset in 9/13, Stone Serif ITC Pro by SPi Global (P) Ltd Printed by Ashford Colour Press Ltd, Gosport NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION A01_REES4105_03_SE_FM.indd 10/05/1938 SAKA 10:30 pm Brief contents Contents vii Contributors xiii Acknowledgements xv Introduction Tony Edwards and Chris Rees xvii Part 1 The Context for International HRM Chapter Globalization, national systems and multinational companies Chris Rees and Tony Edwards Chapter National employment systems and international HRM Phil Almond Chapter The European Union: a case of advanced regional integration Michael Gold 28 46 Part 2 MNCs and International HRM Chapter International structure and strategy Tony Edwards and Chris Rees Chapter Global integration Adam Smale Chapter The transfer of HR practices in MNCs Tony Edwards, Chris Rees and Miao Zhang Chapter Cross-border mergers and acquisitions Tony Edwards and Chris Rees 71 104 126 145 Part 3 The Management of International HRM Chapter Outsourcing and human resource management Virginia Doellgast and Howard Gospel Chapter International leadership development Nabil El Gazzar and David G Collings Chapter 10 Recruitment and selection of international managers Fiona Moore Chapter 11 International pay and compensation Chin-Ju Tsai Chapter 12 International and comparative employee voice Enda Hannon A01_REES4105_03_SE_FM.indd 169 190 208 230 252 10/05/1938 SAKA 10:30 pm vi Brief contents Chapter 13 International corporate social responsibility Lutz Preuss Chapter 14 International migration and HRM Stephen Bach Index A01_REES4105_03_SE_FM.indd 275 293 315 10/05/1938 SAKA 10:30 pm Contents Contributorsxiii Acknowledgements xv Introduction xvii Tony Edwards and Chris Rees Globalization versus embeddedness Cultures versus institutions Choices versus constraints Integration versus differentiation Standardization versus segmentation Collaboration versus contestation xviii xviii xviii xviii xix xix Part 1 The Context for International HRM 1 Globalization, national systems and multinational companies Chris Rees and Tony Edwards Key aims3 Introduction3 The nature of contemporary globalization Debating globalization Globalization and MNCs 12 MNCs, the state and ‘national effects’ 14 Conclusion21 Review questions 23 Further reading 24 References24 2 National employment systems and international HRM 28 Phil Almond Key aims28 Introduction28 Types and numbers of national system 28 National business systems and HRM in MNCs 34 Management, ownership and country-of-origin effects 40 Conclusion41 Review questions 42 Further reading 42 References42 A01_REES4105_03_SE_FM.indd 10/05/1938 SAKA 10:30 pm viii Contents The European Union: a case of advanced regional integration 46 Michael Gold Key aims46 Introduction46 Regional integration agreements 48 Box 3.1 Deepening stages of RIAs50 Evolution of the EU and its employment policy 51 Box 3.2 Principal institutions of the EU52 The European social model 53 Bases of EU employment policy 54 Three key ‘moments’ in the development of EU employment policy 57 Box 3.3 Principal social partners in the EU58 The emergence of ‘soft’ law and the Open Method of Coordination 59 Theorizing convergence of HR practice across the EU 60 Future challenges for EU employment policy 61 Box 3.4 ECJ cases cited62 Box 3.5 Posted workers63 Conclusion64 Notes64 Review questions 65 Further reading 65 References66 Part 2 MNCs and International HRM International structure and strategy 71 Tony Edwards and Chris Rees Key aims71 Introduction71 Defining a multinational company 72 The motivations for internationalization 74 The arrival of the ‘global’ firm 79 Key influences on strategy and structure in MNCs 89 Box 4.1 ABB: a test case of the transnational strategy95 Box 4.2 AutoPower: shaking off its American origins?98 Conclusion100 Review questions 100 Further reading 101 References101 5 Global integration 104 Adam Smale Key aims104 Introduction104 The case for global HRM integration 105 Tools of global HRM integration 112 Achieving global HRM integration 116 A01_REES4105_03_SE_FM.indd 10/05/1938 SAKA 10:30 pm Contents ix Box 5.1 Globally integrating diversity management at Transco 118 Conclusion120 Review questions 121 Further reading 121 References121 The transfer of HR practices in MNCs 126 Tony Edwards, Chris Rees and Miao Zhang Key aims126 Introduction126 The ‘diffusability’ of employment practices 127 The hierarchy of economies and the diffusion of practices 129 Box 6.1 CFS: adaptation, absorption or retention132 Corporate characteristics promoting and hindering diffusion 134 The process of diffusion 137 Box 6.2 Engineering products: networking . . . but with the centre in charge139 Conclusion140 Review questions 141 Further reading 141 References141 Cross-border mergers and acquisitions 145 Tony Edwards and Chris Rees Key aims145 Introduction145 The national orientation of the parent in cross-border M&As 147 Box 7.1 Case study: HealthCo149 Restructuring at national level and the legacy of distinctive national systems 150 The political dimension to cross-border M&As 154 Box 7.2 Case study: Corus156 Cross-border M&As and organizational learning 158 Conclusion163 Review questions 163 Further reading 164 References164 Part 3 The Management of International HRM 8 Outsourcing and human resource management 169 Virginia Doellgast and Howard Gospel Key aims169 Introduction169 Conceptualizing outsourcing 170 Employment restructuring and the outsourcing decision 171 Coordination of HRM across organizational boundaries 176 Box 8.1 ‘Vendotel’: coordinating HRM in a multinational call centre vendor179 A01_REES4105_03_SE_FM.indd 10/05/1938 SAKA 10:30 pm Find more at www.downloadslide.com 318 Index DeNisi, A.S., 245, 246 Denmark, 47, 59, 233, 257 Deutsche Post AG, 87 Deutsche Telekom AG, 83 developing countries capital mobility, employers versus employees, 265 human capital, 75 Diageo PLC, 87 Dicken, P., 46, 71, 74, 79, 135, 255, 262 contemporary period, 11 economic affairs, 14 global economy, 12 hyper-globalists, MNCs, 15 national effects, 15 population migration, Dickmann, M., 127 diffusability, 127–9 diffusion cross-national, 134 hindering, 134–7 process of, 137–40 reverse, 37 DiMaggio, P., 19, 60 Dimitrova, S., 310 Directive on Collective Redundancies 1998 (Directive 98/59/EC), 255 Directive on Information and Consultation 2002 (2002/14/EC), 256 Directive on Transfers of Undertakings 2001 (Directive 2001/23/EC), 255 DiStefano, J.J., 199, 200 District Employment Services Authority, 151 diversity management (DM) drive, 118, 119 DIY stores, 268 Dobers, P., 280 Doellgast, V., 169, 174–5, 178, 180 Doh, J., 280 Doh, J P., 280 Dolowitz, D., 61 Dolvik, J.E., 62 dominance effects, 108, 129 Donnelly, R., 180 Doogan, K., 10 Doremus, P., 80 Dore, R., 40 Dörrenbächer, C., 37 Dowling, P., 93, 210 Dowling, P.J., 210 Doz, Y L., 112 Dragoni, L., 191–3, 196, 197 Dretler, T D., 105 Z01_REES4105_03_SE_IDX.indd 318 Dribbusch, H., 233 Drucker, M., 264 Dube, A., 174 Duina, F., 48 Dulebohn, J.H., 111 Dundon, T., 253 Dunning, J., 36, 98 Dustmann, C., 304 Duxbury, L., 114 Dyer, J.H., 177 Dyllick, T., 278 Dyson, K., 61 E Ebbinghaus, B., 53 ECJ cases, 62 Eco-Management and Auditing Scheme (EMAS), 286 Economic Community of Central African States (ECCAS), 49 Economic Community of West African States (ECOWAS), 49 economic globalization, 7–8 economic/monetary union, 50 Economist, The, 5, 169 ECSC see European Coal and Steel Community (ECSC) EDF SA, 82 education, vocational training and, 31 Edwards, M., 153 Edwards, M R., 147 Edwards, P., 94, 115, 155, 178, 183, 257 Edwards, P.K., 13, 14 Edwards, T., 3, 13, 37, 38, 41, 57, 71, 93, 94, 96, 99, 108–10, 112, 113, 115–17, 126–8, 130–2, 134, 136, 140, 145, 147, 150, 152, 153, 155, 158, 159, 178, 190 Edwards, V., 224 Ee, E., 181, 184 EESC see European Economic and Social Committee (EESC) effort-reward bargain, 35 Ehnert, I., 287, 289 EI see employee involvement (EI) Eidems, J., 116 EIRO online, 262, 263, 265 El-Agraa, A.M., 50 electronic-HRM (e-HRM), 111, 115 Elger, T., 21, 37, 39, 131 embeddedness versus globalization, xvi of MNCs, 72 of strategy, 97–9 employee involvement (EI), 253–5 in British MNC in China, 268 in socially responsible actions, 288 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com Index and teamworking, 107 employee participation (EP), 253–5 concepts of, 253 in decision-making, 257 German system, 261 in M&As, 151 schemes for, 17 employee selection and skill development, 176 employee voice, 253–5 advanced industrialized economies, 259–65 in China, 266–9 EU legislation on, 255–6 European Union, 255–9 German system, 261 German system of, 261 industrializing or developing economies, 265–9 mandatory systems, 260 MNC policies, 264–5 voluntarist systems, 259–60 employment policy, 51–3 employment practices, diffusability of, 127–9 employment relationship, 14, 31 employment system, international, 38–40 employment systems, 37, 47 country of origin effects, 40–1 HRM, 34–40 management, 40–1 numbers of, 28–34 ownership, 40–1 types, 28–34 Enel SpA, 82 enforcement, trade unions, 55 Engineering Products, 139–40 Engström, P., 232 Eni SpA, 82 E.ON AG, 83 EP see employee participation (EP) Ernst & Young, 293 ethnocentric style, 90 Euranet, 64 Eurasian Economic Union, 49 Euro Cure, 162 Eurofound, 173, 258 European Coal and Steel Community (ECSC), 48 European Commission, CSR, 276 European Court of Justice (ECJ), 52, 173, 175 European Economic and Social Committee (EESC), 56 European Economic Area (EEA) Agreement, 51 European Employment Strategy (EES), 53, 56, 58–9 European Foundation, 258, 265 European Social Model, 32 European Trade Union Confederation (ETUC), 58 European Union (EU), 48, 233 Z01_REES4105_03_SE_IDX.indd 319 319 development of, 57–9 employee voice, 255–9 employment policy, 51–7 HR practice, 60–1 open method of coordination, 59–60 principal institutions of, 52 social model, 53–4 soft law, 59–60 European Works Council’ (EWC), 256 European Works Council Directive 2009 (2009/38/EC), 256 Evans, P., 106, 111, 115, 194, 241–5 executive coaching, 199–200 expatriate compensation approaches, 241 Exxon Mobil Corporation, 82 F Falkner, G., 55, 56 Fang, T., 202 Farndale, E., 108, 118, 119, 193 Faulkner, D., 148 Fenton O’ Creevy, M., 34 Fernández, Z., 241 Ferner, A., 10, 11, 36, 38, 98, 107, 113, 114, 116, 118, 127–8, 130, 132, 134, 137, 138, 150 Festing, M., 116, 237, 239, 240 Fey, C.F., 232 Fiat S.p.A., 83 finance systems, 31, 33 mediterranean variety of capitalism, 33 varieties of capitalism, 31 financial crisis, financial economies, 134 Finland, 20 First World War, Fish, A., 212 Flecker, J., 179 Ford Motor Company, 84 foreign direct investment (FDI), 8, 9, 11, 72, 74, 77, 90, 129 foreign-national, 295 Foreman, P.O., 114 Forest Stewardship Council (FSC), 285 formalization-based integration mechanisms, 113 Forsgren, M., 154 Forster, N., 210, 216, 223, 224, 226 France, 297 Frangi, L., 37 Freeman, R., 299 Freeman, R.E., 278 free trade area, 50 Frege, C., 259 French, S., 309 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com 320 Index Friedman, A., 35 Friends of the Earth, 285 Frobel, F., 75 Fryer, B., 200 FSC logo, 285 G Gallardo-Gallardo, E., 194 Gamble, J., 20, 267–8, 270 Gap, 110, 118 GCCs see global commodity chains (GCCs) GDF Suez, 83 GDP, 130, 302 Geary, J., 134, 138 Geary, J F., 259 Geddes, A., 305, 307 General Agreement on Tariffs and Trade (GATT), 48–50 General Electric Co., 82 General Motors Co, 84 Geppert, M., 10, 37 Gereffi, G., 5, 20, 76, 109, 135 Gerhart, B., 238 Germany co-ordinated market economies (CMEs), 20 credit-based systems, 40 economic performance of, 21 employee participation, 264 employee voice, 261, 263 industry-level collective agreements, 263 migrants, 296, 297 Gerner, H-D., 264 Geyer, D., 175 Ghemawat, P., 190 Ghoshal, S., 34, 37, 89–98, 109, 112, 114, 120, 138, 211, 216, 225 managers in international firms, 89 multi-domestic era, 89 normative control, 37 transnational firm, 92 transnational strategy, 95, 96 Ghosn, C., 193 Giddens, A., 8, 10, 12 Gill, C., 145 Gingerich, D., 30 Glaxosmithkline, 79 GlaxoSmithKline PLC, 85 GLED see Global Leadership Expertise Development model (GLED) Glencore Xstrata PLC, 82 global branding, 107 global commodity chains (GCCs), 109 global corporate cultures, 36 Global Drug, 159 Z01_REES4105_03_SE_IDX.indd 320 global firm, 90 global foreign exchange market turnover, global free trade, global HRM integration achievement, 116–18 case for, 105–12 control objective of, 112 drivers of, 110–12 tools of, 112–16 global integration environmental drivers, 106 strategic drivers, 106–7 structural drivers, 107–10 globalization, 11 concept of, debating, 8–11 versus embeddedness, xvi and MNCs, 12–14 nature of contemporary, 4–8 politics of, thesis, 14 global leadership development mechanisms, 196–200 Global Leadership Expertise Development model (GLED), 196 global leaders, model for developing, 194 global management structure, 36 global mobility, 197–8 global trading system, 10 global virtual teams, 199 Godard, J., 259 Gold, M., 15, 46, 52, 53, 55, 60, 255, 256 Gollan, P., 259, 260 Gomez-Mejia, L.R., 236, 239 Gong, Y., 197 Gonzalez Menendez, C., 32 Gooderham, P., 32 Goodman, R., 219, 220 Google Inc., 86 Gospel, H., 169, 181–4 Grabbe, H., 61 Grahl, J., 262, 263 Grant, R.M., 105 Gratton, L., 109 Gray, J., 127 Greenwood, M.R., 287 Greer, I., 174, 263 Gregersen, H.B., 193, 198, 213, 224 Greskovits, B., 53 Grey, C., 5, 6, Grimshaw, D., 173–5, 178 Grugulis, I., 180 Grunell, M., 237 Gulf Cooperation Council (GCC), 49 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com Index Gumbrell-McCormick, R., 259, 260, 263 Gupta, R., 209, 223 H Habelian, J., 146, 158 Haipeter, T., 263 Hake, E., 308 Halfhill, T.R., 196 Hall, D.T., 193, 197 Hall, M., 257 Hall, P., 19, 20, 29–30, 32 Hall, R.J., 197 Halme, M., 280 Hamada, T., 218–20 Hamberger, J., 259, 260 Hancke, B., 21 Hancké, B., 53 Harris, H., 215 Harvard Business Review, 80 Harvey, D., 4, Harvey, M., 111, 223, 241 Harzing, A., 93 Harzing, A-W., 108, 112–15, 213, 225, 226, 231–2 Harzing, A-W.K., 108, 117 Hassel, A., 262, 263 Hatch, D.D., 191, 194 Hayden, A., 99, 127, 132, 190 Health and Safety Framework Directive 1989 (89/391/ EEC), 256 Healthcare, 240 HealthCo, 149–50 Hedlund, G., 92 Heijltjes, M.G., 241 Heikkilä, J.P., 114 Helper, S., 177 Hertwig, M., 263 Hetrick, S., 114 Hewlett-Packard Co, 85 hierarchy, 13, 35, 78, 96 of economies creates, 134 of national economies, 129 Hill, C., 134, 136 Hill, D., 310 Hiltrop, J.M., 17, 19 Hinds, P., 191 Hirst, G., 266 Hirst, P., 47, 80 Hirst, P.Q., 225 Hochschild, A-R., 298 Hockerts, K., 278 Hodgetts, R M., 236 Hoefer, M., 295 Hofstede, G., 16–18, 236, 265 Z01_REES4105_03_SE_IDX.indd 321 321 Hollenbeck, G.P., 191, 193–6 Holst, H., 174, 178, 263 Holtgrewe, U., 175, 178 Holt, K., 191 Honda, 130 Honda Motor Co Ltd., 83 Hong Kong, Hon Hai Precision Industries, 84 Hopkins, M., 281 Hopwood, A., 283 Hoskisson, R., 134, 136 host-country effects, 145 host country nationals (HCNs), 230, 231 Huang, Q., 268 Hudson, R., 39 human resource (HR) function, 181–4 human resource management (HRM), challenges of, 178–9 coordination of, 176–81 globalization, 293 human resource (HR) strategies, Hum, B.J., 216, 217 Huntingdon, S., Huo, Y., 266 Hurstfield, J., 310 Husted, B.W., 281 Hutchison Whampoa Limited, 83 Huws, U., 181 Hyman, J., 259, 260 Hyman, R., 54, 263 Hymer, S., 77 hyper-globalists, 4, I Iberdrola SA, 83 IBM, 80, 109, 137, 178, 181, 183, 184 Igarishi, H., 220 IHRM see international human resource management (IHRM) Ilari, S., 267 Imperial Tobacco Group PLC, 86 India, 4, 10, 79, 99, 174, 179, 181 expatriates and HCNs, 245 labour costs, migrants, 297 information and communications technologies (ICTs), 169 information-based mechanisms, 114 Insch, G.S., 221 Institute of Public Policy Research, 297 international assignees (IAs), 196 International Business Machines Corporation, 84 international business travel, 198–9 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com 322 Index international economy, international employment system, 38–40 international firm, 91–2 international human resource management (IHRM), 3, 4, practice of, 46 The International Labour Organisation (ILO), 222, 287 international leadership development global leadership, 191–2 international management adoption of, 136 complexity of, 209 of corporate culture, 37 essential skill for, 213 recruitment and selection, 220 structures, 108 international managers, 209–10 changing, 224–5 company, 211 criteria for recruitment, 210–14 legal issues, 214 nature of assignment, 211–12 person, 213–14 recruitment, 209 selection, 209, 214–20 international migrants countries hosting, 296 country of birth, 297 stock of, 296 international migration dimensions and trends, 295–8 HR implications, 304–9 impact of, 302–9 wages and employment, 303–4 worker and trade union responses, 309–10 see also migration International Monetary Fund (IMF), International Organisation for Standardisation (ISO), 285 international pay and compensation convergence versus divergence, 231–5 factors influencing, 235–8 international recruitment and selection developing world, 224 family, 223 hiring women and ethnic minorities, 222 problem, 220–2 International trade, InterServ, 159 Ireland liberal market economies (LMEs), 20 migrants, 297 irregular immigration, 294 Z01_REES4105_03_SE_IDX.indd 322 Italy, 6, 32, 51, 56, 59, 260 migrants, 297 ITOCHU Corporation, 87 Izraeli, D., 222 J Jackson, G., 21 Jackson, T., 265 Jacobsson, K., 59 Jacoby, S., 32 Jacoby, W., 263 Jaeger, A.M., 105, 112 Jamali, D., 281 Jansen, E.P., 230, 233, 236, 237 Japan, 4, 32 CMEs, 131 co-ordinated market economies (CMEs), 20 employee voice, 259 globalization, Labour Contract Succession Law, 172 recruitment of semi-skilled workers, 39 Japanese international managers, 218–20 Japan Tobacco Inc, 87 Jarillo, J.C., 112 Jensen, R., 105 Jirjahn, U., 262 job description, 209, 219 job security, Johanson, J., 81 John, R., 94 Johnson & Johnson, 83, 282 Johnson, K.L., 114 Johnson, W., 93 Jokinen, T., 191 K Kahancova, M., 135 Kahancová, M., 34 Kakabadse, A., 175 Kakabadse, N., 175 Kalleberg, A., Kaminska, M.E., 51 Kanter, R M., 105 Kaplan, E., 174 Karakowski, L., 212, 224 Katz, H., 259 Keller, B., 264 Kessler, I., 172 Khilji, S.E., 117 Kiessling, T., 111 Kilburg, R.R., 200 Kim, K., 105, 110, 113–15 Kirsch, A., 264 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com Index Kogut, B., 107 Koninklijke Philips Electronics NV, 87 Kostova, T., 20, 116 KPMG, 146 Kristensen, P., 39, 96 Kristensen, P.H., 13 Kume, I., 32 Kurucz, E., 279 Kuruvilla, S., 116, 120, 180, 181 L labour child, 50 costs, 7, 75, 175, 298 mobility, 50 Lafarge SA, 86 La Grange, A., 267 Lam, A., 218, 220 Landy, F.J., 196 Lane, C., 5, 19, 29, 177, 232 Lange, P., 59 Langlois, R.N., 170 Lansbury, R., 259 Latin America, Latvian, 63 Lazarova, M., 182 learning action learning, 201, 202 organizational, 111, 120, 158–63 Le Blanc, G., 152, 153, 156 Legge, K., 35 Legrain, P., 71 Lehndorff, S., 264 Leipziger, D., 282 Lengnick-Hall, M.L., 127 Leonard, O., 210 Leung, A.K.Y., 197 Leung, K., 246 Lévesque, C., 36 Levy, F., 299 Levy, O., 115 Lewis, P., 254, 267 liberal market economies (LMEs), 20, 30, 53 Liberty Global plc, 87 Lichter, M., 297, 307 Lieb-Doczy, E., 154 Li, J., 212, 224 Lillie, N., 175 Linde AG, 86 Lind, J., 259, 260 Linehan, M., 221, 222 Lithuania, 297 Llorens, C., 173 Z01_REES4105_03_SE_IDX.indd 323 323 Lobel, S., 198 Locke, R., 177 Longhi, V., 297, 308 Looise, J., 264 Lord, R.G., 197 Lowe, K.B., 232, 236 Lucas, R., 307 Lu, K., 115 Lundan, S., 36 Lusis, T., 294 Luthans, F., 236 Lu, Y., 108, 114, 116 Lynch-Wood, G., 279 M Maccoby, 128 MacGillivray, A., Mahajan, A., 212, 245–7 Maliranta, M., 172 Mansfield, S., 307 Marchington, M., 110, 253 Marginson, P., 22, 48, 57, 77, 78, 94, 108, 134 Marin, G S., 236 market-seeking investments, 77 Marsden, D., 32, 35 Marshall, T.H., 278 Marsh, D., 61 Martell, L., 11 Martinez, J.I., 112 Martinez-Lucio, M., 4, 6, 10, 14, 15 Martinez, M., 94, 128 Martin, G., 113, 116, 120 Marubeni Corporation, 86 Maruti Suzuki, 281 Marx, I., 56 Mason, B., 259, 260 Massa-Wirth, H., 264 Massey, D., 298, 300 Masso, J., 62 Matten, D., 278, 280 Matthews, D., 55 Matthews, G., 307 Maurice, M., 19, 29, 30 Mayer, M., 10, 147 May, J., 296, 299 Maznevski, M.L., 199, 200 McCall, M.W Jr., 191, 193–6 McCann, L., 172, 180 McDonald’s, 78 McGovern, P., 299 McHugh, D., 16–18, 21, 22 McKay, S., 294, 308 McLeod, C., 220 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com 324 Index McSweeney, B., 17, 18, 236 McWilliams, A., 276 Meardi, G., 62 Medcof, J, 93 mediterranean economy, 33 Meiksins, P., 39, 61, 129 Meil, P., 179 Mellahi, K., 190, 194, 195 Mendenhall, M.E., 190–3, 196, 199 Merck & Co, 87 Mercosur, 49 methodological weaknesses, 117 Mexico, 255 Meyer, K., 154 Meyer, M., 97 Meyers, M.C., 194 Micklethwait, J., 224 Microsoft Corporation, 84 migration age of, 294 from Central and Eastern Europe into Western Europe, 62 economic rationale of, 298 HR implications, 304–9 impact on, 293 labour, 293, 294, 298 legal impediments, 214 manage, 294 mass migration, 64 net, 295, 296 permanent, population, risks of, 300 significant influence on, 301 skilled migration, 298 unauthorized, 295 wages and employment, 303–4 of women reinforces, 298 worker and trade union responses, 309–10 The Migration Advisory Committee (MAC), 304 Milkman, R., 39, 310 Milkovich, G.T., 238 mimetic isomorphism, 61 Miozzo, M., 173–5, 178 Mirvis, P., 282 Mitchell, R.K., 279 Mitsubishi Corporation, 83 Mitsuhashi, H., 118 Mitsui & Co Ltd, 84 Mohr, A.T., 114 Mohrke, J., 309 Mondelez International, Inc., 85 Moon, J., 278, 280 Z01_REES4105_03_SE_IDX.indd 324 Moore, F., 17, 18, 37, 208, 212, 213, 216, 225 Morgan, G., 39 Morris, S.S., 104, 113, 115, 118 Moser, P., 47 Mtar, M., 99, 132 Mueller, F., 94 Muller, A., 281 Muller, M., 262, 264 Müller, S., 262 multi-domestic approach, 89 multi-domestic limits, 108 multinational companies (MNCs), 3, 4, 46 achievement, 116–19 collaboration and contestation, 34–8 corporate characteristics promoting, 134–7 crucial importance to, 15 culturalist perspective, 16–18 defining, 72–4 diffusion of practices, 129–34 economies, hierarchy of, 129–34 embeddedness of strategy, 97–9 global firm, 79–91 growth of, 71 hindering diffusion, 134–7 HRM policies, 29 institutionalist perspective, 18–21 internal politics, 104 international employment system, 38–40 international firm, 91–2 internationalization, 74–9 investments by, lack of competent global leadership talent, 190 from liberal market economies, 30 multinational firm, 89–90 national business systems, 34 organizational politics in, 93–7 pay strategy in, 238–9 process of diffusion, 137–40 standardization versus localization, pay strategy in, 238–9 strategy and structure in, 72, 89–99 tools of, 112–16 transnational firm, 92–3 multinational firm, 90 Myloni, B., 115 N NAFTA, 48 national business, 37 national business systems, 29, 35, 38, 129 national differences advantage of, 13 in socially responsible behaviour, 289 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com Index national employment systems, 47 country of origin effects, 40–1 HRM, 34–40 management, 40–1 numbers of, 28–34 ownership, 40–1 types, 28–34 National Health Service (NHS), 306 national systems of education and training, 19 elements of, 30 of innovation, 13 of management and employment, and national level, 150–3 negotiation, 36 neo-classical approach, 299 neo-liberal economic globalization, 5, neo-liberalism, Ness, I., 293 Nestlé SA, 83 Netherlands, 20, 48, 51, 151, 153, 173 net migration, 295, 296 New Finance, 158 The New International Division of Labour (Frobel), 75 New Zealand, 20 Ng, K.Y., 194 Ngo, H., 17 Nichols, T., 136, 267 Nielsen, T.M., 196 Nigeria, 297 Nijs, S., 194 Nike, 73 Nishii, L., 118, 120 Nissan, 130 Nissan Motor Co Ltd., 83 Noble, C., 29 Noe, R.A., 230 Nohria, N., 108, 109, 111, 112, 114, 116 non-governmental organizations (NGOs), 279 non-tariff barriers (NTBs), 57 Noon, M., 262 Noorderhaven, N., 93 NORDEN, 233 Nordhaug, O., 32 normative isomorphism, 61 North America, 233 North American Free Trade Association (NAFTA), 49, 50, 255 Novartis AG, 84 nursing, international migration, 306 Z01_REES4105_03_SE_IDX.indd 325 325 O Oddou, G., 198 OECD, 298 O’Grady, D.N., 202 Ohmae, K., 8, 80 Okamoto, K., 219 Oliver, N., 78, 130 Oltra, V., 241, 245 Oman, C., 75 OMV AG, 87 Ones, D.S., 220 Open Method of Coordination (OMC), 59 Orange, 85 Organization for Economic Co-operation and Development (OECD), Orlitzky, M., 279 Oshri, I., 169 Osland, J.S., 192 O’Sullivan, M., 40 Ouchi, W.G., 113 outsourcing business process, 107 conceptualization, 170–1 employment restructuring, 171–5 HR function, 181–4 industrial relations, 173–5 institutions and strategic choice, 175 and offshoring, 171 transfer of undertakings, 172–3 P Paauwe, J., 108, 118, 119 Pacific Islands Forum, 49 Page, R., 261 Pai, H-H., 309, 310 Paik, Y., 221 Pakistan, 297 Parboteeah, K.P., 233 parent country nationals (PCNs), 230 Parrenas, R., 298, 301 Parry, E., 112 Pax Americana, 129 Peloza, J., 279 Pendleton, A., 237 people-based integration, 114 Pepsico Inc, 87 performance management, 176 Perkins, S., 233, 247 Perlmutter, H., 89–92 permanent migration, Perocco, F., 178 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com 326 Index Persson, M., 93 Peston, R., 5, 6, Peters, J., Petronas - Petroliam Nasional Bhd, 85 Pfeffer, J., 232 Pfizer Inc., 83 Pierson, P., 56 Piore, M., 300, 301, 307 Podro, S., 181 Polak, R., 214 Poland, 297 policies, strategic segmentation of, 39 political actors, 13 political union, 50 Poole, M., 252, 259 population migration, Porter, M., 89, 108 Porter, M.E., 170 Portes, A., 300 Poutsma, E., 191 Powell, W., 19 Powell, W.W., 60 practices, diffusion of, 129–34 Prahalad, C.K., 112 Pratt, M.G., 114 precarious employment, Procter & Gamble (P&G) Co, 84, 183–4 producer driven chains, 109 Pudelko, M., 108, 117, 231, 232 Punnett, B.J., 220–3 Purcell, J., 11, 35, 94 Q qualified majority voting (QMV), 57 Quinn, R.E., 191 Quintanilla, J., 98, 99, 132 R Radaelli, C., 60, 61 Raess, D., 263 Ram, M., 304 Ramsay, H., 136 Ranganathan, A., 180, 181 Rao, P., 225 Rasmussen, E., 259, 260 Ray, R., 233 Rees, C., 17, 18, 41, 145, 147, 152, 178 regional integration agreements (RIAs), 47, 48–51 regional integration, progress of, 51 Reiche, B S., 196, 198 Reichel, A., 182 Reich, R., 80 relationship management competencies, 192 Z01_REES4105_03_SE_IDX.indd 326 Renault SA, 86 Renwick, D.W., 288 Repsol YPF SA, 84 response-management competencies, 193 reverse diffusion, 37 Reynolds, C., 240, 242–5 Riach, K., 220 Rienzo, C., 297, 305 Ries, P., 193 Rio Tinto PLC, 84 Roche Group, 85 Roche, W., 134 Roche, W.K., 259 Rogovsky, N., 236 Rogowski, R., 60 Rohlen, T.P., 218, 220 Rohlfer, S., 13 Romania, 297 Rosamond, B., 61 Rose, E., 253 Rosenzweig, P., 108, 111, 114, 116 Ross, S., 196 Roth, K., 116 Royal Bank of Scotland (RBS), 146 Royal Dutch Shell plc, 82 Royle, T., 78, 264 Roy, R., Rubery, J., 177 Ruël, H., 111 Ruël, H.R., 111, 112 Rugman, A., 11, 47, 78, 81 Ruhs, M., 294, 307 Ruigrok, W., 80 Rumbaut, R., 300 Russian Federation, 296 Ruta, C.D., 114 RWE AG, 85 Ryan, B., 309 S SAARC, 51 SABMiller PLC, 85 Sahadev, S., 231 Sakai, J., 219, 220 Sako, M., 172, 174, 181–4 Salamon, M., 254 Salt, J., 301 Samsung Electronics Co., Ltd., 85 Sanofi, 85 Sassen, S., 299 Saxenian, A., 302, 303 Scandinavia, 31, 60, 148, 181 Scharle, A., 62 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com 327 Index scheduling and flexibility, 176 Schlumberger Ltd, 86 Schmitt, J., 233 Schmitt, M., 264 Schneider, B., 32 Schneider, S., 16 Scholte, J.A., 4, 8, 9, 11 Schuler, R., 93, 154, 158 Schuler, R.S., 236 Scott, R., 19 Scott, S., 305, 307 Scullion, H., 190, 196 Second World War, 48 Sedgwick, M., 219, 220 Seifert, H., 264 Seki, K., 191 selection of candidates, international positions abilities and competencies, 217–18 formal methods, 215–16 informal methods, 215 tests and examinations, 216–17 third-country nationals, 217 Selmer, J., 114, 213, 224 Semple, K., 308 Sennett, R., Shabana, K.M., 279 Shaffer, M.A., 193, 198, 202 Shay, J.P., 195, 197 Shekshnia, S., 232 Sheldon, P., 269 Shen, J., 224 Shields, J., 230 Shire, K., 174 Shortland, S., 221, 233, 247 Siegel, D., 276 Siemens AG, 83 Sinangil, H.K., 220 Singapore, Singh, H., 177 Single European Market (SEM) programme, 57 Sippola, A., 114, 119, 120 Sippola, M., 38 Sisson, K., 48, 94 Sklair, L., Slomp, H., 260 Smale, A., 114, 115, 117, 119 Smith, C., 11, 21, 37, 39, 61, 129, 131 Solemn Declaration, 55 Sony Corporation, 86 Sorge, A., 19, 113–15 Soskice, D., 19, 20, 29, 30, 32 South Africa, 297 South African Development Community (SADC), 49, 50 Z01_REES4105_03_SE_IDX.indd 327 South Asian Association for Regional Cooperation (SAARC), 49, 50 Spain, 296 Sparrow, P., 17, 19, 111, 236 Sri Lanka, 297 Stahl, G., 114, 147, 154, 158, 164 Stahl, G.K., 158, 196, 198 Standing, G., Statoil ASA, 84 Steers, R.M., 191 Steger, M., Stein, J., Steinmetz, L.L., 223 Stiglitz, J., 5, 9, 12 Stiles, P., 232 Stogdill, R.M., 191 Stone, D.L., 111 StoreCo, 268 Storey, J., 269 Streeck, W., 21, 130 Strickland, K., 199 Stroh, L.K., 190 Stroleny, A., 173 strong globalists, strong globalization thesis, 8, 10 subsidiary managers, 37 Sugden, R., 72, 73 Sumelius, J., 114, 115 Sumitomo Corporation, 85 supra-national regional structures, 32 Susomrith, P., 181, 182 Suutari, V., 191, 198, 241, 245 Swanson, D.L., 280 Sweden co-ordinated market economies (CMEs), 20 Nordic model, 47 Szikra, D., 62 Szulanski, G., 105 T Tarique, I., 197 Tayeb, M., 17, 265 Taylor, B., 267 Taylor, P., 174, 179 Taylor, S., 104, 107, 111, 136, 222 Teague, P., 50, 262, 263 Teegen, H., 280 Teerikangas, S., 145 Telefonica SA, 84 Tempel, A., 93, 108, 132 Teo, S.T.T., 219 Terpan, F., 59 Tesco PLC, 86 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com 328 Index Teva Pharmaceutical Industries Limited, 87 Thelen, K., 21, 32 third country nationals (TCNs), 230 Third Part Act 2004, 261 Thite, M., 190 Thomas, D.C., 192 Thomas, R.R., 221 Thompson, P., 16–18, 21, 22, 80 Thory, K., 108, 132 Threlfall, M., 51 Tienari, J., 148, 155 Tierney, A., 172, 174, 181–3 Tihanyi, L., 197 TNCs see truly transnational corporations (TNCs) Toh, S.M., 245, 246 Tomlinson, J., 225 Tornikoski, C., 241, 245 Total SA, 82 Townsend, A., 198 Townsend, A.M., 236 Toyota, 130 Toyota Motor Corporation, 82 trade unions application, 55–6 bargaining power of, 173 domestically based actors, 80 employers associations, 127 enforcement, 55 power of, rights to, 15 transposition, 55 Transco, 118–19 transnational companies, 10, 22 transnational solution, 13 transposition, trade unions, 55 Triad, 75, 81, 106 Trubek, D.M., 59 Trubek, L.G., 59 truly transnational corporations (TNCs), TRW Inc., 201–2 Tsoukalis, L., 59 Turner, T., 134 Tyson, S., 112 Tzeng, R., 223 U UAE, 296 UEAPYME, 58 Ulrich, D., 114, 184 UNCTAD, 9, 10, 12 Unilever, 183–4 Unilever PLC, 85 Z01_REES4105_03_SE_IDX.indd 328 Union of South American Nations (USAN), 49 United Kingdom (UK) financial participation and performance, 234 foreign-born workers in, 305 HRM, 179 liberal market economies (LMEs), 20, 48, 54 migrants, 296 voluntarist systems, 259 United Nations (UN) globalization, 12 migrant, 295 MNCs, 74 United Nations Centre on Transnational Corporations, 12 United States contemporary globalization, co-ordinated market economies, 20, 30 employee voice, 255 institutions and strategic choice, 175 liberal market economies (LMEs), 20 migrants, 296, 297 potential economic rivals, technology company in, 159 United Technologies Corporation, 86 US Industrial, 158, 160 V Vaara, E., 148, 155 Vale SA, 85 value chain linkages, 106 Vance, C.M., 221 van der Meer, M., 135 Van de Ven, A.H., 105 van het Kaar, R., 237 Van Rie, T., 56 Vantrappen, H., 190 van Tulder, R., 80 van Wanrooy, B., 260 Vargas-Silva, 297 Varul, M., 132, 134 Vattenfall AB, 85 Vaughan-Whitehead, D., 53, 54 Vendotel, 179–80 Vernon, G., 237 Vincent, S., 180 Visser, J., 51, 53, 62 Vodafone Group Plc, 82 Voigt, A., 158 Volkswagen Group, 82 Volvo AB, 86 Von Glinow, M., 266 Vrangbaek, K., 172 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com Index W Wachter, H., 37 Waddington, J., 258 wages determination, 31 and employment, 303–4 Wagner, I., 175, 178 Wailes, N., 259 Waldinger, R., 297, 307 Wall Street Journal, The, Wal-Mart Stores Inc., 83 Walsh, J.S., 221, 222 Wang, J., 266 Wang, X., 117 Wang, Y., 268 Warner, M., 266, 267 Watson, P., 52 Weil, D., 174 Weiss, L., 15 Weiss, M., 256 Welch, D., 110, 120, 210 Welch, D.E., 114 Welch, L.S., 114 Weston, S., 94, 128 Wever, K., 260 Wheeler, H., 259 Whitley, R., 19, 29, 97, 98, 131, 232 Whittall, M., 263 Whittington, R., 97, 147, 154 Wiedersheim-Paul, F., 81 Wilkinson, A., 253 Wilkinson, B., 78, 130, 135 Williamson, D., 279 Williamson, O., 72, 78, 134 Williamson, O.E., 170 Williams, S., 4–7, 12 Wimborne, S., 200 Wolf, J., 115 Wolf, M., Z01_REES4105_03_SE_IDX.indd 329 329 Wood, G., 232, 265, 266 Wooldridge, A., 224 work design, 176 Works Constitution Act 2001, 261 works council company-level, 261 German, 262 legislation, 151 and trade unions, 182 World Bank, 233, 301, 303 world-class quality assurance, 107 World Commission on Environment and Development (WCED), 277 World Trade Organization (WTO), 5, 50 Wortley, D., 200 WPP PLC, 87 Wright, P., 118, 120 Y Yanadori, Y., 238, 239 Yang, B., 266 Yang, J.Z., 111 Yan, M., 184 Yaziji, M., 280 Young, R., 293, 301 Yu, K-H., 299 Yu, K H., 180 Yukl, D., 191, 192 Z Zagelmeyer, S., 264, 270 Zander, L., 199 Zeitlin, J., 13, 96 Zhang, M., 126, 128 Zhao, W., 267 Zhu, C.J., 118 Zhu, C J., 128 Zhu, J., 38 Zou, H., 158 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com Z01_REES4105_03_SE_IDX.indd 330 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com Z01_REES4105_03_SE_IDX.indd 331 10/05/1938 SAKA 9:27 pm Find more at www.downloadslide.com Z01_REES4105_03_SE_IDX.indd 332 10/05/1938 SAKA 9:27 pm ... Introduction Tony Edwards and Chris Rees xvii Part 1 The Context for International HRM Chapter Globalization, national systems and multinational companies Chris Rees and Tony Edwards Chapter National. .. for International HRM 1 Globalization, national systems and multinational companies Chris Rees and Tony Edwards Key aims3 Introduction3 The nature of contemporary globalization Debating globalization ... in the international economy, and in the nature of work and management across different nations and regions International HRM operates within this dynamic context, and international human resource