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(BQ) Part 2 book International human resource management has contents: Outsourcing and human resource management, international leadership development; recruitment and selection of international managers; international pay and compensation; international and comparative employee voice.
Find more at www.downloadslide.com Chapter Cross-border mergers and acquisitions Tony Edwards and Chris Rees Key aims The aims of this chapter are to: ● examine the pressures on firms to integrate HR policies in the two parties to the merger, focusing on the role of the nationality of the parent firm in shaping this process; ● consider the features of host countries which influence the nature of restructuring in the post-merger period; ● highlight the ‘political’ dimension to cross-border M&As, including the role of a range of groups within a firm who will seek to influence the character of the new firm; ● establish the challenges that firms face in learning from acquired operations Introduction Cross-border mergers and acquisitions (M&As) are of particular concern to those interested in IHRM The process of merging two firms, whether they be from different countries or not, raises a number of HR issues: the details of the merger and its likely implications for employees must be communicated; management must decide on the extent to which they will seek to integrate pay and benefit policies; and the employment consequences of the restructuring that follows most mergers must be confronted (e.g Teerikangas et al 2014) The way in which these issues are handled, and the quality of leadership in particular, are important in shaping the fortunes of firms that have gone through international M&As (Gill 2012) The impact of a merger or acquisition, particularly the nature of restructuring, depends in large part on the rationale for it and the context in which it takes place For example, a merger based on adverse trading conditions, over-capacity and the desire to cut costs is much more likely to lead to large-scale redundancies than one based on an expansion into new markets (Aguilera and Dencker 2004) The impact of cross-border M&As is also likely to be strongly shaped by national effects These national effects show up in two ways; first, in terms of the orientation of the parent or larger firm in the merger, something we have termed the ‘country-of-origin’ effect in earlier chapters; and, second, the way that HR issues are handled differently at national level, or ‘host-country effects’ We consider both aspects of these national effects in this chapter M07_REES4105_03_SE_C07.indd 145 08/05/1938 SAKA 8:11 pm Find more at www.downloadslide.com 146 Part / MNCs and International HRM The 1990s witnessed a boom in cross-border M&As, with their value increasing from $150 billion in 1990 to more than $1,000 billion in 2007 Rather than being a steady rise, the value of cross-border M&As has been highly cyclical with sharp rises in the late 1990s of very nearly 50 per cent per annum, a subsequent fall in the first few years of the millennium, sharp rises again between 2004 and 2007, before a subsequent fall in the years that followed to $348 billion in 2013 (United Nations 2015) (Figure 7.1) The peak prior to the financial crisis of 2008 was a period in which there were a string of very large deals, including the famous – or notorious perhaps, given subsequent events – acquisition of ABN-AMRO by a consortium led by the Royal Bank of Scotland (RBS) In the year 2007 alone, there were 96 cross-border mergers which were valued at more than $3 billion Thus cross-border M&As have been one of the principal ways in which firms have reorganized themselves internationally Cross-border M&As can transform companies in terms of their scale, structure and geographical orientation A prime example is RBS, mentioned above, which acquired either partial stakes in, or full ownership of, banks in a number of countries in the 10 years or so prior to the ‘credit crunch’ of 2007–8 The aggressive expansion, particularly the purchases of companies near the peak of the stock market boom in 2007, was one factor in the company’s huge debts, leading to the UK government taking a majority stake to keep the company afloat RBS is not an isolated case in terms of the problems it encountered following overseas acquisitions Many sources of evidence testify to the poor financial performance that is experienced by firms that have engaged in a series of cross-border M&As (Habelian et al 2009) Moreover, a report by KPMG into cross-border M&As in Europe found that the majority of deals had failed to improve financial performance The report argued that ‘the process of entering into M&A transactions is often less than perfect, with key elements left too late and post-completion integration tackled haphazardly’ (KPMG 1999: 23) The greater likelihood of cultural differences between parties to a cross-border merger when compared with domestic mergers may bring more acute challenges that help explain this disappointing performance However, differences 1200 1000 800 600 400 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 200 Figure 7.1 The growth in cross-border mergers and acquisitions ($ billions) Source: UN (2015) World Investment Report M07_REES4105_03_SE_C07.indd 146 08/05/1938 SAKA 8:11 pm Find more at www.downloadslide.com 147 Chapter / Cross-border mergers and acquisitions between the parties may also bring greater potential for learning Stahl et al (2004: 90–2) argue that this may explain why, while cross-border M&As are associated with poor performance, they actually compare favourably with domestic M&As (see also Vaara et al 2012) The importance of cross-border M&As as drivers of corporate restructuring demands a close inspection of the processes involved Throughout we make use of our own empirical research into cross-border M&As to illustrate the points (Rees and Edwards 2003; Edwards et al 2008; Edwards and Edwards 2015) This has taken the form of a series of case studies looking at the handling of HR issues in the British arm of firms formed through a cross-border merger For reasons of confidentiality, the companies are often referred to with pseudonyms The national orientation of the parent in cross-border M&As One of the key issues facing a firm that has been created through a cross-border merger is the extent and process of integration between the two firms One pressure to integrate comes from the incentive to present a uniform face to global clients In some service industries, such as management consultancy, and in some manufacturing industries, such as automotive components, firms are selling principally to other MNCs that are requesting a service or product which has few differences across countries This necessitates the firm standardizing many aspects of its own operations, including HR issues such as work organization, training and service delivery In other cases, cross-border M&As are justified to shareholders on the basis that they will allow significant cost-cutting to take place This requires the merged firm to remove duplicate functions and shed excess capacity, another force towards integration A further reason why merged firms will look to integrate their HR policies across borders is that it will promote the mobility of staff across the company Standard pay scales and benefits policies, at least for managerial and professional workers, are one way of facilitating such mobility However, in earlier chapters we have noted a number of significant differences in the framework of employment relations across countries The distinctiveness of ‘national business systems’ shows up in a number of respects One aspect of this is in relation to managerial backgrounds In France and Germany, it is common for senior managers to have technical backgrounds, whereas in Britain and the USA, finance and accounting backgrounds dominate This has implications for the sort of control mechanisms adopted at firm level Historically, many large French and German firms have favoured a ‘functional’ corporate structure in which senior managers are involved in a range of technical and operational matters in the various units In contrast, most British and American firms have strongly favoured a ‘multi-divisional’ structure in which the HQ merely exercises financial controls over divisions which operate with devolved responsibilities (Mayer and Whittington 2002) A further difference between countries concerns the use by firms of ‘internal labour markets’ in which recruitment is to junior positions with more senior positions being largely filled from internal promotions: while this has been a common practice in Japan, in other countries, such as the UK, there is much greater recourse to the external labour market and, consequently, much greater inter-firm mobility of labour The laws and institutions that afford employees the right to be consulted about, and influence, decisions which affect their job security, pay prospects and the nature of their day-to-day work also differ markedly from country to country, with one contrast being between the M07_REES4105_03_SE_C07.indd 147 08/05/1938 SAKA 8:11 pm Find more at www.downloadslide.com 148 Part / MNCs and International HRM highly regulated and codified system of employee representation in Germany and the more deregulated American system One illustration of how national differences are evident in a firm formed through a cross-border merger is provided by Vaara et al (2003) in their study of the Scandinavian financial services group, Nordea The authors cite the views of managers within the organization and show how ‘national stereotypes’ were constructed and endured While these did not represent an ‘absolute truth’ concerning how people behaved, they did help those within the organization to make sense of why others behaved as they did Thus ‘according to these “strong” stereotypes, Swedes were frequently seen as consensus-driven, Finns as action-oriented, Danes as negotiating merchants and Norwegians as people who go straight to the point in decision-making’ (2003: 62) These national differences are central to understanding the competing pressures on firms as they acquire or merge with those in other countries The differences create pressure for national ‘differentiation’ of HR policies, for a company’s approach to be responsive to the peculiarities of national systems This is developed in the next sub-section National differences are also significant, however, for the way they shape the extent and nature of integration As we saw in Chapters 4, and 6, most international firms are embedded in their original country in a range of ways: finance is raised and ownership is concentrated predominantly at home; senior managerial positions are filled largely by nationals of the home country; the government in the country of origin often has close ties with, and influence over, large MNCs; and so on This embeddedness gives rise to a ‘country-of-origin effect’ in the way they manage their workforces Thus, we might expect this effect to inform the way that the dominant firm in a cross-border merger seeks to integrate its acquisition into the wider firm Indeed, the available evidence suggests that MNCs are significantly influenced by their original nationality in this respect One illustration is a study by Faulkner et al (2002) which examined acquisitions of British firms by foreign MNCs Over the period from 1985 to 1994, the researchers examined through a postal survey the nature of post-acquisition change in 201 cases, with the parent firms being American, Japanese, French and German While they found that there were some changes that appeared to occur whatever the nationality of the parent firm – most firms had sought to establish a clear link between pay and performance, for example – their findings also revealed significant differences by nationality in the handling of HR issues in the post-acquisition period, particularly in relation to recruitment, development and termination practice One of the clearest findings was the preference among American firms for formal and regular appraisals, with these being used to ensure good performance; consistently sub-standard performance could easily lead to ‘separations’ under such systems More generally, American firms exhibited a centralized, forceful and hands-on approach to integration, including an emphasis on trying to shape the culture of the acquired unit Japanese firms also exhibited some distinctive ways of integrating acquired firms: they were less likely to rotate managers between different tasks; they favoured seniority as an important criterion for promotion; and they took a slower, more considered approach to change than the Americans French acquirers also appeared to introduce some nationally specific practices in the post-acquisition period, such as emphasizing formal qualifications as criteria for promotion The authors also argued that there was a ‘glass ceiling’ for promotion for non-French managers German acquirers tended to emphasize technical expertise in recruiting, but generally they adopted a highly decentralized approach to decision-making on HR issues and, relatedly, attached less emphasis on using HRM in an integrative way M07_REES4105_03_SE_C07.indd 148 08/05/1938 SAKA 8:11 pm Find more at www.downloadslide.com Chapter / Cross-border mergers and acquisitions 149 Where the acquiring firm is clearly bigger than the acquired unit, this ‘country-of-origin effect’ seems to show through clearly However, what happens where the two parties to a merger are of a comparable size? In such cases, the orientation of the merged firm is less clear-cut This is a significant issue because in the last two decades a number of cross-border mergers have involved broadly similar-sized firms, creating what has been termed ‘bi-national’ firms Bi-nationals are so called because the merger results in them having strong roots in two rather than one business system This shows up in a number of ways In terms of the ownership of merged firms, the overwhelming focus on one financial system that is characteristic of most MNCs is strongly eroded The roots that bi-national firms have in two systems also show up in the cosmopolitan nature of the management board It is common for a board in a firm formed through an agreed merger to be comprised of proportionate numbers of managers from each party to the merger For example, with the creation of Astra-Zeneca, the top four managerial positions were divided up between two Britons and two Swedes The international expansion of formerly state-owned companies has reduced a further source of national influence from the parent, namely, that of the state France Telecom, for example, has undertaken a string of acquisitions overseas, funded by raising finance on the financial markets in France and elsewhere, thereby reducing its ties with the French state; in 2013, this led to a formal re-branding of the whole group with the firm taking the name Orange, which was the name of the mobile operator it had acquired in 2000 (Financial Times 2013) More generally, the wave of cross-border M&As in the late 1990s was one force towards the increased international spread of MNCs, something that is picked up in the growth of the UN ‘Transnationality Index’ (see Chapter 4) In the case of bi-nationals which are created through cross-border M&As, is it possible to predict how the management of people will be handled? In particular, are there likely to be discernible national effects? Three possibilities exist First, two national management styles may continue to be evident some time after the merger with full integration between the two parties to the merger being weak If quite different styles exist, there may be tensions between the two Second, an integrated style may emerge following the merger which is a hybrid of the two styles Third, an integrated style may also emerge based on one of the styles characteristic of one of the two firms The case study of HealthCo in Box 7.1 shows how all three of these possible scenarios can be evident in a bi-national firm Box 7.1 Case study: HealthCo The pharmaceuticals and health-care sector witnessed a number of mergers in the late 1990s One of these brought together a British company with one which was predominantly American, forming a new group that has very strong bases in the UK and in the USA, as well as a notable presence in a number of others The firm is officially registered as a British company, but has a split stock market listing in the UK and America, an HQ that is split across the two countries, and has a mix of nationalities on the company’s management board – Americans and Britons comprise almost equal numbers, while other nationalities are represented too The firm is therefore an excellent one in which to investigate the way in which a company formed through a cross-border merger has a detectable country of origin effect Is it possible to detect particular national influences over the management style of HealthCo ➨ M07_REES4105_03_SE_C07.indd 149 08/05/1938 SAKA 8:11 pm Find more at www.downloadslide.com 150 Part / MNCs and International HRM or is this a cosmopolitan, globally influenced firm? If the former, does the British or American influence show up more strongly? The evidence from nearly 40 interviews in HealthCo suggests that it has been strongly influenced by the American system, something that shows up in a number of respects First, the firm has a number of global HR policies on issues such as performance-related pay The influence of the centre was much more marked in the predominantly American party to the merger than in its British counterpart, which was described as being like an ‘absentee parent’ by a number of Americans A relatively centralized approach to decision-making on HR issues is a characteristic feature of American MNCs more generally (see Ferner et al 2004) Second, in the manufacturing side of the business, all of the sites were required to introduce a process known as ‘Lean Sigma’, which is a way of identifying waste and potential economies in the organization of production An American firm of consultants led the introduction of this Third, since the merger, the firm has introduced a new policy on the length of time that ‘contingent’, or temporary, workers can be employed continuously Responding to a legal ruling in America, the firm imposed an 18-month maximum time limit on the use of such workers in America and Britain, even though the law in the United Kingfom is different Fourth, in relation to ‘diversity’, the American operations are clearly perceived as being more advanced than those in other countries and have served as the model on which practices in other countries have been developed, such as ‘diverse marketing teams’ In short, the merger has created a firm with no clear-cut national ‘centre of gravity’, but one that is shifting towards America The interviews demonstrate that this shift appears to be partly explained by the attractions of the United States to senior managers, such as the widespread perception of it as a fast-moving, dynamic system and one that is ‘more advanced’ in some areas such as diversity One manager summed up this influence: ‘All our competitors, or the majority of our competitors, are in the States So, you know, 70% of our competition is in the United States, so role models of how people behave in our industry almost seem very influenced by the US.’ However, the influence of the HQ, which we have argued is distinctively American, is of course mediated by the dominant features of the various host country systems that the firm operates within For example, the pace at which restructuring has taken place has been swifter with less consultation in the United Kingdom than in Germany, partly reflecting the legal requirements for negotiation with employee representatives The central influence was also constrained by country-level managers who were reluctant to give up their autonomy, something that was particularly marked in countries with operations belonging to the British party to the merger Source: Edwards et al (2006) Question: To what extent can the concept of ‘dominance’ effects help explain the direction the company took following the merger? The case study of HealthCo has demonstrated not only the influence of the business systems of the main parties to a cross-border merger but also the influence of host country systems in shaping the effects of a merger It is to this that we now turn Restructuring at national level and the legacy of distinctive national systems The regulation of M&As has some common aspects across countries This is particularly so within the EU where there is a common legal framework setting out a minimum set of employee rights during M&As This framework stems from the EU Acquired Rights Directive M07_REES4105_03_SE_C07.indd 150 08/05/1938 SAKA 8:11 pm Find more at www.downloadslide.com Chapter / Cross-border mergers and acquisitions 151 (77/187/EEC), which was subsequently revised, concerning the safeguarding of employees’ rights in the event of a transfer of ownership of companies In essence, the acquiring firm must respect most of the obligations that the acquired firm had towards its employees In particular, the Directive states that: ● terms and conditions existing in a collective agreement must be observed until such an agreement expires or is replaced with a new one; ● a transfer of ownership does not of itself constitute a justifiable reason for dismissals (though that does not mean that none will occur – they can take place for ‘economic, technical or organisational reasons’); ● the status of employee representatives should be preserved following a merger or acquisition; ● these representatives are entitled to be consulted as to the likely or planned economic and social implications of the transfer, with this consultation occurring ‘in good time’ before the transfer is carried out The Directive has been implemented into national law in all EU member states, with only limited variation at national level, and is a requirement for new ‘accession’ countries Thus, where M&As bring together firms from different EU countries, there is to some extent a common legal framework governing the process Despite this EU-wide framework, there are marked differences in the extent of regulation across EU countries since some have additional provisions concerning employee participation in M&As (see EIRO 2001) In the Netherlands, for example, there are a number of institutional means through which employees’ rights are protected, notably through the ‘Merger Code’ and the Works Council legislation These require that management in the companies involved in a merger inform both sets of works council representatives and also inform union representatives Management must provide the works council with information concerning the likely impact of the merger, provide a justification of its decision, and show that it has taken account of workers’ interests Crucially, works councils have the right to seek external expert assistance and can challenge management’s proposals; if they so, then the proposals must be postponed for a month, during which time the works council can go to a Labour Court to challenge the decision If this court feels that management have not done enough to safeguard employees’ interests, it can prevent management’s plans being implemented In addition, a merged firm wishing to make redundancies must get the approval of a ‘District Employment Services Authority’, and the firm’s Supervisory Board must approve any major changes involved in post-merger restructuring Even after the recent revisions to the ‘Merger Code’, which have marginally weakened the position of unions and works councils in the target company and made hostile takeovers slightly easier, it is clear that Dutch workers enjoy significant legal and institutional protection during M&As In Spain, there are also national-level provisions safeguarding employees’ rights, though these are not as strong as those in the Netherlands Spanish firms are obliged to consult with both works councils and trade unionists In particular, the ‘Workers’ Statute’ gives employee representatives the right to be consulted on the same basis as shareholders; since shareholders must be informed in writing at least one month before a general shareholders meeting at which the merger proposals are to be discussed, so workers must be informed at the same time M07_REES4105_03_SE_C07.indd 151 08/05/1938 SAKA 8:11 pm Find more at www.downloadslide.com 152 Part / MNCs and International HRM Moreover, where a merger or acquisition involves ‘any incidence that affects the volume of employment’, worker representatives must be given at least 15 days to issue a report containing their views, and this must be received and considered by management before a merger is consummated, though they are not obliged to implement its proposals However, while worker representatives not have the power to block or even delay job losses involved in a merger, where collective redundancies of roughly 10 per cent of the workforce are not agreed by worker representatives and management, the plans must go for approval to a ‘labour authority’ at either local, regional or national level, whichever is most appropriate In the United Kingdom, by contrast, the ability of employees to influence the merger process is weaker and the framework protecting employees’ rights is more minimalist The European Directives were transposed into UK law through the Transfer of Undertakings (Protection of Employment) Regulations (1981), known as TUPE This Act, which has been subsequently amended to comply with the new European Directive, gives employees the basic rights of consultation that exist across the EU In addition, legislation on collective redundancies also gives employees the right to be consulted 90 days before any such redundancies are made However, beyond these provisions, any influence that employees possess stems from their bargaining power in relation to their employer, either in an organized way through the influence of unions or through their possession of skills which mean they are of value to their employer In essence, therefore, managers have a freer hand in the United Kingdom to make changes following a merger than they in most European countries Differences in the regulation of M&As within the EU are even greater when compared with other countries, such as those in North America and Asia Variations in legal frameworks are only one element, of course, of wider differences in systems of employment relations These differences encourage the decentralization of decision-making on HR issues in firms formed through a cross-border merger In other words, ‘host-country effects’ significantly shape the handling of HR issues The importance of these national-level institutions and regulations shows up in a recent study of Franco-German mergers Corteel and Le Blanc (2001) argued that ‘social issues’ – by which they mean pay, working time, holidays, pensions and so on – are governed by a national logic, and that these are ‘lastingly rooted at national level’ Thus, in the companies they examined, the differences between the French and German operations in terms of pay, benefits and working time arrangements that existed prior to the merger continued to exist following the merger Managers had not sought to integrate practices in this area, principally because they recognized the importance of national-level regulations and the strength of the ‘social partners’ in the two countries Our own research confirms this picture (Rees and Edwards 2003) Interviews with HR managers in the British arm of 12 firms which were involved in a cross-border merger or acquisition (of which HealthCo was one) highlighted how remuneration was strongly conditioned by national-level factors Pay and benefits were clearly one of the areas where differences in practices become immediately apparent following a merger The MNCs had a strong incentive to integrate these policies, particularly where they wanted employees to be geographically mobile However, a key constraint on managers was that integration would only be readily accepted by employees if it took the form of ‘upward harmonization’ Thus, host-country effects led to the creation of a ‘patchwork quilt’ of various sets of pay and conditions across borders (ibid.) M07_REES4105_03_SE_C07.indd 152 08/05/1938 SAKA 8:11 pm Find more at www.downloadslide.com Chapter / Cross-border mergers and acquisitions 153 The difficulties in integrating remuneration policies across sites in different countries also exist, albeit to a lesser degree, between sites within countries The TUPE regulations in the UK, and the role of unions in securing collective agreements in many organizations, mean that levels of pay and benefits continue to differ across sites that formerly belonged to different firms An IT services company in our research, which had taken on groups of workers gradually from a range of other firms through the subcontracting of their IT functions, had 27 sets of terms and conditions in its British operations at the time of our research In a French industrial firm, managers were quite clear that, while they would like pay levels to be similar across their operations in France, there was little prospect of employee representatives agreeing to this Thus, the ‘patchwork quilt’ existed within as well as between countries The way in which cost savings are made is also something which is strongly shaped by host-country effects As we indicated above, many cross-border mergers are motivated by a desire to reduce costs through removing duplicate functions and concentrating activities in particular locations However, the ease with which plants can be closed and employees made redundant differs across countries Corteel and Le Blanc (2001) present a fascinating case which demonstrates this, namely the merger between the German-owned Quante and the French firm Pouyet Following this merger, the IG Metall union in Germany and the unions in France were successful in preventing any cutbacks leading to compulsory lay-offs in France or Germany However, the firm did close a plant in the UK, where workers did not have the same legal protection For Corteel and Le Blanc, ‘It is reasonable to argue that . . . a logic aiming at preserving national employment levels to the detriment of employees located on other territories prevailed.’ National logics not only constrain how management carry out restructuring following international M&As; they also shape the way that employees perceive this restructuring This was the focus of Edwards and Edwards’ (2015) study of two US MNCs merging with one another in which employees in Sweden, the Netherlands and the United Kingdom were surveyed The focus of the analysis was on employee perceptions of voice and representation, for which there are marked institutional differences across the countries, as we have seen Employees in Sweden perceived voice and representation to be weaker and less effective than did their counterparts in the Netherlands and the UK, a finding which held across time Interestingly, therefore, the country with the strongest traditions concerning employee voice and representation was the one with the most negative employee perceptions This apparent paradox was explained as a result of the norms concerning employee influence differing across the three countries and the practice of a centralized US MNC not allowing very much employee influence over the key elements of restructuring; in other words, it was the result of the greater gap in Sweden compared with the other two countries between the institutionally conditioned expectations on these issues and the reality The implication of this body of work concerning the restructuring across national distinct systems is that groups of employees will perceive things differently and that a variety of actors are able to shape the restructuring process which follows a cross-border merger It is not simply the product of systematic planning by senior management, nor is restructuring simply the result of a rational trade-off between the advantages of integrating policies across borders, on the one hand, versus differentiating policies to national level, on the other Rather, it is a highly political process in which a variety of groups look to defend or advance their own interests and use whatever sources of power they control to so We now consider this political dimension in more detail M07_REES4105_03_SE_C07.indd 153 08/05/1938 SAKA 8:11 pm Find more at www.downloadslide.com 154 Part / MNCs and International HRM The political dimension to cross-border M&As Much of the writing on M&As, in general, and cross-border M&As, in particular, stresses the importance of managers following plans, guidelines and checklists if they are to make a merger a success For instance, Schuler et al (2003) provide a series of guidelines for HR practitioners to follow, such as ‘state-of-the-art HR policies and practices should be used’ (2003: 70) Similarly, Stahl et al (2004) identify a number of HR issues that have to be confronted in a cross-border merger, such as assessing culture in the due diligence phase’ and ‘undertaking a human capital audit’ While such guidelines may to some extent be useful to practitioners, we feel that it is crucial that the potential for conflict is more fully recognized than is often the case In this section we emphasize the internal disputes that arise within MNCs concerning the nature of integration and restructuring in the post-merger period Mergers and acquisitions, whether domestic or cross-border, are a time when organizational structures and styles are ‘unfrozen’ and new ones are created As Meyer and LiebDoczy (2003: 479) put it, ‘managers ought to be aware of the evolutionary processes within the firm’ following a cross-border M&A During this process, there are many individuals and groups within the organizations concerned, who will look to defend or advance their own interests A merger is a time when a lot is ‘up for grabs’: the structure of the merged firm must be determined; key positions need to be filled; the units that are to close or suffer the deepest cuts have to be identified; and so on While the forces of competition and the demands of the financial markets mean that there are external demands that pressurize companies into prioritizing certain outcomes, the process of reaching the eventual course of action is a highly political one There is a range of organizational actors who possess some scope to influence the overall direction of the firm and, hence, this direction is not solely the product of a rational process of planning by senior managers responding to external pressures; it is also the product of a series of internal negotiations and compromises This perspective on organizations generally is well developed in the academic literature on strategy-making and organizational change What is sometimes referred to as the Processual approach to strategy (Whittington 2001) emphasizes the range of sources of power within organizations that exist, with these not solely residing with those actors at high points in the formal hierarchy Thus, writers such as Mintzberg are sceptical about the mainstream view that strategy-making is a rational and objective process Instead, they see strategies as emerging from a series of negotiations, compromises and ‘bodges’ As a consequence, the outcomes of strategy can include goals other than just the maximization of profits for the organization as a whole and can reflect such considerations as the desire of a powerful group to safeguard the future of the unit in which they work This political perspective helps us understand organizations of any sort, but seems essential to incorporate into an analysis of cross-border M&As This is partly because mergers are times when a range of issues will need to be resolved, as argued above, but also because cross-border M&As involve new operations in different business systems and the divergence of interests within such operations is likely to create fertile ground for political activity This perspective is also evident in the literature on MNCs, which are seen by some as ‘loosely coupled political systems’ (Forsgren 1990) The detailed case study work of Belanger et al (1999) into ABB is testament to the resources controlled by those in operating units of a large multinational On occasions, these resources can be used to obstruct M07_REES4105_03_SE_C07.indd 154 08/05/1938 SAKA 8:11 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 ... However, differences 120 0 1000 800 600 400 20 14 20 13 20 12 2011 20 10 20 09 20 08 20 07 20 06 20 05 20 04 20 03 20 02 2001 20 00 1999 1998 1997 1996 1995 1994 1993 19 92 1991 1990 20 0 Figure 7.1 The growth... References Aguilera, R and Dencker, J (20 04) ‘The role of human resource management in cross-border mergers and acquisitions’, International Journal of Human Resource Management, 15(8), 1355–70 Belanger,... Evans, P and Medenhall, M (20 04) Human resource management in cross-border mergers and acquisitions’, in Harzing, A and Van Ruysseveldt, J (eds) International Human Resource Management, London: Sage