HRM and IR in Multinational Corporations: Uneasy Bedfellows?

Steen E. Narvbjerg, Dana Minbaeva

    Research output: Working paperResearch

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    Abstract

    As multinational corporations operate in multiple countries, headquarters must take into account differences in local settings when seeking the means to coordinate and control subsidiaries. The local system of industrial relations sets the framework for what kind of human resource management a multinational corporation can implement. Yet another question is whether the still stronger multinationals can change the existing systems of industrial relations, directly or indirectly. The paper analyzes four Danish enterprises over a ten-year period. This longitudinal study shows that none of the multinationals directly try to interfere in local industrial relations. However, by exercising their management prerogative in a way that differs from the Northern European tradition of industrial relations, they do influence the cooperation between employers and employees. In particular, the results show that a shift from a stakeholder to a shareholder management style and the increased degree of HQ control have an effect on the whole cooperative atmosphere in each of the companies. In the long run, they may affect the collective bargaining system as such.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherCenter for Strategic Management and Globalization
    Number of pages29
    ISBN (Print)9788791815263
    Publication statusPublished - Mar 2008
    SeriesSMG Working Paper
    Number13/2008

    Keywords

    • Human resource management
    • Industrial relations
    • Multinational corporations

    Cite this

    Narvbjerg, S. E., & Minbaeva, D. (2008). HRM and IR in Multinational Corporations: Uneasy Bedfellows? Center for Strategic Management and Globalization. SMG Working Paper, No. 13/2008