Emerald | International Journal of Manpower | Table of Contents

The impact of the global financial crisis on managing employees

literatinetwork@emeraldinsight.com (Anthony McDonnell, John Burgess) — Fri, 07 Jun 2013 00:00:00 +0100

Abstract

Not available.

Between ‘Too Big to Fail’ and ‘Too Small to Matter’: The Borderless Financial Crisis and Unions

literatinetwork@emeraldinsight.com (Stéphane Le Queux, David Peetz) — Fri, 07 Jun 2013 00:00:00 +0100

Abstract

Purpose - to examine the nature of union responses to globalisation and, in particular, the global financial crisis; the consequences of the financial crisis for workers; and lessons from the experience. Design/methodology/approach - We examined numerous union statements, declarations, reports and actions as well as extensive documentary evidence from other sources. The focus was on the behaviour of supranational trade unions, including the European Trade Union Confederation, the International Trade Union Confederation and Global Unions.Findings - The supranational unions’ methods gradually shifted in the 2000s from reliance on institutional politics to collaboration with broader alter-globalisation protest movements, though this carried risks. The global financial crisis appeared to be a strategic opportunity for trade unions, but while they developed sophisticated policy packages, they were unable to change the behaviour of global institutions. This accentuated the shift in union strategy. Governments initially set aside free market ideology for stimulus packages, but failed to regulate to prevent future crises. Workers bore the brunt of the crisis. The experience highlighted the contradictions facing unions dealing with global issues.Practical implications - The outcomes of crises depend on the actions, strategies and prior strengths of the parties. Different outcomes emerged from prior crises and may emerge from future ones. Originality/value - Few studies have examined the role of supranational unions in the context of the financial crisis. A clearer understanding of the weaknesses of and impediments to supranational union responses may increase the likelihood that future crises will be better understood and be followed by more effective responses.

Weathering the storm? Multinational companies and human resource management through the global financial crisis

Fri, 07 Jun 2013 00:00:00 +0100

Abstract

Purpose - This paper examines the impact of the global financial crisis on human resource management (HRM) in multinational companies (MNCs) in Ireland. It focuses on four key areas of HR, namely staffing, pay and benefits, industrial relations and the HR function.Design/methodology/approach - It uses a mixed methods approach involving four major data sources combining objective information reported on the impact of the GFC on HRM with subjective perspectives on HRM practice within MNCs.Findings - Specific findings are presented in regard to staffing, pay and benefits, industrial relations and role of HR function. We find extensive evidence to indicate that MNCs have been in the vanguard of organisations engaging in multidimensional restructuring programmes in response to the GFC, incorporating many initiatives in the domain of HRM. These include job cuts, short term working, reduction in training and development expenditure, pay cuts and freezes, reduced benefits and changes in industrial relations. While we find that HR function has played a central key role in ‘delivering’ responses to the GFC within MNCs, we also find evidence of a reorganisation of, and financial pressure on, the HR function itself. Originality/value - This paper contributes to and develops the extant literature on the impact of economic crisis on human resource management

Tackling the Crisis through Concession Bargaining: Evidence from Five German Companies

literatinetwork@emeraldinsight.com (Stefan Zagelmeyer) — Fri, 07 Jun 2013 00:00:00 +0100

Abstract

Purpose - This paper presents an analysis of the nature and drivers of company-level concession bargaining during the financial crisis 2008-10 in Germany.Design/methodology/approach - The paper is based on five company case studies. Data collection methods include document analysis and semi-structured interviews. Findings - Using the five cases, it was possible to identify different ways in which companies were affected by the financial crisis itself, by various company-level adjustment strategies, and by various implications of the crisis and the collective agreements resulting from it. We found that company-level social partners, supported by public policies, were able to avoid redundancies and keep employees in work, while helping the company to survivePractical implications - The findings show that social partners at company level are able to agree on cooperative solutions to reduce labour costs in order to ensure the company’s viability. Originality/value - The findings are important for understanding key aspects of the German ‘job miracle’ both during and after the global financial crisis.

The impact of the Global Financial Crisis on employee participation – Two German case studies

literatinetwork@emeraldinsight.com (Olaf Kranz, Thomas Steger) — Fri, 07 Jun 2013 00:00:00 +0100

Abstract

Purpose - The article aims to explore the link between corporate crises and decisions about employee participation in the context of the Global Financial Crisis (GFC).Design/methodology/approach - We complement Weick’s sensemaking perspective (2010) with some distinctions taken from social systems theory. The paper examines the influence of a communicated corporate crisis on decisions regarding employee participation in two German companies over a two-year period immediately following the outbreak of the GFC.Findings - The meaning of a communicated and enacted corporate crisis sets a company in a state of alert and provokes some distinctive reactions. These include an accentuation of a traditional hierarchical style of decision-making and an authoritarian leadership style, some distinctive key personnel changes, and a strong orientation towards senior management. Any reforms of immaterial employee participation are rejected and the institutions that represent employees engage in a passive co-management.Practical implications - Our findings highlight the importance for companies to introduce a formal crisis management system before a crisis occurs, which provides the chance to safeguard a balance of centralization and decentralization in the decision-making process during crises.Originality/value - The study offers some novel insights about the meaning of crisis and of employee participation as well as about how these meanings affect decision-making processes.

Flexibility and Crisis Resistance: Quantitative Evidence for German Establishments

literatinetwork@emeraldinsight.com (Stefan Zagelmeyer) — Fri, 07 Jun 2013 00:00:00 +0100

Abstract

Purpose - The research question of this paper is: To what extent does (labour) flexibility contribute to crisis resistance at establishment level? More specifically, we analyse the determinants of variation in the extent to which establishments showed resistance to the global financial crisis (GFC), i.e. the extent to which they were affected by the crisis, focusing on an available secondary data-set related to organizational, industry-level, and (numerical) labour flexibility.Design/methodology/approach - Based on a unique cross-sectional dataset of 8,000 establishments in Germany, we use binary logistic regression to assess the link between organizational characteristics, industry-specific factors and workforce characteristics, and the fact that some establishments were affected by the GFC while others were not affected.Findings - Establishment size, being located in western Germany, and business problems before the crisis were positively associated with being affected by the crisis. The sector of economic activity also played a significant role. Contrary to predictions relating to the strategies employed by flexible firms, the extent to which they made use of temporary agency workers or of fixed-term employees showed no significant association with crisis resistance.Practical implications - The dependent variable measures the management respondent’s (subjective) perception of being affected by the crisis, although it does not specify the ways in which a company has been affected, for example by a drop in demand or by difficulty in extending credit. The set of independent variables permits several tentative conclusions regarding numerical and functional flexibility, but it does not take alternative forms of flexibility into account. Originality/value - Using a unique and representative dataset, the findings suggest a less important role for numerical flexibility in establishment performance and crisis resistance when compared to other variables, at least within our research framework and its exceptional external economic circumstances.