Employee participation in multinational enterprises

Abstract

The internationalisation of enterprises is expected to undermine national systems of employee representation. This paper assesses the extent to which this expectation can be confirmed. Using a survey of Dutch works councils, we compare national, Dutch multinational and foreign multinational firms. Using another survey, we then assess the role of European works councils within Dutch MNEs. The results of the first survey show that the influence of works councils in multinational firms, especially with respect to strategic policy, but also, to a lesser extent, regarding organisational and personnel issues is decreasing. From the second survey, we learn that European works councils have so far not compensated for this decrease in influence. We conclude that the undermining of employee representation at the national level can only be counteracted by a combination of further regulations at the European level, a change in (top) management attitudes in European MNEs and the close co‐operation of employee representatives within the respective countries and at the different levels.

Employee voice and work engagement: Macro, meso, and micro-level drivers of convergence?

“…As multinational corporations (MNCs) expand globally, the implementation of standardized 'best practices' for employee voice embedding Western values in different cultural contexts has been increasing (Pudelko & Harzing, 2007). In particular, direct, individual-level voice practices have been found to be preferred by these MNCs to avoid involvement in local institutionalized collective voice processes with which they are unfamiliar (Looise & Drucker, 2002). However, such convergence of best practice across countries is challenging due to cultural constraints (Marchington & Grugulis, 2000;Rowley & Benson, 2002).…”

Context is key: A 34‐country analysis investigating how similar HRM systems emerge from similar contexts

“…This means MNEs are continuously confronted with the tension between global standardization and adjusting practices to the specific needs of the host country (national differentiation; Edwards et al, 2016). By contrast, indigenous companies are embedded in the national context, making them more bound by specific institutional arrangements (Looise & Drucker, 2002). Studies like that of Ahmad et al (2019) highlight significant differences in the adoption of practices such as extensive training, performance appraisals, and performance-related pay among organizations in Pakistan.…”

European Works Councils: Their Impact on the Europeanization of Industrial Relations in an Era of Market Globalism

“…Regarding the implications of globalization on human resources and employee relations, it has been noticed that they include two stages: (a) Businesses begin to orientate to strategic HR Management (without changes in the IR system); (b) companies promote industrial restructuring and work flexibility by adopting several reforms in the IR system (Looise and Drucker 2002).…”