David Faulkner

Foreign Direct Investment in the UK 1985–1994: The Impact on Domestic Management Practice

Foreign direct investment (FDI) into the UK has grown considerably in recent years. US, French, German and Japanese companies have generally accounted for the largest share of this FDI. In addition to greenfield and expansion investment, a major vehicle for inward FDI has been the acquisition of UKcompanies. This paper examines whether nationally distinct approaches to management were introduced, following acquisition, among a sample of 201 UK subsidiaries of French, German, Japanese,US and UK companies. It provides data on the extent of changes and the post-acquisition influence of the new parent, comparing changes between the four foreign nationalities and a UK control group. The study indicates that the process of being acquired and controlled by a foreign parent company was often followed by significant changes in management practice. Some changes were common to all acquisitions, including those by UK companies. A shift towards performance-related rewards and a stronger quality emphasis in operations are two examples. In addition, there was also evidence of effects which differed between nationalities. These conformed to accepted characterizations of national management practice in the case of Japanese and US acquirers, but less so in the case of French and German acquisitions. The findings suggest that present views of French and German management practice require further investigation.

International mergers and acquisitions in the UK 1985-94: a comparison of national HRM practices

The paper investigates HRM practices adopted by companies from the USA, Japan, Germany and France in UK companies that they have acquired. UK/UK acquisitions are used as a control. The research is based on a survey instrument applied to 201 companies and interviews with forty. It notes that there is some convergence of HRM practices, in that, for example, all countries researched employ performance-related pay and increase the amount of training in their new subsidiaries. It finds, however, that there is a distinct difference in the HRM practices employed by companies from each of the countries, influenced by the characteristic HR practices common to companies in the country of origin of the parent.

Changes in Management Practice and the Post-Acquisition Performance Achieved by Direct Investors in the UK

Changes in the competitive performance of 201 UK firms acquired by foreign investors are examined. Performance improvement was found to be associated with the introduction of changes to management practice rather than with contextual factors such as acquirer nationality, size, date of acquisition, profitability of subsidiary at acquisition or sector. The changes having most impact were increased efforts to improve the market image of the acquired company, the development of new products and services, and moves towards involving and developing staff. There appears to be more than one path towards post-acquisition performance improvement, with distinctions emerging between Anglo-American, Japanese and, to a lesser extent, French approaches. The successful Anglo-American approach involves a product innovation strategy, increased decentralization and improved training. High-performing Japanese acquisitions tend to emphasize a price-competitive strategy, to increase centralization and to adopt a longer-term HRM policy. The French path towards good post-acquisition performance includes increased cost control, more open communication and decentralization. The general conclusion of the investigation is that foreign acquisition can harness the assets and competencies of UK companies to good effect, but that there is more than one way of achieving this result.

The new shape of probation in England and Wales: Values and opportunities in a changing context

This article considers the changes in criminal justice, and in public services more generally, which might follow the re-construction of the British government in the summer of 2007; and the opportunities which those changes might provide for developments in probation and in community justice. It argues that existing assumptions and attitudes could now be re-shaped to provide an approach which is more rational and principled, and no longer hampered by a sense of perpetual turmoil and crisis. Such an approach would emphasize issues such as accountability, relationships, professional values and leadership, and the responsibilities of communities and citizens. It might also be more successful in increasing public confidence, in criminal justice and more generally, and in resolving the wider problems associated with crime and criminality.

Organisational change processes in international acquisitions

Following the previous chapter’s discussion of how acquiring companies for the USA, Japan, Germany and France integrated their U.K. acquisitions with regard to the overall level of integration attempted and achieved, control, communication and strategic philosophy, this chapter discusses the organisational change mechanisms adopted in order to achieve this integration. The previous chapter gives details on the methodology adopted for the research and the criteria for the choice of sample. The codes for the companies (e.g. US04) follow those laid out in Tables 1–4 (pp. 37–38).

Public Service Values: Leadership in the 21st Century

This article reflects on the leadership and management of public services, at a time of political and professional appraisal and the appointment of a new prime minister in the UK. It argues that this is a moment of opportunity for leaders of public services and professions, and that they should now impose themselves more firmly on the debate.