Tony Royle

Talent on demand?: Talent management in the German and Irish subsidiaries of a US multinational corporation

Purpose – As the interest in talent management (TM) gathers momentum, this paper aims to unravel how talent is managed in multinational corporations, what factors mediate the talent management process and what computerised systems may contribute to the management of talent.Design/methodology/approach – The study employs a single case study but multiple units of analysis approach to elucidate the factors pertaining to the transmission and use of talent management practices across the German and Irish subsidiaries of a US multinational corporation. Primary data for this study derive from a series of in‐depth interviews with key decision makers, which include managers at various levels in Germany, Ireland and The Netherlands.Findings – The findings suggest that the diffusion of, and success of, talent management practices is contingent on a combination of factors, including stakeholder involvement and top level support, micro‐political exchanges, and the integration of talent management with a global human r...

Avoidance Strategies and the German System of Co-Determination

This paper is based on a comparative study of the UK and German operations of the McDonald’s Corporation. The main focus of the paper is the interaction between multinational enterprises (MNEs) and the German system of co-determination. Commentators have suggested that industrial relations practices in host countries are particularly difficult for MNE’s to avoid because they are so deeply embedded in societal frameworks. However, there are also opposing global pressures for MNEs to impose their industrial relations practices across national borders in order to transmit ‘best practice’ to their subsidiaries. Ferner and Edwards (1995) suggest that Germany is something of a ‘test case’ for MNEs because of the strength of its legislative underpinning and institutional arrangements. Most analysis on the German system of co-determination has suggested that it is only small and medium-sized firms which avoid or undermine the German system (Lane, 1989). However, evidence brought together in this study suggests that along with other large companies and MNEs of different origins and across different industries, McDonald’s have been able to take advantage of weaknesses in regulation in the German system of co-determination. The paper puts forward a typology of possible ‘avoidance strategies’ within the German system.

Employment Practices of Multinationals in the Spanish and German Quick Food Sectors: Low Road Convergence?

This article examines the labour relations practices of multinational corporations (MNCs) in the German and Spanish quick-food service sectors. The demand for greater profitability and lower costs is leading to a greater standardization of work methods across a widening range of food service operators, resulting in the gradual elimination of more expensive, skilled and experienced workers, and an increasingly non-union approach in employee relations practices. The outcome involves increasing standardization, union exclusion, low trust, low skills, and low pay. These sectoral characteristics appear to outweigh both country-of-origin and host-country effects. The findings therefore confirm continuing variation within national industrial relations systems and the importance of sectoral characteristics and organizational contingencies in understanding MNC cross-border behaviour.

Labour relations in the global fast-food industry

The USA - fast food work in the USA Canada - labour relations in the fast food industry the UK - another state of the USA? labour relations in the UK fast food industry Germany - undermining the system? labour relations in the German fast food industry the Netherlands - concensus and confrontation, fast food in the Netherlands Russia - to Russia with Big Macs, labour relations in the Russian fast food industry Singapore - McAunties and McUncles - labour relations in the Singapore fast food industry Australia - employment relations in the Australian fast food industry New Zealand - standard recipes? labour relations in the New Zealand fast food industry.

Recruiting the Acquiescent Workforce: A Comparative Analysis of McDonald's in Germany and the UK

Focuses on the workforce characteristics of the German and UK operations of McDonald’s Corporation. The UK workforce is characterised by predominantly young workers with very limited work experience, the German workforce is much older and mostly foreign workers. The analysis suggests that despite these differences and differences in labour market regulation, there is a key similarity between the workforces. The corporation is able to draw on similarly “weak” and marginalised segments of the labour market and these segments are likely to be particularly acquiescent to managerial prerogative. National institutional arrangements can still constrain the employment relations policies of multinational enterprises (MNEs). However, this analysis supports the notion that there is a growing diversity within national systems increasingly explained by MNE policies and practices. This does not necessarily mean that national systems are becoming redundant, but that there is a dynamic relationship between such systems and the needs of MNEs.

Dominance Effects from Local Competitors: Setting Institutional Parameters for Employment Relations in Multinational Subsidiaries; A Case from the Spanish Supermarket Sector

Dominance effects are normally associated with multinational corporations (MNCs). However, we argue that a strong local competitor can create ‘dominance effects’ setting the institutional parameters for employment relations in multinational subsidiaries. Moreover such an effect can be persistent. In this case the Spanish-owned El Corte Ingles (ECI) used its power and influence to establish an employers federation and two ‘yellow unions’. These yellow unions infiltrated the French-owned MNC Carrefour and most of the Spanish supermarket sector by the early 1980s and continue to dominate collective bargaining rounds and works council elections, marginalizing the main independent trade unions. This has resulted in poor pay and working conditions and a lack of effective employee representation across most of the Spanish supermarket sector. The fact that Carrefour established an international framework agreement to observe union rights in 2001 has as yet not changed this situation.

The degradation of work and the end of the skilled emotion worker at Aer Lingus: is it all trolley dollies now?

The article focuses on emotional labour and self-identity at the Irish-owned Aer Lingus airline from 1998 to 2008. It has been suggested that emotional labour is likely to be an increasingly important feature of frontline service jobs. However, in this case management has reduced the level of emotional labour requirement while work organization, recruitment policy and training have changed to focus on sales and lower labour costs, intensifying workloads and reducing cabin crew autonomy. Although some may suggest that a reduction in emotional labour requirement would be a positive outcome for employees, this is not how it has been perceived by some cabin crew. Long-serving cabin crew in particular see these changes as an attack on their professionalism and a challenge to their identity as skilled emotion workers.

The reluctant bargainers? McDonald’s, unions and pay determination in Germany and the UK

There is growing evidence that multinational enterprises (MNEs) increasingly develop organisation-based employment strategies, which promote the transmission of employee relations practices across national borders. This article provides an analysis of one MNE’s employee relations practice and what appears to be its preference for operating, where possible, independently of national industrial relations systems. The findings, which draw on a UK/German comparison, raise a number of questions about the adequacy of even highly juridifed national systems to protect workers rights in practice.

Corporate versus societal culture: a comparative study of McDonald's in Europe.

Examines the human resource policy of one US multinational company (MNC) (the McDonald′s Corporation) operating in the hospitality industry in Germany and the UK. Focuses on the makeup of the workforce, levels of unionization and worker participation. These issues are analysed in the context of the debate about the convergence or divergence of behaviour in organizations and the increasing globalization of economic activity. Suggest that although the company has been unable to avoid union involvement at industry level in Germany (as it has in the UK) unionization and industrial democracy are still seen as highly undesirable in both countries. Concludes that, while there are aspects of societal culture which cannot be totally evaded or overridden, the meaning and value of societal culture are continually and consistently being undermined by the pressure for convergence as represented in this case by one MNC′s corporate culture.

‘Low-road Americanization’ and the global ‘McJob’: a longitudinal analysis of work, pay and unionization in the international fast-food industry

This article examines the employment practices of McDonalds and other US-owned multinational corporations (MNCs) in the global fast-food industry from the 1970s to date. It focuses on the impact that different host institutions have had on pay and working conditions in different countries in the industry. The author argues that US fast-food MNCs still adopt the underlying principles of their US practices, even if the practices themselves could not be imposed in their entirety, often keeping unions out of workplaces and preserving their management prerogative, even when sector-level collective agreements have been imposed, and often limiting the impact of such agreements. Whilst some improvements have been achieved in some countries, adequate representation remains a serious problem, with many employees experiencing low pay, inadequate hours, insecure work, unpaid hours and sometimes hazardous and intimidating working conditions. The theoretical effect of host-country influences cannot therefore be automatically assumed; rather, the variations that arise across countries, while indicating national diversity, also emphasize variation within national systems and a limited form of convergence or ‘low-road Americanization’ in this sector.