Matching International Labor Relations
The human resource management function of an international business often is responsible for international labor relations. The successful management of the potential conflicts between labor and management will affect the strategic choices and effectiveness of a business.
Strategically, businesses need to consider how international labor relations issues affect the choices a business has, particularly in the globalization of production. Organized labor will definitely affect pursuit of transnational or global standardization strategies. One task of the HRM function is to foster harmony and to minimize conflict between labor and management.
Match the correct descriptions with the appropriate perspective.
Reorganizing work structures—Management perspective
Pay and benefits—Management perspective
International organizations—Management perspective
Centralize or decentralize—Management perspective
International organizations—Union perspective
Reorganizing work structures—Union perspective
Pay and benefits—Union perspective
Centralize or decentralize—Union perspective
Match each of the options above to the items below.
Attempts to gain better pay, greater job security, and better working conditions in contracts and agreements
To meet strategic ends, flexibility is required if trying to maximize factors of production.
Attempts to balance the power of the more powerful players in the international labor/management
Voluntary guidelines from international organizations are preferred over laws and regulations at the local or national level.
The local, immediate needs often take precedence over promised gains through international action.
Trying to keep structures fluid to maximize international competitive advantages
Preference is to deal at the local level rather than with opponents in another location
Centralized approaches could lead to consolidations and achievement of economies of scale.