Labor Relations Commons^™

Collective Voice Under Decentralized Bargaining: A Comparative Study Of Work Reorganization In Us And German Call Centres, Virginia Doellgast

Virginia Doellgast

This article compares the process of and outcomes from work reorganization in US and German call centres, based on four matched case studies in the telecommunications industry. Both German cases adopted high-involvement employment systems with broad skills and worker discretion, while the US cases relied on a narrow division of labour, tight discipline and individual incentives. These outcomes are explained by differences in institutional supports for collective voice. Works councils in the German companies used their stronger participation rights to limit monitoring and encourage upskilling at a time when US managers were rationalizing similar jobs. Findings demonstrate that industrial relations …

Organizational Performance In Services, Rosemary Batt, Virginia Doellgast

Virginia Doellgast

The question of performance in service activities and occupations is important for several reasons. First, over two-thirds of employment in advanced economies is in service activities. Second, productivity growth in services is historically low, lagging far behind manufacturing, and as a result, wages in production-level service jobs remain low. In addition, labor costs in service activities are often over 50% of total costs, whereas in manufacturing they have fallen to less than 25% of costs. This raises the question of whether management practices that have improved performance in manufacturing, such as investment in the skills and training of the workforce, …

Contesting Firm Boundaries: Institutions, Cost Structures, And The Politics Of Externalization, Virginia Doellgast, Katja Sarmiento-Mirwaldt, Chiara Benassi

Virginia Doellgast

This article develops and applies a framework for analyzing the relationship among institutions, cost structures, and patterns of labor–management contestation over organizational boundaries. Collective negotiations related to the externalization of call center jobs are compared across 10 incumbent telecommunications firms located in Europe and the United States. All 10 firms moved call center work to dedicated subsidiaries, temporary agencies, and domestic and offshore subcontractors. A subset of the firms, however, later re-internalized call center jobs, in some cases following negotiated concessions on pay and working conditions for internal workers. Findings are based on 147 interviews with management and union representatives, …

Metatheory And Friendly Competition In Theory Growth: The Case Of Power Processes In Bargaining, Edward J. Lawler, Rebecca Ford

Edward J Lawler

[Excerpt] This paper analyzes the theoretical development taking place in a program of research on power processes in bargaining (see Bacharach and Lawler 1976, 1980, 1981a, 1981b; Lawler and Bacharach 1976, 1979, 1987; Lawler, Ford, and Blegen 1988; Lawler and Yoon 1990; Lawler 1986, 1992). The theoretical program takes as its starting point a situation where individuals, groups, organizations, or even societies with conflicting interests voluntarily enter into explicit bargaining. Explicit (as opposed to tacit) bargaining assumes the mutual acknowledgment of negotiations, conflicting issues along which compromise is possible, and open lines of communication through which parties can exchange offers …

Power Dependence And Power Paradoxes In Bargaining, Samuel B. Bacharach, Edward J. Lawler

Edward J Lawler

[Excerpt] What this article (and our larger program of work) is designed to demonstrate is that these very simple ideas represent a particularly suitable starting point for understanding the power struggle between parties who regularly engage in negotiation. Specifically, in this article we show that the approach contains certain paradoxes regarding the acquisition and use of power in an ongoing bargaining relationship. The dependence framework treats the ongoing relationship as a power struggle in which each party tries to maneuver itself into a favorable power position.

Illegitimate Economic Practices In Bulgaria: Findings From A Representative Survey Of 2,005 Citizens, Colin C. Williams, Junhong Yang

Colin C Williams

Introduction To A Special Issue On Inequality In The Workplace (“What Works?), Pamela S. Tolbert, Emilio J. Castilla

Pamela S Tolbert

[Excerpt] While overt expressions of racial and gender bias in U.S. workplaces have declined markedly since the passage of the original Civil Rights Act and the creation of the Equal Employment Opportunity Commission a half century ago (Eagly and Chaiken 1993; Schuman, Steeh, Bobo, and Krysan 1997; Dobbin 2009), a steady stream of research indicates that powerful, if more covert forms of bias persist in contemporary workplaces (Greenwald and Banaji 1995; Pager, Western, and Bonikowski 2009; England 2010; Heilman 2012). In line with this research, high rates of individual and class-based lawsuits alleging racial and gender discrimination suggest that many …

Management Whipsawing: The Staging Of Labor Competition Under Globalization, Ian Greer, Marco Hauptmeier

Ian Greer

The authors examine management whipsawing practices in the European auto industry based on more than 200 interviews and a comparison of three automakers. They identify four distinct ways in which managers stage competition between plants to extract labor concessions: informal, hegemonic, coercive, and rule-based whipsawing. Practices at the three auto firms differed from one another and changed over time because of two factors: structural whipsawing capacity and management labor relations strategy. In the context of economic globalization, whipsawing is an effective means for managers to extract concessions, to loosen national institutional constraints, and to diffuse employment practices internationally.

Is U.S. Public Sector Labor Relations In The Midst Of A Transformation?, Harry C. Katz

Harry C Katz

In this article the author assesses whether a fundamental transformation is underway in public sector (state and local government) labor relations in the United States by revisiting the arguments made by the author and Kochan and McKersie (1986) regarding the transformation of labor relations in the private sector. The author argues that the economic pressures that led to a transformation of private sector labor relations starting in the 1980s have not played a comparable role in recent developments in the public sector because of the political nature of labor relations in that sector. Other insights are drawn from a comparison …

Examining Strategic Fit And Misfit In The Management Of Knowledge Workers, Christopher J. Collins, Rebecca Kehoe

Christopher J Collins

This study advances research on strategic human resource management by examining whether better firm performance depends on the alignment between an organization’s human resources (HR) system and its innovation strategy. The authors argue that the unique problems underlying exploration innovation strategies and exploitation innovation strategies require core workers to engage in different types of knowledge-search and -combination behaviors. Alternative HR systems theoretically produce different knowledge-search and -combination behaviors by way of their effect on employees’ ability, motivation, and opportunity structures at work. Drawing on a field study of 230 software firms, the authors demonstrate that alternative HR systems support either …

Superbugs Versus Outsourced Cleaners: Employment Arrangements And The Spread Of Health Care-Associated Infections, Adam Seth Litwin, Ariel C. Avgar, Edmund R. Becker

Adam Seth Litwin

On any given day, about one in 25 hospital patients in the United States has a health care–associated infection (HAI) that the patient contracts as a direct result of his or her treatment. Fortunately, the spread of most HAIs can be halted through proper disinfection of surfaces and equipment. Consequently, cleaners—“environmental services” (EVS) in hospital parlance—must take on the important task of defending hospital patients (as well as staff and the broader community) from the spread of HAIs. Despite the importance of this task, hospitals frequently outsource this function, increasing the likelihood that these workers are under-rewarded, undertrained, and detached …

Power Processes In Bargaining, Edward J. Lawler

Edward J Lawler

This is a theoretical article that integrates and extends a particular program of work on power in bargaining relationships. Power is conceptualized as a structurally based capability, and power use as tactical action falling within either conciliatory or hostile categories. The core propositions are (1) the greater the total amount of power in a relationship, the greater the use of conciliatory tactics and the lower the use of hostile tactics; and (2) an unequal power relationship fosters more use of hostile tactics and less use of conciliatory tactics than an equal power relationship. Distinct research on power dependence and bilateral …

Time Pressure And The Development Of Integrative Agreements In Bilateral Negotiations, Peter J. D. Carnevale, Edward J. Lawler

Edward J Lawler

A laboratory experiment examined the effects of time pressure on the process and outcome of integrative bargaining. Time pressure was operationalized in terms of the amount of time available to negotiate. As hypothesized, high time pressure produced nonagreements and poor negotiation outcomes only when negotiators adopted an individualistic orientation; when negotiators adopted a cooperative orientation, they achieved high outcomes regardless of time pressure. In combination with an individualistic orientation, time pressure produced greater competitiveness, firm negotiator aspirations, and reduced information exchange. In combination with a cooperative orientation, time pressure produced greater cooperativeness and lower negotiator aspirations. The main findings were …

Structural Power And Emotional Processes In Negotiation: A Social Exchange Approach, Edward J. Lawler, Jeongkoo Yoon

Edward J Lawler

This chapter focuses in the abstract on when and how repeated negotiations between the same actors foster positive feelings or emotions and, in turn, an affective commitment to their relationship. However, we have in mind applications to pivotal dyads within organizations and also to the emergence of "friction” or "stickiness” in market relations. Implicit in the idea that negotiations in pivotal dyads shape institutional patterns is the notion that repeated negotiations between the same two actors are likely to become more than instrumental ways for the particular actors to get work done. We suggest a simple process by which dyadic …

Resolving Conflict Through Explicit Bargaining, Elizabeth Heger Boyle, Edward J. Lawler

Edward J Lawler

This article analyzes the impact of conciliatory initiatives on conflict resolution in two-party bargaining. It specifically develops and tests a theory of unilateral initiatives derived from Osgood's (1962) notion of Graduated and Reciprocated Initiatives in Tension Reduction (GRIT). The major propositions of the theory indicate that, given a pattern of mutual resistance or hostility, unilateral initiatives and tit-for-tat retaliation in response to punitive action will produce more conciliation and less hostility by an opponent. To test the theory, a bargaining setting was created in a laboratory experiment in which parties exchanged offers and counteroffers on an issue across a number …

Bargaining Toughness: A Qualification Of Level-Of-Aspiration And Reciprocity Hypotheses, Edward J. Lawler, Bruce K. Macmurray

Edward J Lawler

This research examined the interaction of initial bargaining stance and later concession strategy in dyadic bargaining. Experimental procedures pitted subjects against a programmed opponent and manipulated three variables: initial stance of the opponent across the first two bargaining rounds (tough vs. soft), deadlock vs. no deadlock, and subsequent concession strategy (tough, matching, soft). The results revealed that: (a) with a tough initial stance, a matching strategy produced greater yielding than tough or soft strategies; while in the context of a soft initial stance, a tough concession strategy produced more yielding than a matching or soft concession strategy; and (b) a …

Comparison Of Dependence And Punitive Forms Of Power, Edward J. Lawler, Samuel B. Bacharach

Edward J Lawler

This paper deals with the impact of power on tactical action in conflict. The theory and research is organized around two conceptual distinctions: one between power based on dependence versus punitive capability, and the other between relative power (i.e., power difference) and "total power" in a relationship (i.e., across actors). The paper will argue that these distinctions are important on both theoretical and empirical grounds. Theoretically, they are important to explicate the connection between conceptions of power that stress the coercive foundation of power (Bierstedt 1950; Tedeschi, Schlenker & Bonoma 1973) and those that treat power as dependence (Bacharach & …

Tackling Undeclared Work In The Construction Industry: A Learning Resource, Colin C. Williams

Colin C Williams

When Does Employee Turnover Matter? Dynamic Member Configurations, Productive Capacity, And Collective Performance, John Hausknecht, Jacob A. Holwerda

John Hausknecht

In theory, employee turnover has important consequences for groups, work units, and organizations. However, past research has not revealed consistent empirical support for a relationship between aggregate levels of turnover and performance outcomes. In this paper, we present a novel conceptualization of turnover to explain when, why, and how it affects important outcomes. We suggest that greater attention to five characteristics—leaver proficiencies, time dispersion, positional distribution, remaining member proficiencies, and newcomer proficiencies—will reveal dynamic member configurations that predictably influence productive capacity and collective performance. We describe and illustrate the five properties, explain how particular member configurations exacerbate or diminish turnover’s …

Work-Unit Absenteeism: Effects Of Satisfaction, Commitment, Labor Market Conditions, And Time, John Hausknecht, Nathan J. Hiller, Robert J. Vance

John Hausknecht

Prior research is limited in explaining absenteeism at the unit level and over time. We developed and tested a model of unit-level absenteeism using five waves of data collected over six years from 115 work units in a large state agency. Unit-level job satisfaction, organizational commitment, and local unemployment were modeled as time-varying predictors of absenteeism. Shared satisfaction and commitment interacted in predicting absenteeism but were not related to the rate of change in absenteeism over time. Unit-level satisfaction and commitment were more strongly related to absenteeism when units were located in areas with plentiful job alternatives.

Retaking Ability Tests In A Selection Setting: Implications For Practice Effects, Training Performance, And Turnover, John Hausknecht

John Hausknecht

This field study investigated the effect of retaking identical selection tests on subsequent test scores of 4,726 candidates for law enforcement positions. For both cognitive ability and oral communication ability selection tests, candidates produced significant score increases between the 1st and 2nd and the 2nd and 3rd test administrations. Furthermore, the repeat testing relationships with posthire training performance and turnover were examined in a sample of 1,515 candidates eventually selected into the organization. As predicted from persistence and continuance commitment rationales, the number of tests necessary to gain entry into the organization was positively associated with training performance and negatively …

Justice As A Dynamic Construct: Effects Of Individual Trajectories On Distal Work Outcomes, John Hausknecht, Michael C. Sturman, Quinetta M. Roberson

John Hausknecht

Despite an amassing organizational justice literature, few studies have directly addressed the temporal patterning of justice judgments and the effects that changes in these perceptions have on important work outcomes. Drawing from Gestalt characteristics theory (Ariely & Cannon, 2000, 2003), we examine the concept of justice trajectories (i.e., levels and trends of individual fairness perceptions over time) and offer empirical evidence to highlight the value of considering fairness within a dynamic context. Participants included 523 working adults who completed surveys about their work experiences on 4 occasions over the course of 1 year. Results indicate that justice trends explained additional …

Causes And Consequences Of Collective Turnover: A Meta-Analytic Review, Angela L. Heavey, Jacob A. Holwerda, John Hausknecht

John Hausknecht

Given growing interest in collective turnover (i.e., employee turnover at unit and organizational levels), the authors propose an organizing framework for its antecedents and consequences and test it using meta-analysis. Based on analysis of 694 effect sizes drawn from 82 studies, results generally support expected relationships across the 6 categories of collective turnover antecedents, with somewhat stronger and more consistent results for 2 categories: human resource management inducements/investments and job embeddedness signals. Turnover was negatively related to numerous performance outcomes, more strongly so for proximal rather than distal outcomes. Several theoretically grounded moderators help to explain average effect-size heterogeneity for …

Unions And The Labor Market For Managers, John Dinardo, Kevin F. Hallock, Jörn-Steffen Pischke

Kevin F Hallock

We examine the relationship between the employment and compensation of managers and CEOs and the presence of a unionized workforce. We develop a simple efficiency wage model, with a tradeoff between higher wages for workers and more monitoring, which requires more managers. The model also assumes rent sharing between workers, managers and the owners of the firm. Unions, by redistributing rents towards the workers, lead to lower employment and lower pay for managers. Using a variety of data sets, we examine the implications of the model for the relationship between the employment and wages of managers and unionization. We find …

The Value Of Stock Options To Non-Executive Employees, Kevin F. Hallock, Craig A. Olson

Kevin F Hallock

This study empirically investigates the value employees place on stock options using information from the option exercise behavior of individuals. Employees hold options for another period if the value from holding them and reserving the right to exercise them later is higher than the value of exercising them immediately and collecting a profit equal to the stock price minus the exercise price. This simple model implies the hazard describing employee exercise behavior reveals information about the value to employees of holding options another time period. We show the parameters of this model are identified with data on multiple option grants …

Data Improvement And Labor Economics, Kevin F. Hallock

Kevin F Hallock

The expansion of available data for research has transformed empirical labor economics over the past generation. This paper briefly highlights some of the changes and describes a few examples of papers that illustrate the advances. It also documents the changing ways data have been used in the Journal of Labor Economics over the past 30 years, including a trend toward a higher fraction of papers using any data and, among those papers using any data, a higher fraction using nonpublic data, a higher fraction using international data, and more frequent use of multiple data sources. Finally, this paper describes work …

Estimating Pay Gaps For Workers With Disabilities: Implications From Broadening Definitions And Data Sets, Kevin F. Hallock, Xin Jin, Linda Barrington

Kevin F Hallock

Purpose: To compare pay gap estimates across 3 different national survey data sets for people with disabilities relative to those without disabilities when pay is measured as wage and salary alone versus a (total compensation) definition that includes an estimate of the value of benefits.

Method: Estimates of the cost to the employers of employee benefits at the occupational level from an employer survey data set are matched to individual-level data in each of the 3 data sets. Multiple regression techniques are applied to estimate wage and salary and total compensation gaps between full-time men with and without …

Job Loss And The Fraying Of The Implicit Employment Contract, Kevin F. Hallock

Kevin F Hallock

[Excerpt] Most workers have one employment contract that is explicit and another one that is implicit. The explicit employment contract specifies working hours, compensation, and job tasks. The implicit contract involves expectations about the extent to which the employment relationship is not just a payment for labor on the spot market but instead is likely to continue over time. The possibility of a longer-term commitment between an employer and its employees in turn has a number of implications: for example, whether firms will seek to avoid mass layoffs unless or until absolutely necessary; whether firms may cushion the wages and …

Discrimination By Gender And Disability Status: Do Worker Perceptions Match Statistical Measures?, Kevin F. Hallock, Wallace Hendricks, Emer Broadbent

Kevin F Hallock

We explore whether perceptions of discrimination are related to ordinary statistical measures. The majority of disabled respondents report feeling some discrimination due to their disability, the majority of women feel some discrimination because of their gender, and a surprising number of men also report some discrimination. We do not find a strong link between perceptions of discrimination and measured discrimination perhaps because those who perceive discrimination feel that it occurs along other dimensions than pay. However, we do find a connection between whether a person feels his or her income is inadequate and measured discrimination for all groups studied.

A Discussion Of Social Protection And Private Insurance, Gary S. Fields

Gary S Fields

[Excerpt] This is a thoughtful and thought-provoking paper, informative and interesting. I learned a lot from reading this and have already passed it on to others. In my comments, I would like to do four things: highlight the major points and the rationale for them, raise a few quibbles, put forth some additional issues, and propose a possible resolution of a dilemma raised in the paper. But let us first try to be clear about what we are talking about. Professor Pestieau characterizes social insurance as being mandatory, universal, and redistributive. I would define it slightly differently: “Social insurance is …