Question

Please read the case study below titled "Converging or Diverging? A Comparative Analysis of Trends in Contingent Employment Practice in Europe over a Decade" and answer all the questions that follow. If possible cite all sources of information.

  1. Discuss the convergence debate of employment relations in European countries such as the UK, Sweden and Germany as depicted in the case study.
  2. From your own knowledge, research and case study, compare the contingent employment practices in European countries. In doing so, list the contingent employment practices before discussing their similarities, differences, advantages and disadvantages to the employers as the main actor in employment relations.
  3. Discuss the result or the outcome of the research as depicted in the case study.
  4. What lessons have you learnt from the case study? Why?.
  5. Are the contingent employment practices experienced in European countries have emerged in the country of Fiji? Why?.

Case Study

 

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palgrave macmillan Converging or Diverging? A Comparative Analysis of Trends in Contingent Employment Practice in Europe over a Decade Author(s): Olga Tregaskis and Chris Brewster Source: Journal of International Business Studies, Jan., 2006, Vol. 37, No. 1 (Jan., 2006), pp. 111-126 Published by: Published by: Palgrave Macmillan Journals on behalf of Academy of International Business. Stable URL: https://www.jstor.org/stable/3875218 REFERENCES Linked references are available on JSTOR for this article: https://www.jstor.org/stable/3875218?seq=1&cid=pdf- reference#references_tab_contents You may need to log in to JSTOR to access the linked references. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact supportejstor.org. Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at https://about.jstor.org/terms Falgrave Macmillan Journals is collaborating with JSTOR to digitize, preserve and extend access to Journal of International Business Studies ISTOR This content downloaded from 210.7 29.183 on Them, 12 Ang 2021 11:21:03 UTC All use subject to http:/about jufor org tomas

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Journal of International Business Stadia (2006) 37, 11 1-135 3 2006 Academy of Inwrrational werational Burruss All rights Reserved 0047-2506 $30.90 www jibs.net Converging or diverging? A comparative analysis of trends in contingent employment practice in Europe over a decade Olga Tregaskis' and Abstract Chris Brewster This paper makes a unique contribution to the HRM convergence/ divergence debate by examining whether organisations operating in Europe, over the 'Leicester Business School, De Montfort 10-year time period preceding 2000, are converging in their adoption of University, Leicester, UK; 'Henley Management contingent employment practice. The susceptibility of contingent employment College, Hentry-on- Thorns, UK practice to both convergent and divergent pressures acts as a useful analytical lens. Data are drawn from organisations operating in Germany, Spain, Sweden, Correspondence: the Netherlands and the UK in 1991 (2918 organisations), 1995 (2048 Or Q Tregaskis, De Montfort University, organisations) and 2000 (1555 organisations). The results suggest that Leicester Business School, Room: Bosworth House 2.20 convergence is limited by the institutional embeddedness of organisations. The Gateway, Journal of International Business Studies (2006) 37, 1 1 1-126. Leicester LE1 98H, UK. doi:10.1057/palgravejbs.8400174 Tel: + 44 116 257 7915; E-mail: otregazedmu,ac.uk Keywords: convergence/divergence; institutional context; comparative HRM; contin- gent employment Convergence and divergence: the example of contingent employment practices The incidence of homogeneity and heterogeneity in management practice across national borders stokes the convergence/divergence debate. The tensions between the two forces are heightened in comparative human resource management (HRM) because of the relationship between HRM and the institutional context (Rosenz- weig and Nohria, 1994; Brewster, 1995; Adler, 1997; Whitley, 2000a; Hall and Soskice, 2001), with research in Europe demon- strating the importance of national institutional structures for HRM practice (e.g., Poole, 1986; Due et al., 1991; Bean and Holden, 1992; Visser, 1992; Hyman and Ferner, 1994; Gooderham et al., 1999). Further developments in this field need to address some of the current empirical limitations and conceptual ambiguity. First, much of the work to date focuses on static similarities and differences, providing only a partial analysis of the situation (Craig and Douglas, 1992). An examination of trends over time is needed to provide more comprehensive empirical Insights into the dynamic processes of convergence or divergence. Received: 21 August 2009 Second, the meaning of the terms 'convergence' and 'divergence' Revised: 25 May 2005 has been confounded, partly because of the complexities of Accepted: 6 june 2005 conducting comparative research, and the methodological dilem- Online publication date: 15 December 2005 mas this creates (Adler, 1984; Von Glinow, 2003). There is a This content downloaded from 210.7 29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org/terms

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Converging or diverging Olga Tragunkis and Chris Brewster 112 need for greater nuancing of the terms, As a Kostova and Roth, 2002). Europe represents a contribution to this, Mayrhofer et al. (2004) and situation In which organisations are confronted Mayrhofer and Brewster (2005) have suggested by isomorphic pressures both from the national using the terms 'directional convergence' for context and from the regional context through the similarity in trends and 'final convergence' for European Union: what Kostova and Roth, (2002: increasing similarity of practice. In the latter case, 216) called 'institutional duality'. because initial practices are dissimilar, trends may The paper adopts the following format: we or may not be in the same direction but indicate explore the rationale for focusing on contingent increasing similarity in meaning. This theoretical employment practices and five European countries development is valuable in analytical terms, because with extensive, but distinctive, uses of contingent it provides boundaries for the interpretation of employment before reviewing briefly the conver- observed practices; in other words it defines with gence/divergence debate (focusing on the differ- greater clarity the substance of observed similarities ences between the convergent pressures of and differences in practices. This may overcome institutional theory and the divergent pressures of some of the confounding and apparent conflicting institutional contextual difference). We then apply empirical evidence. In terms of theoretical prediction that to the issue of contingent working practices in and explanation of observed practices, this greater order to develop three hypotheses. These are then nuancing of the term 'convergence' encourages tested using data from Europe, and the findings and greater precision in the identification of institutional results are discussed. sources of Influence and their impact. Third, many of the theoretical debates on con- Contingent employment practices and the vergence are embedded within American-domi- European context nated theoretical developments and empirical There are many definitions of contingent employ- evidence (Guest, 1990; Brewster, 1995, 1999). ment on offer: we follow Pollvk and Nardone (1989, However, the economic and regulatory drivers of 10), who define 'contingent' employment in broad convergence evidenced in the US have a potentially terms as 'any arrangement that differs from full- different impact in, for example, Europe. Smith and time, permanent, wage and salary employment'. Meiksins (1995) argue that there is an accepted This paper focuses on three specific aspects: part- hierarchy between economies, and as a result the time contracts, temporary contracts and fixed-term society-in-dominance' acts as a benchmark or contracts. standard of good practice from which other Contingent employment practices reflect differ- countries attempt to borrow. The economic dom- ent approaches to enhancing organisational flex- inance of the USA has led to the diffusion of theory ibility: namely, the ability to adapt without undue and organisational practice from the USA. However, pain or cost to the requirements of the market, Smith and Meiksins further argue that competition which is seen as critical to the competitive success between dominant countries, such as the US or of firms. As such we might expect innovations to be Japan (or in the European context between the copied by others, or for such innovations to be German or Swedish models of work organisation), replicated within the same or similar Institutional means that no single model persists, Equally, coun- contexts (Daniels et al., 2001). tries strive to use the uniqueness in their cultural and Europe provides a fascinating context for exam- institutional frameworks to create distinct national Ining the adoption of organisational practice competitive advantage (Porter, 1990), potentially because of the duality of its institutional context. militating against the diffusion of 'best practice" The attempts in Europe to create a continent-wide models, with implications for both theory and set of institutions above the national ones is unique HRM best-practice models (Weinstein and Kochan, and, arguably, is leading to different models of 1995; Whitley, 2000b; Hall and Soskice, 2001), HRM (Sparrow et al., 1994; Brewster, 1995). The To explore these issues we use contingent five countries included in this study (Germany, employment practices as our subject and Europe the Netherlands, Spain, Sweden and the UK) are as our example. We focus on contingent employ- members of the European Union and as such ment practice to be consistent with suggestions are subject to the convergent policy pressures from that the regulatory, normative and cognitive ele- the European market and the European Commis- ments of the institutional context and their impact sion. For example, the European Community Social are issue specific (Rosenzweig and Singh, 1991; Charter introduced in 1989 and its associated Social Journal of International Business Studies This content downloaded from 210.7 29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org/terms

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Converging or diverging Olga Tregakk and Chris Brewster 713 Action Programme aim to establish at least a contingent jobs less attractive from both the convergence of legal minimum requirements for employer and employee perspectives. contingent working. These were controversial, and Sweden shares some commonality with the it was not until 1999 that the Part-time and Fixed- systems In Germany, but the institutional system term Directives were agreed (Schomann et al., is less restrictive with reference to organisational 1998), with a requirement for European legislation adoption of contingent employment practice. For to be incorporated at the national level by the year instance, in Sweden, like Germany, there is an 2000. This legislation gives equal employment emphasis on quality-based production regimes that protection to part-time and fixed-term workers as are more successful with a highly skilled workforce. is afforded permanent workers (CEC, 1999). Thus, This is supported through vocational colleges that despite convergence pressures at the European level focus on developing firm- and industry-specific there is resistance at the national level, which can skills, enabling companies to effectively develop be explained, in part, through the variation in 'deep competencies with established technologies, employment protection and skill development and to continuously diversify existing product systems. lines' (Streeck, 1991; Estevez-Abe et al., 2001: 174) and in turn promote internal labour market Employment protection and skill development in strategies. Education at university level concen- Europe trates on occupationally specific skills, and job Employment protection and skill development tenure within companies is relatively high (Estevez- regimes are key dimensions to consider when Abe et al., 2001). Employment protection requires examining contingent employment practices, for notice periods for redundancies, and information two reasons. First, where employment protection is and consultation with the unions on issues affect- high this can create rigidities in the labour market ing employment. Much of this employment pro- system that can hinder organisational flexibility. tection is extended to part-time workers. The Second, labour market skill systems have an unions in Sweden are more powerful than those important impact on the extent to which the In Germany (Osterman, 1988), and on the whole workforce has skills that are mobile as opposed to contingent contracts are not viewed as precarious, company-specific, impacting on an organisation's primarily because of the employment protection reliance on internal or external labour markets. afforded part-time workers, and because these jobs Arguably, contingent employment practices are have arisen more in the highly unionised public more viable in external labour market contexts. sector (Mahon, 1996). Equally, organisations in So, for example, the German economy is well Sweden are given greater freedom through the known for its pursuit of a quality-based production legislation than those in Germany with respect to regime that depends on a highly skilled workforce defining how workers are used and in hiring and (Culpepper and Finegold, 1999). The dual system of firing workers. Thus, while an initial appraisal of training combines theoretical training alongside the macro-institutional systems may appear to have practical skills development in the job, giving rise a lot in common with Germany, their interpreta- to high-quality firm- and industry-specific skills, tion in reference to the use of contingent employ- while education at university focuses on occupa- ment contracts suggests that the institutional tional skill development. This highly skilled work- system is more likely to be supportive of contingent force is trained and retained in an economically employment practices than restrictive. viable way through the unique cooperative rela- Employment protection in the Netherlands is tionship between employers and unions, which relatively strong, although not to the same extent enables sustainable collective bargaining arrange- as in either Germany or Sweden (Estevez-Abe et al., ments. Employees are encouraged to invest in their 2001, 165, Table 4.1). The dismissal of permanent training and stay loyal to companies that invest in employees requires regional administrative author- them through the use of secure employment isation, though this can be bypassed through the contracts, strong wage levels and employment use of certain contingent employment contracts protection against changes to working conditions such as the fixed-term contract. The vocational exercised via the works councils (Hall and Soskice, training system is again strong but, unlike Germany 2001; Rubery and Grimshaw, 2003). Thus, the high and Sweden, skills are more industry than company degree of employment protection coupled with the specific, and education at university level is much specialist skill development system is likely to make more occupational in nature, making employees Journal of International Business Studies This content downloaded from 210.7.29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org terms

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Converging or diverging Digs Tregends and Chris Brewater 114 more mobile (Estevez-Abe et al., 2001), Thus, the Employment protection has tended to be high in differing employment protection and skill devel- Spain, and the unions have a powerful role to play opment systems mean that organisations in the In collective bargaining. However, very high levels Netherlands are arguably more able to adopt a of unemployment highlighted the rigidities in the variety of contingent employment contracts and to system, and as a result legislative reform was a greater extent than those in Germany or Sweden. implemented aimed at widening the range of The UK contrasts with the countries discussed so contracts that were permitted and lowering the far in terms of both employment protection and termination costs. Therefore, although employ- skill development. The unions play a weaker role in ment protection for permanent workers remains negotiating the rules governing internal labour strong, there is greater flexibility in the system, markets compared with unions in Germany or allowing organisations to use different forms of Sweden. There are few legislative restrictions inhi- contingent employment practices. Attempts to biting employers' pursuit of enhanced organisa- rectify the low educational standards pre-1997 have tional flexibility. However, employment protection led to a gap, with older people being under- for permanent workers extends to contingent qualified and some younger ones being over- workers. In terms of the skill formation system, qualified for the jobs available. Vocational training this too varies from those discussed previously. is highly job and occupationally focused, and has Commentators point to the demise of the voca- been strictly controlled by labour ordinances. As a tional training system in the UK since the 1970s result, skill development has been characterised as Finegold and Soskice, 1988; Keep and Mayhew, individualised and internalised, largely supported 1996; Gospel, 1998). Attempts to introduce a by 'above the shop' private training companies, "modern apprenticeship' in the early 1990s focused which form an integral part of the training system on transferable skills as opposed to job- or industry- in Spain but are largely under-researched (Martinez specific skills, further reinforced by efforts to Lucio and Stuart, 2003). These conditions might increase generic skills through greater numbers of suggest that mobility among permanent workers is university places. In this context, the contingent low, given the occupational and internal skill focus, employment opportunities in the UK are more while at the same time the low-skilled and margin- variable. There has been growth in short-term allsed segments of the labour market are vulnerable employment and in part-time employment. The to less stable employment contracts and particu- growth in self-employment over the last decade larly those such as temporary contracts that are reflects the movement of some high-skilled workers more economically favourable to the employer. with scarce and valuable resources, particularly in In sum, the five European countries selected here the IT industry, from permanent jobs to fixed-term reflect different approaches to employment protect contracts where job security is low but the financial tion and skill development, relative to each other, rewards are high (Brewster et al., 1997). Equally, the which are embedded within unique national growth in part-time employment in the UK is institutional structures. At the same time these indicative of the diversity of the labour market, countries are operating within a similar regional where employees are actively seeking employment economic context, subject to European pressures opportunities that enable them to accommodate for convergence, and globally competitive pressures non-work commitments such as carer or parenting for organisational flexibility. responsibilities (O'Reilly and Fagan, 1998; Brewster The analysis of these issues, undertaken in the et al., 1997). Thus in an institutional context that remainder of the paper, aims to contribute to combines limited legislation restricting different the convergence/divergence debate by considering types of contingent employment practices with a the nature of the theoretical argument and empiric relatively strong labour market where unemploy- cal evidence in a European context, enriching ment is low and employees have transferable skills, the explanation of practice and further refining we might anticipate a moderate use of multiple the nature of the antecedents of convergence methods of contingent employment contract (e.g., and divergence in a highly regulated and institu- part-time, temporary and fixed-term) as opposed to tionally diverse environment. The 10-year time- an over- or under-reliance on a single method. frame over which organisational practice is Spain became a democracy in 1977 and since compared provides insight into the reality of then has undergone rapid change in its pursuit for convergence and divergence as opposed to static social, political and economic modernisation. similarities or differences. journal of International Business Studies This content downloaded from 210.7.29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org/terms

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Converging or diverging Olga Tregaskis and Chris Forwater 115 The convergence debate has emphasised 'convergent change processes' The debate between the convergence and diver- "Dacin et al., 2002: 46). In addition, Whitley gence strands of management literature is far from (2000b) is critical of this perspective for its over- new, but it is only recently that it has been reflected emphasis on the cognitive norms at the cost of in HRM theorising. Briefly, the convergence thesis the regulative and normative conventions, while argues that differences in management systems arguing that the three are inextricably bound to have arisen as a result of the geographical isolation each other. of businesses. The consequent development of In contrast, the institutional debate in Europe has differing beliefs and the underlying value orienta- seen the regulative and normative conventions tions of national cultures is being, or will be, play a much stronger role. However, even within superseded by the logic of technology and markets Europe there are a number of variants of institu- giving rise to universally applicable management tionalism. For example, the 'societal effects' school techniques (Kidger, 1991). Early postwar thinking maintains that the uniqueness of each society was for the most part convergent (e.g., Burnham, derives from the interconnectedness of institu- 1941; Drucker, 1950; Harbison and Myers, 1959). tional systems such as education and training, The assumptions were that practice would converge and the industrial relations tradition, and social towards the most efficient, and therefore, they stratification prevents economic imperatives creat- argued, the US, model. More recently, the conver- ing a convergence in organisational practice (Sorge, esis has received support from transaction 1991). The business systems perspective holds that cost economics, which also contends that at any specific nations are locked on a particular develop- one point in time there exists a best solution to mental trajectory, reflecting differences in both organising labour (Williamson, 1975, 1985). institutional configuration and corresponding Characteristic of these various convergence per- social agency: these variations are reflected in the spectives is their functionalist mode of thought. role and structuring of firms, Business systems The practice of management is explained exclus theorists have identified typologies of market sively by reference to its contribution to technolo economies that provide a means of drawing gical and economic efficiency. It is a dependent systematic comparisons of the differences and variable that evolves in response to technological similarities across countries. For example, Hall and economic change, rather than with reference and Soskice (2001) identify two types of market to the socio-political context, so that 'much of what economy: coordinated market economies and lib- happens to management and labour is the same eral market economies. Whitley (2000b) identifies regardless of auspices' (Kerr, 1983). six ideal types: fragmented, coordinated industrial There is, however, an alternative perspective. districts, compartmentalised, coordinated, state Scott (1987) and Whitley (2000b) both comment organised and highly organised business systems. on the diversity in the range of institutional studies These typologies are limited to the extent that they being conducted and the importance of recognising do not easily explain the business systems within their distinct contributions, irrespective of the label some of the Latin European countries such as Spain. used. One distinction that can be drawn is between Alternatively, Hollingsworth and Boyer (1997) have the US-based 'new institutionalism' perspective and compared market economies based on the differ- the European institutional perspectives. The 'new ences between flexible and standard production institutionalism' research from North America (e-g., systems. Meyer and Rowan, 1977; DiMaggio and Powell, Although these perspectives differ in their focus, 1983; Scott, 2001) focuses on explaining how they all highlight the sources of pressures for both institutions reproduce various templates for orga- convergence and divergence. Equally, empirical nising: institutionalisation "is viewed as the social evidence from the HRM field also suggests that process by which individuals come to accept a different practices may be more or less subject to shared definition of social reality' (Scott, 1987: forces of convergence or divergence (Lane, 1989; 496). This perspective takes greater account of Rosenzweig and Nohria, 1994; Sparrow et al., 1994; the socio-political context in shaping economic Tregaskis, 1997; Ferner et al., 2001; O'Sullivan, organisation and vice versa. However, as much 2001), and that the dynamic nature of these of the evidence is drawn from one country (see pressures requires analyses that take account of the reviews in Scott, 2001; Tolbert and Zucker, change over time (Slack and Hinings, 1994; Ferner 1996; Dacin et al., 2002), much of the literature and Quintanilla, 1998). Attempts have been made Journal of International Business Studios This content downloaded from 210.7.29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org/terms

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Converging or diverging Olga Tregaskin and Chris Brewster 116 to break out of what Smith and Meiksins (1995, governing part-time work in Europe varies, Part- 241) called the 'stark polarisation between conver- time employment is intertwined with female gence and divergence' and have given rise to more participation rates, the nature of labour market detailed conceptualisations of the factors influen regulation, and the extent to which part-time cing the convergence and divergence process and working is voluntary. In the Netherlands atypical the outcome for HRM. For example, Smith and work, particularly part-time work, was strongly Meiksins suggest that the interaction of institu- advocated by government as a means of combating tional, societal and dominance effects shapes unemployment (Brewster et al., 1996; Schomann organisational practice within countries, although et al., 1998). Since 1990, unemployment in the the relative impact of these three effects is variable Netherlands has fallen considerably (see Table 1) over time and between countries. Others argue and this has been explained largely by the rise in that institutional factors might lead to some form contingent employment contracts, particularly of regional convergence different from the 'best part-time employment. The female participation practice' models found in the USA (Lee et al., 2000). rate is high, and the percentage of men taking up Alternatively, authors examining individual values part-time jobs is the highest of the five countries have developed a notion of 'cross-vergence', which studied (OECD, 2003). Part-time employment in would be something "in between' (Ralston et al., the Netherlands is an important mechanism for 1993) or 'different from' (Ralston et al., 1997) allowing parents to balance family and work national cultural divergence and institutional con- commitments, and as a result there is a high vergence. Similar attempts have been made at the demand for such types of contract and the enterprise level (Giacobbe-Miller et al., 2003). incidence of involuntary part-time employment is Combined, this work illustrates the complexity of low (OECD, 2002). Similarly, in Sweden part-time the convergence/divergence debate, and the need work is strongly supported through legislation. for a more nuanced discussion of what may not be Part-timers have a high degree of unionisation, simple alternatives. tend to work more than 20h, reflecting their right In short, as well as evidence of similarity across to reduce their daily hours from 8 to 6, in contrast national boundaries, one can find differences. to other countries such as the UK, Spain and Whether these translate to convergence and diver- Germany, where the hours worked per week by gence is a matter for empirical investigation, the majority of part-timers are less than 20 (Euro- stat, 1996). The proportion of men undertaking Hypothesising convergence and divergence part-time work is higher than in Germany, Spain in contingent employment practices In and, until 1999, the UK (OECD, 2003). In short, Europe there is greater commonality between the Nether- Translating these general debates about contingent lands and Sweden when compared with Germany, working practices and convergence to the European Spain and the UK with regard to the role of women context enables us to develop a series of hypoth- in the labour market, the gendering of work, and eses. To keep this process manageable, we have the regulatory support surrounding the use of part- selected the five European countries noted above time contracts. where the issue of contingent employment is In contrast, the pattern of women's participation politically 'live', as reflected in national debates in the labour market in Germany and the UK shares and recent legislation, and where patterns of contingent working appear to be extensive and distinctive (cf. Brewster and Tregaskis, 2001). Thus, Table 1 Unemployment rates in this section each form of contingent practice is discussed in turn, and specific hypotheses are 1990 7095 2000 derived on the basis of the institutional context Germany 6.2 7.9 75 within each of the five countries. The Netherlands 6.D 7.1 26 Spain 15.7 22.7 14.1 Part-time employment Sweden 1,7 7.7 4.7 Part-time employment is often seen as one form of LIK 5.9 8.5 5.5 contingent employment that is more stable and European Union 7.8 10.5 B. 1 offers greater security to the employee than tem- Total OECD 7.4 62 porary or fixed-term contracts. National legislation Source: OLCD Economic Outlook Joumal of International Business Studies This content downloaded from 210.7 29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org/terms

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Converging or diverging Olga Tregods and Chris Brownter 117 many similarities (Cousins, 1999). Women in both Temporary contracts countries tend to take up part-time jobs following Within Europe, temporary and fixed-term contracts the birth of a child. Part-timers are cheaper to are to some degree substitutes for each other, employ, because those working under a certain depending on the legislation surrounding their hours threshold are not entitled to sickness benefits use. In Germany, restrictions are placed on the and pensions in Germany (Cousins, 1999), and in use of temporary employment agencies, and the UK employers do not pay National Insurance employees employed by such organisations are contributions (Marullo, 1995). Overall, it could issued with a permanent contract (Schomann be argued that part-time contracts in the UK et al., 1998). Although temporary workers in Spain, and Germany are thus more favourable to the Sweden, the Netherlands and the UK are afforded employer than to the employee compared with varying degrees of employment protections, during those in Sweden and the Netherlands, hence the 1990s this was not equal to that afforded restricting demand. Therefore, we would expect permanent employees. As a consequence it was Germany and the UK to diverge from Sweden cheaper to employ temporary employees and easier and the Netherlands in their use of part-time to dismiss them. Organisations in these countries employment. were more likely to use temporary contracts to Lastly, the incidence of part-time employment in remain competitive, titive, particularly in times of eco- Spain has traditionally been much lower than in nomic uncertainty and in certain industry sectors other European countries. This has largely been due such as hospitality and tourism, which are vulner- to the high costs associated with employing part- able to seasonal fluctuations, than organisations in timers. Social security benefits paid by employers Germany, where the restrictions on temporary were around 30%% of the wages in the early 1990s. contracts limit their competitive value. Therefore, The Spanish labour market is segmented into four we would expect the use of temporary contracts in groups: permanent full-time workers; temporary or Germany to diverge from that in other countries. fixed-term workers; the unemployed, which is Specifically: exceptionally high (see Table 1); and the submerged or informal economy. Given this tradition, and an H2a: Organisations operating in Germany will, institutional context where trade unions are weak, over time, be significantly lower users of tempor- we would expect organisations in Spain to use ary contracts than organisations in Spain, official part-time contracts to a much lower extent Sweden, the Netherlands and the UK. than in the other countries and therefore to diverge in their practice. However, there are also reasons to expect a In summary, supportive institutional contexts divergence between Spain and the other countries that promote part-time employment as a flexible In the use of temporary contracts. The particularly alternative to full-time employment with mutual high unemployment in Spain, the industry struc benefits for employers and employees are more ture of the country with its significant tourism likely to lead to a higher adoption of such contracts industry subject to seasonal fluctuations, and the than in those institutional contexts where part- high costs associated with employing permanent time employment is primarily a means of reducing employees together make temporary contracts costs for employers and an alternative to not potentially very important for organisational com- working for employees. Specifically, we propose petitiveness and sustainability (Marshall, 1989). the following hypotheses: The legislative context in Spain also leads us to suspect differences from the other countries. We Hla: Organisations operating in the Netherlands would expect differences between the UK and and Sweden will, over time, be significantly Spain, because traditionally protection for perma- higher users of part-time contracts than organisa- nent workers in Spain has been much stronger than tions in Germany, the UK and Spain. in the UK (Siebert, 1997). Reforms enabling the use of temporary contracts have meant a significant expansion in the use of these contracts as a means Hib: Organisations operating in Spain will, over of replacing permanent contracts (Argandona, time, be significantly lower users of part-time 1997). Using Grubb and Wells' (1993) index of contracts than organisations in Germany, Swe- dismissal protection, Siebert (1997: 236) argues that den, the Netherlands and the UK. dismissal protection institutionalizes the very joumal of International Business Studies This content downloaded from 210.7 29.183 com Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org terms

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Converging or diverging Dign Tregadds and Chris Brewster thing - temporary jobs - which it is designed to overcome these restrictions, providing organisa- prevent.' Given the institutional context, we would tions in the Netherlands with a strong incentive expect temporary contract use by organisations for using such contracts. in Spain to diverge from that of organisations in In Sweden, changes in legislation enabled fixed- Germany, Sweden, the Netherlands and the UK. term contracts to be used more widely. Never- Specifically: theless, these jobs remain highly unionised and have a moderate degree of employment protection H2b: Organisations operating in Spain will, over (Mahon, 1996). In the UK, there are few statutory time, be significantly higher users of temporary restrictions limiting the use of fixed-term contracts, contracts than those operating in Germany, the but these contracts are also covered by employment Netherlands, Sweden and the UK. rights relating to permanent contracts, with some alterations relating to waiving the right to unfair dismissal protection (Schomann et al., 1998). So Fixed-term contracts this is not necessarily an inexpensive option for the Across Europe, during the 1990s, national legisla- employer (Casey, 1991). Hence, in both Sweden tion existed in all countries other than the UK and and the UK we might expect fixed-term contracts to Ireland regarding the use of fixed-term contracts. be used less extensively, compared with organisa- However, national laws varied dramatically, making tions in Spain, Germany and the Netherlands. fixed-term contracts potentially more attractive in Specifically: some countries than in others. Fixed-term contracts play an important role for H3: Organisations operating in Germany, Spain organisations in Spain, and were dominated by and the Netherlands will, over time, be signifi- women, young people and nearly all new entrants cantly higher users of fixed-term contracts than to the job market (Eurostat, 1996). Evidence organisations in the UK and Sweden. suggests that fixed-term contracts are particularly prevalent in small firms and in large organisations including multinationals, in public sector work Methodology that is contracted out, and in retailing firms (Reico, Unlike much of the previous work in this field, our 1992). Fixed-term contracts have been strongly analysis focuses on organisational practice rather backed by government with supporting labour than employee data as a means of understanding legislation to make them highly cost-effective. We patterns in the level of contingent employment in would therefore expect fixed-term contracts to be Europe. Evidence is drawn from survey data used extensively by organisations in Spain. collected by the Cranfield Network on European In Germany, fixed-term contracts substitute for HRM (Cranet-E), starting In 1989 with five coun- temporary contracts. Fixed-term contracts in Ger- tries, and increasing in each round of collection many have been used primarily for women retur (1991, 1995, 1999/2000) since then. The survey ners and those beginning their careers, with 70 of instrument was developed jointly by the interna- men and 74% of women in those categories tional research network, was drafted in the English employed on such contracts in 1995 (European language and then, through the established back- Commission, 1996). The range of circumstances for translation process (Brislin, 1976), translated into which fixed-term contracts can be used was relaxed the language or languages appropriate to each through the employment protection Act of 1985, participating country. These questionnaires were and fixed-term contracts were seen as a positive distributed to senior HR specialists in organisations way of tackling unemployment (Schomann with 200 or more employees, and a pilot study was et al., 1998). undertaken. The use of single respondents in survey In the Netherlands, restrictions on the use of research has limitations in terms of the researcher's fixed-term contracts are minimal, primarily relating inability to assess the reliability of the responses to renewal. Jacobs (1992) argued that the wide- (Gerhart et al., 2000). However, the questions in the spread use of fixed-term contracts is linked largely survey are fact-based (yes/no or numerical answers to the requirement by law for employers to seek are required). Because of local sensitivities regard- permission, at governmental level, for the dismissal ing company anonymity it was not possible to track of any employee who has not agreed to the the same companies over time; however, the same termination of their contract, Fixed-term contracts databases were drawn on during each round of data Journal of International Business Studies This content downloaded from 210.7 29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org/terms

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Converging or diverging Olga Tregacki and Chri Briwater 119 collection. Comparisons against Eurostat employ- workforce is employed on the following contracts?' ment figures suggest that, across Europe, the Responses were recorded as follows: 1-less than sample over-represented the manufacturing sector 1%, 2=1-10%, 3=11-20%%, 4-greater than 20%. and large firms. The first and last 10% of the questionnaires received were checked for signifi- Analysis cant differences, and none was found. Data collec A multivariate analysis of variance (MANOVA) was tion procedures and sample distributions for 1991 used to test for the effect of country on the use of are discussed in detail in Brewster and Hegewisch contingent employment practices by organisations (1994), for 1995 in Brewster et al. (1996), and for at each time point. Four control variables were 1999/2000 in Tregaskis et al. (2004). included in the MANOVA as factors. First, the size of the organisation was measured in terms of the Sample numbers of employees (1=200-499, 2=500-999, Within Germany, Spain, Sweden, the Netherlands 3-1000 or more). Second, we identified the and the UK the sample included a total of 2918 industry sector (1=manufacturing, 2-services, organisations in 1991, 2048 in 1995 and 1555 in 3=public sector) of the organisation. Third, the 1999/2000. For the distribution of organisations by ownership of the organisations was measured country see Table 2. (1=home owned, 2-foreign owned, 3-indigenous organisation). This categorisation recognised the Measures of contingent employment practice difference between multinational companies on The analysis examines three forms of contingent the basis of whether they were home owned or working: part-time, temporary and fixed-term con- foreign owned. It also included an indigenous tracts. Each was measured through a single ques- category, which captured home-owned companies tion, which asked: 'What proportion of the that were not multinationals, that is, that were not part of a larger organisation with operations in other Table 2 Sample details (N) countries. The indigenous category included the public sector organisations but also service and 1991 1 995 1999/2000 manufacturing companies that were not multina- Country tionals. Fourth, we measured the level of trade union UK 1403 1097 720 membership as a percentage of the workforce (1=0%%, Germany 789 288 277 2=1-25%, 3=26-50%, 4 51-75%, 5=76-100%%). Sweden 284 310 254 Europe has the highest proportion of members of Spain 256 202 188 independent trade unions in the world, with many Netherlands 186 151 116 countries having more than a third of their workforce in trade unions. Nevertheless, trade union member- Industry sector Manufacturing 1655 1009 718 ship varies considerably across the five countries as a Services 791 573 458 result of legislation and norms. Membership in the Public 462 466 379 UK is the lowest; it is more moderate in Germany, the Netherlands and Spain, and state provision in Organisational size Sweden makes it nearly universal there (EIRO, 2000; 200 499 891 733 559 Rigby et al., 2004). Given the significance of trade 500-999 742 501 393 union membership in Europe, and the variation 1000 4999 1285 814 603 across countries, its inclusion as a control factor Ownership enables us to account for any influence this may Home owned 1085 609 1220 have on the use of flexibility. The MANOVA was Foreign owned 264 445 889 constrained for main effects only. For the distribution Indigenous 1220 313 726 of organisations by year across the control variables, see Table 2. To test the specific hypotheses, planned Trade union membership comparisons were applied using the SPECIAL con- 046 269 229 213 trasts command in SPSS. 1-259% 880 605 516 26-50% 593 368 277 Results 51-756 565 380 229 76-100% 611 466 320 Descriptive statistics and correlations are provided in Table 3. Overall, the use of contingent employ- Journal of International Business Studies This content downloaded from 210.7 29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org terms

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Converging or diverging gigs Tregnikis and Chris Browniter 190 Table 3 Descriptive statistics and correlations Table 4 Summary of MANOVA output for control variables Variables Meon 2 Control variable d.f. 1991 1991 Part-time 2.01 1.05 Sector 0.88 57.88+ 6/5104 0.06 Temporary 1 50 0.168 Size 0.9 5.014 6/5104 0,01 Fixed term 1.51 1_09 0.101 0.159 Ownership 0.99 3.58 6/5104 0.004 TU membership 0.98 3.62" 12/6752 0.01 1905 Part-time 2.09 1.15 1995 Temporary 1.68 0.95 0.106 Sector $1.50*+ 6/3852 0.07 Fixed term 1.39 1.11 0.094 0.164 0.98 6.84"- 6/3852 0.01 Ownership 0.99 3.27" 6/3852 0.01 1999/2000 IU membership 0.97 4.28*4 12/5096 0.01 Part-time 2.19 1.17 Temporary 1.72 D.98 0.264 1999/2000 Fixed term 1.44 1.02 0.135 0.129 Sector 0.15 41 77" 6/3002 0.98 0.01 N=2918/2048/1555. Siz 6/3000 Correlation coefficients greater than 0.19 are significant at P.co.05; Ownership 1.98 6/3000 0.01 those greater than 0 27 are significant M P40 01; and those greater than TU membership 0.97 12/3968 0.01 0.32 are signi can't at P:c0.001. .*P< 0.001, -P40.01, "P<0.05. ment contracts by organisations has increased at trasts were used to test the relationships specified each time point, with the exception of fixed-term in each hypothesis, and these are discussed in contracts, which show a slight decrease. However, detail below. The family-wise alpha was set at the s.d. suggests there is a high degree of variability 0.05, meaning that the nominal alpha for each in the use of these contracts across the five individual test was set at 0.05 divided by 5, which countries. equals 0.01. Country was found to have a significant effect on Hypothesis la stated that organisations in the contingent employment practice in all 3 years, Netherlands and Sweden would be higher users of accounting for between 21 and 11% of the part-time contracts than those in Germany, the UK variance: or Spain, and that this significant divergence would remain over time. The planned comparisons con- 1991 Wilks' 1=0.49, approx. F-174.85, d.f.=12/6752, firm this hypothesis (1991: f=14.511, P.<0.001; P<0.001, ,'=0.21; 1995: 1=13.20, P<0.001, 1999: =13.37, P<0.001). 1995 Wilks' 1=0.63, approx. F=82.37, d.f.=12/5096, Hypothesis 1b argued that organisations in Spain P <0.001, ,'=0.15; would be the lowest users of part-time contracts 1999 Wilks' 1=0.70, approx. F=48.55, d.f.=12/3968, during the 1990s. Again this was confirmed by the P<0.001, ,3=0.11. planned comparisons (1991: 1=23.131, P<0.001, 1995: 7=22.10, P<0.001, 1999: t=15.96, P<0.001). Each of the four control variables was found to have Therefore, the results show no convergence over a significant impact on the use of contingent time; rather Sweden and the Netherlands remain employment practice, as expected, although the the greatest users of part-time contracts, the middle size of this impact was marginal in comparison ground is held by organisations in the UK and with country effects: sector had the strongest Germany, and those in Spain continue to diverge, impact, accounting for between 6 and 8% of remaining the lowest users of part-time contracts the variance; size, trade union membership and during the 1990s. Examination of the mean scores ownership accounted for only 1% of the variance. for the use of part-time contracts by organisations Table 4 details the multivariate statistics in full for in each country shows that the UK, Germany and the control variables, the Netherlands reflect an upward trend in the use Table S shows the univariate effects of country, of part-time contracts over time. This could be controlling for size, sector, ownership and trade argued as indicative of organisational responses union membership and the means for each form of to regional convergence pressures from the Euro- contingent employment practice. Planned con- pean Union and regional competitive demands for Joumal of International Business Studies This content downloaded from 210.7 29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org terms

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Converging or diverging Olga Tregaskh and Chris Brewster 121 Table 5 Summarised univariate effects from MANOVA Variable Country means and s.d. UK Germany Sweden Spawn Netherland's Port-time 1991 101.67+4 0.14 2.00 (1.10) 2.07 (0.82) 2.60 (1.04) 1,01 (0.80) 2.23 (1.05) 1995 85.20* 0.15 2.16 (1.18) 2.20 (0.91) 2.24 (0.87) 0.87 (0.95) 2.68 (1.11) 1999/2000 19.02+ 2.21 (1.16) 2.13 (0.91) 2.46 (1,10) 1.20 (1.13) 2 87 (1.13) Temporary 1991 86.79-4 0.12 1.56 (0.79) 1,02 (0.74) 1,80 (0.83) 1.73 (1.13) 1.96 (0.78) 1995 69 32+ 0.73 1.78 (0.86) 0.85 (0.94) 1.81 (0.70) 2.21 (1.16) 1.58 (0.89) 1999/2000 30.37+. 0.08 1.78 (0.92) 1.13 (0.91) 1.99 (D.85) 1,79 (1.18) 1.80 (1.05) Fixed 1991 327.18. 0.34 1.09 (0 86) 1.77 (0.77) 0.99 (0.60) 1.70 (1.28) 3.72 (0.95) 1995 61.874 0.11 1.22 (1.04) 1.65 (0.70) 0,97 (0.87) 2.25 (1.73) 1.76 (0.90) 1999/2000 41.33. 0.10 1 23 (1.00) 1 87 (0.76) 0.92 (0.88) 1.91 (1.21) 1.93 (0.97) 1991 d.f.-4/2552; 1995 d.f.=4/1928: 1999/2000 d.f_-4/1502. -P20.001, #p<0.01, *P.co.05. greater organisational flexibility, The organisa- mixed support for this relationship (1991: t=2.13, tional pattern of part-time contract use in both n.s., 1995: [-9.22, P <0.001, 1999; t=1.50, n.s.). Sweden and Spain is more erratic, with organisa- Specifically, only in 1995 did the use of temporary tions in Sweden decreasing their use of part-time contracts by organisations in Spain peak to levels contracts over time, while still remaining one of the that were significantly higher than those in the highest users, In contrast, organisations in Spain Netherlands, Sweden and the UK. This finding have increased overall their use of part-time con- suggests that the legislative changes in Spain aimed tracts but show a marked fall in the use of part-time at enhancing labour flexibility may have enabled contracts in the mid 1990s. This is likely to reflect organisations in Spain to gain the flexibility organisations' responses to the difficulties of the afforded other countries, but not necessarily to economic recession at this time, reinforced by the exceed this, at least with respect to the use of peak in the use of both temporary and fixed-term temporary contracts. It is also important to contracts at the same time. Therefore, the analysis remember in this context that the data here include relating to the first set of hypotheses suggests that only those organisations employing 200 or more the use of part-time contracts by organisations has employees. The pattern of contingent employment changed over time. Although there is some evi- use, and temporary contracts in particular, may be dence of an upward shift in the use of part-time very different among smaller organisations. contracts, the differences that existed between the Hypothesis 3 stated that organisations in Ger- organisations in the countries in 1991 remain a many, Spain and the Netherlands would be sig- decade later. nificantly higher users of fixed-term contracts than The second set of hypotheses focused on the use those in the UK and Sweden during the decade of temporary contracts. It was argued in Hypothesis examined. Again, the results from the planned 2a that Germany would be the lowest user of comparisons confirmed this hypothesis (1991: temporary contracts over the decade studied. The t=34.35, P<0.001, 1995: 1=15.21, P<0.001, 1999: results confirmed this continuing difference 1=17.27, P<0.001). The mean scores show that, between organisational practice in Germany and while organisations in the Netherlands have that in the other countries (1991: t=21.47, remained one of the highest users of fixed-term P <0.001, 1995: t=18.25, P <0.001, 1999: t=12.84, contracts during the 1990s, they have dramatically P<0.001). Hypothesis 2b stated that Spain too reduced their use in line with those of the other would diverge from the other countries by being country leaders, namely Germany and Spain, thus consistently the highest user of temporary con- providing some limited evidence of convergence. tracts. However, the planned comparisons showed The decline in the use of fixed-term contracts loumal of International Business Studies This content downloaded from 210.7 29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org/terms

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Converging or diverging Olga Teepackis and Chris Brewster 122 coupled with the sharp rise in the use of part-time The more liberal legislation in the other countries contracts appears to reflect a shift in the mode by has enabled a greater degree of commonality in which organisations are attempting to achieve organisational practice in terms of the adoption of greater flexibility, temporary contracts. Equally, fixed-term contracts in the UK and Sweden are less favourable to the Discussion and conclusions employer and as a result are used less by organisa- The objective of this study was to establish whether tions in those countries. organisations operating in Europe were, over a Overall, the evidence suggests that the divergence specified time period, converging in their adoption in microeconomic conditions, industrial relations of contingent employment practice. The results traditions and government policy has led organisa- suggest that this is not the case, and that the tions to adopt contingent employment practices pattern of organisational practice is more complex. that are in line with local as opposed to regional or Overall, organisations across the five countries have global isomorphic pressures. As a result, organisa- tended to increase their use of contingent employ- tional practice with regard to the use of contingent ment contracts from 1991 to 2000. This finding workers has remained distinct during the decade of could be seen as indicative of regional isomorphic the 1990s. It remains to be seen whether over the pressures for convergence, which have given rise to next 10 years, with the introduction of the new directional' convergence. However, the data also European directives on part-time, temporary and show that the divergence between the countries in fixed-term working, which give these workers evidence during the early 1990s remains a decade greater protection and more common terms of later. There is no evidence that either the regional reference throughout Europe, this divergence will institutional pressures coming from the European continue. Commission or regional or global competitive The findings raise a number of wider implications pressures are creating 'final' convergence in orga- regarding the convergence/divergence debates. nisational practice. We would argue that these First, for multinationals the data suggest that in findings support the divergence (or at least the some country contexts the institutional comple- non-convergence or stasis) thesis that the role of mentarities (Hall and Soskice, 2001) may require national institutional systems is a powerful force adaptation of practices, as attempts to circumvent for shaping local organisational responses with Influence, while possible, may not make competi- respect to the use of contingent employment live sense. This would be consistent with institu- contracts (Whitley, 2000b; Hall and Soskice, 2001). tional arguments of local isomorphic pressures In the case of part-time working, the institutional "DiMaggio and Powell, 1983) and explain why protection afforded in the Netherlands encouraged isomorphism of multinational affiliates to country a divergence in practice from the other countries. norms may be more likely in some contexts than in At the same time the lack of institutional protec others (Gooderham et al., 1999; Ferner et al., 2001; tion and the power of employers to regulate Tregaskis et al., 2001). The multivariate analysis demand leads practice in Spain to diverge in the undertaken in the paper controlled for the effects of opposite direction. Therefore part-time employ- the MNC; at the same time the results illustrated ment does not afford organisations across Europe that there were little differences between MNCs and the same degree of organisational adaptability and non-MNCs (i.e., indigenous companies) in their flexibility and, as a consequence, while the up-take use of contingent employment practices. Although is extensive it is also variable. Public sector policy the study was not designed specifically to examine provides a reinforcing complementarity (Pierson, the extent to which MNCs resist or adopt local 2000) or a supporting incentive encouraging firm practice, the limited evidence suggests that in the reliance on the distinct comparative advantage countries studied there was a greater tendency for offered by the institutional context (Wood, 2001). multinationals to conform to the local norm with Temporary and fixed-term contracts are under- regard to their use of contingent workers. pinned by different legal and industrial relations Second, the collection of comparable data at frameworks across Europe. The findings here indi- three points in time has enabled the issue of cate clear consequences of these divergent frame- convergence and divergence to be examined from works. During the 1990s temporary contracts a dynamic as opposed to a static perspective. By so were not highly regulated except in Germany, doing the analysis has illustrated the fluctuations where there was a lower use of these contracts. in national practice over time. Although there is Journal of International Business Studies This content downloaded from 210.7 29.183 on Them, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org/terms

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Converging or diverging Olga Tregaikh and Carn Brewster 125 evidence of directional convergence here, in that heterogeneity may 'diminish consensus and there has been some overall increase in the use of unquestioning adherence to taken-for-granted contingent working, there is little or no sign of final practices' and facilitate the uptake of contingent convergence. As a summary we might say that the employment practices within a revised or adapted national recipes remain strong and distinctive. The framework of supportive institutional structures. fact that elements of both forms can be identified Fourth, many questions remain regarding which emphasises the need for a carefully nuanced organisational practices are more susceptible to approach to questions of isomorphism. Our find- convergence and divergence pressures, and in ings here provide representative data to support which areas of HRM multinationals are more likely theoretical (Smith and Meiksins, 1995) and case to resist local isomorphic pressures to diverge from study evidence (Ferner et al., 2001), which indi- parent practice (Rosenzweig and Nohria, 1994; cated the complexity of these issues, the national Taylor, 2004). Kostova and Roth (2002) found that embeddedness of HRM practices, and the dynamic subsidiaries engage in different patterns of adop- nature of evolving national business systems. tion depending on the favourability of the institu- Third, the inevitable limitations of the compara- tional context. We need to further refine our tive survey method raise methodological implica- conceptualisation of convergence by considering tions for future work. It is critical to capture the the interplay between the various elements (nor- dynamic nature of the convergence and divergence mative, regulative and cognitive) of the institu- process in addition to the nested characteristics of tional context, particularly when organisations are the organisational relationships that tap into the faced with pressures from multiple institutional complex and subtle evolution of institutional contexts, as in the case of Europe presented here. structures and map their relative influence on the Fifth, at the organisational level the study raises organisation (cf. Ferner et al., 2004). Longitudinal practical implications for managers in terms of and historical case work in combination with the using contingent employment as a tool for organi- longitudinal survey method could help unravel sational flexibility. The differing institutional con- how the social groups and actors within the texts that capture not only legislation, but institutional field influence organisational practice industrial relations traditions and norms, mean and how organisations may, in some instances, that specific forms of contingency work are per- circumvent attempts to influence (Oliver, 1991). ceived more or less favourably, Their widespread The recognition that the institutions themselves use is dependent upon the societal legitimacy of change over time (Dacin et al., 2002) reinforces the such employment relationships, facilitated by, for need for a dynamic approach to analysis. Also, the example, supporting social security systems, trade process of deinstitutionalisation (the process by union support and employment protection (Koene which institutions weaken and disappear'; Scott, et al., 2004). 2001: 182) and its impact within a European In conclusion, this study has presented unique context could be particularly fruitful in unravelling data over a 10-year timeframe on organisational the effect of the European Union at the national convergence and divergence in contingent employ- level (see also Oliver, 1992; Townley, 2002; Zilber, ment practice in Europe. The evidence suggests that 2002). Research by Townley (2002) and Zilber organisational practice remains distinct across (2002) illustrated how political and social drivers Europe despite European and global isomorphic of deinstitutionalisation can lead to the demise of pressures. However, the complexities and evolution existing organisational norms and practices, mak- of the interaction between institutional stake- ing way for organisational innovation. In the holders and organisational actors is under- context of contingent employment in Europe this researched. More specific longitudinal investiga- raises questions about what effect the European tions and meta-analyses are required, allowing a Union's recent directives on contingent employ- dynamic examination of the differential Influence ment will have on deinstitutionalising national of institutional factors on HRM practices. level norms on contingent employment. Further, the rise in the numbers of contingent employees introduces a greater degree of heterogencity into Acknowledgements the workforce, potentially giving rise to greater The authors are grateful to the editor and three diversity in cognitive frameworks (Zilber, 2002) anonymous reviewers for their positive and helpful relating to the employment relationship, This comments on an earlier draft of this article. Journal of International Business Studies This content downloaded from 210.7 29.183 on Thm, 12 Aug 2021 11:21:03 UTC All use subject to https:/about jutor.org/terms

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Answer & Explanation
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1. Discuss the convergence debate of employment relations in European countries such as the UK, Sweden, and Germany as depicted in the case study.

A few models in this volume feature the commitment of the arrangement and mark of three-sided public agreements to keeping up with harmony while changing work economic situations to the macroeconomic setting. Modern relations through such public social exchange are found to have added to the combination.

 

The part on Belgium in this volume shows that the compensation balance on which the social accomplices have arrived at understanding has added to an expansion in business and likewise to the improvement of the double worker family model, which expanded utilization and furthermore made it conceivable to accomplish various macroeconomic objectives. Different social exchange components and organizations, like augmentation instruments and indexation, have likewise made a difference.

 

As shown by the creator, this solid concertation model prompted genuine pay development no matter how you look at it and along with broad redistributive endeavors, through both advantages and moderate assessments assisted Belgium with finishing accomplishing a fairer spread of the advantages of monetary development than in numerous other rich EU economies. Curiously, as displayed in this volume, the Netherlands, regardless of likenesses with Belgium, has followed particularly various directions.

 

While the social accomplices have too accepted pay control, with a considerably more noteworthy impact on work and hence progress as far as admittance to the work market this has regularly appeared as low maintenance work and, all the more as of late, transitory work, multiplying its rate, and development inadaptable. From your own knowledge, research, and case study, compare the contingent employment practices in European countries. In doing so, list the contingent employment practices before discussing their similarities, differences, advantages, and disadvantages to the employers as the main actor in employment relations.

 

2. Discuss the result or the outcome of the research as depicted in the case study.

One more end from the examination introduced in this part is that a better estimation of intermingling as to European Social Pillar privileges may be required. We saw the worth of the apparatuses and investigation proposed in this part as a reason for building a strong and thorough Summary Indicator that would help in catching the patterns on markers identified with the EPSR. We trust this volume will invigorate further examination in that bearing. 

 

The various sections attempt to react to the primary inquiry of this volume. Modern relations help EU nations in their quest for the social and monetary union. In the event that the effect of various components of modern relations on financial assembly pointers in some way or another affirmed through the perusing of this volume while the European Commission in its social column plan infers that such friendly pointers most certainly add to financial development and combination then, at that point, modern relations ought to be treated as a vital switch for accomplishing cross country assembly.


In this regard, we trust that this volume might assist with supplementing policymakers' perspectives also the choices accessible to them. Also that rather than debilitating or destroying modern relations as impediments or imperatives making a course for union, they might select to keep up with and even reinforce such foundations so they can deliver their maximum capacity for feasible development and a re-visitation of the union. The sections in this volume appear to affirm this through more nitty-gritty proof.

 

Aggregate haggling specifically has assisted with arranging options in contrast to cutbacks and helped numerous nations in keeping up with their degree of work and social markers. Some aggregate arrangements introduced in this volume prevailed with regards to decreasing disparities as to admittance to occupations, social assurance also annuities, and to all the more likely ensure laborers restricted in low maintenance work, brief contracts, independent work or in new types of occupations and working courses of action.

 

3. What lessons have you learned from the case study? Why?.

A few different arrangements have allowed representatives to accomplish a superior harmony between work what's more day-to-day life. More elevated levels of exchange unionization and aggregate haggling inclusion of ladies appear to have positively affected restricting the sexual orientation pay hole. 

 

The improvement of public modern relations establishments, like the lowest pay permitted by law setting or three-sided settlements, was likewise found to assume a part, particularly when the strength of the social accomplices and independent aggregate haggling had been dissolved. The support of the social accomplices in professional preparing as in Germany, Sweden, and Belgium or in organization-based preparing (as in France) has additionally helped in working with admittance to great quality positions.

 

In this regard, we trust that this volume might assist with supplementing policymakers' perspectives what's more the choices accessible to them. What's more that rather than debilitating or destroying modern relations as deterrents or requirements making progress toward combination, they might pick to keep up with and even reinforce such foundations so they can deliver their maximum capacity for economic development and a re-visitation of combination.

 

4. Are the contingent employment practices experienced in European countries have emerged in the country of Fiji? Why?.

Fiji, Palau furthermore Papua New Guinea with the end goal of making strategies more proof-based, cooperatively not really settled, and sex-centered. This report is a union of the logical and exploration work that was completed under this ADB-subsidized undertaking in the Pacific. This report shows how size and distance have upset financial development and restricted positive work market results all through the Pacific Island nations. 

 

Advancement in the modern area has been lopsided, yet there are promising signs in the district's developing the travel industry and specialty agribusiness and fishing areas. A youthful and developing populace is both a chance and a worry. Pacific Island nations remain to profit from a segment profit, however, work markets are just not creating an adequate number of occupations for every one of the young ladies furthermore men entering the labor force every year. This report takes an inside and out check out openwork benefits and proposes measures to target hindered job seekers and meet the necessities of bosses.

 

Our investigation in this section affirms truth be told that more grounded modern relations, as summed up and estimated by aggregate bartering inclusion, isn't helpful for lower (a decrease in) labor market elements and financial related results, however, can, unexpectedly, be identified with positive results as to the European Pillar of Social Rights. The sections in this volume appear to affirm this through more nitty-gritty proof. Aggregate dealing specifically has assisted with arranging options in contrast to cutbacks and helped numerous nations in keeping up with their degree of work and social markers.

Step-by-step explanation

The advancement of public modern relations establishments, like the lowest pay permitted by law setting or three-sided settlements, was likewise found to assume a part, particularly when the strength of the social accomplices and independent aggregate bartering had been disintegrated. The investment of the social accomplices in professional preparing as in Germany, Sweden, and Belgium or
in organization-based preparing (as in France) has additionally helped in working with admittance to great quality positions. LSSI is close by monetary development, however without fostering their modern relations frameworks much. While those nations have profited from 'rookies' development, with abrupt admittance to the entire EU market and furthermore to some EC subsidizing, they might have more troubles keeping up with their present development rate later on. The emotional decrease of modern relations in these nations might deliver their advancement concerning the LSSI more troublesome.

 

Note; All information is based on the articles provided.