Usa employement system

USA EMPLOYEMENT SYSTEMPresented by

Salman Farooq

USA EMPLOYEMENT SYSTEM

1

•APPROACH ( CULTURAL AND POLITICAL)

•CORPORATE GOVERNANCE

2

•LABOUR LAWS

•INDUSTRIAL RELATIONS

3

•HR PRACTICES

•TRENDS OF EMPLOYEMENT SYSTEM

•FACTORS EFFECTING EMPLOYEMENT SYSTEM

USA EMPLOYEMENT SYSTEM

APPROACH (CULTURE/POLITICS)Geopolitics of American strategic culture identifies towards geographical influence along with two coalitions of subcultures that tends towards isolationism and interventionism.(Lee, 2008)

Nation’s geography

Influencing factors Of Nation’s geography

Nation’s perception Of geopoliticalPossibilities and limitations

Nation’s perceptionOf long-term International environment

Strategic Culture

Probably you might be thinking of its MECHANISM !

USA EMPLOYEMENT SYSTEM

CORPORATE GOVERNANCE “Corporate governance is a system by which corporations are directed and controlled, its structure specifies distribution of rights and responsibilities among different participants (the boards, managers, shareholders and other stakeholders). Also involved in decision making of corporate affairs. ”

Corporate risk – taking and firm growth rates are positively related to the quality of investor protection. However in U.S. Reliance on bank financing and unionization both associated with less risk- taking in corporate investments. (John, Litov and Yeung, 2008)

U.S and U.K represents shareholder models of ownership and control whereas Germany in a stakeholder approach, tough U.S need to include some attributes from Germany such as incorporation of employee involvement. (Mintz, 2006)

REASON I TELL YOU !

USA EMPLOYEMENT SYSTEM

LABOUR LAWS•Wages & Hours •Workers’ Compensation•Employee Benefits Security •Union and Their Members•Employee Protection•Uniformed Services Employment and Reemployments Act•Employee Polygraph Protection Act•Garnishment of Wages•The Family and Medical Leave Act•Veteran’s Preference •Govt. Grants, contracts or Financial Aid•Migrant & Seasonal Agricultural Workers •Mine, Safety and Health•Construction•Transportation•Plant closings and Layoffs•Advisories (DOL, 2010 )

USA EMPLOYEMENT SYSTEM

INDUSTRIAL RELATIONSTransition from high to low union density in manufacturing sector increased labor flexibility directing towards causation between input flexibility and unionization.

More unionized firms are entering while less unionized or flexible are more likely to enter.

Less unionization is the contingent factor intervening from domestic to international competitive market.

IHRM approach of U.S. Is Ethnocentric.

Attitude of Management towards Unions is towards the objective of increasing flexibility and ensuring survival.(Magnani and Prentice, 2006)

THINKING THAT HOW DOES IT LINKS ?

USA EMPLOYEMENT SYSTEM

HR PRACTICES

U.S. Is one of the leading economies in the world and considered dominant.

GENERAL PRACTICES YOU KNOW MIGHT KNOW E.G.•Recruitment and Selection •Training and Development•Reward System •Employee Representation

QUESTION IS HOW WELL YOU KNOW ? E.G. (CULTURAL,SOCIO-POLICTICAL, ECONOMIC AND MANAGMENET CONTEXT)

CULTURAL

• Individualistic•Low power distance•Self-assertive

SOCIO-POLITICAL

•Less Govt. interference•Less shared responsibility

ECONOMIC

•Consumer orientation•High share-holder value concept

MANAGEMENT

•Short-term financial objectives•Search best qualified person.•Focused training•Task-oriented superior relationship

•Base pay/ IPRP

(Pudelko, 2006)

USA EMPLOYEMENT SYSTEM

TRENDS OF EMPLOYEMENT SYSTEMSteady decentralization has been observed in ex-urban and rural areas. Ex-urban and rural settings are getting increasingly attractive to more firms due to breakthrough of good handling and explicit information.

Decision making of firms is often vaguely described as capitalising on urban jumbled economies. However its difficult to identify industries. (Gordon, Richardson and Yu, 1998)

Job growth has been slower than in previous expansions due to current economic expansion.

USA EMPLOYEMENT SYSTEM

FACTORS EFFECTING EMPLOYEMENT SYSTEMInstitutional Theory Approach characterizes institutions in terms of three pillars. (National Business System constitute factors such as labour, product market, political system, regulations, education, legislation, education and corporate governance.)

1) Regulative 2) Normative and 3) Cultural-cognitive. (Adams, Lee and Nissen, 2010)

WHAT IS THE INSTITUTIONAL APPROACH TOWARDS THE US EMPLOYEMENT SYSTEM !!

ANSWER LET ME RECALL YOU !!

USA EMPLOYEMENT SYSTEM

REFERENCESJohn, Litov and Yeung, 2008, “Corporate Governance and Risk Taking': The Journal of Finance Vol. 63(4), pg 1679- 1728. EBSCOhost [Online] Available at: http://0web.ebscohost.com.brum.beds.ac.uk/ehost/detail?vid=1&hid=8&sid=9b8ff2427d074fc58f75bf8025c61548%40sessionmgr4&bdata=JkF1dGhUeXBlPWNvb2tpZSxpcCx1cmwsc2hpYiZzaXRlPWVob3N0LWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=buh&AN=34204350#db=buh&AN=34204350 (Accessed at 20th May 2010)

Mintz, 2006, “A Comparison of Corporate Governance Systems In The U.S., U.K and Germany': Corporate Ownership & Control Vol. 3(4), pg 24- 34. EBSCOhost [Online] Available at: http://0web.ebscohost.com.brum.beds.ac.uk/ehost/detail?vid=1&hid=8&sid=d8c0985b-70ad-456e-b04fce2dcd9b9106%40sessionmgr13&bdata=JkF1dGhUeXBlPWNvb2tpZSxpcCx1cmwsc2hpYiZzaXRlPWVob3N0LWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=buh&AN=24766963#db=buh&AN=24766963 (Accessed at 19th May 2010)

Lee, 2008, “The geopolitics of American Strategic Culture”, Comparative Strategy Vol. 27(3) pg 267-286 EBSCOhost [Online] Available at http://0web.ebscohost.com.brum.beds.ac.uk/ehost/detail?vid=1&hid=8&sid=23eb1ddd5e714e2ea0c2481beb9dc80e%40sessionmgr13&bdata=JkF1dGhUeXBlPWNvb2tpZSxpcCx1cmwsc2hpYiZzaXRlPWVob3N0LWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=buh&AN=33190123#db=buh&AN=33190123#db=buh&AN=33190123 (Accessed at 21st May, 2010)

United states department of labor, 2010, “Summary of Major Laws of Department of Labor”, Available at http://www.dol.gov/opa/aboutdol/lawsprog.htm (Accessed at 20th May 2010)

USA EMPLOYEMENT SYSTEMMagnani and Prentice, 2006, “Unionization and Input Flexibility In U.S Manufacturing ”, Industrial and Labor Relations Review Vol. 59(3) pg 386-407 EBSCOhost [Online] Available at http://0web.ebscohost.com.brum.beds.ac.uk/ehost/pdfviewer/pdfviewer?vid=2&hid=8&sid=3f07402b-8fa3-4694-97937523c117048c%40sessionmgr10 (Accessed at 20st May, 2010)

Pudelko, 2006, “A comparison of HRM systems in USA, Japan, and Germany in their socio-economic context”, Industrial and Labor Relations Review Vol. 16(2) pg 123-153 EBSCOhost [Online] Available at http://0web.ebscohost.com.brum.beds.ac.uk/ehost/detail?vid=1&hid=8&sid=cf108cf085a9466888cc1be20d96860%40sessionmgr14&bdata=JkF1dGhUeXBlPWNvb2tpZSxpcCx1cmwsc2hpYiZzaXRlPWVob3N0LWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=buh&AN=20603000#db=buh&AN=20603000#db=buh&AN=20603000 (Accessed at 21st May, 2010)

Gordon, Richardson,Yu ,1998, “Metropolitan and Non-metropolitan Employment Trends in the US: Recent Evidence and Implications”, Industrial and Labor Relations Review Vol. 35(7) pg 1037-10537EBSCOhost [Online] Available at http://0web.ebscohost.com.brum.beds.ac.uk/ehost/detail?vid=40&hid=8&sid=747ac14e14ef4b18852b56fb059a0888%40sessionmgr11&bdata=JkF1dGhUeXBlPWNvb2tpZSxpcCx1cmwsc2hpYiZsb2dpbnBhZ2U9TG9naW4uYXNwJnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=buh&AN=783608#db=buh&AN=783608 (Accessed at 21st May, 2010)

Adams, Lee and Nissen (2010) ‘SociolTacit knowledge Flows and Institutional Theory: Accelerating Acculturation Available at: http://www.dtic.mil/cgibin/GetTRDoc?AD=ADA513546&Location=U2&doc=GetTRDoc.pdf (Accessed: 19th May 2010).