Strategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and NTT.

This comparison of labor-management relations at Deutsche Telekom and NTT (formerly Nippon Telephone and Telegraph) demonstrates the value of considering both institutions and strategic decision-making to understand the interaction between companies and unions. As corporations diversify, multi-divis...

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Main Authors: Sako, M, Jackson, G
Format: Journal article
Published: 2006
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author Sako, M
Jackson, G
author_facet Sako, M
Jackson, G
author_sort Sako, M
collection OXFORD
description This comparison of labor-management relations at Deutsche Telekom and NTT (formerly Nippon Telephone and Telegraph) demonstrates the value of considering both institutions and strategic decision-making to understand the interaction between companies and unions. As corporations diversify, multi-divisional or holding company structures emerge, but the degree of diversity introduced in employment relations within the corporate group depends on the interaction between corporate strategy and the strategy of organized labor. The authors' field research, based on interviews with managers and labor leaders, shows that despite a broadly similar corporate strategy of diversification by DT and NTT after the liberalization of telecommunication markets, employment relations became more decentralized--both for unions and for works councils--within the DT group than within the NTT group. This difference in outcomes is explained by the relative power and strategic choices of labor and management, rather than by constraints and opportunities specific to the existing national institutions.
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spelling oxford-uuid:c95949d6-e959-4ff3-9ed7-597e312048b12022-03-27T06:58:31ZStrategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and NTT.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:c95949d6-e959-4ff3-9ed7-597e312048b1Department of Economics - ePrints2006Sako, MJackson, GThis comparison of labor-management relations at Deutsche Telekom and NTT (formerly Nippon Telephone and Telegraph) demonstrates the value of considering both institutions and strategic decision-making to understand the interaction between companies and unions. As corporations diversify, multi-divisional or holding company structures emerge, but the degree of diversity introduced in employment relations within the corporate group depends on the interaction between corporate strategy and the strategy of organized labor. The authors' field research, based on interviews with managers and labor leaders, shows that despite a broadly similar corporate strategy of diversification by DT and NTT after the liberalization of telecommunication markets, employment relations became more decentralized--both for unions and for works councils--within the DT group than within the NTT group. This difference in outcomes is explained by the relative power and strategic choices of labor and management, rather than by constraints and opportunities specific to the existing national institutions.
spellingShingle Sako, M
Jackson, G
Strategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and NTT.
title Strategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and NTT.
title_full Strategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and NTT.
title_fullStr Strategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and NTT.
title_full_unstemmed Strategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and NTT.
title_short Strategy Meets Institutions: The Transformation of Management-Labor Relations at Deutsche Telekom and NTT.
title_sort strategy meets institutions the transformation of management labor relations at deutsche telekom and ntt
work_keys_str_mv AT sakom strategymeetsinstitutionsthetransformationofmanagementlaborrelationsatdeutschetelekomandntt
AT jacksong strategymeetsinstitutionsthetransformationofmanagementlaborrelationsatdeutschetelekomandntt