Labor-management partnership at Korean firms: Its effects on organizational performance and industrial relations quality

Authors: Lee, Jiman; Lee, Deog-Ro

Source: Personnel Review, Volume 38, Number 4, 2009 , pp. 432-452(21)

Publisher: Emerald Group Publishing Limited

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Abstract:

Purpose - This paper seeks to examine the impact of labor-management partnership on organizational performance and industrial relations quality at Korean firms. Design/methodology/approach - Data were collected from 139 firms for organizational-level research. Hierarchical regression analyses were employed. Findings - The research showed that the partnership principle and the five practices of management efforts to secure jobs, information sharing, fair financial rewards, investment in employee training, and worker participation in management were significantly and positively associated with the quality of industrial relations. The partnership principle and two of these practices (investment in training and fair financial rewards) had significant and positive effects on organizational performance. Practical implications - The results suggest that the partnership principle on its own does not necessarily lead to improved organizational performance or industrial relations quality, and that a company needs not only to adopt the principle of partnership but also to implement it effectively through specific practices. Originality/value - The paper examines the impact of the partnership model in Korean contexts and offers practical implications for managers seeking effective implementation of the labor-management partnership model.

Keywords: Industrial relations; Labour; Managers; Organizational performance; Partnership; South Korea

Document Type: Research article

DOI: http://dx.doi.org/10.1108/00483480910956364

Publication date: 2009-06-05