Culture against cohesion. Global corporate strategy and employee diversity in the UK plant of a German MNC

Published date04 January 2008
DOIhttps://doi.org/10.1108/01425450810843357
Date04 January 2008
Pages176-189
AuthorFiona Moore,Chris Rees
Subject MatterHR & organizational behaviour
Culture against cohesion
Global corporate strategy and employee
diversity in the UK plant of a German MNC
Fiona Moore
Royal Holloway, University of London, Egham, UK, and
Chris Rees
Kingston Business School, Kingston University, Kingston-upon-Thames, UK
Abstract
Purpose – The purpose of this paper is to highlight employee diversity at the workplace level in a
MNC, and consider its impact upon management attempts to promote a global corporate culture.
Design/methodology/approach The investigation took the form of an ethnographic
participant-observation study, which involved interviews and archival research plus a three-month
period when the lead researcher worked on the plant’s final assembly line. This provided insights into
the personal and psychological issues of individuals within the workforce, and an experiential
dimension to the study which is difficult to replicate in other ways.
Findings – The management approach to cultural and diversity issues worked both for and against
the development of cohesion and improved employee relations. Managers sometimes ignored the real
impact of local ethnic diversity, focusing instead on inter-management conflicts, which contributed to
employee morale and communication problems. But where diversity was recognised, more success
followed, in particular where the distinct history and identity of the plant was emphasised. The study
also tentatively suggests that “crossvergence” may be a fruitful way of interpreting the complex
determinants of employee attitudes.
Originality/value The paper highlights how global strategies are always mediated by local
circumstances, t hus strengthenin g the arguments for re cognising the inte raction between
management elites and local workforces, acknowledging cultural diversity and its impact on global
business, and looking beyond simplistic notions of “national culture” towards diversity within
national boundaries. The key implication for managers is that the successful implementation of global
corporate strategies works best not just with due acknowledgement of local workforce identities, but
with positive engagement with local historical and cultural traditions.
Keywords Organizationalculture, Employees, Multinationalcompanies, United Kingdom, Germany
Paper type Research paper
Introduction
This paper is concerned with corporate strategy and employee diversity in the UK
manufacturing plant of a German multinational company (MNC) in the automobile
sector (“AutoWorks” hereafter[1]). In particular, it explores the way that employe e
diversity affects and mediates attempts by management to foster a global corporat e
culture.
We focus on two inter-related areas, both theoretically and empirically. First, we
refer to debates on MNCs and globalization, and argue that much of this literature
tends to obscure the role of employees at the workplace level and the way that global
strategies are always mediated by local circumstances and power relations. We thus
argue the need to recognise the importance of the interaction between management
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0142-5455.htm
ER
30,2
176
Received 19 March 2007
Revised 13 August 2007
Accepted 15 August 2007
Employee Relations
Vol. 30 No. 2, 2008
pp. 176-189
qEmerald Group Publishing Limited
0142-5455
DOI 10.1108/01425450810843357

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