Transferring a lean production concept from Germany to the United States: The impact of labor laws and training systems

Academy of Management Executive

Volumn 19, Issue 2, 2005, Pages 50-58

  Friel, Daniel ^a  

^a UNIVERSIDAD DE SAN ANDRÉS   (Argentina)

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[No Author keywords available]

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EID: 20644435116     PISSN: 10795545     EISSN: None     Source Type: Journal    
DOI: 10.5465/AME.2005.16962752     Document Type: Article

References (52)

1. The name of the German firm has been altered in order to honor confidentiality agreements that this author signed in order to achieve the necessary access to relevant employees and materials. Although it may not be common practice for scholars in the United States to withhold the name of the company they study, it is rather common in Germany and it is often the condition of receiving such access.
2. Womack, J.P., Jones, D.T., & Roos, D. 1990. The machine that changed the world. New York: Macmillan;
3. Faust, M., Jaunch, P., Brünnecke, & Deutschmann. 1994. Dezentralisierung von Unternehmen. Bürokratie- und Hierarchieabbau und die Rolle betrieblicher Arbeitspolitik. Munic: Rainer Hampp.
4. Weinstein, M. & Kochan, T. 1995. "The limits of diffusion: Recent developments in industrial relations and human resource practices in the United States." In R. Locke, T. Kochan, & M. Piore (Eds.) Employment relations in a changing world economy. Cambridge Massachusetts: MIT Press
5. Bradsher, K. 2001. "The reality behind the slogan: Saturn Unit, once a maverick, is looking a lot more like G.M." New York Times, 23 August, D-1.
6. Turner, L. 1991. Democracy at work: Changing world markets and the future of labor unions. Ithaca: Cornell University Press.
7. Womack, J., D. Jones, and D. Roos. 1990.
8. This article builds on the work of Hall and Soskice. They demonstrate how institutional structures create either obstacles or support for different types of strategies cross-nationally. See Hall, P & Soskice, D. 2001. "Introduction." In P. Hall and D. Soskice (Eds.) Varieties of capitalism: The institutional foundations of comparative advantage. London: Oxford University Press
9. Turner, 1991, op. cit.
10. The name of this person has been altered to honor the confidentiality agreement mentioned above.
11. The data for the case study were collected during visits this author made to the factories in Germany and the United States. The trip to the German facility occurred in the summer of 1996 while the trip to the U.S. factory took place in the spring of 2001. During both of these visits I had the opportunity to tour the facilities and get a first-hand feeling for how lean production was, or was not, working. At the German facility I conducted open-ended interviews with the following people: the Managing Director of one of the business units, the Director of Human Resources, the Director of Purchasing/Logistics, the Director of Research and Development for one of the business units, the Director of Sales and Marketing for one of the business units, the Director of Special Services, the Director of Training, the Director of the Works Council, a former foreman, an Internal Consultant, a Manager in Human Resources, a Manager in the Quality Control Department, a Process Manager, and a Quality Control Director. All of the people interviewed at this facility were native Germans. Similar interviews were conducted with the following people at the U.S. facility: the General Manager of the plant, the Director of Human Resources, the Director of Lean Production, the Director of Purchasing, the Director of Quality Control, the Director of Research and Development, a Manager in the Quality Control, and a project manager. All of the people interviewed at this facility were native to the United States except for Mr. Shepke. I took notes rather than record the interviews at both of these facilities.
12. Arbeitsgesetze. 2001. Munich: Deuscher Taschenverlag.
13. I b i d.
14. I b i d.
15. Schömann, K., R. Rogowski, N., & T. Kruppe 1998. Labor market efficiency in the European Union: Employment protection and fixed-term contracts. New York: Routledge.
16. Arbeitsgesetze. 2001, op. cit.
17. Arbeitsgesetze 2001 & Weiss, M. & Schmidt, M. 2000. Labor law and industrial relations in Germany. Boston: Kluwer Law International.
18. Hielscher, V. 2000. "Entgrenzung von Arbeit und Leben: Die Flexibilisierung von Arbeitszeiten und ihre Folgewirkung fuer die Beschaeftigten." Working Paper, Wissenschaftzentrum Berlin fuer Sozialforschung
19. This claim was made by the Director of Training at the German facility on June 17, 1996. The literature also supports this assertion. See Baethge, M. & H. Wolf. 1995. "Continuity and change in the German model of industrial relations." In R. Locke, T. Kochan, & M. Piore. Employment relations in a changing world economy. Cambridge Massachusetts: MIT Press.
20. Based on an interview with a former head foreman conducted on June 13, 1996.
21. Arbeitsgesetze, 2001, op. cit.
22. Based on an interview with the director of the works council on June 27, 1996.
23. House, R., Hanges, P., Ruiz-Quintanilla, S., Dorfman, P., Javidan, M., Dickson, M., & Gupta, V. Cultural influences on leadership and organizations: Project Globe, http://leadership. wharton.upenn.edu/l_change/publications/House/ Culturaal%20Influences%20onLeadership%20-%20House%20.doc, accessed May 25, 2004.
24. See Brodbeck, F., Frese, M., & Javidan, M. 2002.Leadership made in Germany: Low on compassion, high on performance. Academy of Management Executive. 16(1): 16-29.
25. The information about Mr. Shepke's managerial style arose in interviews conducted with the Director of Research and Development and the Director of Sales and Marketing in his business unit in Germany. The latter manager actually disliked this style, as he was more authoritarian in his managerial style. The interview with the Director of Research and Development occurred on June 7, 1996 and the interview with the Director of Sales and Marketing occurred on June, 10 1996.
26. Gould IV, W. 1993. "Employment protection and job security in the United States and Japan." In R. Locke, T. Kochan, & M. Piore. Employment relations in a changing world economy. Cambridge, Massachusetts: MIT Press.
27. Osterman, P., Kochan, T., Locke, R., & Piore, M.. 2001. Working in America: A Blueprint for the new labor market. Cambridge Massachusetts: MIT Press.
28. Carnoy, M., Castells, M., & Benner, C.. 1997. "Labor markets and employment practices in the age of flexibility: A case study of Silicon Valley," International Labour Review 136(1): 27-48.
29. National Association of Manufacturers. 1998. The skills gap: The shortage of qualified workers. Washington D.C: National Association of Manufacturers.
30. Walsh, S., London, R., McCanne, D., Needels, K., Nicholson, W., & Kerachsky, S. 1997. "Evaluation of Short-time compensation programs: Final report" Washington D.C: Department of Labor.
31. Based on an interview with Mr. Shepke conducted on March 14.
32. Malpus, D. 2001. "Shared work programs" National Public Radio: Morning Edition, 24 December.
33. Department of Labor. 2002. "The Fair Labor Standards Act of 1938, as Amended (29 U.S.C. 201, et seq.)" access http://www. dol.gov/esa/regs/statutes/whd/0002.fair.pdf, accessed April 15, 2001.
34. Myers, H. 1968. Labor law and legislation. Chicago: Southwestern Publishing.
35. National Association of Manufacturers, 1998.
36. I b i d.
37. Based on an interview with Mr. Shepke conducted on March 17, 2001.
38. Based on an interview with the director of quality control on March 17, 2001.
39. Based on an interview with the director of lean production on March 15, 2001.
40. Piore, M. & Sabel, C. 1984. The second industrial divide: Possibilities for prosperity. New York: Basic Books.
41. Ngai, M. M. 1997. "Workplace education and labor-management cooperation in small- and medium-sized urban manufacturing." In B. Nissen (Ed.) Unions and workplace reorganization. Detroit: Wayne State University Press
42. Bradsher, 2001.
43. Ngai, 1997.
44. Adler, P., Kochan, T., Mac Duffie, J.P., Pil, F., & Rubenstein, S. 1997. "United States: Variation on a theme" in Kochan, Thomas, et al. (Eds.), After lean production. New York: Cornell University Press
45. Based on an interview conducted with Mr. Shepke, conducted on March 17, 2001.
46. Based on an interview with a manager in quality control on March 13, 2001.
47. This team meeting of one of the project groups occurred on March 21, 2001.
48. Based on an interview with Mr. Shepke on March 17, 2001 and an interview with a manager in quality control on March 13, 2001
49. Based on a telephone interview with Mr. Shepke conducted on April 21, 2001.
50. Six Sigma is a rigorous and disciplined methodology that uses data and statistical analysis to measure and improve a company's operational performance by identifying and eliminating "defects" in manufacturing and service-related processes. Many major corporations have adopted Six Sigma., though critics argue that it does not encourage creativity or innovation.
51. Mathews and Wacker contend that Six Sigma is antithetical to creativity and innovation as it focuses simply on correcting existing problems. Contrary to fostering innovation this program can actually destroy any existing innovative system in a company. See Mathews, R. & Wacker, W. 2002. The deviant's advantage: How fringe ideas create mass markets. Boston: Crown Business Publications.
52. I am thankful to an anonymous reviewer for helping me to clarify this point.