Quality of Work Life and Organizational Structure - Term Paper Example

Faculty of Business and Law Paper two Outline of paper 2 and Annotations Newcastle Business School GSBR6002 Advanced Topics in General Management Block 1, 2014 (HKMA) Lecturer: Associate Professor Suzanne Ryan Student Name: () 1. Research Question on title page Research Question: Effect of social accountability reflected by Chinese manufacturing firm and their employees Theory: Agency theory 2. Outline of paper 2 Introduction Problem With globalization and rise of China, China has developed into world manufacturer base. The prosperous of manufacturing industry does not only brings in economic growth, but also brings in side effect on social, there are serious social problems among Chinese manufacturing firms such as violation on labour law to extend work time and weak in worker protection during work in order to meet with delivery time and constrained budget(Fung and Chan, 2011). Customer who is normally positioned at higher power, in actual, they are initiator to drive CSR implementation in China manufacturing firms. According, employees interest such as legal right has been compromised to customer and employers interest. Aim This paper is to explore that what are the effect of social accountability reflected by Chinese manufacturing firm and their employees. Summary Based on three journals regarding CSR, it carries out investigation on this common CSR misbehaviour problems by Chinese manufacturers, analyzes reason, current development and solution for this matter. Conclusion In conclusion, Chinese culture and national condition decides that customer of Chinese manufacturer is mostly initiator to perform the CSR. Body Theory: Fiedman & Lee (2013) introduce that agency theory is a concept that explains why behavior or decisions by member of group, it provides a platform to explain relationship between agency and shareholders. It suggests that management of firms is undertaken on behalf of shareholder can improve the operation efficiency and increase profitability. In another hand, they explain that agency theory can be used to explain the failure CSR. Theory Critique However, the theory fails to identify the process of communication between the shareholders and the agency something that is very important in in determining the profitability of the firm. Application It is hard to overcome interest conflicts The first article is about the Harmonious Society and its relations on Chinese CSR by Kok 2009. The second article is about Remaking the World of Chinese Labour and it deals with the key problems in the Chinese manufacturing industry by (Friedman and Lee 2013). The third article is Agency theory and it reviews the business problems in China. First Article (Kok, 2009) This article is a Strategic CSR or stakeholder theory emphasizes the balance among varieties of stakeholders, emphasizes the balance between social impact and economic impact during CSR implementation (Kok,2009). The article is a Comparative literature reviews on CSR development, exploration, to explore that how Harmonious Society will contribute to increasing CSR engagement. However, as employee, customer and employer etc are located in different positions. It is accompanying with power and interest conflicts, which is hard to be balanced (Martin Samy, 2010). The paper concluded that Hu Jintaos harmonious society is unlikely to promote CSR in China. Critique of first Article Despite the harmonious society created by Chine President, the country still continues to violate labor laws which are leading to poor working conditions. This is with regard to the large number of manufacturing companies that are located in China taking advantage of its population. With the large number of staff lacking the necessary knowledge power it is expected that this harmonious society will not lead to any positive development. The poor industrial infrastructure, lack of technology by Chinese manufacturer firm decides that customer is staying at low position in global market platform. As most of Chinese manufacturer is in OEM business type, they are mainly located in the end of global supply chain; customer takes initiative on CSR (Gu, 2011). In this case, it is hard to balance interests between customer and employer. Power distance (PDI index) measures degree of status people and hierarchy in society (Adeel Razaq, 2011). In high PDI index country such as China, society features in hierarchy; Power distribution on employee and employer decides that both parties are not equal, employer are respectful and powerful than employee (Hofstede Center, 2014). In this case, it is hard to implement the CSR, as employee is less dominant in initiative on CSR. Second Article (Friedman & Lee 2013) This article adopts Chinese manufacturer as focused group to explain behaviour of employment relationship within Chinese manufacturers. This article in this paper was aimed at aiming to address the key problem in the employment relationship among Chinese manufacturers. This paper is a dissertation paper which draws various researchers in the manufacturing field which has great weight on CSR. Chinese manufacturing company employs large amount of assembly production line workers in China. This journal focuses on this common problem in Chinese manufacturer; it has all round of analysis on causes of failure in CSR implementation. The article concludes that CSR is unlikely to reduce the labor woes in Chinese manufacturing industry and proposes the need to engage strong law enforcement. 2nd Article Critique This article mainly dwells on the manufacturing industry and fails to mention about the other industries which also require CSR. The article also fails to mention the labor laws which are constantly broken as human beings are slowly turned into machines with low wages. Third Article (Eisenhardt, K (1989) This paper looked into details regarding the relationships between agency theory and organization theory. This was meant to ensure that the agency theory helps in showing bringing out all the problems in the cooperative sector. And it argues that agency theory is revolutionary and a powerful foundation. This article which also forms the basis of our research theory contributes a better understanding corporate behaviour. The agency theory offers unique insight into information systems, outcome uncertainty, incentives, and risk (Saunders, 2009). Third Article Critique The content of this paper fails to reinforce understanding on relationship of various business agencies in relation to CSR. Conclusion Summary It is hard to balance different power and interest between employer and employee. In actual practice of Chinese manufacturing firm, customer takes imitative of CSR performance. Conclusion Through review on customers initiation of CSR implementation within China manufacturers, based on these three journals focus on CSR and its practice under global context, CSR from agency theory perspective, CSR from employee initiation perspective, it has found that agency theory can well explain relationship among different stakeholders, it decides that customer of Chinese manufacturer is normally performing as initiator to perform the CSR. The three articles are related to the theory and the research question in that they all show the effect of CSR in China. The articles also highlight various factors which affects worker in large multinational and other private companies in China. Further research As time went by, with increasing legal conscious and involvement of non-governmental organization, this situation is gradually changing. Further study may focus on employee initiation. 3. Annotation of three articles REFERENCE Kok H (2009) Harmonious Society and Chinese CSR: Is There Really a Link? Journal of Business Ethics,89(1): 1-22 AIM/PURPOSE The aim and purpose is to have in-depth understanding on CSR engagement from perspective of CSR theories and practice. ARTICLE TYPE AND PARADIGM Scholarly articles based on qualitative study. METHOD (research papers only) Comparative literature reviews on CSR development, exploration, to explore that how Harmonious Society will contribute to increasing CSR engagement. The method of study included qualitative study that also engaged in various literature reviews to come up with reliable information. APPROACH (research papers only) This paper is consisting of four parts, significant of CSR, new change of CSR, promote CSR. In this article, it introduces that CSR movement has mushroomed within Chinese society with presidents advocating on harmonious Society and Chinese CSR , it is to integrate the CSR objectives into core value. FINDINGS (research only) They point out that president; Hu Jintaos harmonious society is unlikely to promote CSR in China’s growing private sector because policy measures that affect the “constraints” driving CSR are bounded by other political considerations. However, CSR concept can be taken as development strategy of companies, it combines the business philosophy of sustainable development into CSR. CONCLUSION (research only) The CSR implementation of China is constrained by environmental constraints and discretionary responses. RELATIONSHIP TO OTHER ANNOTATED REFERENCES This article has a relationship with the other annotated reference in that it highlights the relationship between CSR and other companies just like the other article do. STRENGTHS Multi-faceted, comprehensive in illustration on CSR. The article involved qualitative research design The article was able to determine almost all the challenges related to CSR in China. WEAKNESSES It is weak in solution based on CSR practice in that it was not able to provide enough solutions of the CSR There is no proper guideline and possible recommendations as to how to encourage CSR. REFERENCE Friedman,E & Lee, CK(2013) Remaking the World of Chinese Labour: A 30-Year Retrospective ,British Journal of Industrial Relations, 48(3):507-533 AIM/PURPOSE This article is selected aiming to addresses key problems in employment relationship among Chinese manufacturers. ARTICLE TYPE AND PARADIGM dissertation research/academic research METHOD (research papers only) Literature reviews The article draws in various researches that have been done in relation to CSR. Most of the articles selected are recent articles that are addressing not only labour relations but also the need for sustainable development by ensuring protection of the environment. Most of the articles selected in the review are genuine and highly recommended for study in the area of CSR. APPROACH (research papers only) This article adopts Chinese manufacturer as focused group to explain behaviour of employment relationship within Chinese manufacturers. Chinese manufacturing company employs large amount of assembly production line workers in China. This journal focuses on this common problem in Chinese manufacturer; it has all round of analysis on causes of failure in CSR implementation. Restricting by OEM business nature of manufacturer, most Chinese manufacturer is staying at the end of international supply chain; International customer is dominant in global supply chain, it is with low bargaining power. Therefore, manufacturer is hard to comply law due to financial constrain and limited resource.I FINDINGS (research only) This paper implies that solution for this social problem which is likely to eliminate compulsory overtime. In addition, supplier ethic audit reports by Apple and influence by non-governmental organizations can effectively regulate behaviour of Chinese manufacturer. CONCLUSION (research only) The serious social problems in Chinese manufacturer is raised by systematic problems, further to, results in violation of both Chinese labour law and international labour standards, It illustrates that relationship of each parties in global supply chain through analysis on problem from perspective of international customers, As MNCs has used outsourcing production of goods from developing countries, advantage of China made product mainly lies in low labour costs. In addition, Chinese national condition has decided that Chinese manufacturers are with less choice in global supply chain, further to harm relationship with employee in order to build up relationship with customer. RELATIONSHIP TO OTHER ANNOTATED REFERENCES This paper highlights the solutions related to CSR something that all the other annotations do. This is also in line with the topic of discussion STRENGTHS Validity with supported by all round of analysis based on quantitative survey data by existing literatures. Due to the combination of the various authors most of the information is valid and reliable making this article more important for the topic of study The article has been able to provide a wider basis of evaluation due to the large number of author’s contribution. The article focused on the manufacturing sector an area that is responsible for depletion and degradation of environmental resources hence the need to encourage CSR WEAKNESSES Despite the huge number of authors contribution, this article was unable to representative all business cases and mainly narrowed on the manufacturing sector only. REFERENCE Eisenhardt, K(1989) Agency theory: an assessment and review, Academy of Management review , 14(1), 57 - 74 AIM/PURPOSE This paper is selected for that it has employed agency theory to explain and review business problems. ARTICLE TYPE AND PARADIGM Non research type of paper that analyses and makes reviews about businesses METHOD (research papers only) It reviews agency theory, and analyzes its contributions to organization theory, and carries out empirical work and develop testable propositions. APPROACH (research papers only) This is a non-research paper but just a review of the business problems. This paper has investigated relationships between agency theory and organization theory. In order to better employ the agency theory to testify the problem of cooperative effort. And it argues that agency theory is revolutionary and a powerful foundation. Consequently, agency theory contributes a better understanding corporate behaviour . FINDINGS (research only) The agency theory offers unique insight into information systems, outcome uncertainty, incentives, and risk. From an empirically valid perspective, particularly when coupled with complementary perspectives. In addition, it also has negative impact on financial effects. Therefore, it is meaningful to use it in actual company governance. CONCLUSION (research only) The principal recommendation is to incorporate an agency perspective in studies of the many problems having a cooperative structure. RELATIONSHIP TO OTHER ANNOTATED REFERENCES This paper takes the name of the theory under study. It is a review which aims at exploring business within China and SCR something that all the other annotations mention in one way or the other. STRENGTHS This paper is an evaluation paper that identifies the strengths and weaknesses of the business industry hence able to be used in decision making. This paper is also logical in research process, specific in topic which places them in actual practice. WEAKNESSES It does not address clear management problem, therefore, it is too broad and lack of testable implications. The paper is drawn away from the main aim or scope of the study bu however provides clear reviews of certain businesses in Chinese market. References Adeel Razaq, M. Y. (2011). Impact of CSR, Quality of Work Life and Organizational Structure on Employee’s Performance in Pakistan. Journal of Social and Development Sciences, Vol. 2, No. 2, pp. 66-72. Eisenhardt, K(1989) Agency theory: an assessment and review, Academy of Management review , 14(1), 57 - 74 Fiedman,E & Lee, CK(2013) Remaking the World of Chinese Labour: A 30-Year Retrospective ,British Journal of Industrial Relations, 48(3):507-533 Fung, B., and Chan, F(2011) OSH Status Report: China, Hong Kong: Asia Monitor Resource Centre Gu, YX (2011)The analysis on Foxconn staff suicide by jump through high building, HRM journal 2011, 12(3):12-14 Hofstede Center (2014) official website, Retrieved from < http://geert-hofstede.com/countries.html >accessed on 2014,April 6 Josephs, H(2013)Productions Chains and Workplace Law Violations: The Case of Apple and Foxconn 3(2): 211-229  Kok H (2009) Harmonious Society and Chinese CSR: Is There Really a Link? Journal of Business Ethics,89(1): 1-22 Martin Samy, G. O. (2010). Emerald Article: Corporate social responsibility: a strategy forsustainable business success. An analysis of 20 selected British companies. Journal of Corporate Governance, Vol. 10 Iss: 2 pp. 203 - 217. Saunders, M. L. (2009). Research methods for business students (5thed.). London, England: Prentice-Hall. Read More