Case study 3.2 Effects of institutional change on large hotels in New Zealand

Employment relations systems reflect the society in which they operate.4 Hofstede (1980, 1991) has shown that people in different countries approach work in different ways. Interestingly many of the countries discussed in this book (Australia, Canada, Britain, New Zealand and the US) display ‘Anglo’ characteristics – a belief in equality, acceptance of uncertainty, emphasis on personal initiative and achievement, and the right to a private life. Money and material standards are important. By contrast European countries, largely in relation to geographical location, fall into four groups and are more diverse (see Pugh and Hickson, 1996: 91). Approaches that may work well in one country do not necessarily transplant well to other countries. Local managers may resist the incursion of expatriate managers who are socialized in a different culture ( Jones et al., 1998). The application of western practices to transitional economies such as Bulgaria (Anastassova and Purcell, 1995), and Russia (D’Annunzio-Green, 2002) may be difficult to achieve, particularly in Slovakia where there are few MNCs (Lucas et al., forthcoming). Differences in national institutional arrangements and the extent to which employment systems rely on detailed regulation and labour codes contribute to national cultural differences. Changes to national institutions have not necessarily impacted upon employment relations practices (Case study 3.2).