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

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.

Citation

Lee, J. and Lee, D. (2009), "Labor‐management partnership at Korean firms: Its effects on organizational performance and industrial relations quality", Personnel Review, Vol. 38 No. 4, pp. 432-452. https://doi.org/10.1108/00483480910956364