Discussion Papers

No.723 Adoption of High Performance Work Organization, Trade Unions and Employment Redundancy in India

by Hitoshi Ota

July 2018


Following Osterman's research framework of High Performance Work Organizations (HPWOs), the author, using his data sets from the three surveys conducted in India in 2001 and in 2011-2012, examined the adoption and diffusion of HPWOs in India and the factors behind them. It was found that HPWOs spread in India between 2000 and 2011, showing the regional variations in the diffusion and the contributing factors behind the adoption. The opposition of the trade unions against the HPWOs would become less significant once a single HPWO practice was introduced in the workplace. While the HPWOs did not show any significant association, the analysis suggests that trade unions affect managerial decisions to a greater degree than India's restrictive labor law against employment downsizing.

Keywords:High Performance Work Organizations (HPWOs), Trade Union, India, Employment Security, Labour Laws

JEL classification:J51, J53, M51, M54

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