Introduction
Since the beginning of the twentieth century, the varieties of capitalism (VOC) have dominated comparative research on contemporary capitalists. The conceptual model for relative employee engagement offers a systematic institutional study space. Nevertheless, more focus on the political challenges and the unequal and interdependent evolution of regional capitalism needs to complement capitalism’s different approaches.
However, this dichotomy was criticized for simplicity; it sets the fundamental theoretical basis for VOC study and has also been used with various amendments to comparative employee engagement since the second half of the 2000s (Thelen, 2012). A proper understanding of labor relations encompasses analytical approaches in various academic disciplines, such as accounting, economy, law, science, sociology, and other management science aspects. This article aims to provide strengths and limitations in the various capitalist framework styles in research comparative labor relations.
Strengths of the Varieties of Capitalism Framework
The approach to the VOC gives new conceptual and analytical inspirations for studying and contrasting with advanced countries. It draws attention to institutions’ holistic character, establishing reasonably consistent trends in “new” post-socialist capitalism states. For twenty years after 1981, the recompense for adjusting working time remained relatively constant: personnel had more flexibility by using working hours to reduce overall operating time and conditions for negotiating work time changes (Baccaro & Howell, 2011). It contains a vast cognitive capacity that is useful to discuss social changes and the discrepancies between various capitalist variants in the area. It can recognize strategic dilemmas, options, and weaknesses in countries pursuing the “optimal” modern capitalism model.
The VOC approach combines empirical findings from many fields, including political theory, sociology, economics, law, and psychology, into neo-institutional strategies. VOC methodology claims that the primary objective of changes in industrialized capitalism’s industrial relations structures, including widespread weakening of labor and shifting ever more regulatory problems to the company stage, is fundamentally capitalist amid variations in institutional type (Baccaro & Howell, 2011).
The public discourse has a particular deficiency in comparable employment relations and this strategy is focused on the neo-institutional framework. It also offers theoretical and analytical methods to recognize the commonalities and dissimilarities between countries and groups of nations in the region. Each economy has unique capabilities and frameworks for collaboration that fit what businesses and governments do. Emerging varieties of capitalism paradigm have thus proven to motivate even post-communist nations, including some alternate conceptions of capitalism’s variety.
Another strength of the VOC approach is concentrating on regional, sectoral, and social responses to the turmoil and the challenges raised by globalisation, including globally characterized government policies. For example, The French State was much more active in labor market control, essentially replacing trade union failure and union representation (Baccaro & Howell, 2011). It also offers a useful study of national priorities translating into international affairs.
These priorities generally derive from competitive organizations and capitalism frameworks, which primarily explain divergences between the authorities of developed nations’ strategies. The study of labor relations should concentrate on labor laws and the broader economic and social effect on the potential importance of capital and labor and connections between employers, workers, group organizations, and the government.
Limitations of the Varieties of the Capitalism Approach
Both the central concept of capitalism versions and the causes for their divergence and the models’ main characteristics are negated. Alternative models of capitalism arise from the theory’s past and its application in other areas of the world. Thus, the VOC approach and critique were chosen for the paper, therefore considering general and comparative issues. For example, the German national and trade framework plus separate legal enrichment rights for employees at the work level have allowed pressure to be put on the current institutional configuration to be decentralized (Wailes, Bamber, & Lansbury, 2011).
Another source of uncertainty was created by creating a capitalist typology referring to different relevant theories and methodological parameters and different qualitative and quantitative operationalization of the capitalism approach varieties.
The VOC view is criticized for excessive assertions, suggesting that empiricism varies from the typological hypothesis. The primary theory does not know the specifics of employment relations. Wailes et al. (2011) studies demonstrate that German labor relations in a comparative context are examples of the employment relations paradigm’s comprehensive framework. Both claim that Germany’s “dual structure” of industrial relations has better allowed German unions to resist globalization pressures than their peers in the United States and Sweden.
Wailes et al. (2011) contrast the participation of industrial restructuring unions in Germany and the US and emphasizes the position institutional arrangement gaps have played in deciding employers’ and employees’ response to foreign economic sanctions. The critical controversy stems from the fact that generalizations and findings from VOC studies were initially confined to a small number of advanced countries.
VOC leads to inherited inequalities in the labour market. The legal concept of private estate and the desire to share the prosperity of subsequent generations are the basis of a capitalist society. For example, Wailes et al. (2011) demonstrate the degree to which production globalization creates possibilities and threats for employees and how international dimensions can contribute to shaping outcomes for employment. Capitalists claim that hard work pays fairness for a capitalist society. On the other hand, citizens can be affluent simply because they have money or have joined the wealthy elite. Therefore, capitalist society struggles to achieve equality, but it also fails to offer fairness and equality.
Conclusion
In conclusion, analyzing the effects of globalization, the varieties of the capitalist approach overcome some of the institutionalized approach’s weaknesses stated in the previous section. By focusing on interrelationships between institutional arrangements, the institutional perspective overcomes the propensity to treat employment isolation entities. Moreover, the firm core of the VOC overpowers bureaucratic analyses to perceive institutions as distinct from the social players involved.
The emphasis on the coordination issues facing individual businesses helps employers return to the study of shifts in relationships with jobs. It has been used to describe cross-border similarities and disparities, particularly employee engagement, and technical training programs. In this context, VoC methodology should be viewed mainly as a plan for potential tests, rather than a ready-made theory of all.
References
Baccaro, L., & Howell, C. (2011). A common neoliberal trajectory: The transformation of industrial relations in advanced capitalism. Politics & Society, 39(4), 521-563. Web.
Thelen, K. (2012). Varieties of Capitalism: Trajectories of liberalization and the new politics of social solidarity. Annual Review of Political Science, 15, 137-159. Web.
Wailes, N., Bamber, G. J., & Lansbury, R. D. (2011). International and comparative employment relations: An introduction. In International and Comparative Employment Relations: Globalisation and Change, (5th ed., pp. 1-35). Crows Nest, Australia: Allen & Unwin.