Communication, Consultation and the HRM Debate

Early discussions of management gave little emphasis to communication. Although it was implicit in the management function of command and the structural principle of hierarchy, Luthans (1992) argues that the early theorists never fully appreciated its significance or fully developed or integrated it into management. More recently, since the concept first came to prominence in the early 1980s, communication and consultation with employees has held a central place in the discussion and practice of human resource management. The European Union’s Work Councils Directive has brought the debate on communication and consultation into even sharper focus. It requires the establishment of employee work councils in organisations with 1000 employees or more in any member state and with 150 employees or more in each of at least two member states. As we write, the European Commission is exploring the notion of national works councils being made mandatory in all countries of the EU. Today, the popular literature promulgates the notion that in the high performance organisation, information is a tool, not a privilege. The overarching philosophy is that everyone in the organisation must have access to the maximum amount of information that is reasonable for them to assimilate, understand and utilise.