Corporate governance and HRM

This chapter begins with a comparison of different definitions of corporate governance arguing that governance structures are the end results of social and political processes. The chapter then moves on to discuss different corporate governance mechanisms and how employees in each mechanism are considered. Three governance mechanisms, namely the Anglo-Saxon mechanism in the UK, the stakeholder approach in Germany and the Japanese corporate governance mechanism are discussed. This is followed by a review of the development of those aspects of the regulatory codes that could have impacts on employees. The chapter ends with a section on three theoretical perspectives that are commonly used in corporate governance literature and how employees are positioned in governance structure within each theoretical perspective