The labour relations heritage and lean manufacturing at Fiat

Abstract

The objective of the paper is interpreting, from an evolutionary perspective, recent developments of work organization and human resource management policies at Fiat Auto, one of the world's largest automobile manufacturers, which achieved a successful restructuring in the early 1990s. Building on a heritage of adversarial labour relations and ‘mass production’ organizational principles, Fiat developed an original and to some extent hybrid version of ‘lean’ human resource management practices (teamwork, flexible compensation, multi-skilling, etc.). The paper analyses this process of organizational change from an evolutionary perspective based on the concept of dynamic capabilities. From this standpoint, IR. HRM and work organization practices are the result of a learning process, based on original development, imitation, analogical replication, combination and selection of organizational capabilities; organizational capabilities have a cumulative and path-dependent nature; workplace innovations are also r...