Challenges in the Management of Diversified Companies: The Changin Face of Corporate Labor Relations

For at least twenty‐five years, researchers in general management have maintained that well managed companies succeed in achieving a tight fit between long‐term corporate goals and their policies for marketing, production, and other functions. Rarely is the nature of this fit explored in detail or in breadth, particularly for diversified firms. While it is generally acknowledged that managing a diversified firm is different and more complex than managing a single business, our knowledge has been sketchy regarding ways to achieve this fit between functional policies and corporate strategy in diversified companies. The author presents the results of a two‐part study which investigates how managers in such firms are achieving fit between corporate strategy and the labor relations function. The study throws some light on problems facing firms across the country as they respond to major shifts occurring in U.S. labor markets.