Report Presented to International Evidence: Worker-Management Institutions and Economic Performance Conference, U.S. Commission on the Future of Worker-Management Relations.Testimony_Stirling_031494.pdf: 597 downloads, before Oct. 1, 2020

Stirling, Peter

English

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Cornell University ILR School 
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Federal Publications Key Workplace Documents 
March 1994 
The Texas Instruments Experience 
Peter Stirling 
Texas Instruments Europe 
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The Texas Instruments Experience 
Comments 
Report Presented to International Evidence: Worker-Management Institutions and Economic Performance 
Conference, U.S. Commission on the Future of Worker-Management Relations. 
Suggested Citation 
Stirling, P. (1994). The Texas Instruments experience (Report presented to International Evidence: Worker-
Management Institutions and Economic Performance Conference, U.S. Commission on the Future of 
Worker-Management Relations). Retrieved [insert date], from Cornell University, School of Industrial and 
Labor Relations site: http://digitalcommons.ilr.cornell.edu/key_workplace/380/ 
This paper is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/key_workplace/380 
U.S. COMMISSION ON THE FUTURE OF WORKER-MANAGEMENT RELATIONS 
Property of 
MARTIN P. CATHERWOOD LIBRAKv 
NEW YORK STATE SCHOOL 
INDUSTRIAL AND LABOR RELATIONS 
Cornell University 
CONFERENCE ON INTERNATIONAL EVIDENCE: 
WORKER MANAGEMENT INSTITUTIONS AND ECONOMIC PERFORMANCE 
PANEL 4 
MULTINATIONAL CORPORATIONS IN WORKER-MANAGEMENT RELATIONS AND 
ECONOMIC PERFORMANCE IN DIFFERENT NATIONAL SETTINGS 
THE TEXAS INSTRUMENTS EXPERIENCE 
PETER STIRLING 
VICE PRESIDENT, HUMAN RESOURCES 
TEXAS INSTRUMENTS EUROPE 
MARCH 14-15,1994 
WASHINGTON, D.C. 
» 
THE TEXAS INSTRUMENTS EXPERIENCE 
/. Introduction 
Over the past several years, Tl has made major changes not only in our 
business but also in the way we do business. While Tl's overseas 
facilities are located in countries with very different cultures, Tl has a 
global corporate culture which is committed to achieving "Customer 
Satisfaction through Total Quality." We expect the highest levels of 
performance and integrity from our people and Tiers around the world are 
building a quality culture where people are valued as individuals and 
treated with respect and dignity, fairness and equality. In every country, 
Tl strives to create opportunities for Tiers to develop and reach their full 
potential and to achieve their professional and personal goals. This paper 
will focus on what Tl has learned from its experience in accommodating 
its corporate culture to different employee relations systems throughout 
the world. 
II. About Texas Instruments 
Texas Instruments Incorporated, headquartered in Dallas, Texas, is a 
high technology company with 47 manufacturing plants in 18 countries 
and sales offices in more than 30 countries. We have had a presence in 
Europe and Asia for over 25 years. Tl products and services include 
semiconductors, defense electronics systems, software productivity tools, 
printers, notebook computers and consumer electronics products, 
electrical controls and metallurgical materials. 
Tl employs over 60,000 people worldwide with 37,000 in the U.S., 10,000 
in Asia/Pacific region, 6,500 in Europe, 5,500 in Japan, and 1,000 in Latin 
America. We have successfully brought together teams of Tiers to start 
up new semiconductor plants in Japan, Taiwan, Singapore, and Italy. 
Typically, these teams had representatives from at least four major 
regions, i.e. U.S., Asia, Europe, and Japan. This was done under a wide 
variety of employee relations and legal systems with very good results in 
each location. 
HI. Communication and Consultation 
Tl practices open communication both downward and upward and adjusts 
this company policy to each country's culture as necessary. Whatever the 
national system, Tl works to educate/communicate with all employees 
about the company's complete business situation. 
IV. Decision Making and Dispute Resolution 
Depending on the country, decisions affecting the workforce may be 
made in a company developed framework,(i.e. management committees) 
or in an externally legislated framework (i.e. works councils). In both 
instances employee input is an integral part of the process. 
All countries have some type of informal (internal) and formal (external) 
procedures for resolving labor disputes. Tl believes that it is in everyone's 
best interests to agree on a resolution therefore, we first try to settle 
disputes at the supervisor-employee level. Extensive supervisor training is 
provided to accomplish this. 
V. Economic Impact of National Labor Policy 
In deciding where in the world to locate a manufacturing facility, Tl 
considers many factors. The national labor policy and labor costs are but 
one significant concern. All other factors being equal however, a 
restrictive, versus a free labor market, would be a disincentive. 
VI. Social Obligations 
Tl and most international companies recognize that social responsibility is 
an inevitable component of any operation. People management policies 
are therefore, built around strong principles of ethics, fairness, and good 
corporate citizenship. The costs involved in this may be optional, direct, 
or in-line with Tl policies, e.g. almost all Tiers worldwide enjoy sponsored 
medical facilities over and above legal requirements; it may be mandated, 
e.g. high levels of social security payments to fund national retirement and 
unemployment systems; or the costs may be related to the absence of 
infrastructure in less developed countries, e.g. buses to bring employees 
to work, security measures against political instability, taxes, etc. 
VII. Conclusions 
A. While a company like Tl, which is committed to the principles of total 
quality management, is able to successfully operate in a variety of cultural 
environments, one cannot assume that the successes of one national 
labor policy can (or even should) be duplicated in the same way in 
another country. Cultural differences as simple and obvious as "a 
collective versus an individual mentality," are very significant. Even within 
Europe, the diversity in cultures is significant enough to warrant different 
labor practice approaches. • 
B. Successful international companies practice "global localization," 
meaning they think globally and act locally. Tl's own experience is that 
labor relations also succeed or fail at the local enterprise level. Most 
successful high-performance companies have value-based principles 
which go beyond the particular national labor policies. Management and 
employees should have the flexibility to meet their social and commercial 
responsibilities in the best way possible. 
C. In every country, Tl's people are its greatest asset. In seeking to 
redefine labor-management relations in the United States, the 
government should recognize and encourage policies which promote the 
development of management-employee cooperation and partnership 
rather than an environment which assumes adversarial conflict. Too often 
in the labor relations field we see management and employees locked in a 
win-lose struggle. Through whatever means possible, the key is to have 
both parties realize that the enterprise, as a whole, wins or loses against 
its competition. Therefore, management and employees must seek win-
win situations. 


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