4.5k-word paper(2nd) for Brillant Answer
Vincent666
classnote-Session6.Organizationalmanagerialresponsestothecurrentpressuresinthesystem.pdf
10/26/19
1
Organizational / managerial responses to the current pressures in the system: Performance management and increased flexibility
Dr Igor Menezes
1
Managing employment relations
Twentieth century: employers recognised unions for collective bargaining so as to mitigate disruption and foster order and stability (Hyman, 1975).
Acceptance of union legitimacy but with the intention to restrict its influence over employment relations in the workplace.
Decline of the unions: managers have more opportunities to shape and influence employment relations.
2
Managing employment relations
Unsophisticated managerial control systems, the lack of complex managerial hierarchies in firms, and the slow and relatively late, diffusion of scientific management techniques (Tolliday and Zeitlin 1991 ; Gospel1992).
Managers were encouraged to take greater control over employment relations in the workplace by formally recognising the legitimacy of shop- floor unionism rather than by trying to extinguish it, something that would only cause greater disruption.
Donovan identified managerial weakness as a prime source of Britain’s employment relations problems: managers should secure greater control over workplace employment relations (Royal Commission 1968).
3
10/26/19
2
Managing employment relations
To encourage order and stability: productivity bargaining (Reaching an agreement between employers and employees in which employees agree to measures wanted by the employer that will raise productivity, in return for an increase in pay or improvement in other working conditions).
It represented an attempt by management to secure control of the workplace through cooperative means, by explicitly recognising the legitimacy of the unions as the representatives of the workforce, rather than trying to marginalise or exclude them (Flanders, 1964).
4
Managing employment relations
Limited productivity gains; the agreements ultimately undermined union power in the workplace.
Closed shop agreement: a contract between an employer and a labour union that stipulates that the employer will only hire workers from a specific union and those workers can only remain with that employer while they are a part of the union that the agreement covers.
5
Challenging trade unionism
1980s to 1990s: substantial fall in the incidence of union recognition, particularly in the private sector (Blanchflower and Bntson 2009 ; Simms and Charlwood 2010).
Employers increasingly turned 'their back on trade unions’. Employers were never legally obliged to deal with a union.
Employers attempted not to recognise unions, challenge their role, suppress trade unions, by victimizing union representatives for example.
6
10/26/19
3
Challenging trade unionism
Outcome of the 1997 Labour government’s commitment: introducing a measure that would oblige employers to recognize a union where the majority of the workforce wanted it (DTI 1998).
However, it ended up being favourable to employers: narrow conception of what constitutes legitimate union representation, based on demonstrating majority support in a workplace ballot.
Nearly half of all employees (47%) are in workplaces where there is a recognised union.
7
Employers’ responses to union recognition claims
Declining number of newrecognition agreements:
union suppression: use of anti-union consultants, the victimization of union activists, and other intimidatory tactics designed to forestall a union presence.
Attempt to influence the outcome of a recognition ballot by threatening that unionization could damage the interests of the business, perhaps by putting future investment plans in jeopardy, and thus pose a risk to jobs.
8
Employers’ responses to union recognition claims
Substitutionist approach: providing employees with alternative, in-house methods of representation such as a company council, or using rewards, like pay rises, to demonstrate that union recognition is unnecessary.
Companies like The Body Shop and Pizza Express have developed employee involvement and communications arrangements in an attempt to demonstrate to their staff that they do not need union representation.
Refusing to engage meaningfully with the union even after recognition has been granted.
9
10/26/19
4
Sophisticated HRM and employment relations
Sophisticated HRM vs Personnel Management: issues that arose from having to deal with unions vs developing and sustaining a climate in which individual employees feel valued and engaged, in a way that promotes trust and enhances organizational performance (Emmott 2005, 2015).
Greater emphasis on the fit between employment policies and the overall business objectives of the organization.
Preference for weak or non-existent trade unions. Threatening unions by seeking to bind individual employees to the organization and reducing the potential for conflict of interest.
10
Sophisticated HRM and employment relations
Could a sophisticated HRM hinder the recognition of trade unions?
Could “seeking to bind individual employees to the organization” reduce the potential for conflict of interest?
Do you agree with this?: “Under a sophisticated HRM regime there is a greater emphasis on techniques for managing organisational culture (Bolton, 2004; Legge, 2005).
Do you believe that monitor and manage employee performance is a way of exerting tighter control over the activities of the workers?
11
Employee Voice
Employee voice is the means by which people communicate their views to their employer.
It’s the main way employees can influence matters that affect them at work.
For employers, effective voice contributes toward innovation, productivity and organisational improvement. For employees, it often results in increased job satisfaction, greater influence and better opportunities for development.
12
10/26/19
5
Employee Voice
There are two main types of activist reactions to discontent with organizations to which one belongs or with which one does business: either to VOICE one's complaints, while continuing as a member or customer, in the hope of improving matters ; or to EXIT from the organization, to take one's business elsewhere.
“There is an emphasis on conveying information to employees, with the aim of influencing their behaviour, rather than allowing employees
opportunities to exercise genuine voice” (Danford et al. 2005)
13
Employee Voice
Giving employees greater influence and voice over the organization of their work and changes in work processes is essential if companies are to secure the levels of commitment necessary for the production of high-quality goods and services, and thus thrive in increasingly competitive global markets (Boxall and Purcell 2011 ).
14
Employee Engagement
The importance of Organisational Commitment
$720 million spent on improving employee engagement (Bersin and Associates, 2012) and that it was projected to rise to over $1.5 billion (HBR, 2015).
15
10/26/19
6
Employee Engagement
Organisational commitment is "the relative strength of an individual's identification with and
involvement in a particular organization" (Mowday, Steers & Porter, 1979, p.226).
16
Correlates of commitment
Identification (A sh fo rth & M a e l, 1 9 8 9 ;
B ro w n , 1 9 6 9 ; H a ll & Sc h n e id e r, 1 9 7 2 ; Le e , 1 9 7 1 ; M o w d a y, Ste e rs & P o rte r, 1 9 7 9 ; R ike tta , 2 0 0 5 ; Ta jfe l,
1 9 7 8 ) Organisational Commitment
Involvement (Etzio n i, 1 9 7 5 ; Lo d a h l & K e jn e r, 1 9 6 5 ;
M o rro w , 1 9 8 3 ; M o w d a y, Ste e rs & P o rte r, 1 9 7 9 )
Citizenship (K a tz & K a h n , 1 9 7 4 ; La th a n ,
M illm a n & K a ra m b a ya , 1 9 9 7 ; O rg a n & R ya n , 1 9 9 5 ; P o rto & Ta m a yo , 2 0 0 3 ; R e g o , 2 0 0 2 )
Psychological Contract (R o b in so n & R o u sse a u , 1 9 9 4 ; R o u sse a u , 1 9 8 9 ,
1 9 9 5 )
Loyalty (B e ye r, H a n n a h & M ilto n , 2 0 0 0 ; C h e n , Tsu i & Fa rh ,
2 0 0 2 ; C h e n e y, 1 9 8 2 ; P a tc h e n , 1 9 7 0 ; U g b o ro ,
1 9 9 3 )
Obedience (C o sta & Silv a , 2 0 0 9 ; K e lm a n ,
1 9 5 8 ; O ’R e illy & C h a tm a n , 1 9 8 6 )
Entrenchment (A g u ia r, 2 0 0 9 ; C a rso n ,
C a rso n & B e d e ia n , 1 9 9 5 )
17
Correlates of commitment
Organizational Commitment is a core predictor of employee’s attitude to the organization and is a strong indicator
of turnover behaviour.
18
10/26/19
7
Correlates of commitment Allen & Meyer (1990)
19
Employee Voice
For Purcell (2014: 244), the purpose of employee engagement is to get better workers and indoctrinate them on organizational goals and their role in achieving them... Taking us back to a dangerously simplistic view of work relations'.
20
Employment relations and performance
Sophisticated HRM:
emphasis on managing employees in a way that enhances business performance
vs
Traditional pluralist approach: manage with, and accommodate the effects of, trade unionism and collective
bargaining.
21
10/26/19
8
Employment relations and performance
There are four types of practice deemed to be particularly powerful when it comes to generating commitment (White et al. 2004 Kersley et al. 2006):
• The presence of formal team working arrangements • The existence of a functionally flexible workforce • The operation of employee voice and involvement practices. • The use of sophisticated reward mechanisms which offer incentives to
workers for demonstrating commitment and performing well.
High commitment practices are claimed to improve business performance by producing a better quality workforce who are more committed to, and engaged with, business goals because they enjoy more fulfilling working lives.
22
Employment relations and performance
There is no consensus about the implications of sophisticated HRM for organisational performance:
1. The prevalence of high commitment practices remains rather Iow. The high commitment approach to managing people at work is present in only a minority of workplaces, and does not appear to have become more widespread.
2. Research studies in this area tend to exaggerate the association between high commitment HRM and business performance.
3. There is no consensus on what practices should comprise the high commitment management approach.
23
Employment relations and performance
There is no consensus about the implications of sophisticated HRM for organisational performance:
4. One of the key assumptions underpinning the high commitment approach - that improvements in business performance result from a better quality of working life for employees because it raises their productivity - is questionable.
5. In the high commitment approach there is often a tendency to treat human resource practices as formal managerial interventions, readily identifiable and thus, when presented as variables, making the effects of their presence supposedly easy to measure.
24
10/26/19
9
Employment relations and performance
There is no consensus about the implications of sophisticated HRM for organisational performance:
6. The research methodology that underpins studies of the relationship between sophisticated HRM and performance raises doubts about the appropriateness of the high commitment paradigm and its contribution.
Use of high commitment practices can be patronising and insulting if workers perform well due to strict control and need to conform with tight financial constraints and job instability.
25
Human relations movement
It was initiated by Elton Mayo, a social scientist from Harvard University, with a series of investigations conducted at the Hawthorne works of the Western Electric Company in Chicago, between 1927 and 1932.
Hawthorne experiments
26
Human relations movement
New Human Relations: 1950
• It recognises that employees have great potential to perform and they should not be treated as submissive, compliant creatures.
• Focused on the psychological needs of employees.
• Studies covering a variety of perspectives in neo-human relations were conducted by researchers.
27
10/26/19
10
Human relations movement
New Human Relations: 1950
• 1972 creation of the Work Research Unit in the UK Department of Employment.
"promote applicable research, and to encourage the application of organizational principles and working practices that would enhance both
industrial efficiency and the quality of working life" (Shimmin & Wallis, 1994).
28
Human relations movement
New Human Relations: 1950
Quality of working life (QWL)
• Adequate and fair remuneration. • Safe and healthy work environments. • Work routines that minimize disruption to leisure and the need of families. • Jobs that develop human capacities.
29
Human relations movement
New Human Relations: 1950
Quality of working life (QWL)
• Opportunities for personal growth and security • A social environment that promotes personal identity, escape from prejudice,
a sense of community, and upward mobility. • A right to personal privacy and right to dissent. • Organizations that are socially responsible.
30
10/26/19
11
Working Time and Employment Relations
• Working time (length, pattern, and use): exchange of wages for latent labour power. Employer buys time.
• Working time has long been an issue on which trade unions have campaigned, for a shorter working week in particular.
• Attracted attention: harmful effects of excessive hours (‘long hours culture’).
• Affected by a greater degree of legal regulation ; in particular, the European Union (EU) Working Time Directive has attracted rather a lot of controversy.
31
Working Time and Employment Relations
• Employers are interested in how working time can be arranged in ways that improve organizational efficiency and generate performance improvements.
• Policy-makers have taken measures to encourage more flexible working time arrangements, not least because of the potential they have to improve gender equality (Grimshaw and Rubery 201 0 Eurofound 2012).
32
Working Time and Employment Relations
United Kingdom labour law: Regulates the relations between workers, employers and trade unions
• The Working Time Regulations 1998 (SI 1998/1833) is a statutory instrument in UK labour law which implements the EU Working Time Directive 2003.
• The Working Time Regulations create a basic set of rights for the time people work, particularly 28 days paid holidays, a right to 20 minute paid breaks for each 6 hours worked, a right to weekly rest of at least one full 24 hour period, and the right to limit the working week to 48 hours.
33
10/26/19
12
Working Time and Employment Relations
Maximum weekly working hours
• Working time directive: You can’t work more than 48 hours a week on average - normally averaged over 17 weeks.
• You can choose to work more by opting out of the 48-hour week. Your employer can ask you to opt out, but you can’t be sacked or treated unfairly for refusing to do so. You can opt out for a certain period or indefinitely. It must be voluntary and in writing.
• Under 18: can’t work more than 8 hours a day or 40 hours a week.
34
Working Time and Employment Relations
Trade-off: During the 1980s and 1990s engineering unions in Germany and Britain successfully used industrial action to reduce the length of the working week. BUT, as employers conceded fewer hours in return for greater flexibility over the utilization of working time.
After 2008, some companies voted to reduce their weekly hours of work, helping to avert proposed job losses arising from a fall in demand for the company’s products.
35
Working Time and Employment Relations
The decline of the trade unions and the diminishing scope and importance of collective bargaining mean that in general joint regulation plays a less powerful part than it once did, with employers enjoying greater freedom to manage working time issues unilaterally (Grimshaw and Rubery 201 0 ; Blyton 2011)
36
10/26/19
13
Working time duration: patterns and trends
Until the 1990s: reduction in the average number of weekly working hours for full-time employees.
During the 1990s: British full-time employees have the longest average working week in the EU.
Rise of the 'long hours culture’ (mainly after 2008): Greater competitive pressures encouraged many businesses to find ways of increasing output while freezing, or even reducing, staff numbers. White-collar jobs were obliged to work more hours, usually unpaid, to take up the slack.
37
Working Time and Employment Relations
Employees in the UK were found to work 42.3 hours per week on average, Eurostat data shows.
The Dutch, famous for having the best work-life balance of all OECD countries, have the shortest week, clocking in for an average of just 30.3 hours.
38
Working time duration: patterns and trends
The long-term diminution of 'long hours’ working has been largely concentrated among men and it is a trend evident across Europe (Messenger 2011 ; Eurofound 2012).
Overtime unpaid hours are concentrated among certain types of workers (e.g., managers, professionals, manual, transport, manufacturing, process, etc).
The TUC estimates that 5 million people perform some unpaid overtime, worth some £31.5 billion to the economy.
39
10/26/19
14
Working time duration: patterns and trends
People who work for lots of hours seem to have greater job satisfaction; they may put in more working hours because they find their jobs interesting and gratifying (Green and whitfield 2009; Walsh 2010), or because the prospect of additional overtime payments is seen as desirable.
Overtime working is a potentially very inefficient way of organizing working time; workers may work more slowly during their normal contractual working hours in order to ensure that overtime is needed to complete their tasks.
40
Working time duration: patterns and trends
Negative effects of night work and other unsocial hours of work on employees’ physiological and psychological well-being; increased risk of strokes and heart disease; mental ill health, diabetes, and bowel problems, lower levels of well- being.
41
Future of Work
- Production methods have changed and attitudes to work have evolved significantly.
- Lifelong employment is almost over, 9 to 5 workdays are a thing of the past, the concept of command and control relationship has become obsolete: individuals want to thrive at work, be on equal terms with their superiors, organise their working time according to their own desires and constraints and negotiate tailor-made working conditions.
Role of Work
42
10/26/19
15
Future of Work
- The workforce has never been so diverse and educated: While the 20th century was largely characterised by the white male breadwinner, diversity is driving today’s workforce: women, students working to fund their education, people with disabilities, self- employed people returning to work, pensioners wishing to keep a professional activity, etc.
Key trends
43
Future of Work
- The world of labour has become flat and globalised: the global working population has almost doubled to reach more than 3 billion people in 2015 (an addition of around 1.5 billion compared to 1989).
- Explosion of migration: more than one billion people crossed borders in 2009.
Key trends
44
Future of Work
- Ageing global working population: 60% of people now live in countries with stagnant or shrinking populations.
- Hyper-connected workforce: New technologies allow for more flexible workplaces, with people working outside the standard core hours and a large number of employees not just leaving the office and their work behind them.
Key trends
45
10/26/19
16
Future of Work
- Flexible work environment/connects to work.
- Prime trends impacting flexible work: Behaviors shaped by social media technologies, globalization, technology, mobility, millennial workforce.
M organ (2014)
46
Future of Work
- Work anytime: ability to set schedule.
- Work anywhere.
- The overall focus on employee outputs not just on inputs: what employees produce and the quality of what they produce is what matters.
Flexible work
47
Future of Work
- Organization that offers flexible work environments is more attractive to prospective hires than one that doesn’t.
- According to flexible staffing firm MomCorps, 45% of working adults would be willing to take around a 9% pay cut to be able to have a more flexible work schedule.
Flexible work
48
10/26/19
17
Future of Work
- Organization that offers flexible work environments is more attractive to prospective hires than one that doesn’t.
- According to flexible staffing firm MomCorps, 45% of working adults would be willing to take around a 9% pay cut to be able to have a more flexible work schedule.
- MomCorps also found that 73% of working adults look at flexibility as one of the most important factors when considering looking for a new job or deciding what company they should work for.
Flexible work
49
Future of Work
- The 2013 Regus Global Economic Indicator of 26,000 business managers across 90 countries revealed that 48% of them are now working remotely for at least half of their work week.
- 600,000 employees in the United States travel 90 minutes and 50 miles to work (each way) and 10.8 million employees travel an hour each way (U.S. Census Bureau, 2013).
- This is the virtual equivalent of having a part-time job while sitting and driving in your car.
Flexible work
50
Future of Work
- Numerous research reports show that employees who work from home are actually more productive and have better quality of life.
- Research published in 2011 from the Umea University in Sweden found that “couples in which one partner commutes for longer than 45 minutes are 40 percent likelier to divorce.”
Flexible work
51
10/26/19
18
Future of Work
- Not only that, but the companies who support flexibility are themselves able to save many millions of dollars.
- According to Global Workplace Analytics, a typical business would save approximately $11,000 per employee per year if that employee were allowed to work from home just half the time.
- The employees themselves would save between $2,000 and $7,000 per year.
Flexible work
52
Future of Work
WHAT ABOUT FACE-TO-FACE COMMUNICATION?
53
Future of Work
- We are social beings and it’s hard to think of anything more depressing than employees sitting around their homes staring at faces on screens all the time.
- Sociologist T. J. Allen: once employees are approximately 200 feet away from each other, their chances of communicating and collaborating falls to zero.
Face-to-face communication
54
10/26/19
19
Future of Work
- Coworking is a style of work that involves a shared workplace, often an office, and independent activity. Unlike in a typical office, those coworking are usually not employed by the same organization.
- They are convenient and provide for an ad hoc and convenient location for meeting or working and offer all of the amenities that you would expect to find in any type of office.
Coworking
55
Future of Work
- One of the many popular benefits that employees enjoy at coworking locations is the ability to work side-by-side with people at other companies.
- Company offices are not going to go away.
- Some organizations will utilize their offices as coworking spots, others will utilize the space in other ways such as creating large auditoriums for events, and others will be getting rid of their large and expensive offices and real-estate properties.
Coworking
56
Future of Work
- It allows employees to un-pigeonhole themselves in their careers. It’s about putting the career paths in the hands of employees.
- Three types of customization: based on voice, based on self- organization, and based on choice.
Customized work
57
10/26/19
20
Future of Work
Customized work
- Customization Based on Voice: Internal social networks and collaboration platforms afford employees a new and unique opportunity to be heard.
- Customization Based on Self-Organization: employees can see what projects are available and select the ones they want to participate in (or create their own).
58
Future of Work
Customized work
- Customization Based on Choice: dynamically change work preferences: For example, how many hours you can work a certain week, where you want to work, how often you want to travel, what projects you want to work.
- The ability for employees to shape and create their own career paths is going to be the standard.
59
Future of Work
Customized work
- There’s no reason why employees who get hired in a particular area or industry need to stay in that area.
- Our interests, passions, and ideas are constantly changing and the ability to adapt our work to those changes is not only valuable but crucial.
- One of the top reasons why employees change jobs is to focus on career growth.
60
10/26/19
21
Future of Work
Customized work
- They want to improve their skills, learn new ones, and move into areas where those skills can be developed.
- Organizations are always on the hunt to recruit and retain top talent but research shows that the cost of finding someone outside of the company can be almost two times as expensive as recruiting within.
- The data shows that hiring internally is cheaper, quicker, and that there’s a better fit.
61
Future of Work
- It allows employees to select the projects they work on the same way they would if they were freelancers.
- Employees pick and choose the things that interest them instead of being told what to do and what projects to be a part of (e.g., game companies).
Modular work
62
Future of Work
- Social media platforms such as Facebook, Twitter, Yelp, LinkedIn, and others came around, which in our personal lives enabled us to share, collaborate, and communicate in an open, easy, and scalable way.
- Employees who share information are those who will get recognized by their peers and managers and these are the people who will build powerful networks within their organizations.
Information sharing
63
10/26/19
22
64
Future of Work
65
Future of Work
66
10/26/19
23
Future of Work
67
Future of Work
- The emergence of these three worlds is going to create fresh challenges for HR.
- Organisations currently grapple with the realities of skills shortages, managing people through change and creating an effective workforce.
pwc report
68
Future of Work
- By 2022, the radical change in business models will mean that companies will be facing further issues such as:
• The need to create ever more sophisticated people measurement techniques to monitor and control performance and productivity.
• The boundary between work and personal life disappearing as companies assume greater responsibility for the social welfare of their employees.
pwc report
69
10/26/19
24
Future of Work
- Most of the HR professionals in their survey don’t believe they’re prepared for meeting the needs of a workforce that demands more freedom, autonomy and flexibility.
- Only around 20% report that they’re ready to embrace the role of technology and automation in replacing knowledge workers, even though most recognise this is something they should consider.
pwc report
70
71
Flexibility has its limits…
72
10/26/19
25
In teams of two or three:
2. In what ways are employment relations expected to change in order to fit in with these new trends (e.g., flexible work, gig economy, retail crisis)?
Activity
1. If flexible work is so great, why isn’t everyone doing it? What are the main drawbacks of flexible work for companies and how could it impact the employment relations?
73
