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The NEW STS: Advances In Designing Healthy and Innovative Work Systems, Organizations and NetworksA workshop sponsored by STS/RT & USI
Part Two
The STS approach in the Lowlands:Mobilization Human Talent & Productivity
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Geert van HootegemPrepared Mind Belgium
University of Leuven
Pierre van AmelsvoortST-Groep NetherlandsUniversity of Leuven
© 2013
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1. History & Lessons Learned
2. Theoretical Frame: Interaction Network
3. Two sides of the same coin: Quality of working life = Mobilization of Human Talent & Quality of organizations
4. Concepts: Organisational regimes & Design Principles
5. HOW: Design rules & Change Process
Session Overview
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History – after Durham (‘60-’70)
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Work structuring and humanizing the workplace
Bottom up experiments with job design on department level
Ideological started by department head (pioneers)
Supported by academic action research
Focus on quality of working life (job satisfaction)
Despite success, lack of sustainability!
History – after Durham (‘60-’70)
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Lack of SustainabilityLessons Learned: Lack of Diffusion
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Lessons Learned: Lack of Diffusion
• Lack of active support management and focus on short term success
• Isolated: limited design room
• Bottom up is not enough (neglected law of Newton)!
• Finite focus on quality of working life
• (Hidden) Resistance hierarchical levels and support staff
• Ideological clash ‘soft’ <> ‘hard’
• No strategic business need to fundamental change
• Limited theoretical back bone: try and error, depend on enthusiastic consultants
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Evolution of Sociotechnical SystemsThree Waves
Wave One: 1950’s-1970’s
Wave Three: 1990’s-Present
Wave Two: 1970’s-1990’s
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Theoretical Foundations: Lowlands Approach
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Theoretical Foundations: Lowlands Approach
Prime = understanding, intervening & predicting organizational behavior
Ulbo de Sitter’s (1930-2010)Interaction network theory
W. Ross Ashby’s (1903-1972)Law of requisite variety(only variety beats variety)
Niklas Luhmann’s (1927-1998)Social system theory(complexity reduction)
De Sitter’s “toward new factories and offices” (1982):
-Jump job design to organization design-Ideological clash >> theoretical logic: fruitful dialogue and common language-Enrich ODevelopment theory (finite attention to develop human competence) with ODesign theory: OD2
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Social systems theory Social systems are systems of communication to
interact
Membership with formal expectations and arrangements
A system is defined by a boundary between itself and its (infinite complex and chaotic) environment
The internal system is selecting only limited amount of external information
The criterion for selection is meaning (sense making)
Social systems are autopoietically closed: Filtering and processing of external information, Selective in adapting! on what is considered meaningful and what is not
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Job satisfaction = quality of working life!
Age
30 35 40
Job
satis
facti
on +
-
70-80% are satisfied
Irrespective of culture, country, and job characteristics!
Satisfaction is an indicator for acceptance given working conditions
Subjective approach: All people share the same
basic needs? Acceptance of current
situation is not an easy start to change (readiness for change)
Discovery conflictexpetations and reality Acceptance reality
Switch from intrinsic to extrinsic motivation
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qualitycontrol
customer
family
work stationteamleader
work station
customer
customer planning
intersection
Work as an intersection of job demand and interaction
A dynamic, objective view
Human beings develops needs, motivation and orientation in interaction with his social environment
A balanced interaction network is also a productive network
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intersection
internal interactionpartners
externalinteractionpartners
F = family
F
Result of task division
Ideal situation: perfect balance (incl. work-life balance)and no waste All material, information
and means on the right place, quality and time
Match demand and limited means
No disturbance
Only one problem:Ideal situationdoesn’t exist:
interference
Working as an interaction network
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Job demand – job control (regulation) (Karasek)
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Real life networks interference (job demand) Uncertaincy Lack of (insufficient) material, information , right
people and means Unbalance demand and capacity Competitive, conflicting demands Changing demand Custom made demand Human errors Technical disturbance
Interference risk is a result of complexity
Job control to cope with interference: Productive work Active, challenging work
Job demand Job control
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Job demand need Job control
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Internal operational job control Task variety Authority-decision latitude Craftsmanship Access to flexible means Information Meaningful purpose, shared direction
External operational job control Coordination/deliberations Support team and community Appreciative feedback leader Natural feedback Influence
Strategic job control Participation & co-creation: design for reducing
interference risk and decrease inference sensibility Learning and continuous improvement
Job demand Job control
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Job
cont
rol
Job demandslow high
learning opportunitiesunder-loadedwork
challengingwork
over-loadedwork
boringwork
stress
risks
high
low
Low strainwork
challengingwork
High strainwork
Passive, boringwork
Quality of working life
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(Karasek)
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(illegal) Work arrounds
Buffers and hidden waste
Focus on self interest
Safety risks
Work-life imbalance
Early mental retirement
Bullwhip effect
Lack of Job Control
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11,5
4,5 7
low
high
Job demand
Job
cont
rol Passive
work
Low strain work
Active work
High strain
work
high
Quality of working life and absenteeism
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Regu
latio
n ca
paci
tylo
whi
gh
managing
directo
rproducti
on
manager
department h
ead
supervisor
foreman
operator
traditional utilisation of potential
unused potential
available potential
Quality of working life
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Quality of working and healthy aging
MaltaDenmarkSwedenFinland
SloveniëAustria
United KingdomHungaryBelgium
LuxembourgNetherlands
GermanyIrelandCyprusEstland
RomaniaGreece
ItalieCzechia
SpainPortugal
PolandFrance
LithuaniaLatvia
SlovakiaBulgaria
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Design and quality of organisation(al) health
organization
design
divisionexecuting tasks(PS)
separationexecute – control(CS)
complex interactionnetwork
need forcentral control &standards
highinterferencerisk
highinterferencesensibilityUnability to cope withinterference at the source
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Quality of organization
Busi
ness
dem
and
unce
rtai
ncy
Effective control(regulation)
Static centralcontrol
Dynamiclocal (distributed)control
Stressedorganisation
Organisedanarchy
Classicbureaucracy
Hig
h: c
usto
m
mad
eL o
w: r
epeti
tive
prod
uctio
n
Productive, humane
organisation
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Business demand as starting point
Efficiency Efficiency
Quality
+
Flexibility
+
FlexibilityFlexibility
Innovation+
ServiceSustainability+ Innovation
Quality Quality Quality
1960
1970
1980
1990
2000
Efficiency Efficiency
Efficiency
2010 War on talent+
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Price
BureaucraticRegime
Product variationlow high
Unc
erta
inty
low
high
Price +Quality
Quality drivenRegime
Price +Quality +Flexibility and time
FlexibleRegime
Price +Quality +Flexibility and time +Product / service innovation
NetworkRegime
In search
of the m
ost effective re
gime
labour market
policies
sustainability
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Interactionnetwork
culture people
structure systems
A whole system approach:Organisational regime
government
market technology
competitors
employerrepresentatives
trade unions
strategy
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Bureaucratic regime
Principle 1 SimplificationDivision of work processes into small taks
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Principle 2Separation of thinking and doing
Bureaucratic regime
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Principle 3Command and control tree
Bureaucratic regime
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customer
Financial management
People management
Informationmanagement
Risk management
Knowledgemanagement
Facilitair management
Operational management
Generalmanagement
Account management
Service management
HR management
Changemanagement
Stategicmanagement
Bureaucratic regime
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worksystem
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Functional concentration of activities & central control illusion
Every department is confronted with total variety and lack of customer focus
Departmental focus on control utilization of means
Only at central level total overview and illusion of control
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Principle 4Control by strict rules and procedures
Sorry,It’s not on my work instructionYou must a 237/654/9B/654Mform sent to department 39
Bureaucratic regime
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Detailed rules & proceduresStrictly budget driven
Simple jobsNarrow tasksClosed supervision
Specialised tasksSeparate think - doCommand and controlCentral decision making
Focus on hierarchical authorityPower basedTop down
Structure Culture
Systems People
Bureaucratic regime
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Structure Culture
Systems People
Horizontal coordination and meetingsQuality Circles
On line process controlQuality circles
Less hierarchicalReduced power distance
Integration quality controlProblem solving skillsConsulting meetings
Quality driven regime
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Shifting business demands
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QualityE
vidence/Effect based
Cu
stom
mad
e
Costcutting
New lawsMarket driven
uncertaincyF
lexibilutyResponsibily riscmanagement
Innovation
speed
International competion
tech
nolo
gy
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Stressed organisation: Functional concentration of activities & central control illusion
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Effects……….
Moeizame communicatieSlow and high cost communication lines……..
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Effects……….
Complex workflows and a meetings, meetings………….Expensive overhead
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Complicated cooperation,Suboptimalisation
Effects……….
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Oh, no… they produced it as I designed it………
Effects……….
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Effects……….
Control illusion and fingerpointing with hidden elbow room and work arounds…….
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Silo’s: long troughput times
Effects……….
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Take away responsibiltiesand simple jobs
Powerlessness AlienationDistrustHelplessnessEarly mental retirement
Effects……….
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Bu
sin
es
s d
em
an
d
Effective control
Static centralcontrol
Dynamiclocal control
Stressedorganisation
Productive, humane
organisation
Organisedanarchy
Classicbureaucracy
hig
hlo
w
Stressed organisation
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Complex/lack of communication
Untransparent credits and cost
Isolated silo’s and hidden waste
Slow responsiveness and long throughput times
Risk avoiding culture and internal focus
High coordination cost (management)
Disconnection management and employees
Focus on exploitation & Neglect exploration and innovation
Unhealthy high strain work and work-life imbalance
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46 46
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Busi
ness
dem
and
Effective control
Static centralcontrol
Dynamiclocal control
Stressedorganisation
Productive, humane
organisation
Organisedanarchy
Classicbureaucracy
high
low
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1. Focus on first effectiveness second efficiency: added value2. Respect diversity and reduction of complexity:
a) Focus on custom families (product, market, technology combinations) in stead of task specialization (reduce variety subsystem)
b) Reduce number of transfer points (interference risk)3. Human scale:
a) Work teams 8 – 12b) Working communities 40c) Strategic units 200
4. Self organisation: Increase local control and support and healthy hierachy: horizontal coordination and reduce number of hierarchical layers (decrease interference sensibility) with specific added value
5. Minimal critical specification based on trust and craftsmanship6. Aligned systems (planning and control, HR practice,
technology)7. Result only work environment8. Human talent mobilization9. Direct democracy: Strategic participation/partnership and co-
creation
Design principles
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Mmmmmh… complexity… “sooo delicious!?”
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Focus on customer family, market & technology combination
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Reduced organisational complexity:Conditions for local control
The variety of the whole system stays the same.
Every unit is confronted with less variety and has customer focus: emotional connection and human feedback mechnanism
Departmental focus on control customer flow
Local overview and control
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Flexible regimeStructure Culture
Small units with awhole taskDecentralised controlSmall central control staffCross functional teams
SystemsJust in timeResult driven: mutualgoal settingFlexible workarrangements
Focus on business processManagement and staff:support and facilitateTrust based control
People
Multi skilledSelf managementTeamwork
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Network regime
Structure Culture
Mini companiesTemporarily structuresNetworkingStrategic partnering
Systems
Focus on time to market
People
Custom orientedpeople = business partnerStake holder involvement
Broad competencesHuman capitalEntrepreneursParticipation in strategic issues
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Customer focussed
Human talent isseen as businesscapital
High involvement
Partnership
Speeding up product
innovation process
Mini companiesTemporal structures
Networking
Price
Quality
Flexibility
Product innovation
Transformationprocess is leading
Managers and staffdept. have asupporting andfacilitating role
Multi-skilling
Teamwork
Self management
Just in time
Minimal specificationLocal differentiation
Result driven
Business line oriented
Small units with a whole taskand decentralised control
Price
Quality
Flexibility
CulturePeopleSystemsStructureBusiness
demands
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Culture
Focus on hierarchicalauthority
Power based:Command andcontrol
Less hierarchical
Reduced powerdistance
Transformationprocess is leading
Managers and staffdept. have asupporting andfacilitating role
Customer focussed
Human talent isseen as businesscapital
People
Narrow tasks
Simple and routinework
Integration ofquality control
Group meetingsQuality awareness
Multi-skilling
Teamwork
Self management
High involvement
Partnership
Systems
Detailed rules andprocedures
Budget driven
Quality circlesStatistical process
control
Just in time
Minimal specificationLocal differentiation
Result driven
Speeding up product
innovation process
Structure
Specialisation
Division of labour
Horizontal meetings
Business line oriented
Small units with a whole taskand decentralised control
Mini companiesTemporal structures
Networking
Business
demands
Price
Price
Quality
Hierarchy
Price
Quality
Flexibility
Price
Quality
Flexibility
Product innovation
Bridging the gap: example
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peop
le
cultu
re
stru
ctur
e
syst
ems
Ontwerpen & ontwikkelenGuiding principles & leadership
Strategic choices
Organisational behaviourviability productivity
involvement
Managem
ent of change
Conservating mechanism
An integral approach
Quality of organisation Quality of working relations
Quality of working life
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Price
BureaucraticRegime
Product variationlow high
Unc
erta
inty
low
high
Price +Quality
Quality drivenRegime
Price +Quality +Flexibility and time
FlexibleRegime
Price +Quality +Flexibility and time +Product / service innovation
NetworkRegime
In search
of the m
ost effective re
gime
labour market
policies
sustainability
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Design sequence rules: PCS
From the w
hole
to the parts
+
macrostructure
macro structure
meso structure
microstructure
microstructure
mesostructure
‘pro
ducti
on’ s
truc
ture
Cont
rol s
truc
ture
From th
e parts
to th
e whole
(Info
rmati
on) s
yste
ms
Mission vision goals strategy guiding principles
Organisation design
1 2 3
4
5
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IVRealising
I(explore/
discovering)Diagnosing
Common Awareness
IIIDesigning
Co-creation Ownership
II (Imaging)
VisioningShared
Direction
DialogueSelf organisation
Co-creationEducation
Change as a non-lineair cycle process
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Characteristics of change process Every change process is unique
Mixed interventions Design teams Large scale conferences
Support self organization and co-creation In-company training and education Open education
Iterative approach Mix top down and bottom up Create a common vision, awareness and
readiness to change Strategic design: design team of key
positions with consultation whole system Operational design: (emergent) co-
creation of involved stakeholders
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1. What have you learned?
2. What is common with the traditional approach (part 1)
3. What are the differences?
4. Futher questions or remarks
Dialogue in small groups
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Original STS Lowlands Lowlands Approach
Context EfficiencyRepetitive manufacturingSurplus labor market
Efficiency, quality, flexibility, innovationCustom made (knowledge work)Future war on talent/ healthy aging; shortage labor market
Objective Humanization of work Business demand:Quality of working lifeQuality of organisation(al) healthQuality of working relations
Subject Job design (micro level) Organisation design and designing
Concepts Open Systems
Joint optimalisation social & technical system
Bottom up change
Design and change as a strategic competing (meaningful-sense making) factor
Division of labor: twin structure concept (production & control structure)
Education for self organization, co-creation,top-down and bottom-up
Summary
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