Human Resources Human Resources ManagementManagement

T 9 Flexibility and empowermentT 9 Flexibility and empowerment

D. BorisovaD. Borisova

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DefinitionDefinition

““The flexible working The flexible working arrangements (FWAs) arrangements (FWAs) are different means, are different means, by which the by which the organisation adapts organisation adapts itself to a change in itself to a change in the demands made the demands made upon it”upon it”

Need of flexibilityNeed of flexibility

Growth of advanced technology and cellular Growth of advanced technology and cellular production systemsproduction systemsResponse to, and creation of, higher degree of Response to, and creation of, higher degree of “customized mass-production” in consumer demand“customized mass-production” in consumer demandShift from production to service economyShift from production to service economyGlobalization of the labor marketGlobalization of the labor marketPolitical initiatives to sharpen competition and Political initiatives to sharpen competition and create efficiency:create efficiency:

•Compulsory competitive tendering in public sectorCompulsory competitive tendering in public sector

•De-nationalization s of the 1980’s-1990’sDe-nationalization s of the 1980’s-1990’s

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Flexibility of what?Flexibility of what? Labor:Labor:

• Wider range of tasks, jobs or skills;Wider range of tasks, jobs or skills;• Variability in the amount of labor force.Variability in the amount of labor force.

Technology: access to know-how, new Technology: access to know-how, new ideas or different types of machineryideas or different types of machinery

Organizations: general ability to adaptOrganizations: general ability to adapt

Systems and processes: national economy, Systems and processes: national economy, regions, industries, global economyregions, industries, global economy

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Flexibility for whom?Flexibility for whom?

FOR employers – FOR employers – OF employees OF employees

FOR employees – FOR employees – in their interestin their interest

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Historical developmentHistorical development

Up to 1950’s - scientific management Up to 1950’s - scientific management (F. Taylor): fragmentation of work, (F. Taylor): fragmentation of work, workers do not participate in the workers do not participate in the decision makingdecision making

Up to 1980’s – motivation and Up to 1980’s – motivation and employee satisfaction through:employee satisfaction through:• job rotation – horizontaljob rotation – horizontal• job enlargement – vertical job enlargement – vertical

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Later Views of the Flexible FirmLater Views of the Flexible Firm

Charles Handy – the Shamrock Charles Handy – the Shamrock OrganisationOrganisation

Atkinson’s Flexible Firm Core and Atkinson’s Flexible Firm Core and peripheral workersperipheral workers

AN ONION VIEW

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The flexible firmThe flexible firm (John Atkinson, 1984)(John Atkinson, 1984)

Core group – primary personnel in the Core group – primary personnel in the company, provide functional flexibilitycompany, provide functional flexibility

First peripheral group – numerical flexibility First peripheral group – numerical flexibility in order to meet fluctuations in the demand in order to meet fluctuations in the demand of company productsof company products

Second peripheral group – short-term, multi-Second peripheral group – short-term, multi-tasking, job sharing, part time worktasking, job sharing, part time work

Subcontracted and outsourced workSubcontracted and outsourced work Agency workers (leasing of personnel)Agency workers (leasing of personnel) Self employment Self employment

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The Shamrock Organization The Shamrock Organization ((Charles Charles HandyHandy, 1996), 1996)

Contractual fringe Flexible workers

Professional core

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Types of Labor FlexibilityTypes of Labor Flexibility

Functional:Functional: skill variety & task diversity; skill variety & task diversity; multi-multi-skilling – generally reserved for core workers on skilling – generally reserved for core workers on “permanent” time contracts“permanent” time contracts

Numeric:Numeric: hiring and firing workers according to hiring and firing workers according to business needs – peripheral workers, sub-business needs – peripheral workers, sub-contracting and self-employmentcontracting and self-employment

Temporal:Temporal: adjusting working hours and times to adjusting working hours and times to meet business demand – both core and peripheral meet business demand – both core and peripheral workers; usedworkers; used in cyclic businesses in cyclic businesses

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Types of Labor Flexibility Types of Labor Flexibility contd.contd.

GEOGRAPHIC: GEOGRAPHIC: home working, teleworking, home working, teleworking, telecommuting, hot-desking; distance-working, telecommuting, hot-desking; distance-working, “location-independent” working“location-independent” working• Approx. 2m teleworkers in the UK todayApprox. 2m teleworkers in the UK today• Mobil Oil, Co-operative Bank, Royal MailMobil Oil, Co-operative Bank, Royal Mail

ATTITUDINAL: fATTITUDINAL: flexibility of approach to work; the lexibility of approach to work; the encouragement of an attitude of adaptability and encouragement of an attitude of adaptability and preparedness to learn new skills and/or change preparedness to learn new skills and/or change working practices rapidly in line with business need.working practices rapidly in line with business need.• The “learning organisation” conceptThe “learning organisation” concept• Ford and the EDAP schemeFord and the EDAP scheme

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Schemes for Flexible WorkingSchemes for Flexible Working

1.1. Shift workShift work2.2. OvertimeOvertime3.3. Weekend workWeekend work4.4. Annual hours contractAnnual hours contract5.5. Part-time workPart-time work6.6. Job sharing, job splittingJob sharing, job splitting7.7. Flexi-timeFlexi-time8.8. Temporary/casualTemporary/casual9.9. Fixed term contractsFixed term contracts10.10. Compressed working weekCompressed working week11.11. Home-based workHome-based work12.12. Tele-workingTele-working13.13. Outsourcing, outtasking, sub-contractingOutsourcing, outtasking, sub-contracting

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Types of FWAsTypes of FWAs

Working timeWorking time ContractualContractual ExternalisedExternalisedPart-time workPart-time workWeekend workWeekend workOvertimeOvertimeShift workShift workCompressed Compressed working weekworking weekAnnualised Annualised hourshoursFlexi-timeFlexi-time

Job Sharing Job Sharing /Splitting/SplittingTemporary/Temporary/casual workcasual workFixed-term Fixed-term employmentemployment

Home-based Home-based workworkTele-workingTele-working

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Bundles of FWAsBundles of FWAs

Non-Non-Standard Standard

Work Work PatternsPatterns

Non-Standard Non-Standard Work HoursWork Hours

Work Work OutsourcedOutsourced

Work Away Work Away from the from the

OfficeOffice

Part-time Part-time WorkWork

Compressed Compressed Work-weekWork-week

Annual Annual ContractsContracts

Flexi-timeFlexi-time

Fixed-term Fixed-term ContractsContracts

Job SharingJob Sharing

Shift WorkShift Work

Weekend Weekend WorkWork

OvertimeOvertime

Temporary Temporary WorkWork

SubcontractingSubcontracting

Home-based Home-based WorkWork

Tele-workingTele-working

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Economic reasons for flexibilityEconomic reasons for flexibility

Cut in exploitation, operational and Cut in exploitation, operational and fixed costsfixed costs

Rise in efficiency and profit Rise in efficiency and profit Better distribution of resourcesBetter distribution of resources Use of new opportunitiesUse of new opportunities Stimulation of businessStimulation of business Chances for additional incomeChances for additional income

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Social reasons for flexibilitySocial reasons for flexibility

Decrease of unemploymentDecrease of unemployment

Better opportunities for realization of Better opportunities for realization of special minority groupsspecial minority groups

Better combination of family Better combination of family responsibilities, work duties and free responsibilities, work duties and free timetime

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Advantages for employersAdvantages for employers

Focus moved from job to tasks and Focus moved from job to tasks and specific assignmentsspecific assignments

Better use of working timeBetter use of working time

Decrease of absences and leavesDecrease of absences and leaves

Better balance between offer and demand Better balance between offer and demand of labor force with certain rare or specific of labor force with certain rare or specific qualitiesqualities

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Advantages for employeesAdvantages for employees Opportunities for training and Opportunities for training and

developmentdevelopment

Opportunities for realization in new areasOpportunities for realization in new areas

Satisfaction of personal and cultural Satisfaction of personal and cultural interestsinterests

More freedom and better use of spare timeMore freedom and better use of spare time

Attention to family and to special groupsAttention to family and to special groups

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Approximate proportion of workforce Approximate proportion of workforce employed on shift work employed on shift work (% of organisations, 2003)(% of organisations, 2003)

85,6 85,3 84,7 83,1

57,7

48,2 50,5

8881

64,4

82,2

57,1

0

10

20

30

40

50

60

70

80

90

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Approximate proportion of workforce Approximate proportion of workforce employed on part time work employed on part time work (% of organisations , (% of organisations ,

2003)2003)

0

10

20

30

40

50

60

70

80

90

100

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Approximate proportion of home based Approximate proportion of home based employment employment (% of organisations , 2003)(% of organisations , 2003)

36,7

28,6

4,8

2,6

5,66,36,87,5

22,523,4

32,333,5

0

5

10

15

20

25

30

35

40

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Main Findings about FWAs in the CRANET Main Findings about FWAs in the CRANET International HRM surveyInternational HRM survey

Traditional forms of FWAs are still dominant over new Traditional forms of FWAs are still dominant over new forms of flexibility. forms of flexibility.

The use of temporary/casual work and fixed-term The use of temporary/casual work and fixed-term contracts has dropped over the 10-year period.contracts has dropped over the 10-year period.

Less than expected rise in some of the well-established Less than expected rise in some of the well-established forms of FWAs such as shift work and part-time work.forms of FWAs such as shift work and part-time work.

Slight growth in new forms of FWAs. Annualized hours, Slight growth in new forms of FWAs. Annualized hours, job sharing, home-based work and tele-working are yet job sharing, home-based work and tele-working are yet to become major features of working life.to become major features of working life.

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Main Findings about FWAs in the CRANET Main Findings about FWAs in the CRANET International HRM survey International HRM survey ((continuedcontinued))

Significant region and country variations in use of Significant region and country variations in use of certain types of FWAs:certain types of FWAs:

• Non-standard work patterns are widely used in most Non-standard work patterns are widely used in most regions, although less popular in Asian companies;regions, although less popular in Asian companies;

• Non-standard work hours and work away from the office Non-standard work hours and work away from the office are more common amongst English-speaking, Northern are more common amongst English-speaking, Northern and Central European regions;and Central European regions;

• Work outsourced is most common in Mediterranean and Work outsourced is most common in Mediterranean and Asian companies, while work away from the office is yet to Asian companies, while work away from the office is yet to take hold there.take hold there.

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Main Findings about FWAs in the CRANET Main Findings about FWAs in the CRANET International HRM survey International HRM survey ((continuedcontinued))

The restrictive state regulations in some countries for The restrictive state regulations in some countries for certain forms of FWAs explain the high use of other forms certain forms of FWAs explain the high use of other forms of flexibility there:of flexibility there:

• Annual hours contracts in France;Annual hours contracts in France;• Part time work and fixed-term contracts in Netherlands;Part time work and fixed-term contracts in Netherlands;• Shift work in Spain and Turkey.Shift work in Spain and Turkey.

When combined in bundles, FWAs have better results on When combined in bundles, FWAs have better results on organisational effectiveness and performance.organisational effectiveness and performance.

There is ample room for an increase in FWAs in future.There is ample room for an increase in FWAs in future.

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BroadlyBroadly empowerment is about ‘allowing them empowerment is about ‘allowing them (the workers) to retain sufficient autonomy over (the workers) to retain sufficient autonomy over work performance and/or involvement in work performance and/or involvement in broader workplace/decision making co-broader workplace/decision making co-operation and draw upon their latent skills, but operation and draw upon their latent skills, but not so much as to forfeit managerial control’.not so much as to forfeit managerial control’.

Adapted source: Marchington Adapted source: Marchington et. al.,et. al., 1993 and Wilkinson, 1998, 1993 and Wilkinson, 1998, cited in Hales, 2000cited in Hales, 2000..

Empowerment: DefinitionEmpowerment: Definition

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EssenceEssence

Delegation of responsibilities to employeesDelegation of responsibilities to employees Employee participation in decision-makingEmployee participation in decision-making Not redistribution of power, but Not redistribution of power, but

enhancement of employee contribution to enhancement of employee contribution to the organizationthe organization

Emphasizes on quality, flexibility and Emphasizes on quality, flexibility and productivityproductivity

Could be both individually and team-basedCould be both individually and team-based From employee suggestion schemes to self-From employee suggestion schemes to self-

managed teamsmanaged teams

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What is it about?What is it about? PowerPower

• To make decisions influencing performanceTo make decisions influencing performance InformationInformation

• About organisational performanceAbout organisational performance RewardsRewards

• Based on organisational performanceBased on organisational performance KnowledgeKnowledge

• Enabling workers to understand their Enabling workers to understand their contributioncontribution

Schneider & Bowen cited in Redman & Wilkinson pp347-8

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Empowerment, changing a dominant Empowerment, changing a dominant philosophy …?philosophy …?

Work study traditionWork study tradition Scientific managementScientific management

• De-skilling and alienationDe-skilling and alienation Prescribed methodsPrescribed methods Measured performanceMeasured performance Rewards for Rewards for

achievementachievement

Work psychology traditionWork psychology tradition Human relations schoolHuman relations school

• Herzberg, MaslowHerzberg, Maslow Select, train, motivate and Select, train, motivate and

lead welllead well ““Willing” performanceWilling” performance

‘CLASSICAL’ APPROACH ‘ENRICHMENT’ APPROACH

“..passive compliance..” Hales C, 2000.

“..active co-operation..” Hales C, 2000.

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How to empower?How to empower?

Participation and motivation of workforceParticipation and motivation of workforce Task involvement and attitudinal changeTask involvement and attitudinal change Focus on quality and productivityFocus on quality and productivity TQM, quality circlesTQM, quality circles Team working, autonomous work groupsTeam working, autonomous work groups Better communicationBetter communication Workforce attitude surveysWorkforce attitude surveys 360° or upward appraisal360° or upward appraisal ““The managerial equivalent of Viagra”The managerial equivalent of Viagra”

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Why empowerment?Why empowerment?

Workers are closer to work situation and Workers are closer to work situation and may be able to suggest improvements may be able to suggest improvements that management is unable to seethat management is unable to see

Empowerment increases satisfaction, Empowerment increases satisfaction, reduces labor turnover and enhances reduces labor turnover and enhances commitmentcommitment

Reduces the need for complex control Reduces the need for complex control systemsystem

Better quality of products and servicesBetter quality of products and services

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Applied empowermentApplied empowermentIt could be argued that there are a number of application It could be argued that there are a number of application

processes, but here is an example:processes, but here is an example:1. 1. Diagnosis:Diagnosis: identify the conditions existing in the identify the conditions existing in the

organisation that lead to feeling of powerlessness on organisation that lead to feeling of powerlessness on the part of the organisational members.the part of the organisational members.

2. 2. Implementation:Implementation: viavia participative management, participative management, establishing goal setting programmes, implementing establishing goal setting programmes, implementing merit-based pay systems and job enrichment through merit-based pay systems and job enrichment through redesignredesign

3. 3. Action:Action: a two-step element a two-step element• remove conditions creating ‘powerlessness’.remove conditions creating ‘powerlessness’.• increase ‘self-efficacy’.increase ‘self-efficacy’.

4. Increase the perception of successful performance4. Increase the perception of successful performance5. Increase task orientated job activity5. Increase task orientated job activity

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5 Main types of empowerment5 Main types of empowerment Information sharingInformation sharing Upward problem solvingUpward problem solving Task autonomy – restructuring of work Task autonomy – restructuring of work

units into cells taking some operational units into cells taking some operational decisionsdecisions

Attitudinal shaping – employees are Attitudinal shaping – employees are trained to ‘feel’ empowered and more trained to ‘feel’ empowered and more confident in their interaction with confident in their interaction with customerscustomers

Self-management in relation to a set of Self-management in relation to a set of work taskswork tasks

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Forms of empowerment in UK, Forms of empowerment in UK, 19981998

Participation in teamworkParticipation in teamwork 65%65% Team briefings Team briefings 61%61% Staff attitude surveysStaff attitude surveys 45%45% Problem-solving groupsProblem-solving groups 45%45% Quality circlesQuality circles 45%45% Regular meetings of entire Regular meetings of entire

workforceworkforce 37%37%

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HRM empowerment initiatives HRM empowerment initiatives

Open management styleOpen management style Open-doors daysOpen-doors days Flexi-timeFlexi-time Removal of clockingRemoval of clocking Payment system based on skill acquisition Payment system based on skill acquisition

and individual performanceand individual performance Two-way communicationTwo-way communication Suggestion schemes, etc.Suggestion schemes, etc.

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Do not forget!Do not forget!

Next lecture N10:Next lecture N10:

““Equal opportunities and Equal opportunities and diversity”diversity”

will be held will be held

on 10on 10thth of December, of December, WednesdayWednesday, from 18:30, for , from 18:30, for both both groupsgroups A31 and A32 A31 and A32