Monday, January 7, 2013

Unit 3 - Three challenges: Leader energy; Role performance;


Challenge 1: leadership energy
We find that despite the exhortations, in practice many managers are often resistant to employee engagement programs. This can be for two underlying reasons – first, some inherent uncertainty about the implications for the leader role and second, due to the perceived additional work required by the leader. It can be argued from afar that engagement would in fact lighten the leader’s role, but the perception is real and is a barrier to be overcome. We have found that those leaders who feel overburdened tend to judge that an ‘engagement’ programme will be an added cost to them personally. Our research also suggests that unless these interpretations are faced at the outset, it is difficult to embed and sustain a major engagement initiative in any organization.

Leaders are reporting their energy levels are at a rate that is lower than where they are most productive. These leaders say they have no time to get the most critical elements of their core work jobs done, and this is the key factor they report as negatively affecting their personal energy levels at work. Given that engagement implies activity ‘above and beyond’ (a common expression used for engagement), the problem is that these leaders are working at suboptimal energy levels and cannot even engage themselves properly because they are too busy just trying to cope with their personal workloads; still less do they feel that they have time or inclination to engage others.
If leader energy is falling and/or suboptimal, the overall outcome is negative for bottom-line productivity and firm performance because leader energy predicts employee energy, and high energy cultures predict organizational outcomes (stock price growth, survival).
The measurement process uses a 0 to 10 scale, where 0 = no energy, 8 = high energy, and 10 = too much energy.2 Thus, energy is an optimization versus a maximization scale. A point can be reached where people are exerting so much energy they cannot find time to replenish themselves fast enough. An employee can have too much stimulus at work, and this can result in burnout. However, the definition of ‘too much’ differs from person to person, and it is important when measuring energy to ask more than one question. The measurement process used in the above-mentioned studies produces a variety of scores: energy overall, most productive energy level, and the gap between where one is most productive and where one is today.

 Challenge 2: role-based performance to define engagement
Five different categories of work behaviour can be defined via the roles that employers set up at work and reward within organizations. Short descriptions of each and an overall model follow:

1.            Core job holder role (what is in the job description);

2.            Entrepreneur or innovator role (improving process, coming up with new ideas, participating in others’ innovations);

3.            Team member role (participating in teams, working with others in different jobs);

4.            Career role (learning, engaging in activities to improve your skills and knowledge);

5.            Organizational member role (citizenship role or doing things that are good for the company).

(Welbourne et al. 1998)

When the role-based approach to work is combined with a resource-based view of the firm, a link between role-based behaviour and firm performance can be derived. The resource-based view of the firm states that firms ‘win’ when they create long-term competitive advantage from resources that are valuable, rare, inimitable, and for which substitutes do not exist (Barney 1991,1995).
However, it is what people are doing at work specifically (or what roles they are engaged in) that drives results. If the role-based model of performance is applied, long-term competitive advantage does not come with people simply doing their core jobs. If employees are only doing core jobs (for which job descriptions are easily available), the competition can hire people, train them to do those same jobs, and do this in a location where wages and other costs are much lower.

But, if employees engage in behaviours above and beyond the core job ,then true competitive advantage from people materializes. When employees have firm-specific knowledge and use that information to develop new ideas, to improve the organization, to assist new team members, and to continue to escalate their careers, then the synergy that comes from all of these above and beyond behaviours starts to drive long-term competitive advantage, which then affects firm performance.
It makes sense that ‘emotional commitment’, ‘above and beyond’ behaviours, or ‘discretionary’ efforts (all terms found in the work on employee engagement) are desirable. A clear understanding of what these words mean is essential for anyone who expects to improve engagement and improve performance through their employees’ efforts. Also, the link between extra role (entrepreneur, team, career, and organizational member) and core-job role performance needs to be clearly understood because if employees cannot find enough time to do the core job role, then the odds on engaging in any non-core roles are very low.

Thus, the lesson learned from all of this discussion of energy and research is that engagement programmes need to start at the top. Start with leader energy and leader role-based performance. Leaders themselves need to have time to go ‘above and beyond’ so that they exemplify what employee engagement can be by being engaged leaders. Only when leaders have the time they need will they be able to help the managers and employees who report to them reach their own optimal energy levels, balance their work in core and non-core job roles and engage in the behaviours that will drive the organization’s strategy.


 

Thursday, January 3, 2013

Unit 3 - Employee Engagement - 29 country comparison, including causes of disengagement


Ageing  work force

Disengaged younger generation
•        Pressures at work
•        Retention and management challenges

Levels of engagement of younger workforce
Causes of disengagement:
•        Economic pressures have hit the aspirations of younger generation
•        1/3 forced to accept a job they were unhappy with or go through a different career path because of the economy
•        Frequently feel stressed at work
•        Unhappy with work/life balance

Unit 3 - Downsizing

Downsizing can severely affect the morale, commitment and performance of remaining employees.

These effects have been captured under the term ‘survivor syndrome’ and include:
•        decreased motivation
•        low morale
•        reduced loyalty
•        increased stress
•        scepticism towards management initiatives.
Moreover, remaining workers may be asked to do work they are not trained to do and to take on additional workload.

Unit 3 - cooperative movement

The principles of the cooperative movement can be summarised as follows (ICA, 2010).

1st principle: voluntary and open membership.
Cooperatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
 
2nd principle: democratic member control.
Members actively participate in setting policies and making decisions on the basis of ‘one member one vote’; therefore all members have equal voice in decision-making. Their participation in decision-making can either be direct (decisions are discussed and taken by all members in general meetings), or indirect through elected representatives, as is more often the case in large cooperatives.

3rd principle: member economic participation.
Cooperatives are built on the belief that strength comes from pooling resources to engage in mutual self-help; there is an underlying expectation that at least a portion of capital should be owned collectively by all members, and that all members should contribute. Cooperative members usually receive limited compensation, if any, on the capital they subscribed; and decisions regarding the distribution of surplus (e.g. towards the development of the cooperative, compensation of members, or supporting community activities) are taken democratically.

4th principle: autonomy and independence.
Cooperatives are autonomous, self-help organisations controlled by members. If they raise funds from external sources, they do so on terms that ensure democratic control by members and maintain the cooperative’s autonomy. Cooperatives are also in principle free of intervention from governments or other sources so that ultimately the members are able to control their own destiny.

5th principle: education, training and information.
Education is deemed central to democratic participation and according to this principle, cooperatives should aim to contribute towards the education and training of their members, as well as towards awareness-building about the nature and benefits of cooperation among the general public.

6th principle: cooperation among cooperatives.
Cooperatives are encouraged to work together through local, national, regional and international networks to strengthen the cooperative movement. For example, in Britain, Radical Routes is a network of cooperatives that aims to support the development of cooperatives, and has a financial arm that makes loans to small cooperatives.

7th principle: concern for community.
This principle suggests that the values of mutual help, solidarity and equality underpinning the cooperative movement should extend to cooperatives’ contributions to society at large. Through this principle, the ICA encourages cooperatives to ‘work for the sustainable development of their communities through policies, programmes, funding approved by their members.’

Unit 3 - Distinctions between employee involvement and employee participation


Employee involvement (EI)
Employee participation (EP)
Individual voice
Collective voice through elected spokespersons and representatives
Task focused
Wider focus including issues such as redundancies, opening hours of stores, etc.
Control remains in management hands
Shared influence
Aims to stimulate individual employee contributions and problem solving
Aims to harness collective employee inputs and agreement
Management inspired and controlled
Government or workforce inspired
Management structures flatter, but hierarchies undisturbed
Management hierarchy chain broken
Employees often passive recipients
Employee representatives highly involved
Tends to be task based
Decision making at higher organisational levels
Assumes common interest between employer and employees
Plurality of interests recognised and resources for their resolution provided
Aims to concentrate strategic influence among management
Aims to distribute strategic influence beyond management

Unit 3 - Collective bargaining

Collective bargaining

There is little doubt that the balance of power in collective bargaining in recent years, has swung in the favour of management. Managers have a choice as to what approach they take to employee involvement, but frequently that choice will depend on the nature of the product and labour markets in which they operate, as well as company history, culture, and structure, and whether their workforce is unionised.
Data from the Workplace Employment Relations Survey (Kersley et al., 2006) show that where collective bargaining does occur, traditional topics still dominate the bargaining agenda: pay, hours, holidays, pensions, disciplinary and grievance procedures and performance appraisal schemes. A small minority of firms also bargain over the core ‘HR bundle’ of training, HR planning, recruitment and selection

There are three elements:
·         Bargaining levels
·         units and agents of bargaining
·         Scope of bargaining.
There are different levels at which bargaining takes place. Bargaining may involve many employers (multi-employer bargaining), be at company level or at the level of the establishment if there are different sites where the company is located. The bargaining unit refers to the group of employees covered by a particular agreement. For example, there may be one agreement for skilled workers, clerical workers, or supervisors. The bargaining agent refers to the employee representative body which is conducting the bargaining on the employees’ behalf.

Where only one union is recognised by the employer there will be a single bargaining agent within each unit. In multi-union organisations there will be many different bargaining agents. The scope of collective bargaining refers to the subject matter of the collective agreement. This will vary between different organisations. While pay rates are common items covered by negotiation, others include hours of work, staffing levels, physical working conditions, new technology and redundancy. Trade unions aim to extend the scope of collective bargaining, while management may wish to limit it, depending on its approach to managing the employment relationship.
A further trend has been to move away from industry-level bargaining to agreements made at the level of the employer: in other words, agreements have become decentralised, away from the industry or national level. Of particular importance is the renewed ability of employers to focus bargaining on operational issues concerning cost. Pay policies are now much more closely tailored to organisational performance and the achievement of business objectives. Therefore, while business decisions over production, marketing and budgets have been decentralised, it is likely that pay negotiations and setting pay levels will stay at the level of the business unit.
In sum, there are a number of identifiable trends:
•       Limited continuation of multi-employer bargaining and an increase in decentralised bargaining.
•       Simplifying bargaining through single-table bargaining, bringing the issues under discussion closer to operational arrangements. Single-table bargaining occurs where all issues to be negotiated take place within a single forum, limiting multi-union involvement.
•        New style collective agreements. These are also known as ‘no strike’ or ‘single union’ agreements and emerged in the 1980s. Sole bargaining rights are granted to one trade union, strikes are banned, manual and non-manual employees have single status so all terms and conditions except pay are common to all staff, a works council or other comprehensive communication system is established and traditional demarcation between jobs is abolished.
 


Figure 14.1 Movements in management style in employee relations (Source Storey and Sisson, 1993, p. 10)
The diagram shows how both individualism and collectivism take different forms and the combination of both results in different ‘ideal-typical’ approaches to managing the employment relationship.

Individualism can take three different forms:
•        employee development – where employees are viewed as a valuable resource, to be trained and developed accordingly, and can move around on an internal labour market
•        paternalism – where a welfare-based approach is designed to win the loyalty of employees
•        cost minimisation – where employees have commodity status and are bought in from the labour market when they are required.
Collectivism can also take three different forms:
•        none – at its lowest point, no unionism is allowed, and employees are actively discouraged from forming consultative groups
•        adversarial – bargaining takes place but bargaining positions are polarised and compromise is commonplace
•        cooperative – this relationship implies a partnership between management and unions where joint, formal and informal approaches are taken to resolve problems.
Combining these two dimensions in a matrix results in a set of different identifiable ‘management styles’. Characteristics of the different ideal types can be summarised as follows:
•      Traditional: A fire-fighting approach. Employee relations not important until there is trouble. Low pay. Hostility to trade unions. Authoritarian. Typical in smaller, owner-managed businesses.
•        Paternalist and modern paternalist: Unions regarded as unnecessary because of employers coverage of the same issues. High pay. Concentration on encouraging employee to identify with business objectives. Modern paternalists also formally consult with the workforce.
•        Sophisticated consultative: Union participation encouraged through recognition. Problem-solving, informal approach to employee relations. Emphasis on two-way communications.
•        Bargained constitutional: Similar to sophisticated consultative, but emphasis on formal agreements to regulate relationship between two powerful protagonists.
•        Sophisticated human relations: Similar to paternalist approaches, but instead of focusing on employee welfare, a conscious effort is made to invest in and develop the human resource, and promote internal labour markets.

Unit 3 - Employment relations


The unitary view supposes that employee and employer interests are entirely compatible. It assumes that management has sole authority over the employment relationship and that the workforce is loyal to management’s goals alone. It perceives conflict as undesirable, irrational, and the result of poor communication. Trade unions are seen as an intrusion on the management prerogative.

The pluralist view assumes that the organisation is composed of different groups of individuals who have legitimate, competing interests and so some form of conflict is inevitable. Trade unions are regarded as a legitimate form of representation, and management has to reconcile these conflicts in its decision making.

A ‘neo-unitary’ perspective has recently emerged. Here, the commitment of employees cannot be assumed, as with traditional unitarism, but must be secured by employers, through the use of contemporary human resource management techniques.