The New Workplace: A Guide to the Human Impact of Modern Working Practices - Hardcover

Hardcover

ISBN 10: 0471485438 ISBN 13: 9780471485438

Publisher: Wiley, 2002

Synopsis

"Just-in-time", "total quality management", "lean manufacturing","call centres", "team work", "empowerment" - most people inbusiness have heard these buzz words, often offered as a panacea toall profit ills. So why don't they always work? Can you combinethem anyhow? If not, why not?

The New Workplace Handbook is a comprehensive guide to theevidence available on how modern working practices and technologyaffect the people in organizations. Within a broad psychologicalframework, leading experts examine how people work, theirexperience of work, the impact on productivity and performance andthe human resource implications. Guidance is offered on a range ofdifferent methods, tools and practices that can be used to guidethe design and implementation of modern working practices to ensurethat pitfalls are avoided and the best possible results areobtained from new initiatives.

Indispensable for consultants, this Handbook will also be usefulfor students and scholars in the psychology of business, humanresource professionals and anyone involved in the management of newworking practices.

About this title

About the Author

DAVID HOLMAN is a Research Fellow at the Centre for Organisation and Innovation, which is part of the Institute of Work Psychology, University of Sheffield. He obtained his degree in psychology, diploma in personnel management and doctorate from Manchester Metropolitan University. His main research interests are job design, well-being and emotions at work, learning at work, and management education and development. He is the author of Management and Language: The Manager as a Practical Author, and has published articles in the Journal of Occupational and Organisational Psychology, Human Relations, Management Learning, Human Factors and Ergonomics in Manufacturing, and Applied Ergonomics.

TOBY D WALL is Professor of Psychology at the University of Sheffield, where he is Director of the Institute of Work Psychology and the ESRC Centre for Organisation and Innovation. He obtained his first degree and his doctorate from the University of Nottingham England. His main research interests have been in industrial and organisational psychology and have recently focused on the effects of advanced manufacturing technology and shop floor work organisation on work performance and strain. His research has appeared in the Journal of Applied Psychology, the Academy of Management Journal, and other leading publications. He also the author of several books including The Human Side of Advanced Manufacturing Technology and Job and Work Design.

CHRIS W CLEGG is Professor of Organisational Psychology and Deputy Director of the Institute of Work Psychology at the University of Sheffield. He is a Co-Director of the ESRC Centre for Organisation and Innovation, and Co-Director of the BAE -- Rolls-Royce University Technology Partnership for Design. He currently chairs the Sociotechnical Sub-Group of the British Computer Society. He holds a BA (honours) in Psychology from the University of Newcastle-on-Tyne and an MSc in Business Administration from the University of Bradford. He is a Fellow of the British Psychological Society, and a chartered psychologist. Chris Clegg's research interests are in the areas of new technology, work organisation, information and control systems, sociotechnical theory and new management practices. He has published his work in a number of books and journals.

PAUL SPARROWis the Ford Professor of International Human Resource Management at Manchester Business School. He graduated from the University of Manchester with a BSc (Hons) Psychology and the University of Aston with an MSc Applied Psychology and was then sponsored by Rank Xerox to study the impacts of ageing on the organisation for his PhD at Aston University. He has written and edited a number of books including European human resource management in transition, The Competent Organization: a psychological analysis of the strategic management process, and Human Resource Management: the new agenda. He has also published articles in leading journals on the future of work, human resource strategy, the psychology of strategic management, international human resource management and cross-cultural management. He is currently Editor of the Journal of Occupational and Organisational Psychology.

ANN HOWARD is Manager of Assessment Technology Integrity for Development Dimensions International (DDI), a leading provider of human resource programs and services. She has served as president of the Leadership Research Institute, a non-profit organization that she co-founded in 1987. Ann is the author of more than 85 publications on topics such as assessment centers, management selection, managerial careers, and leadership. She is the senior author (with Dr. Douglas W. Bray) of Managerial Lives in Transition: Advancing Age and Changing Times, which received the George R. Terry Award of Excellence from the Academy of Management in 1989. She has edited two books: The Changing Nature of Work (1995) and Diagnosis for Organizational Change: Methods and Models (1994). She is a past president of the Society for Industrial and Organizational Psychology and the Society of Psychologists in Management. Ann received her Ph.D. degree from the University of Maryland and her M.S. degree from San Francisco State University, both in industrial-organizational psychology. She holds an honorary doctor of science degree from Goucher College, where she earned a B.A. degree in psychology.

From the Back Cover

We are all increasingly familiar with modern business terms such as total quality management, just-in-time production, e-business, lean manufacturing and teleworking. But what really lies behind these terms and what effect do these and other new practices have on productivity and performance and, crucially, what is their social and psychological impact?

Written by leading authors from around the world, The New Workplace provides an up-to-date assessment of research into the human effects of new working practices, including team-working, call centres, virtual organizations and supply chain partnering. The impact on productivity and performance is considered in detail in a later section, while the final sections give guidance on a range of methods and tools for evaluating the social and psychological effects, as well as looking to the future. The practical focus means that The New Workplace can be used to help with the design and implementation of new working practices, ensuring that best results are achieved.

Indispensable for students and scholars of organizational psychology, The New Workplace will also be useful for consultants, as well as human resource managers and others charged with the management of new working practices.

Written by leading authors from around the world, The New Workplace provides an up-to-date assessment of research into the human effects of new working practices, including team-working, call centres, virtual organizations and supply chain partnering. The impact on productivity and performance is considered in detail in a later section, while the final sections give guidance on a range of methods and tools for evaluating the social and psychological effects, as well as looking to the future. The practical focus means that The New Workplace can be used to help with the design and implementation of new working practices, ensuring that best results are achieved.

Indispensable for students and scholars of organizational psychology, The New Workplace will also be useful for consultants, as well as human resource managers and others charged with the management of new working practices.

Excerpt. © Reprinted by permission. All rights reserved.

The New Workplace

A Guide to the Human Impact of Modern Working Practices

John Wiley & Sons

Copyright © 2003 John Wiley & Sons, Ltd.
All right reserved.
ISBN: 978-0-471-48543-8

Chapter One

The New Workplace: An Introduction

David Holman and Stephen Wood Institute of Work Psychology, University of Sheffield, UK

Modern working practices and technologies are typically implemented because they have a significant capacity to shape the nature of work and its effect on individuals' behaviour. They include, for example, lean manufacturing, advanced manufacturing technology, total quality management (TQM), call centres, supply-chain partnering (SCP), knowledge management and e-business. Furthermore, surveys show that these practices are increasingly prevalent in organisations in advanced industrial societies (Lawler, Mohrman & Ledford, 1995; Osterman, 1994; Waterson et al., 1999). Yet when modern working practices are implemented they can sometimes alter work in unintended ways, have deleterious effects on employees and not produce the hoped for improvements in employee and organisational performance (Clegg et al., 1997; Parker & Wall, 1998; Waterson et al., 1999). Indeed, the design, implementation and management of modern working practices often create problems for employees at all levels in the organisation. It therefore seems essential that we understand the nature of modern working practices, the effects that they have on employees, the extent of their use, their effect on organisational performance, and how they can be more effectively designed, implemented, evaluated and managed.

Needless to say, considerable research has already been conducted on these issues in disciplines such as human resource management, occupational psychology, strategic management, operations management and sociology; and one of the strongest messages to come out of this research is that the social, psychological and organisational aspects of working practices and technologies must be considered in order to understand, design and manage them effectively (Cherns, 1987; McLoughlin & Harris, 1997; Salvendy, 1997; Storey, 1994; Wall, Clegg & Kemp, 1987). As such, the main premise of this book is that the human side of workplace practices and technologies must be addressed. To do this, the book has the following five aims:

1. To examine the nature and extent of modern working practices and technologies.

2. To review and evaluate the impact modern working practices have on how people work and their experience of work.

3. To examine the human resource management implications of such practices.

4. To examine the effect that these practices have on productivity and firm performance.

5. To review different methods, tools and principles that can be used to guide the design, implementation and evaluation of modern working practices.

These aims are covered throughout the book. But Part II, Modern Working Practices in the Workplace, focuses particularly on the first three aims. The practices examined in Part II are defined in Table 1.1. They were chosen for a variety of reasons and these include being relatively new, being widely practised and having the potential to significantly impact upon the nature of work. The chapters cover the most important issues and debates pertinent to the human side of modern working practices today. Part III is primarily concerned with the fourth aim of the book, the relationship between modern working practices, human resource management and organisational performance. The first two chapters in Part III examine the impact of modern working practices in the manufacturing and service sectors, while the third considers the impact of human resource practices.

Part IV meets the fifth aim of the book by illustrating some of the tools and methods that can be used to contribute to the effective design, implementation and evaluation of new working practices. The tools and methods outlined all attempt to give explicit attention to the social, human and organisational aspects of the new ways of working, areas of concern often neglected by managers and technologists. Finally, the concluding section, Part V, looks to the future. It does this first by considering how future economic conditions and organisational forms might affect employee behaviour and human resource practice; second, by critically evaluating the research, including that covered in this book, from a Critical perspective; and third, by identifying fruitful avenues for future research.

The rest of this chapter is devoted to setting out the context in which modern working practices have been implemented, and some of the main debates and issues that have concerned researchers when examining them.

CHANGE AND CONTINUITY IN THE WORKPLACE

Most of us are now fairly well versed in the changes occurring in the economic, political and social landscape. These include: the internationalisation of the economy; a reduction in trade barriers between countries; the deregulation of markets; privatisation and the ending of state monopolies; increasing demands for greater accountability and efficiency in the public sector; demographic changes in the workforce (e.g. increased female participation, better educated workforce); and changing consumer demand (e.g. a desire for more customised products, for better quality) (Doganis, 2000; Gabriel & Lang, 1998; Katz, 1997; Pollitt, 1993). These changes have intensified competition. They have also meant that much competition has become based on cost and quality, innovation and customisation (Appelbaum & Batt, 1994; Piore & Sabel, 1984). Similar demands for cost efficiencies, quality and customized services are evident in the public and not-for-profit sectors (Peters, 1992). In addition, knowledge is increasingly recognised as a basis for competition and it is thought that, in many industrial sectors, competitive advantage will primarily flow from the creation, ownership and management of knowledge-based assets (see Scarbrough, Chapter 8, on Knowledge Management).

In response to these changes and the expectation of these changes (Sparrow & Cooper, 1998), it is claimed that many organisations have sought to move away from Fordist, large-scale, hierarchical bureaucracies of mass production and mass service, and towards flexible organisations that can respond quickly and efficiently to rapidly changing market and consumer demands (Amin, 1994; Kumar, 1992; Schneider & Bowen, 1995). Flexibility is seen as a key component of organisational effectiveness. Managers have sought to achieve organisational flexibility by experimenting with new organisational forms and new working practices. There are a number of flexibilities that organisations have sought (Sparrow & Marchington, 1998):

Structural flexibility, by introducing, either together or in isolation, flatter hierarchies and horizontal coordination between units; modular structures that can be reconfigured as new projects or problems arise; joint ventures; temporary alliances; and inter-organisational networks (McPhee & Poole, 2000). Team working (e.g. cross-functional teams, project-based teams, virtual teams) (Chapter 6), supply-chain partnering (Chapter 5) and e-business (Chapter 13) are working practices that can help achieve structural flexibility.

Functional flexibility, by introducing working practices that enable effective responses to changes in demand, supply and work load. Advanced manufacturing technology (AMT) (Chapter 4), lean manufacturing (Chapter 2) and multi-skilled teams (Chapter 6) would help achieve this aim.

Numerical flexibility, through the use of part-time and temporary employees, outsourcing and various relationships with outside partners. Supply-chain partnering (SCP) would aid the achievement of this.

Geographical flexibility, so that work may be dispersed to where it can be carried out most effectively, e.g. by introducing telework and virtual teams (Chapters 6 and 11).

Jobs-based flexibility, by creating jobs with greater control, broader responsibility and higher skill requirements, so that employees can control variances as they arise. This could be achieved, for example, by implementing employee empowerment and involvement initiatives (Chapter 9).

In addition to greater flexibility, different structures and practices also been used to improve quality (e.g. through TQM, SCP, call centres), to manage and exploit knowledge (e.g. through knowledge management programmes, TQM, lean manufacturing, job empowerment) and to contain and manage costs (e.g. through TQM, lean manufacturing, call centres). Management have therefore been seeking to improve organisational effectiveness on a number of fronts through the introduction of a range of working practices.

Yet the introduction of new working practices may not be sufficient to ensure success. It has often been argued that modern working practices are most effective, indeed, can only be effective, when underpinned by a highly skilled and committed workforce and when accompanied by appropriate human resource management practices (Becker & Huselid, 1998; Lawler, Mohrman & Ledford, 1995; Steedman & Wagner, 1987; Walton, 1985). Furthermore, as new technologies and practices become more widely used, the value added by the human resource becomes critical to competitive success, as the skills of the human resource may not be copied readily (Boxall, 1996; Klein, Edge & Kass, 1989; Porter, 1985).

There are a number of reasons for believing that a highly skilled and committed workforce is essential to the effective running of modern working practices. First, as modern working practices and technologies are often complex and can present the user with difficult problems, there is a need for a high level of technical skill as well as higher-order cognitive abilities, such as problem solving, critical thinking and analytical skills. Second, practices such as advanced manufacturing technology, teamwork, supply-chain partnering and job empowerment increase intra- and inter-organisational interdependencies, while social and relational networks are now viewed as crucial to the generation and sharing of knowledge (see Scarbrough, Chapter 8). This implies that interpersonal relationships must be managed effectively and that trust be developed (Hosmer, 1995; see also Chapter 5 on supply-chain partnering). To achieve this, high levels of communication and interpersonal skills are required. Third, the requirement to continuously improve processes, products and services that is embedded in much modern management (e.g. TQM) means that employees need to be creative and innovative (see Chapter 10; Amabile, 1988; West & Farr, 1990; Wolfe, 1994). Fourth, as new practices can increase the degree of discretion and responsibility, employees must be able to regulate their own behaviour (i.e. to act without close supervision and management control), respond to variances in the work process as they occur and exhibit discretionary behaviours (Susman & Chase, 1986). This means that employees need to be proactive (see Chapter 10), have the skills to deal with variances in the work process and have the skills necessary to engage in discretionary behaviour.

Given the proposed importance of a skilled and committed workforce, human resource management practices are now viewed as playing a necessarily crucial role in securing, maintaining and developing an organisation's skill base through well-resourced selection and recruitment procedures, high levels of initial and continued training, and performance management practices (see Chapter 12). The use of human resource management to secure, maintain and develop a highly skilled and committed workforce has been labelled a "high commitment" or "high involvement" approach (see Chapters 9, 14, 15, 16; Lawler, 1986; Walton, 1985). A number of surveys have documented the increasing use of human resource practices that are associated with this and the way these may be linked to modern working practices and operational management methods.

Organisational change is undoubtedly taking place but the jury is still out on the extent to which this represents a radical change across the whole economy (see Fincham & Rhodes, 1992). First, the continued influence of Taylorist and Fordist ideas would challenge such a view, e.g. in the service sector, some call centres represent an advanced form of Taylorism (Taylor & Bain, 1999) and the "McDonaldization" of service work has been well documented (Ritzer, 1998). Likewise, just-in-time (JIT), an essential component of lean manufacturing, can be viewed as an extension and revitalisation of Fordist principles, rather than a break from them (Tomaney, 1994; Wood, 1989). The "new workplace" is, so the argument would go, a mixture of "old" and "new" working practices (Blyton & Turnbull, 1994). Second, even where new practices are being introduced, this may not always be done as a package. Modern flexible working practices, in particular, may not necessarily be accompanied by high-commitment human resource practices, or vice versa. However, it is precisely the integration of these two facets that fundamentally transforms workplaces (Lawler et al., 1995; Storey, 1994; see also Wood, Chapter 14). Just as there are questions about the extent and nature of workplace change, questions are also being asked about whether the effects of change are as beneficial as many imply (Philimore, 1989). Modern working practices and high commitment human resource practices are often portrayed as leading to a win-win situation for the employee and the organisation. But while there are accounts demonstrating that the introduction of modern working practices can lead to more interesting work, more highly skilled work and lower levels of stress, there is also research showing that the introduction of modern working practices can intensify work, de-skill employees and lower their well-being (Adler & Borys, 1996; Braverman, 1974; Klein, 1989; Knights, Willmott & Collinson, 1985; Parker & Wall, 1998; Sturdy, Knights & Willmott, 1992). A modern working practice can have different effects. The effects of a flexible working practice are dependent on how it is implemented, designed and managed and are not solely dependent on some intrinsic feature of the working practice itself.

In summary, as organisations have sought to adapt to changing economic and social circumstances, they have become a patchwork of "new" working practices, "old" working practices, "new" working practices that are extensions of old principles and ideas, and different types of human resource management practice. In addition, there appears to be no straightforward relationship between a working practice and its effects.

Two perspectives that have helped in understanding this complex picture are (a) job design theory and (b) research that has examined the link between human resource management and organisational performance. Job design theory is important, as the effects of a working practice are significantly affected by the job design of the working practice in question (Parker & Wall, 1998). This means that, for a full understanding of why working practices have varying effects in different contexts, it is necessary to establish the job characteristics present in a particular working practice and the processes by which job characteristics are related to specific outcomes. Job and work design is also an important factor in research examining the human resource (HR)-organisational performance link. This research is important, as it draws together two key characteristics of organisational change over the last 30 years (i.e. the movement towards flexible working practices and high-commitment HR practices), and seeks to explain their separate and joint effects on firm performance.

The following sections outline the main issues and theories in job design theory and focus on research examining the HR-organisational performance link. The issues and themes within them run throughout many of the chapters in Parts II and III. In particular, job design theory is central to many of the debates in Part II, while the issues and debates regarding the HR-performance link are central to Part III. An appreciation of these areas is therefore crucial to understanding many of the chapters in this book.

(Continues...)

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Edition details

• Publisher: Wiley
• Publication date: 2002
• Language: English
• ISBN 10: 0471485438
• ISBN 13: 9780471485438
• Binding: Hardcover
• Edition number: 1
• Number of pages: 464
• Editor: Holman David, Wall Toby D., Clegg Chris W., Sparrow Paul, Howard Ann