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Improving job quality and organisational performance
simultaneously: Workplace innovation to achieve the EU2020 Strategy
Frank Pot
‘Addressing Quality of Work in Europe’, BAS, Sofia, 18-19 Oct 2012
Is job quality a luxury in times of crisis?
• Many countries focus on employment, e.g. Bulgaria (First Job National Agreement 6 June 2012)
• Many countries focus on fair wages and a fair tax system as well, e.g. Bulgaria (KNSB-CITUB congress May 2012)
• However, new jobs and higher wages can only be attained if the economic sectors are competitive and innovative.
• Competitiveness and innovativeness cannot be achieved by new technology and capital alone.
• Even more important is the optimal utilisation of the potential workforce.
• ‘Workplace innovation’ offers such an approach and includes high quality jobs and higher productivity.
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Definitions 1
• Workplace innovations are new and combined interventions in work organisation, human resource management and supportive technologies.
• Workplace innovation • is a process of productive reflection as part of everyday
working life,• derives from interaction between stakeholders within and
outside the organisation,• builds bridges between the strategic knowledge of the
leadership, the professional and tacit knowledge of frontline employees and the design knowledge of experts,
• Works towards win-win outcomes as a creative convergence rather than a trade-off
Definitions 2
• Performance: productivity, innovation capability• QWL: learning opportunities, wellbeing at work• Related concepts:• Non technological innovation including business models,
marketing practices, collaboration in chain; no QWL• New World of Work refers in particular to mobile work,
independent of location and time, supported by ICT.• Working smarter, as opposed to working harder• High performance/involvement workplaces • OSH management refers to health protection and health
promotion
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‘National’ ‘programmes’
• Finland: workplace development; ‘innovative, creative and participatory workplace of the future’(2012 – 2018)
• Germany: Initiative neue Qualität der Arbeit; innovative Arbeitsgestaltung; Arbeit und Lernen…Innovationsfähigkeit; Potentialberatung NRW
• Belgium: sociale innovatie (Flanders Synergy)• Netherlands: sociale innovatie• Norway: value creation• UK: workplace innovation• Ireland: workplace innovation• Sweden: management and work organisation renewal• Governance roles of govt, soc partners and research differ
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Urgency workplace innovation
• Decreasing workforce – increasing labour productivity• Global competition and knowledge based economy –
development of competences and skills• Making new technology work through innovative work
organisation• Workplace innovation explains a larger part of innovation
success than technological innovation
Urgency New World of Work
• Cost saving real estate (fewer buildings)• Adjusting to the WEB-generation (ways of learning,
communicating, work-life-balance, work relations etc.)• Reduction of CO2- emission (less travelling)
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Connection with EU2020 Smart, Sustainable and Inclusive Growth
• Smart, by: ‘Flagship initiative Innovation Union’• Sustainable, by: ‘Industrial policy for the globalisation era’• Inclusive, by: ‘Flagship initiative for new skills and jobs’• Wellbeing on societal and individual levels, by: ‘Social
Innovation Europe’• Workplace innovation integrates these objectives on the
level of organisations: working smarter with less CO2-emission, developing skills and competences and improving organisational performance and job quality, creating wellbeing.
• This opportunity was recently recognized by the Commission but co-ordination between DG’s is still difficult.
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Best and poorest performers in Finland(409 self assessments)
Poorest group31 projectstop-down
interventions
Best group152 projectsparticipation
internal collaboration
Per
form
ance
+
-
Source: Ramstad, 2009
Quality of working life+ -
Performance effects of better working conditions and work organisation as assessed by management (DE)Source: Bonitz et al. 2007: 23 (n = 212)
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Better position on the labor market
Quality and innovation
Reduced failure rate
Increased customer satisfaction
Reduced absenteeism
Process optimisation
Productivity increase
Consultation relevant for practice
Less compensation for sick people
Optimised health protection
0% 10% 20% 30% 40% 50% 60% 70% 80%
33.7%
41.1%
43.2%
62.1%
37.9%
50.5%
48.4%
60.0%
51.6%
56.8%
27.4%
24.8%
29.9%
27.4%
50.4%
41.0%
53.0%
59.8%
66.7%
70.9%
Production companies Trade and services
11Source: BISAM 2011/07, G.I.B.
Other
Higher product/service quality
Improved work organisation
Preserving employment
New technologies
Higher market share
New products/services
Higher profitability
Lower costs
Increased turnover
Increased productivity
Increased employability
0% 25% 50% 75% 100%
5.7%
37.4%
65.7%
58.1%
12.1%
17.4%
17.8%
13.5%
20.9%
19.1%
31.5%
43.7%
Answers to the question about improvements as a result of the potential-consultations
(consultations in NRW, Germany, started in 2010, n = 1.197)
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Ireland – High Performance Work Systems have positive effects on
performance outcomes, including labour productivity, and innovation levels
– Diversity and equality systems have positive effects as well– Reduced employee turnover (considered to be an indicator for
employee wellbeing)– No ‘quality of work’ measurement
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Working Smarter and Performance (NL)
Performance criterionSMEs without
working smarterSMEs with
working smarter
Company results 2 18
Company turnover 7 15
Productivity 5 14
Employment 6 11
Economic Institute for SMEs. Source: Hauw et al., 2009; n = 650
% change in performance last 2 years
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Social innovation and performance (NL)
Performance criterionPerformance social innovative versus
not social innovative organisations
Increase in turnover 16% higher
Increase in profits 13% higher
Innovation 31% higher
Productivity 21% higher
New clients 17% higher
ReputationContented employees
12% higher12% higher
Erasmus Competition and Innovation Monitor (n = 932). Source: Volberda et al., 2010
Characteristic Number organisations
Not social innovative
Social innovative
Total Sign.
Labour productivity average or lower 2936 62% 33% 59%
(much) above average 2045 38% 67% 41% **
No, little autonomy 3632 79% 49% 76%
Much autonomy 1167 21% 51% 24% **
Talents not used 1212 27% 4% 24%
Optimal use of talents 3777 73% 96% 76% **
Time pressure 2756 56% 53% 55%
No time pressure 2230 44% 47% 45%
Source: Netherlands Employers Work Survey 2010 in Oeij et al. 2012; ** = p≤0,01; n = 4989
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Conclusions evidence
• Urgency to increase labour productivity by working smarter• Difficult to draw general conclusions• Simultaneous improvement of performance and quality of
working life is possible but not always achieved• National programmes are supportive• Involvement of government differs between countries• Key role social partners
• Conditions:– Commitment of management– Participation of employees and their supervisors
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Overlap of OSH and workplace innovation
OSH Workplaceinnovation
Health Wellbeing Performance
Work organisation
HRM Employment
relationship Ergonomics Working
times
Job autonomyEmployability
InvolvementComfort
Work-life-balance
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Workplace innovation and OSH: goals and theories
• Workplace innovation and OSH are different policies with different objectives and instruments. Do not mix up.
• Workplace innovation is not directed at fewer occupational diseases or accidents or less absenteeism but it might help
• OSH policies refer to healthy and productive jobs (EC current policy, Agency project, PEROSH priority). Health is a value in itself. Additionally healthy people are expected to contribute more to productivity and innovation. Absenteeism causes productivity loss
Ergonomics
• Workplace ergonomics serves not only as the objective of reduction of physical workload (allowing better postures and movements; reducing lifting) and health promotion (physical exercise) but also that of productivity (easier and faster handling and processing; better lay-out)
• Ergonomics is an important field of interventions both for OSH and for workplace innovation
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Stress risks: discrepancies in the work organisation
Job demands
Decisionlatitude
Supportsupervisorcolleagues
Timestaff
Skillscompetences
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Psychological demands/decision latitude model
High-strain
ActiveLow-strain
Passive
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A
B
Learningmotivation to developnew behaviorpatterns
Risks ofpsychological strainand physical illness
HIGH
LOW
Decisionlatitude(control)
LOW HIGHPsychological demands
Source: Karasek, 1979; 1990
Modern Sociotechnology
• From complex organisations with simple jobs to simple organisations with complex jobs
• Internal (job autonomy) and external control capacity (direct worker involvement/influence/consultation and formal co-determination)
• Simultaneous improvement of organisational performance, QWL/wellbeing and quality of work relations
• Sources: Ulbo de Sitter et al. 1981, 1994, 1997; Pot et al., 1994; Van Hootegem et al., 2008
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Work organisation and learning
• Concept ‘active jobs’ in job demands/control-model implies job autonomy (internal control capacity) related to single loop learning: are we doing things rightly
• Even more important is external control capacity (decisions about work organisation and targets) related to double loop learning: are we doing the right things. External control capacity has been measured in the latest (5th) European Working Conditions Survey of EUROFOUND, additionally to internal control capacity that was always part of the EWCS.
• Sources: modern sociotechnology, JDC-model, Argyris & Schön, 1978
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European policy not self-evident
• Workplace innovation not a matter of course in EU policies
• Because:– Regarded as the prerogative of employers– Focus on individual workplaces– Focus on technological innovation– Focus on formal education– Confusion about concepts– “Win-win is clear, no extra EU-support needed” ?
European policy: Opportunities
• Flagship on innovation: workplace innovation in industrial policy
• Social Innovation Europe (social innovation at the workplace)
• European learning network for workplace innovation• Draft new integrated guidelines for the employment policies• EESC own initiative opinion ‘innovative workplaces’• Flagship on new skills and jobs • Forthcoming ESF policy next period• ‘Healthy and productive jobs’ policies• Project workplace innovation and OSH, EU OSHA• Workplace innovation projects EUROFOUND• Research: FP7/SSH/NMP; HORIZON 2020?
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Call: European Learning Network for Workplace Innovation• DG Enterprise and Industry; Competitiveness and
Innovation Framework Programme (CIP)• 2013 – 2015/16• € 360.000/460.000; 50% for reimbursement• History: • Green paper 1997, high road, EWON, WIN, Social
Innovation Europe, Dortmund-Brussels Position Paper.
• Tender: EWIN, European Workplace Innovation Network, submitted 17 September 2012
• ISKS-Bulgarian Academy of Sciences is associate partner and national Ambassador
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Conclusions
• Workplace innovation important to achieve the EU2020 Strategy
• Concept ‘workplace innovation’ is gaining policy profile. Integrated policy not yet adopted. Lobbying is still needed.
• All countries can participate in ‘European learning network for workplace innovation’, established by the Commission.
• National programmes can be supportive and should start in more member states
• Do not mix up ‘workplace innovation’ with ‘OSH policy’ (health protection/promotion) and/or the ‘decent work’ agenda (minimum requirements). These policies can reinforce each other if they are purposefully combined
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