New Forms of Work Organisation in search of High Performance

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New Forms of Work Organisation in search of High
Performance
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NFWO and High Performance
Business Problems
Changes
Change Processes
Outcomes
Vision Leadership Involvement Commun- Ication
Partnership Training Confidence building
Environmental Pressures Opportunities
Crises Internal Problems
Cultural Production Organisation HRM
Benefits for Company Employee benefits
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1. Business Pressures

• 1.1 General pressures from the environment
• Globalisation of competition Texas I.
• more demanding customers Microsoft, TI
• De-regulation ESB
• Rapidly changing technologies
• Over-capacity in the industry (Dot Coms)
• maturity of demand TI (NATO buys less)

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• 1.2 Opportunities and crises include
• New market opportunities
• Corporate crises such as poor financial
  performance Bord na M
• Change in competitive position B na M Bonas
  Machines

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• 1.3 Internal business problems include
• Managing seasonality fluctuation in demand B
  na M
• High fixed costs B na M
• High capital intensity Texas I
• Modernising a family business

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2. Changes
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2.1 Culture Changes

• People Orientation increasing trust,
  participation, autonomy, accountability,
  creativity, communication, consultation,
  empowerment, responsibility, development of the
  individual
• Focus on Customer Service not just formal
  policies but embedded in the values of the
  company. Texas I. moveded from a culture of
  technology-led excellence to a customer-led
  business philosophy with a complex set of values
  like quality, customer satisfaction, cip, people
  involvement.
• Total Quality philosophy, culture
• Strategic Integration alignment of business and
  employee objectives

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2.2 Production Strategies

• Supplier partnerships (Microsoft)
• Outsourcing
• Customer Service customer partnerships TI
• Total Quality Programmes TQM Zero Defect,
  formal quality procedures ISO 9000, 2. TI
• New technology

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• Improving innovative capacity faster development
  cycles widening product range faster response
  to customer needs adding value to existing
  products upgrading products
• Improving operating efficiency flexibility,
  shorter cycle times, relations with suppliers,
  controlling costs, improving quality, managing
  working capital eg Bonas, Texas I.
• Continuous improvement Everyone in constant
  search for small improvements in daily work
  people as problem solvers creative eg Bonas,
  T.I.

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2.3 Organizational Structure

• Market focused or process-orientated business
  units moves away from functional or product
  based structures to business units that focus on
  distinct parts of the market. process
  re-engineering TI realignment with market goals
  BnaM
• Team working corrective action, quality
  improvement teams teams are accountable for
  targets, decision making, multiskilled.
  Microsoft, Frederiksborg. BnaM teams meet
  production, cost, quality targets responsible
  for supplies, scheduling, organising time,
  recruiting temps eg

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• Reduced layers of management hier-archical
  structures replaced by flatter decentralised
  structures.
• Reduced number of functions specialist expertise
  integrated into teams
• Supervisory role in team leading, facilitating
  coaching rather than regulating controlling

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2.4 HRM Changes

• 2.4.1 Work Practices
• 2.4.2 Training
• 2.4.3 Performance Measurement
• 2.4.4 Reward Systems

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2.4.1 Working Practices

• Flexible working time annualised hours, shift
  patterns adapted to seasonal demand
• Multi-skilling Job Rotation Widen skills to
  work more flexibly, often in teams, job groups,
  part-timers eg Fredericksborg

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2.4.2 Training

• Increased investment in education training eg
  T.I., Aughinish.
• Wider participation in training ed programmes
  encouraged by company et Aughinish
• Change in focus of ed training investment
  past on skills for job now wider skills for
  enhanced job personal skills (team, problem
  solving, interactive, learning skills) business
  management skills (cost control) eg BnaM.

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2.4.3 Performance Management

• Use of financial non-financial performance
  measures eg customer satisfaction, process
  efficiency, organizational learning focused on
  drivers of competitive success financial
  results key performance indicators
• Objectives for teams individuals In past
  there were goals for managers functions now
  for teams individuals linked back to the
  corporate objectives

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• Open information systems Open information flows
  enable all staff to understand performance.
  Teams can take decisions in relation to the whole
  company eg Bonas, BnaM,Aughinish
• New sources of information customer surveys,
  benchmarking (TI), customer response forms,
  attitude surveys

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• Change in individual appraisals appraising staff
  against performance targets, horizontal
  assessment by other employees, emphasis on
  development going forward eg Bonas, TI Bonas
  moved from backward-looking to forward-looking
  performance system.

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2.4.4 New Reward Systems

• Emphasis on performance In past used pay scales
  now emphasis on performance of individuals
  teams. Bonas reduced wage bands from 6 to 2 and
  based pay on performance. B na M basic wage plus
  payment for output quality. Bonas decided not
  to compete on the basis of low pay became a
  wage leader
• Payments for knowledge, team individual
  bonuses,
• Profit sharing, share ownership schemes, bonuses
  Eircom

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3. The Change Process

• Staff involvement Wide consultation say in
  decision making gets motivation, commitment,
  breakdown of us them eg Frederiksborg
• Communication To understand business problem to
  communicate vision B na M
• Feedback from employees staff attitude surveys
  eg TI

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• Development of a clear vision helps staff to
  identify with goals understand how changes fit
  wider plan eg TI
• Strong Leadership eg TI
• Partnership with Trade Unions eg Bonas, B na M,
  Fredericksborg, Hagen
• Building Confidence, Trust A step by step
  approach but comprehensive eg Bonas, Microsoft,
  Frederiksborg
• Training Bonas held workshops on change,
  negotiation team working for shop stewards
  mgt

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4. Outcomes

• Benefits

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4. Outcomes

• 4.1 Benefits for Companies
• Improved rate of introduction of new products,
  services, processes
• Increased operating efficiency TI improved
  productivity by 40, reduced defects by 80,
  improved cycle time by 35
• Better able to make structural adjustments
  acceptance of need for change in response to
  environment

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• Improved customer satisfaction quality, faster
  with new products, flexibility eg Microsoft
• Improved sales
• Financial performance turned around
• eg B na M, TI
• Expansion into new markets B na M
• New investment attracted eg TI expansion of
  semi-conductor manufacturing in Italy

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• 4.2 Benefits for Employees
• Job satisfaction range of tasks, autonomy, say
  in decision making, consultation, control over
  daily activities. Stimulating challenging work
  environment. Reduced staff turnover
  absenteeism.
• Employability Training in work personal
  skills working in new techniques eg Bonas, BnaM,
  Microsoft.

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• Existing jobs protected job losses avoided B
  naM TI
• New jobs created New markets, market position.

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Conclusion Critical Success Factors

• Face external pressures
• Understand the business case for change
• Companies trade unions need knowledge of NFWO
• Clear view of end results of change process for
  all
• Communicate consult extensively
• Tailor the elements of NFWO to own circumstances

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• Need to have resources (knowledge, finance,
  people) to implement nfwo
• Should introduce new systems of performance
  measurement and control
• Change process should be comprehensive,
  integrated, step by step.
• No right model, no single driver of change.

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Reference

• New Forms of Work Organisation Case
  studies.(1999) European Commission, DG for
  Employment, Industrial Relations and Social
  Affairs. www.europa.int.eu