Industrial Relations & Innovative Employees: From empirics to a roadmap for social dialogue
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Industrial Relations & Innovative Employees: From empirics to a roadmap for social dialogue
Guy Van Gyes Stan De Spiegelaere
HIVA-KU Leuven
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THE EMPIRICAL WORK: VIGOR - Project
• Intra- & inter-university cooperation– KULeuven:
• CESO Geert Van Hootegem• HIVA Guy Van Gyes
– UGent• Psychology Frederik Anseel• Sociologie Ronan Van Rossem
• 5 doctoral students + 3 affiliated researchers• IWT • 2009 -2013• www.vigorinnovation.com
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VIGOR – Project
1. Feedback & Innovative Work BehaviourUgent – Psychologie
2. Ambidexterity: realigning exploration en exploitation Ugent – Psychologie
3. Innovatie and networks in research teamsUgent – Sociologie
4. Innovation in SME’sUgent – Sociologie
5. Architecture of the work environment & creativeness KULeuven - Sociologie
6. Labour Regulation, work systems & innovative work behaviour KULeuven – HIVA
Labour regulation, work systems & innovative work behaviourHow are labour conditions related to employee innovativeness?
~ Outcomes of industrial relations
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Policy Context
Literature researchEmployee-level survey (+/- 1000) in 5 industries
Europa 2020:Competitivity
Innovation Labour Market Flexibility:Contractual, financial & temporal
Working smarter & better Working cheaperVigorHIVA
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Two ideal types of innovation
STI-innovation• Science, technology, innovation• Science and technology push (fundamental research)• Explicit, codified knowledge• What and why• Experiment• Separated process (R&D)
DUI-innovation• Doing understanding, interacting• Demand-pull, practical need
• Implicit, informal knowledge• How and who• Experience• Integrated business process
Source: Jensen et al.
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Innovative Work Behaviour– Job insecurity
• Reduces the work engagement • Reduces the innovative work behaviour • Negative correlation with autonomy
Innovative Work BehaviourEngagement
Autonomy
Job Insecurity
Job Insecurity & Innovative Work Behaviour
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Financial Rewards & IWB
Individual Performance Related Pay (PRP)- PRP => extrinsic motivation- Job => intrinsic motivation - IWB: intrinsic > extrinsic
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Financial Rewards & IWB
Collective Rewards & IWB- Free-rider- Actual influence
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Conclusion
• Labour conditions, industrial relations are important for enabling employees to innovate.
• Yet, labour organisation (job design, group design) is more important
• Plus, they shouldn’t be analysed in isolation!
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… to ideas on strategic renewal of workplace social dialogue
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Linking empirics to state-of-the art
• Synthesis– Innovation study DG Enterprise of EC:
www.cordis.lu– Literature review for the Flemish Minister of Work
• No empirical research, borrowing from others• De Spiegelaere, S., Van Gyes, G.(2012). Employee
Driven Innovation and Industrial Relations. In: Høyrup S., Bonnafous-Boucher M., Hasse C., Lotz M., Møller K. (Eds.), Employee-Driven Innovation: A New Approach, Chapt. 12. Hampshire (UK):Palgrave Macmillan,230-245
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Roadmap of strategic renewal
• Institutions matter• Role of workplace employee representation• Conceptual difference• Institutional change• Actor transformation
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1. Institutions matters ? Double speak from EU/OECD
To innovate: We need money (= low taxes and costs) and flexibility (=less rules)
Of course, you’ll have the usual credo
To innovate: We need a system of supporting institutions and rules,
because of
MARKET FAILURES
But there is another story (told by economists, picked up by OECD, EC DG Enterprise)
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2. Key role of direct participation• PEOPLE THINK HARDER: Employee participation
creates greater commitment to the business goals. • MORE PEOPLE THINK: greater resources are directed
towards the improvement of products and processes. • MORE THINK BETTER extended flow of information
creates a greater potential for creativity. • THE ‘TOP’ CHANGES BETTER: provides top
management with more information, thereby decreasing the amount of sub-optimal decision making.
• THE ‘BOTTOM’ FOLLOWS EASIER: creates a culture where workers are more likely to support decisions.
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3. Complementarities direct/indirect
• Direct participation: you’ll find it more in unionised settings
• Direct participation: it works better in unionised settings
• Direct participation: in non-unionised settings with direct participation, workers see it as a valuable alternative for union representation
A strong track needs strong sleepers
Research shows
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Employee representation
• Roles to play: ‘Voice’ of involved workers– Conflict arbitrator– Bargaining expert– Neutral change agent– Feedback mechanism for management
• Conditions– No ‘hold up’ on gains from both sides– Employment security, no downsizing fear– Open, trustworthy management attitude– Necessary competences & information on ‘business’– High interactivity with rank and file (otherwise
alienation)
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MORELESS
Employer TradeUnion Employer Trade
Union
Change management in a business strategy geared to innovation
Work organisation Labour conditions
Bargaining Dialogue
4. Conceptual difference: focus on ‘working smarter’ not ‘harder’
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Conceptual difference
Dialogue on work Bargaining
Starting point Problem-driven Interest-driven
Goal Decision Contract
Climate Co-operative Competitive
Method Discussion Pressure
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5. On the move to new productivity coalitions?
• Fordist compromise: more with less– National sector bargaining as core instrument
to distribute productivity gains => maintaining aggregate national demand
– Workplace information and consultation rights: role in labour controle; safe and within standards; knowledge to use in higher-level bargaining => work rules; wage scales; job classifications; health/safety monitoring
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5. On the move to new productivity coalitions
• Post-fordist compromise: better not cheaper– Productivity gains based on ‘added-value’– Transnational bargaining to set ‘income floor’ to maintain
aggregate demand– Lower-level bargaining/ variable pay/rewards– Workplace representation:
• Knowledge activism (Hall et al., 2006): autonomous collection and strategic application of legal, technical, and medical knowledge as political tools
• Job classifying => Job design• Work according to rules => Learning organisation• Safety – Accidents – Environment => Psychosocial – Stress -
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In the end
• Still about governance of employment relationship
ECONOMIC EXCHANGE
POWER RELATIONSHIP