Relatio~e New Relations With as Concepts of Loyalty Shift...Noel' said a few U.S. companies are...
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ployees as adults," declared Kevin Sullivan, vice president of human re- sources. The California firm at- tempts to encourage innovation, risk-taking and personal fulfillment in its people, said Sullivan, but does not feel threatened or offended if some eventually want to leave. "It's kindof likea no-fault divorce, that at some point, relationships change, individuals change, organi- zations change," said Sullivan. "So the thing that made the relationship click 10 years ago may no longer be valid." In fact, he said, Apple has a relativelylowturnover. Other signs of the times: steady growth in the country's "contingent" labor force, now 30 million strong. must recognize and act on their emotional wounds, he said. Noel' said a few U.S. companies are being more open about future uncertainty when they hire people, and he lauds it. "It's a much more healthy relationship than trying to buy someone's commitment and loy- alty.with a promise you can't keep:' he said. u • •• It's like a football team. They gather together for a season and then they renegotiate again for a whole new season. If they make the cut, they have a commit- ment for a year. But not forever." Apple Computer Inc., which pio- neered the personalcomputer indus- try, is among those rated as heading in new directions. "Weviewour'em- : of as as- any ex- and eas, iper lCtS and ilar- 'ami- urn- ono- the y be es a sion With the to than mg· eve, less the onal con- may npa- ther it's got to affect adversely all of the {got to affect adversely all of the employees."i)loyees." & Most every approach applies to ..•ost every approach applies to lot some degree the management con- e degree the management con- sultant's general-purpose tonic, bet- nt's general-purpose tonic, bet- ter communication and understand- communication and understand- ing. There must be smooth, honest There must be smooth, honest exchange of views upward and ange of views upward and downward in the corporate struc- ward in the corporate struc- ture, it is said again and again. All , it is said again and again. All employees should be made aware of loyees should be made aware of how their own labor fits into the, their own labor fits into the company's end product, be it finan- }lpany's end product, be it finan- cial advi . r '. 'iladvi' r '. .L very employee has to feel. .. i> very employee has to feel ... hat they're valued and that they're:i!\; they're valued and that they're contributing," said Bob Hunter, for- ributing," said Bob Hunter, for- merly a communications executive Iy a communications executive at financially troubled Eastern Air- inancially troubled Eastern Air- lines. "In order to do that, they have " . "In order to do that, they have o understand the company's goalsmderstand the company's goals its vision, its policies." zision, its policies." I , Irector 0 manager must reVilllarn nltt, dIrector 01 manager development at Battelle Memorial emotionielopment at Battelle Memorial Institute of Columbus, Ohio, offered Noel' :itute of Columbus, Ohio, offered ears a related view: "I'm finding that are beinelated view: "I'm finding that on," 1- some people can thrive on change people can thrive on change t of .. ...Jf you COmmllDltare witb them and he ).if you COmmllDltare witb them firm . olv th in chan e pro- healthy ..iP¥olve them in change pro- 'hey .• . " e added that "It soun s e buy soms..:.He added that "It sounds1'i]{e be- common sense, but it's amazing how alty- sense, but it's amazing how many companies SiTply don't seem he said.IY companies simply don't seem to be aware of that. . team. Tle aware of that." . Should a restructuring and layoffs season jhould a restructuring and layoffs becomenecessary, manyconsultants again forome necessary, manyconsultants say, the key to motivating the em- make th- the key to motivating the em- ployees who remain is to make sure ment forl'ees who remain is to make sure they believe that the organization's A IY believe that the organization's financial health has improved in a e health has improved in a major way and that enough fat has way and that enough fat has been cut and enough bureaucracy .ry, IS a d n cut and enough bureaucracy cleared so that their ownjobs will be III new ired so that their ownjobs will be •ex- more personally fulfilling. With that re personally fulfilling. With that . knowledge, they will go on with the iwledge, they will go on with the job in good stead. _ in good stead. Safeway Stores Inc. is trying to I iafeway Stores Inc. is trying to II applya similar philosophy. '( ily a similar philosophy. '( In a move to fend off a hostile p n a move to fend off a hostile p takeover, the grocery chain wenteover, the grocery chain went private in 1986 and has executed a vate in 1986 and has executed a painful slimming that took employ- nful slimming that took employ- ment from 167,000 to 120,000. To-" nt from 167,000 to 120,000. To- s day, through such things as internal ', r, through such things as internal ', newsletters, seminars and personal [ vsletters, seminars and personal [ visits from chairman Peter Mage- its from chairman Peter Mago- wan, Safeway is trying to heal the n, Safeway is trying to heal the _ New New Relations With as Concepts of Loyalty Shift These people are part-time or con- business cards or hard-to-get tickets tract workers, ranging from secre- to sporting events, she said. taries to broom-pushers, corporate When money is used as the re- lawyers to accountants. ward, however, many companies tie They can be taken on as needed it to productivity. and let go without fuss, giving com- Ford, for instance, has been paying panies more flexibility to grow or out since 1984 from a profit-sharing contract as the market dictates. plan that it implemented as part of a Here and there, companies are ask- program to energize its work force. ing new full-time hires to sign waiv- "Everybody has a different name for ers that. give the right to uncondi- it:' said author Lacey. "But what it tional termination. amounts to is you get paid for your Changes in pension programs also accomplishments, not for how much are making it easier for employees time you spend at a desk." to leave, and some employers like What many people find ironic is the changes for that reason. Recent that the United States appears to be legislation will require that all pen- moving awayfrom long-term ties at sions "vest" after five years, mean- a time when its most serious foreign ing an employee must only stay that competitor, Japan, counts employee long to qualify to collect at retire- loyalty and a no-layoff policy as key ment age. (Ten years was formerly to why its big corporationshave sue- the legal standard.) In addition, pen- ceeded in world markets. Japanese sions are widely being supplemented executives are astonished that by tax deferred accoufits into which American workers who have served employee and company both contrib- well for 20 years can find them- ute. These can be moved at any • selves on the street because of a time. mildrecession. "The kind of chains that organiza- But the contrast is not entirely tions used to have is less binding be- what it seems: here and there are cause people have more options," signs that Japan may be rethinking said RichardBalzer,a labor-manage- that approachas new economic chal- ment consultant. lenges arise. Belt-tightening aimed Meanwhile, ways in which people at neutralizing the impact of the are rewarded are changing too to re- newly strong yen has led some major fleet the times. "As profit margins Japanese companies into de facto get tighter, you can't constantly in- layoffs, shunting employees across crease salaries," said New York con- the country or to lower-paying jobs sultant Bright. "Managers are going at affiliated companies. While no one to need to learn different ways to expects Japan ever to adopt the U.S. share glory." This might includesim- model in full, it is moving in a similar ple things such as giving employees direction.
Transcript of Relatio~e New Relations With as Concepts of Loyalty Shift...Noel' said a few U.S. companies are...
ployees as adults," declared KevinSullivan, vice president of human resources. The California firm attempts to encourage innovation,risk-taking and personal fulfillmentin its people, said Sullivan, but doesnot feel threatened or offended ifsome eventually want to leave.
"It's kindof likea no-fault divorce,that at some point, relationshipschange, individuals change, organizations change," said Sullivan. "Sothe thing that made the relationshipclick 10 years ago may no longer bevalid." In fact, he said, Apple has arelativelylowturnover.
Other signs of the times: steadygrowth in the country's "contingent"labor force, now 30 million strong.
must recognize and act on theiremotional wounds, he said.
Noel' said a few U.S. companiesare being more open about futureuncertainty when they hire people,and he lauds it. "It's a much morehealthy relationship than trying tobuysomeone's commitmentand loyalty.with a promise you can't keep:'he said. u • •• It's like a footballteam. They gather together for aseason and then they renegotiateagainfor a whole new season. If theymake the cut, they have a commitment for a year. But not forever."
Apple Computer Inc., which pioneered the personalcomputer industry, is amongthose rated as headingin new directions. "Weviewour'em-
: ofas
asanyexandeas,iperlCtSandilar-
'amiurnono-the
y be
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~r tothan
mg·eve,lessthe
onalconmaynpather
it's got to affect adversely all of the {got to affect adversely all of theemployees."i)loyees."
& Most every approach applies to ..•ost every approach applies tolot some degree the management con- e degree the management con-
sultant's general-purpose tonic, bet- nt's general-purpose tonic, bet-ter communication and understand- communication and understand-ing. There must be smooth, honest There must be smooth, honestexchange of views upward and ange of views upward anddownward in the corporate struc- ward in the corporate struc-ture, it is said again and again. All , it is said again and again. Allemployees should be made aware of loyees should be made aware ofhow their own labor fits into the, their own labor fits into thecompany's end product, be it finan- }lpany's end product, be it finan-cialadvi . r '. 'iladvi' r '.
.L very employee has to feel. . . i> very employee has to feel ...hat they're valued and that they're:i!\; they're valued and that they're
contributing," said Bob Hunter, for- ributing," said Bob Hunter, for-merly a communications executive Iy a communications executiveat financially troubled Eastern Air- inancially troubled Eastern Air-lines."In order to do that, they have " . "In order to do that, they haveo understand the company's goalsmderstand the company's goals
its vision, its policies." zision, its policies."I , Irector 0 manager must reVilllarn nltt, dIrector 01 manager
development at Battelle Memorial emotionielopment at Battelle MemorialInstitute of Columbus, Ohio, offered Noel' :itute of Columbus, Ohio, offered
ears a related view: "I'm finding that are beinelated view: "I'm finding thaton," 1- some people can thrive on change uncertai~e people can thrive on changet of .....Jf you COmmllDltare witb them and he ).if you COmmllDltare witb themfirm . olv th in th~ chan e pro- healthy ..iP¥olve them in th~ change pro-'hey .• . " e added that "It soun s e buy soms..:.He added that "It sounds1'i]{ebe- common sense, but it's amazing how alty-~ithunon sense, but it's amazing how
many companies SiTply don't seem he said.IY companies simply don't seemto be aware of that. . team. Tle aware of that." .
Should a restructuring and layoffs season jhould a restructuring and layoffsbecomenecessary, manyconsultants againforome necessary, manyconsultantssay, the key to motivating the em- make th- the key to motivating the em-ployees who remain is to make sure ment forl'ees who remain is to make surethey believe that the organization's A I Ybelieve that the organization'sfinancial health has improved in a e p~~lncial health has improved in amajor way and that enough fat has ~ er~ ~or way and that enough fat hasbeen cut and enough bureaucracy .ry, IS adn cut and enough bureaucracycleared so that their ownjobswill be III new ired so that their ownjobswill be
•ex- more personally fulfilling. With that re personally fulfilling. With that. knowledge, they will go on with the iwledge, they will go on with the
job in goodstead. _ in goodstead.Safeway Stores Inc. is trying to I iafeway Stores Inc. is trying to II
applya similarphilosophy. '( ily a similarphilosophy. '(In a move to fend off a hostile p n a move to fend off a hostile p
takeover, the grocery chain wenteover, the grocery chain wentprivate in 1986 and has executed a vate in 1986 and has executed apainful slimming that took employ- nful slimming that took employ-ment from 167,000 to 120,000. To-" nt from 167,000 to 120,000. To- sday, through such things as internal ' , r, through such things as internal ' ,newsletters, seminars and personal [ vsletters, seminars and personal [visits from chairman Peter Mage- its from chairman Peter Mago-wan, Safeway is trying to heal the n, Safeway is trying to heal the _
~orge New Relatio~e New Relations With ~mployees as Concepts of Loyalty ShiftThese people are part-time or con- businesscards or hard-to-get ticketstract workers, ranging from secre- to sporting events, she said.taries to broom-pushers, corporate When money is used as the re-lawyers to accountants. ward, however, many companies tie
They can be taken on as needed it to productivity.and let go without fuss, giving com- Ford, for instance, has been payingpanies more flexibility to grow or out since 1984 from a profit-sharingcontract as the market dictates. plan that it implemented as part of aHere and there, companies are ask- program to energize its work force.ing new full-time hires to sign waiv- "Everybody has a different name forers that. give the right to uncondi- it:' said author Lacey. "But what ittional termination. amounts to is you get paid for your
Changes in pensionprograms also accomplishments, not for how muchare making it easier for employees time youspendat a desk."to leave, and some employers like What many people find ironic isthe changes for that reason. Recent that the United States appears to belegislation will require that all pen- moving away from long-term ties atsions "vest" after five years, mean- a time when its most serious foreigning an employee must onlystay that competitor, Japan, counts employeelong to qualify to collect at retire- loyalty and a no-layoff policy as keyment age. (Ten years was formerly to why its big corporationshave sue-the legal standard.) In addition, pen- ceeded in world markets. Japanesesions are widely beingsupplemented executives are astonished thatby tax deferred accoufits into which American workers who have servedemployee and company both contrib- well for 20 years can find them-ute. These can be moved at any • selves on the street because of atime. mildrecession.
"The kind of chains that organiza- But the contrast is not entirelytions used to have is less binding be- what it seems: here and there arecause people have more options," signs that Japan may be rethinkingsaid RichardBalzer,a labor-manage- that approachas new economic chal-ment consultant. lenges arise. Belt-tightening aimed
Meanwhile, ways in which people at neutralizing the impact of theare rewarded are changing too to re- newly strong yen has led some majorfleet the times. "As profit margins Japanese companies into de factoget tighter, you can't constantly in- layoffs, shunting employees acrosscrease salaries," said New Yorkcon- the country or to lower-paying jobssultant Bright. "Managers are going at affiliated companies. While no oneto need to learn different ways to expects Japan ever to adopt the U.S.share glory." This might includesim- model in full, it is moving in a similarple things such as giving employees direction.
