TPP OP Class - DSpace@MIT:...
Transcript of TPP OP Class - DSpace@MIT:...
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
TPP OP Class
Workforce Management: Updating the Social Contract at Work
and A Short Primer on Labor Relations
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Today’s Agenda, Objectives
• Pose the key Challenge: viable social contract at work
• Short primer on Labor Relations--set up discussion of Kaiser Permanente Labor-Management Partnership Case
• Discuss Part Time Partner Redux case
Rebuilding a
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
The “Social Contract”
“The expectations that employees, employers and their communities and societies have for work and employment relationships”
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
The Old Social Contract?
• Emerged out of Depression & WWII • Image of a full time long term job • Loyalty, good performance exchanged for
security • Security increased with tenure • Benefits tied to tenure • Wages & productivity/profits grew together • Assumed spouse at home attending to
family & community responsibilities
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Today’s World of Work
• 70% “Regular”; 30% “Non-standard work • 48% of the workforce is female • 15% workers have spouse at home • Job durations more uncertain • Less expectation for long tenure • Wages, profits, productivity less correlated • Increased premium on skills & learning
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
America’s Choice: New Social Contract
• Cumulative Pressures between haves/have nots – Decade of increased inequality – Crisis in corporate confidence – Void in worker voice—decline in unions – Declining pension security: – Tax cuts of 2001, 2003??, and renewed budget deficits – Social and human service cuts at state level – Long hours—family, community pressures
• Which post war scenario will play out? – WWII and a new social contract – Vietnam and an era of conflict over scarce resources
Class Warfare or a
from defined benefit to 401(k)s
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Hourly Wages for Men by Wage Percentile, 1973-99
75
80
85
90
95
100
105
110
115
120
1973 1978 1983 1988 1993 1998
Inde
x (1
973=
100)
20th
50th
Source: Mishel, Lawrence, et al. 2000. The State of Working America 2000-2001. Economic Policy Institute.
95th
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Hourly Wages for Women by Wage Percentile, 1973-99
75
85
95
105
115
125
135
145
1973 1978 1983 1988 1993 1998
Inde
x (1
973=
100)
20th
50th
Source: Mishel, Lawrence, et al. 2000. The State of Working America 2000-2001. Economic Policy Institute.
95th
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
95/50 Percentile Wage Inequality, 1973-99
2.0
2.2
2.4
2.6
2.8
3.0
1973 1978 1983 1988 1993 1998
Rat
io
Men
Women
Source: Mishel, Lawrence, et al. 2000. The State of Working America 2000-2001. Economic Policy Institute.
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
0 5,000
10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
1947 1952 1957 1962 1967 1972 1977 1982 1987 1992 1997
Median Family Income, 1947-98
Source: Mishel, Lawrence, et al. 2000. The State of Working America 2000-2001. Economic Policy Institute.
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Annual Growth in Family Income, 1989-95 and 1995-99
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Lowest fifth Median 95th percentile
1989-95 1995-99
Source: Mishel, Lawrence, et al. 2000. The State of Working America 2000-2001. Economic Policy Institute.
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Black Hispanic White
1979 1989 1999
Average Family Hours, 1979-98
Source: Mishel, Lawrence, et al. 2000. The State of Working America 2000-2001. Economic Policy Institute.
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Change in Income and Hours for Middle Income Families, 1979-89 and 1989-98
-5%
-3%
-1%
1%
3%
5%
7%
9%
11%
13%
1979-89 1989-98
Average income Average hours
Source: Mishel, Lawrence, et al. 2000. The State of Working America 2000-2001. Economic Policy Institute.
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
1979 1982 1985 1988 1991 1994 1997
Health Insurance and Pension Coverage, 1979-98
Health insurance
Pension
Source: Mishel, Lawrence, et al. 2000. The State of Working America 2000-2001. Economic Policy Institute.
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1979 1989 1998
All Female headed
Poverty Rate, Families With Children, 1979-98
Source: Mishel, Lawrence, et al. 2000. The State of Working America 2000-2001. Economic Policy Institute.
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Labor Management Relations
Efforts to Transform the New Deal Model of Labor Relations
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Three Levels of Employment Relations System in a Firm
• Workplace Level--day to day relationships, job structures, co-worker, supervisory relations, etc.
• HR Functional Level--specific terms and conditions of employment are established or negotiated
• Strategic Level--basic decisions on firm strategy, location, structure, technology etc.
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
New Deal Model--1930s-70s
• Workplace: grievance procedure for input,
• Collective Bargaining: system; “take wages out of competition”
• Strategic Level: management--outside the influence of workers and unions
Tight, narrow job definitions,
Centerpiece of the
Left entirely to
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Efforts to Transform, 1980s
• Workplace: • Collective Bargaining:
flexibility, job security; new pay systems • Strategic Level:
joint governance, employee ownership • Current estimates:
significant efforts to change in place • Limited by business-labor political impasse
participation, teams, flexibility work rule
Info sharing, consultation,
1/3 relationships have
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
The Larger Setting
• Unions declined--35% in mid 50s to 9% in private sector today
• Still influential in older mnf. Industries • Growing in service sector; e.g. health care • Wide variations in quality of individual, local
relationships • National Level:
– Political impasse on labor policy--Business vs Labor – Void in informal business-labor dialogue
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Isolated Alternatives
• Labor-Management Partnerships – Saturn – Kaiser Permanente – New York Hospitals and Health Care Union – San Francisco Hotels & Hotel Workers Union – Airlines:
• New York City labor-management community post 9-11
Southwest & Continental
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Situating Saturn • Grew out of GM-UAW workplace
experiments with QWL, teams, NUMMI • GM couldn’t build small cars profitably • High level of trust built up between UAW
leader Don Ephlin & GM’s Al Warren • Both willing to champion a new approach • Most far-reaching & controversial labor
relations & org. design experiment in the U.S of the past quarter century
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Key Features of Saturn Partnership
• Team based work system--”29 work functions”
• Co-management--union-management partners throughout the organization
• Union participation in Manufacturing Action Council and Strategic Action Council
• Risk-reward pay system • Employment security • Partnership extends to suppliers & retailers
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Kaiser Permanente Partnership
• Biggest in the nation--started in 1997 • Visited Saturn & used it as a Benchmark • National in scope--26 unions • KP is a decentralized partnership with 2 parts:
– Permanente Group (for-profit physician groups) – Kaiser Health Care (HMO) and Hospitals (non-profit)
• Broad set of objectives--improve health care, expand the business, involve employees/unions in business operations and strategies
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Case of the Part-Time Partner
So, didn’t we solve this problem?
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Summary Pts:
• Positive Features – Allows better work-personal life integration
• Risks – Signaling lower commitment? – Less opportunities to build social networks – Reduced learning/development opportunities? – Blurring of work & family/personal time/space
Employees
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Summary Pts:
• Flexible work: – Retain valuable employees – Attract future employees looking for flexibility – Build employee appreciation & commitment – Avoid burnout – Identify/test links between hours & productivity – Discover new paths to productivity & quality
Benefits to the Firm
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Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Summary Pts:
• Managers: – Must take a system’s perspective—what other
HR policies need to be adjusted? – Dealing with differing workforce views-life
situations – Changing traditional “control” mindset
• Society/Government – Need to adapt employment laws/regulations to
fit more varied employment relationships
Challenges