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The NEW STS: Advances In Designing Healthy and Innovative Work Systems, Organizations and Networks A workshop sponsored by STS/RT & USI Part Two The STS.

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Presentation on theme: "The NEW STS: Advances In Designing Healthy and Innovative Work Systems, Organizations and Networks A workshop sponsored by STS/RT & USI Part Two The STS."— Presentation transcript:

1 The NEW STS: Advances In Designing Healthy and Innovative Work Systems, Organizations and Networks A workshop sponsored by STS/RT & USI Part Two The STS approach in the Lowlands: Mobilization Human Talent & Productivity 1 Geert van Hootegem Prepared Mind Belgium University of Leuven Pierre van Amelsvoort ST-Groep Netherlands University of Leuven © 2013

2 1.History & Lessons Learned 2.Theoretical Frame: Interaction Network 3.Two sides of the same coin: Quality of working life = Mobilization of Human Talent & Quality of organizations 4.Concepts: Organisational regimes & Design Principles 5.HOW: Design rules & Change Process Session Overview 2

3 3 History – after Durham (60-70) 3

4 4 Work structuring and humanizing the workplace Bottom up experiments with job design on department level Ideological started by department head (pioneers) Supported by academic action research Focus on quality of working life (job satisfaction) Despite success, lack of sustainability! History – after Durham (60-70)

5 Lack of Sustainability Lessons Learned: Lack of Diffusion 5

6 Lack of active support management and focus on short term success Isolated: limited design room Bottom up is not enough (neglected law of Newton)! Finite focus on quality of working life (Hidden) Resistance hierarchical levels and support staff Ideological clash soft <> hard No strategic business need to fundamental change Limited theoretical back bone: try and error, depend on enthusiastic consultants 6

7 Evolution of Sociotechnical Systems Three Waves Wave One: 1950s- 1970s Wave Three: 1990s-Present Wave Two: 1970s- 1990s

8 Theoretical Foundations: Lowlands Approach 8

9 Prime = understanding, intervening & predicting organizational behavior Ulbo de Sitters ( ) Interaction network theory W. Ross Ashbys ( ) Law of requisite variety (only variety beats variety) Niklas Luhmanns ( ) Social system theory (complexity reduction) De Sitters toward new factories and offices (1982): - Jump job design to organization design - Ideological clash >> theoretical logic: fruitful dialogue and common language - Enrich ODevelopment theory (finite attention to develop human competence) with ODesign theory: OD 2 9

10 10 Social systems theory Social systems are systems of communication to interact Membership with formal expectations and arrangements A system is defined by a boundary between itself and its (infinite complex and chaotic) environment The internal system is selecting only limited amount of external information The criterion for selection is meaning (sense making) Social systems are autopoietically closed: Filtering and processing of external information, Selective in adapting! on what is considered meaningful and what is not 10

11 11 Job satisfaction = quality of working life! Age Job satisfaction % are satisfied Irrespective of culture, country, and job characteristics! Satisfaction is an indicator for acceptance given working conditions Subjective approach: All people share the same basic needs? Acceptance of current situation is not an easy start to change (readiness for change) Discovery conflict expetations and reality Acceptance reality Switch from intrinsic to extrinsic motivation 11

12 12 quality control customer family work station teamleader work station customer planning intersection Work as an intersection of job demand and interaction A dynamic, objective view Human beings develops needs, motivation and orientation in interaction with his social environment A balanced interaction network is also a productive network 12

13 intersection internal interaction partners external interaction partners F = family F Result of task division Ideal situation: perfect balance (incl. work-life balance)and no waste All material, information and means on the right place, quality and time Match demand and limited means No disturbance Only one problem: Ideal situation doesnt exist: interference Working as an interaction network 13

14 Job demand – job control (regulation) (Karasek) 14 Real life networks interference (job demand) Uncertaincy Lack of (insufficient) material, information, right people and means Unbalance demand and capacity Competitive, conflicting demands Changing demand Custom made demand Human errors Technical disturbance Interference risk is a result of complexity Job control to cope with interference: Productive work Active, challenging work Job demandJob control 14

15 Job demand need Job control 15 Internal operational job control Task variety Authority-decision latitude Craftsmanship Access to flexible means Information Meaningful purpose, shared direct ion External operational job control Coordination/deliberations Support team and community Appreciative feedback leader Natural feedback Influence Strategic job control Participation & co-creation: design for reducing interference risk and decrease inference sensibility Learning and continuous improvement Job demandJob control 15

16 Job control Job demands lowhigh learning opportunities under-loaded work challenging work over-loaded work boring work stress risks high low Low strain work challenging work High strain work Passive, boring work Quality of working life 16 (Karasek) 16

17 17 (illegal) Work arrounds Buffers and hidden waste Focus on self interest Safety risks Work-life imbalance Early mental retirement Bullwhip effect Lack of Job Control 17

18 1 1,5 4,57 low high Job demand Job control Passive work Low strain work Active work High strain work high Quality of working life and absenteeism 18

19 Regulation capacity low high managing director production manager department head supervisor foreman operator traditional utilisation of potential unused potential available potential Quality of working life 19

20 20 Quality of working and healthy aging Malta Denmark Sweden Finland Slovenië Austria United Kingdom Hungary Belgium Luxembourg Netherlands Germany Ireland Cyprus Estland Romania Greece Italie Czechia Spain Portugal Poland France Lithuania Latvia Slovakia Bulgaria

21 Design and quality of organisation(al) health organization design division executing tasks (PS) separation execute – control (CS) complex interaction network need for central control & standards high interference risk high interference sensibility Unability to cope with interference at the source 21

22 22 Quality of organization Business demand uncertaincy Effective control (regulation) Static central control Dynamic local (distributed) control Stressed organisation Organised anarchy Classic bureaucracy High: custom made Low: repetitive production Productive, humane organisation 22

23 Business demand as starting point Efficiency Quality + Flexibility + Flexibility Innovation + Service Sustainability + Innovation Quality Efficiency 2010 War on talent + 23

24 Price Bureaucratic Regime Product variation low high Uncertainty low high Price + Quality Quality driven Regime Price + Quality + Flexibility and time Flexible Regime Price + Quality + Flexibility and time + Product / service innovation Network Regime In search of the most effective regime labour market policies sustainability 24

25 Interaction network culturepeople structure systems A whole system approach: Organisational regime government market technology competitors employer representatives trade unions strategy 25

26 Bureaucratic regime Principle 1 Simplification Division of work processes into small taks 26

27 Principle 2 Separation of thinking and doing Bureaucratic regime 27

28 Principle 3 Command and control tree Bureaucratic regime 28

29 29 customer Financial management People management Information management Risk management Knowledge management Facilitair management Operational management General management Account management Service management HR management Change management Stategic management Bureaucratic regime 29 worksystem

30 Functional concentration of activities & central control illusion Every department is confronted with total variety and lack of customer focus Departmental focus on control utilization of means Only at central level total overview and illusion of control 30

31 Principle 4 Control by strict rules and procedures Sorry, Its not on my work instruction You must a 237/654/9B/654M form sent to department 39 Bureaucratic regime 31

32 Detailed rules & procedures Strictly budget driven Simple jobs Narrow tasks Closed supervision Specialised tasks Separate think - do Command and control Central decision making Focus on hierarchical authority Power based Top down Structure Culture Systems People Bureaucratic regime 32

33 Structure Culture Systems People Horizontal coordination and meetings Quality Circles On line process control Quality circles Less hierarchical Reduced power distance Integration quality control Problem solving skills Consulting meetings Quality driven regime 33

34 Shifting business demands 34

35 35 Quality Evidence/Effect based Custom made Costcutting New laws Market driven uncertaincy Flexibiluty Responsibily riscmanagement Innovation speed International competion technology 35

36 Stressed organisation: Functional concentration of activities & central control illusion 36

37 Effects………. Moeizame communicatie Slow and high cost communication lines…….. 37

38 Effects………. Complex workflows and a meetings, meetings…………. Expensive overhead 38

39 Complicated cooperation, Suboptimalisation Effects………. 39

40

41 Oh, no… they produced it as I designed it……… Effects………. 41

42 Effects………. Control illusion and fingerpointing with hidden elbow room and work arounds……. 42

43 Silos: long troughput times Effects………. 43

44 Take away responsibilties and simple jobs Powerlessness Alienation Distrust Helplessness Early mental retirement Effects………. 44

45 Business demand Effective control Static central control Dynamic local control Stressed organisation Productive, humane organisation Organised anarchy Classic bureaucracy high low Stressed organisation 45 Complex/lack of communication Untransparent credits and cost Isolated silos and hidden waste Slow responsiveness and long throughput times Risk avoiding culture and internal focus High coordination cost (management) Disconnection management and employees Focus on exploitation & Neglect exploration and innovation Unhealthy high strain work and work-life imbalance 45

46 46

47 Business demand Effective control Static central control Dynamic local control Stressed organisation Productive, humane organisation Organised anarchy Classic bureaucracy high low 47 1.Focus on first effectiveness second efficiency: added value 2.Respect diversity and reduction of complexity: a)Focus on custom families (product, market, technology combinations) in stead of task specialization (reduce variety subsystem) b)Reduce number of transfer points (interference risk) 3.Human scale: a)Work teams 8 – 12 b)Working communities 40 c)Strategic units Self organisation: Increase local control and support and healthy hierachy: horizontal coordination and reduce number of hierarchical layers (decrease interference sensibility) with specific added value 5.Minimal critical specification based on trust and craftsmanship 6.Aligned systems (planning and control, HR practice, technology) 7.Result only work environment 8.Human talent mobilization 9.Direct democracy: Strategic participation/partnership and co- creation Design principles 47

48 Mmmmmh… complexity… sooo delicious!? 48

49 Focus on customer family, market & technology combination 49

50 Reduced organisational complexity: Conditions for local control The variety of the whole system stays the same. Every unit is confronted with less variety and has customer focus: emotional connection and human feedback mechnanism Departmental focus on control customer flow Local overview and control 50

51 Flexible regime Structure Culture Small units with a whole task Decentralised control Small central control staff Cross functional teams Systems Just in time Result driven: mutual goal setting Flexible work arrangements Focus on business process Management and staff: support and facilitate Trust based control People Multi skilled Self management Teamwork 51

52 Network regime Structure Culture Mini companies Temporarily structures Networking Strategic partnering Systems Focus on time to market People Custom oriented people = business partner Stake holder involvement Broad competences Human capital Entrepreneurs Participation in strategic issues 52

53 Customerfocussed Human talent is seen as business capital High involvement Partnership Speeding up product innovation process Mini companies Temporal structures Networking Price Quality Flexibility Product innovation Transformation process is leading Managers and staff dept. have a supporting and facilitating role Multi-skilling Teamwork Self management Just in time Minimal specification Local differentiation Result driven Business line oriented Small units with a whole task and decentralised control Price Quality Flexibility Less hierarchical Reduced power distance Integration of quality control Group meetings Quality awareness Quality circles Statistical process control Horizontal meetings Price Quality Focus on hierarchical authority Power based: Command and control Narrow tasks Simple and routine work Detailed rules and procedures Budget driven Specialisation Division of labour Price Hierarchy CulturePeopleSystemsStructure Business demands 53

54 Culture Focus on hierarchical authority Power based: Command and control Less hierarchical Reduced power distance Transformation process is leading Managers and staff dept. have a supporting and facilitating role Customerfocussed Human talent is seen as business capital People Narrow tasks Simple and routine work Integration of quality control Group meetings Quality awareness Multi-skilling Teamwork Self management High involvement Partnership Systems Detailed rules and procedures Budget driven Quality circles Statistical process control Just in time Minimal specification Local differentiation Result driven Speeding up product innovation process Structure Specialisation Division of labour Horizontal meetings Business line oriented Small units with a whole task and decentralised control Mini companies Temporal structures Networking Business demands Price Quality Hierarchy Price Quality Flexibility Price Quality Flexibility Product innovation Bridging the gap: example 54

55 people culture structure systems Ontwerpen & ontwikkelen Guiding principles & leadership Strategic choices Organisational behaviour viability productivity involvement Management of change Conservating mechanism An integral approach Quality of organisation Quality of working relations Quality of working life 55

56 Price Bureaucratic Regime Product variation low high Uncertainty low high Price + Quality Quality driven Regime Price + Quality + Flexibility and time Flexible Regime Price + Quality + Flexibility and time + Product / service innovation Network Regime In search of the most effective regime labour market policies sustainability 56

57 Design sequence rules: PCS From the whole to the parts + macro structure macro structure meso structure micro structure micro structure meso structure production structure Control structure From the parts to the whole (Information) systems Mission vision goals strategy guiding principles Organisation design

58 IV Realising I (explore/ discovering) Diagnosing Common Awareness III Designing Co-creation Ownership II (Imaging) Visioning Shared Direction Dialogue Self organisation Co-creation Education Change as a non-lineair cycle process 58

59 IV Realising I Diagnosing III Designing II Visioning Dialogue Self organisation Co-creation Education Characteristics of change process Every change process is unique Mixed interventions Design teams Large scale conferences Support self organization and co- creation In-company training and education Open education Iterative approach Mix top down and bottom up Create a common vision, awareness and readiness to change Strategic design: design team of key positions with consultation whole system Operational design: (emergent) co- creation of involved stakeholders 59

60 1.What have you learned? 2.What is common with the traditional approach (part 1) 3.What are the differences? 4.Futher questions or remarks Dialogue in small groups 60

61 Original STS LowlandsLowlands Approach Context Efficiency Repetitive manufacturing Surplus labor market Efficiency, quality, flexibility, innovation Custom made (knowledge work) Future war on talent/ healthy aging; shortage labor market Objective Humanization of workBusiness demand: Quality of working life Quality of organisation(al) health Quality of working relations Subject Job design (micro level)Organisation design and designing Concepts Open Systems Joint optimalisation social & technical system Bottom up change Design and change as a strategic competing (meaningful-sense making) factor Division of labor: twin structure concept (production & control structure) Education for self organization, co-creation, top-down and bottom-up Summary 61


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