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1 Improving job quality and organisational performance simultaneously: Workplace innovation to achieve the EU2020 Strategy Frank Pot ‘Addressing Quality.

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Presentation on theme: "1 Improving job quality and organisational performance simultaneously: Workplace innovation to achieve the EU2020 Strategy Frank Pot ‘Addressing Quality."— Presentation transcript:

1 1 Improving job quality and organisational performance simultaneously: Workplace innovation to achieve the EU2020 Strategy Frank Pot ‘Addressing Quality of Work in Europe’, BAS, Sofia, 18-19 Oct 2012

2 Is job quality a luxury in times of crisis? Many countries focus on employment, e.g. Bulgaria (First Job National Agreement 6 June 2012) Many countries focus on fair wages and a fair tax system as well, e.g. Bulgaria (KNSB-CITUB congress May 2012) However, new jobs and higher wages can only be attained if the economic sectors are competitive and innovative. Competitiveness and innovativeness cannot be achieved by new technology and capital alone. Even more important is the optimal utilisation of the potential workforce. ‘Workplace innovation’ offers such an approach and includes high quality jobs and higher productivity. 2

3 3 Definitions 1 Workplace innovations are new and combined interventions in work organisation, human resource management and supportive technologies. Workplace innovation is a process of productive reflection as part of everyday working life, derives from interaction between stakeholders within and outside the organisation, builds bridges between the strategic knowledge of the leadership, the professional and tacit knowledge of frontline employees and the design knowledge of experts, Works towards win-win outcomes as a creative convergence rather than a trade-off

4 Definitions 2 Performance: productivity, innovation capability QWL: learning opportunities, wellbeing at work Related concepts: Non technological innovation including business models, marketing practices, collaboration in chain; no QWL New World of Work refers in particular to mobile work, independent of location and time, supported by ICT. Working smarter, as opposed to working harder High performance/involvement workplaces OSH management refers to health protection and health promotion 4

5 5 ‘National’ ‘programmes’ Finland: workplace development; ‘innovative, creative and participatory workplace of the future’(2012 – 2018) Germany: Initiative neue Qualität der Arbeit; innovative Arbeitsgestaltung; Arbeit und Lernen…Innovationsfähigkeit; Potentialberatung NRW Belgium: sociale innovatie (Flanders Synergy) Netherlands: sociale innovatie Norway: value creation UK: workplace innovation Ireland: workplace innovation Sweden: management and work organisation renewal Governance roles of govt, soc partners and research differ

6 6 Urgency workplace innovation Decreasing workforce – increasing labour productivity Global competition and knowledge based economy – development of competences and skills Making new technology work through innovative work organisation Workplace innovation explains a larger part of innovation success than technological innovation

7 Urgency New World of Work Cost saving real estate (fewer buildings) Adjusting to the WEB-generation (ways of learning, communicating, work-life-balance, work relations etc.) Reduction of CO2- emission (less travelling) 7

8 Connection with EU2020 Smart, Sustainable and Inclusive Growth Smart, by: ‘Flagship initiative Innovation Union’ Sustainable, by: ‘Industrial policy for the globalisation era’ Inclusive, by: ‘Flagship initiative for new skills and jobs’ Wellbeing on societal and individual levels, by: ‘Social Innovation Europe’ Workplace innovation integrates these objectives on the level of organisations: working smarter with less CO2- emission, developing skills and competences and improving organisational performance and job quality, creating wellbeing. This opportunity was recently recognized by the Commission but co-ordination between DG’s is still difficult. 8

9 9 Best and poorest performers in Finland (409 self assessments) Poorest group 31 projects top-down interventions Best group 152 projects participation internal collaboration Performance + - Source: Ramstad, 2009 Quality of working life +-

10 Performance effects of better working conditions and work organisation as assessed by management (DE) Source: Bonitz et al. 2007: 23 (n = 212) 10

11 11 Source: BISAM 2011/07, G.I.B.

12 12 Ireland –High Performance Work Systems have positive effects on performance outcomes, including labour productivity, and innovation levels –Diversity and equality systems have positive effects as well –Reduced employee turnover (considered to be an indicator for employee wellbeing) –No ‘quality of work’ measurement

13 13 Working Smarter and Performance (NL) Performance criterion SMEs without working smarter SMEs with working smarter Company results218 Company turnover715 Productivity514 Employment611 Economic Institute for SMEs. Source: Hauw et al., 2009; n = 650 % change in performance last 2 years

14 14 Social innovation and performance (NL) Performance criterion Performance social innovative versus not social innovative organisations Increase in turnover16% higher Increase in profits13% higher Innovation31% higher Productivity21% higher New clients17% higher Reputation Contented employees 12% higher Erasmus Competition and Innovation Monitor (n = 932). Source: Volberda et al., 2010

15 Characteristic Number organisations Not social innovative Social innovative TotalSign. Labour productivity average or lower293662%33%59% (much) above average204538%67%41%** No, little autonomy363279%49%76% Much autonomy116721%51%24%** Talents not used121227%4%24% Optimal use of talents377773%96%76%** Time pressure275656%53%55% No time pressure223044%47%45% Source: Netherlands Employers Work Survey 2010 in Oeij et al. 2012; ** = p≤0,01; n = 4989 15

16 16 Conclusions evidence Urgency to increase labour productivity by working smarter Difficult to draw general conclusions Simultaneous improvement of performance and quality of working life is possible but not always achieved National programmes are supportive Involvement of government differs between countries Key role social partners Conditions: –Commitment of management –Participation of employees and their supervisors

17 17 Overlap of OSH and workplace innovation Workplace innovation HealthWellbeingPerformance Work organisation  HRM  Employment relationship  Ergonomics  Working times  Job autonomy Employability Involvement Comfort Work-life- balance

18 18 Workplace innovation and OSH: goals and theories Workplace innovation and OSH are different policies with different objectives and instruments. Do not mix up. Workplace innovation is not directed at fewer occupational diseases or accidents or less absenteeism but it might help OSH policies refer to healthy and productive jobs (EC current policy, Agency project, PEROSH priority). Health is a value in itself. Additionally healthy people are expected to contribute more to productivity and innovation. Absenteeism causes productivity loss

19 Ergonomics Workplace ergonomics serves not only as the objective of reduction of physical workload (allowing better postures and movements; reducing lifting) and health promotion (physical exercise) but also that of productivity (easier and faster handling and processing; better lay-out) Ergonomics is an important field of interventions both for OSH and for workplace innovation 19

20 20 Stress risks: discrepancies in the work organisation Job demands Decision latitude Support supervisor colleagues Time staff Skills competences

21 21 Psychological demands/decision latitude model High-strain ActiveLow-strain Passive 1 23 4 A B Learning motivation to develop new behavior patterns Risks of psychological strain and physical illness HIGH LOW Decision latitude (control) LOWHIGH Psychological demands Source: Karasek, 1979; 1990

22 Modern Sociotechnology From complex organisations with simple jobs to simple organisations with complex jobs Internal (job autonomy) and external control capacity (direct worker involvement/influence/consultation and formal co- determination) Simultaneous improvement of organisational performance, QWL/wellbeing and quality of work relations Sources: Ulbo de Sitter et al. 1981, 1994, 1997; Pot et al., 1994; Van Hootegem et al., 2008 22

23 Work organisation and learning Concept ‘active jobs’ in job demands/control-model implies job autonomy (internal control capacity) related to single loop learning: are we doing things rightly Even more important is external control capacity (decisions about work organisation and targets) related to double loop learning: are we doing the right things. External control capacity has been measured in the latest (5th) European Working Conditions Survey of EUROFOUND, additionally to internal control capacity that was always part of the EWCS. Sources: modern sociotechnology, JDC-model, Argyris & Schön, 1978 23

24 24 European policy not self-evident Workplace innovation not a matter of course in EU policies Because: –Regarded as the prerogative of employers –Focus on individual workplaces –Focus on technological innovation –Focus on formal education –Confusion about concepts –“Win-win is clear, no extra EU-support needed” ?

25 European policy: Opportunities Flagship on innovation: workplace innovation in industrial policy Social Innovation Europe (social innovation at the workplace) European learning network for workplace innovation Draft new integrated guidelines for the employment policies EESC own initiative opinion ‘innovative workplaces’ Flagship on new skills and jobs Forthcoming ESF policy next period ‘Healthy and productive jobs’ policies Project workplace innovation and OSH, EU OSHA Workplace innovation projects EUROFOUND Research: FP7/SSH/NMP; HORIZON 2020? 25

26 Call: European Learning Network for Workplace Innovation DG Enterprise and Industry; Competitiveness and Innovation Framework Programme (CIP) 2013 – 2015/16 € 360.000/460.000; 50% for reimbursement History: Green paper 1997, high road, EWON, WIN, Social Innovation Europe, Dortmund-Brussels Position Paper. Tender: EWIN, European Workplace Innovation Network, submitted 17 September 2012 ISKS-Bulgarian Academy of Sciences is associate partner and national Ambassador 26

27 Conclusions Workplace innovation important to achieve the EU2020 Strategy Concept ‘workplace innovation’ is gaining policy profile. Integrated policy not yet adopted. Lobbying is still needed. All countries can participate in ‘European learning network for workplace innovation’, established by the Commission. National programmes can be supportive and should start in more member states Do not mix up ‘workplace innovation’ with ‘OSH policy’ (health protection/promotion) and/or the ‘decent work’ agenda (minimum requirements). These policies can reinforce each other if they are purposefully combined 27

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