The Learning Workplace Presentation March 2004 Lucy Fallon-Byrne, Director

Overview 1. Strategic importance of change in the workplace 2. Characteristics of successful workplace change and innovation 3. Workplaces in Ireland today: Survey research 4. Emerging priorities and areas for action

Wim Kok – Competitiveness and jobs  Increase adaptability of workers and enterprises  Attract more people to the labour market  Invest more and more effectively in human capital  Ensure effective implementation of reforms through better governance ‘ Member States, social partners, enterprises and workers must increase their capacity to anticipate, trigger and absorb change, whether cyclical or structural, if more jobs are to be created and filled’. Kok Report (2003)

1.Strategic importance of change in the workplace Performance of our workplaces is now critical to achieving our national ambitions and moving to higher value-added activities Workplaces can create new opportunities but to do so they must be geared towards constant change and innovation How work is configured and workplace relations are a real force for change, improvement and value added at national level However… There has been very little analysis and focus on the workplace in the development of national strategy to date

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Emerging characteristics of a future workplace Organisational fitness as a strategic priority Employees as the ‘thinking core’ of the organisation Promoting more participative models of management Investment in skills and training but in the context of the workplace Diversity – a source of competitive advantage Recognition of the value of better work-life balance Changing role for trade unions 2

Organisational Fitness Fitness – The capacity of the organisation to: LEARN – change commitments, attitudes and values ADAPT - its strategy and business model CHANGE – multiple organisational elements DEVELOP – needed capabilities OFP – Organisational Fitness Process

Six Silent Killers Unclear strategy Poor leadership style – top down An ineffective top team Poor co-ordination Closed vertical communication Inadequate leadership / manangement skills and development in organisation

Employees as ‘the thinking core’ In the future all workers will be knowledge workers Need to widen and deepen the knowledge base of the organisation Enormous implications for HRM information and consultation employee involvement creating the conditions for employees to contribute honest conversations tolerance of failure and risk New psychological contract

Benefits of high involvement – the international evidence Benefits –Overall performance and profitability –Productivity and efficiency –Innovation –Employee benefits New model of management –Participative and engaging managment style –Engaging rather than heroic management –About us rather than about me –Implies increased vulnerability, emotional intelligence

Perceived effects of partnership

Diversity Diversity critical because of demographic situation The business case for diversity –Widens the innovation, creativity and knowledge base –Allows for greater diversity in the thinking core –Mirrors the diverse needs of customers Ireland’s poor performance in relation to diversity –biggest gender pay gap in Europe at 16% –poor childcare infrastructure –largest gap between high and low skills employed

Changing role for trade unions Working in partnership with mangement to –Secure the future success of the organisation –Increase the skills and employability of their members Research shows that workers want –Unions to work more closely with management than at present –A wider range of representation including training and learning, flexibility, work-life balance

Workplaces in Ireland today NCPP/ESRI Survey Work Autumn 2003 Employee Survey employees –Focus Working conditions Attitude to change Openess to change Employer Survey –1400 private sector employers –572 Public sector organisations –Focus Perceptions of pressures for change Responses to pressures 3

Workplaces in Ireland: Key survey findings Employers –Twin track attention to innovation and costs –Increasing priority attached to developing human capital Employees –High levels of job satisfaction –High levels of commitment to work and to organisation –Evidence of substantial change over past two years –Evidence of willingness to change Three quarters of employees willing to accept increased responsibility –Importance of communication Employees who report higher levels of consultation relating to decisions affecting their work are more likely to accept change

Emerging areas for action 4 Under-utilisation of the workforce Low levels of information and consultation The knowledge / opportunities divide in the workplace Linking innovation and change to job satisfaction and reduction in stress Policy supports and infrastructure

Information flows - Private Sector Emerging areas for action 4

Percentage of employees consulted prior to decisions affecting their work

The opportunities divide Social class and educational attainment create important differences job satisfaction and work commitment levels of information and consultation levels of discretion and autonomy levels of partnership and participation levels of training How equal are our workplaces? 4

The opportunities divide: training Education levels 35% no quals 60% with 3 rd level quals Social class 35% semi skilled, 28% unskilled 63% higher professionals Full-time more than part-time Union more than non-union Public sector (60%) more than private sector (45%) More general in nature that specific How equal are our workplaces? 4

The opportunities divide: Higher professionals 3.3 times more likely to receive information that unskilled manual workers Higher professionals three times more likely to have participation arrangements in workplaces (58%) than unskilled workers (19.8%) but….. Where participation arrangements are in place there is a high level of involvement among semi-skilled and unskilled workers (54% and 74%) Employees in public sector (45%) much more likely to report presence of partnership than employees in private sector (18%) How equal are our workplaces? 4

The opportunities divide: Trade union membership lowest among: Young workers Those with no educational qualifications Those with short job tenure Part-time workers and Significanly lower among those with non- permanent contracts How equal are our workplaces ? 4

Under-utilisation of the workforce –Employees are under-utilised: low levels of consultation but high levels of willingness to change among workers –Lack of diffusion of new work practices Employee financial participation Flexible working Partnership and participation Inequality and underutilisation 4

D.Linking change to job satisfaction and reduction in stress –Reducing stress is particularly important in implementing change successfully –Information has little effect on reducing stress – information and consultation most powerful Autonomy Consultation and involvement Family-friendly policies Flexitime Information without involvement Lack of autonomy, control Performance review Working from home High level of organsational change Managing Stress Increasing Stress Emerging areas for action 4

Knowledge society and knowledge working needs a different type of support – a new HRM paradigm –Acknowledge employee involvement as a key strategy in achieving change and high performance –Make the economic and business case for equality and diversity –Recognise the link between well-being at work, work relations and productivity and innovation –Develop policies to address the opportunities divide in our workplaces and underutilisation of our workforce 5 Conclusions

2.Change as a mindset: Some examples Medtronic Tegral Abbott Aughinish Alumina High performance founded on information and consultation 80% of employees working on products that are less than 2 years old Employment continuing to grow despite significant cost disadvantage Philosophy based on partnership, participation and team working Commitment and expansion to growth for example into power generation Innovative links with third level Willingess to Change Allianz

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