| Topic : Innovation in HRM in turbulent times |
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last activity : 07 06 2010 20:18:04 +0000
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Managing Performance in the Knowledge and Innovation Worker Age
by Ron Lawrence
Inflexible work arrangements such as 8-to-5 shifts are about as modern as Charlie Chaplin's assembly line in the classic movie "Modern Times." The model of industrial-age factories in that movie was later applied to offices, creating workhouses with endless rows of desks occupied by drones wearing visors and counting things. While it's still necessary to have workers in assembly plants and clerks on department store floors, today's knowledge and innovation (KI) workers don't need to be confined to cubicles eight hours a day to create value.
Companies cling to the old workhouse practices because managing people is easier when one can see and touch them every day. Unfortunately, this illusory management practice encourages the wrong performance measurements such as attendance and visibility rather than productivity and creativity. Today's KI workers tend to rebel against command-and- control structures and thrive on autonomy, flexibility and self-determination. In this environment, they can become more creative, responsible and productive team members, offering companies that embrace alternative work arrangements an advantage over those that insist on antiquated schedules and practices.
Flexible Arrangements Benefit Everyone
The assumption that management needs to keep an eye on workers so they don't goof off is what Douglas McGregor called Theory X in his book The Human Side of Enterprise. It's based on the notion that the average employee lacks ambition, shies away from responsibility, dislikes work and does not care about organizational goals. Therefore, workers must be watched or they will take advantage of the employer. Conversely, McGregor's Theory Y says workers are responsible and self-directed to meet work objectives if they are committed to them. That commitment depends on rewards that bring self-fulfillment beyond the basics of food and shelter. Theory Y fits today's KI workers, who are not drones but self-motivated professionals who don't need to be chained to a desk.
Flexible working arrangements can include flexible work hours, alternative schedules or work settings, telecommuting, job sharing and similar nontraditional ways to work. Statistical data and research on the use and effectiveness of flexible work arrangements demonstrate many benefits to employers, employees and the community at large. For example, they:
1. Increase individual autonomy and employee engagement.
A 2006 study published in the Journal of Managerial Psychology surveyed multiple organizations and found perceived organizational support for flexible arrangements predicts both job and organizational engagement. Employees are more engaged when they have more autonomy and control and greater flexibility in how, when and where to be productive.
2. Increase retention and productivity.
A 2007 study in the Journal of Employee Relations investigated part-time work, time off in lieu of other benefits, staggered working hours and shift swapping in Scotland. It found these practices have the positive impact of increasing retention, enhancing employee relations and decreasing employee complaints about fairness. Productivity also may increase when people are allowed to work at their peak times rather than set times chosen by the organization. More satisfied engaged employees means lower attrition and turnover, which promotes sustained organizational productivity and cost savings.
3. Attract highly motivated staff and help meet labor demand during skills shortages.
A 2003 study in the International Journal of Manpower researched small, private Spanish firms to test the adoption of certain family-friendly HR practices. Driven by a tight labor market and a high percentage of female employees, particularly women with children, these small companies benefited from family-friendly or alternative working arrangements. In the U.S., as talent becomes scarce due to the retirement of baby boomers, any service-sector company ultimately will have to adopt some flexible arrangements just to compete for talent.
4. Help achieve family-friendly goals, meet the equality agenda and provide solutions for special needs population.
Today's employees are more attuned to what companies offer them beyond salary, such as professional development and working conditions that let them meet family obligations, achieve work-life balance and live a lifestyle of choice. However, while flexible arrangements can help meet the equality agenda and provide solutions for special needs populations, companies must beware of inconsistencies. Informal arrangements that differ from department to department may lead to claims of unfairness and discrimination.
5. Reduce absenteeism.
For example, if a parent can work from home while caring for a sick child, less productivity will be lost if the individual can work from home rather than having to take the whole day off.
6. Increase savings and increase HR capacity.
A 2002 study in the journal Work Study showed telecommuting can increase HR capacity and savings in direct expenses. For instance, two individuals may share an office and one set of office equipment, and the company can reduce its real estate footprint. In addition, job sharing may allow individuals to develop extra skill sets. A leading U.S. financial services company pioneered a model of configuring its office space differently to take advantage of these concepts. Rather than permanently assigned cubicles or offices, it provides desks, workstations and conference rooms that are shared by everyone. The company operates successfully with about 1,000 employees in a building that would only house 300 in permanently assigned spaces and traditional eight-hour shifts. Other companies have adopted this model, recognizing that KI workers create value by what they do, not where they do it.
7. Allow employees to work more hours.
According to a 2008 study in Library Management, flexible working arrangements may counter long working hours at the office and heighten morale. For example, a single parent equipped with the proper technology may be able to work from home from 10 p.m. to midnight, giving the company an additional two hours without being at the office. It's an employer-of- choice practice because the company is viewed as being more responsive and accommodating to those with special needs.
Flexible working arrangements don't just benefit employees and employers. They also reduce environmental impact and produce savings in infrastructure and energy for society. Telecommuting means fewer cars on the road, less urban traffic congestion and less time and fuel wasted looking for a parking space. With skyrocketing fuel costs and sustainability at the forefront of public consciousness, progressive and environmentally responsible companies take advantage of wireless connectivity and other technologies that facilitate nontraditional ways of working and simultaneously aid recruiting and retention and performance management practices.
Managing Performance and Communication
One reason companies have not totally embraced flexible working arrangements is that managing the complexities of job rotation, job sharing and telecommuting creates new burdens for HR and line managers. According to a survey of 90 U.S. employers by Hewitt Associates, a global human resources service company, "very few employers have formal and consistent policies and procedures in place to manage these programs."
There is no one-size-fits- all model for creative work solutions. Perhaps the best place to start creating policies and procedures is by researching best practices in the literature and among peers at other companies. Here are a few general guidelines:
1. Set clear expectations.
Flexible arrangements call for extra clarity in setting deliverables, objectives and expectations and giving performance feedback. Communication frequency and quality are critical. When managers make their messages explicit, associates will know what is expected and can deliver accordingly.
2. Communicate honestly.
Only 48 percent of the employers in the Hewitt study provided education and communication about their workplace flexibility programs to all employees. If flexible work arrangements are not managed and communicated well, resentment may arise when some workers are perceived as contributing less, whether that is a reality or not. If some business units or employees enjoy flexible arrangements while others do not, be very clear in communicating the needs of the business and its customers to explain why differences in treatment are necessary. Clear and honest communication also is crucial in recruitment. Companies sometimes make the huge mistake of asserting their support of flexible working arrangements without demonstrating it in action. When a company Web site or job announcements proudly proclaim flexibility, a new hire had better not be told he or she is expected to work 8 to 5 Monday through Friday, without exception.
3. Invest in technology.
Companies that choose to embrace a telecommuter model need to provide wireless laptops and PDAs. Individual employees cannot be expected to purchase these items. Remember, investments in technologies may be small compared to the savings realized from a reduced real-estate footprint or less office equipment.
4. Consider generational differences.
Different generations have different comfort levels using e-work technologies. Older workers may need extra encouragement to use instant messaging and text messaging, which can be second nature among younger workers. If 50-year-old managers are not comfortable communicating with direct reports who are in their 20s using the latest technologies, they may believe flexible arrangements are not working.
5. Measure success.
According to the Hewitt study, 71 percent of the employers surveyed did not measure the effectiveness of flexible work programs, and only 14 percent measured results formally. It's important to keep asking which flexible practices contribute to retention and satisfaction and which do not. Further, where a substantial investment in technology has been made, continued measurement of the ROI and benefits of flexible arrangements will ensure these programs can be improved over time.
Giving people the flexibility to work when and where they want is a compelling value proposition. The next step in the evolution of flexible work is for e-work and other alternative work arrangements to replace corporate cubicles that are really just a step above the workhouses of the industrial revolution. Leading companies already are taking advantage of the vast benefits of flexible arrangements as modern society and the rise of the knowledge worker demand that talent managers change how people work and how performance is measured and rewarded.
by Ron Lawrence
Inflexible work arrangements such as 8-to-5 shifts are about as modern as Charlie Chaplin's assembly line in the classic movie "Modern Times." The model of industrial-age factories in that movie was later applied to offices, creating workhouses with endless rows of desks occupied by drones wearing visors and counting things. While it's still necessary to have workers in assembly plants and clerks on department store floors, today's knowledge and innovation (KI) workers don't need to be confined to cubicles eight hours a day to create value.
Companies cling to the old workhouse practices because managing people is easier when one can see and touch them every day. Unfortunately, this illusory management practice encourages the wrong performance measurements such as attendance and visibility rather than productivity and creativity. Today's KI workers tend to rebel against command-and- control structures and thrive on autonomy, flexibility and self-determination. In this environment, they can become more creative, responsible and productive team members, offering companies that embrace alternative work arrangements an advantage over those that insist on antiquated schedules and practices.
Flexible Arrangements Benefit Everyone
The assumption that management needs to keep an eye on workers so they don't goof off is what Douglas McGregor called Theory X in his book The Human Side of Enterprise. It's based on the notion that the average employee lacks ambition, shies away from responsibility, dislikes work and does not care about organizational goals. Therefore, workers must be watched or they will take advantage of the employer. Conversely, McGregor's Theory Y says workers are responsible and self-directed to meet work objectives if they are committed to them. That commitment depends on rewards that bring self-fulfillment beyond the basics of food and shelter. Theory Y fits today's KI workers, who are not drones but self-motivated professionals who don't need to be chained to a desk.
Flexible working arrangements can include flexible work hours, alternative schedules or work settings, telecommuting, job sharing and similar nontraditional ways to work. Statistical data and research on the use and effectiveness of flexible work arrangements demonstrate many benefits to employers, employees and the community at large. For example, they:
1. Increase individual autonomy and employee engagement.
A 2006 study published in the Journal of Managerial Psychology surveyed multiple organizations and found perceived organizational support for flexible arrangements predicts both job and organizational engagement. Employees are more engaged when they have more autonomy and control and greater flexibility in how, when and where to be productive.
2. Increase retention and productivity.
A 2007 study in the Journal of Employee Relations investigated part-time work, time off in lieu of other benefits, staggered working hours and shift swapping in Scotland. It found these practices have the positive impact of increasing retention, enhancing employee relations and decreasing employee complaints about fairness. Productivity also may increase when people are allowed to work at their peak times rather than set times chosen by the organization. More satisfied engaged employees means lower attrition and turnover, which promotes sustained organizational productivity and cost savings.
3. Attract highly motivated staff and help meet labor demand during skills shortages.
A 2003 study in the International Journal of Manpower researched small, private Spanish firms to test the adoption of certain family-friendly HR practices. Driven by a tight labor market and a high percentage of female employees, particularly women with children, these small companies benefited from family-friendly or alternative working arrangements. In the U.S., as talent becomes scarce due to the retirement of baby boomers, any service-sector company ultimately will have to adopt some flexible arrangements just to compete for talent.
4. Help achieve family-friendly goals, meet the equality agenda and provide solutions for special needs population.
Today's employees are more attuned to what companies offer them beyond salary, such as professional development and working conditions that let them meet family obligations, achieve work-life balance and live a lifestyle of choice. However, while flexible arrangements can help meet the equality agenda and provide solutions for special needs populations, companies must beware of inconsistencies. Informal arrangements that differ from department to department may lead to claims of unfairness and discrimination.
5. Reduce absenteeism.
For example, if a parent can work from home while caring for a sick child, less productivity will be lost if the individual can work from home rather than having to take the whole day off.
6. Increase savings and increase HR capacity.
A 2002 study in the journal Work Study showed telecommuting can increase HR capacity and savings in direct expenses. For instance, two individuals may share an office and one set of office equipment, and the company can reduce its real estate footprint. In addition, job sharing may allow individuals to develop extra skill sets. A leading U.S. financial services company pioneered a model of configuring its office space differently to take advantage of these concepts. Rather than permanently assigned cubicles or offices, it provides desks, workstations and conference rooms that are shared by everyone. The company operates successfully with about 1,000 employees in a building that would only house 300 in permanently assigned spaces and traditional eight-hour shifts. Other companies have adopted this model, recognizing that KI workers create value by what they do, not where they do it.
7. Allow employees to work more hours.
According to a 2008 study in Library Management, flexible working arrangements may counter long working hours at the office and heighten morale. For example, a single parent equipped with the proper technology may be able to work from home from 10 p.m. to midnight, giving the company an additional two hours without being at the office. It's an employer-of- choice practice because the company is viewed as being more responsive and accommodating to those with special needs.
Flexible working arrangements don't just benefit employees and employers. They also reduce environmental impact and produce savings in infrastructure and energy for society. Telecommuting means fewer cars on the road, less urban traffic congestion and less time and fuel wasted looking for a parking space. With skyrocketing fuel costs and sustainability at the forefront of public consciousness, progressive and environmentally responsible companies take advantage of wireless connectivity and other technologies that facilitate nontraditional ways of working and simultaneously aid recruiting and retention and performance management practices.
Managing Performance and Communication
One reason companies have not totally embraced flexible working arrangements is that managing the complexities of job rotation, job sharing and telecommuting creates new burdens for HR and line managers. According to a survey of 90 U.S. employers by Hewitt Associates, a global human resources service company, "very few employers have formal and consistent policies and procedures in place to manage these programs."
There is no one-size-fits- all model for creative work solutions. Perhaps the best place to start creating policies and procedures is by researching best practices in the literature and among peers at other companies. Here are a few general guidelines:
1. Set clear expectations.
Flexible arrangements call for extra clarity in setting deliverables, objectives and expectations and giving performance feedback. Communication frequency and quality are critical. When managers make their messages explicit, associates will know what is expected and can deliver accordingly.
2. Communicate honestly.
Only 48 percent of the employers in the Hewitt study provided education and communication about their workplace flexibility programs to all employees. If flexible work arrangements are not managed and communicated well, resentment may arise when some workers are perceived as contributing less, whether that is a reality or not. If some business units or employees enjoy flexible arrangements while others do not, be very clear in communicating the needs of the business and its customers to explain why differences in treatment are necessary. Clear and honest communication also is crucial in recruitment. Companies sometimes make the huge mistake of asserting their support of flexible working arrangements without demonstrating it in action. When a company Web site or job announcements proudly proclaim flexibility, a new hire had better not be told he or she is expected to work 8 to 5 Monday through Friday, without exception.
3. Invest in technology.
Companies that choose to embrace a telecommuter model need to provide wireless laptops and PDAs. Individual employees cannot be expected to purchase these items. Remember, investments in technologies may be small compared to the savings realized from a reduced real-estate footprint or less office equipment.
4. Consider generational differences.
Different generations have different comfort levels using e-work technologies. Older workers may need extra encouragement to use instant messaging and text messaging, which can be second nature among younger workers. If 50-year-old managers are not comfortable communicating with direct reports who are in their 20s using the latest technologies, they may believe flexible arrangements are not working.
5. Measure success.
According to the Hewitt study, 71 percent of the employers surveyed did not measure the effectiveness of flexible work programs, and only 14 percent measured results formally. It's important to keep asking which flexible practices contribute to retention and satisfaction and which do not. Further, where a substantial investment in technology has been made, continued measurement of the ROI and benefits of flexible arrangements will ensure these programs can be improved over time.
Giving people the flexibility to work when and where they want is a compelling value proposition. The next step in the evolution of flexible work is for e-work and other alternative work arrangements to replace corporate cubicles that are really just a step above the workhouses of the industrial revolution. Leading companies already are taking advantage of the vast benefits of flexible arrangements as modern society and the rise of the knowledge worker demand that talent managers change how people work and how performance is measured and rewarded.
2 comments on "Managing Performance in the Knowledge and Innovation"
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Commented by
varsha mishra, Analytical Chemistry Manager, rfrac
| 10 28 2008 18:50:26 +0000
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Bhuneshwar Ram Tripathi, Head/VP/GM-Production/Manufacturing, Bhatia International Ltd.
| 10 28 2008 15:41:11 +0000
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