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Industrial Relations & Innovative Employees: From empirics to a roadmap for social dialogue . Guy Van Gyes Stan De Spiegelaere HIVA-KU Leuven. THE EMPIRICAL WORK: VIGOR - Project. Intra- & inter-university cooperation KULeuven : CESO Geert Van Hootegem HIVA Guy Van Gyes UGent

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industrial relations innovative employees from empirics to a roadmap for social dialogue

Industrial Relations & Innovative Employees: From empirics to a roadmap for social dialogue

Guy Van Gyes

Stan De Spiegelaere

HIVA-KU Leuven

the empirical work vigor project
THE EMPIRICAL WORK: VIGOR - Project
  • Intra- & inter-universitycooperation
    • KULeuven:
      • CESO Geert Van Hootegem
      • HIVA Guy Van Gyes
    • UGent
      • Psychology Frederik Anseel
      • Sociologie Ronan Van Rossem
  • 5 doctoralstudents + 3 affiliatedresearchers
  • IWT
  • 2009 -2013
  • www.vigorinnovation.com
vigor project
VIGOR – Project
  • Feedback & InnovativeWorkBehaviourUgent – Psychologie
  • Ambidexterity: realigningexploration en exploitationUgent – Psychologie
  • Innovatie and networks in research teams Ugent – Sociologie
  • Innovation in SME’sUgent – Sociologie
  • Architecture of the work environment & creativeness KULeuven - Sociologie
  • LabourRegulation, worksystems & innovativeworkbehaviourKULeuven – HIVA

Labourregulation, worksystems & innovativeworkbehaviour

How are labourconditionsrelated to employee innovativeness?

~ Outcomes of industrial relations

policy context
Policy Context

Europa 2020:

Competitivity

Literature research

Employee-level survey (+/- 1000) in 5 industries

Innovation

LabourMarketFlexibility:

Contractual, financial & temporal

Vigor

HIVA

Workingsmarter & better

Workingcheaper

two ideal types of innovation
STI-innovation

Science, technology, innovation

Science and technology push (fundamental research)

Explicit, codified knowledge

What and why

Experiment

Separated process (R&D)

DUI-innovation

Doing understanding, interacting

Demand-pull, practical need

Implicit, informal knowledge

How and who

Experience

Integrated business process

Two ideal types of innovation

Source: Jensen et al.

job insecurity innovative work behaviour
Job Insecurity & InnovativeWorkBehaviour

InnovativeWorkBehaviour– Job insecurity

  • Reduces the work engagement
  • Reduces the innovativeworkbehaviour
  • Negativecorrelationwithautonomy

Autonomy

InnovativeWorkBehaviour

Engagement

Job Insecurity

financial rewards iwb
Financial Rewards & IWB

Individual Performance RelatedPay (PRP)

  • PRP => extrinsicmotivation
  • Job => intrinsicmotivation
  • IWB: intrinsic > extrinsic
financial rewards iwb1
Financial Rewards & IWB

CollectiveRewards & IWB

  • Free-rider
  • Actualinfluence
conclusion
Conclusion
  • Labourconditions, industrial relations are important forenabling employees to innovate.
  • Yet, labourorganisation (job design, group design) is more important
  • Plus, theyshouldn’tbeanalysed in isolation!
linking empirics to state of the art
Linkingempirics to state-of-the art
  • Synthesis
    • Innovationstudy DG Enterprise of EC: www.cordis.lu
    • Literaturereviewfor the Flemish Minister of Work
  • No empirical research, borrowingfromothers
  • De Spiegelaere, S., Van Gyes, G.(2012). Employee DrivenInnovation and Industrial Relations. In: Høyrup S., Bonnafous-Boucher M., Hasse C., Lotz M., Møller K. (Eds.), Employee-DrivenInnovation: A New Approach, Chapt. 12. Hampshire (UK):PalgraveMacmillan,230-245
roadmap of strategic renewal
Roadmap of strategicrenewal
  • Institutions matter
  • Role of workplace employee representation
  • Conceptualdifference
  • Institutionalchange
  • Actortransformation
1 institutions matters double speak from eu oecd
1. Institutions matters ? Double speak from EU/OECD

Of course, you’ll have the usual credo

To innovate: We need money (= low taxes and costs)

and flexibility (=less rules)

But there is another story (told by economists, picked up by OECD, EC DG Enterprise)

To innovate: We need a system of supporting institutions and rules, because of

MARKET FAILURES

2 key role of direct participation
2. Key role of direct participation
  • PEOPLE THINK HARDER: Employee participation creates greater commitment to the business goals.
  • MORE PEOPLE THINK: greater resources are directed towards the improvement of products and processes.
  • MORE THINK BETTER extended flow of information creates a greater potential for creativity.
  • THE ‘TOP’ CHANGES BETTER: provides top management with more information, thereby decreasing the amount of sub-optimal decision making.
  • THE ‘BOTTOM’ FOLLOWS EASIER: creates a culture where workers are more likely to support decisions.
3 complementarities direct indirect
3. Complementarities direct/indirect

Research shows

  • Direct participation: you’llfindit more in unionised settings
  • Direct participation: itworksbetter in unionised settings
  • Direct participation: in non-unionised settings with direct participation, workersseeit as a valuablealternativeforunionrepresentation

A strong track needs strong sleepers

employee representation
Employee representation
  • Roles to play: ‘Voice’ of involved workers
    • Conflict arbitrator
    • Bargaining expert
    • Neutral change agent
    • Feedback mechanism for management
  • Conditions
    • No ‘hold up’ on gains from both sides
    • Employment security, no downsizing fear
    • Open, trustworthy management attitude
    • Necessary competences & information on ‘business’
    • High interactivity with rank and file (otherwise alienation)
4 conceptual difference focus on working smarter not harder
4. Conceptualdifference: focus on ‘workingsmarter’ not ‘harder’

LESS

MORE

Workorganisation

Labourconditions

Trade

Union

Trade

Union

Employer

Employer

Bargaining

Dialogue

Change management in a business strategygeared to innovation

5 on the move to new productivity coalitions
5. On the move to newproductivitycoalitions?
  • Fordistcompromise: more withless
    • National sector bargaining as core instrument to distributeproductivitygains => maintainingaggregatenationaldemand
    • Workplaceinformation and consultationrights: role in labour controle; safe and withinstandards; knowledge to use in higher-levelbargaining => workrules; wagescales; job classifications; health/safetymonitoring
5 on the move to new productivity coalitions1
5. On the move to newproductivitycoalitions
  • Post-fordistcompromise: betternotcheaper
    • Productivitygainsbasedon ‘added-value’
    • Transnationalbargaining to set ‘incomefloor’ to maintainaggregatedemand
    • Lower-levelbargaining/ variablepay/rewards
    • Workplacerepresentation:
      • Knowledge activism (Hall et al., 2006): autonomous collection and strategic application of legal, technical, and medical knowledge as political tools
      • Job classifying => Job design
      • Work according to rules => Learning organisation
      • Safety – Accidents – Environment => Psychosocial – Stress -
in the end
In the end
  • Stillaboutgovernance of employmentrelationship

ECONOMIC EXCHANGE

POWER RELATIONSHIP