Towards a New Employment Relationship: Merging Organisation and Individual Needs and Interests

by

Tim Baker

WINNERS-AT-WORK

presented to the Second International Conference on researching Work and Learning at the University of Calgary, Canada (26th to 28th of July)


Abstract

This paper presents a model of a new employment relationship covering eight core attributes. A new employment relationship based on new mind-sets about the management/labour relationship is the foundation for achieving sustained productivity in the current climate of increased competition and accelerated change. The model offers practitioners strategies for merging the often conflicting needs and interests of workers and organisations.

Introduction

It is argued in this paper that a new employment relationship is the foundation for organisations to attract good staff and keep existing employees interested, committed, and productive in a climate of accelerated change, uncertainty, and global competition. Furthermore, it seems increasingly likely that until this “new codependency” (Noer, 1997), based on new mind-sets about the management/labour relationship, evolves, the abundance of human resource techniques in the popular management literature will continue to be superficial and unsustainable attempts at addressing the perennial challenges of how to treat people at work in order to motivate them in pursuit of higher performance. Developing new ways of treating the management/labour relationship presents a big challenge for practitioners How can new paradigms about the employment relationship evolve after 200 years of “them and us” thinking about management and workers borne out of the industrial revolution? On the other hand, the futility of popular human resource strategies will become more evident in an increasingly competitive environment where all the old employment conventions are being challenged.

This paper aims to define some of the key attributes of a new employment relationship. The outcome is to develop a model for the purposes of measuring and monitoring the extent to which modern organisations have evolved from the old employment paradigm to embrace the merging of workers’ and organisations’ needs and interests.

Much of the management literature enthusiastically advocates the pursuit of a new employment relationship (e.g. Adamson,1997; Albrow,1997; Baker, 2000; Bridges, 1994; Drucker, 1992; Eldridge, Cressey, and MacInnes,1991; Gee, Handy, 1989; Hull, Lankshear,1996; Grint,1997; Noer,1997) without providing practitioners with the necessary tools to change the mind-sets of employers and employees. On the other hand, the implementation of the proliferation of modern human resource techniques and strategies designed to increase organisational output bypass the core issue of challenging the traditional worker-manager relationship. What is needed are practical change management approaches and techniques that are grounded in the conceptualisation of the new employment relationship.

Rationale for a New Employment Relationship

After some 200 years of industrial organisation, solutions to the problem of motivating employees to give of their best have proved to be surprisingly elusive and are still being relentlessly pursued by an army of organisational analysts and behavioural scientists. There is no shortage of advice in the popular management literature on techniques and strategies to get workers to give of their best. Morgan (1993) points out that we can not hope to create new organisational forms with traditional thinking. “We have to get beyond tinkering with existing organizational structures. We have to imaginize and explore creative possibilities that can add new chapters to the history of how we organize and manage” (p.10). Heightened competition fueled by the move to a global economy has bought into sharper focus the need to abandon traditional thinking about the employment relationship.

For the past 25 years in particular we have witnessed unprecedented changes in the way organisations conduct business. Companies have embraced new concepts, undertaken new initiatives for improvement, and in so doing have changed the way work is performed. As Neusch and Siebenaler (1998) put it, organisations in recent times have:

… done TQM and JIT. They’ve been Kaizened and QFDed, activity-base costed, reengineered, flattened and right-sized, moved from low gear to third gear in speed-to-market, and have focused mightily on customer satisfaction. They have asked employees to work in teams and to become involved, empowered, committed, and productive (p.xv).

As other writers acknowledge, these initiatives are a response to the demands on organisations to become more maneuverable in the marketplace (Kanter, 1983; Peters, 1992; Peters & Waterman, 1982). However the results have generally failed to gain sustainable commitment from employees. In other words, while most companies pay employees for a whole day’s work, they still fail to get the whole employee (Neusch and Siebenaler, 1998:xv).

The strategic potential to achieve competitive advantage for companies is shifting away from the traditional factors such as production and process technology, economies of scale, financial resources or protected and regulated markets. The emphasis seems increasingly likely to be in the direction of adequate deployment and management of workers. Organisational leaders are compelled to view their employees increasingly as an investment needing careful attention, rather than a cost factor that needs to be reduced. The individual in this context is being seen as an “entrepreneur within the enterprise” (Wigand, Picot, and Reichwald, 1997) and consequently finds themselves as central to business success. Increasingly, qualifications, capacities, experiences and the creative potential of the worker are primary success factors in the current, competitive times.

Despite the need for a change in strategic emphasis, organisations are generally not viewed by workers as a cooperative enterprises where sharing of the cake is negotiated on any principled basis. Worker/management-owner conflict has been the dominant historical model, and not surprisingly this dichotomy has lead to a self-fulfilling prophecy: owner/management beliefs about workers needing tight control mechanisms and specific roles has encouraged workers to adopt a narrow and detached view of their organisational role. The challenge in redesigning organisational roles is one of instilling a set of attitudes recognising, emphasising and reinforcing the importance of interdependence of the whole work force of a company and the significance of each individual for the whole.

For this to occur, there is a need for a new way of viewing work. On the surface, at least, the contemporary workplace signals losses for the organisation and the employee. On the one hand, employees have lost job security and the sense of long-term organisational identity. On the other hand, organisations have lost the predictability of managing a dependent and internally orientated work force (Noer, 1997). What alternatives are available to traditional ways of dividing up work? According to Noer (1997),

[o]rganizations that will thrive in the new reality are those that will be filled with employees who have the option to leave, but choose to stay because of the work. Those that fail will be populated by employees who are only there because they are afraid to go elsewhere (p.218).

For this to occur new paradigms about the worker/organisation interface are necessary.

There are enormous advantages, and arguably little choice, in breaking the bonds of the traditional manager/worker relationship for the individual and the organisation. With a new perspective about work and their role in the organisation, the worker can choose to invest themselves in potentially more satisfying, meaningful work, engage in continuous learning, and reclaim their self-esteem, if lost under the old system. The organisation payoff is equally positive: a work force filled with free independent employees working on tasks they find fulfilling - resulting in long-term competitive advantage in the global market place (Noer, 1997). Grint (1997) refers to this new association as “corporate citizenship.” Workers have a responsibility to the organisation to be involved, committed, and supportive. In return, workers have rights the organisation should honour. Obligation, consent, and participation are elements of organisational citizenship (Fairholm, 1997). Values become the adhesive of citizenship in the organisational setting. This new approach to the employment relationship is still based on cooperation, or new codependency as Noer (1997) refers to it, but without the restrictions of the old industrial model of them and us.

Comparing and Contrasting the Traditional and New Employment Relationships

An attempt should be made to conceptualise the traditional relationship and its apparent shortcomings before contrasting some of the corresponding core characteristics of a new working relationship. In broad terms, the traditional employment relationship consists of the manager specifying the work requirements and in return for a willingness to comply the worker receives a wage. This has been the conventional lynch pin of the relationship between manager and worker. Any failure to heed a work instruction, on the one hand, or to pay the agreed wage, on the other, means that the contract collapses. Table I illustrates the old employment paradigm and juxtaposes it against similar attributes of the new employment relationship model.

Table I The Traditional Employment Relationship Model

Worker

Aspects of the Relationship

Organisation

Work in one organisation and specialise.

Specialised Employment

Encourage workers to specialise and remain in one organisational unit

Serve the manager before the customer.

Internal-focus

Rigid policies and procedures

Focus on where you work.

Performance

Link rewards and benefits for organisational dependency.

Accept and embrace yourself as a permanent employee.

Functional-based Work

Focus on organisational functions.

Find and accept any work.

Attitude to Work

Provide work.

Loyalty to organisational processes and procedures.

Loyalty

Loyalty to employees dependency.

Learn the requirements of the job.

Learning and Development

Provide training to do the job.

Follow the directions of the manager.

Closed Information

Providing employees with limited information to perform their task.

SOURCE: Adapted from Noer, D.M. (1997). Breaking Free: a Prescription for Personal and Organizational Change. San Francisco, Jossey-Bass, pp. 214-17.

In contrast, the new employment relationship model attempts to combine the workers’ needs with organisational outcomes. It emphasises cooperation that incorporates the often conflicting needs, interests and feelings of both the worker and the organisation. Noer (1997) refers to this as the “yin and yan freedom dance.” “In a yin-yan relationship, both halves are incomplete and need each other to achieve the unified whole” (p.214). Noer specifies five aspects of what he describes as the new codependency: flexible employment, customer-focus, focus on performance, project-based work, and the connection of human spirit and work. These attributes serve as a useful starting point for conceptualising a new employment relationship model. In contrast and comparing similar aspects of the employment relationship and building on Noer’s (1997) work, the writer has included three additional attributes: loyalty, learning and development, and open information. These additional aspects of the relationship serve to develop a more comprehensive understanding of the issues associated with creating a new mind-set in the workplace. Table II illustrates the new employment relationship model.

Table II The New Employment Relationship Model

Worker

Aspects of the Relationship

Organisation

Work in more than one organisational settings.

Flexible Employment

Encourage workers to work in other organisations or organisational units within the same company.

Serve the customer not your manager.

Customer-focus

Information and incentives for external focus.

Focus on what you do, not where you work.

Focus on Performance

Link rewards and benefits with performance rather than organisational dependency.

Accept and embrace yourself as a temporary employee.

Project-based Work

Focus on projects rather than organisational functions.

Find work that is meaningful.

Human Spirit and Work

Provide work (wherever possible) that is meaningful.

Loyalty to enhancing organisational outcome rather than processes.

Loyalty

Loyalty to enhancing employees personal objectives.

Learning and growing on the job.

Learning and Development

A partnership for employee development.

Contributing to decision-making processes.

Open Information

Providing employees with access to information about company goals, needs, and HR systems.

Each of the eight attributes is briefly discussed below. The model provides practitioners with a conceptual framework for assessing their organisation’s evolution from tradition to new mind-sets. It should be pointed out that many organisations are in flux between the old and new model, and that although this is a generalised treatment of core issues, there may be other attributes that need to be considered and incorporated in the model.

Core Attributes of the New Employment Relationship

Flexible Employment Casey, Keep, and Mayhew (1999) offer a fourfold definition of employment flexibility. They define flexible employment as either functional, financial, temporal or numerical. Functional flexibility has the capacity to serve the interests of both the worker and organisation. Functional flexibility refers in the ability to transfer labour between tasks and break down job demarcations (Cook, 1998). Various forms of flexible employment offer managers a range of options in structuring and deploying the workforce. Management techniques may including retraining, multi-skilling, motivation and incentive schemes (Greene, 2000) as a ways of achieving competitive advantage in the form of product quality and range, or the reliability of service. An organisation’s commitment to functional flexible employment can be measured by the degree to which there is evidence of the commitment and application of these four management initiatives. The desirability of embracing flexible work practices however needs to be balanced with several potential limitations.

From the perspective of workers, there are both positive and negative forms of flexibility, which relate to questions of who defines it, in whose interests it operates, and what skills and negotiating power workers’ possess to negotiate terms and conditions (Cook, 1998). Although organisations are confronted with a potentially wide range of alternatives, in reality their real choices will tend to be constrained by a range of pressures, government policy, social norms and pressures, competition, training structures and work organisation (Casey et al, 1999). The implementation of any given form of flexibility within a particular organisation or work setting is dependent upon a these and perhaps other variables.

“Enterprise flexibility” (Casey et al, 1999), however, does not necessarily have to mean the same thing as deregulation or casualisation. Apart from external factors, how flexibility plays out in any given situation will be heavily contingent upon particular managerial policies and approaches to its use. Flexible forms of employment do not have to be used primarily as a cost-cutting device, despite research suggesting that in many organisations flexibility is synonymous with deregulation and the opportunity to cut labour costs (NACAB, 1997).

On the other hand, the implementation of flexible employment strategies can create opportunities for workers to gain a broad range of inter- and intra-departmental skills beyond the narrow confines of their initial job description. Moreover, the new information economy places a premium on the worker’s ability to move from a job in one organisation to another, to learn new jobs in the same company, to do several different types of tasks in the same day and to adjust quickly to several different kinds of employment cultures and different group situations. Organisations can, at the same time, become more maneuverable. In short, functionally flexible workers enhance their employability in the marketplace and organisations remain pliable to meet the demands of a rapidly changing marketplace.

Customer-focus One of several challenges managers face in implementing customer-focused strategies in organisations is overcoming role conflict for customer workers. Theoretically, role conflict, a likely consequence of all forms of customer work, occurs for an actor when the actor perceives that the set of demands from two or more constituencies to which an actor is held accountable (a) are incompatible or inconsistent with one another in such a way as both sets cannot be met and (b) are simultaneously pressed on the actor (Heiss, 1990; Katz & Khan, 1966; Merton, 1968). Troyer, Mueller, and Osinsky (2000) content that customer workers are open to experiencing role conflict because they are often confronted with competing demands from the two constituencies (i.e., the organisation and the customers) due of their unique “boundary spanning role” (Adams, 1976).

Customer work under the traditional employment relationship places employees in the unique position of answering to two bosses, the organisation and the customer. Although not formally designated as a superior, the customer nonetheless represents an additional set of interests and demands to which the customer worker must respond. Figure I illustrates the unique position the boundary spanning role of the customer worker and the potential for conflict between the needs and expectations of the customer on the one hand and the organisation’s policies and procedures on the other.

Figure I Boundary Spanning Role of the Customer Worker

Reducting role conflict for customer workers in either representative (customer service) and influencing (sales) roles (Adams, 1976) requires different approaches. Autonomy may be crucial to representative roles, because impression management is important to these roles, and autonomy affords the role incumbent the opportunity to role make. On the other hand, resource adequacy and role clarity may be crucial for individuals in positions that involve an influence role. Organisational leaders working under the new paradigm are likely to promote and encourage these strategies as a means of reducing role conflict; a symptom of the traditional employment relationship.

By serving and fulfilling customer’s needs, given appropriate strategies and incentives, skills and growth opportunities by organisational leaders, workers are helping themselves and their organisation. Alternately, pleasing the boss and playing organisational politics in the interests of their organisational career is an unhealthy artifact of the old reality. As Noer (1997) advises: “Being clear about who your customer is and spending your time providing value-added service is a much less energy draining and more personally affirming use of (employee’s) time than wallowing in the internal ambiguity of a dying bureaucracy” (p. 215). From the organisation’s perspective, it is better served by insisting on workers identifying and measuring there own value-added contribution to servicing the needs of their customers. Managers need therefore to provide the necessary means by which their workers can focus and assess their contribution to satisfying the customer’s needs. The more time and effort spent focusing internally by the manager or the worker, will detract from a customer focus.

Focus on Performance Although multidimensional models of performance that include job and non-job dimensions have been introduced, they lack a unifying theoretical framework (Borman & Motowidlo, 1997; Campbell, 1990; Motowidlo & Van Scotter, 1994). Without a theoretical underpinning there is little guidance for choosing which dimensions of performance (job or non-job) to include or exclude from a performance management system. Accordingly, researchers and organisational leaders tend to use customised performance measures, a practice that results in using measures that do not typically allow for comparison among jobs or across companies. Researchers have noted that this lack of generalisability of the performance criterion hinders the validity of many predictors of performance (Austin & Villanova, 1992).

Welbourne, Johnson, and Erez (1998) are the first to consider the theoretical implications for performance measurement and its link with identity theory. Role theory provides an explanation for why work performance should be multidimensional, and identity theory suggests how to determine which dimensions to include in a model of work performance. The amalgamation of both theories by Welbourne et al (1998) broadens the scope of performance to incorporate four additional roles other than the jobholder.

Apart from job role, Welbourne’s et al (1998) research identifies organisation, team, career, and innovator roles as viable indicators of performance. They employ two criteria to identify this multidimensional definition of performance in an organisational setting. First, they reviewed several compensation systems in different organisations and the roles they were designed to elicit. Second, they chose roles that had been emphasised in the literature as important for organisational success. In sum, they suggest that employees enact multiple roles beyond that of jobholder (role theory) and, employing identity theory, they suggest that those roles that are considered important from an organisational perspective should be measured through a comprehensive assessment of employee performance.

Employees can and do enact many potential useful roles while at work. Welbourne et al (1998) suggest that there may, and probably are, other relevant roles that should be considered in performance. However, they provide a useful and credible starting point in viewing performance as a multidimensional concept. Moreover, these roles are distinct from each other and identify components of performance that cannot necessarily be measured via a firm’s traditional approach to performance appraisal systems.

The idea that roles are important for understanding employee behaviours is not a new concept. Although applying role and identity theories to performance measures offers one original approach to expanding prior research on performance measurement. In putting these fairly well-established pieces of theory together, Welbourne’s et al (1998) model provides an innovative contribution to solving an important piece of the performance measurement puzzle. More research is needed using their unique approach as a way of linking individual contribution to organisational output.

In adopting a valid multidimensional performance system, workers are likely to make contributions beyond their traditional job skill base. Organisations, on the other hand, can utilise and reward workers for a variety of non-job contributions that contribute to broaden the notion of productive work practices in an organisation setting.

Project-based Work In a climate of rapid change and increasing uncertainty, an emphasis on project-based work as distinct from functional servitude is arguably in the best interests of workers and their organisation. One of the ways in which organisations are able to increase both internal system efficiency and responsiveness to the external environment is through the processing of information horizontally via ad hoc and ongoing project teams rather (Devine, Clayton, Philips, Dunford, and Melner, 1999) than vertical functional silos. Workers, with an increasing need to embrace themselves as temporary employees, are able to gain cross-functional experience, knowledge and skills from project-based teams that may be applied in other employment settings or as preparedness for self-employment opportunities. The important question is, if cross-functional teams are, amongst other things, suppose to promote optimal allocation of capital, human resources, information and knowledge through the establishment of company-internal linkages, how are these linkages created and functional identities overcome?

According to research in the social identity area, the adverse effect of these functional identities can be overcome in a team of individuals from diverse functional areas by creating a new team-based character or “superordinate identity” (Ashforth and Mael, 1989; Mackie and Goethals, 1987; Tajfel, 1982). In the context of cross-functional teams, superordinate identity refers to the extent to which members identify with the team (rather than merely with their functional areas) and perceive a stake in the success of the team. The superordinate identity construct captures the cognitive aspects of a member’s relationship with the team and is different from social cohesion, which represents the affective component of the team-member relationship (Ashforth and Mael,1989).

Previous research in organisational behaviour has focused primarily on boundaries at the organisational level. According to Cross, Yan, and Louis (2000), “boundary activities are those in which the focal organizational entity engages to create and maintain its boundaries and to manage interactions across those boundaries” (p. 842). In contrast, studies on work units up until recently have generally ignored researching evidence of intra-organisational boundaries. As the first to conceptualise boundary activities at the work unit level, Yan and Louis’s (1999) empirical research investigated the presence of several types of boundary activities in a large organisation undergoing transformation from a functionally dominant organisation to a cross-functional structure. From their research findings, Yan and Louis (1999) conclude that boundary activities migrate downward from the organisational level to the work unit level as core work processes are redesigned, work force diversity increases, team-based structures are adopted, or sophisticated information technologies are employed.

A central tenet of Yan and Louis’s (1999) argument, is that organisational transformation, such as restructuring and process design, occasions changes in the locus of need and responsibility for boundary management. They maintain that the need for boundary activities will not be eliminated as a result of organisational changes such as the implementing cross-functional project teams. Boundary activities may be transferred to other organisational levels. Previously, organisational functions, with clearly defined roles, helped sort and divert extraneous demands, and managers served as ultimate arbiters of priorities. Where functional hierarchies give way to cross-functional teams and managerial ranks are reduced, these bureaucracy-based buffers are removed; the new work unit is left to improvise means of buffering environmental forces.

Yan and Louis’s (1999) research findings substantiate Hirschhorn and Gilmore’s (1992) earlier precaution that “[m]anagers are right to break down the boundaries that make organizations rigid and unresponsive. But they are wrong if they think that doing so eliminates the need for boundaries altogether” (pp.104-105). It seems that many new boundary-related activities emerge during system transformations and warrant management attention.

Human Spirit and Work

The spirituality at work movement is getting the attention of corporate America and possibly elsewhere partly because of the recognition that nourishing the soul at work may be good for business (Ashmos and Duchon, 2000). This growing interest in spirituality at work can be understood in relation to several trends in western society that impact on the individual and the organisation (Beyer, 1999; Brandt, 1996; Conger, 1994 Hamel and Prahalad, 1994). In sum, the pressure of global competition has lead some organisational leaders to recognise that a potential competitive advantage maybe gained by unleashing workers’ full expression of their creative energies. And from the worker’s perspective, organisational work increasingly defines their self-concept and connection to others (Bertram and Sharpe, 2000).

In practice, the worker and the organisation have a joint responsibility for bringing to the workplace the notion of meaningful work. Isaksen (2000) making a distinction between different levels of the meaningfulness of work. In broad terms workers bring to an organisation a general meaning about their vocation and through their interaction with a work environment develop a personal meaning about their day-to-day work.

Workers have a responsibility to find a vocation that is stimulating. Noer (1997) reminds us, “[t]here is power, excitement, and amazing productivity when our work is congruent with our personal mission and values” (p.217). Organisations also have an obligation to provide workers with the opportunities to participate in meaningful, stimulating tasks and projects where ever possible. “If organizations can provide the spark that ignites (employees’) reservoir of human spirit and allow (them) to apply it to work that (they) perceive as meaningful, (the organisation has) unleashed a powerful competitive weapon of creative energy” (Noer, 1997, p.217). By overcoming some of the inhibitors to meaningful work in the workplace, managers can contribute to the potential of creating an environment in which flexibility, optimism, and creativity are more likely to be expressed by their employees in their roles.

There are several specific factors that have the potential to inhibit a meaningful work mind-set in the workplace. Lack of meaning can be restrained as a result of either (a) poor working conditions, (b) a poor fit between worker interests and job opportunities, or (c) a lack of belief in one’s own attempts to construct meaning (Isaksen, 2000). It may be possible therefore to strategically intervene on all three levels as a basis for enhancing the prospects that workers could be more likely to construct meaning, or at least, not to be deterred from finding meaning in their daily work.

Loyalty and Committment

If loyalty is still an important and sought after organisational value, can it be sustained in the new reality or is it doomed to the scrap heap of the traditional employment relationship? Much of the contemporary disenchantment about the prospects of generating employee loyalty and organisational commitment results from the confusion about the concept itself (Powers, 2000). Employee loyalty does not seem to have a universal definition. Perhaps it should be recognised that employee loyalty is a fluid concept founded on the general premise that it is whatever the employee and employer agree it is (Powers, 2000). The challenge is to understand the term in the context of what both parties (employers and employees) now perceive to be a fair exchange in the 21st century.

It is argued that companies can use career management strategies as a way of developing a different, more pragmatic, less paternalistic kind of organisational loyalty from workers and in the process sustain employees’ commitment to achieving organisationally desirable outcomes. In some studies, a positive relationship between organisational commitment and career commitment is evident (Baugh and Roberts, 1994). Recently, Carson, Carson, Roe, Birkenmeier, and Phillips (1999) found that employees who are committed to both their organisations and to their careers had the highest level of “job satisfaction” and “empowerment”. By fulfilling some of workers’ concerns about future employability and flexible work patterns with support and appropriate resources, organisations may be able to retain the services of valued workers for longer than might otherwise be the case. Specifically, comprehensive policies of managing work/home conflicts, opportunities for skill development replacing the generally limited scope for organisational advancement, increasing career paths and training for part-time workers, and substituting the notion of organisational loyalty with loyalty to their work team are some of the strategies organisations can offer that may partially fulfill the needs of the modern worker.

The idea of organisations entering into a career development partnership with their employees by assisting them to become more employable goes against the grain of traditional HR management, which is based on the assumption that employees are captive and propriety assets. But it is in tune with the current reality of a market-driven work force. Loyalty and commitment have traditionally been seen by managers as two sides of the same coin, believing that employees who lack loyalty to a company must also lack commitment to their work (Cappelli, 2000). But there are many ways to engender commitment to the work without requiring loyalty to the company. Moreover, the confusion of loyalty and commitment underlies another widely held but false belief: that commitment can exist only in a long-term relationship. Commitment can be, and often is, practiced on a short-term basis is many arenas other than the workplace i.e., completion of a course of study. There is no reason to believe that this can not be the case in employer-employee relationships. Indeed, short-term relationships can often create higher levels of commitment than long-term relationships. The challenge for organisations and workers is to enter into a new exchange process that reflects the realities of the times.

Learning and Development

Should learning and development activities in organisations focus on developing the individual or be concerned with achieving organisational outcomes? Human resource development (HRD) literature predominantly advocates an either or approach. In other words, theorists and practitioners embrace and argue passionately for HRD to adopt a performance perspective (organisation) (Kuchinke, 1999; Maitland, 1994; Rummler and Brache, 1990; Stryker and Statham, 1985) or learning perspective (individual) (Aktouf, 1992; Barrie and Pace, 1999; Berger and Luckman, 1966; Elliott, 2000; Fisher and Torbert, 1995; Nadler, 1984). What is needed is an integration of both viewpoints. In an organisational context, even embracing both philosophical views of HRD does not go far enough to keep pace with a rapidly changing marketplace. Another paradigm on HRD that focuses on problem solving (situation) (Anderson, 1995; Argyris, 1964; Bandura, 1997; Kincheloe, 1995; Kohlberg and Mayer, 1972; Lawler, 1992; Lawler, Mohrman, and Ledford, 1995; Walton, 1985; Watkins and Marsick, 1993), with its situational emphasis, is gaining prominence in the literature. But like the learning and performance perspectives of HRD, the problem solving approach has its shortcomings. The focus of the debate should shift from which paradigm is more representative of HRD to what does each approach have to offer workers and organisations. It is argued that HRD should embrace a holistic approach that emphasises the three dimensions of the individual, organisation, and situation. This eclectic framework will enhance and sustain the legitimacy of HRD by providing the platform for learning and development initiatives to meet the individual growth needs of workers and at the same time fulfill organisational output requirements. Table III summarises the three dominant HR theories.

Table III Classification of Theories of Human Resource Development

Person-Centred

Production-Centred

Principled Problem Solving

Philosophical Roots

Humanistic: (Maslow, Rogers)

Romantic Idealism: (Rousseau)

Existentialism

Behaviourism: (Skinner)

Libertarian: (Smith, Friedman)

Cognitive-develop- mental: (Kohlberg)

Pragmatism: (Dewey, James)

Radical Humanism: (Aktouf)

Postmodernism: (Kincheloe)

Aims of Human Development

To develop the self

Allow “inner good” to unfold

Remove barriers to maturation

Competently and efficiently fulfill organisational roles; Increase performance as defined by organisation

Integration and synthesis of internal and external demands; Dynamic balance of competing claims; Self-development through performance

Assumptions about Human Nature

Inborn wisdom and goodness

Health equals happiness

Needs and wants determined by society or culture

Health equals adjustment

Ability to integrate internal and external demands

Experience is paramount

Health equals

Assumptions about Nature of Organisations

Person oriented

Optimal organisational functioning achieved through happy people

Goal oriented

Goals determined by owners

Human capital employed to achieve goals

Stakeholder oriented

Temporary and dynamically changing configuration of needs and wants of various stakeholders

Examples

Hierarchy of Needs

Two-factor theory

Spirituality

Meaning of Work

Quality of Worklife

Industrial Training

Performance Technology

High involvement organisations

Learning organisation

SOURCE: Kuchinke, K.P. (1999). ‘Adult Development Towards What End? A Philosophical Analysis of the Concept as Reflected in the Research Theory, and Practice of Human Resource Development.’ Adult Education Quarterly, 49, 4, p.151

In practice, understanding the premise of each approach can lead HRD professionals to more informed choices. For instance, an HRD professional who is faced with lagging work performance might approach this issue from any one of the three proposed approaches. From the person-centred perspective, names of top performers could be posted on the luncheon bulletin board and monthly award ceremonies for these employees held to instill pride in the good performers. From the product-centred philosophy, piece rate or pay-for-performance systems may provide incentives to work harder. From the principled problem-solving perspective, an open-book management strategy could be proposed where employees are given full information about the implications of poor performance for the stakeholders and charter cross-functional teams to investigate the root causes of the problem and develop solutions. An HRD practitioner who can select from a number of different approaches will be likely to have a wide range of choices than one who is tied to only one perspective. Further, being aware and knowledgeable of the different HRD approaches will enlarge a firm’s range of options in developing a company-based set of guiding philosophies, values, strategies, and practices. In terms of HRD management, approximately one third of the HRD budget can be devoted to the self-development of workers, a third for specific training to carry out their organisational role with skill and competence, and a third to develop problem solving capabilities knowledge. The end result will reinforce the legitimacy of HRD and contribute significantly to the amalgamation of individual concerns and organisational objectives.

Open Information Worker participation has moved from the periphery to the centre of corporate philosophies and organisational restructurings. Participatory programmes take many forms and emphases. A crucial characteristic in the success of all these forms and processes is open communication between organisational leaders and employees. Open information channels are suppose to lead to the exercising of initiative by workers in the pursuit of organisational objectives. However, enhancing workers’ capacity to contribute to organisational decision-making processes, whilst appealing, is problematic for both workers and organisations. The “initiative paradox” (Campbell, 2000) can, on the other hand, be addressed.

Organisations have always had to wrestle with the question of whether and how to constrain employees’ independent judgment and initiative. For organisational leaders the new demands associated with the employee role contain a paradox. Because job descriptions are unlikely to anticipate all the possible work situations an individual might face, managers need employees who will exercise their own judgment when they encounter out-of-the-ordinary work situations. Consequently, they desire employees who show initiative and judgment. On the other hand, desiring predictable outcomes, managers also expect the employees’ diagnostics and actions to mirror their own. This is what Campbell (2000) refers to as the initiative paradox: employees are expected to use independent judgment and initiative, and simultaneously expected to think and act like their boss.

The initiative paradox raises two related questions. Can managers eliminate the unanticipated consequences associated with employees’ “enterprising qualities” (Campbell, 2000)? Are employees’ enterprising qualities truly universally desirable, or do particular job and organisational circumstances make them relatively more or less valuable to a manager or an organisation?

Since the real value of “proactive” employees hinges on a resolution of the initiative paradox, Campbell (2000) proposes four potential resolutions. Table IV below summaries these possibilities.

Table IV Potential Resolutions of the Initiative Paradox

Potential resolution

Limitation

Specific recommendation

Goal alignment

Requires substantial alignment between the goals and interests of the organisation and the goals and interests of the individual. This alignment of interests minimises the likelihood of undesirable, unexpected results.

Goal and interest alignment is often quite difficult to accomplish, given the complexities of organisational environments.

Identify the firm’s core values and communicate these values explicitly, through the firm’s selection, socialisation, and social-exchange processes.

Communication of boundaries

Involves the careful communication of the kinds of initiative desired, and the limits surrounding these. Initiative and judgment are encouraged only in circumscribed job or work situations. Containment minimises the likelihood of undesired, unexpected results.

Limits employees’ enterprising qualities to specific situations, and is unsuitable for those wishing to tap employees’ initiative more broadly; or for managers who cannot anticipate all the circumstances requiring employee judgment.

For misguided initiative- taking, explicitly communicate the firm’s core values; and treat these occasions as opportunities to clarify and refine individuals’ perceptions of the firm’s core values.

Emphasis on information sharing

Requires managerial information sharing and trust building, minimising unshared expectations by providing employees with the same information and frame of reference that the manager uses in running the work unit.

Requires a high level of trust between manager and employees, and such openness may make some managers feel vulnerable.

Treat breakdowns and disagreements as opportunities to clarify how particular initiatives can create problems or lead to unsatisfactory outcomes; be willing to support constructive dissent; to facilitate information exchange; and accept conditional loyalty as a potential requirement for real trust building.

Dynamic accountability

Involves a firm-wide understanding that employees can exercise initiative and judgment, but at their own risk and with potentially serious consequences if resulting actions are judged unacceptable.

Holds few benefits for employees, and probably limits displays of their enterprising qualities to only quite exceptional circumstances.

Identify the firm’s core values and communicate these values explicitly , through the firm’s selection, socialisation, and social-exchange processes.

SOURCE: Campbell, D. J. (2000). ‘The Proactive Employee: Managing Workplace Initiative,’ The Academy of Management Executive, 14, 3, p. 61.

Campbell’s (2000) model provides practitioners with a useful framework for addressing the paradox of employee participation. Despite the limitations, the model has useful guidelines for developing workers’ participatory practices utilising a variety of open information channels between workers and management.

Conclusion

This model of the new employment relationship is hopefully a catalyst for further discussion and a progression of thinking towards the conceptualisation of a new employment relationship. Ultimately the model presented in this paper is an attempt at providing a practical framework for applying a new worker-organisation paradigm in organisational settings. Clearly, the significant changes in work and the workplace being experienced today have generated a need to think differently about the employment relationship. This has put a strain on the tradition industrial relationship model of them and use that has largely encompassed some 200 years. The main influences for the need to develop new mind-sets has unquestionably been the intensification of competition and globalisation creating a climate of accelerated change and uncertainty. These factors have stimulated practitioners to review, perhaps on an ongoing basis, their organisational structures and employment arrangements. The successful resolution of some of the issues outlined in this paper will hopefully contribute to sustained productivity gains and be in the mutual interests of workers and organisations.

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