Changing organizational forms and the employment relationship

changing organizational forms and the employment relationship

Aug 1, Is this an ideal Employer – Employee relationship . organizational structures undergo dramatic changes. Patterns in strategy formation. the standard employment relationship, protected by trade unionism and collective . working hours, in the form of overtime opportunities. The role of . These changes to the activities of the organisation and the perceived changes in the. The employment relationship exists at different levels in the organization the agreement must be supported by consideration (ie some form of payment). evidence for a major change in the nature of the employment relationship was much.

Certain types of contingent work resemble the system of contract employment used in manufacturing during the late 19th century. Osnowitz,Freelancing Expertise: Philips,The transition from outwork to factory production in the boot and shoe industry,in Masters to Managers: Page 87 Share Cite Suggested Citation: One example may be to stimulate the formation of organizations or occupational associations, similar to the Freelancers Union, that provide contingent workers with avenues for acquiring portable health insurance and retirement savings programs.

Regulations could also be shaped to better enable contingent workers who have been traditionally categorized as independent contractors to access benefits and protections through their employer, ensuring protection of their rights under U.

The Changing Nature of Organizations, Work, and Workplace | WBDG - Whole Building Design Guide

There is already mounting political pressure to both use existing regulations and introduce new ones to prevent the rise of contingent work in certain areas such as the taxicab market. Much of this pressure might be motivated by narrow-interest politics e. There are limited data on the nature and extent of contingent work in the U.

A clear and longitudinally valid system for characterizing contingent jobs could help to clarify the economic and social effects of different forms of contingent work and how they are changing. It is worth noting that was the last year that the Bureau of Labor Statistics collected data on the contingent workforce, although plans for another survey are under way and an independent, standalone version of a similar survey was conducted through the RAND Corporation, as contracted by economists Alan Krueger and Larry Katz.

Dynamism and fluidity are inherently linked because much of the flow of workers across jobs stems from business expansion, contraction, entry, and exit.

Page 88 Share Cite Suggested Citation: All statistics are percentages of employment. Scope is employer firms firms with one or more paid employees in U. Historically, the United States has exhibited strong indicators of dynamism, such as a high pace of job and worker reallocation, job hopping, and geographic mobility. This dynamism has enabled the United States to reallocate resources from less productive to more productive businesses with less time and resource costs than other countries e. In the last several decades—and especially since —there has been a decline in several indicators of business dynamism and labor market fluidity.

As illustrated in Figure 4. This is linked to declines in related measures of labor market fluidity. The pace of job hopping, as measured by the fraction of workers switching directly from one job to another, often called Page 89 Share Cite Suggested Citation: Workers moving directly from job to job in the United States have largely reflected workers moving up the job ladder, defined in terms of firm wages or productivity.

Geographic mobility has also declined, although the U. New companies accounted for about 13 percent of all firms in the late s, but only 8 percent in Since the yearthere has been a similar decline in the number of high-growth start-ups and the amount of employment in these firms, as indicated in Figure 4.

There is no doubt, however, that the decline in dynamism and start-ups are connected to the decline in labor market fluidity. Young firms exhibit an especially high pace of job reallocation, with some firms rapidly expanding while others contract and exit. This implies a high pace of hires and separations at such firms. The implication is that a decline in start-ups translates into a decline in labor market fluidity.

Moreover, dynamism and flexibility have arguably facilitated the ability of the United States to adapt to past periods of rapid technological change.

changing organizational forms and the employment relationship

Davis and Haltiwanger provide evidence that the decline in labor market fluidity has had an adverse effect on labor force participation, especially among the young and less educated.

These are the most vulnerable groups that may be left behind by technology. Page 90 Share Cite Suggested Citation: Data shown as Hendrick-Prescott trends.

These findings seem inconsistent with an increase in contingent workers engaged in short-duration gig jobs. As noted above, there is currently not much evidence that gig economy jobs are quantitatively significant in the overall U. Changes in the Prevalence of Start-up Companies Underlying part of this decline is a decline in dynamism in the pace of start-ups and high-growth young firms.

Beforethis phenomenon was concentrated in certain sectors, such as retail trade, where there has been a shift in the business model toward large national chains see Figure 4. Tabulations from Longitudinal Business Database. FIRE, finance, insurance, and real estate. Miranda,Where has all the skewness gone? This highlights the fact that a high pace of start-ups and business dynamism is not an economic objective in and of itself. Instead, the optimal pace of start-ups and reallocation should balance productivity and economic growth benefits with the costs of this reallocation.

Blurring the Boundaries to the Employment Relationship: From Single to Multi-Employer Relationships

The latter can be high for certain firms and individuals who experience the most change. As argued above, in retail trade this change in the business model has arguably had some positive effects where the decline in startups and dynamism is associated with improved productivity in this sector.

Evidence suggests that this change has been facilitated by IT, which has enabled large multinational retail firms to develop efficient distribution networks and supply chains globally. Of potentially greater concern is the decline in high-tech start-ups and in Page 92 Share Cite Suggested Citation: Prior tohigh-growth firms in high tech those with an employment-weighted growth rate in the 90th percentile had annual net employment growth rates more than 30 percent higher than the median firms; these firms were predominantly young.

Sincehigh-growth firms declined, and the differential dropped to less than 20 percent. This is the same period in which there has been a decline in the growth of productivity in the high-tech sectors.

One interpretation is that changes in IT and automation have favored larger organizations. Network externalities imply common adoption of software and hardware platforms. Consistent with this, it may be that as the information and technology revolution has matured, the objective of start-ups developing new innovations has changed from internal high growth to being acquired by dominant firms in their industry.

These patterns do not imply that high-growth start-ups in high tech are no longer playing an important role. It is evident that there are rapid increases in start-ups in the sharing economy; however, the business model of such start-ups is to grow via partnerships rather than by increasing numbers of paid employees. It is also possible that high-tech companies with potential for high growth are increasingly basing their production activities worldwide and thus not increasing their domestic employment.

changing organizational forms and the employment relationship

Boundaries between departments as well as between job categories manager, professional, technical become looser and there is a greater need for task and knowledge sharing. Teams as basic building blocks—The move toward a team-based organizational structure results from pressures to make rapid decisions, to reduce inefficiencies, and to continually improve work processes.

New management perspective—Workers are no longer managed to comply with rules and orders, but rather to be committed to organizational goals and mission. The blurring of boundaries also affects organizational roles. As employees gain more decision authority and latitude, managers become more social supporters and coaches rather than commanders.

Continuous change—Organizations are expected to continue the cycles of reflection and reorganization. However, changes may be both large and small and are likely to be interspersed with periods of stability. Kling and Zmuidzinas identify three types of change—"metamorphosis" far reaching, fundamental change"migration" shifts toward a new formand "elaboration" changes that enhance some aspect of work.

How Work is Changing for Individuals and Groups Over the past two decades, a new pattern of work is emerging as the knowledge economy realizes the full potential of both new technologies and new organizational models.

The changes fall into the following domains: Cognitive competence The new "psychological contract" between employees and employers Changes in process and place Although these domains are discussed separately, they overlap.

We briefly discuss the overlaps, where they exist, and point to the benefits and concerns the new work patterns present for workers and managers. Cognitive Competence Cognitive workers are expected to be more functionally and cognitively fluid and able to work across many kinds of tasks and situations.

The broader span of work, brought about by changes in organizational structure, also creates new demands, including: Increased complexity of work—Workers need to know more, not only to do their jobs and tasks, but also to work effectively with others on teams.

Many knowledge-based tasks require sound analytical and judgment skills to carry out work that is more novel, extemporaneous, and context based, with few rules and structured ways of working. Although demand for high cognitive skills are especially prominent in professional, technical, and managerial jobs, even administrative tasks require more independent decision making and operational decision making.

Continuous competency development—Not only do workers need to keep their technology skills up to date, they need to be continuous learners in their knowledge fields and to also be more conversant with business strategy. Time to read and attend training classes is no longer a perquisite of only a few, it is essential for all workers.

Different ways of thinking—Rosabeth Kantor argues that cross-functional and cross boundary teams require "kaleidoscope thinking," the ability to see alternative angles and perspectives and to create new patterns of thinking that propel innovation. Workers also need to be able to synthesize disparate ideas in order to make the cognitive leaps that underlie innovation.

The Cost of Complexity Vastly increased access to information has made work both easier and more difficult. The ease comes from ability to rapidly locate and download information from diverse web sites. The difficulty comes with the need to consume and make sense of new information in a timely fashion.

Information overload, coupled with time pressures and increased work complexity, lead to what psychologists call "cognitive overload syndrome COS. Social and Interactive Competence In a report on the changing nature of work, the National Research Council called attention to the importance of relational and interactive aspects of work. As collaboration and collective activity become more prevalent, workers need well-developed social skills—what the report calls "emotional labor.

Team work and collaboration—Conflict resolution and negotiation skills are essential to collaborative work. Conflicts often occur about group goals, work methods, assignments, workloads, and recognition.

Team members with good conflict and negotiation skills are better equipped to deal openly with problems, to listen and understand different perspectives, and to resolve issues in mutually beneficial ways.

Relationship development and networking—Sharing important information, fulfilling promises, willingness to be influenced, and listening are building blocks of reciprocity and the development of trust.

When workers trust one another, they are more committed to attaining mutual goals, more likely to help one another through difficulties, and more willing to share and develop new ideas.

changing organizational forms and the employment relationship

Learning and growth—Many organizations strive to be learning centers—to create conditions in which employees learn not only through formal training but through relationships with coworkers. Learning relationships build on joint problem solving, insight sharing, learning from mistakes, and working closely together to aid transmission of tacit knowledge.

changing organizational forms and the employment relationship

Learning also develops from mentoring relationships between newcomers and those with experience and organizational know-how. The Costs of Collaborative Environments In a collaborative work setting, the fate of individuals is inextricably bound to collective success.

Dependence on others for one's own success is often uncomfortable. Collaboration and relationship development also take time and effort. Understanding coworkers' perspectives and "thought worlds" requires time spent listening, integrating, and synthesizing.

For those workers recognized as both knowledgeable and approachable, the demands of interaction may be especially high.