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Strategy Paper: Strategic Change Management
Journal for Labour Market Research volume 48 , pages — Cite this article. Metrics details. The paper examines recent evidence on the erosion of the German industrial relations model. This is explained by the nature of high performance work systems that involve flexible working and on-the-job problem-solving.
Both countries have modernised their work systems in recent decades, with German industrial firms maintaining higher degrees of worker autonomy and learning and British ones relying more on managerial control.
The survival of the German model in this sector, as compared with services, is attributed to the role of such work systems in the high end of international competition. A model is developed to explain why stable cooperation within these work relationships is enhanced by means of a strong institutional framework.
It is then used to explain why employers in the sectors using these systems have continued to work within these institutions. The article finishes by asking how far this can go before damaging social and political cohesion.
Der Artikel untersucht die aktuelle Beweislage zur Erosion des deutschen Modells der Arbeitsbeziehungen. Letztere ist weitreichend dokumentiert und stellt eine Abkehr vom klassischen Modell der Nachkriegszeit dar.
German industrial relations have passed through several major challenges in the last quarter of a century which have caused significant changes in the three pillars of the post-war model: coordinated bargaining, workplace codetermination and skill formation. Instead of being collectively forced to adopt the path of high productivity and high wages, it is claimed that many German employers can now sidestep them whenever they have suitable outside options, such those arising from deregulation of domestic labour markets, as with the Hartz reforms, or from the opening up of opportunities for off-shoring to cheaper locations, such as in Eastern Europe.
In this article, I argue that the German model has evolved in a way that reflects its distinctive economic strengths, compared with other similarly developed economies such as Britain. Ironically, these have often been engaged in international supply chains facilitated by opportunities in Eastern Europe.
Erosion has occurred primarily in activities where simpler models of management control are both effective and cheaper to operate. Since , pressures on employers to re-evaluate their commitment to the classical German model have greatly increased. The progressive completion of the Single European Market, coupled with reduced barriers to international trade globally, have forced changes in industrial relations and human resource practices across the EU.
Baumann ; Sydow and Staber Associated with these pressures, there has been a growing internal diversity and increased segmentation within the German post-war model, accelerated by the Hartz labour market reforms eg. This facilitated further development of local concessions on the terms of industry agreements in order to defend jobs. Footnote 3 According to Streeck , p. Although presented at the time as a practical measure to save jobs, the agreement has been widely regarded as a major defeat for the union, opening the way for greater segmentation as weaker firms would be the ones to take advantage of its provisions Silva , p.
I hope to contribute to this debate by using elements of the British experience to consider an alternative path that German firms might have taken, but chose not to, in activities where high-skilled production and cooperative workplace institutions continue to confer a comparative advantage.
Footnote 4 The outcome is that in these activities German firms have been very successful in sustaining a high skilled input in international supply chains. Increased competitive pressures on firms in both Germany and Britain have led to a retreat of the classical industrial relations models in other sectors where employers felt they did not confer a competitive advantage given the nature and organisation of their production and service systems.
To develop the argument, I outline a model of flexible employment relationships in which employers can benefit from both adaptive working and on-the-job problem-solving and learning, but to do so, they need to develop high-trust work relationships. These are favoured by institutional guarantees to workers, such as those provided by codetermination, as evidenced by the empirical studies showing, mostly, beneficial effects of works councils see Jirjahn Because both parties take considerable risks when setting aside protective work rules, flexible cooperation is not always stable, and without strong institutional support, there is always a danger that such rules will revert to more restrictive application when trust comes under strain.
These cooperative relationships are costly, so that employers are likely to be more interested in developing and sustaining them when the economic benefits are most valued, such as in order to maintain their position in competitive supply chains.
The retreat of the classical German model from other types of work place raises serious questions about social inclusion and workplace democracy, as argued by the Commission on the Modernisation of Codetermination Kommission Unfortunately these extend beyond the limits of this short paper, nevertheless, they need to be recognised, and some potential risks are considered in the conclusion.
Given the scale of contemporary challenges, it is not surprising that the roots of current changes in the German industrial relations model can be traced back over many years. The trends she analysed have continued. This decline in coverage has also been reflected in union and employer organisation membership Streeck : ch.
There has been an increasing share of councils operating outside both company and wage agreements, and a growth of firms with neither council nor wage agreement, up from one fifth to almost one third Ellguth and Kohaut In former East Germany, where the institutions were less securely established, the erosion was deeper.
Many similar long-term changes have occurred in Britain. From the late s, the decline in union membership density has followed a similar path in both countries. Another aspect of this segmentalism is that, in both countries, a substantial part of the decline of collective representation has been associated with the difficulty of organising new establishments, which also tend to be smaller, rather than with loss of representation in older establishments.
Similarly, for Britain, Machin showed the decline in coverage was due less to de-recognition in established workplaces than to the reluctance of new ones to accept unions. The third pillar of the classical German model is provided by vocational training, and notably the apprenticeship system, which, since the s, has been much stronger than in Britain.
There similar reforms to those introduced in Germany to raise training quality had caused costs to rise, and triggered a prolonged decline despite a number of public policy initiatives to reverse it Marsden ; Steedman More recently this form of vocational training has also come under strain in Germany. Hillmert has argued that its former virtues have become obstacles to change, notably in relation to the expansion of service employment and of higher education.
It used to provide the foundation for both promotion within large-firm internal labour markets, and mobility between small and medium firms across occupational markets Lutz et al.
Yet, the steady long-term expansion of higher education graduates in recent decades has eroded the internal promotion opportunities for those with intermediate vocational skills, apparently confirming concerns about skilled-worker careers raised earlier by Drexel On the small firm side, Lutz et al.
Thus squeezed from above and below, partial erosion of this pillar appears to be reflected in the number of young people entering university that now surpasses those entering apprenticeship Baethge and Wolter Strictness of employment protection in Germany and the UK — Yet it can play a very important role in regulating the employment relationship, and ensuring that workers get a fair deal from their employers, particularly over issues related to workloads and task assignments.
It will be argued later that the articulation between individual and collective dealing with management plays a critical part in job regulation, and in particular, in the development of flexible work roles and on-the-job learning. Two rough indicators of this are the strictness of employment protection regulations, and the practice of hiring workers into long-term jobs.
This is consistent with increased segmentalism in the German labour market. Turning to long-term jobs, falling job tenures could indicate weakening bonds between employer and employee, and potentially increased insecurity for workers, which was previously held in check by collective action.
In Germany, despite the retreat of collective regulation of employment, and despite measures to liberalise labour markets, overall employee job tenures have remained remarkably stable for both women and men Fig. This stands in marked contrast to the decline in male job tenures in Britain over the same period, both overall, but also affecting early middle-aged men, aged 35—39, traditionally considered as the core labour force.
However, a look at job tenures for young German employees aged 25— lower panel , compared with their elders, shows a decline since , as their tenures have become more like those of their British counterparts. Several factors could lie behind this. Younger workers are more likely to be in temporary jobs, boosted by the Hartz reforms, and in new and small establishments where their individual bargaining power has less institutional support, which is consistent with increased segmentalism.
Long term jobs for selected age groups in Germany and the UK — Germany shown by squares and the UK by triangles. Turning to the challenges of integration of large parts of manufacturing into global production systems, in both countries, the established models of employment relations in industry have faced similar pressures.
However, a brief comparison of the manufacturing sectors, traditionally the heartland of organised industrial relations, in both Germany and the UK reveals some fascinating differences. However, these common trends hide a very different trajectory for manufacturing production. This can be seen in Fig. It is a very different world from that envisaged by an earlier generation of Industrial Relations scholars for whom the workplace mostly transformed raw materials into final products.
Herrigel provides a vivid illustration of this process. Footnote 9. Arguably, employer confidence in workplace representative institutions is reflected in how far they are willing to work through them when seeking to adapt their businesses to changes in product markets such as those related to international supply chains.
In contrast, British employers appear to have been less willing to do so. An important clue to the nature of this difference can be found by comparing the nature of work systems in the two countries, and in particular, the different institutional needs of the lean and learning models, which will be explained in the next section.
Manufacturing value added and exports in Germany and the UK — This section uses data from a representative survey of European households, the European Working Conditions Surveys EWCS , for —, which enables a contrast between work patterns and trends in major economic sectors in the two countries.
Footnote 10 Drawing on the recent literature on work systems, Lorenz and Valeyre , and Holm et al. The distinguishing features of the learning model are employee problem-solving, on-the-job learning, job discretion, and autonomy. Those of the lean model include team working, rotation, and some problem-solving but subject to stronger co-worker and managerial pressures.
The taylor system is characterised by low job complexity, monotony, managerial pressures, and a low degree of worker engagement in problem-solving and learning activities. Details of the questions used and how they load onto each work system are shown in the appendix. Although the EWCS is a survey of employees, derived from a sample of households, there are good reasons to believe that one may draw conclusions about the distribution of work systems that affect groups and not just individual employees.
To test for this, the author regressed the typology of work systems on information from the respondents about human resource management practices in their workplaces, and notably, the type of pay system. This confirmed the presence of relationships between individual replies about work conditions and workplace practices of the kind predicted by Human Resource Management theory.
Footnote At the aggregate level, combining industry and services, the diffusion of these work systems in the two countries appears both to reflect the different more skilled starting point for Germany compared with Britain, and to show a parallel decline in learning-based work systems from the beginning of the period Table 1.
Many researchers on vocational training in the two countries have observed its strength in Germany relative to Britain eg Steedman and Wagner , but also noted the challenges of growing service employment and pressure of equity markets for quicker financial returns Culpepper Considering the economy as a whole, it appears that the learning model has lost ground in both countries, in Germany to the lean , and in Britain to the taylor model.
A closer comparison of industry and services shows that the decline in coverage of the learning model in Germany has been a feature of service, but not of industrial employment. In German manufacturing, the learning model has progressed slowly since , as has the taylor model.
In Britain, the learning model has lost ground to the lean and taylor models, with the lean model maintaining its dominance over other types of work systems. Thus if we allow for the ripple effects of Reunification on the results for Germany, it seems that the modernisation of work systems has taken the form of the more managerially controlled lean model in Britain, whereas in Germany, it has if anything given more weight to the learning model.
In the next two sections, I should like to outline a model of task flexibility and on-the-job learning in order to explain why industrial firms in Germany should have continued to work with labour institutions much more than those in services.
Such flexibility is of great value to the employer because it enables adaptation to variable organisational demands in the knowledge that the necessary labour will be available, and without the need to negotiate over each new task.
In practice, most jobs have a core of regular tasks, but they also comprise a number of related tasks which provide greater adaptability, and by their nature are harder to predict. Footnote 12 These related tasks, in particular, also provide opportunities for workplace problem-solving, and if workers are involved in this process, they may form the basis of dynamic on-the-job learning Kern and Schumann ; Koike and Inoki ; de Dreu et al.
Indeed, as will be seen later, the strong right to manage is really only practical for unskilled and routine jobs. Delegating task assignment to workers entails certain risks for management and so requires goodwill on both sides.
The nature of such risks can be explored in more detail by means of a bargaining model pioneered by Simon Footnote 14 It rests on the idea that there is a range of tasks at particular wage rates that are potentially both profitable for the employer and acceptable to the worker. For example, in his classic account, Barnard , p.
Wirtschaftspsychologie (B.Sc.)
Mein Name ist Michael, Dr. Michael Brandkamp. Dabei haben wir keinen speziellen Branchenfokus. Ich bin zwar nicht Investor des Fonds. Wir haben also einen Anreiz den Fonds erfolgreich zu machen. Es wird nie langweilig! Es kommt somit alles zusammen: technologische, betriebswirtschaftliche, juristische sowie auch psychologische Fragestellungen, mit denen wir laufend konfrontiert werden.
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German-Irish 40th Anniversary Yearbook_1021605.pdf
Journal for Labour Market Research volume 48 , pages — Cite this article. Metrics details. The paper examines recent evidence on the erosion of the German industrial relations model. This is explained by the nature of high performance work systems that involve flexible working and on-the-job problem-solving.
Griechenland-Krise: Schuldenschnitt auch ohne Grexit möglich
Das Studium basiert auf einer umfassenden betriebswirtschaftlichen Ausbildung. Aufbauend auf diese Kenntnisse bieten die 2 Vertiefungsrichtungen Kultur- und Freizeitmanagement oder Sportmanagement eine spannende Kombination an Lehrinhalten. Ein breites Wahlangebot aus den Bereichen Kultur- und Freizeitmanagement oder Sportmanagement zur individuellen Profilbilldung rundet das Studium ab. Kultur- und Freizeitwirtschaft, Sportwirtschaft 2. Betriebs- und Finanzierungsformen in der Kultur- und Freizeitwirtschaft, Vereinsmanagement 4.
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David Olson Ulrich born is a university professor, author, speaker, management coach, and management consultant. Ulrich was born in the small town of Ely, Nevada , but grew up in Oregon. His father worked as a forester building campgrounds, then transferred in order to direct social programs for Job Corps. His mother spent time in church and community service.
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