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Organisational change influences working conditions

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A study by the National Institute for Working Life [1] on the Significance of organisation for healthy work (707Kb pdf) [2] investigates the interrelation between work organisation and health at work. The aim of the study is to develop further a theoretical and methodological framework for future studies on this context within the international discourse. This general approach takes a previous study conducted in Sweden as a basis and model. It is focused on classifying the results of the empirical research and assessing the different methods used. The study is of general interest and provides information for European research and European policies in the areas managing change, worker’s health and working conditions. [1] http://www.arbetslivsinstitutet.se/en [2] http://ebib.arbetslivsinstitutet.se/ah/2004/ah2004_13.pdf

Work organisation impacts on working conditions and health. The majority of workers are affected by organisational change. Differences are evident between clusters of organisation, patterns of organisational change, and groups of workers.

A study by the National Institute for Working Life on the Significance of organisation for healthy work (707Kb pdf) investigates the interrelation between work organisation and health at work. The aim of the study is to develop further a theoretical and methodological framework for future studies on this context within the international discourse. This general approach takes a previous study conducted in Sweden as a basis and model. It is focused on classifying the results of the empirical research and assessing the different methods used. The study is of general interest and provides information for European research and European policies in the areas managing change, worker’s health and working conditions.

The key conclusion of the study is that organisational structures and changes have a direct impact on working conditions. The analysis revealed that a large proportion (up to 66%) of the variance in working conditions was attributed to the organisational level. The highest proportion of variances was evident in physical and ergonomic aspects (46%), and with regard to complexity in job tasks and job control (38%).

Methodology

Quantitative analyses and both open-ended and structured interviews were conducted. Cluster analysis was applied in order to identify patterns across several organisational dimensions. The identified clusters of organisations were used in multi-level analyses to investigate the organisational level impact on working conditions.

The analyses of working conditions were based, firstly, on employees’ personal evaluation of their working conditions, covering aspects such as demands, control, obstacles, physical strain, and various consequences of change. The second basis comprised external assessments, by trained observers, of work circumstances, such as skills requirements and physical workload.

Organisational structures and working conditions

Structural aspects of the organisation have less significance than suggested in previous theories and empirical studies. Aspects of the production process and management technologies seem to be more relevant than traditional aspects such as hierarchy.

Variables used in the analyses consisted of power structure, formalisation, integration of work process, production based on technology and/or social interaction, location of work in time and space, management technologies, market situation, customer relations, and size of the workplace.

  • The analyses revealed four key patterns of organisational clusters:
  • individual oriented;
  • public oriented;
  • market oriented;
  • top-level oriented.

The study found significant differences in mental overload, under stimulation, time pressure and time-bound work between the patterns of organisation.

The public-oriented organisations demonstrated the worst conditions with regard to mental overload and time pressure. The top-level and market-oriented organisations are characterised by time-bound work, physical overload, and low levels of control. Extensive task development and high strain jobs were most often found in top-level oriented organisations. The market-oriented cluster provides the lowest level of skill-dependent production and of in-house training, and employs a large proportion of temporary workers. Principles such as soft management technologies, individualised rewards systems, low degree of formalisation, being at the cutting edge of high technology, and long-term customer relations characterise the individual-oriented organisations.

  • The best working conditions were described for the individual-oriented organisations, and the worst for public-oriented organisations and for those employing mainly women. The lowest level of control, low complexity in job tasks, and the worst physical and ergonomic conditions are evident in the market-oriented organisations.
  • Gender composition interacted with characteristics of working conditions. Leaving aside organisations employing mainly women, the following observations were made:
  • women had lower levels of control than men;
  • highly educated workers had better physical/ergonomic working conditions than those who were less educated;
  • highly educated individuals experienced lower noise levels and lower circulatory load (measurement of heart rate) than less educated ones.

Organisational changes and working conditions

A key thesis of the study is that organisational change contributes to increased differentiation of working conditions. Different types of changes occur in specific areas of the labour market, and affect groups of employees in different ways.

Organisational change is very common. Some 60% of the investigated workplaces were subject to major changes to their organisation and production process over the previous two years.

A significant and large proportion of the variance - in nine out of 10 aspects of working conditions that were tested in the multi-level analyses - is attributed to the organisational level.

Ergonomic strain, complexity in job tasks, job control, and negative consequences of changes showed the highest proportions of variance.

Types of organisational change

The characteristics of the most common patterns of organisational change and the impact of working conditions are:

Lean organisation

This type of organisational change is shaped by extensive structural change, increased integration of work processes and qualification requirements, decrease in the number of hierarchical levels, a centralised power structure, and reduction in staffing. This cluster showed the largest increase in control and development possibilities, combined with the most frequent obstacles at work, most negative change of reward systems, most frequent worries and conflicts as consequences of change, and high noise levels.

Market adjusting

This pattern demonstrates high levels of adjustment in dealing with the marketplace and facing competition, with no other changes. These organisations have the worst conditions with regard to control, change of influence and development, routine work, and ergonomic, physical and occupational hygiene conditions. Strenuous work postures and routine work are most common.

Standardising

Key features of this pattern are an increase in measurement and control of employees’ performance and productivity, with few other changes. This cluster is characterised by similar work environment problems to the market adjusting organisations, and also by the highest proportion of employees experiencing time pressure, mental overload, under stimulation and low pay.

Centralising

Characteristics of this type of organisational change are a centralised power structure, an increase of hierarchical levels, qualification requirements, use of result monitoring, use of soft control systems, extensive structural changes, and reduction in staffing. The organisations have good conditions in terms of occupational hygiene, general work environment and physical strain. They also showed the most negative changes in development and control possibilities.

Stable

This cluster shows no extensive changes, and has a decentralised power structure, high integration of work processes, and very little result monitoring. It has the best conditions, particularly regarding extrinsic rewards, control, creativity and ergonomics.

Anni Weiler, AWWW GmbH ArbeitsWelt - Working World



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