Table Of ContentDOCUMENT RESUME
CE 068 379
ED 380 556
Mitchell, Steve; Kaufman, Barbara
AUTHOR
Employees as Partners in Change. Workforce Brief
TITLE
#3.
National Alliance of Business, Inc., Washington,
INSTITUTION
D.C.
Department of Labor, Washington, D.C.
SPONS AGENCY
PUB DATE
95
5p.; Produced by the National Workforce Assistance
NOTE
1 and 2, see ED 378
Collaborative. For briefs #s
406-407.
Non-Classroom Use (055)
PUB TYPE
Guides
MFO1 /PCO1 Plus Postage.
EDRS PRICE
Adult Education; *Business; *Change Agents; *Change
DESCRIPTORS
Strategies; Cooperation; *Employer Employee
Relationship; Employment Practices; Guidelines;
*Organizational Change; Teamwork; Unions; *Work
Environment
ABSTRACT
According to the employees, employers, and service
providers who participated in a series of 18 focus groups across the
country, companies striving to reinvent themselves to compete
successfully are beginning to recognize the benefits of making
employees partners in the change process. Companies have only three
levers for making changes in companies: design, technology, and
people. Successful change requires that organizations have employees
capable of functioning in the new environments resulting from design
and/or technology innovations. Engaging employees as partners in
change creates a new covenant between employers and employees that
includes the following elements: employability, training,
information, capacity to act, and rewards. Companies that want change
to be a positive force must understand how to engage employees as
partners in change. Employees and managers from small and midsized
businesses involved in both successful and unsuccessful change have
offered the following guidelines for managers wishing to engage
employees as partners in change: communicate throughout the change
effort, create a culture that supports change, value workers, treat
workers equitably, design training to improve performance on the job,
and be committed to change.
(MN)
********************** ,;:**********************************************
*
Reproductions supplied by EDRS are the Lest that can be made
fror the original document.
*************************.0:********************************************
U S OMINTIRFrt 00 10,4000.1
deo 0 Aura Mews. vet
Pk SWIM
PIPONIMMOM
21""WCPMER (MCI
TIlINCWWW1 0 MIFOOMOS
Ammo. tem low wow.
wipormerm
4.1.11.11
0 Mow CM.1116 PO Mw mob ft
mo oepowhown sally
WORKFORCE
n,
nw.
Pon, el re. Or spawn.
SEM
.0
dloraorwe dm owl harefra
Mg
OM imago so poker
1111111111111
PREPARED BY THE NATIONAL ALLIANCE OF BUSINESS
improving day-to-day work process-
es), and the adoption of self-direct-
Employees
as
ed teams are each a method focus
group participants used to change
Partners in Change
oronization design and improve
competitiveness.
"It is no news to business leaders
that a skilled workforce can be a
Introduction
groups with employers, employees.
strategic trump card. Other elements
and service providers from across
of a business can be replicated by
the country. They told us:
ompanies striving to rein-
machines. processes,
competitors
CI Why employees are a critical
vent themselves in order
raw materials, access to cheap labor
part of any change effort;
to compete successfully
around the world. But a skilled, flexi-
What the elements of a new
are beginning to recognize that
ble workforce that can create value in
covenant between the company
it is the combined knowledge
ways that matter in the marketplace
and its employees are; and
of all of their employees that
can offer enduring competitive advan-
How to engage workers as part-
can differentiate them from
tage?
ners in change.
their competition and give
Robert Reich
them the competitive edge they
Secretary of Labor
need in the marketplace.
Employees:
Realizing this competitive
The 'Key to change
advantage requires that
employees and managers be
The most visible by-product of
Companies have a limited num-
partners in change. This offers
many design changes is the loss of
ber of levers by which to orches-
jobs. Recent research indicates
a special challenge to many compa-
trate organizational improvements.
that change efforts resulting in job
nies.
How these levers are used affects
loss have produced only short-term
To learn more about how
the degree to which employees
productivity improvements, along
employees can serve as partners in
become partners in change.
with a demoralized workforce and
company change efforts, the Nation-
Unfortunately, these levers are
high levels of stress for the remain-
al Workforce Assistance Collabora-
often handled in a manner that lim-
ing workers forced to absorb addi-
tive conducted a series of 18 focus
its employees' engagement as part-
tional work.
ners in the change process.
New technology
This brief was developed based on
Focus group participants noted
There is no doubt that technol-
18 focus groups that the National
only three levers for making
ogy plays a key role in transform-
Workforce Assistance Collaborative
change in a company: design, tech-
ing organizations. Technological
nology, and people.
conducted in February and March of
advances have been instrumental in
1994: seven with businesses, six with
Design
enabling firms to produce better,
service providers, and five with
The design of an organiza-
faster, and cheaper. For a limited
employees. Sessions were held in
the systems, structures, and
tion
time, state-of-the-art technology can
processes within which work gets
Atlanta: Baltimore; Chicago;
provide a competitiv3 advantage to
is one lever for change.
done
Cleveland; Dallas; Detroit; Los
early adopters; to late adopters, it
Reengineering (identifying and
Angeles; New Brunswick, New Jefsey;
is the price of entry into the game.
focusing on core business process-
Washingtor, DC: and Westmoreland.
Despite its power, however,
es), restructuring (continually
Pennsylvania.
technology can simply enable and
6
NATIONA;. WORKFORCE ASSISTANCE COLLABORATIVE
BEST COPY AVAILABLE
ment. Unfortu-
covenant between
facilitate transformation
only
In one cbi,?0.iia .comPany;pach
?mployers and
people can cause transformation.
nately, employee
the
employee iS-tTainefil in all five
employees. It is a
involvement pro-
Thus, technology is only as effec-
covenant based on
grams are not
tive as the people who use it.
provided by.thOse .eniloyeei-cutreet,
mutual respect,
Focus group participants noted
always deployed
ly doing the work. . EhiplOyees
that reflects the
effectively. Focus
that involving employees "up front"
.
receive training kir a brig-as
realities of the
group participants
in the design and selection of new
need it. They !`pasS our of traieirig
changing work-
involved in failed
technology, and ensuring employ-
when they are able
place. The basic
ees are trained to use the technolo-
employee involve-
hour shifts in a row Withoufmaking.
elements of this
ment programs
gy, increase the benefits obtained.
any errors.
new covenant are
blamed these fail-
People
emerging from
ures on the limited
Successful change requires that
the ongoing negotiations between
scope of the programs or on man-
organizations have employees capa-
employers and employees con-
agement's failure to follow thro-e gh
ble of functioning in the new envi-
fronting the reality of the changing
on employee recommendations.
ronments resulting from design or
With technology and ideas
workplace.
technology innovations. The need
Focus group participants dis-
moving around the globe at
for more flexible and skilled work-
cussed a number of elements to a
increasing speeds, a company's
ers compels companies to invest in
new covenant:
workforce is fast becoming its only
employee learning and stimulate
mechanism for distinguishing, itself
Employability
employee commitment.
from its competitors. More and
Employees and the company
As technologies and processes
more frequently, it is the workforce
share responsibility for enhancing
become more complex, businesses
that enables a company to improve
the individual's employability inside
find it necessary
productivity and
and outside the company. Job
to either hire
A Baltimore area company sent
firm competitive-
security (the promise of continued
workers with
workers to a two-day TQM seminar
ness, and create
employment in a particular job) is
more skills or
and a four-day seminar on team build-
value in the mar-
replaced by employment security
retrain current
ing and team leadership. The
ketplace. It is
(the opportunity for continued
workers.
employees liked the classes, but when
ironic that at a
employment within a firm if an
Replacing current
the company lost the manager who
time when a
employee learns new skills) or the
workers with new
started this employee involvement ini-
skilled, flexible
security of employability (the
hires can have the
tiative; the employees never used the
workforce is being
opportunity to learn the skills
same demoraliz-
skills learned in the classes.
recognized as an
needed to find a job of comparable
ing effect on
enduring competi-
quality elsewhere in the economy).
remaining work-
The end result:
tive advantage,
.
The shifting nature of security is
ers as downsizing.
frustn.:Ion.
hicreased employee
many companies
an emotionally charged issue. In
While effec-
are adopting man-
the new covenant, there is a
tive retraining can
agement tactics
long-term commitment on the part
provide tremendous benefits to
that create an atmosphere of fear
of both partners to ensure the
companies and workers, employees
and frustration, not trust and com-
worker's employment security, or
in the focu groups cautioned that
mitment. Changes in organization
at least employability.
poorly planned and/or executed
design and technology must be
Employees are dedicated to the
training progra. !s are frustrating
aligned and coordinated with com-
idea of continuous learning and are
and dysfunctional. Group members
panies' investments in people if
ready to improve their skills to
mentioned some examples of inade-
employees are to become partners
keep pace with change. They take
quate training, including training in
in change.
responsibility for managing their
skills that are never used, or "cress
individual careers and are commit-
training" by placing employees
The Elements of a
ted to their company's success.
before a new machine without any
New Covenant
The company helps employees
instruction or guidance.
assess their skills and explore job
Employee involvement has been
alternatives, facilitates life-long
one of the most common approach-
Engaging employees as part-
learning and career development,
es for inspiring employee commit-
ners in change creates a now
CE ASSIST \NCE COLLABORATIVE
NATIONAL WORKFOR
AGE. 2
INK
profit sharing or bonus plans in
ing and informa-
and, if necessary,
A Clevejind company shuts down
which profits were distributed
tion; it requires
supports no-fault
fin one hour each week for all-staff
equally across all members of the
providing oppor-
exits.
nieeti4,:at which time employees
company. Companies struggling
tunities for
Training
discuss problems and possible soiu-
with charge either had profit shar-
employees to use
Ongoing pro-
tions at the plant. Safety problems
ing or bonus plans that did not
their skills and
fessional develop-
don't even merit a discuSsion. If
deliver, did not have any profit
demonstra`o their
ment and training
employees have a safety concern,
sharing or bonus plans, or had
commitment.
strategies equip
they fill out a form for the mainte-
plans that rewarded management
Opportunities are
workers with a
nance department and the problem is
provided through
only.
broad range of
handled that same day.
The new covenant also pro-
individual and col-
skills to develop
motes improved company working
lective involve-
employee capabili-
conditions, an enriched quality of
ment in
ties and flexibility, and to maximize
work life, and enhanced employee
problem-solving at all levels of the
employee contributions. The com-
company, as well as individual and
self-esteem.
1) clearly identifies the skills
pany:
collective involvement in
needed by employees at all levels,
Engaging Employees
decision-making related to manage-
2) identifies any skill deficits
ment systems (e.g., plant and equip-
as Partners in
Change
and 3) arranges
employees ha
ment, quality and product, organi-
for needed instruction.
zation and procedures, staffing,
The company also develops and
Change is neither good nor
and planning processes).
supports a learning environment
bad: it may have good or bad
Rewards
for all of its employees. While
effects depending on its implemen-
The new covenant r:41ects the
classroom and other formal instruc-
tation. Companies that want
concept that employees share in
tional activities continue to have
change to be a positive force must
the risks and the rewards of compa-
an important place in the spectrum
understand how to engage employ-
ny operations, and offers employees
of learning activities, the ultimate
ees as partners in change.
both tangible and intangible bene-
act of learning is embedded in the
The ability to engage employees
It is a given in the new
work that individuals and teams
fits.
depends on a company's previous
covenant that the basic terms of
perform. Thus training still
history with organizational develop-
employment are fair and equitable.
includes formal programs, but also
It is
ment efforts.
Through the
involves consultation, coaching,
more difficult to
In a unionized work setting,,
adoption of such
and facilitation of performance on
gain employee
engaging empinyees as ria:itners
systems as
the job.
commitment when.
change requires that the emp,Apten,
skill-based pay,
prior change
Information
wages reflect
CI Engage the labor organization as a ,
efforts have failed
All workers are trained to know
employees'
partner, recognizing the legitimate
to take account of
what the business is about, the
role of the union leadership as a
increased value as
employee needs
challenges the company faces, and
change agent;
a result of train-
and concerns.
.
the contribution they make to com-
ing. In many
0 Recognize the legitimate role of
However, focus
pany productivity. All employees
the existing collective bargaining
cases, employees
group par iicipants
are provided with and trained to
agreement;
are made partners
from companies
read financial information. The
.
.
in the creation
continue,to use the existing grieve
with a history of
organization ensures that employ-
ante *decline, ensuring that
and distribution
failed reform
ees can create, receive, and trans-
employee involvement enhances,;
of wealth. This
efforts noted that,
mit information as needed to pro-
not subverts, any existing labor--
may involve gain
when manage-
mote continuous company improve-
managerrient processes; and
sharing, profit
ment communi-
ment.
ij Be cognizant of the value of equal
sharing, and/or
cates with its
Capacity to Act
representation of workers and
stock ownership.
workers, treats
As part of the new covenant,
management on any employee
All of tne high
workers as individ-
organizations enable employees to
involvement team, whenever possi-
performance com-
uals, and shows
act. Creating the capacity to act
ble using the union to select the
panies in the
commitment to
goes beyond the provision of train-
employee members.
focus groups had
the change
PAGE :3
NATI0NAL \VnioiFoRcE .\ssisT.\NcE
that ensure that all employees
workplace innovations.
process, employees are still willing
can "pull their weight."
Establish an employee
to become partners in change.
Design training to
involvement program where
Employees and managers from
improve performance
managers and employees or
small and mid-sized businesses
on the job.
Include man-
employee representatives set
involved in both successful and
agers and workers in planning
the agenda and all issues, prob-
unsuccessful change offered advice
and delivering training. This
lems, and concerns can be
to managers who want to engage
gives training the maximum
raised. Managers must make
employees as partners in change:
Communicate throughout
support and relevancy it needs
sure they know what they want
the change effort.
to succeed. Provide as much
to accomplish with their
training as possible on compa-
Employees want to know the
employee involvement pro-
ny time. Instruction should
grams and set measurable
company's game plan and the
last for as long as employees
goals to gauge progress.
expected results. Employees
Treat workers equitably.
need it to master new skills.
expect management to tell
Be committed to change.
Equitable treatment means no
them what has happened and
Employees are sensitive to
special treatment of any class of
both the good news and
why
managers' commitment to the
the bad. They also want man-
employees, including manage-
change process. For employ-
agement to emit its errors.
ment. Employee participants in
ees. actions speak louder than
the focus groups suggested the
Holding both departmental and
words. Employees gauge man-
test of a supportive culture is
all-staff meetings, adopting an
agers' commitment by their fol-
whether employees are treated
open door policy, and opening
low-through on ideas and their
with respect and dignity.
the books to all workers can
commitment of resources
Substantive actions demon-
facilitate communication.
Create a culture that
time, training, and money
strating fairness include equi-
supports change.
needed to solve identified prob-
table reward and compensation
plans. More symbolic signs of
lems.
Workers have been asked for
Commitment involves stick-
fairness include having all
years "to check their minds at
such
ing with change efforts
workers, including manage-
the door," so many of the
as improving employee skills
ment, wear the same uniform,
change.; asked of them as. part
in good times and bad.
also
abolishing reserved parking
of the new covenant are diffi-
I
requires managers to keep their
and scary. Change is
spaces, having all employees
cult
word. Managers who do what
eat at a common cafeteria, and
also new for many supervisors.
they say and demonstrate the
establishing a common office
They must alter their tradition-
patience needed to transform a
layout to eliminate status differ-
al perspective of "us versus
company will earn their emplo-
ences suggested by size of
them" employer/employee rela-
the ultimate bond
yees' trust
office or type of furniture.
tions. More importantly, they
between partners in change.
This principle of fairness
must alter their behaviors from
also requires selection, evalua-
acting as lone decision makers
Steve Mitchell and Barbara Kaufman
tion, and development systems
to serving as resource
1995
providers and facilitators of
teams of decision makers.
The National Workforce Assistance Collaborative builds the capacity of the
Managers must support
service provideis working with small and mid-sized companies in order to help busi-
both employees' and supervi-
nesses adopt high-performar;:e work practices, become more competitive, and ulti-
sors' beginning attempts at
mately advance the wellbeing of their employees. The Collaborative was created
change if they want them to
with a $650,000 cooperative agreement grant from the Department of Labor to the
keep trying.
National Alliance of Business. Current partners on the project include the Council
Value workers. Assume
for Adult and Experiential Learning, the Institute for the Study of Adult Lite:'ary at
that employees know what they
Pennsylvania State University, the Maryland Center for Quality and Productivity, and
are doing and care about their
the National Labor-Management Association. The Collaborative provides assistance
company. Ask and listen to
in four areas: employee training, labor management relations, work restructuring,
their opinions. Involve employ-
and workplace literacy. For more information, contact Bernice Jones at the National
ees in the design and selection
Alliance of Business, (202) 289-2915.
R5584
5
of new technology and other
NATI0NAI. 11'01thFoRC'E ASSISTANCE Cul.LA13()RATIvE
PAGE 4
