Employment Policy Implications of New Management Systems

ABSTRACT: Technical change, economic internationalisation and generally increased competition have caused management in many firms to adopt new employee management systems such as “lean production”, TQM, and have placed a premium on “high performance” cooperative industrial relations systems. This article seeks to provide a first analysis of their likely effects upon the structure of employment, and whether they exacerbate the unemployment problems of many categories of workers. It is argued that these systems place a premium on employment stability of those workers for whom functional flexibility and high levels of cooperation are needed. It asks whether a mix of job stability and limited functional flexibility among incubent workers in many Western European countries has contributed to low hiring rates, and how far cooperative relations within the firm can be cultivated in isolation from conditions in other firms.     

Temporary Employment,Working Conditions and Expected Exits from Firms

This paper analyses two issues related to working conditions and temporary employment. First, why do temporary workers exhibit lower scores in objective indicators of working life? Second, what is the influence of working conditions on mobility? Using information for Spanish workers, the results indicate that differences in working conditions remain after controlling for individual, job and firm characteristics: in particular, temporary workers with short job tenure seem to occupy jobs with poorer working conditions. Moreover, there is evidence that workers with worse working life are more likely to expect to leave their current firms.     

Explaining Anomalous High Performance in a Health Care Supply Chain*

An implicit assumption in distributing and coordinating work among independent organizations in a supply chain is that a focal organization can use financial or contractual mechanisms to enforce compliance among the other organizations in meeting desired performance objectives. Absent contractual agreement or financial gain, there is little incentive for independent organizations to coordinate their process improvement activities. In this study, we examine a health care supply chain in which the work is distributed among independent organizations. We use a detailed case study and an abductive reasoning approach to understand how and why the independent organizations choose to coordinate and collaborate in their work. Our study makes two contributions to the literature. First, we use well‐established lean principles to explain how independent organizations achieve superior performance despite highly uncertain and variable customer demand—a context considerably different from the origins of lean principles. Second, we forward relational coordination theory to explain why the organizations in this decentralized supply chain coordinate their work. Relational coordination includes the use of shared goals, shared knowledge, and mutual respect for one another's work as primary mechanisms to explain process improvement in the absence of any contractual incentives. Our study constitutes a first step in generating theory for work design and its improvement in decentralized supply chains.     

Supply Chain Strategy,Product Characteristics,and Performance Impact: Evidence from Chinese Manufacturers*

Supply chain management has become one of the most popular approaches to enhance the global competitiveness of business corporations today. Firms must have clear strategic thinking in order to effectively organize such complicated activities, resources, communications, and processes. An emerging body of literature offers a framework that identifies three kinds of supply chain strategies: lean strategy, agile strategy, and lean/agile strategy based on in‐depth case studies. Extant research also suggests that supply chain strategies must be matched with product characteristics in order for firms to achieve better performance. This article investigates supply chain strategies and empirically tests the supply chain strategy model that posits lean, agile, and lean/agile approaches using data collected from 604 manufacturing firms in China. Cluster analyses of the data indicate that Chinese firms are adopting a variation of lean, agile, and lean/agile supply chain strategies identified in the western literature. However, the data reveal that some firms have a traditional strategy that does not emphasize either lean or agile principles. These firms perform worse than firms that have a strategy focused on lean, agile, or lean/agile supply chain. The strategies are examined with respect to product characteristics and financial and operational performance. The article makes significant contributions to the supply chain management literature by examining the supply chain strategies used by Chinese firms. In addition, this work empirically tests the applicability of supply chain strategy models that have not been rigorously tested empirically or in the fast‐growing Chinese economy.     

Supply chain contract evolution

This paper draws together theories from organisational and neo-institutional literatures to address the evolution of supply chain contracts. Using a longitudinal case study of the Norwegian State Railways, we examine how firms move through the stages in an inter-organisational process of supply chain contract evolution and how they can cooperate to ensure efficiency and equity in their contractual relationship. The findings suggest that inefficient and inequitable initial contracts can occur, in part, because of the cognitive shortcomings in human decision-making processes that reveal themselves early in the arrangement before learning and trust building can accumulate. We then reveal how parties can renegotiate towards a more equitable and efficient supply chain contract.     

Shades of gray: effect of external work arrangements on firm performance under operational and strategic contingencies

This study builds on recent research on the external workforce by examining the effects of (1) temporary work (2) independent contracting, and (3) consulting on firm performance, considering the client firms’ tasks, the qualification requirements for carrying out these tasks, and its strategic context. The findings are based on a survey of 261 firms in the German manufacturing industry. At the operational level, the results indicate that the difficulty of the tasks to be performed by external workers influences their performance. Whilst temporary work and consulting are better suited for simple tasks with low qualification requirements, independent contracting increases firm performance when appointing individuals to perform complex tasks. At the strategic level we research effects by two strategic orientations; one generally increasing the internal innovation performance (innovation orientation), the other generally increasing the performance of external relationships (alliance orientation). The innovation orientation here reduces the negative effect of temporary work, whereas a high alliance orientation precipitates a positive effect of consulting on firm performance. This paper demonstrates that clients’ task requirements and their alignment towards innovation and alliances have a significant influence on the benefits to the firm conveyed by highly qualified externals.     

Public-Private Partnership Contractual Design: A Computational Model of the Moral Hazard with Lotteries

Public-Private Partnership (PPP) is a new model of public management which consists of the contractual relationship between public and private entities. In particular, PPPs enable risk share between public and private sectors making the asymmetric information problem in a contractual arrangement more evident. The aim of this paper was to study a moral hazard problem applied to PPP contracts. To achieve this objective, a PPP computational contractual model including the moral hazard with lotteries was developed to assess how contractual changes could affect the optimum behavior of arrangement members. Simulations indicate that projects with higher economic value should attract more qualified firms, which may be why the companies expend more effort. To deal with possible contractual contingencies and try to minimize the moral hazard problem, the government could draw up more flexible contracts in order to include possible necessary changes and punish unwanted or improper consortium behavior.     

From Temporary Competitive Advantage to Sustainable Competitive Advantage

Both industrial organization theory (IO) and the resource‐based view of the firm (RBV) have advanced our understanding of the antecedents of competitive advantage but few have attempted to verify the outcome variables of competitive advantage and the persistence of such outcome variables. Here by integrating both IO and RBV perspectives in the analysis of competitive advantage at the firm level, our study clarifies a conceptual distinction between two types of competitive advantage ? temporary competitive advantage and sustainable competitive advantage ? and explores how firms transform temporary competitive advantage into sustainable competitive advantage. Testing of the developed hypotheses, based on a survey of 165 firms from Taiwan's information and communication technology industry, suggests that firms with a stronger market position can only attain a better outcome of temporary competitive advantage whereas firms possessing a superior position in technological resources or capabilities can attain a better outcome of sustainable competitive advantage. More importantly, firms can leverage a temporary competitive advantage as an outcome of market position to improving their technological resource and capability position, which in turn can enhance their sustainable competitive advantage.     

动态环境下联盟竞合、治理机制与创新绩效的关系研究

本文从竞合视角审视联盟组合,结合动态关系观探讨有效的联盟治理机制,揭示了联盟组合中竞合关系(横向竞合、纵向竞合)、治理机制(契约治理、关系治理)和创新绩效之间的关系,并考察了动态环境特征(技术波动、竞争强度)的二次调节作用。在不同的竞合关系中,由于合作和竞争的强度不同,契约治理与关系治理机制的作用也存在差异,同时,治理机制与创新绩效之间的关系也受到两种不同环境动态性特征的影响。研究结果显示,在纵向竞合中,运用关系治理比运用契约治理能更好地提升创新绩效,技术波动正向调节契约治理、关系治理与创新绩效间的关系。在横向竞合中,运用契约治理比运用关系治理有效,竞争强度加强了契约治理对创新绩效的影响,即关系治理在波动的环境中更有效,契约治理在竞争的环境中更有效。本文为企业开展研发联盟组合管理提供了新的视角和管理对策。     

Alternative uses of temporary work and new forms of work organisation

The purpose of this study is to investigate the relationship between the use of temporary workers and the adoption of new forms of work organisation (NFWO) in production. This study aims to understand to what extent these two forms of human resources flexibility are synergic or mutually exclusive. In order to answer this main goal, we discuss different levels of temporary workers adoption in relation to different levels of use of NFWO, the level of integration of temporary workers within the overall production organisation and the joint and synergistic use of NFWO and temporary work. Evidence drawn from seven case studies in manufacturing plants in northern Italy is provided. Results highlight that, according to the characteristics of the production process, temporary workers and NFWO are not mutually exclusive, that temporary workers can be integrated with other workers in the shop floor, and that NFWO can also be adopted for temporary workers. In addition, NFWO has been proven to be a key enabler to integrate temporary workers within the organisation, thus showing an important synergistic effect between the two human resource flexibility practices.     

The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms

Manufacturing firms aim at improving both internal and external processes to improve the competitive advantage. Such initiatives include lean practices as well as supplier rationalization and integration. In this paper, we analyze these improvement initiatives and their impact on business performance. In particular, we explore potential differences between make-to-order (MTO) and make-to-stock (MTS) firms. We use data from 216 Australian manufacturing firms. We find a clear difference of improvement focus between MTO and MTS firms. MTO firms exhibit a significant impact of supplier integration on business performance, but not for lean practices and supplier rationalization. The situation is completely reversed for MTS firms, since they have significant effects for internal lean practices and supplier rationalization, but not for logistics integration with supplier. The results show that the distinction between MTO and MTS firms is important when analyzing manufacturing and supply chain improvement initiatives.     

The Sharing Economy Globalization Phenomenon: A Research Agenda

Sharing economy firms have been able to achieve global levels of success at an unprecedented pace. In this study, we focus specifically on internet-based firms that allow rent appropriation from temporary utilization of underutilized assets. By looking at these firms' main characteristics and the current dynamics revolving around their internationalization process, we develop a framework to guide future research drawing from a business ecosystems perspective. The business ecosystem approach is a promising theoretical lens to assess this phenomenon due to its more holistic view of multisided network effects and multiple stakeholders' participation that can vary across nations. We note that the sharing economy phenomenon has spurred worldwide adoption of platform businesses which, in turn, creates a great opportunity for future research to extend current theories by exploring why, when, and how these firms expand into new countries. We argue that further research on sharing economy firms and its interactions with different national ecosystem configurations can provide important insights to theory as well as relevant information to managers and policymakers.     

Survey of manufacturing curricula from around the world

In the manufacturing organization cost or more specifically cost reduction is an everyday obsession with managers and engineers. To compete globally and win new contracts, manufacturing firms need to learn how to be responsive, lean and efficient. On the other hand, in order to retain and motivate workers, improve systems efficiency and conform to various regulations including health, safety and the environment, manufacturing firms need to continuously invest. Both opposing pressures create a challenging environment for manufacturing managers and engineers. This paper introduces research into how the manufacturing environment is changing and in particular the type of issues that manufacturing managers and engineers need to learn. The paper presents the first results of a study being conducted by a number of academic institutions and industries from around the world into manufacturing education issues. The principle aim of the research consortium is to anticipate the needs of manufacturing organization of the future and to provide a framework for curriculum development within universities that meet these needs. This paper specifically outlines the results of a study of existing manufacturing curricula from around the world and takes an in-depth look at four recently developed masters programmes.     

The Transition from Temporary to Permanent Employment: Evidence from Tuscany

Abstract. In this paper, by distinguishing between the decisions made by the workers and those made by the firms, we provide a probabilistic evaluation of the transition from temporary to permanent employment in a regional context. Specifically, by exploiting a multinomial nested logit strategy of estimation, we find that the transition to a permanent job is far from certain, especially for women and older workers.     

The impact of lean practices on operational performance – an empirical investigation of Indian process industries

In deciding to adopt lean manufacturing, it is imperative to investigate where and how lean practices are most needed to influence manufacturing and business performance. Such an investigation becomes indispensable when lean thinking is to be considered in a production arrangement different to the conventional, repetitive, high-volume, stable-demand and discrete-manufacturing environment. This study provides explanations of how performance is improved through the adoption of lean practices in process industries. This is a relatively under-researched area compared to the performance effects associated with the introduction and implementation of lean principles in traditional, discrete manufacturing. Based on a survey of Indian process industries, this study attempts to develop an empirical relationship between lean practices and performance improvement through the use of multivariate statistical analysis. The findings have led to the conclusion that lean practices are positively associated with timely deliveries, productivity, first-pass yield, elimination of waste, reduction in inventory, reduction in costs, reduction in defects and improved demand management. However, within a process-industry context, lean practices related to pull production were found to have a marginal impact on performance improvement. A detailed discussion of the findings along with their theoretical and managerial implications is provided in the paper.     

Balancing assembly line with skilled and unskilled workers

In this paper, we present the process of rebalancing the line at motorcycle-assembly plant. The company found it necessary to rebalance its line, since it needs to increase production in the spring and summer months. The main characteristics of the problem are as follows: (i) the company hires temporary staff, who need more time to carry out their tasks than permanent workers; (ii) there must always be at least one skilled employee working alongside an unskilled one; and (iii) different task groups are incompatible with each other (clean-hands tasks and dirty-hands tasks). The goal is to minimise the number of temporary workers required, given a cycle time and the team of workers on staff. The problem is modelled as a binary linear program (BLP) and solved optimally by means of the ILOG CPLEX 9.0 optimiser. The solution provided, namely 12 permanent workers (skilled) and two temporary workers (unskilled), is an improvement on the solution implemented by the business, which involved 12 permanent workers and four temporary workers.     

Quality and flexibility performance trade-offs between lean and agile manufacturing firms in the automotive industry

Abstract

Firms operating in the automotive industry have traditionally been ascribed with efficiency and high levels of quality, as lean production has been extensively applied within this context, but given the recent dynamics in the automotive sector, there is also a need for high levels of flexibility, widening our attention to agile production. However, when lean and agile production have been explored simultaneously, the quality and flexibility trade-offs have been mixed and unclear. In order to dispel the lean-agile ambiguity, and given that both high levels of flexibility and quality are required within the automotive industry, the purpose of this study was to: (a) Identify the relationship between flexibility and quality; and (b) Explore the quality and flexibility differences between lean and agile production. Primary quantitative data was obtained via a survey and a total of 140 automotive manufacturing firms within the UK returned the survey. Logistic regressions were utilised as the main mode of analysis. Not only was an inverse relationship found between quality and flexibility, but our findings depict two distinctive Business Models (BMs) existing in the automotive industry, one lean and one agile. We advance the lean-agile debate by asserting that lean and agile firms acquire quality (efficiency) and flexibility strengths respectively, and not vice-versa. Given this, we theoretically side with the notion of performance ‘trade-offs’ and contend the idea that capabilities are cumulatively gained. By incorporating an argument built on the strategy literature on BMs and Dynamic Capabilities, we assert that lean and agile firms have evolved to underpin different kinds of competitive advantage within the same industry, but these advantages are placed at different tiers in the automotive supply chain.     

合伙人团队特征对契约治理与企业成长关系的调节作用研究

基于高阶理论和新制度经济学交易成本理论,通过对313个合伙人团队的问卷调研,分析了合伙人团队特征在合伙人团队契约治理影响企业成长过程中的调节作用。研究结果表明,在合伙人团队规模、受教育程度异质性以及职能和产业经验异质性较大的企业,合伙人团队契约治理越明确和周详,企业成长绩效更好;在合伙人团队规模、职能和产业经验异质性较大的企业,当合伙人团队存在绝对控股权安排时,企业成长绩效更好。但合伙人团队先前网络关系的强弱对契约治理的调节作用不明显;合伙人团队受教育程度异质性对绝对控股权安排的调节作用不明显。     

Knowledge modelling for contract disputes and change control

The construction industry involves many participants with different perspectives and requirements. Contracts can provide significant value, and yet ineffective contract management frequently leads to disputes. In practice, contracts are hardly reviewed, and contract management is limited. This study aims to investigate how firms can improve their internal processes relating to knowledge management (KM) through effective contract management to aid construction practitioners in managing contract disputes and changes. Using a questionnaire survey and a workshop involving experienced industry practitioners and researchers, the findings reveal that project- and individual-level implementation of KM processes is stronger than at the organizational level, and also there are substantial human resources (HR) practices that support contractual KM. Workshop participants believe efficient and effective KM can minimise losses from contract changes and disputes. A construction contract management process framework, a 19-step benchmarking model for contract management and a construction planning checklist for contractors are proposed.     

Adapting a Lean Production Program to National Institutions in Latin America: Danone in Argentina and Brazil

This article argues that national institutions identified in the varieties of capitalism approach have a significant impact on the degree of fidelity and extensiveness of best practices adapted by geocentric multinational corporations in host countries in emerging markets. To illustrate this argument it shows how differences in national institutions between Brazil and Argentina caused Danone to adapt a lean production in radically different ways in each of these countries. Both of the programs implemented had low degrees of fidelity and extensiveness to the original best practice. This article contends that in Argentina strong labor laws and the ability of unions to negotiate significant salary increases combined with a desire of workers to have individual pride in their jobs caused Danone to empower them individually instead of creating teams as foreseen in this company's original lean production program. In Brazil the weakness of unions combined with labor laws that promote employee turnover and the desire of workers to improve their salaries caused this company neither to empower workers nor create teams. Instead, it motivated workers by providing them the previously unavailable opportunity to become a manager.