The New World of Work

New social and market environments, advances in technology and changing skills and competency needs means that the old model of work organisation is no longer able to deliver value. 

“Organisations will need to meet the challenges of competition in the new global economy if they are to be successful in the 21st century. This requires them to focus on their ability to do things differently and in ways that cannot easily be imitated by competitors. Products and services will need continuously to be re-engineered or re-invented to retain customers or capture new markets. Command and control organisational structures and cultures cannot deliver this; nor can the dehumanising and stressful working methods of mass production common in all parts of the world for the past century.” (UK Work Organisation Network) [1]

The European Agency for health and safety at work in its research into the changing world of work identified a number of trends in the organisation of work:

• The rising importance of team work
• The implementation of integrated management systems
• The decentralisation of responsibilities
• Knowledge intensity of products and services (need for higher educational level in workers to deal with more complex tasks)
• Telework and virtual companies

In the changing business environment successful organisations in both the public and private sector will need to be flexible. Equality programmes, which allow new ways of working, can deliver direct benefits by providing flexibility for the organisation as well as the employees.

Over a quarter of employees now work part time and over a fifth of those working full time had some kind of flexible working arrangement[2].   Organisations that can embrace these changes and take advantage of individuals’ desires to work in new ways will have the competitive edge. Not only will they be in a position to attract highly skilled employees who do not wish to adhere to traditional working patterns but also they will be able to provide the greater flexibility demanded by customers. These organisations will be agile and able to move quickly into new activities and markets. They will be able to make maximum use of the benefits of technology, accommodate the new 24 hour society and adjust workflow to peaks and troughs in demand.

As technology allows individuals and organisations more choice over where and when they work some organisations are questioning long held assumptions about the office.  Reducing physical office space by flexible working, basing individuals from home and introducing “hot desking” can bring immediate financial savings to an organisation as well as benefits to individual employees’ work life balance.

• Reduction in Centrica’s need for office space in London as a result of its flexible working programme has saved £8 million a year.
• BT estimates that its 11,600 home workers save it €104 million a year in accommodation costs (they are also 20% more productive that their office based co workers)

However it presents management challenges as well.  Managers need the skills to communicate with and manage a geographically distant team.  Commitment, trust and respect on both sides are a prerequisite for successful flexible working programmes.  Effective diversity management skills are an essential foundation for these new ways of management.

Environmental impact

Pressure on transport systems will have a growing impact on the way we work as has the pressure on organisations to recognise their environmental impact and move towards a “carbon neutral” workplace. 

• BT estimates that its flexible working programme has reduced its CO2 emissions by 54,000 tonnes a year.

Flexible working and home working have already been recognised as an important factors driving transport policy in the future. 

Example of action:  BT

Information technology is one of the biggest drivers for change at work today.  It presents huge opportunities to improve the way organisations manage knowledge, work and human resources but is also presenting new problems and stresses which will need to be managed

Technology allows us far greater flexibility over where and when we work, yet its influence on organisations extends further.  Control and flow of information has always been one of the key processes within organisations.  Innovation in organisations relies on smart networks and the ability to collect and circulate knowledge quickly.   Technology has revolutionised these processes.

“Technology has the capability to transform organisations.   By reducing the costs of communication, these technologies now make it possible for many more people, even in huge organizations, to have the information they need to make decisions for themselves, instead of just following orders from above. And so, for the first time in human history, we now can have the best of both worlds—the economic and scale efficiencies of large organizations, and the human benefits of small ones: freedom, motivation, creativity, and flexibility” ( Thomas W. Malone: Patrick J. McGovern Professor of Information Systems, MIT Sloan School of Management[3])

The Work Foundation research[4] also recognised the importance of information flow and communication, which it found was one of the characteristics of a high performing organisation.

“They have a higher degree of informality and continued dialogue supported by simple – though not simplistic – processes that allow faster decision-making. They openly share information between peers and networks of managers that need timely and accurate information in order to get the best job done “

Realising the benefits of technology in this way requires a new model of leadership and management moving from the “command and control “model to “coordinate and cultivate”.   This requires organisations to empower and trust employees to a significantly greater degree than in the past.  With this greater freedom and flexibility in organisations will come a greater emphasis on values.  

“Because we have more choices in this new world of work we will be able to bring a broader range of our values, not just the economic ones into our thinking about business… That means companies will increasingly need to compete for workers, investors, and customers, not just in the marketplace for products and prices, but also in the marketplace for values.” (Thomas W Malone Ibid)

This in turn means that organisations need to give considerable thought to the motivation and development of their workforce at all levels.  Diversity will be an important tool for employers in this regard, both in terms of increasing motivation and commitments and in terms of adding value through the multifarious perspectives and experiences that a diverse workforce brings. 

Getting this right will bring enormous benefits for organisations as technology has the capacity to revolutionise the way that employees use the information and communication tool to create value.

'"Now more than ever, competitive advantage comes from the ability to transform ideas into value -- through process innovation, strategic insights and customized services. We are evolving toward a diverse yet unified global market, with customers, partners and suppliers that work together across cultures and continents. The global workforce is always on and always connected -- requiring new tools to help people organize and prioritize their work and personal lives. “(Bill Gates 2005)

However, the Information Technology revolution has also brought a new set of challenges.  To harness the benefits of technology employers will need to manage downsides as well. Even if the global workforce is “always on and always connected” individuals should not be.  Whilst technology allows greater freedom for when and where we work and a new organisational model allowing us greater autonomy and creativity, it also has the capacity to extend the working day and blur the boundaries between work and home life. 

This has sharpened the debate on work life balance.  Without a robust commitment to work life balance as part of an effective people management programme, the positive impact of technology could be reduced.   Innovation and strategic insights will be lost in a deluge of information, constant demands on attention, new skills to master and pressure to be ever more productive.

“Information overload is becoming a serious drag on productivity -- the typical information worker in North America gets 10 times as much e-mail as in 1997, and that number continues to increase. A recent study showed that 56 percent of workers are overwhelmed by multiple simultaneous projects and interrupted too often; one-third say that multi-tasking and distractions are keeping them from stepping back to process and reflect on the work they're doing. In the United Kingdom, it's estimated that stress accounts for nearly one-third of absenteeism and sick leave.” (Bill Gates 2005)

If we deal with this overload by working longer and longer hours and allowing work to impinge further and further into our home lives then we will have neither the energy nor the mental and physical space for reflection required for strategic and creative thought. Effective information management and effective work life balance policies are essential to realising the benefit rather than the downsides of technology.