6th October 2008
A Guide to Change - Knowledge Resources

A Guide to Change

Approaches to Workplace Innovation: Workplace Partnership

What is Workplace Partnership?

Partnership is an active relationship between all employees within an organisation which recognises that there is a shared goal in securing competitiveness for the continuation and prosperity of an organisation and therefore the people within it.

It requires commitment to improving quality and efficiency and an acceptance that employees are stakeholders with rights and interests to be considered in the context of major decisions affecting their employment. It involves common ownership of the resolution of challenges involving the direct participation of employees / representatives and an investment in their training, development and working environment.

(Partnership 2000, National Social Partner Agreement)

Why should you consider it?

Involving fellow employees in deciding how work is to be carried provides ownership in making change happen. This in turn provides greater success when implementing a change programme as employees are more likely to buy in to the whole process. As an employer it also shows your commitment to them.

What are the key factors in adopting a partnership approach?

There are many ways of building partnership. Formal approaches may be inappropriate where there is already a history of employee involvement, as can be seen in the case at Emhart Fastenings below, or partnership may be a founding principle of the business from the outset, as can be seen in the case of Delphi. If the philosophy does not already exist then a long programme of culture change needs to be undertaken. To see how companies have gone about this process, take a look at the following case studies in some more detail.

Challenges and Responses

Responses to some of the main challenges to establishing workplace partnership include:

Setbacks and the Effects of Redundancies
  • Blue Circle Cement
    The fallout from large-scale job redundancies has set back progress. Some employees saw the redundancies as an act of betrayal. A no compulsory redundancy policy has subsequently been agreed. This may alleviate current fears, but uncertainty remains.
  • HP Bulmer
    New structures helped to transform Bulmer, but improvements have led to job losses. Good working relationships appear to have been maintained, despite the redundancies.
The Stress of Change
  • Legal & General
    The company anticipated potential stress on employees, due to perceived lack of control and company imposed solutions. Widespread consultation got people actively involved in the change process. This included consulting with the unions at every stage of the change process.

Examples of workplace partnership

  • EMHART FASTENING TEKNOLOGIES
    Emhart is the market leader in the manufacture of mechanical fastening systems for the automotive, construction and general industry. Emhart has been adapting its working practices since the 1980s, and a renewed initiative was launched in the 1990s. 'Wish-lists' from management and unions were drawn up, after joint discussions took place on how best to further workforce flexibility and self-directed work teams. The new partnership initiative that was agreed does not formally commit either party to enter into a binding partnership with the other. Representatives from both sides believed that such a declaration was unnecessary, in view of the strong personal and cultural bonds that have been established and maintained since the late 1980s. Moreover, such a formal announcement "would run against the spirit of the trust we have built up." It is felt that a formal partnership agreement would tie hands, rather than hearts and minds.
  • DELPHI, FRANCE
    Delphi is a spare parts and motor vehicle components subsidiary of General Motors. The plant, part of the batteries division, opened in 1980. The product manufactured is technologically advanced. The factory is described as a 'social laboratory'. Participative management has been a fundamental principle from the plantâs inception. Teams, which function at every level, are the means of achieving individual and collective responsibility for quality, reaching production targets, training, co-ordination within and among groups and preserving group unity. The plant's trade union was involved in the experiment from the start. There has been no serious conflict in the history of the plant because dialogue is actively pursued. It is pointed out in the case study that these progressive social relations existed long before current aspirations to work in this way. The union secretary of the Workers' Committee believes that participation remains genuine. There are future problems emerging in this plant, particularly around issues of ageing in a highly stable workforce and too strong a tendency to homogeneity that could affect innovation through a lack of new blood.
  • FINCO
    Finco provides technical support services to the banking and finance sector. The business had previously enjoyed secure markets until technological obsolescence diminished its competitive advantage. The company culture had to become customer focused. The business was consequently forced to increase efficiency and to cut costs. Large-scale investment in information technology was accompanied by restructuring and redundancies. Managementâs approach to the redundancies was forthright. Staff were warned and prepared. They were kept informed and obvious attempts were made to mitigate the effects of redundancy, through re-training and redeployment where possible. Staff response indicated that this candidness was appreciated, and attitudes to the culture change remained largely positive.
  • DUTTON ENGINEERING
    Faced with the threat of having to lay off staff, the managing director of this small manufacturing enterprise called the workforce together and told them the situation. They requested time to discuss among themselves what should happen. Rather than have to make redundancies, the workforce suggested that they should all take a 10% cut in pay until the financial position of the business recovered. The managing director honoured this decision by taking a 20% cut.
  • BLUE CIRCLE CEMENT
    This company used to be highly traditional. Major changes to the culture began when the need to restore competitiveness became critical. Integrated Working was introduced. The cornerstone of this was a Stable Income Plan, based on flexible working, annual hours and no overtime. Unions initially felt that that they had no option but to comply, and a series of one-day strikes were held to prevent 'Integrated Working' being introduced. Since that time, an updated agreement, the Way Ahead, has been developed. The working atmosphere has been transformed; barriers have come down and there is striving towards mutual goals. Unions are viewed as highly constructive and have been instrumental in changing the culture at Blue Circle Cement. Problems remain but there is universal acknowledgement that the new work methods, based on vastly increased employee involvement in how work is carried out, are preferable to the old ways.
  • TRUMPF
    Trumpf is a highly innovative company. Its success at the forefront of developing laser technology for application in sheet metal cutting is an outcome of close collaboration with specialists inside and outside
    the organisation. Creativity in problem solving depends on the ability of the specialists to question assumptions and to put themselves in othersâ shoes. The approach requires open-minded attitudes, social competence, and good working conditions.

Key Learning Points

  • Successful partnership requires pursuit of mutual understanding among different perspectives and viewpoints. This does not mean that everyone has to think the same. Innovation arises out of creative conflict. See the Trumpf case study above.
  • Partnership develops over time and is critical if there are to be real changes in attitudes and behaviour, as in Blue Circle Cement.
  • The partnership approach to working relationships requires trust, honesty and openness from all involved. This is particularly true when negative changes are forced on an organization, as in the case of Finco and Dutton Engineering.