High Performance Workplace

REPORT OF UK PRESIDENCY CONFERENCE

High Performance Workplaces – because people mean business

The DTI drives our ambition of ‘prosperity for all’ by working to create the best environment for business success in the UK. We help people and companies become more productive by promoting enterprise, innovation and creativity. We champion UK business at home and abroad. We invest heavily in world-class science and technology. We protect the rights of working people and consumers. And we stand up for fair and open markets in the UK, Europe and the world.

High Performance Workplaces – because people mean business

Report of UK Presidency conference

High Performance Workplaces because people mean business

15th September 2005, Hilton Paddington Hotel, London

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High Performance Workplaces – because people mean business

Contents A. Executive summary............................................................................................................ 6 B. Background to the conference and European context ................................8 C. High Performance Workplaces - a definition ...................................................10 D. High performance workplaces in Europe ..........................................................11 E. High performance workplaces and the global economy ..........................13 F. The highs and lows of high performance working the UK experience............................................................................................................. 15 G. High performance in practice - case study companies.............................17 H. Workshops: Improving elements of high performance practice ....................................................................................20 1. Raising standards in the workplace .......................................................................20 2. The function of HR practices and skills in creating high performance workplaces ...........................................................22 3. High performance workplaces and the research community.....................25

I. Conference conclusions and key outcomes ......................................................28 Annexes Annex 1: Speaker and Facilitator Biographies .................................................30 Annex 2: Further information and useful resources....................................41

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A. Executive summary This conference was hosted by the UK Presidency, and was co-funded by the European Commission. It was held on 15th September 2005 at the Hilton Paddington, London. The focus of this conference was how government policy makers and formers, trade unions and businesses and the academic community can work together to maximise potential in the workplace. The conference started from the basis that the greatest asset that any business has is its people. This event was designed to examine how businesses can get the most out of the staff that they employ, for the benefit of both employers and employees. Speakers at the conference looked at a variety of issues surrounding HPWs, from definitions of high performance work practices to the business case for implementing these practices in human resource policies. Representatives of four companies drawn from across the EU gave brief presentations about how their organisations have adopted high performance work practices and the benefits that these have brought to both the company and its workers. These firms represented different sizes and sectors, but each of them demonstrated a high degree of success combined with a loyal and committed workforce and a real sense of a company culture. Different approaches to good people management were discussed, ranging from the involvement of employees in decision making and the role of trade unions, to innovative work organisation and reward initiatives such as individual bonus schemes for talented and hard-working employees. Afternoon workshop sessions of the conference looked at three key areas: 1. Raising standards in the workplace - quality of work, innovative work organisation, reward and commitment and employee involvement practices; 2. Human resource management - raising skills and encouraging lifelong learning, active promotion of equality and diversity in the organisation, the role of community involvement; 3. The role of the research community - what academics can do to encourage the development and adoption of high performance work practices. 6

High Performance Workplaces – because people mean business

Each workshop generated very positive and wide-ranging debate that the facilitators report back to the Conference. It was clear that there was considerable agreement on the benefits of good workplace practice - with particular emphasis on the importance of high levels of employee involvement, innovative work organisation and on training and the development of skills. A clear link was seen between improved quality of work and improved performance. The role and contribution of trade unions was also a common theme - and more broadly recognition that all stakeholders have a contribution to taking forward this agenda and need to work in partnership. But there was also recognition of challenges - not only in promoting a culture of change but also in concerns that the risk of badly constructed and implemented policies over emphasising performance and achievement could have a negative effect. On types of organisation there was some discussion about how to encourage smaller firms to develop high performance work practices and the benefits to the public sector of taking the HPW approach. It was clear from all sessions that those involved, from business, trade unions, governments and the research community were focussed on the same goals, but would welcome new ways to share best practice with each other and to enhance cooperation. Good examples of work done at national level had been identified in workshops, such as initiatives promoted by the Hungarian government to promote family friendly working practices within companies, or the creation of a training game in Belgium to encourage trade unions to develop policies on skills and lifelong workers. But it was felt that something was needed to pull this knowledge and experience together at a pan-European level. The European Commission undertook to look at taking this issue forward by examining the idea of a web-based guide to high performance practices to promote best practice between Member States. This could be collated through the existing European research networks, and would act as a practical guide to developing HPWs. This would be useful for European policymakers, social partners and academics alike.

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B. Background to the conference and European context This conference was designed to follow up work done under the Irish Presidency on Adaptability and Adjustment to Change in the Workplace. The Irish conference held in February 2004 agreed on a number of key areas of good practice and identified areas for further work: at the microeconomic level, strong partnerships between unions and businesses were shown to provide a good framework for change management within an organisation, and businesses were urged to respond to employees’ needs for flexible working patterns. At the macroeconomic level, it was pointed out that there were too often tensions between the social and the competitiveness agendas, when it was possible to achieve useful progress in both areas through harmonisation of policies and a more cooperative approach. The conference conclusions showed that a more pragmatic approach was required to facilitate cooperation between trade unions, businesses and government policy makers. The aim of the UK Presidency conference was to translate some of these themes into the context of people management, and work towards a practical understanding of how high performance work practices can improve a company’s economic performance and productivity. The greatest expenditure on any business’ balance sheet is usually dedicated to its people - via expenditure on salaries, human resource management, training and development. It therefore makes good business sense to maximise the benefits of this investment by maximising potential in the workplace. Although the pursuit of high performance goals is primarily a matter for companies themselves, it is not just in the hands of managers and business leaders. Employees and trade unions also have a large part to play. It is also in the interests of national governments and Europe as a whole to promote and encourage the use of high performance work practices in order to boost productivity and make European business more competitive in a global environment. The recent mid-term review of the Kok report on progress towards the goal set by the Lisbon Agenda of achieving full and high quality employment by 2010 highlighted the need for firms to innovate, expand and keep pace with rapid developments in the field of technology. To enable businesses to do this, a number of crucial factors must be in place at both national and European levels: L A supportive macroeconomic climate that allows businesses to grow and develop

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High Performance Workplaces – because people mean business

L A regulatory framework that allows flexibility for labour markets but also guarantees good minimum standards of protection for workers L Effective communication between government policy makers and formers, trade unions and business representatives. The conference began with opening speeches by Bill Callaghan (Chairman, Health and Safety Executive), Gerry Sutcliffe (Minister, Department of Trade and Industry) and Vladimir Sˆpidla (Commissioner, European Commission). All agreed that HPWs are crucial to all Member States within Europe, as they help to drive forward innovation and growth, as well as creating good quality jobs where workers are well trained and highly motivated. Commissioner Spidla pointed out that HPWs were a crucial instrument in overcoming the challenges of demography and an ageing population, as these companies encourage innovation, competitiveness and enhanced productivity. Gerry Sutcliffe stressed that HPWs were good employers as well as successful businesses - by taking account of the diversity of workers, ensuring adequate training provision and offering a good balance of work with family commitments, HPWs were likely to retain staff for longer. Speakers agreed that in a dynamic, knowledge-based economy, people no longer expect to have one job or even one career for life. The expectation of today’s employees is that firms will give them the opportunity to develop skills that can be used in areas outside their day-to-day activities, and that firms will offer flexibility so employees can balance work and family commitments. Smarter working, as opposed to harder working, is what will help to close the productivity gap, and there was a consensus that business, unions and governments need to take a partnership approach to achieve this.

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C. High Performance Workplaces - a definition Dr Ed Lawler (Center for Effective Organisation, University of Southern California) introduced the second session of the conference by providing a very helpful definition of high performance working. Although the term “high performance workplaces” is commonly assumed to be an Anglo-American concept, much of the foundation work originally took place in Europe. Early research by the Tavistock Institute in London looked at firms which had managed to achieve high performance and meet the needs of their employees. The microeconomic principle of balancing economic and financial successes with the well-being of workers is still valid today, but it has become more of a challenge to do this in a fiercely competitive global environment. In the old economy, a competitive edge could be gained through acquisition of capital and physical assets at a lower cost, and this is how many low wage economies outside Europe managed to increase their market share and squeeze the profits of their European counterparts. However, today’s economy is driven by different economic factors, such as knowledge, innovation, technology and human capital. Organising and managing people in such a way as to increase skills at both the higher and lower levels of the organisation will bring about competitive advantage for firms. Recruiting people who share the organisation’s values and have core competencies is essential in this process, but so are ongoing training and development schemes. Strong leadership is critical within an organisation to create vision; HPWs also strive to create a distinct and clearly defined workplace culture with core goals and values that are understood by all members of staff. These goals should also be supported by reward schemes for employees - it has been shown that workers with an economic stake in the organisation perform better and are consistently more productive.

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High Performance Workplaces – because people mean business

D. High performance workplaces in Europe Dr Enrique Fernandez Macias (European Foundation, Dublin) then took the floor to explain how workplace practices are changing across Europe. He reiterated Dr Lawler’s point that the research on and debates surrounding high performance practices have been around since the 1970s, but added that in Europe the focus has been mostly on skills in the workplace rather than systems of work organisation. According to Dr Fernandez Macias, the core model of workplace organisation in Europe traditionally incorporates a very high degree of employee participation and involvement in the decision making process. This is also embedded in the legislative framework of the European Union, with statutory systems of employee representation. Recent initiatives such as the Information and Consultation Directive (2002) have aimed to strengthen this framework further and encourage direct involvement by workers. This has been most successful when social partners and governments work together. The different political and economic systems and labour markets across Europe mean that whilst it is possible to identify key underlying principles, there are important differences between member states that make it hard to pin down a typical European high performance model. Scandinavian countries and the Netherlands come closest to the “classic” high performance workplace system, as they feature a high degree of employee participation in decision-making processes and a high level of productivity. Central European countries usually have very highly skilled workers due to excellent educational systems, and have strong formal employee representation systems, but labour markets may not be sufficiently adaptable to help drive forward innovation. Southern European countries often do not demonstrate high performance work systems, and the focus in these member states has often been on creating jobs rather than improving productivity or quality of work. Data is only just emerging from the ten newest member states, but there are promising signals that their low cost capital is combined with a highly skilled workforce, which gives these countries significant competitive advantage. Despite an obviously disparate approach to labour market systems, skills training and employee representation, Dr Fernandez Macias concluded that the challenge for Europe still lies in creating more jobs. Creating employment is most easily done by creating more low skilled jobs. However, this poses risks both to the high performance model and to long-term growth: the only way for European businesses to remain competitive against low cost rivals in India and China is to show leadership and powerful innovation. REPORT OF UK PRESIDENCY CONFERENCE

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Successful business strategies require a supportive economic environment, and governments and trade unions alike play a part in this. Governments need to ensure a solid system of social protection for workers and invest in good educational systems to boost skills of future and existing workers. Trade unions must recognise that change is an inherent part of growth and innovation, and must be open to changes in the workplace to meet the demands of competitiveness. The challenge of unemployment is one faced by all social partners, and a new social pact is the best way to address it.

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High Performance Workplaces – because people mean business

E. High performance workplaces and the global economy The productivity gap and falling competitiveness of Europe were themes also addressed by Will Hutton (Work Foundation) who presented the global need for high performance practices in the light of his recent visits to China and Hong Kong. There can be no doubt that China is fast becoming the world’s biggest exporter: manufacturing is driven by imported technologies and hightech manufacturing plants, and there is an estimated 30% growth per annum. However, these statistics are only part of the overall picture. China and India lack institutional structures to support business, and there is a notable lack of Chinese and Indian brands in the global market. Labour productivity may be on the increase in these countries, but workers are not encouraged to innovate or show independent thinking, which is a dangerous trend in an increasingly knowledge-driven economy. In India traditional prejudices based on the caste system exclude many people from entering the workplace. By contrast, European countries have some considerable strengths that are often undervalued in global comparisons: for example, output in France, Germany, Scandinavia and northern Italy is often higher than in the US. If globalisation continues, then the West cannot compete with cheaper Asian labour costs and capital costs. Productivity needs to be addressed: Europeans work fewer hours per week than the average Japanese worker, and the drop in labour hours must be stabilised. However, Europe’s strength lie in its flexibility and soft institutional structure, which must not be jeopardised by either over-protection of workers or an excessive insistence on market solutions. The academic systems in Europe need to be strengthened so that universities in particular can regain their former status as world-class centres of excellence in learning and innovation. Most of all, Will Hutton argued, governments and social partners must focus on the institutions of employee engagement that generate trust and effective leadership, corporate governance and sustainability. Panel debate from this session focussed on how to bring high performance practice to low skill sectors. It was agreed that a high level of knowledge supports an increasingly service-driven economy, making training and education essential for all employees. Customer responsiveness can only be properly addressed by businesses if their workers have an understanding of customer needs, and this is easily delivered through apprenticeships in customer-orientated departments. Soft skill training was considered

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invaluable for long-term development of the workforce, as the economic trend towards a decline in manufacturing and an increase in the tertiary sector means that low and high-skilled workers may need to change careers several times in the course of their working lives. The question of innovation also arose, and it was argued that innovation in the workplace should not be separated from research and development: both technical production methods and workplace organisation must respond well to change if firms are to remain competitive.

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High Performance Workplaces – because people mean business

F. The highs and lows of high performance working the UK experience Stephen Bevan (Work Foundation) then addressed the conference to launch a new research report into people management, People Strategy and Performance. The Department of Trade and Industry had supported this project in order to find out what differentiates high performing firms from lower performance companies, and how policymakers and social partners can help the lowest performers to improve. Three thousand UK firms of different sizes and sectors were surveyed to look at five crucial areas relating to the performance of any company: 1. Human resource practices 2. Creativity and innovation 3. Customers and markets 4. Stakeholder management 5. Shareholders and governance The results of this survey generated a performance index by which the companies could be ranked. Firms higher up the index showed stronger financial growth, more value added per employee and a higher rate of profitability. The highest and lowest performing companies were then investigated in more detail to find out what common characteristics were shared by firms in each subset. In the high performing group of companies: L processes were kept as simple as possible; L lines of leadership and management were clear; L there was evidence of clear communication between management and workers; L firms empowered employees to initiate changes, which was an important driver of innovation; L a distinct workplace culture could be identified; L there was little fear of change - employees even became nervous when there had not been changes for a while.

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By contrast, in the lowest performing companies: L there was too much focus on organisational structure and bureaucratic processes; L customer satisfaction or end products did not affect work organisation to the same degree; L firms were often inefficient and unresponsive to changing demand; L the status quo was invariably preferred over suggestions of change in these workplaces; L outputs were analysed in almost exclusively short-term, financial terms; L there was little or no sign of strategic planning for future needs of the organisation or its customers. The report concluded that government also has a role to play in the development of high performance working systems. Policymakers should actively work to encourage investment in innovation, R&D, knowledge and people, as well as providing the macroeconomic conditions for business success. Just as trust is important at enterprise level between employees and managers, so trust between governments and the agents of business reform business representatives and trade unions - is essential for the development of high performance workplaces both in the UK and beyond.

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High Performance Workplaces – because people mean business

G. High performance in practice case study companies Four companies then gave brief presentations on how they had become high performance workplaces, and what the benefits of good people management have brought back to the organisation. Rachel Dobson (Pannone & Partners, a UK law firm) spoke about how the company had managed to cut down on long hours working, a traditional problem in law firms, through flexibility and clearly defined working hours for different levels of seniority in the organisation to avoid people doing unnecessary “face time” at the office. She also spoke of the innovative use that Pannone has made of reward practices, with an active company social life organised at staff level, days off for Christmas shopping and half day working on people’s birthdays. There is a policy of developing and training all staff - study leave is granted for external qualifications, and the firm offers financial support to complete a course of study when this is required. László Virág (Ferinfo Dunaferr, a Hungarian manufacturing company) stressed that although the workforce at Ferinfo enjoys the protection of collective bargaining agreements to set working and pay conditions, there are a number of other measures in place to ensure a strong workplace culture and good communication between staff and managers. Salaries are supplemented by generous fringe benefit packages which are particularly advantageous in the Hungarian tax system. A large number of people who work at Ferinfo live in the surrounding area, so corporate recreation programmes and also several essential services are provided to employees and their families, such as financial support to buy a house, assistance with paying for a summer holiday during school holidays and an emergency fund for employees who face an unexpected crisis. There is a high level of support for employees on maternity leave, with training provided to assist reintegration into the workplace, and provision of regular reunions for retired employees. Neil Henderson (St Luke’s, a UK media and advertising agency) also emphasised the importance of a focus on the individual as well as the company in developing a high performance workplace. At St Luke’s, employees are all owners of the firm as they all hold shares: there are no external shareholders. Teams are designed around specific projects, rather than by hierarchy, so junior members of staff may be sitting next to directors. This has proved useful in allowing people to learn more about problems and successes at all levels of the project, which improves planning of future projects. Staff also feel involved in the decision making process as they can voice ideas or concerns to management much more easily. Training is provided in a number of innovative ways: every member of staff is given a REPORT OF UK PRESIDENCY CONFERENCE

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£150 (g200) learning fund dedicated to “making yourself more interesting” it is used on a course to learn something unrelated to work, or to develop a new hobby outside work. Employees are also selected to go on budget airline mini trips to eastern Europe, where their project is to learn about the country and report back when they return. This fosters a “curious culture” and develops creative thinking and innovation. Hans Bogaert (Volvo Cars Gent, Belgium) looked at the role of employment relations in building a high performance workplace, and how bringing worker representatives to board level decisions improved the performance of the whole company, as increased responsibility boosts motivation. There are several working groups within Volvo Gent to decide issues such as job classification, and many groups on the production line are self-managed without intervention from senior staff. A move from individual workers being assigned to individual tasks to a task-based team operation was successful, but running this system is expensive as fortnightly team meetings involve stopping the factory for 90 minutes. However, clear financial benefits have ensued from this and other changes due to useful suggestions for improvement which have been made by the workers themselves. It also ensures that managers have the opportunity to keep their staff informed of any changes within the organisation. A policy of job rotation has improved motivation and allowed the production line to keep running even when staff are on sick leave, as others have learned how to do their jobs so production can continue with reduced staff levels. Quality of production has actually improved since this change, and workers appreciate the resultant even distribution of heavy and light tasks. Further learning opportunities have been developed in order to make each individual operator more aware of the strategic dimensions of Volvo and the firm’s long and short-term needs.

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High Performance Workplaces – because people mean business

Conclusions from the morning session: Although it is clear that these firms all took very different approaches to high performance working methods, many of the benefits for the company that they described were remarkably similar: L All reported increased motivation and productivity, as employees felt more involved in decision making and work design; L Concerns about job security were diminished, as employees were kept informed of changes within the organisation - enabling them to concentrate on their own work; L Several presenters described the financial gains: St Luke’s reported that some members of staff had chosen to work there despite offers from similar agencies offering higher salaries; L Absenteeism (due to illness, stress and other factors) was much less of a problem, as employees were proud to work in those companies and enjoyed the work environment; L The firms’ reputation was often enhanced: Pannone & Partners’ clients are always pleased to see that they are dealing with the same people, as the company retains staff more easily than many of its competitors; L An enhanced reputation also helped to cut recruitment costs and encourage more able and highly trained people to apply to the organisations.

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H. Workshops: Improving elements of high performance practice The afternoon session of the conference began with three workshops on different elements of high performance working. Each workshop looked at current initiatives active within Member States, problems encountered, and what could be done to improve in those particular areas.

H1. Raising standards in the workplace Workshop 1, facilitated by Lucy Fallon-Byrne (National Centre for Partnership and Performance, Ireland) looked at: L Raising standards in the workplace through employee involvement L Quality of work and innovative work organisation (including flexible working and family friendly policies) L Innovative reward and commitment practices. Lucy Fallon-Byrne began with the question of how to improve innovation in the workplace in order to maximise the potential of the workforce. Ireland is looking at ways to do this, and there has been useful data arising from the new work on information and consultation practices. Guido Vanderseypen (European Commission) then spoke of the benchmarking and monitoring process at European level on quality of work. European policymakers have developed a multi-dimensional concept of quality, the elements of which are directly related to productivity, access to employment and flexibility, all key issues of the Lisbon agenda for growth, jobs and competitiveness. He reviewed a number of them and concluded that there were encouraging developments. There are signs that the declining trend in productivity growth in Europe is being reversed, while at the same time the accident rate is falling. The labour market is becoming more diverse, at least in respect of the employment rate of older workers which is now clearly picking up, whereas there remain clear barriers for women and migrants. Finally, the high share of flexible contracts does not clearly seem to affect overall job satisfaction. The importance of a gender balance in the economically active population was a theme also highlighted by Benoît Brunet (MEDEF/Peugeot Citroën, France): work-life balance is embedded in legislation in France, but it is very hard to ensure that it happens in practice, especially for working parents. 20

High Performance Workplaces – because people mean business

Some employers are still reluctant to employ a woman with young children, and “career women” often fear that they will be professionally disadvantaged if they have children. Government intervention in an individual’s private life is sometimes necessary: new legislation is underway in France to legislate against discrimination based on domestic circumstances. There are also ongoing measures to ensure that women are not disadvantaged in the workplace by lack of training or skills, and that they receive proper support during periods of maternity leave. An appropriate level of government intervention was also considered important by Dr Agnes Simonyi (Hungarian Labour Ministry). Dr Simonyi spoke about the problem of assuring high performance and quality in work in a country that had until recently been used to full employment through low performance workplaces. The Hungarian government is committed not only to create more, but also better jobs and it has been looking at ways to raise awareness of CSR practices in companies. It has also encouraged the implementation of family friendly working policies in firms via a national employer awards scheme which has proved very successful. Organisations are more likely to receive the award - and a great deal of positive publicity - if they can demonstrate that family friendly working has led to an increase in productivity. Not all participants in this competition are businesses: municipal offices, hospitals and even prisons take part as well! Programs supported by the European Social Fund are also dedicated to create more family friendly jobs in Hungary. Jane Bird (Acas, UK) outlined the Acas Model Workplace, a series of guidelines that Acas has drawn up based on its expertise of dispute resolution in the workplace. The plain English guidelines and “health checks” aim to prevent disputes by encouraging good health and safety procedures, clarity of job design, fair pay and reward schemes that take account of diversity. It has been designed for businesses of all sizes and sectors.

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Paul Talbot (Amicus Union) also stressed the value of avoiding conflict through consultation: the quality of a decision can only be improved by extra testing with and consultation of the people it will most affect. He also pointed out the need for managerial levels to sign up to information and consultation practices, otherwise they can never be fully implemented across an organisation. Discussion drew out the following themes and suggestions for further work by governments and social partners: L Information and consultation are very helpful for motivation and work organisation - but there are some concerns that businesses may be doing the minimum to ensure compliance, and trade union fears that it impacts upon collective bargaining systems. There were calls for stronger cooperation at national level between business representatives and unions - problems and fears need to be set out clearly and overcome. The implementation at shop floor level needs to be monitored carefully to identify problem areas; L Good management of health and safety is crucial to high performance workplaces to boost productivity and reduce the number of working days lost to illness through stress. Consultation has been shown to reduce stress, and this approach is valuable; L Dissemination of good practice does not always reach SMEs - need for professional intermediary organisations to target this group of employers; L Public sector participation - public sector should also look closely at taking a high performance approach to work organisation; L Improved communication between academic community and businesses on work organisation - there are many excellent ideas and models of best practice identified by researchers, but these need to be picked up at a practical level;

H2: The function of HR practices and skills in creating high performance workplaces Workshop 2 was facilitated by Professor Jaap Paauwe (Erasmus University of Rotterdam, Netherlands) and examined the following areas: L Raising levels of education and skills and promotion of lifelong learning L Equality and diversity in the workplace, including participation of older workers and promoting gender equality L Working within the community and the role of corporate social responsibility.

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High Performance Workplaces – because people mean business

Professor Paauwe’s introduction outlined the key challenges for HR managers in high performance workplaces, where there are often demanding targets to be met, customer-orientated change management which may involve rapid decision-making and work organisation by semi-autonomous, multi-skilled teams on specific projects, rather than traditional hierarchies of authority. For these systems to work efficiently, there must be a culture of creativity and learning throughout the organisation which will enable personal development at all levels. Information and communication from the top of the organisation downwards are essential to build trust by workers and avoid insecurity. Several discussants found that there was much yet to be done on the question of bringing older workers into the workforce and tackling the persistent problems of occupational segregation between women and men. Robert Strauss (European Commission) stressed that older workers were a priority for the development of Europe’s economy, and that whilst high performance practices could certainly help to boost the number of economically active older people, it must be remembered that working practices and styles of management which suit younger workers will not necessarily be suitable for older colleagues. Rainer Schmidt-Rudloff (BDA, Germany) provided a helpful outline of how the BDA (Confederation of German Employers Associations) has worked to address this issue by encouraging HR managers e.g. to open up recruitment to older workers or encourage shared learning between older and younger workers. There have been several successful examples of younger workers giving their older colleagues lessons on use of computers and IT equipment, whilst the older workers have valuable skills and career advice to share in return. There are some problems of absenteeism with the older workers in an organisation, so firms should try to ensure a preventive HRM approach by employing a good mixture of older and younger people. Recruitment was one question addressed by this workshop, but retention of workers was also considered. Roman Mesicek (RespAct, Austria) considered that good policies based on principles of Corporate Social Responsibility can also help to motivate staff and encourage them to stay with an organisation for longer. RespAct is a government-supported initiative to award prizes to REPORT OF UK PRESIDENCY CONFERENCE

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firms who have expanded their CSR policies and shown awareness of diversity in the constitution of their workforce. Benefits of participating in the competition include a great deal of publicity and endorsements by global charities, but firms usually see local benefits more quickly: as an example, a small business saw a drop in average days of sick leave from 10 to 4.5 once CSR policies were introduced to the organisation. Jerry Marston (Corporate Citizenship Company, UK) also emphasised the benefit of the skills development that arises from giving workers the opportunity to do some voluntary work during working hours. Employees can gain experience of chairing meetings, organising teams and delegating activities - communication, problem-solving and leadership skills which are certainly useful for the short-term projects but can be invaluable for career development back in the workplace. There was a great deal of evidence to suggest that CSR-orientated firms retained staff for longer and enjoyed lower recruitment costs as potential workers were keen to join an organisation with good “moral values” and responsible business ethics. Another government-backed award scheme came under the spotlight in this workshop as Albertina Jordao (Equality is Quality initiative, Portugal) showed how the Equality is Quality prize has encouraged Portuguese firms to become more gender-neutral, and often to address the question of their CSR policies at the same time, as the jury for the award must bear in mind other issues such as environmental responsibility, compliance with law and health and safety measures. Awards are given to companies who have taken positive steps to improve the gender balance in their organisations and adopt measures to improve quality of employment/work-life balance. Although no financial prizes are awarded, the Equality is Quality endorsement gives valuable publicity to a firm and workers have often been more motivated by the very act of their employers applying for the prestigious award scheme. Consumers are starting to look out for the Equality is Quality backing of products and services, so firms are becoming more determined to succeed in their applications. Jan Franco (ACV-CSC, Belgium) gave an interesting outline of the importance of competency development in the workplace, and the role that trade unions could play in supporting this. Many people are keen to talk about lifelong learning, but there have been few examples of this in action, as there is resistance from both employers and employees. Although trained and multiskilled workers enjoy benefits such as a greater level of employability and the opportunity to change jobs within an organisation and work on areas of 24

High Performance Workplaces – because people mean business

interest, workers are traditionally suspicious of the motives behind training packages. Blue-collar workers in particular have not usually been encouraged to take an interest in further training and development. Employers are sometimes reluctant to invest in training for fear of over-skilling their workers and giving them more opportunities to leave the organisation, which would lead to higher recruitment costs. There are some real risks of training programmes, such as isolation of those who do not “fit” the competencies required to undertake them, or the burden of stress on workers who are struggling to keep up with the training. Moreover, the very ideology of personal development is sometimes seen as posing a threat to the trade union movement and the principle of “equal pay for equal work”. To break down these barriers, a “training game” has been created for Belgian union representatives which aims to display the benefits of training for the workforce, along with a complementary website of case studies where training has been of benefit to both the organisation and its staff. The following themes emerged from the workshop: L Community working schemes were an excellent way for firms to improve the skills of their workforce at relatively low cost, as long as the skills developed were roughly aligned to the training needs of the firm; L Government awards can be extremely effective in encouraging the spread of good practice, but their criteria must be firmly established, objectives should be clear and they must be seen to be fairly judged, preferably with social partners on the jury; L Lifelong learning must be a real commitment by governments, businesses and trade unions - there is a serious need for action in this area, rather than meaningless rhetoric.

H3: High performance workplaces and the research community Workshop 3, facilitated by Professor David Guest (King’s College London, UK) focussed on the research work that has been done on high performance workplace practices and what further work would be useful in this area. Professor Guest began by introducing the topic of high performance in broad terms, starting with the definition of performance - is this measured by productivity, return on assets, profit or share price? He also raised the question of how to ensure that “performance” is not just driven by business needs but also incorporates a high degree of well-being within the workforce that goes beyond minimum standards of protection. It is not yet clear whether

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there is one defined model of high performance practice to follow, or whether very different business strategies can all produce high performance. It is also uncertain whether a widespread use of high performance practices across sectors would cut the degree of competitive advantage for the firms that made use of them. His final question was how academics should “sell” high performance as a concept, and what factors are preventing such an obviously attractive theory from being taken up by more companies. Dr Thomas Zwick (Centre for European Economic Research, Mannheim, Germany) then looked at research conducted on the benefits of high performance workplaces. He found that high performance practice helped to cut unnecessary strands of middle management by giving workers a higher degree of autonomy and responsibility, although financial savings made would be offset by the costs of extra training. When workers are motivated and involved in the workplace, they have a better grasp of the innovation and continual improvement required by business. This in turn has been shown to lead to increased productivity, especially for firms with works councils. Measures of productivity can be problematic, however, as companies sometimes are forced to change their organisational structure during recessions, while they introduce financial participation during boom times. There is also a noticeable time delay between implementation of high performance measures and significant results in terms of profits and productivity. More research needs to be done to determine how long this “lead time” is and whether the results are lasting. Dr Tony Huzzard (National Institute for Working Life, Sweden) gave a brief presentation of the Swedish Innoflex project which examines quality of working life as linked to competitiveness. The project identified two types of organisations: those that use sustainable work practices and invest in development of their people, and those that deploy intensive work systems that treat staff like an expendable resource. It is often difficult to find the right balance between quality of working life and the needs of a firm, but there is a demonstrable positive between both elements so that firms who treat staff well tend also to be more competitive. Dissemination of good practice is vital - peer review between similar institutions was crucial in developing quality of working life systems on the ground, and national conferences were held on the subject where practitioners could discuss their experiences and possible ways to overcome obstacles. Once action plans were identified, learning networks were set up to support implementation and to encourage new developments

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and refinements to existing systems of work organisation. On a wider scale, there is a distinct role at European level for the dissemination of best practice between Member States. Carmen Alpin (DTI, UK) offered a useful summary of the 2004 findings from an employer-employee dataset called WERS (Workplace Employment Relations Survey) which identifies a number of key areas commonly discussed under the ‘high performance’ banner, such as work organisation, recruitment, performance appraisal and employee development, financial incentives and welfare-related practices (including job security guarantees and dispute resolution procedures). The dataset can be used to examine the incidence of HPW practices in British workplaces. She was keen to point out that the 2004 WERS had expanded in scope, with micro firms included in the dataset for the first time, and that new financial performance data was also helping to identify high performance workplaces, which could lead to important future research work in this area. Discussions in this workshop centred on important future areas for research work, such as: L The long-term benefits of high performance: many organisations give up HPW strategies, and the research community needs to look at why this is, what effect it generates and how firms can avoid change fatigue and innovation decay in order to keep HPWs on track. L How can performance be defined and measured in non-financial terms, and how can work organisation be designed around the performance measure? L How can the gap between practitioners and researchers be closed, so that there is useful business support by the academic community, and which intermediary organisations can help to do this? L How does regulation in a sector impact upon its use of high performance practices? L The role of social partners in promoting HPWs - how can national social partners, and trade unions in particular, help to manage employee resistance to high performance working? L Risks of negative consequences of high performance workplaces researchers should not assume that high performance is necessarily a good thing for workers or an organisation, by taking account of potential factors such as the possible link between high performance and stress.

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I. Conference conclusions and key outcomes In her closing address to the conference, Lenia Samuel (Deputy Director General, European Commission) stated that the conference had focussed attention on the clear link between quality of work and productivity, two crucial elements for European workers and businesses. She argued that in a global economy, the key to survival lies in adaptability and flexibility in the labour market. The targets achieved at Lisbon can only be achieved if Europe attracts and retains more people to the workforce, improves productivity and makes a concerted attempt to invest in human capital. The European Employment Strategy was set up to monitor and benchmark quality in work, and several improvements have been noted, particularly with regard to training in the workplace. European productivity is also on the increase, but there is still some way to go before the gap with the US is closed. The question of work-life balance in the EU still needs to be addressed, and the labour market must be made more efficient, flexible and fair. Questions of demographic change in Europe need to be addressed by ensuring that people have the opportunity to have longer working lives, and are happy, motivated and productive at work. Ms Samuel reminded the conference audience of the Kok report’s recommendation that Member States should learn more from each other’s policy experiences in the employment field. She went on to say that the Commission was prepared to support this learning process through the creation of a centralised website that identified good work organisation systems and supporting governmental initiatives across Member States. She further suggested that the Commission might use its existing European Employment Observatory research networks to collate the information required for this website. In his closing remarks, the conference Chair Bill Callaghan noted that businesses, trade unions, governments and the academic community face a number of challenges: L Businesses are constantly competing for skilled staff, and it makes no sense to exclude talented people on the basis of factors that have nothing to do with their competence to do the job. Creativity should be encouraged through innovative work design and an organisational culture that promotes the suggestion of new ideas to management.

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L Trade unions need to address the problem of change in the workplace, and help workers to see the potentially positive benefits of change in boosting not only the firm’s profitability but also workers’ own employability. L Policy makers and policy formers should work to create a legislative environment that supports flexibility and growth for firms and ensures a high level of minimum standards, guaranteeing quality of working life for employees. There is also a strong need for the promotion of research, skills and the provision of advice and information on high performance working. L The academic community needs to take a long-term view of high performance workplaces in order to identify and help businesses, unions and governments to manage potential risks associated with a high performance culture. The Chair concluded that best practice can most easily be shared through a pragmatic partnership approach which seeks to improve economic performance and maximise potential in the workplace. He hoped that the idea of a website to share experience between Member States would be a significant step forward in improving communication and partnerships between all the main agents of change, and that high performance working would come to represent the very principles of a civilised society and a successful economy.

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Annex 1: Speaker and Facilitator Biographies Conference Chair, Bill Callaghan, HSC (UK) Bill Callaghan was first appointed Chair of the Health and Safety Commission on 1 October 1999 and was reappointed for a period of up to 3 years from October 2004. He was previously the Chief Economist and Head of the Economic and Social Affairs Department at the TUC. He has considerable experience of working with different groups in the industry and public life and has served on the boards of Business in the Community and the Basic Skills Agency. Bill Callaghan served on the Low Pay Commission from 1997 to 2000. He was also a member of the Economic Social Research Council’s (ESRC) Research Priorities Board. He is a Visiting Fellow of Nuffield College, Oxford and a member of the Department of Trade and Industry (DTI) Fair Markets Group Board. Bill Callaghan was sworn in as a magistrate in spring 2005.

Gerry Sutcliffe, Member of Parliament (UK) Gerry Sutcliffe was first elected MP for Bradford South in 1994. He was re-appointed Parliamentary Under Secretary of State for Employment Relations and Consumer Affairs following the May 2005 General Election. Gerry Sutcliffe served as Parliamentary Private Secretary (PPS) to Harriet Harman when she was Secretary of State for Social Security (1997-1998). He served as Stephen Byers’ PPS in his roles as Chief Secretary to the Treasury (July - December 1998) and Secretary of State for Trade and Industry (1998-2001). He was also Assistant Government Whip (between 1999 and 2001). Before becoming a Minister, Gerry was Vice-Chamberlain of Her Majesty’s Household (2001-2003) after which he took up his first Ministerial post at the Department of Trade and Industry responsible for Employment Relations, Competition and Consumers on 13 June 2003. This role was expanded to include Postal Services in September 2004.

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Gerry was born on 13 May 1953 in Salford, Manchester and educated at the Cardinal Hinsley Grammar School, Bradford, going onto the Bradford Ilkley Community College. His first job after college was as a sales assistant at Brown & Muff’s Department Store, before moving onto the local paper the Telegraph and Argus. After this he moved onto a firm of printers where Gerry became active in the union movement through the GPMU (Graphical, Paper and Media Union) now part of Amicus and became involved with the Labour Party. He became a Bradford Councillor in 1982, culminating in being the leader of Bradford Council from 1992-1994 when he entered parliament. His political interests include Employment Relations issues, the economy, the role of the United Nations and Regional Government. In the little time remaining Gerry enjoys music, other sports and relaxing with his family. He is married with three sons and two grandchildren.

European Commissioner for Employment, Social Affairs and Equal Opportunities, Vladimir Sˆpidla (Czech Republic) Born on April 22, 1951 in Prague, Mr Sˆpidla completed his secondary education in 1970 to enrol in the Faculty of Arts, Charles University, Prague where he read history and prehistory. In 1976, he successfully defended his thesis on the subject of the foundation of the Zivnobanka financial institution. He then took up a number of jobs: such as in the field of preservation of historical monuments and nature conservation; archaeologist, saw mill worker, employee in a dairy and a building materials warehouse. Without party affiliation before 1989, Mr. Sˆpidla is one of the founding members of the CSSD, the Czech Social Democratic Party. In 1990, Mr Sˆpidla became Vice-Chairman of the Jindrˆichùv Hradec District National Committee responsible for education, health care, social affairs and culture. From 1991 1996, he served as director of the local job centre. In 1992, he became a member of the Presidium of the Czech Social Democratic Party (CSSD), in March 1997 its statutory ViceChairman, and in April 2001 Chairman of the CSSD. In the Chamber of Deputies, to which he was elected in 1996, he served as Chairman of the Parliamentary Social Policy and Health Care Committee. From July 22, 1998 to July 12 2002, he

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held the post of the First Deputy Prime Minister and Minister of Labour and Social Affairs authorised by the Government to co-ordinate the departments of labour and social affairs, health care, education, youth and physical training, the environment, and culture. He was appointed as Prime Minister on July 12, 2002. As of 22 November 2004 Mr Sˆpidla is European Commissioner for Employment, Social Affairs and Equal Opportunities. His hobbies include care of historical monuments, cross-country ˆ pidla is married for the running and various outdoor sports. Mr S second time; he has two children from his first marriage and another two acquired by marriage.

Professor Edward Lawler, Marshall School of Business, University of Southern California (USA) Edward E. Lawler is Distinguished Professor of Business in the Management and Organization department of the Marshall School of Business at the University of Southern California. He is also Director of the School’s Center for Effective Organizations. In 1978, he became a professor in the Marshall School of Business at the University of Southern California. During 1979, he founded and became the Director of the University’s Center for Effective Organizations. In 1982, he was named Professor of Research at the University of Southern California. In 1999, he was named Distinguished Professor of Business. Ed Lawler has been honoured as a major contributor to theory, research, and practice in the fields of human resources management, compensation, organisational development, and organizational effectiveness. He is the author and co-author of over 300 articles and 35 books. His most recent books include Rewarding Excellence (Jossey-Bass, 2000), Corporate Boards: New Strategies for Adding Value at the Top (Jossey-Bass, 2001), Organizing for High Performance (Jossey-Bass, 2001), Treat People Right (Jossey-Bass, 2003), Creating a Strategic Human Resources Organization (Stanford Press, 2003), Human Resources Business Process Outsourcing (Jossey-Bass, 2004), and Achieving Strategic Excellence: An Assessment of Human Resource Organizations (Stanford Press).

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Enrique Fernández Macías, European Foundation Enrique Fernández Macías comes from Spain and is a research manager in the Working Conditions team of the European Foundation for the Improvement of Living and Working Conditons. Before working at the Foundation, Enrique developed his career at the University of Salamanca, where he worked as a researcher in the departments of Sociology and of Applied Economics, participating in many different national and international research projects, most of them related to the world of work. He is currently involved in the European working conditions survey, in the Company Survey on working time, and the project on flexibility.

Will Hutton, Chief Executive, Work Foundation (UK) Will Hutton is chief executive of The Work Foundation, an independent, not for dividend research based consultancy which is the most influential voice on work, workplace and employment issues in Britain. Will began his career as a stockbroker and investment analyst, before working in BBC TV and radio as a producer and reporter. Prior to joining The Work Foundation, Will spent four years as editor in chief of the Observer and he continues to write a weekly column for the paper. Will has written several best-selling economic books including The World We’re In, May 2002 (launched in the US as A Declaration of Interdependence, May 2003 in Italy as Europa v. USA in December 2003, and in Russia this May), The State We’re In, The State to Come, The Stakeholding Society and On The Edge with Anthony Giddens. In addition, he won the Political Journalist of the Year award in 1993. In 2004, Will was invited by the EU Commission to join a Highlevel Group on the mid-term review of the Lisbon strategy and he acted as rapporteur for the report. Other roles Will performs outside The Work Foundation include: Governor of the London School of Economics; Honorary Fellow, Mansfield College, Oxford; Visiting Professor, Manchester University Business School and Bristol University. He is also a member of the Scott Trust.

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Stephen Bevan, Director of Research, Work Foundation (UK) Stephen Bevan is Director of Research at The Work Foundation. He is responsible for the delivery of a programme of both applied and frontier research on the world of work. With a multidisciplinary team of researchers, he oversees a programme of over twenty studies each year, each designed to enhance the UK’s evidence-base and to inform the climate of policy debate in the UK’s Boardrooms and in Whitehall. His current research interests include; high performance workplaces, work well-being and productivity, the strategic role of reward, social and network capital in organisations and public service delivery. Stephen spent almost twenty years as Associate Director at the Institute for Employment Studies and has been at The Work Foundation for three years. He has carried out research for the No.10 Policy Unit, The Prime Minister’s Office for Public Services Reform, HM Customs & Excise, DTI, DfES, Inland Revenue, DEFRA, HM Treasury, DoH, DWP, the Cabinet Office, the LGA and the MoD. He has also worked for many ‘blue-chip’ employers and several research councils, charitable trusts and EU bodies. He sits on the Boards of The Work Foundation and of The School of Coaching. He is a Fellow of the Royal Society of Arts and a Council Member of the HR Society. His publications include: The Ethical Employee, Smart Incentives, Attendance Management, Achieving High Performance: CSR at the Heart of Business, Workplace Trends Survey: 2004, Trade Union and Employee Involvement in Public Service Reform and Where’s Daddy?: The UK Fathering Deficit.

Rachel Dobson, Partner and Head of HR, Pannone & Partners (UK) Rachel Dobson is a partner and Head of HR at Pannone and Partners, a full service law firm, located in Manchester on a single site. The firm has 85 partners and 582 personnel altogether and is part of the Pannone Law Group, an E.E.I.G., with offices throughout Europe and beyond. Rachel joined Pannones in 1992 as a trainee solicitor, coming a partner specialising in Commercial Litigation in 1998. She joined the firm’s management team and took over responsibility for HR, in 2000.

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Before joining Pannone, Rachel worked for 5 years for Marks and Spencer plc in store management and in HR at M&S’s Head Office in Baker Street, London. Her experience of high performance management in that environment has been invaluable in helping shape Pannone’s approach as a high performance workplace. Rachel works ‘slightly part time’, an approach typical of the firm - she has 2 small children and takes one afternoon a week to collect her eldest son from school, ‘make spaghetti and watch cartoons’!

Mr László Virág, Ferrinfo Dunaferr Co (Hungary) Mr László Virág has been the HR Manager at Ferrinfo since 1999, having joined the company as a training and education consultant in 1994 after his first degree in Human Resources at the Janus Pannonius University. He completed further study of Management and Organisation at the Budapest University of Economics and Administration in 2001. Since starting his career in HR with Ferrinfo, he has been responsible for defining the company’s human resources strategy and leading the company’s operational and structural development. He has also been engaged in establishing internal communication within the compnay so that social issues are raised for discussion by both employers and employees. He has been responsible for making social and other agreements with the trade unions involved in the manufacturing sector, and has ensured that Ferrinfo remains in close contact with unions through collective agreements and other negotiation systems. In addition to these key responsibilities, László has personally devised and successfully introduced a number of initiatives during his time at Ferrinfo. These include the creation of a new management motivation system for the company, a performance-evaluation system based on competence and new management training programmes for employees to follow. Ferrinfo was proud to be awarded first prize in the Hungarian “Family-Friendly Workplace of the Year 2004” award, sponsored by the Hungarian Government. László is a member of the board of the DUNAFERR Sports Club.

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Neil Henderson, Joint Managing Director, St Luke’s (UK) Neil joined St Luke’s in 1996 from BBH as head of account management. The following year St Luke’s was Campaign’s Agency of the Year. He was made Joint Managing Director in 2002 and was an FT “Face to Watch” in the same year. Since Neil has been Joint MD St Luke’s has consistently appeared in the top 50 Best Small Companies to work for in both The Sunday Times and FT lists. Neil is a member of the IPA General Council.

Lenia Samuel, European Commission Lenia Samuel has been Deputy Director General of DG Employment, Social Affairs and Equal Opportunities since 1st June 2005. She has wide national and international experience in social and labour issues. Prior to her appointment as Deputy Director General , she was Permanent Secretary of the Ministry of Labour and Social Insurance in Cyprus. She has served on many ILO and Council of Europe Committees, dealing with labour and social matters, often in the capacity of chairperson or rapporteur. Mrs Samuel studied Law in London. She is a barrister-at-law (Gray’s Inn) and has completed postgraduate studies in Public Administration at the Institute of Social Studies in the Hague. She has written a book entitled “Fundamental Social Rights” covering the case law of the European Committee of Social Rights, which was published by the Council of Europe in 1997. A second edition was published in 2002. She has also co edited jointly with the ILO a book entitled “Protection of Social Security”. Apart from Greek, which is her first language, she has an excellent knowledge of English, good command of German and a fair knowledge of French. She is married and has a son.

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Hans Bogaert, Volvo Cars Gent Hans Bogaert is HR Director of Volvo Cars Gent in Ghent, Belgium. Volvo Cars Gent is the largest assembly plant of Volvo Car Corporation, which is part of Ford Motor Company since 1999. It is the sole producer of the Volvo S40, V50 and S60 and co-assembles the Volvo V70 together with its sister plant in Gothenburg, Sweden. Volvo Cars Gent employs 5000 people. Hans started his working life at Volvo Cars Gent, which is not unusual since the Ghent plant has a very loyal workforce. He was born in 1965 and joined Volvo in 1987. That year was the starting point for Volvo Cars Gent for working in teams. Teamwork was gradually introduced within, not imposed upon the workforce, which proved be to a crucial difference. Hans Bogaert was actively involved in promoting teamwork and the cultural change which was required to make this transition a success. Hans took up several HR functions since 1987 - employee administration, selection and recruitment and labour relations. In 1998 he was named manager Labour Relations. His dealings with - and in-depth knowledge of - the trade unions obviously helped to foster support for teamwork at all levels. It also guaranteed the continuation of the so called consensus model that management and unions agreed upon since the late 1970s. Teamwork evolved organically, with Hans and the whole organization supporting the change. Self management became the next logical step, with Volvo Cars Gent being in the vanguard of the movement to push responsibilities as much as possible to the shop floor level. Teams got a say not only in maintenance, material ordering and quality, but also in adapting work balances, following up cost, quality and other targets, performing basic team administration - in short, to function as a self supporting unit. In 2001 Hans Bogaert became director of Human Resources and Organisation and he also joined the plant’s management team. Although the focus is now much broader - not only encompassing HR issues but also matters of general company policy - Hans is still very much involved in teamwork and self management, working presently on a common basis for a teamwork approach among blue and white collars at the different plants of Volvo Car Corporation in Sweden and in Belgium. Hans Bogaert holds a Bachelor degree in Social Sciences.

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Workshop facilitators Workshop 1: Raising standards in the workplace Facilitator: Lucy Fallon-Byrne, National Centre for Partnership and Performance (Ireland) Lucy Fallon-Byrne was appointed Director to the National Centre for Partnership and Performance in May 2001. Prior to this, she was Assistant Chief Executive of the National Council for Curriculum and Assessment and formerly a primary school teacher and principal. Lucy has extensive experience in strategic management and planning and has worked as a consultant to organisations at national and international levels. She holds an MBA Degree with particular reference to strategic planning and organisational change and also an MA in political science. Discussants: L Guido Vanderseypen, DG Employment, Social Affairs and Equal Opportunities, European Commission L Jane Bird, UK Advisory, Conciliation and Arbitration Service (acas), UK L Paul Talbot, Assistant General Secretary, Amicus Union, UK L Benoit Brunet, Peugeot Citroen (member of French industry federation MEDEF), France L Dr Agnes Simonyi, Deputy State Secretary, Hungarian Labour Ministry, Hungary

Workshop 2: Human resource practices for recruitment and retention Facilitator: Professor Jaap Paauwe, Erasmus University of Rotterdam (Netherlands) Jaap Paauwe is Professor of Business and Organisation at the Rotterdam School of Economics, Erasmus University, Rotterdam. He has written and co-authored eleven books on human resource management and published numerous papers on HRM, industrial relations and organisational change. Together with other Dutch universities, he initiated the Dutch HRM Network. In 1997 and 2001 he was responsible for editing a special issue on HRM and Performance for the International Journal of Human Resource Management (UK), and he acts as a reviewer and guest editor for this publication. He is a Research 38

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Fellow and coordinator for the research programme on Organising for Performance of the Erasmus Research Institute for Management (ERIM). Before joining the University in 1988, he worked for both the Dutch trade union movement and a major employer. For several years, he was head of the research department at CNV group of trade unions, and before this he worked for the Dutch-based engineering company SHV/GTI. During that period, he was involved in coaching works councils, training and development and in research into the area of measuring HRM progress. Having experienced both the employers’ and unions’ side, he decided to return to the University in order to deepen his insights from a more academic and theoretical perspective. In 1991, he was an academic visitor at the London School of Economics (department of Industrial Relations) and in 1996 he was a visiting Professsor at Templeton College, Oxford University. In 2001-2002 he was a fellow in residence at the Netherlands Institute for Advanced Studies in the Social Sciences and Humanities (ANIS) in order to write a large part of the book HRM and Performance: achieving long-term value. His fields of interest are: institutional theory, human resource management, organisational change, new organisational forms and corporate strategy. Discussants: L Robert Strauss, Director, DG Employment, Social Affairs and Equal Opportunities, European Commission L Roman Mesicek, RespAct Workplace Award, Austria L Albertina Jordao, CETE, Portuguese Equality Commission, Portugal L Rainer Schmidt-Rudloff, BDA, German Industry Federation, Germany L Jerry Marston, The Corporate Citizenship Company, UK L Jan Franco, SCV-CSC, Belgian trade union, Belgium

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Workshop 3: Taking forward the research agenda on high performance practices Facilitator: Dr David Guest, King’s College London, UK Professor Guest took his first degree in Psychology and Sociology from Birmingham University, followed by a PhD in Occupational Psychology from London University. After postgraduate research, he became a research officer in the Department of Occupational Psychology at Birkbeck College. He then spent three years as behavioural science adviser to British Rail before joining the London School of Economics in 1972. He moved to Birkbeck in 1990 and for ten years was Professor of Occupational Psychology and head of the Department of Organizational Psychology. During that period he had a spell as a Governor of Birkbeck and as Pro-Vice Master with responsibility for Information and Learning Technology. He moved to King’s College in 2000 where he is now Head of The Department of Management and Deputy Head of the School of Social Science and Public Policy. He has written and researched extensively in the areas of human resource management, employment relations and the psychological contract, motivation and commitment, and careers. He is a member of the editorial advisory board of a number of journals and a Council Member of the Tavistock Institute. He is a member of the SDO Commissioning Board and of the Sector Skill Development Agency Academic Advisory Group. He has worked closely with a range of companies including Shell, ICL, IBM, HSBC, Hong Kong MTRC, as well as with the NHS and a number of Government departments. His current research is concerned with the relationship between human resource management and performance; the individualization of employment relations and the role of the psychological contract; flexibility and employment contracts; partnership at work; and the future of the career. Discussants: L Thomas Zwick, Centre for European Economic Research, Mannheim, Germany L Tony Huzzard, National Institute for Working Life, Sweden L John Forth and Carmen Alpin, Department of Trade and Industry, UK

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Annex 2: Further information and useful resources General http://www.dti.gov.uk http://www.businesslink.gov.uk http://www.eurofound.eu.int http://www.cipd.co.uk http://www.bestcompanies.co.uk http://www.ipa-involve.com http://www.greatplacetowork.com http://www.edwardlawler.com

Work-life balance and flexible working http://www.theworkfoundation.com http://www.employersforworklifebalance.org.uk

Partnership working http://www.ncpp.ie http://www.acas.org.uk

Equality and diversity http://www.eoc.org.uk http://www.corporate-citizenship.co.uk

Skills and training http://www.dfes.gov.uk/employers http://www.lsc.gov.uk http://www.ssda.org.uk

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Printed in the UK on recycled paper with a minimum HMSO score of 85. First published November 2005. Department of Trade and Industry. © Crown Copyright. http://www.dti.gov.uk/ DTI/Pub 8073/0.2k/11/05/NP. URN 05/1832