Copyright MCB UP Limited (MCB) 2000Yannick Schwamberger: Institut d'Administration des Entreprises de Lille (IAE), Lille, France, and
Said Yami: Universite des Sciences et Technologie de Lille (USTL), Lille, France
Introduction
The increase in the number of abstentions in the conciliation board elections between 1992 and 1997 (from nearly 60 per cent to 66 per cent) reflects the crisis that has been shaking the French trade union movement for more than two decades. Between 1970 and 1990, employee membership of a union organization dropped by half from approximately 4 million to 2 million (Guillon, 1997). Today, France has one of the lowest trade union membership rates of all the industrialized countries (about 10 per cent). Moreover, the diminution of "conflictuality" in firms may also be interpreted as a union crisis indicator (Guillon, 1997). The total number of individual non-worked days (strike days) greatly decreased between 1976 and 1997 (this number dropped from more than 5 million to less than 500,000 (in other words, a 90 per cent reduction over two decades).
The renewal of the Taylorian model finds its justification in the evolution of trade union action. Historically, in France, this action has been deeply rooted in the protest against the Taylorian model. We argue that there is a link between the crisis in Taylorism and the decline of trade unionism. This decline manifests itself today as the lethargy of the union movement and, in our understanding, is one phase of the professional relations process reshaping the Taylorian model of organization.
Thus, based on empirical observations (negotiation cases concerning the reduction of working time), we attempt to define the approach adopted by those involved. Is it a matter of contesting the Taylorian model or are we confronted with a postmodern vision of the Taylorian organization?
First, we present the idea that the "Aubry" law context, as far as the reorganization of working time is concerned, constitutes an encouragement to the decentralization of collective negotiations. Second, based on two negotiation cases, we observe how those concerned achieve agreement. Finally, these cases constitute part of a wider debate on the links between the decline of trade unionism and the renewal of the Taylorian approach by organizations.
The reorganization of working time (the "Aubry"[1] law context): towards the decentralization of collective negotiations
The reduction of working time corresponds to a secular trend[2]. However, today its nature is less demanding and corresponds more and more to a means of combatting unemployment (Boissonnat, 1995). Following this logic, the French authorities undertook a collective approach to decreasing the length of work based, in its first phase, on a negotiation incentive law. This law encourages firms to reduce the collective average hours worked per week to 35 hours by 2000 (or 2002 for firms with less than 20 employees). The "Aubry" law corresponds to a social choice, the consequences of which have little value at the macro- and micro-economic levels, although it has already affected the organizational functioning of firms.
Indeed, this law constitutes a wider experiment of different working-time organizing methods that can aid the transition to a 35-hour week. It finds its justification in the continuation of the different mechanisms established since 1982 and accelerates the movement of collective negotiations impelled by the inter-professional agreement of October 1995, which is greatly intensified by the "Robien" law of 1995. Although it does not lead to a disruption of the regulation frame of professional relations (in particular the existence of three negotiation levels: inter-professional; professional; and intra-firm), it does insist on agreements being achieved within firms. In this respect, it allows, in particular, the opportunity of directly negotiating with employees without trade union representatives. We can thus clearly see a challenge to the monopoly of the big trade union confederations. At this level, the "Aubry" law tends to participate in the process of collective negotiation decentralization.
Different trade union structures have different positions concerning the precise form that working time reorganization should take, but they adopt relatively convergent views on the necessity to legally reduce working times, aiming to produce a "shared work" effect. Thus, the government initiative forces trade union organizations to find or invent more localized and more involved methods within an organizational context. At this decentralization level of the negotiation, the debates and exchanges between those concerned are more focused on specific firm stakes.
In this way, negotiating is part of the action of organizing or the organizational process (Weick, 1979), i.e. the reconfiguration of firm structures according to their environmental evolution. However, it is also a matter of overcoming the conflict between the requirements of firm development and the personal aspirations of employees (Argyris, 1964). This conflict between the organization and the individual is even more important when it is a question of making a choice between private and professional life in the debate concerning working time reorganization (Meda, 1995).
However, what seems to be difficult to negotiate at the national level (in a centralized negotiation), appears today to be feasible in the context of multiple experiments on working time reorganization (in other words, a case-by-case consideration).
This evolution of professional relations, characterized by the development of intra-firm negotiation, constitutes one of the new Taylorian approach foundations. Then, it becomes not a matter of calling into question doctrine (Taylor, 1947), but of choosing the concrete methods of implementation and reducing "rigidities" or "drifts" (Friedmann, 1947).
Through accurate negotiation cases, we propose to observe the manner in which social partners build satisfactory compromises regarding work and the organization of working time. These analyzed processes show the participation of employees and their creativity; however, the case method is not only illustrative. The sum of intra-site analyses, and in particular the inter-site comparison, can lead to the production of a comprehensive model of organizational reality. Thus a qualitative research, based on this methodology, forms part of the theorization process (see Glaser and Strauss, 1967).
Two negotiation cases: Protex and Typhoon[3]
We consider the presented cases in terms of three main aspects:
(1) the organizational questions and the link between context and functioning;
(2) the negotiation process; and
(3) the results of the negotiation (see Table I).
The organization: the link between context and functioning
Concerning Protex's factory creation and functioning, the nature of production has provided serious constraints in terms of time- and work conditions. After a year, the board of directors sought to reorganize the firm's functioning primarily to reduce the average length of the working week and, also, to respond to demands, in terms of flexibility, polyvalence and autonomy, as defined by the human resources strategy.
In the case of Typhoon's activity development in Europe, the French establishment was designated to take charge of a new product launch for a product with great seasonal fluctuation in demand (demand varying from one to five during the year). However, three main difficulties already present in the firm hampered this project:
(1) the massive increase in overtime;
(2) the intensive use of casual work (up to 30 per cent of staff)[4]; and
(3) the storage costs of the finished products.
Confronted by these constraints, Typhoon's board of directors undertook a working time reorganization approach in order to relax the organizational rigidities to try and make the product launch a success.
These organizational problems bring into question the relation between the firms and their environment[5]. With reference to Pfeffer and Salancik (1978), we can detect, in the two cases presented, two types of strategic behavior. Protex reveals a reactive behavior, in the sense that it is oriented towards its internal structure, trying to act on the information systems, the management styles or even the technology. On the other hand, Typhoon is characterized by a proactive logic, concentrating on its external environment. It aims to conquer new markets and overcome its own structural constraints. These two behaviors are similar to the strategic profiles defined by Miles and Snow (1978) - defenders and prospectors.
The negotiation process
Concerning Protex, the working time negotiation was made in favorable circumstances. Employees were interested in a reorganization of their work which aimed to improve their working conditions and, especially, to enrich the content of the work. In this respect, the top management team's concern was to develop an innovative and adept organization, beyond the ideas of polyvalence and autonomy. But, if the context is favorable, it is the choice of negotiation method which appears more judicious. In proceeding directly, the top management team consulted many employees, asking them to rethink the organization, in particular, through two work groups of 20 persons. After four months this method of proceeding by "sites" had contributed to discovering every conceivable multiple and complex constraint that the parties may encounter. Finally, it reinforced the debate on employee involvement methods. Thus, everyone had been specialized in an expert function.
In the case of Typhoon, the top management team has clearly displayed its will to build a "winner-winner" agreement during an annual meeting about wages and working time. Therefore, trade union representatives and supervisors were first given training (ten hours over a four-month period) on the different methods of working time organization. During these sessions, participants defined four different themes on which the negotiation would be based:
(1) flexibility;
(2) profits;
(3) staff provident scheme; and
(4) wages.
Thus, four tripartite work groups (the top management team, the managerial staff and the trade union representatives) of 20 persons have been constituted. For two months these groups met weekly and, using their conclusions, the basis of agreement was reached.
In both cases, in spite of marked opposition between parties, the negotiators developed a reciprocal communication of maximum information about the respective interests or the usefulness concerning the negotiated object. Thus, we observe through these processes the main characteristics of "winner-winner" negotiations as defined in the game theory (Axelrod, 1984). Indeed, these cases are characterized by:
- a complete information implementation in the game exercise;
- the actors' will to maximize their advantages and to be successful; and
- a direct relation between the negotiating parties.
Such a context of avoiding exchanges drifts towards "slippery games" (Adam and Reynaud, 1978).
The negotiation results
At Protex, the exceeding of working hours caused by the production unit launching proved to be more and more difficult to maintain. The previous work organization was contradictory to the strategic options defined in terms of responsibility and autonomy. Moreover, there was a risk of employee disinvolvement. With the new reorganization of working time, the Taylorian organization principles were not called into question. Of course, the average length of the working week decreased and work rhythms were modified, but the production process structure has been maintained. In fact, it is more the work content which has evolved, in particular through task enrichment. Thus, every production post has been enriched by a functional activity, assigned according to the wishes of employees.
We notice almost the same results for Typhoon. The production process structure has not been called into question. The firm continues to function following the same methods and principles. However, the working time negotiation allowed the establishment of a more flexible organization aiming to adjust workflow according to demand. Moreover, thanks to the annualization of working time, Typhoon succeed in reducing casual work and the overtime solution. These results reinforce maintenance of the firm's internal skills and the global know-how. Finally, the rigidity associated with a traditional Taylorian organization is countered for the benefit of greater organizational flexibility.
In the cases, working time negotiation allowed the establishing of a more flexible work organization. Organizational flexibility is obtained, on the one hand, through employees' polyvalence and autonomy (employees' flexibility and adaptation) and, on the other hand, by a best working time reorganization (the production structure flexibility). The Taylorian organization, on each occasion, maintained its principles. It is the manner of implementation which is considered at length.
Beyond these concrete results, we can also observe an evolution in how to tackle negotiations. In both cases, top management teams made explicit the working time reorganization stakes. The negotiators fit into thought groups around the firm's concern, by associating either closely with the management staff or directly with the employees. Therefore, the negotiation processes did not take place only between the management staff and the trade union representatives. This negotiation leads to the evolution of the perceptions of those concerned as far as professional relationships are concerned.
Currently, those involved in work organization are faced with a changing vision of work. Regulations in place pose different problems for different people. Seen as the fundamental challenge at the dawn of a new era, the employment policy instigated by the authorities in France aims to reform the system, arbitrating between the demand of flexibility requested by the economy and the social aspirations of stability sought by the workers. This idea concerns, first and foremost, the perception of change rather than actual structural change. The construction proposed at the external level brings into question the traditional modes of firms' functioning at the internal level. Through the negotiation process, we note the use of a less conflictual approach and a new concept of professional relationships between employees and employers.
Towards the renewal of the Taylorian approach by organizations
The different experiments conducted to elaborate a framework for a less rigid organization can lead to two kinds of interpretations. According to some researchers, it is a matter of a fundamental challenge to the Taylorist conceptualization. According to others, it is a question of the renewal of organizational practices through a qualified post-Taylorian approach.
The model of Taylorism in organizations is strongly contested regarding the rigidities it creates. If the breaking up of tasks allowed the rationalization of the production process and a global increase in productivity, it led as well to an intense specialization in occupation and know-how. However, the rapid evolution in needs and markets requires shorter response times. Although the progress of technology permits this in major cases, it is at the level of the human resources structure that firms seem to be in difficulty. The allocation of competencies in the firms appears to be relatively static, while the evolution of the production methods requires a more dynamic know-how approach. Therefore, the new conception of the production systems moves towards more flexible models of organization that integrate the development of the employees' autonomy and polyvalence. In other words, these models try to counter the negative effects of the Taylorian organization.
This is, more or less, what we observe in the two firm negotiations studied. Indeed, in both firms, the social partners consulted each other's in order to elaborate more flexible work organization methods. At Typhoon, it was essentially a matter of matching the workflow variations with the demand variations. In this respect, the annual mechanism for working time allows the staff at production level to be more flexible, in line with top management's needs. This mechanism of working time reorganization also stops the need for excessive use of casual labour. Thus, the firm maintains and reinforces the skills at the internal level. At Protex, the negotiation on the working time reorganization led to the reshaping of production teams, in which the employees now have a role. In this way, the firm develops its technicians' polyvalence and promotes the autonomy of each team.
It is not a matter of abandoning a tried and tested model, but of making it evolve by creating an approach based either on a new know-how development (Protex), or a dynamic model which works out skills allocation within the firm (Typhoon). Apart from simply being updated forms of the Taylorian model, these two illustrations are interesting in the way that they show the evolution of professional relationships in France. Through an intra-site negotiation process, the demanding and conflicting nature of French trade unionism tends to become more cooperative. In this context, the Taylorian organization becomes less a target for criticism (mainly of an ideological nature) and more a centre for negotiation. Then, it becomes a matter of how the Taylorian model can be protected from harmful consequences in human terms (in particular the skills reduction). Then, the negotiating parties try to elaborate a more flexible and more adapted organization method according to the evolutions marking their organizational context.
This transformation seems to constitute a fundamental and abrupt change according to the theories of the "work scientific organization" (Taylor, 1947). Thus, in our view, there is no place for a unique best way to organize the production system (one best way). However, the rationalization of the process consists of reducing the number of tasks: each firm selects the organizational form adapted to its context. This form is also part of the negotiation; then we see (in particular through the presented cases) that employees (the representatives and shopfloor management staff) can participate directly in the development of the working time reorganization. Consequently, the production system design and its implementation are not completely separate. Wages appear to be not the only motivation for employees - the enriching of the task content also constitutes an essential compensation for their break-up. Finally, the negotiation of work organization seems to call into question the practices of the Taylorian organization. However, we observe that it is essentially a matter of reducing its negative effects.
A new form of organization, based on internal and external flexibility, is developed through a postmodern approach to the firm (Roseneau, 1992). This perspective aims to transform the practices of Taylorism in order to achieve greater employee involvement (for example, through the quality method awareness).
In the presented cases, we observe not only how the Taylorian organizational approach has been updated, but also how the reasons for the trade union crisis have been rendered obsolete. In fact, to explain the decrease in trade union action, researchers refer generally to two factors (Caire, 1992; Durand, 1996; Mouriaux, 1986; Rosanvallon, 1988; Tixier, 1992).
On one hand, the main trade union organizations, it seems, have for a long time now been more concerned with the general socio-political domain rather than with actual firms. Structuring, dispersion and divisions between the different trade union organizations have also contributed to the decline in union membership (Adam and Reynaud, 1978).
On the other hand, as far as work is concerned, the evolution of job descriptions has changed the nature of the demands on trade unionism, which was traditionally based on the control of working conditions. Fundamentally, the transformation of work and, in particular, the individualization of each job/task which has been extremely marked in firms in recent years. This, of course, runs contrary to the ethos of a trade union movement which has relied essentially on the collective identity of occupations.
Whatever the causes, the trade union crisis is a conjoint phenomenon with the crisis of the Taylorian model.
Conclusion
If public authorities wish it, then the movement towards a decentralization of working time negotiations will become widespread (35 hours by law), and we will be part of not only the process of creating a new approach to the classic organizational model, but also of the evolution of perceptions and patterns concerning professional relationships. In this way, the crisis phase that the trade union movement is undergoing at present will be resolved at the same time, by means of a new approach of professional relationships and organizations. In this respect, the post-Taylorian organizational form will result from the various negotiation processes, of which the basic aim is to develop a flexible organizational model, acceptable to all employees. In social regulation terms, it seems to be a new and distinct social order (Giddens, 1990) that involves something different and breaks with the past in terms of the perceptions those involved have. This reflection is most definitely part of a postmodern perspective that stresses relationships (Mauws, 1995; Morrow, 1994). The meaning of organization thus resides in the contexts and occasions where it is created and used by members, rather than in a specific fixed substantive form (Bittner, 1974; Gephart, 1993).
We consider that a "French-style" form of trade unionism, with its demanding and conflicting nature, tends to evolve into an engagement form, with action more focused on cooperation and agreement[7]. Trade union action traditionally has a role in working time reorganization (Guedj and Vindt, 1997). The incentive negotiation mechanism on this theme (the "Aubry" law), introduced in June 1998, represents the opportunity to observe innovative negotiation modes and the construction of new organizational models. These models aim to combine Taylorian principles with the increasing need for flexibility.
Notes
1. Aubry Martine is current Job and Solidarity French Minister.
2. According to different sources (OECD, 1996; ILO (BIT), 1995), the length of annual work in France decreased from 3,000 hours in 1830 to 1,650 hours in 1990.
3. These two cases are extracted from a doctoral dissertation in management research, dealing with the intra-site negotiation process of work time reorganization, conducted on the basis of 14 in-depth case studies (Schwamberger, 1999).
4. Casual work poses problems in terms of competence and polyvalence level.
5. For a detailed review of literature on this theme see the doctoral dissertation in management research, "Management perceptions and strategic process. North of France flax industry case" (Yami, 1999).
6. For more details about firms' cases, see Appendices 1 and 2. Protex and Typhoon design two existing firms based in the North of France.
7. The cases presented above illustrate this idea.
References
1. Adam, G. and Reynaud, J.-D. (1978), Conflits du Travail et Changement Social, PUF, Paris.
2. Argyris, C. (1964), Integrating the Individual and the Organization, John Wiley & Sons, New York, NY.
3. Axelrod, R. (1984), The Evolution of Cooperation, Basic Books, New York, NY.
4. Bittner, E. (1974), "The concept of organization'', in Turner, R. (Ed.), Ethnomethodology, Penguin, Markham, pp. 69-81.
5. Boissonnat, J. (Ed.) (1995), Le Travail dans Vingt Ans, Editions Odile Jacob, Paris.
6. Caire, G. (1992), "Syndicalisme en crise ?", in Durand, M. (Ed.), Politiques Economiques et Sociales en Europe, L'Harmattan, Paris.
7. Durand, J.-P. (Ed.) (1996), Le Syndicalisme au Futur, Syros, Paris.
8. Friedmann, G. (1947), Problemes Humains du Machinisme Industriel, Gallimard, Paris.
9. Gephart, R.P. Jr (1993), "The textual approach: risk and blame in disaster sense making", Academy of Management Journal, Vol. 36 No. 2, pp. 1465-514.
10. Giddens, A. (1990), The Consequences of Modernity, Polity Press, Cambridge.
11. Glaser, B. and Strauss, A. (1967), The Discovery of Grounded Theory, Strategies for Qualitative Research, Aldine Publishing Company, Xenia, OH.
12. Guedj, F. and Vindt, G. (1997), Le Temps de Travail: Une Histoire Conflictuelle, Syros, Paris.
13. Guillon, R. (1997), Les Syndicats dans les Mutations et la Crise de l'Emploi, L'Harmattan, Paris.
14. Mauws, M. (1995), "Relationality", paper presented at the annual meeting of the Organization Theory Division, Administrative Science Association of Canada, Windsor.
15. Meda, D. (1995), Le Travail: Une Valeur en Voie de Disparition, Aubier, Paris.
16. Miles, R.E. and Snow, C.C. (1978), Organizational Strategy, Structure and Process, McGraw-Hill, New York, NY.
17. Morrow, R.A. (with Brown, D.) (1994), Critical Theory and Methodology: Contemporary Social Theory, Vol. 4, Sage, Thousand Oaks, CA.
18. Mouriaux, R. (1986), Le Syndicalisme Face a la Crise, La Decouverte, Paris.
19. Pfeffer, J. and Salancik, G.R. (1978), The External Control of Organizations: A Resource Dependence Perspectives, Harper & Row, New York, NY.
20. Rosanvallon, P. (1988), La Question Syndicale, Hachette, Paris.
21. Roseneau, P.M. (1992), Postmodernism and the Social Sciences: Insights, Inroads and Intrusions, Princeton University Press, Princeton, NJ.
22. Taylor, F.W. (1947), Scientific Management, Harper & Row, New York, NY.
23. Tixier, P.-E. (1992), Mutation ou Declin du Syndicalisme? Le Cas de la CFDT, PUF, Paris.
24. Weick, K.E. (1979), The Social Psychology of Organizing, Addison-Wesley, New York, NY.
Appendix 1. Protex
Based in the North of France, Protex is an international chemical group subsidiary, employing 80 people. In this recent production unit, founded in 1992, the top management team developed an innovative organization based, in particular, on employees' polyvalence and autonomy. Thus the majority of them are operators-technicians who carry out both productive and functional activities (security, quality, human resources, logistics, maintenance). Hierarchical structure is reduced to the bare minimum: it contains only three levels (company head, departmental managers and technicians).
Since its foundation, the factory operated non-stop, with a "posted work" mechanism (four teams). Regarding activity costs, weekly work length was about 42 hours (that is to say over the legal limit). For four months, social partners met in order to conceive and negotiate a working time reorganization based on the creation of two additional teams. Changing to six teams permitted a rethinking of employees' function organization and a redefinition of tasks in the factory. Team size was reduced from 13 to nine technicians (productive staff from 52 to 54 people; two people were employed). In every team, technicians chose a functional activity and undertook specific training in order to become "the contact-expert" in their field.
The negotiation permitted the reinforcement of work organization in relation to management strategic targets posed in terms of employees' responsibility and autonomy. In this way, the new production-system shaping appears to be more rational and more efficient. Moreover, this adjustment has led to a decrease in hours worked per week (without any change to wages) and to an improvement in working conditions. On the whole, those concerned came out satisfied with the organizational change after having tried it.
Appendix 2. Typhoon
Typhoon is a production unit of household electrical appliances belonging to an international group composed of nearly 33 industrial sites, employing 39,000 salaried staff. In Europe, this firm has ten production sites (13,000 people). Until 1996, Typhoon employed 850 permanent and up to 300 temporary staff in order to make up for seasonal variations characterized by demand of a cyclical nature. Salaried employees are represented by four trade union organizations (affiliated to the five big trade union confederations).
Before work reorganization, this site essentially specialized in only "dryer" production. The production cycle was based on two teams (morning and afternoon) with average hours of 37.75 hours per week. Flexibility was obtained essentially by turning to casual labour and overtime.
Since 1996, Typhoon has been in charge of a new product type (dryer), for which the demand varies from one to five during the year. In June 1995, negotiating parties concluded an important working time reorganization agreement, consisting of an annual mechanism, annualized part-time work, progressive early retirements and the development of a night shift (moving from two to three teams). On the whole, the working week has been reduced a little (3 per cent), but the annual mechanism has led to more paid holiday by adding 20 days. Wages levels were maintained.
This complex mechanism allowed workflow to vary according to flexibility needs, in particular to the "dryer" launching. Thus the firm has succeeded in developing an ideal organizational structure for this new job which has led, in particular, to a significant decrease in storage costs. Moreover, as far as human resources are concerned, the agreement created employment and reduced the need for casual labour (from 30 per cent to 10 per cent of total staff). Typhoon succeeded in stabilizing its internal staff in order to better develop employees' competence and polyvalence. In this respect, they are satisfied with the agreement.
| [Illustration] |
| Caption: Table I.; Case presentations for Protex and Typhoon[6] |
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