Work organisation and innovation

By Cox, Annette; Rickard, Catherine; Tamkin, Penny. Innovations in work organisation have the potential to optimise production processes in companies and improve employees’ overall experience of work. This report explores the links between innovations in work organisation – under the broader label of high performance work practices (HPWPs) – and the potential benefits for both employees and organisations. It draws on empirical evidence from case studies carried out in 13 Member States of the European Union where workplace innovations have resulted in positive outcomes. An executive summary and annexes are also available. Download Work organisation and innovation.
Training
Links have also been found between training and improved individual performance; for example in the semi-conductor industry where investment in training improved the problem-solving skills of machine operators and was found to reduce the number of production defects (Hatch and Dyer, 2004). The same study showed that training can have a strong positive effect on productivity. Company productivity was measured using a production function to estimate the value added per employee, designed to measure productivity rather than profitability to discount impacts beyond companies’ control. They found the effect of extensive training was both statistically and substantively significant, representing a gain of over 6% in value added per employee. Similarly, analysis of the ECS shows that provision of training has links to improved productivity and self-reported perceptions of organisational financial performance (Eurofound, 2011b). More specifically, studies have shown that training plays a significant role in developing innovation and organisations providing training benefit from enhanced knowledge and skills and ‘innovative capability’ in performing work tasks (Chen and Huang, 2009). Therefore it is through training that companies develop the ‘organisational expertise in terms of demand and content for the innovation’ (Weisberg, 2006; cited in Chen and Huang, 2009, p. 106). Training investment increases employees’ skills across all levels of the organisation and this can help grow a ‘source of ideas for further innovation’ (Torraco and Swanson, 1995; cited in Chen and Huang, 2009). This is supported by further evidence showing the importance of developing workforce skills in order to be able to reap the benefits of HPWPs. The EPOC survey found that managers believed a well-trained workforce was vital to securing the effectiveness of participatory workplaces; the proportion of workplaces using direct participation methods requiring highly trained staff was double that of those who did not use such techniques. Furthermore, the number of managers reporting direct participation measures had been a complete success was more than double among those with a highly skilled workforce than those with low-skilled employees (Eurofound, 1997, p. 171). Download Work organisation and innovation.