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Juhani Pekkola
PhD,
Docent of Sociology
Ministry of Labour, Finland
The Finnish Workplace Development Programme -TYKES
ICT-aspects / eInclusion
We develop working life. Together.
Tykes is a new umbrella programme, which is incorporated in the
Government’s programme and is based on tripartite cooperation with…
• a duration of six years (2004-09)
• an annual budget of EUR 12.5 million (2005) by the Finnish Government
• a proposed total budget of EUR 87 million
• 1,000 development projects and the participation of 250,000 employees as targets
Programme Organization
• tripartite Management Group (setting of overall goals, annual targets and annual operating plans)
• tripartite Expert Group (processing of project applications)
• 12-member project team in the Ministry of Labour
• advisory scientific forum of experts (31 members)
• network of regional contact persons in 15 Employment and Economic Development Centres and in 8 Occupational Safety Inspectorates
Expanded Triple Helix Model
Policy-makersLabour marketorganizations
R&D institutesConsultants
Companies andother workplaces
Challenges and Problems of Working Life in Finland
• ageing workforce: it is estimated that a million people will retire between 2000 and 2015 (nearly half the people employed in 2000)
• low retirement age: appr. 59 years• problems with employee well-being widely reported• sectoral differences in productivity growth: rapid
growth in the ICT cluster, sluggish growth in most other industries
• ’China syndrome’: increased pressure on technological and organizational innovation
Challenge of Qualitatively Sustainable Productivity Growth
• continued economic growth is the foundation of a nation’s welfare
• over the long term, the critical preconditions for economic growth are labour input and growth in total factor productivity (TFP)
• labour supply is in danger of decreasing in Finland for at least 30 years onwards owing to ageing of the population
• speeding up TFP can only partly compensate the negative effect of decreasing labour input on economic growth
Challenge of Qualitatively Sustainable Productivity Growth
• how to find solutions which simultaneously improve labour productivity and the quality of working life in a manner that also supports employees’ ability to stay on at work?
• workplace development programmes are means to promote economic growth by having a positive contribution to both labour input and productivity growth
Workplace development programmes help…
• lower the threshold for launching development activities in workplaces
• influence the objectives, methods of implementation and speed of development activities in workplaces
• create and identify good practices and disseminate them on as generative ideas
• promote the dialogue and learning between management, staff, researchers and other experts CONTINUES…
Workplace development programmes help…
• improve the competence of researchers and other experts
• create new forms of dialogue between different stakeholder groups (e.g. labour market organizations)
• bring workplace issues to public attention and encourage debate on them
Policy aspects Traditional innovation policy
Narrow systemic innovation policy
Broad systemic innovation policy
Policy aim to produce economic growth through fostering technological development
to produce economic growth through fostering technological development and diffusion of technology
to promote innovation and growth without undermining social cohesion and wellbeing of people
Base of national competitiveness
certain key technologies or branches certain highly intelligent R&D experts or isolated top R&D units
certain key technologies or branches national R&D system R&D expert networks (including top firms and top R&D organizations)
the strength and learning ability of the whole economy the structure of the production system institutional set-up
Pursued innovations
technological innovation technological innovation network innovation in relation to R&D system
social innovation (e.g. organizational innovation connected with production, service and R&D system) technological innovation
Legitimacy of innovation policy
market failures market failures and system failures in R&D system
system failures in the broad innovation system
Activities associated with innovation
R&D activities R&D activities R&D activities and routine activities in production, distribution and consumption
Programme Vision
Finland has a network of expertise for work organization development which creates national competitive edge and which effectively promotes qualitatively sustainable productivity growth (Tykes vision 2009).
Programme Guiding Principle
Tykes supports research-assisted work organization development based on cooperation between management and staff which promotes qualitatively sustainable productivity growth in Finnish workplaces.
Levels of Tykes Goals
PUBLIC POLIC LEVEL
Qualitatively sustainable productivity growth in Finland
PROGRAMME LEVEL
How can the programme and its measures promote qualitatively sustainable productivity growth in Finland and develop an innovation environment
which supports it?
GENERATIVE LEVEL
How can the project results act as a source of learning and inspiration for other workplaces and the various stakeholder groups?
WORKPLACE LEVEL
How can the projects help reinforce a mode of operation which supports qualitatively sustainable productivity growth in the participating
workplaces?
Advanced modes of operation are based on…• proactive and participatory management• utilization of new ICT in the organization of work• application of team-based forms of work organization • close cooperation with clients, other actors in the value chain
and external expert organizations• multi-skilled staff with versatile job assigments• good opportunities for staff to develop in their work and take
part in decision-making which affects their work• systematic development of the skills and competences
Forms of Project Activity
1. Basic analysis: brief analysis lasting for a few months which workplaces can use in specifying their development needs with an eye to a larger project. (max. EUR 10,000 per analysis)
2. Development projects: intended to promote changes in modes of operation at one or more workplaces with a view to simultaneous improvement in productivity and the quality of working life (max. EUR 100,000 per company)
3. Method development projects: creating and developing new development methods and practices for a knowledge-intensive, networking economy with the help of R&D institutes, which support qualitatively sustainable productivity growth (EUR 1.5 million 2004)
4. Learning network projects: creating long-lasting shared forums of learning for workplaces and R&D institutes to boost mutual exchange of experiences and knowledge based on development cooperation between the network participants (EUR 1.5 million 2004)
Forms of Project Activity
Project Funding by SectorBasic analyses and development projects by 12 May 2005
Agriculture & Forestry
Industry
Third sectorPrivate Services
State
LocalGovernment
2%
32%
8%21%
3%
34%
Food & Bevarage
Textiles & ClothingWood-ProcessingPaperPrintingChemicalStone & Glass
Electrical & Electronics
Metal & Engineering
Other
12,9%
1,6%8,3%2,7%5,6%
8,4%2,7%
12,3%
38,5%
7,2%
Funding by Expert Organization All projects by 12 May 2005
Universities, state research institutes and polytechnics
Consulting companies
Internal developers
Other research oreducational institutes
42,0%
41,7% 4,1%
12,2%
Needs for development / Tykes participants 2006 / Important + very important
82
82
76
75
71
68
65
64
56
51
49
43
32
0 20 40 60 80 100
Management
Work process
Work organisation
Internal co-operation
Products and services
ICT
Competences
Ability to work
Wage systems
Co-operation with other companies
Working conditions
Ohter technology
Working time
Typical Target Areas of Development Projects
• new forms of work organizations• work processes• working methods• internal cooperation within and between work
units and departments• external networking within the value chain • personnel management and leadership• work environment
Some Typical Development Approaches, Methods or Tools
• development groups• skills and working conditions surveys and analysis• team training• management training• process flow analysis• auditing• mentoring• action research (e.g. work conference method)• reflexive benchmarking• developmental work research (e.g. change laboratory)• Balanced Scorecard, EFQM, IIP, etc.
Channels for Dissemination of Information on Workplace Development
• large-scale projects and learning networks• project modues• seminars and work conferences • publications• www sites (e.g. data banks on projects, good
practice cases, R&D institutes)
Programme and Project Assessment
• interim assessment of the programme will be made in 2006/07 and final assessment in 2008/09
• all development projects make a self-assessment on their effects, success and implementation based on separate views by management, 5 employees and an expert working in the project
• a selected group of workplaces participating in development projects make a self-assessment of the HRM practices they apply both at the start and at the end of the project
• all projects must submit a final report
Some Target Figures of the Programme
• the number of completed doctoral dissertations and licentiate thesis written in connection with project activity: 70
• the programme has target numbers for the share of development projects which generate improvements in e.g. work productivity, customer service, management and labour cooperation, employees’ opportunities for development of their skills at work and employee well-being
Targets of the development projects
30%21%
18%18%
15%12%
8%8%7%6%5%4%3%3%3%3%2%1%1%1%1%
4%
19%34%
19%18%
13%18%
16%4%7%
7%12%
11%15%
6%4%4%5%
2%
3%
WorkprocessesFunctioning of work communities
Teams, groups, cellsPersonnel management
External networkingKnowledge of developing
Working capacity and coping at workOrganization structureStrategic management
Quality systemsDevelopment of working methods
MultiskillingCustomer service
Working environmentDevelopment required by technology
Ageing issuesPayment and reward systems
Environmental issuesWorking hours
E-workEquality at work
Other
0% 10% 20% 30% 40% 50% 60%
Main target Other target
TARGETS OF THE DEVELOPMENT PROJECTS
Impact of development project
0% 20% 40% 60% 80% 100%
Somewhat deteriorated Greatly improved Somewhat improved
IMPACT OF DEVELOPMENT PROJECT
Work productivity
Quality of products and services
Quality of operations
Customer service
Smooth running of operations
N=107-109
0% 20% 40% 60% 80% 100%
Somewhat deteriorated Greatly improved Somewhat improved
IMPACT OF DEVELOPMENT PROJECT
N= 107-109
Team work
Cooperation between management and staff
Social relations
Opportunity to develop vocational skills
Activeness in development
Impact of development project
Impact of development project
0% 20% 40% 60% 80% 100%
Somewhat deteriorated Greatly deteriorated Greatly improved Somewhat improved
IMPACT OF DEVELOPMENT PROJECT
N= 107-108
Mental well-being
Physical working conditions
Status of the ageing
Status of the young
Sexual equality
Assessment study of the programme
• By focusing on social innovation and with an emphasis on network building and companies´ ability for learning and innovation, the programme has acted as a major front-runner in the technology-dominated Finnish innovation policy.
• The goals and development concept of the programme reflect modern development trends in working life, workplace and work organization development even on an international scale.
• The programme has maintained its actuality and its ability for strategic targeting still remains high.
• The programme is highly approved by among its stakeholder groups.
• The programme has a sufficiently high profile with respect to its goals, development concept and modes of operation.
five main observations:
Challenge of sustainable productivity growth
• economic growth is the basis of a nation’s welfare
• economic growth bases on labour input, capital input and the growth of total factor productivity
• labour supply will decrease in Finland for at least 30 years onwards owing to change in the age structure
• the challenge is to find solutions to speed up productivity growth by means which simultaneously support employees’ individual and collective resources and their ability to stay in working life
