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However, they also reported several side effects such as: stress, blurring boundaries between work and personal lives, overtime work and difficulty in keeping track of hours worked. But the main question is: how important is such a phenomenon? In a captivating article in the Harvard Business Review, Prof Malone tells the story of the pharmaceutical giant Pfizer.

Two studies by the McKinsey Global Institute , speak about fragmentation under a similar connotation. It is the result of the attempt to increase efficiency by disaggregating jobs into tasks and re-assigning them to different types of workers, software or machines or low-labour cost locations. Part of this process falls under routinisation, where repetitive tasks are automated and others are relegated to new professions. The redistribution of tasks across doctors and nurses can happen along the same lines: if trained nurses take over some of the routine tasks of doctors, a new role can be created to take over some of the lower-skilled responsibilities of nurses.

Already in , Atkinson rationalised the process of making companies more flexible by identifying three different types of flexibility: functional, numerical and financial.

The two are submitted to different kinds of flexibility strategies: functional flexibility is designed for the core workers, who are more protected from market fluctuations; whereas numerical flexibility becomes more important when shifting to the periphery. Once again, the phenomenon is not new: by the end of the s several forms of flexible types of contracts had emerged in all OECD countries. Odesk, for instance, employs some , freelancers, of whom only one-half are in the field of web and software development.

An example is CastingWords, a transcription service that breaks audio files down and distributes them to different people able to put the original wording onto paper in a time shorter than the original file. Crowdsourcing constitutes a cheap and quicker option for outsourcing but it is not limited to that.

The definition of crowdsourcing can be wide and includes experiments like Wikipedia, where the construction of the encyclopaedia is in the hands of the crowd. Here we restrict the focus to crowdsourcing of paid labour which gives the possibility to assign a specific task, from the creation of a code for a web programme, to a translation or a data collection, to a worker in an unspecified location. If the scientific literature on the issue is practically nonexistent, the debate in blogs and newspapers is livelier.

He also tries to provide a more structured definition, paraphrasing the NIST definition of cloud computing: Cloud labour is a model for enabling convenient, on-demand network access to a shared pool of human workers with different skills e. This cloud model promotes availability and is composed of five essential characteristics This practically means that the worker is searched for when one is needed from a pool of workers with more or less focused skills and competences, with no human interaction necessary but an expected quick reaction and with the possibility to monitor the activity.

If the idea of being able to outsource a task to the crowd of freelancers, being able to find the right person within hours and get the job quickly done sounds not only very efficient but also fascinating, many challenges are associated with it. One is certainly working conditions. Wide fluctuations can be expected depending on market conditions in the system.

Low wages are not the only aspect. In another post and after trying the platform, Ipeirotis plots the number of active workers by country at different times of the day for various days of the week.

Thanks to this data made available by Odesk to clients, he realises that Philippine workers never sleep! Their supply of work is very constant over time, even though there is a hour difference between New York and Manila.

On this basis it is therefore reasonable to expect that workers will create new forms of associations to protect their rights. Another challenge related to cloud labour is the possibility to track work.

Odesk, for instance, responded to this possibility by creating a surveillance system by which six random screenshots are captured every hour of work and sent to the employer to check that time is not wasted on other activities than those contracted for.

The necessity comes from the fact that work on Odesk is not necessarily paid with a lump sum but can be paid by the hour. On the one hand, this type of monitoring system allows transparency from both sides but on the other it raises concerns from the point of view of privacy and control. Technologies such as instant messaging, teleconferencing and video calls make it less necessary for co-workers to gather together physically and allow for the creation of virtual teams.

Powell et al. Ebrahim et al. On the positive side there are time and money saved on travel, together with the possibility to rely on a potentially global pool of talents. Drawbacks come from an amplification of traditional team problems like communication, which are aggravated by language and cultural diversities and by the difficulty to introduce new management methods.

The creation of virtual teams is not the only aspect of the virtualisation of work. Other forms include teleworking, co-working and the use of social media at the workplace.

Co-working is the spontaneous aggregation of workers, often freelancers, who combat isolation, by gathering together in ad-hoc offices where it is possible to rent a desk for a few hours or days per month. The initiative offers many spillovers in terms of new opportunities thanks to networking initiatives. Another phenomenon increasing in importance is the use of social media and social networks at the workplace.

The spread of social media was initially ignored in its business applications, and then passed through a phase of scepticism where it was banned for security and productivity reasons and now is back as an opportunity. The potential uses of social networks for work business purposes are multiple: they can be vital for marketing and be very helpful to get direct feedback and advice from consumers.

Here we focus on uses related to work organisation. First of all, social media are useful to foster communication, especially in big organisations or small organisations with no common fixed offices. At FPS Belgium, Yammer has been installed, a social network that allows colleagues to collaborate easily and self-organise into teams.

A second potential use is recruitment. The state of the application is still confusing and experimental. There is no common strategy for recruiters and attempts to optimise the selection using social networks go from a quick look at Facebook profiles to the use of applications like Branchout or search functions on Linkedin.

Etro claims that the future impact of cloud computing can be compared to that of telecommunications infrastructures in the s and s and the internet in the s. Using a dynamic stochastic general equilibrium model, Etro estimates that the diffusion of cloud computing could lead to the creation of one million jobs in the EU. The creation of SMEs is favoured by a reduction of fixed and variable costs associated with hardware and software adoption, reducing the constraints associated with business creation.

Bayrak et al. According to Bayrak et al. European-level data on the distribution of the most recent technologies, e. In order to attempt a description, we rely therefore on a small survey run by the management consultant firm Vansom Bourne in of 1, business leaders across 15 western European countries. They were asked whether in the last 12 months their company invested in ITC equipment and in what precisely. Figure 10 summarises the results on average in the countries considered.

Figure If laptops and smart phones seem a more common acquisition, no more than one-third of business leaders reported that their company had acquired any of the other technologies, such as video-conferencing software or a hour IT support service.

Furthermore, as shown in Table 3, in all cases, this percentage increases with the size of the company. Table 3. One potential explanation is that bigger companies have potentially more resources to keep their equipment up to date. An alternative explanation is that they need it more.

However, this second explanation is refuted by the evidence obtained in one of the case studies: tools aimed at facilitating interaction and mobility is vital to the functioning of small companies in the service sector, especially those that are free or very cheap.

Implementation of ICT flattens organisational structure, enhances autonomy, creativity and mobility of workers, eliminates physical distances as a major limiting factor, increases productivity of labour, reduces hiring and recruiting costs significantly and — when used appropriately — could serve as a strategic tool to increase flexibility in relations with customers.

ICT offers organisations promising opportunities to cope with the challenges of the ever-changing business environment. Despite the aforementioned efficiency, cost-effectiveness and increasing overall use of ICT in general, SMEs do not maximise the use of ICT to their competitive advantage.

The resources issue is crucial because most of this equipment constitutes a fixed cost which means that it is more of a burden for a small company to bear. Aside from budget constraints, there are other possible reasons: failure of managers and employees to introduce new processes, lack of knowledge and the difficulty for SMEs to afford dedicated IT managers.

Such outcomes were probably affected by a self conscious management team which was able to identify potential risks before the adoption of a new working policy, allowing the company to avoid major drawbacks. The workplace innovations were indeed strongly supported by the high-level managers of the organisation reflecting their personal conviction and ideas about work, but responded as well to the need to modernise the slow and inefficient public administration. However, they did not perceive this effect in absolutely negative terms, and most of the respondents said that they used personal rules to cope with more flexible working schedule.

Despite the complexity of the whole issue concerning the relationship between WPI and performance, the data analysis showed that WPI has the potential to deliver positive outcomes for the organisation. With the changing nature of the European labour force and greater demand for flexible working conditions, we can also deduce that organisations that embrace change will be best placed to succeed. We detect as well a positive relation between flexitime and work-life balance FPS Belgium and between work-life balance and employment rates Otikon.

We can conclude this section by arguing that, all in all, positive aspects of WPI outbalance the negative ones leading to a convergence between organisational performance, employment and quality of working life aspects.

As indicated in the FPS and Otikon cases, WPI should be guided by a committed management where innovation affects the entire working culture and process. Technology is not a sufficient condition for the adoption of WPI but rather an enabler, in some cases an indispensable one.

The division of work into tasks that can be redistributed across more workers can indeed take place independently of technology: the example cited is the creation of the profession of paralegal, a new figure who takes on some of the more repetitive tasks of a lawyer.

This can happen without technology but for the redistribution of tasks to spread across a larger geographical area, technology becomes indispensable because it cuts transaction costs linked to organisation and communications at longer distances.

Two other trends described in this chapter may appear as a contradiction. Once again, these are not new phenomena: the attribution of more responsibility to teams and the isolation described by teleworkers have already been largely documented in the literature and are reflected in the data presented in the first chapter of this report.

Technology enables organisations to break geographical borders and overcome problems created by physical distance, which also means allocating minds where they fit best. What are the consequences of these trends for the labour market? Forecasting is always a risky exercise, especially when the absorption of new tools is so limited, but some tentative considerations can be made.

The first one is that these innovations break a dividing line that used to be very clear: the one between employees traditionally working from 9 to 5 in an office and external contractors. Thanks to or because of? It can also be said with a fair amount of confidence that the future workforce will need more lifelong learning to cope with changing technologies, even though they are increasingly friendly and intuitive.

Last, it is possible that the cheap labour available through crowdsourcing will favour job creation. To conclude, only a multilateral approach can create the conditions for a win—win situation for both employer and employee.

The role of technology in successful adoption of WPI should be neither underestimated, nor overrated. Evidence from chapter one suggests that, all in all, the positive sides of workplace innovation outweigh the negative ones. Drawbacks of the adoption of innovative practice include, for instance, the blurring of the border between work and private life and increased level of stress; all issues that emerged from the case studies and from our literature survey.

Compared to these drawbacks, gains seem to be higher, both for employers and employees: Data for Finland, for instance, allows us to conclude that there is no trade-off between higher productivity and a better quality of working life. If workplace innovation constitutes a potentially win-win solution, why is its application still limited?

Data suggest that in reality its adoption is fairly widespread, but very unevenly so across countries. We show this using data from the Fifth European Working Condition Survey, which contains data for and compares it to the data wherever necessary.

We show that each of these practices is present in different European countries in a very uneven fashion, with Nordic countries often being more advanced in their adoption. This is consistent not only with the traditional literature on welfare state classifications, but also with studies Gustavsen, that argue the existence of a Scandinavian model of work organisation.

At the end of this chapter we analyse the reasons why we do not observe more workplace innovation across Europe. These reasons include microeconomic considerations such as risk aversion, a lack of trust between social partners and costs related to the transition towards a new work environment, and macro explanations related to the national context in which institutions operate.

These may not be all present at the same time in each workplace; this list therefore has to be considered as comprehensive. Taking the average across all items by country we discover that Nordic countries are in the lead: Denmark, Sweden, Finland and the Netherlands rank first in the diffusion of new ways of work, which in these countries is much more widespread than in Mediterranean countries like Spain, Portugal, Greece and Italy.

As far as old European countries are concerned, it is possible to make a comparison with for some of the WPI items listed above to observe whether any substantial change occurred over the decade and whether there is any convergence across Europe towards more workplace innovation.

Table 5. The remaining WPI elements are remarkably static. Moreover, for all items except team work, there is a divergence rather than a convergence across EU15 countries. In the following sections of this chapter, we look more closely at each item to understand which countries achieve a wider diffusion of each practice and in the last part of the chapter, we try to explain the better or worse performance of certain countries.

The laggards in terms of working time flexibility are the East Europeans, the Spaniards and the Portuguese. In Denmark, the Netherlands and Finland, flexi-time is the dominant rule for one third of workers who are allowed to select their work schedule, within certain limits. Which type of working time flexibility are we referring to here?

This is true for every country the pink bar is taller than the blue bar. In terms of levels, workers from northern and continental European countries Denmark, Sweden, Austria, the Netherlands, Finland, Belgium and Germany are more inclined to adjust their working time by the day.

Q37C Do you work the same number of hours every week? The second element of the definition of WPI we selected for study is telework. The literature survey illustrated all the pros and cons of this practice. On the one hand, teleworkers enjoy a better work-life balance, on the other it may not be suited to everyone because some people do prefer interaction with their colleagues at the workplace rather than working in isolation.

In addition, some teleworkers complain about their inability to set a clear dividing line between work and private life. We tried to understand how many telecommuters there are around Europe. On average, 12 Europeans out of every engage in telecommuting. It is not by chance that these are also the countries where workers are more free to choose their work schedules: all in all, Dutch, Swedish and Danish workers have the greatest liberty to set their working time and their place of work.

On the opposite side of Figure 14 are Italy, Bulgaria, Hungary and Cyprus where fewer 5 in 10 workers can work from home as an alternative to their business premises. EU27 aggregate data by sector illustrate that greater numbers of workers in four sectors are allowed to work from home: real estate, professional and scientific activities, education, and information and communication.

Percentage of office workers that also worked from home 40 Given the same wage level, workers may then be more satisfied and hence more productive if they perceive some enhancement in the intrinsic aspects of their job such as control on their tasks and possibility to use their creativity.

Performance payments have also been roundly criticised by those who argue that this practice is not consistent with the definition of an employee, since dependent work should share risks with the entrepreneur.

Very recent research bordering the disciplines of neuroscience and economics has found that if it is true that workers with variable-payment schemes are more productive, this is not only due to the incentive mechanism but to a degree of self-selection Dohmen Falk, This implies that firms can use sorting to attract less risk-averse but more productive employees.

Interestingly enough, data suggest that this WPI saw the most interesting development over the decade. How many workers receive alternative forms of compensation linked to their performance as part of their salary as individuals or team members?

Both measures create a stronger link between the fate of the organisation and the worker. However they differ in intent: profit-sharing schemes create an incentive for the worker to make more effort, whereas employee-share ownership reflects trust and inclusiveness. Share of workers that receive partial performance-linked remuneration 30 The most interesting aspect is the clear trend throughout in Western European countries with the exception of Greece towards an increase in the number of workers affected by this practice: over the course of only one decade they increased up to three or four times in Belgium, Denmark, Luxembourg and Finland.

As a consequence, HPWS abandon the rigid pyramidal structure typical of Taylorist organisations and engage in a more flat structure with the intent of making innovation emerge bottom-up, thereby encouraging greater productivity because workers are more enthusiastic about their job.

To measure the degree of adoption of innovative practice in Europe, the first two variables taken into account are based on three questions in the survey: o At your workplace, does management hold meetings in which you can express your views? Are you involved in improving the work organisation or work processes of your department or organisation?

This practice involves at least one third of European workers in each country. Team work and team autonomy is the last element of qualitative flexibility.

This latter dimension of team-working is more differentiated by country: once again Denmark, Sweden and Finland rank in the top position given that more than two thirds of team-workers also enjoy great autonomy in the division of tasks.

This is to a certain extent puzzling, because given the parallel evolution in technology one would expect more task rotation and team autonomy. An important aspect is the complementarity between and across qualitative and quantitative elements of innovative workplaces. Correlation coefficients indicate that flexi-time and teleworking are positively correlated with all qualitative elements. One element is particularly interesting: the question in the survey related to team work has three potential answers: Yes in a single team, Yes in several, No.

For the purpose of this study we have aggregated the first two answers but if only the first work in a single team is considered, correlations with quantitative elements of WPI as well as with macro variables, become negative. This suggests that team work is productive only as long as variety is introduced.

In the case of alternative payment schemes the signs of the coefficients are the same but the relation is strong only with flat hierarchies and team autonomy. Signs suggest that not only is there no trade-off between telecommuting, for instance, and employee empowerment, but in some cases there is a strong interdependence. There is in this an element of fairness: one could not ask employees to accept performance-based remuneration without allowing them to influence how tasks are attributed and methods of work.

Table 6. Altogether they enable workers to decide when to work; to influence decisions relevant for the organisation; work in teams and exchange tasks. In southern countries, however, there is an effort to let workers organise themselves in teams and take more responsibility, but they keep elements of rigidity because the diffusion of flexi-time, task rotation remain limited and hierarchies are not smooth across the different criteria considered.

Yet, a study by the OECD confirms that the discretionary learning forms of work organisation are most widely diffused in the Netherlands, the Nordic countries and to a lesser extent Germany and Austria, while they are little diffused in Ireland and the southern European nations. The more bureaucratic learning model is most in evidence in the United Kingdom, Ireland and Spain and to a lesser extent in France, while it is little developed in the Nordic countries or in Germany, Austria or the Netherlands.

The low-learning Taylorist forms of work organisation show almost the reverse pattern compared to the discretionary learning forms; being most frequent in the southern European nations and in Ireland and Italy. We also observed that the comparison of and data presents a rather static picture: with the exception of performance-related payments, all other elements of WPI almost froze over the decade despite the sizeable diffusion of technology in the workplace.

This brings to the mind the words of Nobel Prize economist Robert Solow quoted in the Introduction: "You can see the computer age everywhere but in the productivity statistics".

In this case, we can argue that we see workplace innovation everywhere except in the data! In the following section we analyse the barriers that prevent workplace innovation from spreading further.

They can be divided into two main categories: microeconomic considerations such as risk aversion, lack of trust between social partners and costs related to the transition towards a new work environment, and macro explanations related to the national context in which institutions operate. We also check whether the sector of employment, the size of the company and the age and skills of the workforce constitute a barrier.

We come to the conclusion that none of them directly a barrier in the sense that different elements of workplace innovation can fit different contexts. Gillen Doug describes this process very well: When a new technology is introduced factor proportions change, responsibilities are altered and procedures change.

There are threats to lines of authority, job security and responsibility. In all cases there are threats and the successful implementation of a new technology into any firm requires that it be managed, it will not happen automatically and ultimate success of the firm will be contingent on the implementation. The adoption of new technologies has always presented challenges for managers, employees, and organisations in general.

Employee resistance and insufficient management support are, together with inadequate resources investment, the major part of difficulties in implementing of new technology ibid. Table 7 schematises the main problems for each actor. Table 7. Fears associated with WPI, expressed by level of actor Top management Middle-management Employees Risk aversion Job or status losses, future Higher workloads, worse pay and working career path.

Among case studies in this report there is no example of top management resistance: all cases reported ended up with the adoption of WPI, which cannot happen without the approval and the investment of the top management.

Yet, readings revealed that management resistance happens often. Out of the entire population of firms that have not adopted innovative practices, it is not possible to say how many times the management resisted this initiative, however.

A key factor in explaining this resistance is risk aversion: as explained in the next section, changing the workplace requires an investment in equipment and training and, as an investment, it bears a risk.

The payoff for introducing innovative practices is expected to be big in terms of productivity, innovation capacity and job satisfaction but uncertain. However, risk aversion is not the only reason: in order to take a decision managers need to be aware of the benefit of WPI and often they are unaware of benefits. And even when they are aware, in some cases they are simply not interested.

Middle managers have to be distinguished from top managers because the reasons for their reluctance can be quite different. English Choose a language for shopping. Amazon Drive Cloud storage from Amazon. Alexa Actionable Analytics for the Web. AmazonGlobal Ship Orders Internationally.

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