Track 4: Human Resources, Quality of Work and Digitalisation

Rossana Merola, International Labour Organization (ILO)

The current wave of technological change based on advancements in artificial intelligence (AI) has created the sentiment of vastly accelerating technological change that is feared to disrupt labour markets in yet unforeseen magnitude. Many analysts are warning that advances in both robotics and AI over the next few decades could lead to significant job losses or job polarization and hence widen income and wealth disparities (Korinek and Stiglitz, 2017).

Three main factors are deemed to have triggered the rapid increase in AI patent applications across the world. First, the drop in computing costs has led to an explosion in installed computing power and storage capacity. Second, the development and wide-spread adoption of the internet and other forms of digital communication has led to a significant increase in the supply and storage of digital information. Finally, the drop in capital costs for digital technologies has significantly lowered barriers of entry for start-ups.

This paper aims at addressing this knowledge gap to gain a better understanding of the economic and social implications of AI. In order to do so, it suggests to start from a granular analysis of how previous waves of automation have changed occupations and employment opportunities in the past. Specifically, we look at experiences of advanced and emerging economies with the automation of physical tasks through the rise in robotization. This approach can shed some light on the likely impact that the development and wide-spread diffusion of AI might have on employment, incomes and inequality through the automation of mental tasks. We also look at offshoring as much as it affects the role that AI can play in the structural transformation in developing countries. The questions this paper then tries to answer are twofold: First, to what extent is the current digital transformation through the rise in AI labour-augmenting rather than labour-saving? Moreover, what will be the implications for productivity and inequality given the specific, digital nature of AI applications? In particular, can we expect an acceleration in productivity and earnings growth thanks to wide-spread diffusion of AI in areas that so far have not yet been subject to large-scale automation? Or, on the contrary, should we be afraid of technological rents arising from AI to be appropriated by the lucky few?

The answer that this paper gives to these questions is moderately optimistic. New, AI-based digital technologies will allow larger segments of the labour market to improve their productivity, to access better paying occupations and, thereby, will help promote (inclusive) growth. This requires, however, the adoption of a certain number of policies aiming to support the necessary shift in occupational demand, maintain a strong competitive environment and keep up aggregate demand to support structural transformation. At the same time, AI applications rise the potential for productivity growth for interpersonal, less technical occupations and tasks, leading to higher demand for such work, which is likely to dampen inequality trends observed over recent decades. A particular challenge arises for developing countries when they are part of a value chain that forces them to adopt capital-intensive technologies despite an abundance of underutilised labour. Here, AI-driven automation might further drive up informality unless governments ensure a wide-spread adoption and diffusion of digital technological change beyond the value chain sectors. In other words, the productivity enhancing potential of AI is real, but the specific characteristics of this new technology require policy responses that differ from those given during previous waves of technological change in order to generate shared benefits for the world of work.

To develop our argument, this paper in Section 2 will start by looking at the historical perspective of automation. It will argue that the rise in educational attainment has led to an increasing skill-biased nature of technological change, bringing fewer benefits for productivity but increasing inequality; it is against this background that the introduction of AI needs to be assessed. Section 3 will shift the focus on tasks and away from jobs to help understand the implications this had for employment and the organisation of production. Section 4 discusses the particular experience that advanced and emerging economies have made during the recent wave of robotization. In section 5, our focus will then turn towards AI and the various aspects that this new technology brings for job growth, earnings dynamics and firm productivity. In section 6, we will develop possible policy answers that can help address the issues that AI brings in order to allow for a proper sharing of technological rents both within countries but also between advanced and less developed economies. A final section concludes.

A comparative perspective

Samuel Mbah, University of Lagos

Introduction

This paper adopts a qualitative approach to investigate effects of online outsourcing on marginalised groups in developing countries. The study utilised secondary data because of the novelty of online outsourcing. The purpose is to compare different models of online outsourcing initiatives with a focus on Nigeria, Malaysia, and Philippines. Online outsourcing is a “digital labour” in a “gig economy” which involves exchange of goods and services from clients to workers for money via digital platforms such as Freelancer, Upwork, Fiverr, etc (Wood et al., 2016). These platforms represent digital labour markets where outsourcing of tasks takes place under competitive and flexible arrangements (Beerepoot & Lambregts, 2015). The online outsourcing provides employment opportunities for vulnerable groups like the unemployed men and women to gain permanent employment or low income earners to earn extra money. In contrast, this digital process is fraught with social policy challenges and challenges arising from the need for partnership among social actors such as the employers, government, World Bank and NGOs. Apparently, little is yet known about online outsourcing and very little evidence of comparative studies exist in developing countries. It is the need to fill this knowledge gap and add to literature that prompted this research.

The aim of this paper therefore, is to undertake a critical comparative analysis of “Models of Online Outsourcing Initiatives (MOOI)”and relative implications for marginalised groups in Nigeria, Malaysia and Philippines. This aim raises some basic research questions on:

RQ1: Why the comparison i.e., reasons for comparison?
RQ2: What are bases of comparison i.e., variables or indexes for comparison?
RQ3: How is the comparison undertaken i.e., approaches or methods of comparison?
RQ4: To what extent does social actors’ contributions impact vulnerable groups and maintain stable employment relationship?
RQ5: What are possible implications for theory and practice?

In order to gain as much insight as possible, we generate more specific objectives of the study to:

a. Find out if there are significant differences and similarities among the different Models of Online Outsourcing Initiatives namely “NaijaCloud”, “eREZEKI” and Infographic “Digtal Market” respectively;
b. evaluate content and structure of models in comparative perspective;
c. examine different forms of work processes and practices relating to each Model and compare their impacts;
d. compare level of speed/widespread of initiatives or density of vulnerable groups affected by using descriptive statistics i.e., Tables;
e. assess impacts of contributions made by social actors and development agencies on vulnerable groups and labour relations and
f. explain implications for theory and practice in comparative research.

Theoretical framework and concepts

The theoretical framework of this research is predicated on the strategy of “Constant Comparative Method” of analysis drawn from the “Grounded Theory Method,” originated by Glaser and Strauss (1967). The choice of this theory is premised on Morse’s (2009) view that grounded theory is not something that is ‘performed’ in exactly the same way, every researcher factors the approach or generates their own version of the theory to suit particular research purpose. It is based on this inductive reasoning that the choice of “Constant Comparative Method” is made to analyse and compare concepts and incidences of online outsourcing initiatives embedded in the three different models and apply inductive method to provide answers to the research questions.

Conceptual framework

Duncombe (2006) came up with earliest livelihoods framework of analysis that focuses on Information Centered Technology (ICT) and its application to poverty reduction in Botswana. Malik, Nicholson and Heeks’ (2018) livelihoods conceptual framework in online outsourcing via digital labour platforms in Pakistan was a modification or adaptation of Duncombe’s (2006) livelihoods Approach,

In the same way, we adapt Heeks et al.’s (2018) conceptual approach in the context and come up with a modified version that we refer to as a “welfare Framework”, derived via qualitative inductive approach (Morse, 2009).

Methods

The study is qualitative research that utilised secondary sources of data. The secondary sources of data utilised in this study include Journal articles, textbooks, records and reports of the World Bank, excerpts from Government reports, Central Bank of Nigeria (CBN) Bulletins, empirical studies, dissertations and internet source. The adopted methods of data analyses include descriptive, narrative, comparative and inductive methods of analyses.

Key findings / Research in progress

• The study found that each of the country has a unique label that reflects unique aim and objectives of online outsourcing initiatives such as “NaijaCloud” in Nigeria, “eREZEKI” in Malaysia and “Infographic Ditital Market” in Philippines and so forth.

Implications for theory and practice / research in progress

• The new form of “Constant Comparative Method” perspective of the grounded theory derived via qualitative and inductive approach as well as the adapted model can be of immense benefits to researchers in comparative studies.
• In practice, is relevant to policy making, digital labour relations and socio-economic development and so forth.

Contributions to knowledge

• The study established new perspective of “Constant comparative Method” derived from “Grounded theory” as organisational lens devise useful in online comparative research. Thus, fills the knowledge gap and adds to literature.

References

• Beerepoot, N., & Lambregts, B. (2015}. Competition in online job marketplaces: Towards a global labour market for outsourcing services. Global Network, 15(2), 236-255.
• Duncombe, R. (2006). Using the livelihoods framework to analyse ICT applications for poverty reduction through microenterprise. Information Technologies and International Development, 3(3), 81-100.
• Glaser, B. &. Strauss, A. (1967). The discovery of grounded theory strategies for qualitative research. Chicago: Aldine Publishing Company.
• Heeks, R., Malik, F, & Nicholson, B. (2018). Understanding the development implications of online outsourcing: A study of digital labour platforms in Pakistan. UK: Centre for Development Informatics Global Development Institute, SEED.
• Lacity, M.C., Yan, A., Solomon, S., & Willcocks, L. (2011). Business process outsourcing studies: A critical review and research directions. Journal of Information Technology 26(4), 221-258.
• Morse, J.M., & Niehaus, L. (2009). Mixed method design principles and procedures. Venut Creek: C A Lest Coast Press.

Experiences in German companies

Alexander Bendel, Institute for Work, Skills and Training, University of Duisburg-Essen
Erich Latniak, Institute for Work, Skills and Training, University of Duisburg-Essen

Presently, digitalization of German industry is gaining a lot of attention in German public debate: Based on the notion of “Industry 4.0” (BMWi, 2018) (BMBF 2018), there is a strong emphasis on technical solutions and the use of IT-based technologies and communication tools for the companies. But as recent research indicates (e.g. Baethge-Kinsky et al., 2018; Guhlemann et al., 2018; Klippert et al., 2018), many companies still tend to be cautious in applying the new remedy.

The joint research project “Arbeits- und prozessorientierte Digitalisierung in Industrieunternehmen – Weiterentwicklung kompetenter Arbeitssysteme (APRODI) (= Work and process oriented digitalization in industrial enterprises – further development of competency oriented work systems)” is aiming to improve digitalization processes in production environments in five companies by implementing digital technologies in a way that employees can broaden their skills and competencies and, at the same time, improve the ability to solve production related challenges. The project‘s objective is to contribute to a use of digital technologies that will foster productivity and competition related aspects on the one hand, while adapted, culture sensitive, and competence oriented approaches will be applied on the other.

Based on socio-technical principles and concepts (e.g. Ulich, 2011, 2013; Baxter & Sommerville, 2011; Winter et al., 2014), change projects in the joining companies are about to develop adapted approaches of a participative and integrated design. Solutions will be developed based on specifications jointly discussed by stakeholders and participants. Joining companies stem from different industries and they all have extended experience in using and developing team structures.

The companies’ learning processes are supported by joint efforts, i.e. by external and scientific input, and by joint feedback. The aim is to identify success factors and obstacles in the digitization processes (c.f. Zink et al., 2015), and to adapt these company experiences for transfer purposes. Based on interviews, participatory observation, formative evaluation, and action research methods, intervention oriented case studies will be analyzed.

We will present preliminary findings of selected cases and discuss conclusions for chances and limits of a participatory work design and for concepts of change processes in digitized environments.

References

• Baethge-Kinsky, V., Marquardsen, K. and Tullius, K. (2018), “Perspektiven industrieller Instandhaltungsarbeit”, WSI-Mitteilungen, Vol. 71 No. 3, pp. 174–181.
• Baxter, G. and Sommerville, I. (2011), “Socio-technical systems. From design methods to systems engineering”, Interacting with Computers, Vol. 23 No. 1, pp. 4–17.
• Bundesministerium für Wirtschaft und Energie (2018), “Was ist Industrie 4.0?”, available at: https://www.plattform-i40.de/I40/Navigation/DE/Industrie40/WasIndustrie4....
• Guhlemann, K., Georg, A. and Katenkamp, O. (2018), “Der Mensch im Mittelpunkt oder im Weg? Grenzen und Potenziale menschengerechter Arbeitsgestaltung in der digitalen Transformation”, WSI-Mitteilungen, Vol. 71 No. 3, pp. 211–218.
• Klippert, J., Niehaus, M. and Gerst, D. (2018), “Mit digitaler Technologie zu Guter Arbeit? Erfahrungen mit dem Einsatz digitaler Werker-Assistenzsysteme”, WSI-Mitteilungen, Vol. 71 No. 3, pp. 235–240.
• Ulich, E. (2011), Arbeitspsychologie, 7. Aufl., vdf Hochschulverl. an der ETH, Zürich.
• Ulich, E. (2013), “Arbeitssysteme als Soziotechnische Systeme – eine Erinnerung”, Journal Psychologie des Alltagshandelns, Vol. 6 No. 1, pp. 4–12.
• Winter, S., Berente, N., Howison, J. and Butler, B. (2014), “Beyond the organizational ‘container’. Conceptualizing 21st century sociotechnical work”, Information and Organization, Vol. 24 No. 4, pp. 250–269.
• Zink, K.J., Kötter, W., Longmuß, J. and Thul, M. (Eds.) (2015), Veränderungsprozesse erfolgreich gestalten, VDI-Buch, 2. Aufl., Springer Vieweg, Berlin.

Funding

The joint research project „Arbeits- und prozessorientierte Digitalisierung in Industrieunternehmen – Weiterentwicklung kompetenter Arbeitssysteme (APRODI)“ is financed by the Bundesministerium für Bildung und Forschung (BMBF = German Federal Ministry for Education and Research) and the European Social Fund (ESF) from 01.05.2017 to 31.01.2020, Research Grant No. 02L15A 040 – 046.

Autonomy in (partly) digitalised worlds of work. Fuzzy Set Qualitative Comparative Analysis (fsQCA) as path to understanding of complex reality in sociology of work

Christian Manfred Wilke, Paderborn University
Eva Susanna Kunze, Paderborn University

» Full paper: ilera-2019-paper-51-Wilke.pdf

Qualitative Comparative Analysis (Ragin, 1987; Ragin, 2000; Schneider & Wagemann, 2012) – QCA – is not yet well-established in German-language publications concerning the sociology of work. In this article we want to show that QCA can be used as a methodological approach for analyzing the impacts of modern technologies on social dimensions of the workplace. QCA allows us to conduct parallel analyses of multiple theoretically relevant variables, whose combinations might impact the outcome variable. Specifically, an observed condition does not necessarily demonstrate its impact on the outcome as an isolated condition, but combined with others. Hence, cases analysed using QCA manifest themselves as configurations of multiple properties. Moreover, it is assumed that several causal paths (certain combinations of conditions) exist which explain the outcome. Our analysis searches for configurations of structural and technological workplace conditions interpretable as causal paths to perceived work autonomy.

Existing theories concerning this relationship point to negative consequences of new technologies in the workplace for autonomy. In both the labor process (Braverman, 1974) and technological determinism debates (summarized in Rammert, 2006) this relationship is mediated by a “dequalification” of employees whereas in action theory the introduction of new technologies provides opportunities for an expansion of autonomy, e.g. by formal gaps in newly created structures of work processes.

In our analysis we identify sufficient and necessary configurations for highly perceived work autonomy differentiated along the three dimension by Breaugh (1985). These configurations are combinations of up to four conditions: two conditions concerning the structural position of the employee (leadership and formal qualification) and two conditions dealing with technological properties of the workplace under observation (degree of digitalization and the degree of automated machine interference in work and decision processes).

Our sample consists of 33 employees from different firms and branches organized in the IG Metall (German metal workers union). The analysis produces multiple causal paths to work autonomy. First, autonomy of work method is sufficiently conditioned by a combination of high formal qualification and the absence of machine interference in the work process. Similar results are found for the sufficient conditions for autonomy of work scheduling. Second, we show that the presence of high-level formal qualification also leads to a highly perceived autonomy of work method and scheduling when combined with the absence of a digitalized workplace and leadership position.

The analysis of necessary condition reveals that holding a leadership position leads to high perceived autonomy of work method as far as it is combined with the absence of one of the two technological workplace properties. As hypothesized before the analysis, it does not show any consistent causal path to perceived autonomy of work criteria.

Our study shows how complex patterns of sufficient and necessary conditions for work autonomy can be identified using QCA. The analysis of combinations of technological and structural workplace properties allows us to review implications of the aforementioned theories beyond pure correlations. For our sample we can show that especially those workplaces with low impacts from alleged intelligent technology are endowed with high work autonomy. Therefore, visions of some “Brave new world of work” driven by digitalization as postulated in Internet-of-things/ smart industry/ industry 4.0 debates (e.g. Kagermann et al., 2013; Spath et al., 2013) remain worthy of discussion.

Literature

• Braverman, H. 1974: Labor and Monopoly Capital. The Degradation of Work in the Twentieth Century. New York.
• Breaugh, J. A. 1985: The measurement of work autonomy. In: Human relations, Jg. 38 (1985), H. 6, S. 551–570.
• Kagermann, H./Helbig, J./Hellinger, A./Wahlster, W. 2013: Umsetzungsempfehlungen für das Zukunftsprojekt Industrie 4.0: Deutschlands Zukunft als Produktionsstandort sichern; Abschlussbericht des Arbeitskreises Industrie 4.0.
• Ragin, C. 1987: The comparative method: Moving beyond qualitative and quantitative methods. In: Berkeley: University of California (1987).
• Ragin, C. C. 2000: Fuzzy-set social science.
• Rammert, W. 1992: Wer oder was steuert den technischen Fortschritt? Technischer Wandel zwischen Steuerung und Evolution. In: Soziale Welt, Jg. 43 (1992), H. 1, S. 7–25.
• Rammert, W. 2006: Technik, Handeln und Sozialstruktur: Eine Einführung in die Soziologie der Technik,. Internet: http://www. soz. tuberlin. de/Tuts/Wp/TUTS_WP_3_2006. pdf [zuletzt aufgesucht am 16.03.2010].
• Schneider, C. Q./Wagemann, C. 2012: Set-theoretic methods for the social sciences: A guide to qualitative comparative analysis.
• Spath, D./Ganschar, O./Gerlach, S./Hämmerle, M./Krause, T./Schlund, S. 2013: Produktionsarbeit der Zukunft-Industrie 4.0. Stuttgart.

Franz Eiffe, Eurofound
Christophe Vanroelen, Free University Brussels
Deborah De Moortel, Free University Brussels
Jessie Gevaert, Free University Brussels

» Full paper: ilera-2019-paper-81-Eiffe.pdf

This paper contains an in-depth analysis of employment status in Europe, dealing with employment statuses’ distribution and the potential consequences for job quality and quality of working life.

Since the 1970’s, employment statuses have started to diversify. Non-standard forms of work emerged next to ‘standard’ permanent employment. These forms of employment may be ‘non-standard’ on several dimensions, but most important are the contractual (temporary, agency, and freelance work) and temporal (part-time) nature of work. The main classification of employment status in this study contains: indefinite contracts, fixed-term contracts of more than one year, fixed-term contracts of less than one year, other employees, dependent self-employed without employees, independent self-employed without employees, and self-employed with employees.

Since non-standard forms of employment are changing the labour market at a growing rate, European policy makers aim to formulate suitable policy initiatives. The European Pillar of Social Rights aims to modernise the rules of employment contracts, and broaden the scope of traditional employment to new and atypical forms of work (European Commission 2017a), while also earlier EU-efforts tried to deal with this issue.

In this study, first of all, we discuss the prevalence over time, socio-demographics and countries of different employment status categories. Then, we explore the relationship between the employment statuses and job quality, and the mediating influence of individual-, and country-level characteristics. Finally, we also look into the relationship of employment status and the quality of working life.

While permanent waged employment is still the norm, non-standard employment is more prevalent among new labour market entrants

Permanent waged employment is still the norm throughout Europe. Fixed-term contracts however, have no continuous pattern across European countries. Solo self-employment is increasing, especially in Southern European countries. Lastly, part-time employment tends to increase in all European countries.

While permanent employment is most often found among older, higher educated workers and in higher income quintiles, both fixed-term contracts and (involuntary) part-time employment are more prevalent among young, primary educated workers, and in low income quintiles. Self-employment without employees is prevalent in both higher and lower income quintiles.

Different employment statuses experience different degrees of job quality

The job quality of all other employment status categories is compared to that of workers holding a permanent employee contract. Long-lasting temporary contracts have lower work intensity, lower quality of social environment, lower skills and discretion, less chance of receiving training, less work schedule regularity, poorer working time quality, less job security, and less employment prospects. The pattern is very similar, but more pronounced, for short-term fixed contracts. The economicylly dependent self-employed without employees have lower employment prospects, poorer skills and discretion, less favourable physical and social environment, and lower scores on work intensity and higher job strain compared to other employment statuses. For the independent self-employed without employees similar patterns are found. The self-employed are a relatively favourable group in terms of job quality. Finally, workers in part-time employment have a worse quality of their social environment, training, skills and discretion, regularity, job security and employment prospects – but a more favourable physical environment, job strain and working time quality.

Labour market performance and working-class power are crucial to understanding the country-level influence on job quality

The results concerning country variation in job quality show that particularly indicators relating to ‘labour market performance’ (e.g. unemployment rate and R&D expenditure) and ‘working-class power’ (e.g. centralisation in collective bargaining, collective bargaining coverage and union density) are significantly related to a number of job quality indices. Such results show the importance of social dialogue.

Furthermore, the size of the associations between employment statuses and job quality indices differs between production regimes. For example, results have shown that fixed-term workers have poorer employment prospects compared to permanent workers in all but the liberal production regime.

Employment status and quality of working life

Compared to permanent contract-holders, temporary workers encounter more financial problems, adverse social behaviour, lower satisfaction with working conditions, and find their health and safety more at risk. Most of these findings are stronger among short-term temporary contracts. Also, dependent solo self-employed have worse scores on many quality of working life indicators, although their motivation is higher. Independent solo self-employed encounter more financial difficulties and work-private interference and worse self-rated health than permanent employees, while they are more motivated and engaged with work and less often absent from work. Self-employed with employees have overall the most favourable quality of working life scores, although face a problematic work-private interference. Voluntary part-timers show similar or better quality of working life than permanent workers. This cannot be said for the involuntarily part-time employed, who perform badly on most quality of working life outcomes. Also working long hours comes at a cost for many aspects of working life, although these workers are highly motivated. The relation between employment status and quality of working life is mediated by job quality. Also contextual factors (e.g. educational attainment, or the country of residence) tend to aggravate/attenuate associations between employment status and quality of working life.

Methodology

The analyses uses multi-level regression models in order to explore the effects of employment status on several job quality outcome indicators (covering the following joq quality dimensions: physical working conditions, working time quality, social environment, skills and discretion, work intensity). Multilevel structural equation models are employed to identify indirect effects of employment status on quality of working life outcomes such as satisfaction with working conditions or health.

A cross-national analysis of 17 countries

Predrag Lazetic, University of Bath

This paper investigates the diversity in job quality of university graduates in 17 European countries using multilevel regression modelling, based on combined REFLEX and HEGESCO graduate survey data. The focus of the research is on aspects of graduate jobs that affect quality, especially the analytically neglected aspects of skill utilisation and work autonomy, as well as income, job security and work life balance.

The paper analyses variance in graduate job quality across 258 sectors of economic activity in the 17 countries studied, and identifies a number of factors that are correlated with overall job quality and its dimensions.

The main research focus, however, is on contextual factors in the wider society and economy that help explain both diversity in job quality and differences between different sectors of the economy and different occupational groups. In particular: 1) the adoption of new computer technologies; 2) exposure to globalisation, and 3) high educational attainment in the labour force.

The study tests two broadly contrasting theoretical approaches to differences in graduate job quality: skill-biased technological change theory (Acemoglu, 2002) and the new institutionalism (Baker, 2014) on the one hand, and the conflict theory of global knowledge capitalism (Brown et al., 2012) on the other, and in empirical terms finds more support for the latter of two theoretical accounts.

The findings point to one fact, neglected in mostly cross-country comparison-focused comparative research on job quality, which is that differences between countries in terms of job quality are not significant on any dimension apart from income, at least not in the case of the graduate worker segment of the labour force. With income level, the country of employment matters much more than for instance the sector of employment in which graduates work or the type of job they do. The differences in the macro level are however significant, and in some cases substantial, at the level of sectors of the economy, and these should be considered more in comparative studies. Only by taking into account sector features can one understand why, for instance, the primary and secondary education sectors across Europe provide the best graduate jobs, and the sectors of wholesale and retail or transport and communications the worst graduate jobs. A multilevel perspective on graduate job quality also reveals the important point that sectoral comparisons have limits, as most variance in graduate job quality is located at individual level (e.g. there is greater difference between individual graduate jobs within one sector of the economy than between graduate jobs in different sectors of the economy in Europe).

Here the key findings with regard to variables related to the main theoretical framework and the main research question asks:

Use of computer technologies at work: There are differences here at both the individual and sectoral level. Above average use of computers and the internet compared to other graduates in the same sector was not associated with any premium or penalty in terms of job quality in any of its dimensions apart from job security, where it brings some rewards, and is indicative of a more permanent position. On the other hand, graduates working in sectors characterised by high utilisation of computers and internet technologies are on average slightly better paid than graduates in other economic sectors (β = 1.265). But higher than average use of computers and the internet in a sector of the economy, contrary to the theoretical assumptions of skill-bias technology theory, is associated with lower than average skill utilisation (β = -2.082), which potentially indicates a deskilling effect of high computer use in a sector. Such sectors apparently do not provide jobs in which graduates can use the skills acquired through higher education. This study shows that graduates in Europe primarily associate skill utilisation with the extent to which their work calls on their disciplinary knowledge and analytical skills. Softer skills and abilities come only in second place.

Globalisation exposure: Similar to technological growth and level of technological development, globalisation exposure in the sector seems to have not so straightforward negative or positive effects on graduate job quality. High globalisation exposure in the sector of graduate employment is positively correlated with skill utilisation (β = 0.119) and job security (β =0.421), while it has a small but negative effect on earnings (β= -0.077). This seems to support the view of skill-bias theorists about the impact of globalisation on high skilled workers (Goldin and Katz, 2007). While globalisation, with a related increase in competition, outsourcing and offshoring might have a more negative effect on low-skilled workers lacking higher education, highly skilled graduates in Europe do not seem to be as affected by outsourcing and offshoring activities as their low-skilled co-workers.

Tertiary education attainment of the labour force: the findings indicate a significant, yet relatively small, positive correlation between skill utilisation (β = 0.052) and work autonomy (β = 0.052) and the proportion of workers with higher education degrees in a sector. Higher educational attainment in some sectors (usually education, professional services, ICT or finance) is associated with slightly higher skill utilisation and work autonomy for every graduate worker regardless of the occupational group he or she belongs to, however it has no associations with income. This partly supports the views of new institutionalism ( Baker, 2014) on the emergence of a schooled society. However, the past rate of tertiary attainment growth across sectors of the economy is negatively associated with skill utilisation (β = -0.090), which also potentially supports the arguments of new institutionalism. This negative effect is theorised as a short term effect until the occupational system adjusts to this new type of workers. Nevertheless, this finding also indicates that (hypothetically) in sectors where the proportion of highly educated workers grows fast, skill utilisation levels might fall, due to the filtering of new graduate workers down occupational hierarchies.

Experiences from Indian banks

Sudhir Chandra Das, Faculty of Commerce, Banaras Hindu University, India

» Full paper: ilera-2019-paper-76-Das.pdf

Motivation and Objectives: Although the banking sector in India is on the growth trajectory and providing vast opportunities of employment, however, many types of psychological problems i.e. stress, strain, anxiety, have not been looked upon. The empirical observation reveals that overloading and extreme burden of work, strict time pressure of completion of tasks, more than 12 hours of work duration, long travel, fear of termination of job contract etc. are very common problems among banking sector employees (Kishori  &  Vinothini , 2016; Ementa & Ngozi, 2015; Ali et al ,2013; Katyal et al., 2011). As a result, the bank employees suffer from extremely high level of stress, frustration, disappointment, depression and many types of other psychological problems which are decreasing the employee efficiency on work and also resulting in dissatisfaction with their work as well as imbalance in their family matter also (Kumar & Sundar, 2012). In this context sustainable bank profitability or organizational effectiveness is the major concern of research nowadays. The scholar feels that through organizational citizenship behaviour, organizational effectiveness can be achieved. The main focus of the study is to identify the influences of organizational citizenship behaviours on internal and external measures of organizational effectiveness.

Participants: Researcher has used two sets of questionnaire i.e., one set (Organizational citizenship behaviour) prepared  for bank employees and second set (service quality) for the select bank customers. A total of 350 bank employees (respondents) located at Varanasi district of Uttar Pradesh province from 117 bank branches were selected through stratified random sampling technique in the proportion of 4:1 between public and private bank employees and 1:1 ratio of managerial and non-managerial (Assistant) employees. Second category of respondents comprise 400 customers for assessing service quality of organizational effectiveness which have been selected in the ratio of 4:1 from public and private banks by stratified random sampling technique. For determining the sample size for the study different formulas and published table have been consulted (e.g., Sampling and Surveying handbook, 2002; DeVaus, 2002; Krejcie and Morgan, 1970).

Measures: The study adopts eastern scale of Farh et al (1997) consisting seven items categorised into two parts namely protecting company resources (3 items) and Interpersonal harmony (4 items). The western 24 item OCB scale developed by Podsakoff et al (1990) using recommendations postulated by Schwab (1980) and Churchill (1979) consists of five subscales, namely: altruism, conscientiousness, sportsmanship, courtesy and civic virtue have been adopted in the study. It has demonstrated acceptable psychometric properties in previous studies (Hui, Law & Chen, 1999; Moorman, 1991; Niehoff & Moorman, 1993). The reliability coefficients for the subscales ranged from 0.70 to 0.85.   The study has used service quality measures with four components (26 items) namely customer perceptions of service reliability (Parasuram et al., 1985), perceived expertise of employees (Crosby et al., 1990), customer’s trust in the company (Crosby, Evans & Cowles, 1990), and customer willingness to cooperate (Kelley, Skinner & Donnelly 1992) as external organizational effectiveness. For measuring internal effectiveness, the study identifies two important scales (objective measures), namely-net profit per employee (Adopted from Orlando & Nancy, 2001) and HR cost per employee (adopted from Yen & Niehoff, 2004) based on extensive literature survey (e.g., Friedlander & Pickle, 1968; Price, 1968; Campbell, 1977; Walz & Niehoff, 2000; Rego & Cunha, 2008; Podsakoff, Whiting, Podsakoff & Blume, 2009).

Construct Validation: Prior to establish relationship between organizational citizenship behaviour and organizational effectiveness, the study adopted the scientific validation process. Initially, all of measures of OCB and OE subjected to reliability coefficient as per standard of Nunnally (1978), secondly, common method variance have been checked (Organ et al., 2006) using Harman’s one factor test. Finally, construct were established through convergent validity (Campbell & Fiske, 1959) and discriminant validity (Campbell & Fiske, 1959). That means the study has adopted western and eastern scale after following reliability and validation process.

Data Analytic: For examining the influences of organizational citizenship behaviours on organizational effectiveness, Ordinal Logistic Regression (PLUM) model have been applied. The Ordinal Regression procedure (referred to as PLUM) allows building models, generating predictions, and evaluating the importance of various predictor variables in cases where the dependent (target) variable is ordinal in nature. The design of Ordinal Regression is based on the methodology of McCullagh (1980). It can be considered as either a generalisation of multiple linear regressions or as a generalisation of binomial logistic regression.

Results and Discussions: Initially, thirty indicators of six dimensional OCB were taken as predictors for assessing their effects on eight dimensional aggregated score of organizational effectiveness. It is interesting to note that out of thirty indicators, only seventeen variables were found significant and create 55.8% variation on organizational effectiveness.  It is known fact that organizational citizenship behaviour (OCB) has generally been associated with organizational effectiveness. However,  research of  Borman (2004); Vigoda-Gadot (2007); Sevi (2010) has shown that this may not always be the case and that certain types of organizational citizenship behaviour may be inimical to organizational effectiveness by uncomfortable the fulfilment of specific formal goals. Finally, the hypothesis formed that OCB creates significant variation on OE was partially supported. These findings support prior research linking OCB to various indicators of organizational effectiveness (e.g., George & Bettenhausen, 1990; Karambayya, 1990; MacKenzie et al., 1991, 1993; Podsakoff et al., 1997; Podsakoff & MacKenzie, 1994; Turnipseed & Murkison, 2000; Walz & Niehoff, 2000; Werner, 1994; Organ’s; 1988; MacKenzie et al., 1991, 1993; Organ, 1988; Posdakoff et al., 1997; Appelbaum et al., 2004; Bienstock et al., 2003; Bolino & Turnley, 2003; Bambale, 2011; Tai et al. 2012; Magliocca & Christakis ,2001; Kark ,2004; Walz & Niehoff, 1996; Yoon & Suh, 2003; Kataria et al., 2013; Podsakoff et al., 2009). The positive impact of organization citizenship behavior on organizational effectiveness also has been supported by different studies (Castro, 2004; Turnipseed & Rassuli, 2005; Organ, Podsakoff & MacKenzie 2006; Kumari & Thapliyal, 2013). Dimensions of OCB predict profitability of the bank branches positively and significantly confirmed by Nawaser (2015).

Conclusive Remarks: Influence of OCB not found much influential as only 17 variables out of 30 observed significant variation. Although there are sufficient number of antecedents of OCB namely Personality, Attitude, Leader characteristics, Job satisfaction, Role perception, Organisational commitment, Job embeddedness, Organisational justice, HR practices, Person organisation fit, Job characteristics, Empowerment, Competency, Feedback, Employee engagement, Perceived organizational support, Organizational climate, Materialistic attitude, Organizational silence and Psychological capital . But human resource (HR) practice influences more OCB through job embeddedness, POS, and trust (Fatima et al 2015). Further, the literature indicates that all activities which make up the human resources management, i.e., recruitment and selection, motivation and reward, evaluation and development, may contribute to the emergence of citizenship behaviours (Organ, Podsakoff & MacKenzie, 2006; Sun, Arya & Law, 2007; Snape & Redman, 2010; Husin, Chelladurai & Musa, 2012; Fu, 2013). Several other authors in cross cultural researchers stated that HR practices play an important role in motivating employees’ OCB and firm’s performance (e.g., Snape and Redman 2010; Takeuchi et al 2009; Zacharatos et al 2005; Omari et al 2012; Mukhtar et al 2012; Babaei et al 2012).

Key Words: Human resources, organizational citizenship behaviour, organizational effectiveness, banking industry, service quality, internal and external effectiveness.