What effect has the   recession had on UK       managers?                Professor Les Worrall FCMI                   Cove...
From NICE to DRAG  • Economists have labelled the pre-Lehman boom    period as NICE - Non-Inflationary Continuous    Expan...
"And we will never return to the old boom and bust."Gordon Brown in his Budget Statement of 21st March 2007
The Quality of Working Life Series • Began in 1997 • Repeated 1998, 1999, 2000, 2001, 2005 &   2007 with a partial study i...
Themes in the research• Assessing the scale and nature of organisational change and their  effects and impacts• Assessing ...
What has happened toorganisational growth/decline         since 2007?
Organisational growth/decline 50                                             48 45 40                                38 35...
Sector differences in growth/decline                      in 2012  60                    Public              Private  50  ...
How much organisational change      has there been?    What effects has it had?
The experience of organisational change                 in 2012                                          Charity/   Public...
Negativity to change by level in the                  hierarchy in 201280% of junior managersdisagreed that the effect ofc...
Harder, Faster, Longer  • 66% said the pace of work had increased  • 76% said the volume of work had increased  • 78% said...
Impact of organisational change  • Significant attitudinal shifts – increased job insecurity,    reduced task discretion a...
The effects of organisational change  • REDUCED – loyalty to the organisation, morale,    motivation, sense of job securit...
Your organisation as a place         to work
Some changes from 2007 to 2012  • Overall job satisfaction declined from 62% to 55%  • The percentage thinking that senior...
The organisation as a place to work            by level in the hierarchy in 2012      Percentage agreeing or strongly agre...
Organisation as a place to work by            level in the hierarchy                                                      ...
The organisation as a place to work by                   sector in 2012                                                   ...
Organisation as a place to work by                    sector                                           proud              ...
Organisation as a place to work 2007 and             2012 compared                                                        ...
Organisation as a place to work:           public sector 2007 and 2012                                        Proud to wor...
What are the prevailing leadership        styles in the UK?     How are they changing?
Leadership styles 2004, 2007 & 2012                                      Bureaucratic                                     ...
Leadership styles by sector, 2012                                          Bureaucratic                                   ...
Leadership styles of growing and         declining private sector firms                                   Authoritarian   ...
Authoritarianism and employee                engagement in 2012                                                           ...
Which leadership styles most enhance/depress          employee engagement?                                 From Worrall an...
Leadership styles and reciprocal trust                           Entrepreneurial                              70%         ...
Do managers feel any healthier?
Changes in symptoms since 2007                                                        %         %                         ...
Absence, job satisfaction and            motivational state in 2012                                         Average days  ...
Some key points from 2012  • 45% reported difficulty in concentrating  • 30% had found difficulty in coping  • 15% had had...
Symptoms of ill-health and             organisational growth in 2012                                            Lack of ap...
Symptoms by level in the hierarchy in                 2012                                                                ...
Incidence of symptoms by sector in                    2012                                             Constant tiredness ...
Inability to cope by detailed sector in                      2012                                      % who felt sometime...
What has happened to working           hours?What effect does working long        hours have?
Percentage of managers working over     their contract hours 2000-2012  50  45  40  35  30                                ...
The effect of working long hours                                        Very                                Very       %  ...
Summary of key issues and predictions for the next          year
Summary of key changes (1)• Decline and stalled growth• Some growth in private sector but significant  decline in the publ...
Summary of key changes (2)• Job satisfaction and employee engagement  have declined especially in the public sector• Leade...
Summary of key changes (3)• Managers are working harder, faster and  longer with less role autonomy and task  discretion• ...
Is there light at the end of the tunnel?
Some predictions (1)• 2013 – “a hard year of slog”; a “groundhog year”; triple dip  recession? austerity to last to 2018?•...
Some predictions (2)• “in 2013 increased hours of work and greater  work intensity, rather than job cuts or further pay  r...
Worrall L and Cooper C.L. (2013) Improving the Quality of Working Life: positivesteps for senior management teams. London:...
Cmi presentation   effect of the recession on uk managers les worrall coventry university
Cmi presentation   effect of the recession on uk managers les worrall coventry university
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Cmi presentation effect of the recession on uk managers les worrall coventry university

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What effect has the recession had on UK Managers by Les Worrall (Chartered Management Institute / Coventry University).

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Cmi presentation effect of the recession on uk managers les worrall coventry university

  1. 1. What effect has the recession had on UK managers? Professor Les Worrall FCMI Coventry University© Les Worrall
  2. 2. From NICE to DRAG • Economists have labelled the pre-Lehman boom period as NICE - Non-Inflationary Continuous Expansion • They have labelled the “recovery” as DRAG - Deficit Reduction Anaemic Growth • Essentially we have moved from a NICE period of debt-fuelled lunacy to a DRAG period of economic self-flagellation and austerity • What effect has the NICE to DRAG shift had on UK managers?© Les Worrall
  3. 3. "And we will never return to the old boom and bust."Gordon Brown in his Budget Statement of 21st March 2007
  4. 4. The Quality of Working Life Series • Began in 1997 • Repeated 1998, 1999, 2000, 2001, 2005 & 2007 with a partial study in 2004 • 2008 replicated in Australia and planned to run in Australia again in early 2013 • Fortunately, a study was undertaken in July 2007 just before the credit crunch hit • Good opportunity to run the survey in 2012 to look at the effect of recession on managers, their jobs, the pressures affecting them and their organisations © Les Worrall
  5. 5. Themes in the research• Assessing the scale and nature of organisational change and their effects and impacts• Assessing changes in leadership styles and exploring their effects• Examining how organisations’ health has changed• Assessing changes in managers’ health and wellbeing• Looking for changes in work patterns, work life balance, work intensification and extensification and their effects• Looking at changes in job satisfaction, employee engagement, task discretion, job control, job security, morale, motivation etc• Looking at changes in relationships with line and senior managers, reciprocal trust, communications, behaviours etc• Looking at differences by sector, by level in the organisation, by firm size© Les Worrall
  6. 6. What has happened toorganisational growth/decline since 2007?
  7. 7. Organisational growth/decline 50 48 45 40 38 35 33 31 31 30 25 2007 20 19 2012 15 10 5 0 Declining Stable Growing Is your organisation declining, growing or stable?© Les Worrall
  8. 8. Sector differences in growth/decline in 2012 60 Public Private 50 47% in decline 19% in decline 15% growing 44% growing 40 Declining rapidly Declining 30 Stable Growing 20 Growing rapidly 10 0 Charity Public sector Private sector Total 2007 A tale of two sectors Private - 60% growing, 14% declining Public - 32% growing, 26% declining© Les Worrall
  9. 9. How much organisational change has there been? What effects has it had?
  10. 10. The experience of organisational change in 2012 Charity/ Public PrivatePercentage All NFP sector sectorOrganisational restructuring 74 91 76 83Cost reduction programmes 74 91 76 82Redundancy - voluntary 43 78 30 53Culture change programmes 52 57 46 51Changed employees terms and conditions 46 61 37 49Redundancy - compulsory 41 47 37 42Delayering 18 39 21 29Increased use of temporary/agency staff 24 23 26 24Outsourcing 17 29 21 24Merger/acquisition 12 14 25 19Offshoring 2 2 12 6 Change is pervasive, multi-facetted, unrelenting and primarily driven by cost reduction © Les Worrall
  11. 11. Negativity to change by level in the hierarchy in 201280% of junior managersdisagreed that the effect ofchange was to increase morale Morale increased Director 80 70 Senior Accountability 60 Motivation increased increased Middle 50 40 Junior 30 20 Job control increase Job insecurity increased 10 0 Flexibility increased Loyalty increased Decision making faster Wellbeing increasedThe figures show the percentage of respondents who DISAGREED with the statement © Les Worrall
  12. 12. Harder, Faster, Longer • 66% said the pace of work had increased • 76% said the volume of work had increased • 78% said the pressure to work harder had increased • 61% said the pressure to work longer hours had increased • All measures were at their highest in the public sector© Les Worrall
  13. 13. Impact of organisational change • Significant attitudinal shifts – increased job insecurity, reduced task discretion accompanied by increased surveillance through performance monitoring • Significant increases in workplace pressure – to work harder, faster and longer with clear signs of work intensification and extensification • Significant impacts on sense of wellbeing, job satisfaction, loyalty, employee engagement, morale • Significant differences between views inside and outside the boardroom • Significant changes in the managerial labour process?© Les Worrall
  14. 14. The effects of organisational change • REDUCED – loyalty to the organisation, morale, motivation, sense of job security, sense of wellbeing, sense of being in control of one’s job, employee engagement, job satisfaction • INCREASED – pace of work, volume of work, pressure to work harder, faster and longer, sense of workplace surveillance and being controlled • CONCERNS – change does not achieve its objectives and has negative consequences – key skills, knowledge and experience are lost, risk aversion increases, expected productivity gains are not achieved • CONCERNS – organisations and employees are being affected by waves of overlapping change© Les Worrall
  15. 15. Your organisation as a place to work
  16. 16. Some changes from 2007 to 2012 • Overall job satisfaction declined from 62% to 55% • The percentage thinking that senior management was managing change well declined from 45% to 30% • The percentage thinking that senior managers were committed to promoting employee wellbeing declined from 55% to 39% – the largest decline in any of our comparable measures • The percentage of managers who felt that they were treated fairly by their organisation fell from 60% to 54% • The percentage thinking their organisation was a good employer declined from 69% to 64%© Les Worrall
  17. 17. The organisation as a place to work by level in the hierarchy in 2012 Percentage agreeing or strongly agreeing with each Senior Middle Junior Directors All statement managers managers managers I feel proud to work for my current organisation 85 67 59 52 64 My organisation is a good employer 80 68 59 56 64 I have a strong sense of attachment to my 83 67 55 55 63 organisation I feel well informed about what is going on in my 83 60 45 41 54 organisation I feel fairly treated by my organisation 76 54 49 44 54 Employees are wary about taking time off work 24 30 32 36 31 even when they are ill I have trust and confidence in senior managers 72 50 35 27 43 I believe that senior managers have trust and 82 69 61 39 62 confidence in me I feel motivated to do my best for my organisation 88 72 62 58 68 I would recommend my organisation to others as a 72 53 49 42 52 good place to work If I could find another job, I would leave 19 32 38 47 36 I feel empowered to make decisions within my 85 63 51 34 56 organisation Senior managers in my organisation are committed 62 42 34 27 39 to promoting employee wellbeing This organisation has a clear sense of direction 74 52 48 48 53 I think senior management manage change well in 62 32 20 21 30 my organisation Overall, I am satisfied with my job 80 58 49 46 55© Les Worrall
  18. 18. Organisation as a place to work by level in the hierarchy Directors Senior managers proud Middle managers 90 satisfied good employer Junior managers 80 70 manage change attachment 60 50 40 sense of direction 30 well informed 20 10 employee wellbeing 0 fairly treated empowered wary would leave trust recommend trusted motivated© Les Worrall
  19. 19. The organisation as a place to work by sector in 2012 Charity/not Public Private Percentage agreeing or strongly agreeing with each statement All for profit sector sector I feel proud to work for my current organisation 78 56 67 64 My organisation is a good employer 72 56 70 64 I have a strong sense of attachment to my organisation 75 60 63 63 I feel well informed about what is going on in my organisation 63 45 60 54 I feel fairly treated by my organisation 64 44 60 54 Employees are wary about taking time off work if they are ill 22 34 31 31 I have trust and confidence in senior managers 53 30 53 43 I believe that senior managers have trust and confidence in me 68 54 68 62 I feel motivated to do my best for my organisation 74 64 70 68 I would recommend my organisation as a good place to work 61 43 58 52 If I could find another job, I would leave 34 42 30 36 I feel empowered to make decisions within my organisation 62 51 59 56 I think senior managers are out of touch with my organisation 16 38 28 31 Senior managers are committed to promoting employee 52 30 44 39 wellbeing This organisation has a clear sense of direction 53 42 62 53 I think senior management manage change well in my 34 18 39 30 organisation Overall, I am satisfied with my job 63 49 60 55© Les Worrall
  20. 20. Organisation as a place to work by sector proud satisfied 80 good employer Charity 70 manage change 60 attachment Public 50 40 Private sense of direction well informed 30 20 10 employee wellbeing fairly treated 0 out of touch wary empowered trust would leave trusted recommend motivated© Les Worrall
  21. 21. Organisation as a place to work 2007 and 2012 compared 2007 Proud to work for my 2012 organisation 80 Organisation is a good I am satisfied with my job 70 employer 60 50 Senior management are 40 I feel well informed managing well 30 20 10 Clear sense of direction 0 I feel fairly treated I have trust in senior Clear about my role managers Organisation committed Senior managers have to employee well-being trust in me I feel empowered© Les Worrall
  22. 22. Organisation as a place to work: public sector 2007 and 2012 Proud to work for my 2007 organisation 2012 80 Organisation is a good I am satisfied with my job 70 employer 60 50 Senior management are 40 I feel well informed managing well 30 20 10 Clear sense of direction 0 I feel fairly treated I have trust in senior Clear about my role managers Organisation committed Senior managers trust to employee well-being Empowered to make decisions© Les Worrall
  23. 23. What are the prevailing leadership styles in the UK? How are they changing?
  24. 24. Leadership styles 2004, 2007 & 2012 Bureaucratic 45. 0% Paternalistic 40. 0% Reactive 35. 0% 30. 0% Suspicious 25. 0% Authoritarian 20. 0% 15. 0% 10. 0% Entrepreneurial 5.0 % Risk-averse 2012 .0% 2007 2004 Trusting Accessible Consensual Empowering Secretive Innovative© Les Worrall
  25. 25. Leadership styles by sector, 2012 Bureaucratic 70 Charity Entrepreneurial Authoritarian 60 Public sector 50 Paternalistic 40 Reactive Private sector 30 20 Consensual 10 Risk-averse 0 Trusting Accessible Innovative Empowering Suspicious Secretive© Les Worrall
  26. 26. Leadership styles of growing and declining private sector firms Authoritarian 50 Innovative 45 Bureaucratic 40 35 Trusting 30 Reactive 25 20 15 10 Paternalistic 5 Secretive Declining 0 Growing Entrepreneurial Risk-averse Consensual Suspicious Empowering Accessible© Les Worrall
  27. 27. Authoritarianism and employee engagement in 2012 Non-authoritarian Authoritarian My organisation is a good employer 76.3% 35.7% Overall, I am satisfied with my job 67.3% 27.6% I feel fairly treated by my organisation 64.8% 27.7% I have trust and confidence in senior managers 54.5% 17.6% I would recommend my organisation to others as a good place to work 63.1% 26.6% I feel empowered to make decisions within my organisation 66.3% 32.2% I feel proud to work for my current organisation 74.0% 40.1% Senior managers are committed to promoting employee wellbeing 48.8% 15.9% I believe that senior managers have trust and confidence in me 72.1% 39.3% I feel motivated to do my best for my organisation 76.5% 48.2% I feel well informed about what is going on in my organisation 62.1% 34.9% I have a strong sense of attachment to my organisation 70.6% 44.1% I think senior managers are out of touch with my organisation 22.8% 49.5% If I could find another job, I would leave 26.3% 56.9%© Les Worrall
  28. 28. Which leadership styles most enhance/depress employee engagement? From Worrall and Cooper, 2013
  29. 29. Leadership styles and reciprocal trust Entrepreneurial 70% Low trust Authoritarian 60% Innovative 50% High trust 40% Bureaucratic Accessible 30% 20% 10% Reactive 0% Empowering Risk-averse Consensual High trust – I trust senior Suspicious Paternalistic management and they trust me Secretive Low trust – I don’t trust them© Les Worrall and they don’t trust me
  30. 30. Do managers feel any healthier?
  31. 31. Changes in symptoms since 2007 % % Sometimes Sometimes Percentage Change or often or often 2012 2007 Having difficulty concentrating 45 37 8 Avoiding contact with other people 33 25 8 Insomnia / sleep loss 60 55 5 Loss of sense of humour 36 31 5 Feeling unable to cope 30 25 5 Feeling or becoming angry with others too easily 45 41 4 Constant irritability 37 33 4 Mood swings 31 27 4 Difficulty in making decisions 27 23 4 Unable to listen to other people 25 21 4 Constant tiredness 61 58 3 Feeling nauseous or being sick 18 15 3 Indigestion or heartburn 36 34 2 Panic or anxiety attacks 15 13 2 Muscular tension / aches and pains 57 56 1 Headaches 47 46 1 Lack of appetite or over-eating 47 48 -1© Les Worrall
  32. 32. Absence, job satisfaction and motivational state in 2012 Average days Motivational state absence Not motivated at all 11.3 Not motivated 5.0 Neither 3.7 Motivated 2.9 Highly motivated 1.3 Total 3.7 I am satisfied with my Average days job absence Strongly disagree 9.1 Disagree 5.2 Neither 3.9 Agree 2.9 Strongly agree 1.2© Les Worrall Total 3.7
  33. 33. Some key points from 2012 • 45% reported difficulty in concentrating • 30% had found difficulty in coping • 15% had had anxiety or panic attacks • 60% had had difficulty sleeping • All but one of our 17 measures got worse • The percentage reporting suffering stress increased from 35% to 42% • The percentage reporting suffering from depression increased from 15% to 18% • Deterioration was worst on many of the measures that affect your ability to do your job – difficulty in concentrating, sleep loss, avoiding other people, feeling unable to cope, irritability© Les Worrall
  34. 34. Symptoms of ill-health and organisational growth in 2012 Lack of appetite/over- eating Having difficulty 80 Indigestion/heartburn concentrating 70 Unable to listen to other 60 Insomnia/sleep loss people 50 40 Mood swings Headaches 30 20 Avoiding contact with 10 Declining Aches and pains other people 0 Stable Growing Feeling unable to cope Feeling nauseous Constant tiredness Panic/anxiety attacks Becoming angry with Constant irritability others too easily Difficulty in making Loss of sense of humour decisions© Les Worrall
  35. 35. Symptoms by level in the hierarchy in 2012 Director Lack of appetite or over- Senior manager eating Having difficulty 80 Middle manager Indigestion or heartburn concentrating 70 Junior manager Unable to listen to other 60 Insomnia / sleep loss people 50 Mood swings 40 Headaches 30 20 Avoiding contact with 10 Muscular tension / aches other people 0 and pains Feeling nauseous or Feeling unable to cope being sick Constant tiredness Panic or anxiety attacks Feeling or becoming Constant irritability angry with others too… Difficulty in making Loss of sense of humour decisions© Les Worrall
  36. 36. Incidence of symptoms by sector in 2012 Constant tiredness Charity/NFP Panic or anxiety attacks 70 Insomnia / sleep loss Feeling nauseous or 60 Muscular tension / being sick 50 aches and pains Public sector 40 Unable to listen to other Lack of appetite or over- people 30 eating 20 Private sector Difficulty in making 10 Headaches decisions 0 Having difficulty Mood swings concentrating Feeling or becoming Feeling unable to cope angry with others too… Avoiding contact with Constant irritability other people Indigestion or heartburn Loss of sense of humour© Les Worrall
  37. 37. Inability to cope by detailed sector in 2012 % who felt sometimes or often Business sector unable to cope Central/local government 43 Education 28 Health/social care 24 Other 20 Banking/insurance/finance 13 Engineering 12 Manufacturing 11 Transport 9 Other business services 8 Uniformed/emergency services 8 Computer/IT services 7 Construction 6 Sales/marketing/advertising 4 Utilities 4 Retail 3 Tourism/hospitality/leisure 2© Les Worrall
  38. 38. What has happened to working hours?What effect does working long hours have?
  39. 39. Percentage of managers working over their contract hours 2000-2012 50 45 40 35 30 2000 25 2005 20 2007 2012 15 10 5 0 None 30 mins 1 hour 90 mins 2 hours or more© Les Worrall
  40. 40. The effect of working long hours Very Very % -ve No +ve Percentage -ve +ve Negative effect effect effect effect effect 2012 Your time for exercising 24 47 27 1 0 72 Your stress levels 19 40 37 5 0 59 Your social life 14 44 41 1 0 58 Your psychological health 14 42 41 3 0 56 Your involvement in community 19 36 43 1 1 55 activities Your physical health 13 41 45 1 0 54 Your opportunity for professional 13 38 42 6 1 51 development Your relationship with your 7 42 50 1 1 49 spouse/partner Your morale 5 29 57 7 1 35 Your productivity 3 21 40 33 3 24 Your relationship with your 2 15 67 16 0 17 colleagues© Les Worrall
  41. 41. Summary of key issues and predictions for the next year
  42. 42. Summary of key changes (1)• Decline and stalled growth• Some growth in private sector but significant decline in the public sector• Increased pace, variety, complexity and impact of organisational change• Primacy of cost reduction driven change – change is “all about” taking out costs but cost reduction has its costs• Directors have much rosier view – are they out of touch and delusional?
  43. 43. Summary of key changes (2)• Job satisfaction and employee engagement have declined especially in the public sector• Leadership styles – more bureaucratic, authoritarian and risk-averse and compared unfavourably to Australia in 2008• Have people lost faith and trust in senior management?• Deterioration in many of our workplace health measures especially those that impact on managers’ ability to do their jobs
  44. 44. Summary of key changes (3)• Managers are working harder, faster and longer with less role autonomy and task discretion• Is managerial work being degraded despite the hype about empowerment and job enrichment?• Strong relationship between organisational health and employee health• Trust relations with senior management and line management have weakened
  45. 45. Is there light at the end of the tunnel?
  46. 46. Some predictions (1)• 2013 – “a hard year of slog”; a “groundhog year”; triple dip recession? austerity to last to 2018?• Pay will continue to lag behind inflation reducing disposable income• If disposable income is low and the government austerity agenda continues, where can growth come from?• “Workplace disgruntlement in the private sector will …. take the form of simmering distrust of bosses, especially those who adopt the trendy management speak mantra of employee engagement while piling the pressure on overstretched staff”• Increased resistance/militancy in the public sector
  47. 47. Some predictions (2)• “in 2013 increased hours of work and greater work intensity, rather than job cuts or further pay restraint, are forecast to be the main drivers of higher productivity and unit labour cost control”• “Job insecurity is forecast to remain at the heightened levels prevailing since the financial crisis first struck in 2008. People in work will maintain ‘a grin and bear it’ attitude to their jobs and work as hard as required by their employers, indeed in many cases welcoming the opportunity of longer hours to support squeezed incomes”• Source: John Pilpott - http://media.wix.com/ugd//44bcc3_61cccb92b4a2187bd0edca623e70c5c3.pdf
  48. 48. Worrall L and Cooper C.L. (2013) Improving the Quality of Working Life: positivesteps for senior management teams. London: CMIIf you want to download the report or look at the Quality of Working Liferesources material go to: http://www.managers.org.uk/quality-working-life-resourcesIf you want to contact me, my email address is leslie.worrall@coventry.ac.uk

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