averse impact of unemployment on various other outcomes in
‘particular, on rental health (Kessler, Turner and House 1988).
There isa great deal of evidence that job less and unemploy~
rent produce signiieant deterioration in mental health (Fryer
and Payne 1986. ‘The most common outcomes of job los and
unemployment are increases in anxiety, somatic aod
“depression syraptomaiiogy (Dooley, Catalano and Witoo 1994;
Hamihon al. 1990; Kessler, House and Turner 1987; Warr,
Jackson and Banks 1968), Furthermore, there is some evidence
that unemployment increases by over twafald the risk of onset of
cinical depresion (Dooley, Catalano and Wilbon 1994). In
ition wo the welldocumented adverse eects of unemployment
fon mental heath, thre research that implicates unemployment
sa contributing facor to other outcomes oce Catalano 1991 for
' review). These outcomes inchide suicide (Breaner. 1976),
and divorce (Stack 198}; Liem and Liem 1988), child
nngleet and abuse (Steinberg, Catalano and Dooley 198), alcohol
tbuse (Dooley, Catalano and Hough 1992; Catalano ct al
19984), violence in the workplace (Catalano et al. 1998),
criminal behaviour (Allan and Stffensmeier 1989), and highway
fatalities (Leigh and Waldon 1991). Finally, there is also some
evidence, based primarily on selGreport, that unemployment
fonmbutes to. physical Wines: (Kesler, House and Turner
1887,
The adverse effect of unemployment on displaced workers are
‘not limited o the period during which they have no jobs. In most
jnsances, whea workers become their new jobs are
ignifcarily worse than the jobs they lst. Even after four years in
their new postions, thei earnings are submantally lower than
those of similar workers who were not id off (Rum 1991).
‘Because the fundamental causes of job loss and unemployment
are rooted in societal and economic processes, remedies for their
adverse socal effects must be sought in comprehensive economic
and social pobices (Blinder 1987), At the same time, various
communit\-hased programmes can be undertaken to redice the
negative social and prychological impact of uneraployment at the
local level. "There is overcheiming evidence that re-employment
reduces distress and depression syptoms and restores psychoso-
al funetioning wo pre-tnemployinent levels (Kesler, Turner and
House 1989; Vinokur, Caplan andl Williams, 1987), Therefore,
programmes for displaced workers or others who wish to become
cmployed should be ated primary at promoting and facilitating
ther re-employment of new ent into the labour force. A variety
of such programmes have been tried succesfully. Among these
are special community-based intervention programmes for create
ing new venture that in turn generate job opportaitis (eg, Last
eal. 1995), and others that focus on retraining (eg. Wolf eal.
1995).
(Of the various programmes that attempt to promote rem
ployment, the most common are job search programmes organ
ized as job clubs that attempt co intensify job search efforts (Azrin
so Bema 1060, oy eras at we ee aly
chaning job search skills and facinating tansition into rerelated manifestions. On
the other hand, oflering broader opportunites wo employees 10
participate in decision making at work can result in improved
performance, lower sa turdover and improved levels of mental
And physical well-being. A participatory syle of management
Shoull also extend to workce volvement in the improvement of
safety in the workplace; this could help to overcome apathy
‘among blue-collar worker, which is acknowledged as significant
= MANAGERIAL STYLE
factor in the cause of accidents (Robens 1972; Sutherland and
Cooper 1986).
Early work in the relationship berween managerial syle and
stress was carried out by Lewin (or example, in Lewin, Lippi
‘and White 1939, in which he docamented the streasful and un-
productive effets of authoritarian management styles. More re-
cently, Karnsck's (1979) work highlights the importance of
managers’ providing workers with grvater control at wok oF a
rmvore participative management tye. In a six-year prospective
study he demonstrated that job control fi. the freedom to use
one’s intellectual discretion) and work schedule freedom were
significant predictors of risk of coronary hean discase. Restriction
cof opportunity for participation and autonomy results i increased
epresion, exhaustion, illness rates and pill consumption. Fee
ings of being unable to make changes eanceming a job and lack
of consufation are commonly reported stesiors among blue-col-
Jar workers inthe ste indstry (Kelly and Cooper 1961), ol and
25 workers on rigs and platforms in Uhe North Sea Sutherland
and Cooper 1986) and many other blue-collar workers (Cooper
and Smith 1985). On the other hand, as Gowler and Legge (1975)
indicate, a participatory management syle can create its own
potentially stresfil situations, for example, a mismaich of formal
tind actual power, resentment of the erosion of formal power,
‘conflicting pressures both to be participative and to meet high
production standards, and subordinates’ refusal to participate.
‘Although there has been a subwantial research focus oa the
differences between authoritarian versus participatory manage
meat styles on employee performance and health there have also
been other, Miorymeratic approaches 1o managerial syle lee
nings, Cox and Cooper 1994). For example, Levinson (1978) has
focwed on the impact ofthe “abrasive” manager. Abrasive maz
agers are usually achievement-ariened, hard-criving and incell-
‘gent (similar to the type A personality, but function fess well at
the emotional level. Ar Quick and Qyick (1984) point out, he
need for perfection, the preoccupation with self and the conde
scending, eitical sje ofthe abrasive manager induce feelings of
inadequacy among their subordinates. As Levinson suggests, the
stem peor a per bath ciel and rent del
With, but as a superior, the comequences are potentially very
‘damaging to interpenional relationships and highly seul for
subordinates in the organizason.
In addition, there are theories and research which sogaest tha
the effec on employce health and safety of managerial style and
can only be understood inthe caext ofthe ature of
the task and the power of the manager or leader. For example,
Fiedler’s (1967) contingency theory suggest that there are eight
main group situations based upon combinations of dichotomies:
(the warn ofthe cations berwen the lade so flower
(the level structure imposed by the task; ane (the power of the
leader. The eight combinations could be aranged in & continuum
with, atone end (octan one leader who has good relations with
member, facing a highly strctured task and possessing strong
power, and, atthe other end (octant eight) leader who has poor
Felations with members facing a loosely sructored task and hav
ing low power. In terms of sires, ic could be argued that the
‘tants formed a continuum fram ow stress to high sures. Fide
alto examined two types of leader: the Keader who would value
most of the characteristics of the member be liked least
(the lower LPC leader) ane the kader who would see many
Positive qualies even in the members whorn he dled (the high
TC ade) Feder made spect predictions aboat the
tance of the leader. He suggested thatthe low LPC leader (wbo
had dilficulty in sceing tents in subordinates be disliked) would
bbe mont effective in octants one and eight, where there would be
very low and very high levels of stress, respectively. On the other
hhand, a bigh LPC leader (who is able to ace merits even in thore
ENCYCLOPAEDIA OF OCCUPATIONAL HEALTH AND SAFETY.he disliked) would be more effective in the middle octants, where
moderate stress levels could be expected. In general, subsequent
research (for example, Strube and Garcia 1981) has supported
Fiedler’s ideas
‘Additional leadership theorics suggest that taukoriented man=
agers or leaders create stress. Seltzer, Numerof and Bass (1989)
found that intellectually stimulating leaders increased perceived
stress and “burnout” among their subordinates. Misumi (1985)
found that production-oriented leaders generated physiological
symptoms of stress. Bass (1992) finds that in laboratory experi-
ments, production-oriented leadership causes higher levels of
anxiety and hostility. On the other hand, transformational and
‘charismatic leadership theories (Burns 1978) foeus upon the effect.
‘which those leaders have upon their subordinates who are gener-
ally more selrassured and perceive more meaning in their work.
Ichas been found that these types of leader or manager reduce the
stress levels oftheir subordinates
‘On balance, therefore, managers who tend to demonstrate
considerate” behaviour, to have a participative management
style, to be less prostuction- oF task-oriented and to prenide subor-
dinates with control aver their jobs are likely to reduce the inci-
dence of ll health and accidents at work,
ORGANIZATIONAL STRUCTURE,
Lois E.Tetrch
“Most of the articles in this chapter deal with aspects of the work
‘environment that are proximal to the individual employee. The
focus of this article, however, is to examine the impact of more
distal, macrolevel characteristics of organizations as a whole that
may affect employees’ health and well-being, That is, ae there
ways in which organizations structure ther internal environments
that promote health among the employees of that organization of,
‘comersely, place employees at greater risk of experiencing stres?
Most theoretical models of oecupational or job stress incorporate
‘organizational structural variables such as organizational size, lack
‘of participation in decision making, and formalization (Beet and
Newman 1978; Kahn and Byosicre 1992).
Organizational structure refers to the formal distribution of
work roles and functions within an organization coordinating the
various functions or subsystems within the organization to ef
ciently attain the organization's goals (Porras and Roberson
1992). As such, structure represents a coordinated set of subsyse
tems to facilitate the accomplishment of the organization's goals
and mision and defines the division of labour, the authority
relationships, formal lines of communication, the roles of each
‘organizational subsystem and the interrelaionships among these
subsystems. Therefore, organizational structure can be viewed as
4 system of formal mechanisms to enhance the understandabilty
fof events, predictability of events and control over events within
the organization which Sutton and Kahn (1987) proposed as the
three work-relevant antidotes against the stress-strain effect in
organizational ie
‘One of the earliest organizational characteristics examined as a
potential risk factor was organizational size. Contrary to the
literature on risk of exposure to hazardous agents in the work
environment, which suggests that larger onganizations or plants
are safer, being less hazardous and better equipped to handle
potential hazards (Emmett 1991), larger organizations originally
were hypothesized to put employees at greater rik of oceu-
ational stress It was proposed that larger organizations tend 10
adapt a bureaucratic organizational structure to coordinate the
ENCYCLOPAEDIA OF OCCUPATIONAL HEALTH AND SAFETY
increased complexity. ‘This bureaucratic structure would be
characterized by a division of labour based on functional special
zation, a welldefined hierarchy of authority, a system of rules
covering the rights and duties of job incumbents, impersonal
treatment of workers and a system of procedures for dealing with
‘work situations (Bennis 1969). On the surface, it would appear
that many of these dimensions of bureaucracy would actually
improve or maintain the predictability and understandabilry of
‘events in the work environment and thus serve to reduce stress
‘within the work environment. However, it also appears that these
dimensions can reduce employees’ contral over events in the work
‘environment through a rigid hierarchy of authority
Given these characteristics of bureaucratic structure, itis not
surprising that organizational size, per x has received no consis-
tent support as a macro-organization risk factor (Kahn and
Byosiere 1992), Payne and Pugh's (1976) review, however, pro-
vides some evidence that organizational size indirectly increases
the risk of stres. They report that larger organizations suffered a
reduction in the amount of communication, an increase in the
amount of job and task specifications and a decrease in coordina
tion, These effects could lead to less understanding and predict-
abilcy of events in the work cavironment as well a a decrease i
control over work events, thus increasing experienced stress
(Tetrck and LaRocco 1987)
‘These findings on organizational sie have led to the supposi-
tiom that the two aspects of organizational structure that seem to
pose the most risk for employees are formalization and centralza-
tion, Formalization refers to the written procedures and rules
governing employees’ activities, and centralization refers to the
‘extent to which the decision-making power in the organization is
narrowly distributed to higher levels in the organization. Pines
(1982) pointed out that it is not formalization within a
bureaucracy that resus in experienced stesso burnout but the
Unnecessary red tape, paperwork and communication problems
that can result from formalization. Rules and regulations can be
‘vague creating ambiguity or contradiction resulting in conflict oF
lack of understanding concerning appropriate actions to be taken
in specific uations. If the rules and regulations are too detailed,
‘employees may fel frustrated in thee ability to achieve their goals
expecially in customer of clientoriented organizations
Inadequate communication can result in employees feeling
isolated and alienated based on the lack of predictability and
“understanding of events in the work environsnent.
While these aspects of the work environment appear to be
accepted as potential risk factors, the empirical Literature on
formalization and centralization are far from consistent. The lack
‘of consistent evidence may ster from at last two sources. Fis, in
‘many of the stadies, there isan assumption of a single organiza-
tional structure having a consistent level of formalization and
centralization throughout the entire organization. Hall (1969)
concluded that organizations can be meaningfully studied as
totalities; however, he demonstrated that the degree of formaliza-
tion as well ax decision-making authority can diller within organ
laational units. Therefore, fone is looking at an individual level
phenomenon such as occupational stress, i may be more mean-
{ngful to look at the structure of smaller organizational units than
that of the whole organization, Secondly, there is some evidence
suggesting that there are individual differences in response to
‘insetural variables, For example, Marino and White (1985)
found that formalization was positively related to job stress among
individuals with an internal locus of control and negatively related
to stress among individuals who generally believe that they have
lite control over their environments. Lack of participation, on
the other hand, was not moderated by locus of control and
resulted in increased levels of job stress. There also appear to be
some cultural differences affecting individual responses to struc-
ORGANIZATIONAL STRUCTURE alltural variables, which would be important for multinational
organizations having to operate across national boundaries (Peter-
ton et al. 1998), These cular diferences also may explain the
diicaty x adopsing organizational mructres and procedure
from other ations.
Dapite dhe rather init emptial evidence implicating sruc-
tural variables as prychosocal ak fictor, it has been Tecomm-
mended that organizations should change thei structures 10 be
Aher wit fewer levels of hierarchy or aumnber of communication
shanels, more deceatralized with more deetion- making author
igy a lower levels in the organization and more integrated swith
less jb specialization (Newman and Beehr 1979), Thexe rocom-
‘mendations are consistent with organizational theorists who have
sigrested that radional burcaucrace structure may not be the
‘most efficient of healthis form of organiatonal structure (Bea
‘in 1969), This may be especially tru in ight of technological
advances in production and consmuicaton that characerze the
Postindusral workplace (Hirchbors 1991)
"The past two decades have scen considerable interest in the
redesign of organizations wo deal with external environmental
treats resulting ffom increased globalization and international
competion in North America and Western Europe (Whitaker
194}. Stn, Sandelands and! Dutton (1988) proposed that or
sanizaions react wo environmental threats by restricting informa:
tion and consrcting control. This can be expected ta reduce the
preditabily, underwandabiity and contol of work event
thereby inereasing the aes experienced by the employees ofthe
onganizadon, Therefore, vructural changes that prevent thexe
theacridigiy elfece would appear to be beneical to both the
‘organization's and employees’ health and well-being.
"The we of a matrix organizational structure is one approach
for organization wo structure ther internal erviroumens in
response to greater environmental ineabiliy. Baber (1985)
dlexribes te Heal pe of matrix organization as one in which
there are two oF more intersctng lines of authority, orgie:
fia goals are achieved through the we of skorented work
soups which are crom-{unctonal and temporary, and fancdonal
{epartmentscontinae to exist as mechanism for routine person
‘el Functions and profesional developeens. Therefore, the matrix
rgasization provides Ove organization with the needed Hebi
to be reponse to cenizormental asabiiy ithe personal have
uffcicntfecity gained from the dherication of their sie
nd an aby to lear quickly.
‘While empirical research has yt to establish the effects of this
onganizanal suuctue, several authors have suggested that the
matric organisation tray increase the stem experienced by
employees For example, Quick and Quick (1984) point out that
the muliple lines of authority (ask and functional supervisor)
found in: matix organizations increase Une potential for role
confi. Also, Hirschhorn (1991) sugges tha wi postings
‘work organizations, workers Eequenily face new challenge
‘eaqiring them to take a learning cole. This result in employees
having to acknowledge thir owe temporary incompetence and
tom of contol which can lead to increased sues. Therefore,
appears that new organizational structures such as the matrix
‘onganiation aio have potenal ak factors asociated with them.
‘Attempt to change or resign onganization, regardless ofthe
particular arecure that an organization choos to adopt, can
have sres-inducing properies ty duping securiy and sab
5, eng unceainy bpp pon, re al as,
confit which must be conffonted and resived
{Golerbscels 1502, Ths oocrinucig proper es co
Set, however, by the soesrreducing properties of organizational
development which incorporate greater empowerment and deci-
sion making acros all eves inthe onganization, enhanced open
ews in communication, colaboration and training in team
Phe crc camrn0 cna
building and conflict resolution (Golembiewski 1982; Porras and
Robertson 1993}.
Conclusion
While the lteranure suggests chat there are occupational risk fac-
{ors astociated with various Organizational structures the impact
of these macrolevel aspects of organizations appear to be indi-
reel, Organizational sructure can provide a framework t en
hance the predicabiling understandability and contol of events
in the work environment; however, the effect of structure on
employees’ health and well-being is mediated by more praxireal
workenvironment characteristics such as role characteristics and
interpersonal relations. Structuring organizations for beak ex-
ployees ax well ax healthy organizations requires organizational
flexibility, worker flexibility and attention 10 the sociotechnical
systems that coordinate the technological demands and the social
structure within the organization,
ORGANIZATIONAL CLIMATE AND
CULTURE
Denise M. Rousseau
‘The erganizational contest in which people work ix characteriard by
summers fares (eg, adi, tructar, rowan, communica
Son) aubmimed under the general concepts of organizational climate
and etre Clana refers to perecptiogs of crganizational pretioe
reponed by people who wotk Ure Rouscan 1900, Suu of
dlimate ince many of Ue tos cena cover in ongaizaional
roach. Common fears of cise include comsmuicain (as
descrbable say by epenves, confi (conarucve or dyauncional,
leadership (ay iwabes suppor fous) and reward ephas fc,
wnbether an organization is chataccriand by postive vers gate
Feeback, of reward of punishment orentason). When stucicd
together we observe that Orzacnal atures are highly inter
rele ea, eadership and ear, Climate characterizes practices
‘several oes in organizations (eg, work unit rate ae organize
Sonal ciate Seats of imate vary inthe acts they fcrs
‘pon, for example, climate fo salty or climates for service. Climate
‘cacy a dessption of the wore sein by thou dire
‘ele wit it
‘The relationship of climate to employce well-being (esate
faction, jb sress and svain) has been widely susie. Since ci
mate mcaruresrubmare the major organizational character
workers experience, virtually any stay of employee perceptions
oftheir work sting cam be thought of asa climate sy. Studies
link climate features (particularly leadership, communication
openness, paripative management und conflict resolion) with
ployee ‘aitacion and (avery) ares levels (Schneider
1085). Sues organizational climatcs are characterized by lim
ited partipaton in decisions, uke of punishment am negative
feedback (raher shan rewards and posite fecdhac\, conic
avoidance or confronation (father than problem solving, and
‘onsapportive group and leader relations. Socially supportive cli
‘mates benef employee rectal health, with lower rates of saxty
and depres in sxpportive stings (Repest 1987). Whe elec:
tive climates exist (where tembors who weract with each other
share common pereepions ofthe argaization) research observes
that shared perceptions of undesrabie organizational features are
linked with lowe rorale ad instances of prychogenic Ue (Call
gan, Pennebaker and Murphy 1982). When climate rexarch
{tops a specific focus, as in the sudy of climate for safety in an
‘organization, evidence is provided that lack of opennes in
ENCYCLOPAEDIA OF OCCUPATIONAL HEALTH AND SAFETY‘communication regarding safey issues, few rewarts for reporting
‘occupational hazards, and other negative climate features in
crease the incidence of work-related accidents and injury (Zohar
190),
‘Since climates exist at many levels in organizations ane car
‘encompas: a variety of practices, asessment of employee risk
factors needs to systematically span the relationships (whether in
the work unit, the department oF the eatire organization) atid
actviies eg, safety, communication or rewards i which em
ployees are involved. Climate-based risk factors can differ froma
fone part ofthe organization to another.
‘Culture constitutes the values, norms andl ways of behaving
Whiel organization members share. Researchers ideneify five hae
sic elements of culture in organizations: fundamental assumptions
lunconstious beliefs that shape member's interpretations, «8
views regarding time, eavizonmental hostility or sabiliy), talues
preferences for certain outcomes over others, e., service or
profit), behavioural nonmas (beliefs regarding appropriate and
appropriate behaviours, ¢., dress codes and teamwork}, patterns
of behaviours (observable recurrent practices, ¢g. structured per-
formance feedback and upward referral of decisions) and artelacts
symbole and objects used to express cultral messages, e.g, mis
sion statements and logos). Cultural elements which are more
‘uibjetive (Le, assumptions, values and norms) reflect the way
members think about and interpret their work seting. These
subjective features shape the meaning that patterns af behaviours
and artefacts take on within the organization, Culbure, like c=
mate, ean exist at many levels, including:
1 dominant organizational culture
2. subcultures associated with specific nite, snd
3. courterculmres, found in svork unite that are poorly inte-
grated with the larger organization,
Cultures can be strong (widely shared by weanber), weak (ot
widely shared), or in transition ‘characterized by gradual replace
tent of ome culture by another
In contrast with climate, culture i les frequendy sie a8 2
contributing factor to erployee well-being ot occupational Pik
‘The absener of such rewarch is due both to the tl
cmergrnce of culture ava concept i organizational
iological debates regarding the nature of culture, ts measur
rent quantitative vers qualitative), ad the appropriateness of
the concept for cross-sectional study (Rowswan 18K), According
to quantitative culare research focising om behavioural ore
and valves, ranoriented worass ae associated with higher ae
ber satisfaction and lower strain thas are consol oe bureaucra-
cally oriented norms (Rousseau 1889). Furthermore, the ext
to which the workers values are consintent with those of the
‘organization alee stew aod satiation (O'Redy aid Chatras,
1961), Weak cultures and cultures fragmented by roe coe and
rember disagreement are found to provoke stress reactions ad
‘ses in professional identities Meyerson 190), The Fagen
thon or breallown of organizational cultures de to ecnnoanic oe
poliial uphemals affects the wellbeing of merabers prychologk
fall and physically, particu ia the wake of downsizing, plant
clorings and ober effets of eoncurtent organizational resrctr
ings (inch 1987). The appropriateness of particular cultural
forms (e,hierarchie or militaristic) for modern society bas bee
challenged by several culture statis fet, Hinehhom (S64;
Rousseau 1989) concerned withthe sues and health-related out
‘eames of operaors nuclear power tchnicians and air wali
controll) and subsequent rss for the general pu
“Awesing rs he light of nlormation about organiza
Sina caluterequtes firs attention wo the extent to whi orga
zation members share oF difler i basic belies, values and norms
Differences in function, location and education create wbcaltires
ENCYCLOPAEDIA OF OCCUPATIONAL HEALTH AND SAFETY
‘within organizations and meat dhat culture-based risk factory ean
‘vary within the same organization. Since cultures tend to be stable
and resistant to change, organizational history ean aid assesment
(of risk fctors both in terms of stable and ongoing cultural features
aswell as recent changes that ean create stress associated with
turbulence (Hirsch 1967)
ture overlap «@ a certain extent, with percep
ure's patterns of behaviour being a large part of what
imate research addresses. However, organization members may
describe organizational features climate) in the saame way but
interpret them differently due to cultural andl subeultural il
‘ences (Rosen, Greenlagh and Anderson 1981), For example,
structured leadership and limited participation in decision making
may be viewed as negative and controling from one perspective
‘or as positive and legitimate from another. Social influence re
Aecting che organization's culture shapes the interpretation mer-
bers make of organizational features and activities. Thus, it would
sccm appropriate 1o assess both climate and culture simultane
‘ously in investigating the impact ofthe organization om the well-
being of members
PERFORMANCE MEASURES
AND COMPENSATION
Richard 1, Shell
‘There are many forms of compensation used i business and
government organizations Unroughout the world to pay workers
for their physical and mental consribution. Compensation pro-
vides money for human effort and is necessary for individual and
family existence in most societies. Trading work for money is a
longrestablshed practice.
linked with compensation plans
sustained human effort. Job stress can certainly exist in any work.
serting where compensation is not based o incentives, However,
physical and mental performance levels that are well above nor
‘mal and that could ead to physical injury or injurious mental
sires is more likely to be found in environments sith cert
Inds incentive compensation
Performance Measures and Stress
Performance measurements it ove form or another are wed by
roost organizations, and are essential for incentive programenes.
Performance measures (standards) can be established for output,
quality, throughput time, or any ether productivity measure. Loed
‘Kevin in IRS had this to say about measurements: “T often say
that when you can measure what you are speaking about, and
cegpres itn numbers, you know something abet i bua when you
cannot measure it, when ot expres it in mumbers, your
knowledge is a meagre and snsatiafactory kind; it_may be the
beginning of Knowledge, but you have scarcely, in your thoughts
advanced tothe stage of science, whatever the master may be.”
Perfarmance measures should be earelly linked to the fanela-
mental goals of the organization. Inappropriate perform
measurements have often had liule or n0 effect on goal atain-
‘ment, Some common criticisms of performance measures include
unclear porpose, vagueness, lack of connection (or even oppasi-
tion, for that mater to the busines strategy, unfirsess or ineoe
sistency, and their liability to be used chiely for “punishing”
people. But measurements can serve as indispensable bench-
‘marks: remember the saying, “If you don't know where you are,
you can't get to where you want to be. ‘The hott line i dhat
‘sorkers at all levels in an organization demonstrate more of the
PERFORMANCE AND COMPENSATION axlbehaviours that they are measured on and rewarded tn evince.
‘What gets measured and rewarded gets done.
Performance measures must be fair and consistent to minimize
stress among the workforce. There are several methods utilised to
tablish performance measures ranging from judgement estima-
tion guessing) to engineered work measurement techniques
Under the work measurement approach to seting performance
measures, 100% performance i defined as a “fair day's work
pace". This is the work elfor’ and ski at which an average
\wellwvained employee can work without undue fatigue while pro-
ducing an acceptable quality of work over the course of a work
shift. A. 100% performance is not maximum performance; isthe
oral or average effort and ail for a group of workers. By way
of comparison, the 70% benchmark is geacraly regarded a8 the
‘minimuny tolerable level of performance, while the 120% bench
mark is the incentive effort and skil that the average worker
should be able to attain when provided with a bonus of atleast
200% above the base rate of pay. While a ntmber of incentive
plans have been established using the 120% benchenare, thi
‘alie varies among plans. The general design erteria recom:
mended for wage incentive plans provide workers the opportunity
to cam approximately 20 t 35% above base rate if they are
sora lille and execute high effort continuously
Despite the inherent appeal of a “fic day’s work fora fair day's
pay", some posible strest problems exin with a work measure-
ment approsich to seting performance measures. Performance
‘measures aze fied in refeveuce to the normal or average perform
ance of a given work group (i, work standards based on group
238 opposed to individual performance). Thus, by definiion, a
large segment of thore working at a task will fll below average
(he. the 100% performance benchmark) generating a de-
rmand-resource imbalance that exceeds physical or mental stress
limita. Workers who have diffeuly meeting performance meas-
lures are likely to experience ses through work overload, ncaa
tive supervisor feedback, and threa ofjob low if they consiendy
perform below the 100% performance benchmark
Incentive Programmes
Inne fom or another, incentives have been used for many years.
Tor example, i dhe New Testament (U1 Timothy 26) Saint Pal
declares, “It's the hard-working farmer who ough to have the
fim share of the crop. Today, most organizations are srving (0
improve prouctiviy and quality in order to maintain or improve
their postion inthe busines word. Most often workers wil nt
five exra oF misained flor without some form of incentive
Froperly designed and implemented financial incentive pro-
srammes can help. Before any incentive programme is iaple-
Tented, some measure of performance mst be esablshed. Al
incestive programmes can be categorized as follows: direct finan
a, inet finan, ed intangble franca
Diseet financial programmes may be applied to individuals or
groups of workers. For individuals, cach employee's incentive is
fzoveraed by his or her performance relative to & standard fo
fven time period Group plans are applicable to ovo oF more
Sndividuals working as team on taka that are usally iterde=
ppendem. Each employee's group incentive i ually based ox his
fr ber base rate ad the group performance daring the incentive
period.
The motivation to muta higher ouput level sully greater
for indivihal incentives because of the opportrity forthe bi
performing worker to cart a greater incentive. However, oF
fznizaions mewe toward participative management and
Empowered workgroups and teams, group incentives unually pro-
Vide the best overall results. The group effort rales overall
vemenis 10 the toral system as compared 10 optimizing
vidual oupats. Gairsharing (a group incenive system that has
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teams for continuods improvement and provides a share, usually
50%, ofall productivity gains above a benchmark standard) is one
form of a direct group incentive programme that is wel suited for
‘the cantinuous improvement organization.
Indirect financial prograrimes are usually less effective than
direct financial programmes because direct Financial incentives
are stronger motivators. The principal advantage of indirect plans
is that they require les detailed and accurate performance meas
‘ures. Organizational policies that favourably allect moral, result
in increased productivity and provide some financial benefit to
‘employees are considered to be indirect incentive programmes. 1
is important to note that for indirect financial programmes no
exact relationship exits between employer output and Gnatcil
incentives. Examples of indirect incentive peogrammes include
relatively high base rates, generous fringe benef, awards pro-
grammes, year-end bonuses and profi-aharing.
Intangible incentive programmes include rewards Uhat do tot
hhave any (or very litle) financial impact on employees. ‘These
programmes, however, when viewed as desirable by the employ-
es, can improve productivity. Examples of intangible incenti
programmes include job enrichment (adding challenge and intrin-
sic satisfaction to the specific ask assigranent), job enlargement
(adding tasks to complete a “whole” picee of uni of work output),
rnonfinancial suggestion plans, employee invalvement groupe and
time of without any reduetion in pay:
Summary and Conclusions
Incentives in some form ae an integral part of many’ compensa:
sion plans fa gener incentive plars should be carly eval
ated tov make sore that workers afe ot exceeding sale ergonomic
or mental stresliit. This is particularly important for individ
tal direc financial plana. I is tsually a Tesier problem in group
dct, inet or tangle plans
Tnceniives ae desirable because they exhanoe productivity and
provide workers an opporuity to eam extra income or other
Denes. Gainsharing i today one of the best forms of incentive
on for any work group oF ‘cant organization that
‘wishes wo offer bors earnings an fo achive improvement in
‘workplace without ring the imposition of egauve healt
sors by the incentive plan icf
STAFFING ISSUES
Maritya K. Gowing
ih Workforce
‘The tn of worl ary ama in oth he and
treatment of employes inthis contingent werkt. Contingent
workem inl temporary workers hed hah eer
tency temporary worker hicd dicey oun and “no
voluntary” part-timers (the non-voluntary would prefer full-time
wort) andthe efermployed crac! Compatons are i
Chl de to iflrencet tthe Gein of each of thee Caer
tof meken
‘Overman (1985) vated that tbe temporary lp indy in
Woeor Earope about 30% larger tan i the United
Staten where abou "vf the wordrce mace op of taporary
worker Temporcy workers ar alma potrestent a Tay
Spin.
‘While the subgroups of contingent workers vary considerably,
the majority of parttime workers in all European countries are
women at low salary levels, In the United States, contingent
workers alo tend to be young, female and members of minority
‘groups, Countries vary considerably ithe degree to which they
ENCYCLOPAEDIA OF OCCUPATIONAL HEALTH AND SAFETY.protect contingent workers with laws and regulations cowering.
their working conditions, health and other benefirs, The United
Kingdom, the United State, Korea, Hong Kong, Mexico and
(Chile are the least regulated, with Prance, Germany, Argentina
and Japan having fatty rigid requitements (Overman 1993). A
new emphasiv on provicing contingent workers with greater benc-
fits through inereased legal and regulatory requirements wil help
to alleviate occupational stress among those workers. However,
those increased regulatory requirements may resul in employer
hiring fewer workers overall dic ta increased benefit cost
Job Sharing
JR erat contingent wok sing” whic ake
tern eps are thei br se
te jr moles esr Eline potoe sed ie
te popeathy tly by pect or cen poop otro
Clots pert come) Spt a eed ia
srr tr pps of out ats 1980 Rec
1S Inde it mo sharing he comer we dee
by wanes Howpec lke cotnt net age
Slee ae en oat tote peton of age an ur a
tna neh ela a en manag mepemis
hun he Eure Como sro te tw
Inn, wines ra towed te pee car
Ural at Hoan Hs Te Un tae ees Gov
ten inthe 19% nme sao os sang
popu tr hs conloris eras enoy er pee
Tete tre tom olen oo shar atc et 188
fee 1965 Jr deel sone ealace nek an
toa pace
Flexiplace and Home Work
Many" alternative terms are used to denote flexiplce and home
‘wark:teleconumuting, the alternative worksite the electronic cot-
tage, location independent work, the remote workplace and work
avhowe. For our purposes, chix category of work eludes “work
performed at one or mote “predetermind ocations’ such as the
home or a suelite work space away fe the comensiona fice
where atleast some of the communications maintained with the
employer occur through the wie of tlecomamunic: -
iment sich as computers, telephowes and fax machines” (PitsCate
soupes and Marcha 1981)
LINK Resurees, Ine. a privatesector firm monitoring world
wide telecommuting activity, has estimated that there were 7.5
smilion telecornmuters in 1993 in the United States out of the
cover 41.1 milion work-home households. OF these telecom>
ters 81% worked parttime for employers with less than 100
cmployees i a wide array of indhatres acs many geographical
locations. Filty-three*% were male, in contrast figures showing a
majority of females im convingent and job-sharing work. Research
With iffy US companies aso showed thatthe majority of telecom
muters were male with succesful flexible work aerangernents
lading supervisory positions both line and sta), chent-centted
work and jobs that included travel (Matti 1990), In 1992, 1.5,
rllion Canadian households had atleast one person who oper-
ated busines from home.
Lewis, Feral and Hootsman(1992) reported that, despite car
lier predictions, telecoeurmti ope. They
added that itis best established in the United) Kingtlam and
‘Germany for profemional jobs including computer specialist, a=
courtants and insurance agents.
In coarras, some hone-based work in both the United States
and Europe pays by the piece and involves short deadlines. Typ
cally, while telecommuterstend to be male, homeworkers in low
ENCYCLOPAEDIA OF OCCUPATIONAL HEALTH AND SAFETY
‘work jobs with no benefits tend to be female (Hall
Recent research has concentrated on idensijing; a) the eype of
person best suited for home work; (b) the type of work best
accomplished at home; (¢) procedures to ensure successful home
Work experiences and (dl) reasons for organizational support (Hall
1190); Christensen 1992),
‘Welfare Facilities
‘The general approach to social welfare issues aud programmes
varies throughout the world depending upon the culture and
values of the nation studied. Some of the differences in welfare
faciliies in the United States, Canada and Western Europe are
documented by Ferber, Oarrelland Allen (1991)
Recent proposals for welfare reform in the United States sug-
order to make
recipients work for their benefits. Cos estimates for welfare re-
form range from US$15 billion to $20 billion over the next five
‘year, with considerable cost savings projected for the long term,
‘Welfare administration costs in the United States for such prox
grammes as food stamps, Medicaid and Aid to Families with
Dependent Children have risen 19% from 1987 0 199), the
same percentage athe increase in the numberof beneficiaries
‘Canada has instituted a “work sharing” programme as an alter-
native to layoffs and welfare. The Canada Employment and Im-
‘migration Commission (CEIC) progranname enables employers to
face cutbacks by shortening the work week by one to three days
and paying reduced wages accordingly. For the days not worked,
the CEI arranges for the workers to drave normal tnemploy-
rent insurance benefits, an arrangement that helps to compen-
sate them for the lower wages received from their employer and
to relieve the hardships of being laid off: The duration of the
‘programme is 26 weeks, with a I2-week extension, Workers ca
lwse work-sharing days for taining and the federal Canadian gow~
ferment may reimburse the employer for a mayor portion of the
rect training costs through te "Canadian Jobs Serategy”.
Child Care
The degree of child-care support is dependent upon the sociologi-
cal underpinnings of the nation's culture (Schaach, Lowe and
Schneider 1991). Cultures thar
|. support the fll participation of women in the workplace
2. view child care as a public responsibilty rather than con
‘cer of individual faniies
8. value child care as an extension of the educational systens,
and
4. view early childhood experiences as important and formative
will devote greater resources 0 supporting those programmes
Thu, international comparisons are complicated by these fxr
factors and “hig quality eae” may be dependent on the needs
children and families in spec cures.
‘Within the European Community, France prenides the most
ormprehensve childveare programane. The Nethedands and the
United Kingdom were late im addressing thi ise. Onl 32 of|
Beis employers provided some form of chikd care in 1909.
Lama et al. (1992) present nonparcetal chikeheare case studies
from Sweden, the Netherlands, Ray, the United Kingdom, the
United States, Canada, Isae, Japan, the People's Republic of
China, Cameroon, Eat Aiea and Brazil Inthe United Stats,
approximately 3,500 private companies of the 17 million fam
nationside offer some type of chikcare asitanee to thee em
Ployees Of those firms, approximately 1,100 offer exe spend
Ing accounts, 1,000 offer taformation aud referral services ad
fewer shan 350 have onsite or nearsie child-care centres (Barra
of National Alfie 1991)
STAFFING ISSUES allIna research study in the United Stats, 44% of men and 76%
of wornen with children under six missed workin the previous
thee months for a faeilyrelated reason. The researchers ex
‘mated thatthe organizations they wuied paid over $4 milion in
salary and benefits to employees who were abseat beeause of
child-care problems (vee study by Galinsky and Hughes in Fer
ssandez 1980), A suady by the United States General Accounting
(Office in 1981 showed that American companies lose over $700
millon a year because of inadequate parental leave policies.
Elder Care
Teil take only 90 year (fom the time of this writing, 1994) for
the proportion of eldey in Japan to climb fom 7% 0 14%,
while in France it took ever 118 years and in Sweden 90 years
Before the end of the century, ote out af every four perwns in
smany member Sates of the Coramisson ofthe European Com-
tunics willbe over 60 year old. Yet, unit reoendy in Japan,
there were few iasituions forthe eel and the isue of elder
care has found sant atenton in Britain and other European
countries (Lewis, eral and Hootmans 1992). kn America, there
axe approsinatly five millon older Americans who require asi
tance with day-to-day tasks in order to remain i the comnaaniy,
and 30 milion who are curently age 68 or older. Family mem-
bers provide more than 80% of the assitance that these elderly
people need (Schartach, Lowe and Schneider 1991).
Research has shown that those employees who have eldercare
responsibilities report significantly greater overall job stress than
do other employees (Scharlach, Lowe and Schneider 1991)
‘These caretakers often experience emotional stress and physical
and financial strain. Fortunately, global corporations have begun
to recognize that difficult family situations can result in absentee-
jam, decreased productivity and lower morale, and they are be-
ginning to provide an array of “cafeteria benefits” to asst their
(The name “cafeteria” i intended vo suggest that
employees may select the henefits that would be most helpful to
them from an array of benefits) Benefits might include flexible
work hours, paid “family lines” hours, referral services for family
assistance, or a dependent-care salary-reduction aecount that al-
lows employees to pay for elder care or day care with pre-tax
SOCIALIZATION
Debra L, Nelson and James Campbell Quick
TThe process by which outsiders become organizational insiders is
known as organizational socialization. While early research on
socialization focused on indicators of adjustment such as job
satisfaction and performance, recent reacarch has emphasized the
links between organizational socialization and work stress.
Socialization as a Moderator of Job Stress
Enicring a new onganization isan inherently streafl experience.
Newcomers encounter a myriad of stressor, including mle ambi-
‘nuit ole confit, work and home conflicts, polices, ime presnare
and work overload. These stresiors can lead to distress sympsoms.
Sudies in the 1980, howeves, suggest that a propery masaged
socialization process has the potential for moderating the stressor-
“Two particular themes have emerged in the contemporary
esearch on seializatin:
1. the acquisition of information during socialization,
2. supervisory support dariag socialization,
Information acquired by newcomers during socialization helps
alleviate the consterable uncertainty in thar efor to master
their new ts, roles and interpersonal relationships. Ofte, this
saformation ix provided via formal onentaion-curaocalizabon|
progammes. In the absence of formal programmes, or (where
they exit) in addition to them, vocalization occur informally
Receat studies have indicated that neweomers who proactively
tech out information adjut more effectively (Morrbon 193)
In addition, newcomers who underestimate the stressors in their
ew ob report higher dew smpoms (Neon and Suton
‘Supervivory support during the socialization proces is of spe-
cial value. Newcomers who recehve support from their supervisors
Toe cnenseninon sooncion
report es ste from unmet expectations (Fisher 1985) and fewer
prychologicl symptoms of diate (Nelion and Quick 199). Su
pervsory support can help neweamers cope with stressors in at
least three wan. Fin, supervisors may’ provide instrumental p>
port (ruch as flexible work hours) that helps alleviate a particular
sures. Secondly, they may provide emotoual support that leads
‘newcomer to fel more efficncy in coping wath a senor.
‘Thirdly, supervisor play an important role in helping neweomers
make seme of thee new environment (Louis Mai). For example,
they can frame situations for newcomers a way that help (hens
appraise situations a threatening oe nonthreatcning.
Tn summary, socialization efforts that provide neoemaryinfor-
‘mation to newcomers and support fom supervisors eam prevent
the ses expencice from becoming distesl
Evaluating Organizational Socialization
‘The orgasizational socialization process is dynamic, interactive
and communicative, and it unfolds overtime. In tis complexity
lics the challenge of evaluating socialization efforts Two broad
approaches to measuring socialization have been proposed. One
approach consists of the stage models of socialization Fekéman
1976; Nehon 1987) These models portray socialization as a mult-
stage transition process with key variables at each of the stages.
‘Another approach highlights che various socialization tactics that
‘organizations we to help newcomers become insiders (Van
Maanen and Schein 1979)
‘With both approaches, i x contended that there are certain
‘outcomes that mark succesful socialization, Those outcomes io-
‘lage performance, job sathfaction, organizational commit-ment,
job involvement and iene co rertain with the organization,
tocialzation is a sires moderator, then distress symproms
(specifically, ow levels of distress symptoms) should be included as
an indicator of successful socialization.
Health Outcomes of Socialization
[Because the relationship between socialization and siress has only
recently received attention, few studies have included health out
ENCYCLOPAEDIA OF OCCUPATIONAL HEALTH AND SAFETY.