Factor 25: Role of Employee Organizations

This factor deals with the degree to which employee organizations encourage innovation.

Factor extremes as measured in survey:

Employee organizations are viewed as encouraging innovation


Employee organizations are viewed as discouraging innovation

Overview to restructuring initiatives

Organizations such as unions and formal and informal employee associations can make a contribution to the health and economic well-being of the corporation but can also be a source of resistance to new innovations. The form of relationship between the corporation and the employee organization is key to mutual support for innovation.

Possible Initiatives to Modify and Improve the Culture for Innovation

Enter into union partnerships with mutually agreed goals

Often this relationship only comes to the fore when there is a threat of action that has downsizing or business elimination as the objective. A more positive approach is for both management and labor to work on a regular basis with each other and seek to optimize each others issues with either positive results or at least results that are a worked-out compromise between the two parties.

Contract-out entrepreneurial opportunities for current employees

Often it is management’s decision to out source a particular service or part of the business process. Working with those employees who are most affected can result in a win-win situation for both parties. The redundant employees can often be a source of start-up talent for the newly out-sourced venture.