Organizational social capital – an important dimension in future psychosocial research

3rd International COPSOQ Workshop Barcelona, October 21, 2011 Tage S Kristensen [email protected]

After the Championships in South Africa: The whole French team was suspened Unique fiasco: 3 games, 1 goal, 1 point, poorest result of all. Why?

They had poor social capital

Organizational social capital The three diamonds

Collaboration

The core product or service

Justice

Trust

Organizational social capital – old Spanish wine on new bottles?

What is new about working with organizational social capital? • Social capital is a characteristic of the whole workplace and not of a particular job or department • It is a concept connected to everyday operations and the core production • It is not primarily a work environment concept, but focuses on leadership and cooperation • Productivity and employee well-being are considered as two sides of the same coin

Important point about workplace social capital • Most work environment factors are at job-level. (For instance demands, influence, meaning, monotony, etc.) • Others are at department level. (For instance quality of leadership, predictability, recognition, social support, etc.) • Social capital is primarily at company level, e.g. a characteristic of the whole company.

Trust at work NBNBNB OBS! Dialogue

Work

Bottom up

The employees trust information from management

The employees trust that the management does a good job

Horizontal

The employees trust each other

The employees trust that their colleagues do a good job

Top down

The management trusts the employees

Management trusts that the employees do a good job

OBS!

Blind trust?

Justice at work - fairness

* * ** *

Distributive justice. Are salaries, promotions, firings, recognition, fringe benefits, etc. distributed in a fair way?

Procedural justice. Are processes fair? Are recognized procedures followed? Are things done ”the right way”? (This aspect includes the ”psychological contract”).

Interactional justice: Interpersonal justice. Are employees treated in a fair way, e.g. with respect?

Informative justice. Do the employees receive sufficient information about processes? Cohen-Charash & Spector, 2001.

Organizational social capital: Collaboration Bonding, bridging and linking

Management Teams,occupations or departments

Bonding

Linking

Bonding

Bridging

Bonding

Social capital is always associated with high job satisfaction and well-being

Social capital and job satisfaction in the schools of Copenhagen Skoler Social kapital og spørgsmålet 'Hos os er stemningen præget af arbejdsglæde' 6

Hos os er stemningen præget af arbejdsglæde

5,5 5 4,5 4 3,5 3 2,5 2 1,5 1 1

1,5

2

2,5

3

3,5

Social kapital

4

4,5

5

5,5

6

Social capital and job satisfaction Job satisfaction

A study of hospital wards and municipal institutions

C D

70

E B A H

60

F

G 50 Social capital

50 Social capital project, 2009.

60

70

80

Social capital og job satisfaction in call centres

Mathiesen & Wiegman, 2009

(In)Justice and depression* A Finnish prospective study of 1,786 female hospital employees Relative risk

1,73 1.5 1,24 1,0

1,0

1.0

0.5

+

–

Respect

* Diagnosed by MD Kivimäki et al. Psychol Med 2003;33:319-326.

+

–

Procedural justice

Social capital and psychological well-being in the police force

Less stress

Social capital: Trust between colleagues and cooperation between units

Fewer depressive symptoms

Less burnout A study from Baltimore, Maryland. 2010.

Social capital and leadership

Social capital and quality of leadership in the schools of a Danish municipality Quality of leadership A C D

70

B

E F 60 G H

DK

I

50

J 40

L K Social capital 50

60

70

80

Development of social capital and quality of leadership during a one-year intervention project

Social capital, absence and turnover of personnel

Great Place to Work: A concept focusing on social capital • The five dimensions in the ”Great Place to Work” measure: - Credibility - Respect - Fairness - Pride - Camaraderie

Sickness absence of the ”50 best places to work” in Denmark, 2009

0

5

10

25

21

2,0-2,9 % 9

3,0-3,9 % 4

(No information: 6) Median absence rate 2.5 %

Oxford, 2009.

20

10

0-1,9 %

4,0-4,9 %

15

Antal arbejdspladser

Social capital and absence in China Relation between aggregate company level social capital at work and sick leave. 18 companies, 953 employees. P = 0,0012.

Lee & Zhou, 2011.

Social capital and intention to quit Intention to quit

60

A 50

G H

F

B

E

40

30

D C

20

Social capital

50 Social capital project, 2009.

60

70

80

”Great place to work” – lower turnover of employees Turnover %

Average for the US 30

De ”100 second best”

The ”100 best”

20

14 % 12 % 10

Lymann, 2008

23 %

Social capital: Quality, productivity, and innovation

Social capital og perceived service quality in call centres

Mathiesen & Wiegman, 2009

ASSOCIATION BETWEEN SOCIAL CAPITAL AND PERCEIVED QUALITY OF TREATMENT IN HOSPITALS GENNEMSNITSPOINT PÅ EN SKALA FRA 0-100 FOR TILLID OG RETFÆRDIGHED (SOCIAL KAPITAL) OG FAGLIG KVALITET, OPDELT PÅ VIRKSOMHEDER 75

AVERAGE FOR REGION COPENHAGEN 16

70

14

6

4

10

Faglig kvalitet*

7

13 2

5 3

11

12

15 65

9

1 Amager Hospital 2 Bispebjerg Hospital 3 Bornholms Hospital 4 Frederiksberg Hospital 5 Frederikssund Hospital 6 Gentofte Hospital 7 Glostrup Hospital 8 Helsingør Hospital 9 Herlev Hospital 10 Hillerød Hospital 11 Hvidovre Hospital 12 Koncernstabe 13 Region Hovedstaden Handicap 14 Region Hovedstadens Apotek 15 Region Hovedstadens Psykiatri 16 Rigshospitalet Nr/virksomhed

(ANONYMISERET)

1 60

8

55 60

65

70

Tillid og retfærdighed (social kapital)

Den røde prik i figuren illustrerer Region Hovedstadens gennemsnit. * Faglig kvalitet er et gennemsnit af følgende spørgsmål: Spm. 3. Er du tilfreds med den faglige kvalitet af det arbejde, I udfører på din arbejdsplads? Spm. 4. Oplever du, at der er klare kriterier for faglig kvalitet på din arbejdsplads? Spm. 44. Er du stolt over det arbejde, I udfører på din arbejdsplads?

TRIVSELOP 2011 – REGIONSRAPPORT 28

Trust in the coach – the road to success in American basketball

The players’ trust in the chief coach

0.44

The players’ skills and performance**

0.48

** The proportion playing on national and other selected teams Dirks. J Applied Psychol 2000; 85: 1004-1012

Results in the NCAA* basketball turnament i the US

* National Collegiate Athletic Association

Social capital and school grades A study of 88 American schools (2,167 teachers, 5,130 parents and 88 leaders) Social background of the students Grades in oral English Experience of the teachers Grades in mathematics Social capital of the schools

Leana & Pil. Organization Science 2006;17:353-366.

Trust and productivity A study of 43 companies in the US car industry

Trust* between management and employees

Higher involvement in the workplace

Increased effort: a. Productivity b. Innovation c. Cooperation

* Trust: Believing that the employees are competent, honest, reliable, and involved. Spreitzer & Mishra. Group & Organizational Management 1999;24:155-187.

Social capital and innovation in a large American company Social capital: Cooperation

Social capital: Trust

Social capital: Common goal

Tsai & Ghoshal, 1998

Sharing of knowledge

Innovation

A study of trust and collaboration between 15 independent units i a large international electronic company with 31,000 employees

Social capital and economic results

Dividend to the stockholders in the ”100 best workplaces” in the US Cumulative dividends over 6 years in companies with high social capital % 1995-2000 total 421 % 400

376 %

300

247 % 193 %

200

100

Other companies

Fulmer et al. Personnel Psychol 2003;56:965-93.

Matched companies

Trust and sales in a Canadian supermarket chain En study of the significance of the degree to which the employees’ feel being trusted by the supervisors.

Perceived trust

Organizational citizenship

Increased sales

88 supermarkets with a total of 4,000 employees. Large differences between the stores with regard to perceived trust.

Salaman& Robinson. J Applied Psychol 2008;93:593-601.

The economic development of Irma supermarkets 1996-2010 Profit before tax (mio. DKK.)

74

60

75

70

54

Josefsen starts

50

Recent numbers: 2009: 50.6 mio 2010: 78.5 mio

44

40 26.5

30

29.7

32.7

20 6.9

10

0.9 År

0 -10

-5.9

-20 -30

-29.0 -34.8

-40 1996

97

98

99

2000

01

02

03

04

05

06

07

Irma was in deep crisis and about to close down. Josefsen built up the social capital of Irma, and the economic results followed

08

Social capital, knowledge sharing og and economic growth A study of 136 knowledge-based american companies with at least 100 employees

”Social climate” Trust

Commitment based HR management

Economic growth 0,49 0,43

0,50

Collaboration

Knowledge sharing

Sale of new products (%)

Common language

Data from HR-boss

Increase in sales

Data fra knowledge workers (7 per company)

All correlations are significant. Collins & Smith. Acad Management J 2006;49:544-560.

Data after 1 year

HCL, fabulous case. From 2005 to 2010: • • • • • • • •

Fire times as many customers Trippling of income Doubling of ”market cap” (value) 50% higher customer satisfaction No 1 in job satisfaction Fortune: ”Most modern management” Harvard: ”Case study in teaching” Business Week: ”One of five emerging companies to watch out for” (Vineet Nayar. Employees first, customers second. 2010).

Social capital and satisfaction of customers, citizens and patients

Precision and customer complaints among American airlines US Airways

Complaints per 1000 passengers

Low quality United 2,0

Delta

American North West

Continental

High quality

1,0

Jet Blue

65

Up in the air. p.5.

Alaska

70

75

80

Arrivals on time %

An overall theory: Gittell’s theory on ”relational coordination” (bridging between occupational groups)

What do they have in common? • • • • • • • •

A hospital A symphony orchestra A group of souldiers in combat A building site An airline The administation of a municipality A university A prison

When is cooperation under (extra) pressure? • When we are dealing with professions with strong identity • When different groups have special knowledge • When there are status differences with regard to salary, prestige, etc. • When the groups depend on each other in order to do a good job Gittell, 2005

It is not enough that the employees have good professional skills • They must also be able to cooperate: – Coordination • Common language • Common goal • Mutual respect

– Communication • Timing and frequency • Precision • Problem solving

Bridging social capital og quality of treatment in in 9 hospitals Quality: Beddays, freedom from pain, functional ability, patient satisfaction Quality

,48

6 4

8 5

3 9 1 2

7

,43 3,84 Gittell, 2009:31.

(Relational coordination)

4,22

Bridging social capital

High social capital in hospitals A study of hip and knee surgery • Fewer beddays • More operations per employee • Sooner recovery of functional ability after surgery • Sooner freedom from pain • Higher patient satisfaction • Higher job satisfaction of employees

High social capital in Southwest Airlines • Highest number of passengers per employee • Highest proportion flying time • Highest precision • Highest passenger satisfaction • Lowest number of lost suitcases • Very high employee satisfaction • Very high level of union membership • No firing of employees – not even in 2001

Summing up

The strong triangle

Customer/citizen satisfaction or loyalty

High social capital and high job satisfaction at the workplace

High productivity, quality, and innovation

Take-home messages from recent Danish research projects on social capital • Workplaces with the same external conditions have very different levels of social capital. Local leadership and collaboration makes the difference. • There are strong associations between social capital and employee well-being, effectiveness, recognition, queality of leadesip, etc. • Workplace social capital can be improved through a systematic and determined efforts. • It appears that a high level of leadership quality is a necessary condition for developing high social capital.

Thank you for your attention

Extras

A good point? • The purpose of a workplace is not to create health and wellbeing among the employees • The purpose is to create value for the customer or citizen through high quality /productivity • But at the end of the day it appears that high quality results in pride and wellbeing among the employees

Workplace social capital: The shortest questionnaire in the world • 1. Can you trust the information that comes from the management? • 2. Does the management trust the employees to do their work well? • 3. Are conflicts resolved in a fair way? • 4. Is the work distributed fairly? 5 response options per question (0-4). Total: 0-16 points. Average for Denmark: 10.2 points. (N = 3,517).

Common knowledge, common language…

Crime rates are lower in American states with high social capital

Robert Putnam. Social capital. Measurement and consequences.

Danish companies among the ”50 best big workplaces” of Europe 1 Microsoft 4 Cisco 16 ATP 19 Irma 21 Alka Forsikring 23 EnergiMidt 25 NetDesign 27 McDonald’s

Economic equality and social capital in 50 American states

Wilander 2010

Educational performance is higher in American states with high social capital

Robert Putnam. Social capital. Measurement and consequences.

How is the individual employee influenced by the SOCIAL CAPITAL of the company?

SOCIAL CAPITAL (Collaboration, trust, justice)

Meaning

Recognition

Respect

Social support

Predictability (information)

Roleclarity

GOOD (PSYCHOSOCIAL) WORK ENVIRONMENT

WELL-BEING, JOB SATISFACTION, LOW STRESS, LOW ABSENCE, LOW PERSONNEL TURNOVER

How is productivity, quality and creativity influenced by the SOCIAL CAPITAL of the company?

SOCIAL CAPITAL (Cooperation, trust, justice)

Knowledge sharing

Help & support

Network

Motivation

ORGANIZATIONAL CITIZENSHIP

HIGH PRODUCTIVITY, QUALITY AND INNOVATION

Involvement

How is customer and citizen satisfaction and loyalty influenced by the SOCIAL CAPITAL of the company?

SOCIAL CAPITAL (Cooperation, trust, justice)

Quality of products

Focus on value for the customer

Focus on the process

Friendliness and smile

Organizational citizenship

HIGH SATISFACTION, LOYALTY AND SENSE OF OWNERSHIP AMONG CUSTOMERS AND CITIZENS

Justice and quality of leadership A study of 13 Danish companies

Justice

70

Savings bank Kindergartens Bank

Institutions for handicapped Municipal health servides

60

Home care Consulting firm

Manufacturing Machine factory

IT-company

50 Family councelling Catering

40 Printing factory

Leadership

30 30

40

50

60

70

Model for links between work environment and productivity Work environment: Job factors, group factors, company factors

Psychological factors

Behavior

Limit ! Customers/citizens

Economic result. Productivity and quality

Production/ services

Organizational citizenship, productivity and quality A study of 218 workers in 40 workteams at an American paper factory

Helpfulness

Productivity (quantity)

Good organizational

Sportsmanship

citizenship Social behavior

Podsakoff et al. J Applied Psychol 1997; 82:262-270.

Quality (few errors)

Children watch less TV in states with higher social capital

Robert Putnam. Social capital. Measurement and consequences.

Quality of life and job satisfaction at nursing homes in the US – a question of social capital 105 residents and 252 employees at 15 nursing homes

Relational coordination (Bridging social capital between occupational groups)

Quality of life of residents

Job satisfaction of the employees Gittell. 2009 p. 35-39.

Relational coordination at hospitals

Gittell, 2009.

Service climate and customer loyalty in Spanish hotels and restaurants A study of employees and customers in 114 companies

Service quality Company resources. (Education, influence)

Engagement and involvement

Service climate

Customer loyalty

*

Information from employees

Information from customers

* Customer loyalty: That the customer would like to return and would like to recommend the place to others. Salanova et al. J Applied Psychol 2005;90:1217-1227.

Sickness absence in the ”50 best companies” of Denmark in 2008 0

5

1,0-1,9 %

10

15

22

10

3,0-3,9 %

4

(No information: 4) Median absence rate 2.4 %

Oxford, 2009.

Number of companies

10

2,0-2,9 %

4,0-4,9 %

20

Social capital and job satisfaction “Social capital is a better predictor of quality of life at work and job satisfaction than the characteristics of the worker, the company or organization, and the work environment”. Requena. Social Capital, Satisfaction and Quality of Life in the Workplace. Journal of Social Indicators Research 2003; 61: 331-60.

Social capital and quantitative demands at work in the schools of a Danish municipality Quantitative demands

60 F

K

50

J 40

L

A E

H

D

G

I DK

B C

30 Social capital 50

60

70

80

Social capital and the recommendation of ”job at our workplace” to others Schools in Copenhagen Skoler Social kapital og spørgsmålet 'Jeg kan anbefale andre at søge arbejde hos os' 6

Jeg kan anbefale andre at søge arbejde hos os

5,5 5 4,5 4 3,5 3 2,5 2 1,5 1 1

1,5

2

2,5

3

3,5

Social kapital

4

4,5

5

5,5

6

Social capital and satisfaction of school children An analysis of the schools of Copenhagen How satisfied are you with your own school? (Very) satisfied

How do you feel about going to school for the time being? (Very) well

Schools with low social capital

54%

45%

Schools with high social capital

71%

52%

Social capital and the prevalence of cardiovascular disease among nurses in Chinese hospitals

2,854 nurses in 12 hospitals

Jian Li & TS Kristensen, 2011.

Stress level among hospital nurses and critical incidents A study of 293 nurses over 3 months Critical incidents (falls, medication errors, etc.)

% 3,0

2.1 2,0 2.0

2.2

1.8 1.6

1.0

1.1

1.0 1,0

0.6

0,0 0-4

4-5

5 - 5.5

5.5 - 6

6 - 6.5

6.5 - 7

Average stress score (VAS scale) in 48 units Dugan et al. J Nurs Care Qual 1996;10:46-58

7 - 10

Tension between employees and employers? Proportion reporting: “High level of tension” 0 1. Denmark 2. Sweden 3. Finland 4. Cypres 5. Estonia EU 25

10

20

30

40

50

6% 16% 17% 18% 20% 36%

24. Slovenia

49%

25. Romania

49%

26. France

49%

27. Lithuania

53%

28. Poland

53%

EQLS, 2003.

The work environment strategy of the Danish labor unions • ”The work environment strategy is built upon a number of central concepts: • The six golden nuggets • Workplace social capital • Employee well-being” ”The strategy is built on the assumption that a good work environment for the employees and high competitiveness for the companies are mutually reinforcing each other and not in conflict. A good work environment promotes high competitiveness”.

Trust and health: The association between vertical trust at work and average depression score Depression score (average)

30

28 21

20

18 16

10

0 Meget lav

Lav

Høj

COPSOQ Study, 2005. Both scales go from 0 to 100.

Meget høj

Trust (quartiles)

What is preventing higher social capital? • • • • •

Rigid boundaries between occupations Agreements and laws Habitual thinking Unflexible organizations Hierarchies, differences in power and salaries • Differences in education and training • Recruitment to jobs

Which magical power can…. • protect nurses against heart disease in China? • increase school grades of American school children? • save a Danish supermarket chain from economic bankruptcy? • transform an Indian IT-company into a unique economic success? • increase creativity and innovation among knowledge workers in the US? • result in higher productivity, job satisfaction, and patient satisfaction at the same time?

Why did Ferguson fire Roy Keane? Roy Keane had been the captain of Manchester United for many years, but he openly critizised a number of his team-mates on TV. Then he was fired.

As short as possible……..

Who’s is patient??

Gittell’s model for relationships og communication

From protection to sustainability • The old work environment thinking emphasizes reduced risk and protection of health (defensive and reactive) • A modern concept emphasizes sustainability - Humans - Capital - Goods and raw materials - Energy

A Paparazzo photo...

This is good branding

COPSOQ on the Internet

General trust in a number of countries – do people trust each other? 1.

64,5

Danmark

63,9

2.

Norge

3.

Sverige

4.

Finland

5.

62,3 56,4 53,9

Holland

13.

USA

14.

Japan

18.

Indien

21.

UK

22.

Tyskland

29.

Rusland

38.

Pakistan

69.

Portugal

78.

Tyrkiet

86.

Brasilien

42,1 42 38,3 36,9 36,1 31,2 25,7 15,7 10,4 4,8 0

Index

10

20

GT Svendsen. Økonomi & Politik 2006;42-55.

30

40

50

60

70

Building trust at work • Trust is increased by being trustworthy: – Consistent behavior: Your actions are understandable and explainable – Integrity: You do what you say and say what you do – Delegation of control: You show trust by giving important tasks and power to others – Demonstration af openness and attention: You take others’ points of view seriously

Trust and justice Justice

Sparekassen

70 Daginstitutionerne Sundhedstjenesten

60

Banken Døgninstitutionen

Hjemmeplejen Transportmateriel Maskinfabrikken

Konsulenthuset

IT-virksomheden

50 Familierådgivningen Cateringen

40 Trykkeriet

30

Trust

30

40

50

60

70

80

VIPS data 2007

90

The six rules for a fair process

* * * * * *

Consistency. Same procedure should be followed for all employees.

Objectivity. The personal preferences and sympathies of leaders should not influence the process.

Basis for decisions. Decisions should be based on reliable and relevant information.

Appeal. It should be possible to appeal and to have unfair and wrong decisions changed.

Representation. All involved parties should be involved and heard in the process.

Ethics. The process should be in accordance with fundamental ethical principles.

Leventhal. 1980.

Justice and power • ”Justice without power is powerlessness. Power without justice is tyranny” Immanuel Kant (1724-1804)

Justice and health A prospective study over 2 years of 3,773 Finnish hospital employees

Relative risk Psychological symptoms

Poor self-rated health

1.45

1,5 1.00

Sleeping problems

1.35 1.00

1.25 1.00

1,0

0,5

+

–

Elovainio et al. Health Psychol 2003;22:287-293.

+

–

+

–

Procedural justive

Justice and absence Results from a Finnish study of 31,000 public employees Relative risk of absence (at least 3 days)

2 Men

Women

1,57

1,23 1,00

1,00

1

0 Høj

Lav

Justice level Elovainio et al. Soc Sci Med 2005;61:2501-12

Høj

Lav

Poor collaboration at work and risk of depression A 2-year follow-up study of 4,815 Finnish hospital employees Relativ risiko for at få depression

1.75

*

1.5 1.13 1.0 1.0

1. 2. 3. 4.

Supportive climate Support to innovation Common visions Focus on core activity

0.5

Collaboration Good

Middle

* No association with influence or demands at work Ylipaavalniemi et al. Soc Sci Med 2005;61:111-22

Poor

Personnel turnover at the ”50 best places to work” in Denmark, 2009

0

5

10

15 13

0-4 %

19

5-9 %

11

10-14 %

4

15-19 %

2

20-29 % 30 % +

1

Median value 8 %

Oxford, 2009.

20

Number of companies

De 100 Bedste i USA (1998) sammenlignet med markedet

Hvis m investede 1.000$ for 10 år siden i de 100 Bedste Arbejdsplads

fået et afkast på 8.188$, sammenlignet med et afkast på 3.976$ hvis man h 3000. Kilde: Franklin Research & Development

HCL’s five phases on the road • • • • •

We set impossible goals We look ourselves in the mirror We create trust through transparency Turning the pyramid upside down We delegate responsibility for strategy and change to everyone

Vineet Nayar, 2010