On the cover of last issue’s HR Magazine, we looked at the effects of an increasingly digital HR world; how it can generate staff input and increased freedom, but also its potential drawbacks. Now, a new study presented at an international conference in Munich by Technische Universität München (TUM) and ISF München showed that German employees want more democracy in the workplace, and Federal Labor Minister Andrea Nahles called for the potential of digitalisation to be used for greater freedom.
The study showed that some two-thirds of the respondents agreed with the statement that companies should be managed more democratically. The majority found the idea of choosing their own managers attractive, and even more so the thought of participating in determining corporate strategies. On average, however, they nonetheless viewed the possibility of their wishes coming true as fairly unrealistic. Managers on the other hand, believe democracy is difficult to achieve in practice, according to the study.
Professor Isabell Welpe, Head of the TUM Chair for Strategy and Organisation commented, "Wherever people’s perspectives differ, and where it’s important to bring knowledge together that is shared by numerous individuals - that’s where the democratic approach works well. Technical change alone, unsupported by social and organizational change, cannot work."
Other research by ISF Munchen found that many companies with the technical tendency to analyse data stick rigidly to the principal of "managing by figures", which results in more decision-making power at the top. Even middle managers said that they felt they were figure-driven. Work areas that in effect lend themselves to a collaborative and independent style, such as "knowledge work", are also not exempt from more control.
Dr. Andreas Boes, ISF Board Member concluded, "We are moving towards a divide regarding democratisation of work. New possibilities for employee participation and empowerment could be instrumental in helping democratic companies toward a breakthrough. A feasible counter trend might, however, emerge in the form of power wielded by those who own the data.”