The ideology of managers in the management of employees in small and medium sized enterprises in Australia

Transcription

1

2 UNIVERSITY OF SOUTHERN QUEENSLAND The ideology of managers in the management of employees in small and medium sized enterprises in Australia A Dissertation submitted by William James Charles McDonald, BA, BEd, M.Ed TSTC For the award of Doctor of Philosophy 2005

3 CERTIFICATION OF DISSERTATION I certify that the ideas, results, analyses, and conclusions reported in this dissertation are entirely my own effort, except where otherwise acknowledged. I also certify that this work is original and has not been previously submitted for any other award, except where otherwise acknowledged Signature of candidate Date ENDORSEMENT Signature of supervisor/s Date

4 Abstract Alan Fox s unitarist ideology provided a useful categorisation of managerial perspectives on managing employees and the nature of organisation. However, it was an intuitive framework, developed as part of a reformist argument for a pluralist system of industrial relations. It was not based on a systematic, empirical study of managers and, while applied to research, there has been little testing of the construct. The primary research question addressed in this thesis is whether managers in contemporary SMEs exhibit unitarist characteristics. A number of subsidiary questions follow. The first set explores managers attitudes towards managerial prerogative, conflict, collective workplace relations and trade unions. Analysis of the data produced 11 unitarist dimensions. The second addresses whether organisational and personal characteristics and managers perceptions of the limitations on management are significant for SME managers ideological frameworks. The third identifies whether consultative, participative and collective practices are employed in work organisations. The definition of managerial ideology, including both managers beliefs and values and also their workplace behaviour and practices, led to testing the relationship between the unitarist dimensions and managerial practice, and managers satisfaction with employees. Finally, the thesis investigated whether there were any significant links between managerial practices and managers satisfaction with employee performance. The methodology included a mail survey of SME managers in Eastern Australia with 206 respondents, and an interview programme of 20 SME managers in Brisbane, Queensland. The significant findings of this research are, first, that consultative or participative managerial practices do not necessarily reflect a pluralist ideology or orientation. SME managers limit the scope of decisions for involving employees, and usually shopfloor employees, utilising practices that do not compromise managerial power or managerial prerogative. Second, organisational and personal characteristics are relatively unimportant contextual variables in management behaviour in SMEs, unless it was described as a family business. Third, this thesis provides an alternative to the conclusions of some industrial relations scholars that managers employ a mix of unitarist and pluralist strategies. The adoption of apparently pluralist management practices in consultation and employee participation are revealed in this research as being predominantly non-threatening to managerial prerogative and organisational power structures in workplaces in terms of who is involved or excluded, and about what matters employees are consulted or involved. The overall results of managers attitudes to collective workplace arrangements and trade unions confirm a general unitarist orientation in Australian SMEs. Fourth, the evidence does not suggest any clear binding of values and beliefs with managerial behaviour. Underpinning normative perspectives on management is an underlying commitment to protecting managers power in the work organisation. It is this fundamental political commitment that both guides and constrains strategic choice in managing employees in SMEs. Unitarist ideology is thus central to the norms of management, and goes to the core of managerial prerogative. Finally, the results indicated that SME managers in the study usually did not demonstrate strong attachments to their views on the issues presented to them. i

5 Acknowledgements Writing a doctoral thesis involves enormous opportunity costs. These are not borne solely by the researcher. The writing of a dissertation loads the burden onto family members, colleagues, and friends. I generally found the challenge of researching and writing this thesis an enjoyable if protracted exercise. Limiting the personal opportunity costs associated with my immediate career prospects extended the task over a number of years. I maintained an active role in university affairs, presenting conference papers, writing other papers not directly related to the topic, and involving myself in other academic endeavours. My wife, Doreen Wheeler, could barely contain herself at this apparent lack of commitment to the task, as it seemed to her to slip away from my control. However, she always supported the endeavour and her love and encouragement during the final two years was vital to completing the task. The heaviest burden fell on her as the task extended into our retirement. The research topic emerged from a joint research project on employee management and organisational change, which I developed in with Dr Retha Wiesner in the Department of HRM and Employment Relations at University of Southern Queensland. She agreed to be my supervisor for the dissertation, and provided considerable encouragement and assistance in the development of the topic, the design of the research instruments, the treating of the data, and in her critiques of the early drafts. I would like to thank those other colleagues who read various chapters and were helpful in their suggestions: Dr Rae Wear for reading an early draft of the material on ideology, Dr Richard Sappey, and Dr Simon Fry. Any errors are, of course, my own. My thanks are also due to Chris O Reilly, who typed out drafts of some chapters when my home computer broke down. Research on managers involves primarily the cooperation of the participants. I am grateful for the cooperation of the SME managers who took time out of their busy schedules to complete the survey. This includes those business managers on the Sunshine Coast who kindly agreed to pilot test the filling out of the questionnaire and the managers on the panel who considered the content of the surveys. The managers in the interview programme were candid in their responses and generous with their time. Funding for the research was awarded by the Faculty of Business at University of Southern Queensland. These funds covered the administration costs of the survey, the costs associated with the interview programme, data entry costs and other sundry expenses associated with the thesis. I am grateful to the Faculty for its generous assistance to postgraduate research. I thank the Research and Higher Degrees Committee for six months full-time study leave in 1998 to progress the thesis. I should also like to thank Christine Bartlett and Ruth Hilton of the Office of Research and Higher Degrees for their ongoing assistance over the years. ii

6 In May 2002, my Department provided me with a further opportunity to complete the task. I had almost achieved that objective by the end of the first semester. On both occasions the time provided placed an extra load was on my Departmental colleagues, especially Dr Simon Fry, and I thank them for that support. Soon after, I became unwell, and resigned from the University. Ten weeks later I suffered two heart attacks. That this thesis was written at all is testament to University of the Sunshine Coast security officer, Arnie De Prins, who provided me with prompt first aid, the professionalism and care of the ambulance crew from Buderim, Queensland, and the medical staff at Nambour Hospital. I would also like to thank the doctors and nursing staff at Holy Spirit Hospital in Brisbane: Dr Bruce Garlick and his crew who performed the emergency heart surgery when I suffered a second, seemingly final, heart attack; cardiologist Dr Paul McEniery; the medical staff of the Coronary Care Unit; and the staff of the cardiac ward. This experience, of course, led to a further delay in completing the task. The moral support of friends is invaluable in such an undertaking as the writing of a doctoral dissertation. I would particularly like to thank the late Patrick O Neill, my old friends, Geoff and Pam Holmes, and my former research student, Mindy Thorpe, for their constant and persistent encouragement. iii

7 Table of Contents CHAPTER 1: THE STUDY OF MANAGERIAL IDEOLOGY IN AUSTRALIAN SMALL AND MEDIUM SIZED ENTERPRISES 1 Abstract Acknowledgements List of figures List of tables List of abbreviations 1.1 Introduction Background to the research: unitarism and the Australian public policy debate Unitarism and industrial relations theory Ideology: assumptions, attitudes, perspectives and values Small and Medium Sized Enterprises Justification for research on unitarism Objective of thesis and principal research question Research methods Limitations Outline of the thesis 22 CHAPTER 2: LITERATURE REVIEW: UNITARISM AND IDEOLOGY Introduction Arrangement of the literature review Management in industrial relations research Industrial relations and small and medium sized enterprises in Australia The intellectual traditions of unitarism 'Classical managerialism and scientific management Human Relations and Neo Human Relations Characteristics of unitarist ideology Consensus and Harmony Unitarism and power The relevance of Fox s unitarist construct Unitarism as ideology Problems with the application of ideology in analyses of work organisations and industrial relations Ideology in Dunlop's Industrial Relations System Theory Ideology, action and strategic choice 57 i ii ix ix xi iv

8 2.7.4 Management and ideology Ideology and unitarism Managers and employers Ideology and managerial prerogative Empirical studies of management ideology Summary 81 CHAPTER 3 THE DIMENSIONS OF UNITARISM Introduction The four key dimensions of Fox s unitary frame of reference Attitudes towards managerial prerogative Attitudes towards conflict Attitudes towards collective workplace relations Attitudes towards trade unions Managers perspectives on the limitations on managing employees Consultation Issues Management Practices in SMEs The extent of SME managers satisfaction with organisational and employee performance Summary 119 CHAPTER 4: METHODOLOGY Introduction Arrangement of the chapter The ontology and epistemology of the study Paradigmatic considerations Research and values Critical research Critical perspectives on management Limitations on the critical approach to the research topic Research design Quantitative methodology Qualitative methodology Complementary methodologies Design of the survey questionnaire Limitations of survey methodology Validity Content validity Construct validity 163 v

9 4.5 Reliability The managerial prerogative scale The conflict scale The collective workplace relations scale The trade union scale Limitations on management of employees The degree to which managers consult employees The degree of managers satisfaction with employee performance Size of the sample Data coding Data analysis Summary 170 CHAPTER 5: INTERVIEW RESULTS Introduction Questions about managerial prerogative Questions about conflict Questions about collective workplace relations Questions about trade unions SME managers source of ideas about management SME managers attitudes towards managerial prerogative SME Managers attitudes towards conflict SME managers attitudes towards collective workplace relations Managers attitudes towards trade unions Summary 204 CHAPTER 6: SURVEY RESULTS AND DATA ANALYSIS Introduction Arrangement of Chapter The arrangement of the data from the survey questionnaire Organisational characteristics of SMEs SME size SME industry sectors SME managers estimates of unionisation in SMEs Union presence in SMEs The SME as a family business Personal characteristics SME manager s qualifications The source of SME managers ideas about management Ownership status of SME managers SME managers age and gender 217 vi

10 6.5 SME managers and unitarism Managers attitudes towards managerial prerogative SME managers attitudes towards conflict SME managers attitudes towards collective workplace relations SME managers attitudes towards trade unions Principal components analysis of the limitations variables The four key dimensions of unitarism The managerial prerogative scale The conflict scale The collective workplace relations scale The trade unions scale Summary: the unitarist dimensions The range and degree to which managers consult employees The range of issues on which managers consult employees The degree to which managers consult employees Forms of consultation Management practices Managers satisfaction with employee performance The significance of relationships between independent variables and the unitarist variables SME size and the unitarist dimensions Industry sector and the unitarist dimensions SME managers estimates of unionisation and the unitarist dimensions The presence of unions in the SME and the unitarist dimensions Family ownership of the SME and the unitarist dimensions The highest level of the SME manager s formal education and the unitarist dimensions The major source of SME managers ideas about management and the unitarist dimensions The ownership status of SME managers and the unitarist dimensions SME managers age and the unitarist dimensions SME managers gender and the unitarist dimensions SME managers perceptions of internal limitations on the management of employees and the unitarist dimensions SME managers perceptions of external limitations on the management of employees and the unitarist dimensions Summary of the significance the independent organisational, personal, and limitations variables for the unitarist dimensions Unitarist dimensions and management practice Unitarist dimensions and the range of issues on which SME managers consult employees The unitarist dimensions and the degree to which SME managers consult employees The unitarist dimensions and workplace management practices Summary of the significance of the unitarist dimensions for managerial practice 290 vii

11 6.13 The unitarist variables and SME managers satisfaction with employee performance Managerial practices and SME managers satisfaction with employee performance Summary of the findings Organisational, personal and limitations variables and the unitarist dimensions Unitarist variables and management practice Unitarist dimensions and the satisfaction variables 300 CHAPTER 7:DISCUSSION AND CONCLUSIONS Introduction Arrangement of the chapter The characteristics and contexts of SME managers ideology Organisational characteristics and managers attitudes towards the unitarist dimensions Personal characteristics and managers attitudes towards the unitarist variables Managers perceptions on the limitations to their roles and their attitudes towards the unitarist dimensions Conclusion: contingency and the unitarist dimensions SME managers: unitarist ideology and managerial practice Unitarist attitudes and consultation Unitarist attitudes and employee participation Unitarist attitudes and collective workplace practices Conclusions: unitarist ideology and managerial practice Unitarist dimensions, managerial practices and SME managers satisfaction with employee performance 7.5 Conclusions: contributions to the literature on unitarist ideology 329 REFERENCES 333 APPENDIX A viii

12 List of Figures Figure 4.1: Burrell and Morgan s Paradigm Grid 134 List of Tables Table 3.1: The sources of items in the question relating to the limits on the exercise of the management function 111 Table 3.2: The sources of items in the question on consultation with employees 113 Table 3.3: Sources of question on management practices in the workplace 115 Table 3.4: Sources of question on participative practices in the workplace 116 Table 3.5: Sources of question on performance in the workplace 118 Table 4.1: Items from the draft questionnaire related to the four dimensions of unitarism scoring a negative CVR. 163 Table 4.2: Items in the draft questionnaire related to specific matters on which managers might consult employees with a negative CVR score 165 Table 5.1: Managers businesses in the interview programme 177 Table 5.2: Operational responses to the interview questions asking managers to summarise their management philosophy and the basic principles for 182 managing employees Table 5.3: Management Attitudes Towards Sources of Conflict 185 Table 5.4: SME Managers attitudes towards the view that unions & employee associations distract from management 197 Table 5.5: SME Managers attitudes towards the view that unions have outlived their usefulness 199 Table 5.6: SME Managers attitudes towards unions 202 Table 5.7: Attitudes towards trade unions, summary of responses 205 Table 6.1: Characteristics of the organisation 212 Table 6.2: SME Size 214 Table 6.3: SME industry sector 214 Table 6.4: Managers estimates of percentage of union members in SMEs 215 Table 6.5: Managers perceptions of union presence in SMEs 215 Table 6.6: Family ownership and management of SMEs 216 Table 6.7: Characteristics of the SME manager 217 Table 6.8: SME manager s highest levels of formal education (n. = 206) 218 ix

13 Table 6.9: SME managers major sources of ideas about management 218 Table 6.10: Ownership status of SME managers 219 Table 6.11: SME Managers Age Groups 219 Table 6.12: Case by case tendency to unitarism 221 Table 6.13: Responses to unitarist items in each quartile 222 Table 6.14: Interpretation of mean scores 224 Table 6.15: SME Managers Attitudes towards Managerial Prerogative 225 Table 6.16: SME Managers Attitudes towards conflict 228 Table 6.17: SME Managers attitudes towards collective workplace relations 230 Table 6.18: SME Managers Attitudes towards Trade Unions 233 Table 6.19: Components matrix for limitations on employee management 235 Table 6.20: Mean values - limitations on employee management 236 Table 6.21: Factor matrix for SME managers attitudes towards managerial prerogative 240 Table 6.22: Mean values - SME managers attitudes towards managerial prerogative 241 Table 6.23: Factor matrix for SME managers attitudes towards conflict 243 Table 6.24: Mean values SME managers attitudes towards conflict 243 Table 6.25: Factor matrix for collective workplace relations 244 Table 6.26: Factor matrix for SME managers attitudes towards trade unions 246 Table 6.27: Mean values- SME managers attitudes towards trade unions 246 Table 6.28: The unitarist dimensions 248 Table 6.29: Unitarist practice case by case according to measures not taken by SME managers a 251 Table 6.30: Items not practised in each quartile 252 Table 6.31: Practices which SME managers indicated they did not have in place and unitarist items for which each manager indicated agreement 253 Table 6.32: Categories of consultation issues on which SME managers consult 254 Table 6.33: Proportion of SME managers consulting employees on workplace efficiency and organisational strategy 255 Table 6.34: Categories of consultation issues on which SME managers involve employees in decision-making 257 Table 6.35: Mean values - the degree to which SME managers consult employees on workplace efficiency and organisational strategy 257 Table 6.36: Discussions on consultation issues in SMEs 258 Table 6.37: Managerial practices and processes in SMEs 260 x

14 Table 6.38: Cross-tabulation of work in groups, teams or cells and autonomous/semiautonomous work groups in SMEs 261 Table 6.39: The relationship of management practices with participant and exclusionist management in SMEs 262 Table 6.40: SME managers satisfaction with workforce and organisational performance 264 Table 6.41: Mean values - SME managers satisfaction with workforce performance 265 Table 6.42: The impact of the organisational and personal variables on the unitarist dimensions 270 Table 6.43: The significance of the relationship between the limitations variables and the unitarist dimensions 271 Table 6.44: The impact of unitarist dimensions on SME managers consultation of employees on consultation issues 281 Table 6.45: The impact of unitarist dimensions on the degree to which SME managers consult employees 285 Table 6.46: Management practices variables 288 Table 6.47: The significance of the relationship between the unitarist dimensions and management practices 290 Table 6.48: The impact of the unitarist dimensions on SME managers satisfaction with employee performance 296 Table 6.49: Workplace management practices and SME managers satisfaction with employee performance 298 Table 6.50: The significance of organisational, personal and limitations variables for the unitarist dimensions 301 Table 6.51: The significance of the unitarist dimensions for management practice 302 Table 7.1: The strength of SME managers attitudes towards the unitarist dimensions and the organisational variables having significance for the unitarist dimensions 309 Table 7.2: The strength of attitudes towards the unitarist dimensions and the personal variables having significance for the unitarist dimensions 315 xi

15 List of Abbreviations ABS ACTU AIRC AMMA APPM AWA AWIRS BCA BHP CAI CEO DEIR HR HRM ILO MUA QA SME Australian Bureau of Statistics Australian Council of Trade Unions Australian Industrial Relations Commission Australian Mines and Metals Association Australian Pulp and Paper Mills Australian Workplace Agreement Australian Workplace Industrial Relations Survey Business Council of Australia Broken Hill Proprietary Limited Confederation of Australian Industry Chief executive officer Department of Employment and Industrial Relations Human resources Human resource management International Labour Organisation Maritime Union Australia Quality assurance Small and medium sized enterprise xii