QUALITY INSTITUTIONALIZATION IN THE PUBLIC SECTOR: THE WISCONSIN DEPARTMENT OF REVENUE STUDY

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1 QUALITY INSTITUTIONALIZATION IN THE PUBLIC SECTOR: THE WISCONSIN DEPARTMENT OF REVENUE STUDY Peter Hoonakker+, Mary McEniry~, Pascale Carayon*+ and Christian Korunka^ & Francois Sainfort*+ * Department of Industrial Engineering + Center for Quality and Productivity Improvement University of Wisconsin-Madison 1513 University Avenue Madison, WI 5376 ~ Wisconsin Department of Revenue IS&E Administration Madison, WI ^ Institut für Psychologie University of Vienna Liebiggasse 5 A-11 Vienna - Austria A questionnaire survey INTRODUCTION Total Quality Management (TQM), initially a comprehensive approach of organizational improvement mainly in the field of manufacturing, is spread out today not only in private, but also more and more in public service organizations. The tightening of budgets and especially the growing demands of citizens (customers) have accelerated the need for implementation of quality in the public sector. TQM has been shown to be effective in many companies and industries, but is not easy to implement and institutionalize in an organization, especially in public service organizations (e.g. Robertson & Seneviratne, 1995). Compared to private organizations, public service organizations are not primarily driven by the market or by consumer preferences, but by a variety of constituent groups. Furthermore, the qualitylanguage of customers and profitability is not easily adapted in public service organizations which often show a long history of centralized authority and bureaucratic procedures (Moon & Swaffin-Smith, 1998). Institutionalizing quality in a public service organization is a long-term, complex process of cultural reform that requires unprecedented technical competence and may take as long as ten years to complete, if at all (Wollner, 1992). Additionally, the meaning of quality is generally more difficult to determine in the case of service organizations, because of the intangible character of their products, which is especially true for services of public organizations (Walsh, 1995). Thus, to optimize the implementation of quality and to guarantee a successful institutionalization, comprehensive feedback about the degree of the institutionalization and about possible barriers in the structure of the organization and/or in the implementation process is strongly needed. The principles of continuous improvement, and teamwork and organizational system are often implemented through cross-functional quality teams, and the work content of such teams is usually quite well designed and rich (Hackman & Wageman, 1995). Therefore, one can predict that TQM will have positive effects on job content. Hackman and Wageman (1995) assert that the distribution of authority typically does not change much when TQM is implemented. However, the TQM principle of continuous improvement often means that employees are given opportunities for learning (Hackman & Wageman, 1995) and the TQM principle of customer focus means that employees are given direct customer contact and, therefore, some latitude on how to deal with the customers (Dean & Bowen, 1994). Therefore, TQM could have either no effect or a positive effect on job control. The implementation of TQM principles requires the creation of various task forces, focus groups, and problemsolving teams, therefore adding to the workload of employees. Therefore, TQM could increase the job demands. Furthermore, recent research has shown that teams work less effectively under stress and that stress may even lead to teams in which members barely acknowledge each other (Driskell et al, 1999). With the opportunities for learning offered through TQM (Hackman & Wageman, 1995), employees may perceive improvements in their job future and career. The teamwork principle of TQM involves collaboration between managers and non-managers, and between functions (Dean & Bowen, 1994), therefore leading to improvement in the social relationships. The implementation of the TQM principle of continuous improvement may involve the clarification of job duties within the organization, therefore reducing role ambiguity and role conflict. This short discussion of the impact of TQM implementation shows that TQM can have positive effects, negative effects and/or no effects on different aspects of work design, and, therefore, on quality of working life.

2 Team Work Study design Positive impact on job design and psychosocial factors Negative impact on job design and psychosocial factors METHODOLOGY Quality of Working Life The study is designed as a longitudinal study. Over a 3-year period, measurements will be taken on a regular basis. A questionnaire survey will be conducted every 12 months. The questionnaire survey has been designed to gather data on: job and organizational characteristics, quality of working and life, organizational excellence (OE), impact of OE, environment, change management, resources (training, information technology), demographics, and job information. Interviews with key personnel will be conducted. In addition, participant observations will be used. Given the size and structure of the organization, it is very likely that likely that the Wisconsin Department of Revenue (WDOR) divisions will implement OE in different ways. In addition, our preliminary data analyses suggest differences across job categories. Therefore, organizational configurations will be examined at the following levels: division and job category (e.g. managerial, professional, technical, and clerical/administrative). Measures The questionnaire survey used in this study is part of the tool box for diagnosis of quality institutionalization in public service organizations. It consists of the following dimensions: Structure: Job and organizational characteristics Total quality requires a shift in motivational emphasis from extrinsic rewards and punishments to the intrinsic motivation of the employees (Thomas & Tymon Jr., 1997). We decided therefore to include the Hackman s and Oldham s wellknown Job Diagnostic Survey (JDS, Hackman & Oldham, 1975) in the preliminary version of the questionnaire, since these measures of job characteristics are based on their theory of intrinsic motivation. Additionally, a short scale measuring work pressure (Quinn & Staines, 1979) is included. Organizational characteristics found to be most relevant with regard to quality implementation are included. These include teamwork, employee participation, supervisory support, task orientation, and innovation [e.g., Hackman, 1995; Whitney, 1998; Ho, 1999; Shea, 1998; Gatewood & Riordan, 1997). As far as possible we rely on widely used instruments, having shown their reliability and validity, as well as their practicability in previous studies. Process: change management, resources (training, technology) The process dimensions included in the questionnaire include employee perceptions regarding the way change is managed, in particular in the context of OE (Organizational Excellence), the implementation of the new information technology (i.e. ITS-Integrated Tax System) and the move to the new building. The scale includes perceptions regarding the style of an organizational change and the perceived professionality of the organizational change. It is an adaptation of an instrument used in studies performed in Austria and in the USA (Korunka, Weiss, & Karetta, 1993; 1995; Korunka and Carayon, 1999). With regard to employee training, the questionnaire includes items capturing the both the amount and perceived quality of quality and information technology training within a defined time period. Environment: demands and changes Since the questionnaire is developed with the goal of the analysis of quality institutionalization configurations, the items regarding environmental and technology configuration dimensions relate mainly to aspects potentially related to the employee perspective of quality institutionalization. This includes functional changes of the public service organization, new demands and changes in information technology within a defined time period. This part of the questionnaire was specifically designed for the participating organization. Strategy: Quality institutionalization Quality institutionalization is measured by the instrument developed in the City of Madison study (Sainfort et al., 1997). The final version of the scale consists of 28 items representing a five-factorial structure of quality institutionalization based on the Malcolm Baldrige award criteria: leadership/management support, information and data analysis, human resources, quality processes and results, customer focus/satisfaction. Impact Perceived impact of quality implementation is measured by two scales, developed in previous research: familiarity with quality and improvement in skills related to quality. A further dimension of impact is employee perception of customer satisfaction. Quality of working life Quality of working life (QWL) has been defined by many researchers in a variety of ways. Terms that have been used in place of QWL include quality of work (Attewell & Rule, 1984) and employment quality (Kraut, Dumais, & Koch, 1989). We emphasize outcome dimensions of quality of working life in the questionnaire: job satisfaction, job strain, organizational identification, organizational involvement and empowerment. Demographic variables These variables include age, gender, education, and jobrelated variables (type of job, job tenure etc.).

3 Procedures In the first step of the research a preliminary version of the toolbox was developed. Development is theoretically based on a carefully analysis and integration of actual research regarding implementation of quality, measurement of quality institutionalization, and the relations between quality implementation and quality of working life. The instruments used in the City of Madison study were carefully analyzed. If necessary, scales were improved based on psychometric theory (Nunnally & Bernstein, 1994). The preliminary version of the questionnaire was piloted with a sample of 38 employees from the Wisconsin Department of Revenue. Employees were selected with the goal of a broad distribution regarding job titles and job characteristics. Participation in the pilot study was voluntary. After filling out the questionnaires, each employee was interviewed about his/her perceptions of the questionnaire. Most of these follow-up interviews were done personally in the presence of the two principal investigators. Interviews with employees from outside Madison locations of the WDOR were conducted by telephone. Some of the employees were asked to participate in a focus group discussion led by the principal investigator. Interviews lasted between 2 and 5 minutes. Additionally, the pilot data set was analyzed by means of classical test theory. These analyses and the suggestions and comments from the interviews led to the development of a substantially improved preliminary version of the questionnaire. This version of the questionnaire has been administered in a first round of baseline data collection. This data collection occurred in June The questionnaire was sent to the more than 18 employees working in the five divisions at WDOR. Totally, 1278 employees filled out and returned the questionnaire, a very satisfying response rate of 7%. RESULTS The results presented in this paper are based on the first round of data collection with the question survey. The (crosssectional) data were analyzed to find out more about possible positive and negative effects of teamwork on job and organizational characteristics and eventually, on quality of working life, including job strain. Employees at WDOR were asked how often they have to work as a team. How often do you have to work as a team? 11% 9% never rarely 26% 26% occasionally often 28% always As the graph shows, 35% of the employees never or rarely work as a team, 28% occasionally, 26% often and 11% always. Asked about their opinion of teamwork, employees were asked whether they would prefer to work as part of a team rather than work alone. Overall, one third (33%) of the employees prefer to work alone, rather than working as a team (3%). This preference however, is depending strongly of experience with teamwork. From the employees who have never or rarely worked as a team, only about 2% would prefer to work as a team. For the employees who have much more experience with teamwork (often and always working as a team), more than half prefer to work as a team. Furthermore, employees were asked whether working as a member of a team increases their ability to perform perfectly. Overall (69%) employees do not think that teamwork increases their performance. Once again, however, this is strongly dependent on experience with teamwork. Of the employees who have never or rarely worked as a team, nearly one third is of the opinion that teamwork decreases performance and only one fifth are of the opinion that it will increase performance. Of the employees who do have experience with teamwork (often or always), nearly two thirds are of the opinion that it increases performance. To summarize, opinions about teamwork are strongly related with actual experience with working as part of a team, also reflected in the correlation between the two (.38) The next step was to find out possible negative or positive impacts of teamwork on job design and psychosocial factors. In the next charts, effects of (experience with) teamwork on job and organizational characteristics and quality of working life are presented.

4 Job Characteristics by Team Work Quality of Working Life by Team Work feedback # & * * N * autonomy skill variety task significance task identity work pressure organizational involvement organizational identification $ * # N $ job strain empowerment job satisfaction The chart shows 1 that working as part of a team positively influences nearly all aspects of job characteristics. An exception has to be made for task identity. However, teamwork has also an influence on work pressure. Employees who work as part of a team, experience higher work pressure opinions about teamwork Organizational Characteristics by Team Work * * & N * participation supervisory support task orientation innovation Also, in general, working as part of a team positively influences organizational characteristics. As shown before, employees perceptions about teamwork are greatly influenced by experience of working as part of a team. But working as part of a team also positively influences the other organizational characteristics. The next chart shows that all aspects of quality of working life are affected by teamwork. Employees who work as part of a team show more organizational identification and involvement and more empowerment and job satisfaction. However, employees who work as part of a team also suffer more from job strain. 1 * = all three groups (1 = never or rarely work as a team, 2 = occasionally work as a team, 3 = often or always work as a team) are statistical significant different. $ = group 3 is statistical significant different from groups 1 and 2. # = group 1 is statistical significant different from groups 2 and 3 & = group 1 is statistical significant different from group 3 N = groups are not statistical significant different. With regard to quality of working life, we focused on job strain and job satisfaction, to show how they interact. Therefore, we recoded job satisfaction into job dissatisfaction Job strain and Job dissatisfaction by Team work job strain job dissatisfaction The chart clearly shows that working as part of a team increases job satisfaction (i.e. decreases job dissatisfaction). However it also increases job strain. DISCUSSION Teamwork seems to have a positive effect on both job and organizational characteristic and quality of working life. However, it also has an influence on both work pressure and job strain. Apparently the negative effects of a higher work pressure are not buffered by the increase in autonomy and/or skill variety. Furthermore, recent research has shown that teams work less effectively under stress and that stress may even lead to teams in which members barely acknowledge each other (Driskell et al, 1999). However, the results presented in this paper are based on the first round of datacollection, so no causal relations can be established. The second round of data collection will start in June of this year. More information about causal relations will then be established.

5 REFERENCES Attewell, P., & Rule, J. (1984). Computing and organizations: What we know and what we don't know. Communications of the ACM, 27, Dean, J. W., & Bowen, D. E. (1994). Management theory and total quality improving research and practice through theory development. Academy of Management Review, 19(3), Driskell, J.E., Salas, E., Johnston, J. (1999), Does Stress lead to a Loss of Team Perspective? Group Dynamics Theory, Research and Practice, December Hackman, J. R., & Oldham, G. R. (1975). Development of the Job Diagnostics Survey. Journal of Applied Psychology, 6, Hackman, J. R., & Wageman, R. (1995). Total Quality Management: Empirical, conceptual, and practical issues. Administrative Science Quarterly, 4(2), Kraut, R., Dumais, S., & Koch, S. (1989). Computerization, productivity, and quality of work life. Communications of the ACM, 32(1), Moon, C., & Swaffin-Smith, C. (1998). Total quality management and new patterns of work: Is there life beyond empowerment? Total Quality Management, 9(2/3), Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory. (3 ed.). New York: McGraw Hill. Quinn, R., & Staines, G. L. (1979). The 1977 quality of employment survey. Ann Arbor, MI: Institute for Social Research, University of Michigan. Robertson, P. J., & Seneviratne, S. J. (1995). Outcomes of planned organizational change in the public sector: A meta-analytic comparison to the private sector. Public Administration Review, 55(6), Sainfort, F., P. Carayon, et al. (1997). Total Quality Management and quality of working life in a public sector organization. Proceedings of the 13th Triennial Congress of the International Ergonomics Association. P. Seppala, T. Luopajarvi, C.-H. Nygard and M. Mattila. Helsinki, Finland, Finnish Institute of Occupational Health Salas, E., Rozell, D., Mullen, B., Driskell, J.E. (1999) The effect of team building upon performance: integration. Small Group Research, 1999 Jun, Vol 3 (3): Thomas, K. W., & Tymon Jr., W. G. (1997). Bridging the motivation gap in total quality. Quality Management Journal, 4(2), Walsh, K. (1995). Quality through markets: The new public service management. In A. Wilkonson & H. Willmott (Eds.), Making quality critical. New perspectives on organizational change (pp ). London: Routledge. Whitney, G., & Pavett, C. (1998). Total Quality Management as an organizational change: Predictors of successful implementation. Quality Management Journal, 5(4), Wollner, G. E. (1992). The law of producing quality. Quality Progress, 28, 35-4.

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