Workplace Innovations and Employee Outcomes: Evidence from Finland

Abstract

In the recent literature on workplace innovations, two competing views stand out. One strand of literature emphasizes positive outcomes for employees in the form of increased discretion, improved job security, and enhanced job satisfaction. In turn, critics argue that workplace innovations lead to increased job intensity and mental strain, and compromise job security. We address these issues by using a representative data set on individual employees from Finland. Our results indicate that workplace innovations are mainly associated with beneficial outcomes for employees. They are consistent with the view that institutional features of the Finnish labor market may mediate the outcomes.

"Transformational Leadership, High Performance Work Practices, and an Effective Organization"

“…This role can be facilitated by the leader's ability to set positive but realistic goals, and communicate these goals in a manner that is understandable, precise and reflects a collective sense of purpose (Avolio & Bass, 1995;Van Knippenberg & Sitkin, 2013). As shown in Table 2 employees' jobs so that employees are empowered to apply their creative knowledge rather than being narrowly constrained in terms of what they are able do in their jobs (Kalmi & Kauhanen, 2008). A transformational leader may also intellectually stimulate employees by encouraging them to work in teams (see Table 2 -Row 4, Column 4).…”

“…Opportunity-enhancing practices such as participative decisionmaking, team working, task autonomy, performance appraisals and information sharing provide opportunities for active employee involvement in the workplace (Huselid, 1995;Wood, Van Veldhoven, Croon & De Menezes, 2012). These practices allow employees to apply their creative knowledge in addressing work-related issues more efficiently, rather than being narrowly constrained in their jobs (Kalmi & Kauhanen, 2008;Combs et al, 2006).…”

“…This type of empowerment can lead to higher levels of work motivation and meaningfulness, job quality, and overall organizational effectiveness. HPWP are variously referred to as high-involvement work systems (Edwards & Wright, 2001), high-commitment management practices (Whitener, 2001), workplace innovations (Kalmi & Kauhanen, 2008). ability-, motivation-and opportunity-enhancing practices.…”

Innovative work practices and sickness absence: what does a nationally representative employee survey tell?

“…Concerning other employee outcomes, including job satisfaction, Kalmi and Kauhanen (2008) find using Finnish data that HPWS have mainly positive effects for employees whereas in other literature the findings have been much more mixed. They hypothesize that the Finnish labor market institutions may affect these results.…”

“…Because there is no single definition for summary measures (e.g. Blasi and Kruse, 2006;Kalmi and Kauhanen, 2008), we follow a simple strategy. "Bundles" are captured by our variable HPWS, which equals one if more than one of the aspects of workplace innovations (self-managed teams, information sharing, employer-provided training or incentive pay) is present.…”