A Study of Atypical Employment in the
Service Sector in Ireland
Submitted by
Sharon Mann McGreevy
B.Sc.(M gt) in fu lfilm e n t o f the requirem ents fo r the degree of
M aster o f Business Studies
The Business School,
Dublin City University,
Dublin 9.
Supervisor o f Study
Josephine Browne, B.Sc., B.Com m ., B .L., Ph.D.
D ublin Institute o f Technology,
C athal Brugha Street,
D ublin One,
May 1995
I certify that this thesis which I now submit for examination for the award of Masters of Business Studies, is entirely my own work and has not been taken from the work of others save and to the extent that such work has been cited and acknowledged within the text of my work.
This thesis was prepared according to the regulations for graduate studies by research of the Dublin Institute of Technology and has not been submitted in whole or in partfor an award in any other Institute or university.
The Institute has permission to keep, to lend or to copy this thesis in whole or in part, on condition that any such use of the material of the thesis be duly acknowledged.
Signature Date
'Ruth, and Çerry,
Acknowledgements
1. Firstly, I m u st thank m y supervisor Dr. Josephine B row ne w hose energetic and boundless en th usiasm , constant and unending su pp ort aided m e in the preparation o f every aspect o f the project.
2. Second ly, I w ould like to extend m y thanks to all those in the D .I.T . in C athal
B ru gha S treet, particularly, M r. Frank M cM ahon, M r. P at H enry and M r. M ichael M ulvey, w hose su p p ort and interest in the research allow ed m e trem endous scop e d urin g its preparation.
3. T hirdly, I w ould like to thank Jim L arragy w hose trem endous w ide ranging know ledge o f statistical analysis techniques taught m e how to use and interp ret S.P.S.S.
4. F ourthly, I w ould like to thank R uth, m y m other w hose overw helm ing enthu siasm and h ard w ork m ade an enorm ous contribution im m ediately preceding subm ission.
5. F ifthly, I w ould like to th an k m y long suffering husband w ho has supported and encou raged m y progression throughout the duration o f the research.
6. Finally, I w ould like to thank G od it is all over.
Table of Contents
Abstract...........................................................................................................................
List of Abbreviations......................................................................................................
List of Tables..................................................................................................................
List of Appendices.........................................................................................................
Introduction....................................................................................................................
13468
Chapter One
1. Introduction................................................................................................................
1.1 Changes in the world of work.................................................................................
99
1.2 Towards a definition of atypical employment....................................................... 11
1.2.1 Part time employment.........................................................................................13
1.2.2 Temporary employment.......................................................................................14
1.3 Rationales - Traditional or New ?...........................................................................16
1.4 Who are these atypical employees ? ....................................................................20
1.5 The role of the state...............................................................................................20
1.6 European Union Directives....................................................................................22
1.6.1 Limitations of proposed Directives.....................................................................23
1.7 Employment trends in hotels, tourism and the hospital sector........................... 24
1.8 The flexibility debate -The issues......................................................................... 26
1.8.1 Flexibility and Size of the Organisation............................................................ 31
1.8.2 Training Implications...........................................................................................32
1.8.3 The humanisation of work...................................................................................33
1.8.4 Voluntary Initiatives to Improve the position of Atypical
Employees..................................................................................................................... 35
1.9 The Trade Union response....................................................................................36
1.10 Conclusions............................................................................................................46
Chapter Two
Research M ethodology..............................................................................................47
2. Introduction................................................................................................................47
2.1 Secondary Research...............................................................................................47
2.2 Research Instrument...............................................................................................47
2.3 Questionnaire Design..............................................................................................48
2.4 Pilot Survey..............................................................................................................48
2.5 Population................................................................................................................49
2.6 Sample size..............................................................................................................50
2.7 Administration of Primary Research...................................................................... 50
2.8 Analysis of data...................................................................................................... 50
2.9 Conclusion...............................................................................................................52
Chapter Three
Atypical Employees- Who are they?....................................................................... 53
3. Introduction................................................................................................................53
3.1 Response Rate...................................................................................................... 53
3.2 Composition of Respondents.................................................................................53
3.3 Manpower Utilisation in the Irish servicessector..................................................56
3.3.1 Manpower Utilisation and Organisation size..................................................... 57
3.3.2 Manpower utilisation and organisation type in the Irish services
sector..............................................................................................................................59
3.4 Flexibility and Gender.............................................................................................60
3.4.1 Female Participation and Status....................................................................... 61
3.4.2 Participation of married Females andStatus......................................................62
3.5 Age and employees status...................................................................................66
3.6 Unionisation.............................................................................................................67
3.7 Conclusion...............................................................................................................68
Chapter Four Personnel Policies, Terms and Conditions of Atypical
Employees.................................................................................................................... 70
4. Introduction................................................................................................................70
4.1 Recruitment Problems.............................................................................................71
4.2 Type of Organisation and problems in recruiting suitably skilled
staff.................................................................................................................................74
4.3 Atypical Employees and success in transfer to full time......................................76 4.3.1 Organisation type and success in transfer to full time
employment.................................................................................................................... 77
4.4 Future recruitment plans.........................................................................................80
4.5 Formal induction courses.......................................................................................82
4.6 Formal Training Courses.........................................................................................85
4.7 Benefits available to employees and occupational status...................................88 4.7.1 Benefits available to periphery employees in unionised and non
unionised organisations................................................................................................91
4.8 Determination of pay criteria for atypical employees.......................................... 93 4.8.1 Criteria Applied in the determination of remuneration for atypical employees in unionised and non unionised organisations........................................94
4.9 Conclusion.............................................................................................................. 96
Chapter Five
Functional Flexibility..................................................................................................99
5. Introduction............................................................................................................... 99
5.1 Skill Flexibility and Occupational Status...............................................................99
5.2 Flexibility Agreements............................................................................................102
5.3 Atypical Employees Interchangeable with Full Time Employees...................... 103
5.4 Functional Flexibility and Gender..........................................................................109
5.5 Worksharing............................................................................................................113
5.51 Marital status of work sharers.............................................................................116
5.52 Age and Work Sharing........................................................................................116
5.6 Conclusions............................................................................................................. 116
Chapter Six
Why Employ Atypical W orkers?..............................................................................118
6. Introduction............................................................................................................... 118
6.1 Productivity and Atypical Employees................................................................... 118
6.2 Motivation and Atypical Employees.................................................................... 122
6.3 Absenteeism and Atypical Workers...................................................................... 127
6.4 Loyalty and Atypical Employees............................................................................130
6.5 Atypical Employees and supervision.................................................................. 134
6.6 Contracting Out.......................................................................................................137
6.7 Conclusions.............................................................................................................142
Chapter Seven
Results, Conclusions and Recommendations..................................................... 144
7. introduction............................................................................................................... 144
7.1 Summary................................................................................................................ 144
7.2 Overall Research Results.......................................................................................146
7.3 Recommendations...................................................................................................149
7.4 Conclusions.............................................................................................................. 155
Bibliography Appendices Abstract
The primary research has been based on the Irish services sector with specific reference to the hotel, tourism and hospital sectors. Comparisons will be drawn with the UK and where appropriate other European Countries. There are four main aims of the research: firstly, to establish a profile of
atypical em ployees: secondly, to establish the terms and conditions of such employees; thirdly, to consider management perspectives which
address issues relevant to peripheral employees; and finally, to consider the future outlook for atypical employment in the Irish Service Sector. Within the British literature one of the best basis for discussion is the concept of the "Flexible firm" proposed by Atkinson (1987), who argued that new firms are segmenting their workforces into a core and a periphery. Core employees have standard working conditions, secure employment, promotion etc. Conversely, with peripheral employees, firms focus on using a cheaper supply of labour by using employees who attract lower non wage costs, and also by achieving numerical flexibility. This research attempts to establish a "profile" of atypical employees within the sectors previously identified. A comparison between the Irish hotel, tourism and hospital sector is attempted in order to gain a greater insight into the nature of atypical work in these three service sectors. The research primarily concentrates on four main types of numerical flexibility: Part time, Temporary (Seasonal), Temporary (Fixed Term), and Casual employees. Issues such as age, gender and marital status are examined. The extent of the reliance of establishments on atypical employment practices and the location of such employees within the organisation are evaluated. The issue of whether atypical employees work in isolation or are an integral part of the workforce are also considered.
