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Organizational Social Capital – an Important Dimension in Future Psychosocial Research

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Organizational Social Capital – an Important Dimension in Future Psychosocial Research Organizational social capital – an important dimension in future psychosocial research 3rd International COPSOQ Workshop Barcelona, October 21, 2011 Tage S Kristensen [email protected] After the Championships in South Africa: The whole French team was suspened Unique fiasco: 3 games, 1 goal, 1 point, poorest result of all. Why? They had poor social capital Organizational social capital The three diamonds Collaboration The core product or service Justice Trust Organizational social capital – old Spanish wine on new bottles? What is new about working with organizational social capital? • Social capital is a characteristic of the whole workplace and not of a particular job or department • It is a concept connected to everyday operations and the core production • It is not primarily a work environment concept, but focuses on leadership and cooperation • Productivity and employee well-being are considered as two sides of the same coin Important point about workplace social capital • Most work environment factors are at job-level . (For instance demands, influence, meaning, monotony, etc.) • Others are at department level . (For instance quality of leadership, predictability, recognition, social support, etc.) • Social capital is primarily at company level , e.g. a characteristic of the whole company. Trust at work OBS!NBNBNB Dialogue Work The employees trust The employees trust that Bottom up information from the management does a management good job The employees trust that The employees trust each Horizontal their colleagues do a other good job The management trusts Management trusts that Top down the employees the employees do a good job OBS! Blind trust? Justice at work - fairness Distributive justice. Are salaries, promotions, firings, * recognition, fringe benefits, etc. distributed in a fair way? Procedural justice. Are processes fair? Are recognized procedures followed? Are things done ”the right way”? * (This aspect includes the ”psychological contract”). Interactional justice: Interpersonal justice. Are employees treated in a fair * way, e.g. with respect? * Informative justice. Do the employees receive * sufficient information about processes? Cohen-Charash & Spector, 2001. Organizational social capital: Collaboration Bonding, bridging and linking Management Teams,occupa- tions or Linking departments Bonding Bonding Bonding Bridging Social capital is always associated with high job satisfaction and well-being Social capital and job satisfaction in the schools of Copenhagen Skoler Social kapital og spørgsmålet 'Hos os er stemningen præget af arbejdsglæde' 6 5,5 5 4,5 4 3,5 3 2,5 2 Hos os er stemningen præget af arbejdsglæde arbejdsglæde af af prægetpræget stemningenstemningenerer os os HosHos 1,5 1 1 1,5 2 2,5 3 3,5 4 4,5 5 5,5 6 Social kapital Social capital and job satisfaction Job satisfaction A study of hospital wards and C municipal institutions D 70 E B A 60 H F G 50 Social capital 50 60 70 80 Social capital project, 2009. Social capital og job satisfaction in call centres Mathiesen & Wiegman, 2009 (In)Justice and depression* A Finnish prospective study of 1,786 female hospital employees Relative risk 1,73 1.5 1,24 1,0 1,0 1.0 0.5 + – + – Respect Procedural * Diagnosed by MD justice Kivimäki et al. Psychol Med 2003;33:319-326. Social capital and psychological well-being in the police force Less stress Social capital: Trust between colleagues and Fewer cooperation depressive between units symptoms Less burnout A study from Baltimore, Maryland. 2010. Social capital and leadership Social capital and quality of leadership in the schools of a Danish municipality Quality of leadership A C D B 70 E F 60 G H DK 50 I J 40 L K Social capital 50 60 70 80 Development of social capital and quality of leadership during a one-year intervention project Social capital, absence and turnover of personnel Great Place to Work: A concept focusing on social capital • The five dimensions in the ”Great Place to Work” measure: - Credibility - Respect - Fairness - Pride - Camaraderie Sickness absence of the ”50 best places to work” in Denmark, 2009 0 5 10 15 20 25 Antal arbejdspladser 0-1,9 % 10 2,0-2,9 % 21 3,0-3,9 % 9 4,0-4,9 % 4 (No information: 6) Median absence rate 2.5 % Oxford, 2009. Social capital and absence in China Relation between aggregate company level social capital at work and sick leave. 18 companies, 953 employees. P = 0,0012. Lee & Zhou, 2011. Social capital and intention to quit Intention to quit 60 A 50 G H F B E 40 30 D C 20 Social capital 50 60 70 80 Social capital project, 2009. ”Great place to work” – lower turnover of employees Turnover % Average for the US 30 De ”100 23 % The ”100 second best” best” 20 14 % 12 % 10 Lymann, 2008 Social capital: Quality, productivity, and innovation Social capital og perceived service quality in call centres Mathiesen & Wiegman, 2009 ASSOCIATION BETWEEN SOCIAL CAPITAL AND PERCEIVED QUALITY OF TREATMENT IN HOSPITALS GENNEMSNITSPOINT PÅ EN SKALA FRA 0-100 FOR TILLID OG RETFÆRDIGHED (SOCIAL KAPITAL) OG FAGLIG KVALITET, OPDELT PÅ VIRKSOMHEDER 16 Rigshospitalet 16 Psykiatri 75 15 Region Hovedstadens Hovedstadens Region 15 14 Region Hovedstadens Apotek Hovedstadens Region 14 AVERAGE FOR Handicap 13 Region Hovedstaden - Hovedstaden Region 13 REGION COPENHAGEN 12 Koncernstabe 12 11 Hvidovre Hospital Hvidovre 11 10 Hillerød Hospital Hillerød 10 16 9 Herlev Hospital Herlev 9 70 13 8 Helsingør Hospital Helsingør 8 14 2 7 Glostrup Hospital Glostrup 7 6 7 6 Gentofte Hospital Gentofte 6 5 Frederikssund Hospital Frederikssund 5 10 4 4 Frederiksberg Hospital Frederiksberg 4 5 3 Bornholms Hospital Bornholms 3 3 12 2 Bispebjerg Hospital Bispebjerg 2 2 Bispebjerg Hospital Bispebjerg 2 11 1 Amager Hospital Amager 1 15 65 9 Nr/virksomhed Faglig kvalitet* kvalitet* FagligFaglig (ANONYMISERET) 1 60 8 55 60 65 70 Tillid og retfærdighed (social kapital) Den røde prik i figuren illustrerer Region Hovedstadens gennemsnit. TRIVSELOP 2011 – REGIONSRAPPORT 28 * Faglig kvalitet er et gennemsnit af følgende spørgsmål: Spm. 3. Er du tilfreds med den faglige kvalitet af det arbejde, I udfører på din arbejdsplads? Spm. 4. Oplever du, at der er klare kriterier for faglig kvalitet på din arbejdsplads? Spm. 44. Er du stolt over det arbejde, I udfører på din arbejdsplads? Trust in the coach – the road to success in American basketball The players’ trust in 0.44 the chief coach Results in the NCAA* basketball turnament i the US The players’ skills 0.48 and performance** ** The proportion playing on * National Collegiate national and other selected teams Athletic Association Dirks. J Applied Psychol 2000; 85: 1004-1012 Social capital and school grades A study of 88 American schools (2,167 teachers, 5,130 parents and 88 leaders) Social background of the students Grades in oral English Experience of the teachers Grades in mathematics Social capital of the schools Leana & Pil. Organization Science 2006;17:353-366. Trust and productivity A study of 43 companies in the US car industry Trust* between manage- Higher involvement Increased effort: ment and employees in the workplace a. Productivity b. Innovation c. Cooperation * Trust: Believing that the employees are competent, honest, reliable, and involved. Spreitzer & Mishra. Group & Organizational Management 1999;24:155-187. Social capital and innovation in a large American company Social capital: Cooperation Social capital: Sharing of Innovation Trust knowledge Social capital: A study of trust and collaboration between 15 Common goal independent units i a large international electronic company with 31,000 employees Tsai & Ghoshal, 1998 Social capital and economic results Dividend to the stockholders in the ”100 best workplaces” in the US Cumulative dividends over 6 years in companies with high social capital % 1995-2000 total 421 % 400 376 % 300 247 % 193 % 200 Matched 100 Other companies companies Fulmer et al. Personnel Psychol 2003;56:965-93. Trust and sales in a Canadian supermarket chain En study of the significance of the degree to which the employees’ feel being trusted by the supervisors. Perceived Organizational Increased trust citizenship sales 88 supermarkets with a total of 4,000 employees. Large differences between the stores with regard to perceived trust. Salaman& Robinson. J Applied Psychol 2008;93:593-601. The economic development of Irma supermarkets 1996-2010 Recent Profit before 74 75 numbers: tax (mio. DKK.) 70 2009: 50.6 mio 2010: 78.5 mio 60 54 Josefsen 50 starts 44 40 32.7 29.7 30 26.5 20 10 6.9 0.9 0 År -10 -5.9 -20 -30 -29.0 -40 -34.8 1996 97 98 99 2000 01 02 03 04 05 06 07 08 Irma was in deep crisis and about to close down. Josefsen built up the social capital of Irma, and the economic results followed Social capital, knowledge sharing og and economic growth A study of 136 knowledge-based american companies with at least 100 employees ”Social climate” Economic growth Trust Commitment based 0,49 0,43 Increase in sales HR 0,50 Knowledge management Collaboration sharing Sale of new Common products (%) language Data from Data fra knowledge workers Data after 1 year HR-boss (7 per company) All correlations are significant. Collins & Smith. Acad Management J 2006;49:544-560. HCL, fabulous case. From 2005 to 2010: • Fire times as many customers • Trippling of income • Doubling of ”market cap” (value) • 50% higher customer satisfaction • No 1 in job satisfaction • Fortune: ”Most modern management” • Harvard: ”Case study in teaching” • Business Week: ”One of five emerging companies to watch out for” (Vineet Nayar. Employees first, customers second. 2010). Social capital and satisfaction of customers, citizens and patients Precision and customer complaints among American airlines Complaints per US Airways 1000 passengers Low quality United 2,0 American Delta North West Continental 1,0 High quality Jet Blue Alaska Arrivals on 65 70 75 80 time % Up in the air.
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