Business Commons^™

The Globalization Of Service Work: Comparative Institutional Perspectives On Call Centers (Introduction To A Special Issue Of The Industrial & Labor Relations Review), Rosemary Batt, David Holman, Ursula Holtgrewe

Rosemary Batt

This introduction to the special issue on the globalization of service work provides an overview of the call center sector and its development in coordinated, liberal market, and emerging market economies. The introduction's authors situate this research in literature on the comparative political economy and industrial relations. Drawing on qualitative research and a unique survey of 2,500 establishments in 17 countries conducted in 2003-2006, they discuss the extent of convergence and divergence in management practices and employment relations. They also describe the research methodology for the overall research project, highlight its major findings, and summarize the contributions of the thematic …

How Institutions And Business Strategies Affect Wages: A Cross-National Study Of Call Centers, Rosemary Batt, Hiroatsu Nohara

Rosemary Batt

This paper, drawing on a 2003-2006 establishment-level survey of 1,819 call centers in 15 countries, examines effects of industrial relations institutions and employer strategies on wage variation across coordinated, liberal, and emerging market economies. The authors find several contradictory patterns, which confirm theoretical predictions for some countries and contradict them for others, suggesting diverse institutional reactions to the emergence of a new economic activity. Consistent with prior research, Denmark, France, and Sweden exhibit patterns of low wage dispersion and no union wage premium, and the United States, Canada, and emerging market economies exhibit quite high levels of dispersion. Contrary to …

Human Resource And Employment Practices In Telecommunications Services, 1980-1998, Rosemary Batt, Jeffrey Keefe

Rosemary Batt

[Excerpt] In the academic literature on manufacturing, much research and debate have focused on whether firms are adopting some form of “high-performance” or “high-involvement” work organization based on such practices as employee participation, teams, and increased discretion, skills, and training for frontline workers (Ichniowski et al., 1996; Kochan and Osterman, 1994; MacDuffie, 1995). Whereas many firms in the telecommunications industry flirted with these ideas in the 1980s, they did not prove to be a lasting source of inspiration for the redesign of work and employment practices. Rather, work restructuring in telecommunications services has been driven by the ability of firms …

Telecommunications: Collective Bargaining In An Era Of Industry Reconsolidation, Jeffrey Keefe, Rosemary Batt

Rosemary Batt

[Excerpt] In this paper, we examine the reconsolidation of the industry, between 1995 and 2001, focusing on the merger, acquisition, and business strategies of the major corporate players; union responses to those strategies; and the resulting evolution of union-management relations and collective bargaining outcomes. We argue that the nature of the industry and technology, coupled with its institutional legacy, provides incentives for consolidation and recentralization of the ownership structure. In this process over the last decade, former Bell affiliates have sought union support before regulatory commissions, and the unions have leveraged their political power to make important gains in collective …

Changes In Employment And Working Conditions Among Technical And Professional Workers, Rosemary Batt, Danielle Van Jaarsveld

Rosemary Batt

Recent organizing drives and strike activity among technical and professional employees raise the question of whether the employment conditions of these workers are deteriorating more generally. To consider this question, this paper reviews empirical research and national surveys on trends in employment contracts and working conditions of technical and professional employees. On average, we find that employment security and benefits have deteriorated, more pay is at risk, and hours of work have increased, negatively spilling over from work to family life.

Labor Market Outcomes Of Deregulation In Telecommunications Services, Rosemary Batt, Michael Strausser

Rosemary Batt

[Excerpt] This paper examines the labor market outcomes of deregulation in the telecommunications industry, focusing specifically on changes in union density, real wages, wage inequality, and employment levels. Deregulation of telecommunications long distance and equipment markets began in 1984 with the dismantling of the highly unionized Bell System into AT&T (the long distance and equipment provider) and seven Regional Bell Operating Companies (RBOCs, the local service providers). Deregulation of local service has proceeded fitfully: while Congress intended to increase local competition with the passage of the 1996 Telecommunications Act, the RBOCs continue largely as monopoly providers. Despite only partial deregulation, …

Labor Market Institutions And Restructuring In U.S. Deregulated Telecommunications Services, Rosemary Batt

Rosemary Batt

[Excerpt] This chapter summarizes some of the recent literature concerning the changing nature of markets, technology, and employment relations in deregulated telecommunications services in the United States. It draws on arguments and evidence from a series of studies over the last five years, most of which were undertaken by researchers at Cornell, MIT, and Rutgers universities in the United States. The research focuses on the relationship between market deregulation and technology change on the one hand, and changing business strategy, organizational structure, union relations, and work organization on the other. This chapter focuses on the extent to which labor market …

Outcomes Of Self-Directed Work Groups In Telecommunications Services, Rosemary Batt

Rosemary Batt

[Excerpt] The purpose of my presentation is to consider whether the use of self-directed teams enhances competitiveness in services. In the context of heightened competition brought about by deregulation and the internationalization of service markets, do "team-based" work systems produce higher quality service and customer satisfaction? Do workers benefit as well? Should unions as well as management support this innovation? If so, under what conditions and why? This presentation complements that of the other panelists in this session in important ways. First, while Verma provides an overview of the array of workplace innovations being introduced in telecommunications firms (from joint …

Strategic Segmentation In Frontline Services: Matching Customers, Employees, And Human Resource Systems, Rosemary Batt

Rosemary Batt

This paper examines variation in the use of high involvement work practices in service and sales operations. I argue that the relationship between the customer and frontline service provider is a central feature that distinguishes production-level service activities from manufacturing. In particular, through strategic segmentation, firms are able to segment customers by their demand characteristics and to match the complexity and potential revenue stream of the customer to the skills of employees and the human resource system that shapes the customer-employee interface. Unlike manufacturing, where high involvement systems have emerged in a wide variety of product markets, therefore, service organizations …

Who Benefits From Teams? Comparing Workers, Supervisors, And Managers, Rosemary Batt

Rosemary Batt

This paper offers a political explanation for the diffusion and sustainability of team-based work systems by examining the differential outcomes of team structures for 1200 workers, supervisors, and middle managers in a large unionized telecommunications company. Regression analyses show that participation in self-managed teams is associated with significantly higher levels of perceived discretion, employment security, and satisfaction for workers and the opposite for supervisors. Middle managers who initiate team innovations report higher employment security, but otherwise are not significantly different from their counterparts who are not involved in innovations. By contrast, there are no significant outcomes for employees associated with …

Telecommunications 2004: Strategy, Hr Practices & Performance - Cornell-Rutgers Telecommunications Project, Rosemary Batt, Alex Colvin, Harry Katz, Jeffrey Keefe

Rosemary Batt

This national benchmarking report of the U.S. telecommunications services industry traces the tumultuous changes in management and workforce practices and performance in the sector over the last 5 years. This is a follow-up report to our 1998 study. At that time, when the industry was booming, we conducted a national survey of establishments in the industry. In 2003, we returned to do a second national survey of the industry, this time in a sector that was recovering from one of the worst recessions in its history.

Human Resource Management, Service Quality, And Economic Performance In Call Centers, Rosemary Batt, Lisa M. Moynihan

Rosemary Batt

This paper examines the relationship between human resource practices, operational outcomes, and economic performance in call centers. The study draws on a sample of 64 call centers serving the mass market in a large telecommunications services company. Surveys of 1,243 employees in the 64 centers were aggregated to the call center level and matched to archival data on service process quality, as measured by customer surveys; call handling time, revenues per call, and net revenues per call. Our path analysis shows that human resource practices emphasizing employee training, discretion, and rewards lead to higher service quality, higher revenues per call, …

Net Working: Work Patterns And Workforce Policies For The New Media Industry, Rosemary Batt, Susan Christopherson, Ned Rightor, Danielle Van Jaarsveld

Rosemary Batt

This report, based on a study of a group of highly accomplished professionals in New York City, is one of the first to take up labor market issues in the new media industry. It describes the challenges faced by professionals and employers alike in this important and dynamic sector, and identifies strategies for success in a project oriented environment with highly complex skill demands and rapidly changing technology. Our findings suggest three central issues.

The Indian Call Centre Industry: National Benchmarking Report Strategy, Hr Practices, & Performance, Rosemary Batt, Virginia Doellgast, Hyunji Kwon, Mudit Nopany, Priti Nopany, Anil Da Costa

Rosemary Batt

Report of the Global Call Centre Industry Project

The dramatic growth of the call center industry is a world-wide phenomenon, fueled by advances in information technologies and the precipitous decline in the costs of voice and data transmission over the last two decades. As part of this global industry, call centres in India have experienced spectacular growth in the last five years. They generate seventy percent of the revenues of the Indian Business Process Outourcing (BPO) industry, according to estimates by Mckinsey (www.nasscom.org).

This rapid growth has also brought managerial challenges in terms of recruitment,staffing, training, and retention of workers …

The Impact Of Employee Voice And Compliance Mechanisms On Absenteeism, Discipline, And Turnover, Alexander J.S. Colvin, Rosemary Batt, Jeffrey Keefe

Rosemary Batt

This study examines the impact of employee voice and compliance mechanisms on voluntary turnover and other workplace behaviors. Results from analysis of a unique, nationally representative sample of establishments in the telecommunications industry show that voice mechanisms in the form of unions and problem-solving groups are associated with significantly reduced quit rates and dismissal rates. In addition, voice mechanisms in the form of self-directed work teams are associated with lower absenteeism and discipline rates. By contrast, compliance mechanisms in the form of electronic monitoring are associated with higher discipline rates, while the compliance mechanism of strict work rules is associated …

The Economic Costs And Benefits Of Self-Managed Teams Among Skilled Technicians, Rosemary Batt

Rosemary Batt

This paper estimates the economic costs and benefits of implementing teams among highly-skilled technicians in a large regional telecommunications company. It matches individual survey and objective performance data for 230 employees in matched pairs of traditionally-supervised and self-managed groups. Multivariate regressions with appropriate controls show that teams do the work of supervisors in 60-70% less time, reducing indirect labor costs by 75 percent per team. Objective measures of quality and labor productivity are unaffected. Team members receive additional overtime pay that represents a 4-5 percent annual wage premium, which may be viewed alternatively as a share in the productivity gains …

How High Performance Human Resource Practices And Workforce Unionization Affect Managerial Pay, Alexander Colvin, Rosemary Batt, Harry C. Katz

Rosemary Batt

Using data from a nationally representative sample of telecommunications establishments, this study finds that HR practices and workforce unionization influence managerial pay levels and the ratio of manager-to-worker pay. High performance HR practices, including investment in the skills of the workforce, in computer-based technologies, and in performance-based worker pay practices, are all positively related to managerial pay; but the use of workforce teams, which shift some managerial responsibilities to workers, has the opposite association. High performance HR practices also are associated with lower manager to- worker pay differentials. In addition, workforce unionization is positively associated with managerial pay levels, with …

What Are The Effects Of Work Restructuring On Employee Well-Being And Firm Performance? Evidence From Telecommunications Services, Rosemary Batt

Rosemary Batt

The purpose of this study was to assess whether there are benefits to employees and firms associated with new forms of work organization and human resource and industrial relations practices. I examine a series of interrelated questions that may be summarized as follows. First, does participation in either total quality improvement teams or self-directed teams have benefits for workers, managers, and firms? If benefits exist, are they undermined by the negative effects of understaffing and job insecurity associated with downsizing? And finally, is there a coherent set of work organization, human resource, and industrial relations practices that provides mutual gains …

The Economic Pay-Offs To Informal Training: Evidence From Routine Service Work, Rosemary Batt

Rosemary Batt

This study examines the relationship between informal training and job performance among 2,803 telephone operators in a large unionized U.S. telecommunications company. The authors analyze individual-level data on monthly training hours and job performance over a five-month period in 2001 as provided by the company's electronic monitoring system. The results indicate that the receipt of informal training was associated with higher productivity over time, when unobserved individual heterogeneity is taken into account. Workers with lower pre-training proficiency showed greater improvements over time than did those with higher pre-training proficiency. Finally, whether the trainer was a supervisor or a peer also …