From Understanding to Action: New
strategies to reach out to, and support,
small enterprises
KEYNOTE AT USE 2013
P E T E R H AS L E , P R O F E S S O R
CENTRE FOR INDUSTRIAL PRODUCTION
DEPARTMENT OF BUSINESS AND MANAGEMENT
AALBORG UNIVERSITY COPENHAGEN
Why care about small enterprises
• Provide the daily bread for most of the global population
• More than 150 mill. small enterprises
• T h e i r s h a r e o f j o b s a r e g r o wi n g
• L i m i t e d r e s s o u r c e s ( m o n e y, t i m e a n d p e r s o n n e l )
• Pressured by complex markets, competition from bigger
firms, government red tape, limited credit access and much
more
T h e wo r k i n g e n v i r o n m e n t :
• Higher risk of accidents and occupational diseases
• Limited capacity to control (management attention and
k n o wl e d g e a s we l l a s t i m e a n d m o n e y)
• M o r e s e l f - e m p l o ye d a n d i n f o r m a l s e c t o r u n d e r s t r e s s f u l
conditions
Peter Hasle,
Centre for Industrial Production
2
The trouble with small enterprises
S l i p b e t we e n o u r f i n g e r s :
• M a n y b i r t h a n d d e a t h s ( 1 0 % ye a r l y)
• No uniform voice
• L i m i t e d i n t e r e s t i n a n yt h i n g b u t b u s i n e s s
• D i ff i c u l t a n d e x p e n s i v e t o g e t i n t o u c h
• Huge heterogeneity
3
The EU definition of SME and employment
Size
% of employees
Micro (1-9)
30
Small (10-49)
21
Medium (50-249)
17
Large (>249)
33
Peter Hasle,
Centre for Industrial Production
4
The large enterprise
• D i s t a n t o wn e r s h i p
• Professional management
• S e v e r a l l a ye r s o f m a n a g e m e n t
Organization and
management
• F o r m a l e m p l o ym e n t r e l a t i o n s
• P r o f e s s i o n a l s t a ff f u n c t i o n s
The small enterprise
• P e r s o n a l o wn e r s h i p
• O wn e r - m a n a g e r
• Direct management
• P e r s o n a l i z e d e m p l o ym e n t r e l a t i o n s
• No professionals outside core
business function
• Limited management resources
Peter Hasle,
Centre for Industrial Production
5
Employment relations based on social relations
• Close personal relations dominate
• B o t h p a r t i e s o c c u p i e d wi t h t h e m a i n t e n a n c e o f e n d u r a b l e
relations
• T h e o wn e r - m a n a g e r s e e k s t o b e t h e f i r s t a m o n g e q u a l s
• P a r t o f t h e e m p l o ye r r e s p o n s i b i l i t y h a n d e d o v e r t o e m p l o ye e s
• T h e e m p l o ye e s a c c e p t t h e e x t e n d e d r e s p o n s i b i l i t y
• A personal relationship for good and for bad
Peter Hasle,
Centre for Industrial Production
6
Small enterprises evade the traditional business
understanding
• P r o f i t a n d g r o wt h n o t d e c i s i v e
motives
• Primary concern is survival and
control of business
• Provide a living
• Integrate family life
The main priority is maintenance
of an identity as owner-manager
Peter Hasle,
Centre for Industrial Production
7
Creating an identity as an owner-manager
• The identity is tied to
- a desired self-portrait
- discourses about entrepreneurship, the craftmanship and
the family business
• The identity mirrors the expectations expressed through
s o c i a l r e l a t i o n s t o e m p l o ye e s , c u s t o m e r s , a u t h o r i t i e s a n d
other stakeholders
• The identity is expressed through narratives and dependent
on the context
- O f t e n i n c o h e r e n t , c o n t r a d i c t o r y, a n d v a r i e s o v e r t i m e
Peter Hasle,
Centre for Industrial Production
8
The identity as an owner manager and the work
environment
• Wo r k e n v i r o n m e n t i s a
peripheral issue with a
potential for ethical and
economic trouble
• Important to create a selfportrait as a decent
person
Learning from serious accidents:
• Unpredictable events
• Personal blunders
• No prevention
Peter Hasle,
Centre for Industrial Production
Work environment attitudes:
• Generally positive
• Search for a common discourse
on an acceptable work
environment
• Downgrade risk
• Evade personal employer
responsibility
Hasle et al., 2012
9
Downgrading risk
• O w n e r- m a n a g e r, m a n u f a c t u r i n g s q u e e g e e s :
“It is not risky here. There are a few cuts but not serious
ones, and people rarely go to the emergency room. It
h a p p e n e d o n c e wh e n a g u y b r o k e h i s t h u m b n o t b e c a u s e a
p r o b l e m wi t h t h e s a f e t y g u a r d , b u t s i m p l y b e c a u s e p e o p l e
they make blunders.”
• O w n e r- m a n a g e r, m a n u f a c t u r i n g c o m p o n e n t s t o f o o d i n d u s t r y :
“ We h a v e o n l y h a d o n e a c c i d e n t i n f i v e ye a r, I b e l i e v e . We l l ,
i t i s n o t t h a t we a r e r o l l i n g i n a c c i d e n t s . T h e r e wa s o n e wh o
c u t h i s f i n g e r i n a s a w b u t t h a t wa s j u s t a b l u n d e r. ”
Peter Hasle,
Centre for Industrial Production
10
Avoiding personal employer responsibility
• P a r t n e r, s p r i n g f a c t o r y :
“ R e a l l y, t h e y h a v e t h e p o s s i b i l i t y, h a v e n ’ t t h e y? A n d I d o
k n o w a s a n e m p l o ye r yo u o u g h t t o b e a b o g e ym a n … … . . b u t
p e o p l e d a m n e d we l l h a v e t o t h i n k b y t h e m s e l v e s , d o n ’ t t h e y? ”
• O w n e r- m a n a g e r, c a r p e n t e r - j o i n e r :
“ I a m f o n d o f t h e p e o p l e wh o wo r k h e r, we a r e a f a m i l y a n d i f
o n e o f t h e m i s i n j u r e d , i t wo u l d m a k e m e f e e l v e r y b a d a b o u t
m ys e l f . S o t h e y h a v e t o k n o w t h a t t h e y s h o u l d t a k e c a r e o f
themselves.”
Peter Hasle,
Centre for Industrial Production
11
The need to differentiate
Micro
Small
Medium
Owner-manager
Both owner-managers
and professionals
Often professional
management
One management level,
Owner often work in
operation
Two managements
levels, owner don’t work
in operation
Several full time
management levels
Rarely growth and profit
oriented
Sometimes growth and
profit oriented
Stronger growth and
profit orientation
Very low division of work
Division of work with a
few different professions
Division of work with
several professions and
expert support functions
Low formalization –
nothing in writing
Some formalization –
systematic bookkeeping
Formalization in terms of
bookkeeping, contracts,
certification
Peter Hasle,
Centre for Industrial Production
12
A conclusion on the understanding of small
enterprises
• D o m i n a t e d b y o wn e r - m a n a g e r s
• T h e o wn e r - m a n a g e r s t a k e s p e r s o n a l i d e n t i t y f r o m t h e
business
• E m p l o ye r - e m p l o ye e r e l a t i o n s p e r s o n a l i z e d
• T h e o wn e r - m a n a g e r s p r o t e c t t h e s e l f f r o m p e r s o n a l g u i l t f o r
accidents and diseases
• R i s k i s d o wn g r a d e d a n d r e s p o n s i b i l i t y a t t r i b u t e d t o
e m p l o ye e s
• Wo r k e n v i r o n m e n t i s a p e r i p h e r a l i s s u e
• Scarce management resources is the most important limiting
factor
Peter Hasle,
Centre for Industrial Production
13
Challenges for preventive strategies
• Necessary to relate to business strategy
• N e g a t i v e r e a c t i o n s t o r e q u i r e m e n t s wh i c h d i s t r a c t t h e
attention from the core business
• Criticism of business is taken personally
• Information is only used if it arrives exactly as it is needed
• O wn e r - m a n a g e r s wa n t t o k n o w wh a t t o d o – n o t h o w t o f i n d
out
• A n d t o d o t h i n g s wi t h o u t p a p e r wo r k a n d m e e t i n g s
Peter Hasle,
Centre for Industrial Production
14
How do preventive actions work?
External: Market, stakeholders
Internally: Management and
organisation
Assumption
about how the
action will work
Context
Programme
theory
Outcome
Mechanism
Changes in
the working
environment
The causal relations
which create changes
Peter Hasle,
Centre for Industrial Production
Pawson, 1997 & 2006
15
A typology of policy instruments
Sermon
Stick
Carrot
Vedung, 1998
Peter Hasle,
Centre for Industrial Production
16
Policy instruments
Regulation (stick):
• G o v e r n m e n t l a ws , e n f o r m c e m e n t a n d p u n i s h m e n t
I n c e n t i ve s ( c a r r o t ) :
• Reduced insurrance fees, certification releases from
inspections, branding
Information (Sermon):
• Tr a i n i n g , d i s s e m i n a t i o n o f i n f o r m a t i o n
Most programmes includes elements of all instruments
Peter Hasle,
Centre for Industrial Production
17
An acceptable work environment standard as a
cornerstone
• O wn e r - m a n a g e r s n e e d t o m a i n t a i n a n i d e n t i t y a s s o c i a l l y
legitimate persons
• T h e y s e a r c h f o r a s t a n d a r d o f t h e wo r k i n g e n v í r o n m e n t wh i c h
stakeholders find acceptable
• The standard constitute the licence to operate
• T h e y s e a r c h f o r s i g n a l s f r o m e m p l o ye e s , c o l l e a g u e s ,
customers, and authorities in order to identify the acceptable
standard
• Increasing the level of the standard accepted by small
enterprises a key strategy
Peter Hasle,
Centre for Industrial Production
18
How to increase the acceptable working
environment standard
Instruments
Mechanism
Inspection
Express
societal
legitimacy
Recognition
by social
partners
Signals
social accept
Information
dissemination
Knowlegde
about
consequence
Legislative
standard
The standard
pursued by
small firms
Context
Peter Hasle,
Centre for Industrial Production
19
Developing a new standard for bricklaying
Peter Hasle,
Centre for Industrial Production
20
The road to a new standard for bricklaying
New standard
widely accepted
Enforcement by
labour inspectors
Social partners in
sector OHS-council
accept the need for
improvement
Enforcement by
labour inspectors
Enforcement
moratorium
New solution
recommended
by social partners
Development of solutions
supported by government fund
Technical solutions Involvement of suppliers
missing
Akward and straineous
work in bricklaying
Peter Hasle,
Centre for Industrial Production
21
The policy instruments and mechanisms in the
bricklaying case
A combination of policy
instruments
Regulation (stick):
• Improvement notices from labour
inspectors
• Enforcement moratorium
• Improvement notices based on the
new solutions
Incentive (carrot):
• Government fund support development of new technical solution
Knowledge (sermon):
• A code of practice with info on
technical aids and work methods
• Disseminated through several
platforms by all involved
stakeholders
Mechanisms
Coercion:
• Initial improvement notices
• Revnewed enforcement after
solution developed
Norms:
• Joint message from employers and
unions signals that the new
solution is both ethical responsible
and economically viabel
Imitation:
• Owner-managers and bricklayers
observe still more cases with the
new solutions being applied and
get convinced that it is the way to
do bricklaying in the sector
Strategies for action
A high standard
for an acceptable
wo r k e n v i r o n m e n t
Effective support
systems
Regulation
The social
partners
Outreach
activities
Inspection:
• Concrete
• Advisory
• Dialogue
• Involvement
• Integration in
legislation
• Responsibility
• Intermediaries
• Personal
• Context
Peter Hasle,
Centre for Industrial Production
Tools
•
•
•
•
Concrete
Solutions
Integration
Not Ri. Ass.
23
Developing effective support systems
We k n o w t h e r e q u i r e m e n t s f o r e ff e c t i v e t o o l s :
• Practical oriented - What to do –
• Not focus on identification of risk
• Low cost
• P o s i t i v e f o r wa r d l o o k i n g
• Linking to management goals and business strategy
We l a c k s u ff i c i e n t k n o wl e d g e a b o u t :
• C o s t - e ff e c t i v e a n d s u s t a i n a b l e o u t r e a c h a c t i v i t i e s
• Embedment after the first pilot project
• Integration in business strategy
Peter Hasle,
Centre for Industrial Production
24
Developing effective support systems
The small enterprise
The intermediary
organisation
Embedment of
the support
system
Dissemination
to the enterprise
Interpretation
= sensemaking
Change
process
Effects
Embedment
Organization of
Support activities
Peter Hasle,
Centre for Industrial Production
Tools for implementation of
work environment improvements
25
The process of sensemaking
• An external suggestion for improvements needs to make
s e n s e f o r t h e o wn e r - m a n a g e r
Does is:
• Solve a problem experienced as real and urgent?
• M a k e e m p l o ye e s h a p p i e r ?
• Increase legitimacy among stakeholders (customers, local
c o m m u n i t y, a u t h o r i t i e s , p e e r s ) ?
• Contribute to business survival?
Peter Hasle,
Centre for Industrial Production
26
Social relations in support systems
Someone wants somebody else to do somethin
Initiator
Intermediary
Small
enterprise
It is a social exchange with a two-sided relation
building on trust and mutual benefits
Thanks to inspiration from colleagues from NIOSH, USA
Peter Hasle,
Centre for Industrial Production
27
Intermediaries
• E m p l o ye r s a s s o c i a t i o n s
• Chambers of commerce
• Accountants
• Banks
• Large firms
• Occupational health services
• Educational institutions (universities, colleges, vocational
training centres)
• Small business advisory services
• Local community groups:
- E n v i r o n m e n t a l g r o u p s , s a f e t y n e t ( C a n a d a ) , f a r m e r s ’ wi f e s
(Denmark)
Peter Hasle,
Centre for Industrial Production
28
Integration in business strategy – the weak link
• T h e wo r k i n g e n v i r o n m e n t a s i d e c a r a s l o n g a s i n t e g r a t i o n i n
business strategy is low
• Solving a health and safety problem should also solve a
business problem
• Wo r k i n g a c r o s s s e c t o r s a n d i n t e r m e d i a r i e s n e c e s s a r y
Example:
• Better OHS planning in construction can improve the general
p l a n n i n g p r o c e s – b u t t h e m e t h o d s s h o u l d b e s i m p l e a n d wi t h
few requirements for formalizaton
• In Denmark such a method have been developed and are now
applied in practice
Peter Hasle,
Centre for Industrial Production
29
Conclusion
• T h e wo r l d n e e d s m o r e j o b s s o s e c u r e t h e e c o n o m y a n d
combat poverty
• Small enterprises constitute the backbone of job creation
• But new jobs need to be sustainable:
-
Economically
Socially
Healthy
Environmentally
• We n e e d t o d e v e l o p m e t h o d s , t o o l s a n d s u p p o r t s ys t e m s
wh i c h i n t e r g r a t e b u s i n e s s g o a l s wi t h h e a l t h a n d s a f e t y a n d
environmental concerns
• In close contact to non-OHS intermediaries
Peter Hasle,
Centre for Industrial Production
30
Thanks for your attention
Peter Hasle
hasle@business.aau.dk
Peter Hasle,
Centre for Industrial Production
31