What effect has the recession had on UK Managers by Les Worrall (Chartered Management Institute / Coventry University).

1. What effect has the
recession had on UK
managers?
Professor Les Worrall FCMI
Coventry University
© Les Worrall

2. From NICE to DRAG
• Economists have labelled the pre-Lehman boom
period as NICE - Non-Inflationary Continuous
Expansion
• They have labelled the “recovery” as DRAG -
Deficit Reduction Anaemic Growth
• Essentially we have moved from a NICE period
of debt-fuelled lunacy to a DRAG period of
economic self-flagellation and austerity
• What effect has the NICE to DRAG shift had on
UK managers?
© Les Worrall

3. "And we will never return to the old boom and bust."
Gordon Brown in his Budget Statement of 21st March 2007

6. The Quality of Working Life Series
• Began in 1997
• Repeated 1998, 1999, 2000, 2001, 2005 &
2007 with a partial study in 2004
• 2008 replicated in Australia and planned
to run in Australia again in early 2013
• Fortunately, a study was undertaken in
July 2007 just before the credit crunch hit
• Good opportunity to run the survey in
2012 to look at the effect of recession on
managers, their jobs, the pressures
affecting them and their organisations
© Les Worrall

7. Themes in the research
• Assessing the scale and nature of organisational change and their
effects and impacts
• Assessing changes in leadership styles and exploring their effects
• Examining how organisations’ health has changed
• Assessing changes in managers’ health and wellbeing
• Looking for changes in work patterns, work life balance, work
intensification and extensification and their effects
• Looking at changes in job satisfaction, employee engagement,
task discretion, job control, job security, morale, motivation etc
• Looking at changes in relationships with line and senior
managers, reciprocal trust, communications, behaviours etc
• Looking at differences by sector, by level in the organisation, by
firm size
© Les Worrall

8. What has happened to
organisational growth/decline
since 2007?

9. Organisational growth/decline
50 48
45
40 38
35 33
31 31
30
25 2007
20
19 2012
15
10
5
0
Declining Stable Growing
Is your organisation declining, growing or stable?
© Les Worrall

10. Sector differences in growth/decline
in 2012
60
Public Private
50
47% in decline 19% in decline
15% growing 44% growing
40
Declining rapidly
Declining
30
Stable
Growing
20
Growing rapidly
10
0
Charity Public sector Private sector Total
2007
A tale of two sectors Private - 60% growing, 14% declining
Public - 32% growing, 26% declining
© Les Worrall

11. How much organisational change
has there been?
What effects has it had?

12. The experience of organisational change
in 2012
Charity/ Public Private
Percentage All
NFP sector sector
Organisational restructuring 74 91 76 83
Cost reduction programmes 74 91 76 82
Redundancy - voluntary 43 78 30 53
Culture change programmes 52 57 46 51
Changed employees' terms and conditions 46 61 37 49
Redundancy - compulsory 41 47 37 42
Delayering 18 39 21 29
Increased use of temporary/agency staff 24 23 26 24
Outsourcing 17 29 21 24
Merger/acquisition 12 14 25 19
Offshoring 2 2 12 6
Change is pervasive, multi-facetted, unrelenting and
primarily driven by cost reduction
© Les Worrall

13. Negativity to change by level in the
hierarchy in 2012
80% of junior managers
disagreed that the effect of
change was to increase morale Morale increased
Director
80
70
Senior
Accountability
60
Motivation increased
increased Middle
50
40 Junior
30
20
Job control increase Job insecurity increased
10
0
Flexibility increased Loyalty increased
Decision making faster Wellbeing increased
The figures show the percentage of respondents who DISAGREED with the statement
© Les Worrall

14. Harder, Faster, Longer
• 66% said the pace of work had increased
• 76% said the volume of work had increased
• 78% said the pressure to work harder had
increased
• 61% said the pressure to work longer hours
had increased
• All measures were at their highest in the
public sector
© Les Worrall

15. Impact of organisational change
• Significant attitudinal shifts – increased job insecurity,
reduced task discretion accompanied by increased
surveillance through performance monitoring
• Significant increases in workplace pressure – to work
harder, faster and longer with clear signs of work
intensification and extensification
• Significant impacts on sense of wellbeing, job
satisfaction, loyalty, employee engagement, morale
• Significant differences between views inside and
outside the boardroom
• Significant changes in the managerial labour process?
© Les Worrall

16. The effects of organisational change
• REDUCED – loyalty to the organisation, morale,
motivation, sense of job security, sense of wellbeing,
sense of being in control of one’s job, employee
engagement, job satisfaction
• INCREASED – pace of work, volume of work, pressure to
work harder, faster and longer, sense of workplace
surveillance and being controlled
• CONCERNS – change does not achieve its objectives and
has negative consequences – key skills, knowledge and
experience are lost, risk aversion increases, expected
productivity gains are not achieved
• CONCERNS – organisations and employees are being
affected by waves of overlapping change
© Les Worrall

17. Your organisation as a place
to work

18. Some changes from 2007 to 2012
• Overall job satisfaction declined from 62% to 55%
• The percentage thinking that senior management was
managing change well declined from 45% to 30%
• The percentage thinking that senior managers were
committed to promoting employee wellbeing declined
from 55% to 39% – the largest decline in any of our
comparable measures
• The percentage of managers who felt that they were
treated fairly by their organisation fell from 60% to 54%
• The percentage thinking their organisation was a good
employer declined from 69% to 64%
© Les Worrall

19. The organisation as a place to work
by level in the hierarchy in 2012
Percentage agreeing or strongly agreeing with each Senior Middle Junior
Directors All
statement managers managers managers
I feel proud to work for my current organisation 85 67 59 52 64
My organisation is a good employer 80 68 59 56 64
I have a strong sense of attachment to my
83 67 55 55 63
organisation
I feel well informed about what is going on in my
83 60 45 41 54
organisation
I feel fairly treated by my organisation 76 54 49 44 54
Employees are wary about taking time off work
24 30 32 36 31
even when they are ill
I have trust and confidence in senior managers 72 50 35 27 43
I believe that senior managers have trust and
82 69 61 39 62
confidence in me
I feel motivated to do my best for my organisation 88 72 62 58 68
I would recommend my organisation to others as a
72 53 49 42 52
good place to work
If I could find another job, I would leave 19 32 38 47 36
I feel empowered to make decisions within my
85 63 51 34 56
organisation
Senior managers in my organisation are committed
62 42 34 27 39
to promoting employee wellbeing
This organisation has a clear sense of direction 74 52 48 48 53
I think senior management manage change well in
62 32 20 21 30
my organisation
Overall, I am satisfied with my job 80 58 49 46 55
© Les Worrall

20. Organisation as a place to work by
level in the hierarchy
Directors
Senior managers
proud Middle managers
90
satisfied good employer Junior managers
80
70
manage change attachment
60
50
40
sense of direction 30
well informed
20
10
employee wellbeing 0 fairly treated
empowered wary
would leave trust
recommend trusted
motivated
© Les Worrall

21. The organisation as a place to work by
sector in 2012
Charity/not Public Private
Percentage agreeing or strongly agreeing with each statement All
for profit sector sector
I feel proud to work for my current organisation 78 56 67 64
My organisation is a good employer 72 56 70 64
I have a strong sense of attachment to my organisation 75 60 63 63
I feel well informed about what is going on in my organisation 63 45 60 54
I feel fairly treated by my organisation 64 44 60 54
Employees are wary about taking time off work if they are ill 22 34 31 31
I have trust and confidence in senior managers 53 30 53 43
I believe that senior managers have trust and confidence in me 68 54 68 62
I feel motivated to do my best for my organisation 74 64 70 68
I would recommend my organisation as a good place to work 61 43 58 52
If I could find another job, I would leave 34 42 30 36
I feel empowered to make decisions within my organisation 62 51 59 56
I think senior managers are out of touch with my organisation 16 38 28 31
Senior managers are committed to promoting employee
52 30 44 39
wellbeing
This organisation has a clear sense of direction 53 42 62 53
I think senior management manage change well in my
34 18 39 30
organisation
Overall, I am satisfied with my job 63 49 60 55
© Les Worrall

22. Organisation as a place to work by
sector
proud
satisfied 80
good employer Charity
70
manage change 60 attachment Public
50
40
Private
sense of direction well informed
30
20
10
employee wellbeing fairly treated
0
out of touch wary
empowered trust
would leave trusted
recommend motivated
© Les Worrall

23. Organisation as a place to work 2007 and
2012 compared
2007
Proud to work for my
2012
organisation
80
Organisation is a good
I am satisfied with my job 70
employer
60
50
Senior management are
40 I feel well informed
managing well
30
20
10
Clear sense of direction 0 I feel fairly treated
I have trust in senior
Clear about my role
managers
Organisation committed Senior managers have
to employee well-being trust in me
I feel empowered
© Les Worrall

24. Organisation as a place to work:
public sector 2007 and 2012
Proud to work for my 2007
organisation 2012
80
Organisation is a good
I am satisfied with my job 70
employer
60
50
Senior management are
40 I feel well informed
managing well
30
20
10
Clear sense of direction 0 I feel fairly treated
I have trust in senior
Clear about my role
managers
Organisation committed
Senior managers trust
to employee well-being
Empowered to make
decisions
© Les Worrall

25. What are the prevailing leadership
styles in the UK?
How are they changing?

26. Leadership styles 2004, 2007 & 2012
Bureaucratic
45. 0%
Paternalistic 40. 0%
Reactive
35. 0%
30. 0%
Suspicious 25. 0%
Authoritarian
20. 0%
15. 0%
10. 0%
Entrepreneurial 5.0 %
Risk-averse 2012
.0%
2007
2004
Trusting Accessible
Consensual Empowering
Secretive Innovative
© Les Worrall

27. Leadership styles by sector, 2012
Bureaucratic
70 Charity
Entrepreneurial Authoritarian
60
Public sector
50
Paternalistic 40 Reactive Private sector
30
20
Consensual 10 Risk-averse
0
Trusting Accessible
Innovative Empowering
Suspicious Secretive
© Les Worrall

28. Leadership styles of growing and
declining private sector firms
Authoritarian
50
Innovative 45 Bureaucratic
40
35
Trusting 30 Reactive
25
20
15
10
Paternalistic 5 Secretive Declining
0
Growing
Entrepreneurial Risk-averse
Consensual Suspicious
Empowering Accessible
© Les Worrall

29. Authoritarianism and employee
engagement in 2012
Non-authoritarian Authoritarian
My organisation is a good employer 76.3% 35.7%
Overall, I am satisfied with my job 67.3% 27.6%
I feel fairly treated by my organisation 64.8% 27.7%
I have trust and confidence in senior managers 54.5% 17.6%
I would recommend my organisation to others as a good place to work 63.1% 26.6%
I feel empowered to make decisions within my organisation 66.3% 32.2%
I feel proud to work for my current organisation 74.0% 40.1%
Senior managers are committed to promoting employee wellbeing 48.8% 15.9%
I believe that senior managers have trust and confidence in me 72.1% 39.3%
I feel motivated to do my best for my organisation 76.5% 48.2%
I feel well informed about what is going on in my organisation 62.1% 34.9%
I have a strong sense of attachment to my organisation 70.6% 44.1%
I think senior managers are out of touch with my organisation 22.8% 49.5%
If I could find another job, I would leave 26.3% 56.9%
© Les Worrall

30. Which leadership styles most enhance/depress
employee engagement?
From Worrall and Cooper, 2013

31. Leadership styles and reciprocal trust
Entrepreneurial
70% Low trust
Authoritarian 60%
Innovative
50% High trust
40%
Bureaucratic Accessible
30%
20%
10%
Reactive 0% Empowering
Risk-averse Consensual
High trust – I trust senior
Suspicious Paternalistic
management and they trust me
Secretive Low trust – I don’t trust them
© Les Worrall
and they don’t trust me

32. Do managers feel any healthier?

33. Changes in symptoms since 2007
% %
Sometimes Sometimes
Percentage Change
or often or often
2012 2007
Having difficulty concentrating 45 37 8
Avoiding contact with other people 33 25 8
Insomnia / sleep loss 60 55 5
Loss of sense of humour 36 31 5
Feeling unable to cope 30 25 5
Feeling or becoming angry with others too easily 45 41 4
Constant irritability 37 33 4
Mood swings 31 27 4
Difficulty in making decisions 27 23 4
Unable to listen to other people 25 21 4
Constant tiredness 61 58 3
Feeling nauseous or being sick 18 15 3
Indigestion or heartburn 36 34 2
Panic or anxiety attacks 15 13 2
Muscular tension / aches and pains 57 56 1
Headaches 47 46 1
Lack of appetite or over-eating 47 48 -1
© Les Worrall

34. Absence, job satisfaction and
motivational state in 2012
Average days
Motivational state absence
Not motivated at all 11.3
Not motivated 5.0
Neither 3.7
Motivated 2.9
Highly motivated 1.3
Total 3.7
I am satisfied with my Average days
job absence
Strongly disagree 9.1
Disagree 5.2
Neither 3.9
Agree 2.9
Strongly agree 1.2
© Les Worrall Total 3.7

35. Some key points from 2012
• 45% reported difficulty in concentrating
• 30% had found difficulty in coping
• 15% had had anxiety or panic attacks
• 60% had had difficulty sleeping
• All but one of our 17 measures got worse
• The percentage reporting suffering stress increased from
35% to 42%
• The percentage reporting suffering from depression
increased from 15% to 18%
• Deterioration was worst on many of the measures that
affect your ability to do your job – difficulty in concentrating,
sleep loss, avoiding other people, feeling unable to cope,
irritability
© Les Worrall

36. Symptoms of ill-health and
organisational growth in 2012
Lack of appetite/over-
eating
Having difficulty 80
Indigestion/heartburn
concentrating 70
Unable to listen to other
60 Insomnia/sleep loss
people
50
40
Mood swings Headaches
30
20
Avoiding contact with 10
Declining
Aches and pains
other people 0 Stable
Growing
Feeling unable to cope Feeling nauseous
Constant tiredness Panic/anxiety attacks
Becoming angry with
Constant irritability
others too easily Difficulty in making
Loss of sense of humour
decisions
© Les Worrall

37. Symptoms by level in the hierarchy in
2012
Director
Lack of appetite or over- Senior manager
eating
Having difficulty 80
Middle manager
Indigestion or heartburn
concentrating 70 Junior manager
Unable to listen to other
60 Insomnia / sleep loss
people
50
Mood swings 40 Headaches
30
20
Avoiding contact with 10 Muscular tension / aches
other people 0
and pains
Feeling nauseous or
Feeling unable to cope
being sick
Constant tiredness Panic or anxiety attacks
Feeling or becoming
Constant irritability
angry with others too… Difficulty in making
Loss of sense of humour
decisions
© Les Worrall

38. Incidence of symptoms by sector in
2012
Constant tiredness Charity/NFP
Panic or anxiety attacks 70 Insomnia / sleep loss
Feeling nauseous or 60 Muscular tension /
being sick 50 aches and pains Public sector
40
Unable to listen to other Lack of appetite or over-
people 30 eating
20 Private sector
Difficulty in making 10
Headaches
decisions 0
Having difficulty
Mood swings
concentrating
Feeling or becoming
Feeling unable to cope
angry with others too…
Avoiding contact with
Constant irritability
other people
Indigestion or heartburn Loss of sense of humour
© Les Worrall

39. Inability to cope by detailed sector in
2012
% who felt sometimes or often
Business sector
unable to cope
Central/local government 43
Education 28
Health/social care 24
Other 20
Banking/insurance/finance 13
Engineering 12
Manufacturing 11
Transport 9
Other business services 8
Uniformed/emergency services 8
Computer/IT services 7
Construction 6
Sales/marketing/advertising 4
Utilities 4
Retail 3
Tourism/hospitality/leisure 2
© Les Worrall

40. What has happened to working
hours?
What effect does working long
hours have?

41. Percentage of managers working over
their contract hours 2000-2012
50
45
40
35
30 2000
25 2005
20 2007
2012
15
10
5
0
None 30 mins 1 hour 90 mins 2 hours or more
© Les Worrall

42. The effect of working long hours
Very Very %
-ve No +ve
Percentage -ve +ve Negative
effect effect effect
effect effect 2012
Your time for exercising 24 47 27 1 0 72
Your stress levels 19 40 37 5 0 59
Your social life 14 44 41 1 0 58
Your psychological health 14 42 41 3 0 56
Your involvement in community
19 36 43 1 1 55
activities
Your physical health 13 41 45 1 0 54
Your opportunity for professional
13 38 42 6 1 51
development
Your relationship with your
7 42 50 1 1 49
spouse/partner
Your morale 5 29 57 7 1 35
Your productivity 3 21 40 33 3 24
Your relationship with your
2 15 67 16 0 17
colleagues
© Les Worrall

43. Summary of key issues and
predictions for the next
year

44. Summary of key changes (1)
• Decline and stalled growth
• Some growth in private sector but significant
decline in the public sector
• Increased pace, variety, complexity and
impact of organisational change
• Primacy of cost reduction driven change –
change is “all about” taking out costs but cost
reduction has its costs
• Directors have much rosier view – are they
out of touch and delusional?

45. Summary of key changes (2)
• Job satisfaction and employee engagement
have declined especially in the public sector
• Leadership styles – more bureaucratic,
authoritarian and risk-averse and compared
unfavourably to Australia in 2008
• Have people lost faith and trust in senior
management?
• Deterioration in many of our workplace
health measures especially those that impact
on managers’ ability to do their jobs

46. Summary of key changes (3)
• Managers are working harder, faster and
longer with less role autonomy and task
discretion
• Is managerial work being degraded despite
the hype about empowerment and job
enrichment?
• Strong relationship between organisational
health and employee health
• Trust relations with senior management and
line management have weakened

47. Is there light at the end of the tunnel?

48. Some predictions (1)
• 2013 – “a hard year of slog”; a “groundhog year”; triple dip
recession? austerity to last to 2018?
• Pay will continue to lag behind inflation reducing
disposable income
• If disposable income is low and the government austerity
agenda continues, where can growth come from?
• “Workplace disgruntlement in the private sector will ….
take the form of simmering distrust of bosses, especially
those who adopt the trendy management speak mantra of
'employee engagement' while piling the pressure on
overstretched staff”
• Increased resistance/militancy in the public sector

49. Some predictions (2)
• “in 2013 increased hours of work and greater
work intensity, rather than job cuts or further pay
restraint, are forecast to be the main drivers of
higher productivity and unit labour cost control”
• “Job insecurity is forecast to remain at the
heightened levels prevailing since the financial
crisis first struck in 2008. People in work will
maintain ‘a grin and bear it’ attitude to their jobs
and work as hard as required by their employers,
indeed in many cases welcoming the opportunity
of longer hours to support squeezed incomes”
• Source: John Pilpott - http://media.wix.com/ugd//44bcc3_61cccb92b4a2187bd0edca623e70c5c3.pdf

50. Worrall L and Cooper C.L. (2013) Improving the Quality of Working Life: positive
steps for senior management teams. London: CMI
If you want to download the report or look at the Quality of Working Life
resources material go to:
http://www.managers.org.uk/quality-working-life-resources
If you want to contact me, my email address is leslie.worrall@coventry.ac.uk