Presentations from a seminar at SSE on 16 November 2015: “Not invited to the Christmas party: Keeping sustainable company values and competence with increasing use of external competence providers”. Presentations by: Edin Colak, Ellen Montén, Pernilla Bolander, Sofia Vahlne.

1. WELCOME TO THE SEMINAR:
“NOT INVITED TO
THE CHRISTMAS PARTY”

2. NOT INVITED TO THE
CHRISTMAS PARTY
2
Keeping sustainable company values
and competence with increasing use
of external competence providers

3. 3
Welcome
CARL-VIGGO ÖSTLUND
Chairman, Pause Sholarship Foundation
INGALILL HOLMBERG
Professor, Department of Management and Organization,
SSE
Leading a mixed workforce
EDIN COLAK
MSc, SSE and Recipient of the Global Village/Pause
Scholarship 2015
International patterns in leading
external providers
ELLEN MONTÉN
BSc, SSE and Recipient of the Global Village/Pause
Scholarship 2015
PROGRAM
Multiple HR systems for mixed
workforce
PERNILLA BOLANDER
Assistant Professor, Department of Management
and Organization, SSE
Scania case
SOFIA VAHLNE
Lawyer, Manager, HR, Scania
Discussion and concluding remarks
INGALILL HOLMBERG
Professor, Department of Management and Organization,
SSE
Lunch and mingle

4. 4
CARL-VIGGO ÖSTLUND
Chairman, Pause Sholarship Foundation
INGALILL HOLMBERG
Professor, Department of Management
and Organization, SSE

5. 5
EDIN COLAK
MSc, SSE
Recipient of the Global Village/Pause
Scholarship 2015

6. HAPPILY EVER
AFTER?
How the use of temporary
employees
affect standard and nonstandard
employees’ attitude and behavior
towards organizations
Pause Scholarship foundation
Edin Colak
16-11-2015

7. THE HETEROGENEOUS WORKFORCE IS
HERE TO STAY
• What is contingent work?
• Contingent work one of the most spectacular and important
evolutions in Western working (cf. De Cyuper et. al., 2008 )
• How does the use of temporary employees affect both standard and
nonstandard employees’ attitude and behavior towards the
organization?
– Employee perspective: coordination, learning, and shared values among the
workforce
– Organizational perspective: strategic flexibility, cost structure, ability to adapt to
changing market conditions
16-11-2015 7

8. DEFINING TEMPORARY EMPLOYMENT
• Contingent, temporary, non-permanent, casual etc.?
• “Work done on a fixed schedule – usually full-time – at the
employer’s place of business, under the employer’s
control, and with the mutual expectation of continued
employment” (Kalleberg, Reskin & Hudson, 2000: 258).
• Standard employment agreements (SEA) differ from
nonstandard employment arrangements in three dimensions
– Permanency and continuity of employment
– Employees under SEA work at employer’s workplace, on the employer’s
premise and under the employer’s supervision as compared to their
counterparts
– Benefits and entitlements
16-11-2015 8

9. PSYCHOLOGICAL CONTRACTS FOR
UNDERSTANDING EMPLOYEE BEHAVIOR
• “Idiosyncratic set of reciprocal expectations held by employees
concerning their obligations and their entitlements” (cf. McLean et.
al., 1998: 698)
• Transactional and relational psychological contracts
• Type of psychological contract affect how employees perceive
factors related to their working environment
– Work stress
– Social comparison and social exchange
16-11-2015 9

10. FOUR GENERAL PSYCHOLOGICAL
OUTCOMES EVOKED
• Job satisfaction
– Low job satisfaction believed to evoke unfavorable attitudes and behaviors
– In general results are inconclusive
• Organizational commitment
– High organizational commitment should result in more favorable attitude and
behavior
– Scattered results both supporting and opposing theory
16-11-2015 10

11. FOUR GENERAL PSYCHOLOGICAL
OUTCOMES THAT ARE EVOKED
• Well-being
– Linked to perceived uncertainty and is believed to be high when uncertainty is
low
– No greater evidence for any major conclusions to be drawn
• Productive behaviors
– Productive behaviors are believed to be favorable in cases of high level of job
security, organizational commitment and well-being
– No firm conclusions can however be drawn in regards to employees’ productive
behaviors from research
16-11-2015 11

12. GROUP HETEROGENEITY TO
UNDERSTAND PSYCHOLOGICAL
OUTCOMES
• Consequences of group heterogeneity depend on the relative
proportions of majority and minority sub-group members
• Greater portions of minority members will evoke increasingly
negative psychological and social reactions among members of the
majority
• Temporary employees are seen as a minority group affecting
psychological reactions among group members toward their
supervisors, peers, and work groups
16-11-2015 12

13. MANAGERIAL IMPLICATIONS
• Contingent work must fit into the organization's overall business
strategy if it is to be successful
• Transparency behind the aims of using contingent work towards all
parties is key if capitalization is to be optimal
• Employees need to feel as, and be, one team if high productivity and
good results are to be obtained
16-11-2015 13

14. THANK YOU!
14

15. 15
ELLEN MONTÉN
BSc, SSE
Recipient of the Global Village/Pause
Scholarship 2015

16. Ellen Montén I November 2015
Temporary employees and outsourcing:
Dos and don’ts from international examples
How should a leader act to make sure that hiring temporary
employees and/or outsourcing does not affect the organisation
and current employees in a negative way? What are the main risks
one should be aware of when implementing these changes?
27 interviews 5 mini
cases
1
/14

17. Ellen Montén I November 2015
Background
Outsourcing Temporary Employees
o Outsourcing is present in-house
o What is outsourced is changing
o Problem area: Relationship
between provider and customer
o Increasing in the Nordics
o Increased number of part-time
and temporary jobs in the EU
o Full-time will become less of a
standard
o In 2013 close to 700 000
temporary employees in Sweden
2
/14

18. Ellen Montén I November 2015
Background
3
/14

19. Ellen Montén I November 2015
Background
4
/14

20. Ellen Montén I November 2015
Background
5
/14

21. Ellen Montén I November 2015
Background
25% 76%
6
/14

22. Ellen Montén I November 2015
Background
What we think
organisations look like…
What organisations
will look like…
Dual loyalties? Harder to work in
close teams? Not invited to the
Christmas party?
7
/14

23. Ellen Montén I September 2015
International best and worst practices
1 Young professional from Spain
o High unemployment
o Outsourcing and temporary
employees seen as a threat
 Biases, lack of
information/education
8
/14

24. Ellen Montén I September 2015
International best and worst practices
2 Business student from South Korea
o Loyalty is central
o Dual loyalties = Risk
 Clear communication, moving
slow
9
/14

25. Ellen Montén I September 2015
International best and worst practices
3 Young entrepreneur from Ghana
o Sharing resources and
employees
o Familiar approach to employees
 Personal connections used to
limit risk added by dual loyalties
10
/14

26. Ellen Montén I September 2015
International best and worst practices
4 Student from Egypt
o Personal story – no
communication
o Drastic loss of initial employees
 There is a negative
reputation, work against it
11
/14

27. Ellen Montén I September 2015
International best and worst practices
5 Marketing student from Hong Kong
o Personal story
– the startups do it right
o Open work place
= Inclusive business
 One team, even if employees
comes and goes
12
/14

28. Ellen Montén I September 2015
Key words: Communication,
Inclusion, Pace, Connecting, Biases
Let’s dwell on that…
Setting the
pace
Communicating
Handling the
biases
Including the
employees
Connecting 
Motivation
Building a team where
people feel needed and
where temporary
employees can come
and go with ease.
13
/14

29. Ellen Montén I September 2015
Q&A
Thank you!
14
/14
Report available at pause-stiftelse.com/stipendiater

30. 30
PERNILLA BOLANDER
Assistant Professor, Department of
Management and Organization, SSE

31. MULTIPLE HR SYSTEMS FOR A MIXED
WORKFORCE
31
Pernilla Bolander
Department of Management and Organization
Stockholm School of Economics

32. Retention
management
Competence
development
HR policies, processes and practices
Human Resource
strategy
Business
strategy
Recruitment and
induction
Performance
management
HR SYSTEM
Knowledge
management
Change
management

33. SOME QUESTIONS RAISED
• Who is responsible for introducing new employees to the organization
in an adequate manner?
• How are different employee groups developed? Who makes sure
they have the right competencies?
• How is goal alignment achieved throughout the whole organization?
• How to secure knowledge that is created in interaction between
different employee groups?
• How to create loyalty among different employee groups?
• How can unified change be achieved in organizations with different
employee groups?
33
Retention
management
Competence
development
Recruitment and
induction
Performance
management
Knowledge
management
Change
management

34. MIXED WORKFORCE
• From core and peripheral employees…
• … to a more complex mix of internal full-time
employees, temporary employees, contract workers,
interim managers, employees at off-shore sites,
consultants on long-term contracts working side-by-
side with internal employees, and so on
34

35. MULTIPLE HR SYSTEMS FOR A MIXED WORKFORCE
35
HR
system 1
HR
system 3
HR
system 2

36. MULTIPLE HR SYSTEMS FOR A MIXED WORKFORCE
36
ALLIANCE
Collaborative HR
system
DEVELOPMENT
Commitment-
based HR system
CONTRACTING
Compliance-based
HR system
ACQUISITION
Market-based HR
system
High uniqueness
Low uniqueness
High valueLow value
Source: Lepak & Snell (1999)

37. MULTIPLE HR SYSTEMS FOR A MIXED WORKFORCE
37
HR
system 1
HR
system 3
HR
system 2

38. 38
SOFIA VAHLNE
Lawyer, Manager, HR, Scania

39. 39
Partnership driven leader in the shift towards
sustainable transport systems

40. 40
Strategy – focus on customer profitability
Scania’s offering
 Provider of sustainable
transport solutions
 Long-term commitment
 Premium product and
services

41. 41
Provider of transport solutions
 Heavy trucks
 Heavy buses
 Engines
 Workshops
 Service agreements
 Parts
 Driver training
 Scania Assistance
 Scania Rental
 Operational leases
 Financial leases
 Hire purchase
 Insurance solutions
Products Services Financing

42. More than 1,600 sales and service points
globally – 1,000 in Europe
Sales and service network
Non-captive
Captive

43. Scania’s Core values
QualityRespect for the individualCustomer First
Scania’s core values permeate its entire corporate culture and
influence its day-to-day work. Customer first, Respect for the
individual and Quality are closely linked and apply in unity. They
constitute the starting point for all business development.

44. 44
Respect for the individual
 Recognising and
using all employees’
knowledge
 Ideas and inspiration from
day-to-day operations

45. Example temporary work – production Sweden
 Why:
 Flexibility
 Increased job security for
 individuals
 Only way in to employment
 How:
 Agreement with union
 Partnership with suppliers
 Implementation project – three parties
 Continous improvement
 What:
 Equality in salary, work clothes, competence
development, job rotation etc
45

46. Example consultants / development assignments – R&D/IT
 Why:
 Flexibility
 Competence
 Volontary – one of
 recruitment bases
 How:
 Consultants on site
 Outsourcing / development assignments
 What:
 Equality in values
 General guidelines
 Aim transfer of competence
46

47. Success factors and challenges
 Values apply to everyone working at Scania
 Corporate culture integrated in partners
 Transparency and involvement
 Sustainability in the supply chain
 Future?
 Global minimum requirements with local variations
 Prioritising – long term vision / daily business
47

48. Activities at Scania
 Skill Capture – mindset journey, collect best practice,
aggregate corporate HR activities
 Sustainability integrated into leadership trainings
 Improving global HR guidelines – ex labour relations,
flexibility
48

49. Scania Labour Relations – why?
51
0
20,000
40,000
60,000
Produced vehicles/year
1995 2014
Vehicles produced
per employee80,000
100,000
0.0
2.0
4.0
6.0
8.0
10.0
3.5
6.5
1. Scania core values
2. Continous
improvement –
capturing the skills
3. Compliance

50. 52

51. 53
DISCUSSION AND
CONCLUDING REMARKS
Moderator: Ingalill Holmberg

52. THANK YOU
54