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Self-directed behavior in the Industry 4.0 era.

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International Conference on Maintenance and Rehabilitation of Constructed Infrastructure Facilities: July 19 – 21, 2017


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Self-directed behavior in the Industry 4.0 era.

  1. 1. 1 SELF-DIRECTED BEHAVIOR IN THE INDUSTRY 4.0 ERA HOW TO GET PEOPLE TO WORK BY THEMSELVES? 2017 International Conference on Maintenance and Rehabilitation of Constructed Infrastructure, Seoul, Korea Jeonghwan (Jerry) Choi, PhD, MBA, ME
  2. 2. 2 THE RESEARCHER Jeonghwan (Jerry) Choi, PhD; MBA; ME, is a people management and people development expert. This former engineer and global business strategist aims to cultivate new knowledge of entrepreneurial and disciplined business talent development for goodness. He is teaching management courses at Kean University (New Jersey and Wenzhou campus in China) after completing his PhD in HRD at University of Illinois at Urbana-Champaign. Technology Global Business Strategy People Development and Management
  3. 3. 3 Industry 4.0 initiated by German Government, which promotes the “fully computerization of manufacturing”. Dr. Siegfried Dais has been deputy chairman of the board of management at Robert Bosch GmbH until 2012 and is partner at Robert Bosch Industrietreuhand KG since 2007. Dr. Heinz Derenbach has been chairman of the executive board of Bosch Software Innovations GmbH since 2011. 2011 2013 2016 Why not? BOSCH’s fully computerized & networked Global production initiative! Four design principles in Industry 4.0 • Interoperability (e.g. IoT) • Information transparency • Technical assistance (e.g. cognitive, physical support) • Decentralized decision (e.g Autonomous / Self- directed work team!) Klaus Schwab’s Fourth Industrial Revolution (4IR) at WEF 2016 (Jan.) 2017 Oops… Wait!
  4. 4. 4 A TENSION BETWEEN SUBORDINATE AND SUPERVISOR Subordinates want more autonomy to address frontline or local demands. Supervisors demand more self-directed employee behavior. • Email interviews & Telephone interview with 33 employees from 18 companies in 6 different countries. • Interview protocol: What is the most important thing to achieve a high performance? • Computer Aided Qualitative Data Analysis System (CAQDAS, Atlas.ti) technique was applied to draw a theme. • Self-directed employee participation/engagement in work emerged as a critical theme. What is the most important thing for you to achieve a high performance?
  5. 5. 5 A REAL VOICE FROM FIELD “You can lead a horse to water, but you can’t make him drink.” (A quote from a manager at a Korean Automotive Manufacturing Company) “Employees’ self-directed participation in work is the most important thing to achieve a high performance.” (A quote from a director at a Korean Automotive Parts Manufacturing Company) Introduction How can we get employees to work by themselves?
  6. 6. 6 ENGINEER ‘HAN’ CASE Bring new ideas Taking initiative Redesigning tasks even if it is not required Going against general procedures if he think it helps achieving team/org goals Introduction • In depth telephone interviews with 9 engineers at a R&D team of a large Korean manufacturing company • Interview protocol: “How to get people work to address a technical problem by themselves?” • Engineers indicated “Han” as the most self-directed employee.
  7. 7. 7 DEMAND FOR SELF-DIRECTED EMPLOYEE Self-directed employees are the key resource to make continual organizational successes in recent quickly changing business environments. Work nature change Technology advancement Globalization Continual Organizational Successes Introduction
  8. 8. 8 RESPONSES TO THE DEMAND Recently many corporations introduce and implement ‘Autonomy Supporting Human Resource Practices’ (Google 20% rule, 3M 15% rule, Result-Only-Work-Environment). Google employees can spend one day a week working on their own projects that are not necessarily in the job description. In ROWE system, employees can decide how they work, when they work, and where they work, all by themselves. 3M allows employees to spend 15% of their time on individual research or initiative. But not all business organizations have been able to reap the benefits of the management practice! Why? Introduction
  9. 9. 9 THEORETICAL FRAMEWORK According to the Kurt Lewin’s Field theory, human behavior is a function of environment and person. Bandura’s social learning theory indicated that human behavior changes through the self- regulation process that comes from continual interactions with personal factors and environmental influences. Introduction [P] Developable Personal Factor [E] Environmental Influences at Work [B] Human Behavior B = f (E, P) Perception of Autonomy from Self-determination theory PsyCap from Positive Organizational Behavior theory Self-directed behavior from Self-leadership theory
  10. 10. 10 POPULATION & SAMPLE Method The target population for this study was employees in large Korean automotive parts manufacturing companies. 670 surveys were distributed at six large Korean automotive parts manufacturing companies. 489 (73%) employees participated in the study. 331 datasets (288 subordinates; 43 supervisor) were analyzed after matching and screening. Highly collectivistic, hierarchical, and uncertainty avoidant culture Equivalent work structure and work process (e.g. QS-9000 or ISO-9001 Certificated) Korean automotive parts manufacturing industry has sustainably grown in global economy Individualistic and uncertainty tolerate culture Flexible and flat organizational structure US service industry (Bank, Education, Healthcare) Western/US
  11. 11. 11 MEDIATION EFFECT ANALYSIS Positive Psychological Capital (PsyCap) fully mediates the relationship between Autonomous Work Environment and Self-directed Behavior. Note: Coefficients are unstandardized values. * p < .05; ** p < .01 Result Subordinate Self-SDB PsyCap AWE β = .586** p <.001 β = -.139 p =.053 β = .875** p <.001 Coefficient p Indirect effect (Sobel) .513** < .001 Direct effect - .139 .053 Total effect .374** < .001
  12. 12. 12 MULTILEVEL MEDIATION EFFECT Empowered ”Manager” and Positive “Employees” draw the best Self-directed Behavior. Coefficient p Indirect effect .050* .033 Direct effect .627** < .001 Total effect .678** < .001 Level 1(Individual) Level 2 (Work group) Supervisor rated subordinate’s SDB Subordinate PsyCap Supervisor AWE β = .627** P = < .001 β = .222** p = .001 β = .227 p = .089 Result
  13. 13. 13 KEY FINDING Discussion Without nurturing the positive psychological capital, the autonomy supporting management practice would not work well in promoting self-directed employee behavior. Clear goal and more decision powers to supervisors Institutionalize self-directed behavior Provide autonomous work environment Develop positive psychological capital
  14. 14. 14 PRACTICAL IMPLICATIONS • Top management: Delegate more decision powers to supervisors (Empowerment) to promote self-directed employee behavior. • HR Manager: Institutionalize the Self-directed Behavior as a key performance index. • Provide the PsyCap training program or intervention. • Frontline manager: Learn how to design and allocate meaningful jobs or tasks for subordinates to develop subordinates’ PsyCap. • Frontline workers: Take responsibility in developing and sustaining personal positive PsyCap (Participating training programs and Self-directed learning). The researcher suggests several practical implications for organizational leaders, HR professionals, and frontline managers to promote self-directed employee behavior. Discussion
  15. 15. 15 IN SHORT… Make your people “POSITIVE” to get them work by themselves ! https://www.youtube.com/watch?v=9bZkp7q19f0
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