Surveys had shown that customers specifically wanted telecom installations to take place outside working hours to minimize disruption to their businesses, rather than having to fit in with the installation department’s risen substantially, so a new system of operation was required.
The new scheme, which arose from a joint management and installation engineers working party, was introduced in 1993. Engineers have a choice out of seven annual hours totals-from 1800 (the original basic hours) up to 2520. Having made their choice, the engineers are guaranteed the work level for the year and receive the same pay cheque each month, irrespective of the hours they actually work. The teams, consisting mostly of two engineers, are allocated work that has a fixed number of hours calculated from the contract price. The teams are then empowered to negotiate installation arrangements with the customer and are responsible for ensuring that the materials and equipment are in place at right time. They then carry out the work and are credited with the allocated hours no matter how long the job actually took-as long as it is completed to the customer’s satisfaction.
Since it was introduced, productivity has risen by 14 per sent, on-time performance has risen to over 90 per cent and sickness has dropped by two-thirds. Engineers have a guaranteed monthly salary and are much more in control of their working lives. They and the organization both have a united interest in the work being carried out on time and within budget and in the customer being satisfied. ( Stredwick.J and Ellis.S 1998, p 30-32 )
On other way, annualized hours system could availability to motivate employees working comportment, improve the working quality. Because this system change traditional working-time system. Employees could control their working-life balance.
What is annualized hours?
This is a system that brings flexibility into working hours. Instead of a set number of hours per day or per week, the employee is contracted to work a certain number of hours per year. Thus the employer may vary the hours worked in a given week or month within the context of the annual total, or the employee may choose his or her working pattern.
Annualized hours systems have long been recognized as an important way to increase flexible working and tackle the "overtime culture" in British industry. Yet it is in the service sector more than manufacturing where annualized hours have been successfully implemented, reflecting differences in patterns of demand, workforce characteristics and trade union approaches. The National Health Service (NHS), which in September 1998 introduced its first-ever national human resource strategy explicitly hailing annualized hours as the key to flexible working, is a leading case. ( 1998)
Motivation is most important part in annualized hours system, which is Siemens GEC use.
- Motivation
Motivation is the cognitive decision-making process though which goal-directed behaviour is initiated, energized and directed and maintained. (Huczynski. A & Buchanan. D, 2001, p.240)
We know individuals are not the same; their needs and how they can be satisfied will be very different. So, it is important for a business to motivate its employees.
Figure1. Maslow’s hierarchy of needs
Douglas McGregor’s Theory X & Theory Y
In 1960, Douglas McGregor published The Human Side of Enterprise. He coined the term Theory X & Theory Y to describe different reasons why people work.
Herzberg’s two-factor theory
In 1966, Fredrick Herzberg found but what motivated people at work. (This theory that only the higher levels of Maslow’s hierarchy motivate workers.)
McClelland’s Theory (1971)
David McClelland thought that what motivate people is that they learn in early childhood. There are three basic needs in McClelland’s Theory.
- Need for achievement.
- Need for affiliation. Managers can achieve the goals by working with others, rather than their own efforts. They have to develop and maintain relationship with their colleagues.
- Need for power.
Goal-setting theory
This theory is both a process theory of motivation and motivational technique.
Performance is higher if:
- Goals are challenging.
- Goals are specific.
- There is participation in goal setting.
- There is knowledge of results.
In Siemens GEC, annualized hours system gives staff a new motivation, they are working at Siemens, they choose a better annualized hours contract, which means is they can control their working-time balance between working and living. And also they are feeling more freedom that is people always needs. They feel could pay more time on family or their own interesting things. But they get the wage is not change. I think, the other motivation is number of working-hours, because they have done 1 hours work, they total working-hours should be change to 1999 hours from 2000 hours, although this is not a very good reason, however, this could stimulate them work hard.
A having identified that there are significant differences between employee participation and employee involvement, where empowerment sits within these approaches is perhaps more complex and hinges on interpretations of 'power' and how 'empowered' workers actually are where such schemes are implemented. Perhaps the most widely shared view amongst employee relations writers is that there is very little true 'power' in the hands of 'empowered' workers as currently practised. It appears that whilst it ought to be possible to really 'empower' employees in the workplace through pluralist, democratic processes i.e. an employee participation paradigm with collectivized relations that share decision making and power; 'empowerment' as currently applied within many organizations inside and outside of the hospitality and tourism industries, appears largely to be of the unitarist / HRM variety which seeks to gain commitment through an employee involvement paradigm. (, 2002)
- Annualized hours systems give worker Flexible working hours.
Working seven days a week, 24 hours a day, it always has a problem for both workers and management. Night shifts are unpopular, overtime is expensive and a three shift system disruptive to family life. So, annualized hours system solves this problem so much.
As part of an annualized hours system, staff have agreed to work a shift pattern of 12-hour day and night shifts. Instead of overtime, annual hours include a quota of "banked" hours which employees can be asked to work at any time.
The annualized hours system, which gives long breaks between shift changes, also includes three 18-day breaks during the year and guaranteed earnings. Salaries are among the best in the region.
"We have good ground to believe this will be treated as a model agreement, The average member will say that what they have got now is a lifestyle. They have three 18-day breaks and a salary to go with it that means they can do something with the time off. There is less stress and there is a stability of income that they never had before."(. 2000)
- Safety and healthy in annualized hours system
Since the passage of the Occupational Safety and Health Act of 1970, safety and health conditions in workplaces have improved. Workers' live have been saved and injury and illness rates have dropped in many industry sectors of the economy. However, many hazards continue to kill and injure workers. (Beardwell I., and Holden L. 1997)
The most of jobs injure health. Radialization, poisonous gas, working with electricity and so on. The employers must understanding their workplace, and also think about their employee’s safety and healthy. So, employee is doing work by an annualized hours contract, they have right to require improve working condition and also discussion to employer for get extra salary of dangerous work.
- The management of health and safety at work regulation.
These regulations take the requirement set out in HASAWA (health and safety at work act) stage further, making unqualified requirements on employers in areas such as carrying out risk assessments, providing training and establishing emergency procedures. Similarly, unconditional requirements have been made on employees to use equipment in the way they have been trained to do and to report any dangerous occurrence or gap that they see in the employer’s systems. (Stredwick. J, 1992, p348)
-
Annualized hours work with part-time.
One worker can have 2 or more than 2 part-time jobs by annualized hours contract. Usually defined as less than 30 hours per week. But, It is illegal to work more than 48 hours and both your employers must ensure you do not exceed this; the only exception is if the second job is unpaid or voluntary.
Part 3 Conclusions
Annualized hours system is using in today many industries, it have been changed people’s idea to working time. Employee and employer both agreed weekly hours are replaced by an annual hours arrangement and a forward working pattern of rostered and reserve hours. By agreement, reserve hours may be triggered at short notice. Pay is usually set at a regular, guaranteed monthly sum.
Benefits:
- Increases flexibility to handle seasonal fluctuations in demand.
- Allows parents and carers to arrange their working hours around term time / school holidays.
- Allows parents and carers to take advantage of off-peak holidays
- Can motivate employees and improve working quality.
- Keep employees working-life balance
- Cut down the costs for employers (for example: holiday pay.)
Disadvantage:
- Administratively complex to design and operate.
- Hardly to manage employees.
- Some employees cannot control their working-time very well, so they should need human resource department support.
- Should have some problems about empowerment.
References:
BEARDWELL, I. And HOLDEN, L. (1997) Human Resource Management. London,London Pitman Ltd, pp 207
Stredwick. J, (2000), AN INTRODUCTION TO HUMAN RESOURCE MANAGEMENT, Bath, Bath Press Ltd, pp176
Huczynski. A & Buchanan .D, (2001) Organizational Behavior, Edinburgh, Pearson Education Limited, pp 240
Stredwick,.J and Ellis, S (1998), Flexible Working Practices, Techniques and Innovations, Wiltshire, The Cromwell Press Ltd, pp30-32
Anup, S. WORK PLACE [online], (2000), available from:
accessed 27/12/2003
ANNUALIZED HOURS AGREEMENT [online], (2002), available from:
accessed 27/12/2003
ANNUALIZED HOURS [online], (2000), available from: accessed 27/12/2003
Employee empowerment participation and involvement [online], (2002), available from:
accessed: 27/12/2003
Bibliography
Beardwell I., and Holden L., 1997, Human Resource Management, 2nd Ed., London, Pitman Public
BEARDWELL, I. And HOLDEN, L. (1997) Human Resource Management. London,London Pitman Ltd,
Huczynski. A & Buchanan.D, 2001, Organizational Behavior, Edinburgh, Pearson Education Limited
Stredwick. J, (2000), AN INTRODUCTION TO HUMAN RESOURCE MANAGEMENT, Bath, Bath Press Ltd
Sims. D, Fineman S. and Gabriel. Y, 1993, Organizing and Organizations, London, Sage Press Ltd
Stredwick J., 2000, An Introduction to Human Resource Management, Butterwoth Heinemann Ltd
Suczy. A & Buchanan. D, 2001, Organizational Behaviors, Fourth Education, Essex ,Pearson Education Limited
Stredwick,.J and Ellis, S (1998), Flexible Working Practices, Techniques and Innovations, Wiltshire, The Cromwell Press Ltd, pp30-32
Anup, S. WORK PLACE [online], (2000), available from:
accessed
27/12/2003ANNUALIZED HOURS AGREEMENT [online], (2002), available from: accessed 27/12/2003
ANNUALIZED HOURS [online], (2000), available from: accessed 27/12/2003
Employee empowerment participation and involvement [online], (2002), available from:
accessed: 27/12/2003
HUMAN RESOURCE MANAGEMENT
ANNUALIZED HOUR
TO: PAUL
FROM: LEI
DATE: 06/01/2004`
