Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University
Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University
within the firm. The alternative – increasing the workability of all workers and integrating older workers so as to make them equally productive and innovative – is seldom embraced. A general commitment of German firms to the idea of prolongation of working life is missing. However, there are a few examples of innovative personnel policy and a dedicated age management strategy spanning several policy fields. But even there, the continuation of early exit options for incapacitated older workers, or in order to make room for the young, is a central element of the strategy. As reasons for embracing an age management strategy, I singled out the impact of firm culture, the link to a business case, the concerted action of social partners at branch level, or the perception of the need to adjust to demographic changes. One and the same firm may apply a different logic regarding the utilisation of older workers depending on the given policy field and problem constellation. I.e., older workers may be treated as a problem or a resource depending on the context and on the external pressure the firm is currently in. This confirms the statements of the firm-structural approach (Kohli et al. 1983). The limited adaptation of firms to ´soft´ changes in labour market policy can be explained with limited effect on firm policy (e.g., if older applicants are not taken into account as valuable workers, hiring subsidies will only to a small effect compensate for their assumed negative traits) and the missing sanctions in case of non-adaptation. In contrast, pension reforms have engendered more effects upon company agency, as current early exit pathways have become too costly. However, even there, ´negative reactions´ and ´no reactions´ prevail (continuation of current pathways, opening up of new ones, ´muddling through´). The actual age of the workforce (relative to the Germany-wide average age of the workforce and percentage of ´50pluses´ in German firms) has no impact upon company policy, quite in contrast to the impact of the firm´s perception of the age of its workforce. Possibly, when deciding about the integration, externalisation or keeping out (by nonrecruitment) older workers, firms compare its workforce with the long outdated ´age pyramide´ (Koller/Gruber 2001: 503) – while in practical terms, their workforce does not substantially diverge from the Germany-wide labour force composed of 27.6 per cent of 20- 34-year-olds, 42.4 per cent of 35-49-year-olds, and 25 per cent of 50-64-year-olds (Eurostat data, retrieved on Dec. 18 th , 2008). 159
I made out some forms of irrational behaviour of firms in view of the ageing workforce. By releasing older workers via the early retirement scheme before the raising of retirement ages (at the end of 2003), some firm experts admitted that they lost valuable potential and firm-specific knowledge. That shows that firms respond not only to structural factors (changes on the market and labour market) but that also institutions (e.g. the institution of ATZ) shape there behaviour even if it does not serve utility maximisation (Meyer/Rowan 1977: 350ff). The change in older workers´ capabilities (Lehr 2000; Naegele 1992) did not play a role in this case as both the management and the works council members saw the released older workers as know-how carriers. Another interesting result from my German firm case studies is the continuing divide between blue-collar and white-collar workers with regard to the opportunities to prolong working life. On the one hand, that is due to the differing accentuation in the interviews of the problems and chances of blue-collar workers by the works council, and of white-collar workers by the management. But on the other hand, representative data proves different burdens of those two occupational groups on average, resulting in earlier retirement and a higher take-up rate of disability pensions by blue-collar workers (Henke 2000: 205; Ebert 2007: 139). On the basis of evidence from previous sub-sections, the 14 German firms in the sample can be arranged into types along the two dimensions ´muddling through´ vs. ´age management strategy´ and ´externalisation vs. internalisation´ (Table 19). For information on the allocation criteria to each of these categories, see Annex C. Table 19: German firm typology degree of integration of older workers stage of development of HRM strategy age management strategy internalisation medium-internalising position Firm DE-13, Firm DE-10 Firm DE-7 rather strategic orientation Firm DE-12* Firm DE-3 rather reactive orientation ´muddling through´ Firm DE-1, Firm DE-2, Firm DE-4 medium-externalising position Firm DE-14 Firm DE-6, Firm DE-9, Firm DE-11 externalisation * = based on one interview only Firm DE-5 and Firm DE-8 were not included in the analysis due to scarce material. The cells in grey denote ´good practice´ companies. Pearson Correlation between the variables ´degree of integration of older workers´ and ´stage of development of HRM strategy´– 0,130, p = 0,687. 160
- Page 119 and 120: learning to the needs of older pers
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within the firm. The alternative – increasing the workability of all workers and integrating<br />
older workers so as to make them equally productive and innovative – is seldom embraced.<br />
A general commitment of German firms to the idea of prolongation of working life is<br />
missing.<br />
However, there are a few examples of innovative personnel policy and a dedicated age<br />
management strategy spanning several policy fields. But even there, the continuation of<br />
early exit options for incapacitated older workers, or in order to make room for the young,<br />
is a central element of the strategy. As reasons for embracing an age management strategy,<br />
I singled out the impact of firm culture, the link to a business case, the concerted action of<br />
social partners at branch level, or the perception of the need to adjust to demographic<br />
changes.<br />
One and the same firm may apply a different logic regarding the utilisation of older<br />
workers depending on the given policy field and problem constellation. I.e., older workers<br />
may be treated as a problem or a resource depending on the context and on the external<br />
pressure the firm is currently in. This confirms the statements of the firm-structural<br />
approach (Kohli et al. 1983).<br />
The limited adaptation of firms to ´soft´ changes in labour market policy can be<br />
explained with limited effect on firm policy (e.g., if older applicants are not taken into<br />
account as valuable workers, hiring subsidies will only to a small effect compensate for<br />
their assumed negative traits) and the missing sanctions in case of non-adaptation. In<br />
contrast, pension reforms have engendered more effects upon company agency, as current<br />
early exit pathways have become too costly. However, even there, ´negative reactions´ and<br />
´no reactions´ prevail (continuation of current pathways, opening up of new ones,<br />
´muddling through´).<br />
The actual age of the workforce (relative to the Germany-wide average age of the<br />
workforce and percentage of ´50pluses´ in German firms) has no impact upon company<br />
policy, quite in contrast to the impact of the firm´s perception of the age of its workforce.<br />
Possibly, when deciding about the integration, externalisation or keeping out (by nonrecruitment)<br />
older workers, firms compare its workforce with the long outdated ´age<br />
pyramide´ (Koller/Gruber 2001: 503) – while in practical terms, their workforce does not<br />
substantially diverge from the Germany-wide labour force composed of 27.6 per cent of 20-<br />
34-year-olds, 42.4 per cent of 35-49-year-olds, and 25 per cent of 50-64-year-olds (Eurostat<br />
data, retrieved on Dec. 18 th , 2008).<br />
159