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BIBB/BAuA 2018

Healthy through restructuring:

Leadership behaviour is important

baua: Facts

30

Restructuring – change processes with many faces The term restructuring encompasses change processes that affect all levels of the organization, including such di- verse phenomena as

• relocations,

• migration abroad,

• outsourcing,

• bankruptcies,

• mergers,

• internal reorganisation (e. g. introduction of new pro- duction/process technologies or the increased use of freelancers or temporary agency workers), and

• business expansions.

In the representative BIBB/BAuA Employment Survey 2018, 17,852 employees were asked, among other things, about restructuring measures in their company. The survey inclu- ded the following question: „In the last two years or since you started your current job, have there been significant restructuring or reorganisation affecting your immediate working environment?” This fact sheet takes a closer look at the topic of restructuring, its links to occupational health and safety, and the role of managers in change processes.

Restructuring is particularly common in the manufactu- ring sector

Overall, 40 % of employees report having experienced si- gnificant restructuring or reorganisation in their immedi- ate work environment in the last two years. Restructuring and reorganisation is most frequent in the manufacturing sector (47 %), closely followed by the „public and private services“ sector (43 %; see Figure 1). Significant restructu- ring or reorganisation of employees occurs least often in the construction sector (21 %). Furthermore, employees at larger companies are significantly more likely to report re- structuring than those at smaller companies.

Restructuring and ongoing changes are an everyday reality in many companies, for example when parts of the company are relocated or outsourced. Employees also notice such changes in their concrete work situation: Restructuring can make their work more intensive, especially when the same or even more and harder work has to be done with fewer staff. This may have negative effects on employees’ health.

Managers play an important role in restructuring processes and may mitigate negative health effects by helping and supporting employees.

Agriculture, forestry, fishing Manufacturing (excluding

construction) Contruction industry Retail, transportation, accomo- dation/food service activities and information Financing, rental, business

service providers Public and private service

Up to 9 employees 10 – 49 employees 50 – 249 employees 250 – 499 employees 500 – 999 employees 1.000 and more employees

0 % 10 % 20 % 30 % 40 % 50 % 60 % 31

47 21

39 42

43

24 37

42 49

50 57

SectorCompany size

Fig. 1: Frequency of restructuring in the last two years by company size and economic sector

Constant changes mean more stress and health prob- lems

Employees who experienced restructuring in the last two years more often report an increased workload than res- pondents without this experience. This applies in particu- lar to mental stress, such as pressure to meet deadlines or perform, confrontation with new tasks, disturbances and interruptions, multitasking, or working at the limits of one‘s capacity.1 Furthermore, employees who experienced major changes report more frequent health complaints and lower job satisfaction (see Fig. 2). They are, for ex- ample, more likely to report general fatigue, tiredness, or exhaustion than employees without restructuring experi- ences.

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baua: Facts Healthy through restructuring: Leadership behaviour is important

2

Impressum | Publisher: Federal Institute for Occupational Safety and Health (BAuA), Friedrich-Henkel-Weg 1–25, D-44149 Dortmund, Phone: +49 231 9071-2071, E-Mail: info-zentrum@baua.bund.de, Internet: www.baua.de | Authors: Dr. L. Hünefeld, Dr. C. Steidelmüller, Editor: Dr. G. Meilicke, Design: S. Graul (BAuA) |

doi:10.21934/baua:facts20201001 | November 2020

Conclusion

The data from the BIBB/BAuA Employment Survey 2018 show that restructuring processes in enterprises are also accompanied by changes in the working situation of em- ployees, such as increased work intensity. Employees who experienced restructuring are also more likely to report health complaints associated with high psychological de- mands than those in the comparison group. Leaders may serve as an important resource in change processes if they support employees in these processes.

Given the central role of leaders in change processes, they should be trained to live up to their responsibility for health-oriented process design in company restructuring.

The Federal Institute for Occupational Safety and Health (BAuA) has developed a two-day training course.2 In that course, leaders learn to identify problems and potential conflicts that are relevant to employees’ well-being and health in change processes. Additionally, the training pro- vides knowledge on how to communicate appropriately in restructuring processes and how to create the necessary transparency for employees. It also explains how to avoid negative emotions, which can quickly arise among both lea- ders and employees during change processes.

English translation. German original version available:

doi:10.21934/baua:fakten20191129

14 17 18 26

24 35

44 56

26 36

31 41 Less good/bad health

status Dejectedness Nervousness or irritability General fatigue, tiredness or

exhaustion Sleep discorders at night Headache

0 % 10 % 20 % 30 % 40 % 50 % 60 % Restructuring experience: no Restructuring experience: yes Fig. 2: Employees’ health and satisfaction after restructuring ex- periences in the last two years

Leaders as a decisive resource in change processes Leaders play a central role in restructuring processes: they help shape the working conditions of employees. This func- tion is particularly critical in times of change. In addition, leaders are responsible for mediating between manage- ment and employees, preparing employees for upcoming changes, and accompanying them.2

Using the example of psychosomatic complaints and job satisfaction, Figure 3 shows that leaders are an important success factor in change processes. Among employees with restructuring experience, those who often receive help or support, as well as praise and recognition, from their di- rect supervisors less often report multiple psychosomatic complaints and job dissatisfaction. More indepth analyses confirm this finding.

6

40 54

41 61

4 15 19 Three or more psychosomatic complaints Praise and appreciation from the

direct supervisor Help/Support from the direct

supervisor

Praise and appreciation from the direct supervisor Help/Support from the direct

supervisor

0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % sometimes, rarely, never frequently Job dissatisfaction

Fig. 3: Health and satisfaction among employees with restructu- ring experiences by degree of supervisor support

For further information

1 BAuA, 2018. Restructuring companies – „risks and adverse effects“. BIBB/BAuA-Factsheet 08.

Dortmund: BAuA. Available at:

www.baua.de/dok/8708466

2 B. Thomson, J. Rank, S. Gerstenberg, N. Ulland, 2018. Qualifizierungstools für Führungskräfte und Betriebsräte bei betrieblichen Restrukturie- rungen. Dortmund: BAuA.

DOI: 10.21934/baua:report20180927

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