OB case Nd-0\ 28 Pert One Enver and Orinigaionl Contest al EF ann EERE Real Case: The Big Squeeze on Workers On his recent family vacation in Arizona, Peter Spina Itshardto Say just how miuch more, given the state of spent much of his time camped outunder a palnrtree statistical ‘record-keeping. The Bureau of Labor while his Kids splashed. around.‘in-the- Scottsdale: Statistics says\overall weekly hours woiked have Princess Hotel’s luxurious pool. Spina wasn’t lounging. dropped—in part duc to manufacturers slashing hours. He was working—hammering out deals on-his cell But economists say its impossible to draw an accurate phone in @ mad dash to break new accounts at Vulcan picture from the"BLS data. They note that the data is Ventures Ine., where he's publisher of ‘The Sporting flawed because i often builds in an assumption that al ‘News. Spina says the downturn has forced him to work’ levels of eniployees'worke3S hours a-week—-managers ‘even Jonger hours than he did during the boom—about nd hourly staff alike To which many economistszep 15% more: Ditto:for his sales force. Whereas‘once-be Come’ on. Morgan Stanley Dean Witter & Co, chi had lots oftbonus money tothrow around he now tries to: economist Stephen Roach, for example, believes the ‘make up for the tough slog by bringing popsicles to the. - BLS numbers understate the nurnber of hours worked, office on hot days. The added hustling is one reason his therefore overstating productivity. team has racked up revenue gains of 46% this year in an. Still, whatever the numbers say, there's no doubt that abysmal ad market: “They're working longer and right now employees feel they have little choice but to harder," says Spina, ept the grueling loads, Despite some evidence of a ‘Mich has been made of the feéent upsurge in pro- rebound, te job market in many quarters i still weak. ductivity. Although recessions usually bring slides in Job Cuts are ino longer a last resort in hard times but an this efcieney measure, technology has made the econ- ongoing tool for miching supply with demand. ofiy bre productive thai ver before But tel that t is i8 one reason Some economists predict a replay, ‘white-collar workers, and you're likely € heir tha the "sit Teast initially 6? the early-1990s jobless recovery. ‘suing have come on their backs: Rather than bring relief," Ratheb than’'Scoop up tore’ permanent hires atthe first layoff survivors say, the downturn has only socked ito" whiff of demandeconomists say CEOs are likely to be them motei!‘They complain “about "maniiging the teers, especially witheconomic data so mixed. Maty orphaned workloads of downsized colleagues, scouring have bad*memories of boom-time hiring binges in new avenues for business; and fighting for high-profile which they tookon mediocre people just to fill slots and Posts so if the ax falls, it won't hit them. “What we're then wound up having to pay weeks of costly severance. discovering. is that. in this carly. stage-of recovery; not Instead, economists say CEOs are likely to focus fiston| only are-companies: making, people work harder, but, extracting even. more:from:their existing ranks, until believe:me,;some, people, want t9,";says, J.P. Morgan .-demand reaches a breaking point. The big question now, Chase, &. Co. senior, economist James. E. Glassman.,..asks.Mary, Hammershock, vice-president for himin “They're trying to protect their job security” ve fgsourees for Silicon Valley's Blue Mattini Sofware, is ‘That gripping desperation is.easy for companies to, “how much longer.can you get people to do this when use in thein favors-Mike, Hewitt, director of client ser. vices-at, consulting firm. Aquent, says he and his, staff have been bending aver backwards to meet with clients thewupside has gone away?” Already, companies are looking first to bring in con- ‘tact workers that they can quickly tap and zap without who-don't have any: work, for them so,the company can paying any benefits or severance. In fact, the temps have get a jump on future business and be ready to toll when, been the fastest growing sector of employment. And the rebound kicks in, they aren't accounted for as regular employees, This ‘But it just fet that's tRotivatng today's Work” helps ‘Companies that’ use lot of them, ike Cisco place. A number of other structiril'thahges are also Systems Inc. to drive up revenue per employee. hing bosses'to extract maxitnit prodctivity from'”'’ The growihig use of the jist-in-time workforce is not theirs: Froi the increased use of temps, to the thé only ans by -Whicl companies are priming the ‘reclassification of hourly workers into salatied émploy-' ‘prodkictivity. pump: ‘Workers complain that many _esineligible for overtime pay;tothe tse invariable pay’ ‘ employers are taking advantage of outdated labor laws ch ‘of workers! paychecks: at risk, companies. by'misclassifying them as salaricd-exempt so they can nt able to-get more/out of less. vote ov skirt overtime pay.Already, Wal-Mart Stores, Taco Bell,compensation at risk. Starbucks," and ‘U-Haul, slapped with class’ actions, lore ay Ping sn gene tee “fanen fon ste Ce 8 Tmasked _ Shortages lurking within the labor force, Chapter 1 Ineroducion to Organ Behave: An Evidence-Based Approach 29. among others, have ‘been In the: case of General $100 million avard Insurance, Thats why he has launched a ntebe Tak See NAge-and-hour audi. assignments, a different boss i right nov, For companies that ably already it late. : 1.Do you agree or disagree. wit the fee downsizing survivors tht intend “comes on their backs”? What does this wean and how does this have implications for managing these employees? ‘What impact ean empléying temporary, just-n-tim ‘workers'have for’ employers? For existing filltime employees? For the temporary workers? it the basis ofthis case, do you believe Under this system, ifs customer's ‘employee's paycheck. “Ip will be even the challenges facing the management of human worse than it was in 2000,” predicts Texas Instruments "esguces willbe elses ot more dificil inthe none _ Tie Chairman; CEO, and President Tom Engibov, future? Why? :