Legal Environments, The Employment Relationship, and Management Regimes:

Evidence Over Thirty Years

American Sociological AssociationAugust 2004

Michael BourgeoisJohn R. Sutton

University of California, Santa Barbara

The neoinstitutionalist model of changes in the employment relationship:

• Diffusion of employment relations policies driven by– State-generated EEO/AA mandates– Uncertainty about criteria of compliance– Interpretive work of legal and HR

professionals• Limitations of the model

– Focus on discrete innovations rather than management regimes

– The foundings problem

Pushing the model forward:

• Research questions:– How are practices distributed across different types of

organizations?• Public vs. private• Size

– Do employment relations practices cluster into distinct management regimes?

– Do these regimes change over time?• Research strategy: relational analysis of forms and

practice space

The sample:

• 279 employers in CA, VA, and NJ

• Private firms: banking, chemicals, electrical mfg., machinery, retail trade, transportation, hospitals, nonprofits

• Public agencies: city, county, state, federal

• Retrospective data from 1955 to 1985

Hypothetical regime attributes:

• Taylorism/Fordism: time & motion studies, piece rates, output measures, time clocks

• Human relations: Personnel office, HR program, suggestion box/awards, recreation programs, counseling programs, regular social activities,attitude surveys

• Union/industrial relations: union contract, labor relations office, legal office, union grievance procedure

• Legalization: AA office; labor attorney on retainer; policies re racial/ethnic minorities, women, physically or mentally handicapped, homosexuals, employees over 40, pregnant women, nonsmokers; job descriptions; employment tests; promotion tests; salary classifications; performance evaluations; job ladders; disciplinary warnings/hearings; records kept of disciplinary hearings; nonunion grievance procedures (exempt & nonexempt); maternity leave

• Exclusionary: subcontracting services, any EAW clause, work at home, temporary employment

• Unclassified: dress/hair codes, employee gifts

Step 1: Blockmodels for organizational forms

1955Private large

Private small

Public large

Public small

Private large 0.159 0.127 0.129 0.101Private small 0.100 0.105 0.063 0.050Public large 0.176 0.123 0.217 0.188Public small 0.107 0.064 0.156 0.112

0.1181965

Private large 0.240 0.237 0.240 0.222Private small 0.161 0.204 0.122 0.125Public large 0.279 0.216 0.374 0.337Public small 0.234 0.193 0.317 0.276

0.215

1975Private large 0.435 0.449 0.410 0.462Private small 0.230 0.265 0.193 0.232Public large 0.434 0.406 0.498 0.527Public small 0.367 0.363 0.412 0.444

0.350

1985Private large 0.572 0.612 0.532 0.574Private small 0.376 0.449 0.327 0.381Public large 0.599 0.586 0.637 0.652Public small 0.504 0.533 0.522 0.559

0.508

• Average density (isomorphism) increased across all forms over time

• Average density increased within forms over time

• Large organizations (public and private) internally isomorphic from 1955 on; small publics from 1965 on.

• Small private organizations never developed an internally coherent set of management practices. Nor do they share higher than average numbers of management practices with other orgs across all time periods.

• Large organizations (public and private) dominated the practice space 1955-85.

Step 2: Mapping the practice space

.52 Health & safety officeBenefits office

.62 Labor rel. office

.68 Legal office

Union contract .28Union grievance procedure

Labor attorney .64

.79

.79

.61Promotion testing

Job ladders.73

Employment testing

HR programs

Recreation pgms..73

Counseling pgms..66

.71 Time clocksEmployee gifts

Output measures.68 Time & motion

Policy re nonsmokers.72 Policy re homosexuals

Home work.76 Piece rates

.63

.68

.72

Social activities

Maternity leave

Subcontracting

Temporary work

Suggestion awards

.69 Dress & hair codes

Suggestion box .62

.59

Disc. warnings.24

.26

Job descriptionsSalary classifications

.32 Personnel evals.

.46 Personnel office.49 Nonunion grievance procedures

Disc. records.41 Disciplinary hearings

1

4

3

7

5

10

6

9

8

.79

Centralized promotion & discharge

.34.78

.10 Racial minorities & women

.25 Handicapped

.32 Age

.44 Mentally ill

.52 Pregnancy

Centralized hiring

.52 Health & safety officeBenefits office

.62 Labor rel. office

.68 Legal office

Union contract .28Union grievance procedure

Labor attorney .64

.79.52 Health & safety officeBenefits office

.62 Labor rel. office

.68 Legal office

Union contract .28Union grievance procedure

Labor attorney .64

.79

.79

.61Promotion testing

Job ladders.73

Employment testing.61Promotion testing

Job ladders.73

.61Promotion testing

Job ladders.73

Employment testing

HR programs

Recreation pgms..73

Counseling pgms..66 HR programs

Recreation pgms..73

Counseling pgms.

HR programs

Recreation pgms..73

Counseling pgms..66

.71 Time clocksEmployee gifts

.71 Time clocksEmployee gifts

Output measures.68 Time & motion

Output measuresOutput measures.68 Time & motion

Policy re nonsmokers.72 Policy re homosexuals

Policy re nonsmokers.72 Policy re homosexuals

Home work.76 Piece rates

Home work.76 Piece rates

.63

.68

.72

Social activities

Maternity leave

Subcontracting

Temporary work

.63

.68

.72

Social activities

Maternity leave

Subcontracting

.63

.68

.72

Social activities

Maternity leave

Subcontracting

Temporary work

Suggestion awards

.69 Dress & hair codes

Suggestion box .62

.59

Disc. warnings.24

.26

Job descriptionsSalary classifications

.32 Personnel evals.

.46 Personnel office.49 Nonunion grievance procedures

Disc. records.41 Disciplinary hearings

Suggestion awards

.69 Dress & hair codes

Suggestion box .62

.59

Disc. warnings.24

.26

Job descriptionsSalary classifications

.32 Personnel evals.

.46 Personnel office.49 Nonunion grievance procedures

Disc. records.41 Disciplinary hearings

1

4

3

7

5

10

6

9

8

.79

Centralized promotion & discharge

.34.78

.10 Racial minorities & women

.25 Handicapped

.32 Age

.44 Mentally ill

.52 Pregnancy

Centralized hiring

Centralized promotion & discharge

.34.78

.10 Racial minorities & women

.25 Handicapped

.32 Age

.44 Mentally ill

.52 Pregnancy

Centralized hiring 2

Step 3: Correspondence analysis results

-0.5

-0.25

0

0.25

0.5

0.75

1

Dim

1

PR_LG55

PR_SM55

PU_LG55PU_SM55

PR_LG65

PR_SM65

PU_LG65PU_SM65

PR_LG75

PR_SM75

PU_LG75PU_SM75

PR_LG85

PR_SM85

PU_LG85PU_SM85

Rights policiesRights practicesIndustrial Rel

Protolegal

Cluster 5

Human Rel

Taylorism

Paternalism

Gays & nonsmokers

Sweatshops

-0.6 -0.4 -0.2 0 .2 .4 .6Dim 2

-0.5

-0.25

0

0.25

0.5

0.75

1

Publ

ic

PR_LG55

PR_SM55

PU_LG55PU_SM55

PR_LG65

PR_SM65

PU_LG65PU_SM65

PR_LG75

PR_SM75

PU_LG75PU_SM75

PR_LG85

PR_SM85

PU_LG85PU_SM85

Rights policiesRights practicesIndustrial Rel

Protolegal

Cluster 5

Human Rel

Taylorism

Paternalism

Gays & nonsmokers

Sweatshops

-0.6 -0.4 -0.2 0 .2 .4 .6Dim 2

Priv

ate

• CA maps associations between variables.

• Both org forms and management regimes are arrayed into one map.

• Management Clusters (columns) are in red; organizational forms (rows) are in black.

• Proximity between a row and column implies association.

• Dimension 1 differentiates public and private organizations.

• Dimension 2 maps time from left to right.

• Arrows trace isomorphism across time toward legal core.

Conclusions

• Organizations are dual structures; the duality of forms and practices can be modeled across populations and over time

• Dynamic analysis of management regimes can reveal trends toward (or away from) isomorphism

• These data show trends toward legalization, but legalization is a multifaceted phenomenon

• Future work: parametric analyses, state-level legal environments

Cluster resultsPractices Associated with Cluster

Cluster 1: Rights policies Policies regarding racial minorities, women, handicapped, age, mentally handicapped, pregnancy; centralized hiring, centralized promotion and discharge

Cluster 2: Rights practices Disciplinary warnings, disciplinary hearings, records kept of disciplinary hearings, job descriptions, salary classifications, personnel evaluations, personnel office, nonunion grievance procedures, suggestion box, suggestion awards, dress and hair codes

Cluster 3: Industrial relations

Union contract, union grievance procedure, labor attorney on retainer; health & safety, benefits, labor relations, Affirmative Action, and legal offices

Cluster 4: Protolegal Employment tests, promotion tests, job laddersCluster 5 Social activities, maternity leave, temporary work,

subcontracting for servicesCluster 6: Human

relationsHR programs, counseling programs, recreation programs

Cluster 7: Taylor/ Fordism Time & motion studies; output measuresCluster 8: Paternalism Time clocks, employee giftsCluster 9 Policies regarding homosexuals and nonsmokersCluster 10: Sweatshops Piece rates, home workUnclustered Practices • Attitude surveys

• EAW clauses• Career development office

Cross Classification of Organizational Form and Management Practice Clusters (stacked by year)

11091029555172251131PU_SM 85

214917598681167380243PU_LG 85

116107213519458108549256PR_SM 85

121882329322969224716415PR_LG 85

0164530332915175PU_SM 75

23514205673123307141PU_LG 75

817911121174273277129PR_SM 75

4465193413546155436210PR_LG 75

003111324158919PU_SM 65

22551128515119250PU_LG 65

20655669195811753PR_SM 65

32279946237515539PR_LG 65

001014127434PU_SM 55

2232618322911230PU_LG 55

003132246265025PR_SM 55

3117431817487611PR_LG 55

Cluster 10

Cluster 9

Cluster 8

Cluster 7

Cluster 6

Cluster 5

Cluster 4

Cluster 3

Cluster 2

Cluster1

ORG FORM

11091029555172251131PU_SM 85

214917598681167380243PU_LG 85

116107213519458108549256PR_SM 85

121882329322969224716415PR_LG 85

0164530332915175PU_SM 75

23514205673123307141PU_LG 75

817911121174273277129PR_SM 75

4465193413546155436210PR_LG 75

003111324158919PU_SM 65

22551128515119250PU_LG 65

20655669195811753PR_SM 65

32279946237515539PR_LG 65

001014127434PU_SM 55

2232618322911230PU_LG 55

003132246265025PR_SM 55

3117431817487611PR_LG 55

Cluster 10

Cluster 9

Cluster 8

Cluster 7

Cluster 6

Cluster 5

Cluster 4

Cluster 3

Cluster 2

Cluster1

ORG FORM

Mean cluster frequencies across organizations, by year

0

10

20

30

40

50

60

70

1956

1958

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

Year

Wei

ghte

d M

ean

Clu

ster

Fre

quen

cies Rights policies

Rights practicesIRProtolegal

Mean cluster frequencies across organizations, by year

0

10

20

30

40

50

60

70

1956

1958

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

Year

Wei

ghte

d M

ean

Clu

ster

Fre

quen

cies Cluster 5

Human relationsTaylor/FordismPaternalismGays & nonsmokersSweatshops

Step 1: Blockmodels for organizational forms

• Mt is a (279 organizations × 44 practices) matrix for t = (1955, 1965, 1975, 1985):

• Co-occurrence matrix Ct :

• Overlap matrix Ot : divide all cells of Ct by row sums of Mt to yield percentage overlaps

1...101...............0...0001...0110...010

...

...

32

1

44321

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i

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i

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..................

...

...

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...

321

3333231

2232221

1131211

32

1

321

1955

1975

1965

1985

Digraphs of relations among organizational forms