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WHY
EDR ?
"Insurers
press businesses to ensure they are litigation-proof employers...
AirTouch Communications Inc., San Francisco, relies on in-house
labor-law experts and encourages staff to air troubles to management.î
Wall Street Journal, Tuesday 11/18/97, section A1.
What
ís wrong with this picture? AirTouch will not engender
employee loyalty, nor will this strategy help to motivate employees.
If an employee has a dispute with a manager of the company he
or she will be looking for an independent tribunal - i.e. a lawsuit.
A manager will not be viewed as sympathetic because the manager
works for the company. EDR helps to alleviate the chances
of a lawsuit because it is binding arbitration, it is independent,
and the remedy is quick, so hard feelings don't fester.
The real source of sustainable
competitive advantage is the most distinctively human elements
of business - culture, leadership, character. Geoffrey Colvin,
Fortune Magazine, 11/29/97, page 299. You can no longer manage
in the old style. You must optimize people. How do you do that?
To begin with... "without very high trust, you will never get
maximization of brain potential. So trust is key".
AP news network released for publication
an article by Maggie Jackson (see Ventura County Star, Business,
12/30/97) reflecting on the fact that employers rediscovered the
importance of their employees in 1997 amid a severe labor crunch
and the growing realization that people are a company's best asset...
Indeed, Mr. Colvin is hitting the very
heart of EDR. What better way to engender trust among your employees
than to essentially say to them: "This is our decision, but
if you disagree,then please challenge it because we will all learn
from this"? Real business people put their
risk where their mouths are. Trust is demonstrated by showing
you are willing to take a risk for a cause or an individual.
The great waves of downsizings and re-engineerings that prepared
companies for global competition also devastated work forces,
shattering trust between companies and their employees... As a
result, a free - agent mentality was born. Now employers are trying
to repair the damage and foster the kind of loyalty and commitment
they once eschewed.
Fortune Magazine (11/29/97 issue, page
291) also suggests that in order to keep your organization moving
forward you, in part, must listen very carefully to the sounds
of operating performance and that attention must be paid to cultural
alignment.
It is noted that monetary rewards aren't enough, and that companies
are now being forced in increase work conditions and benefits;
some companies are giving employees retreats in reward for completing
projects.
Much of a large organization's culture
is derived from written policy. The purpose of such policy is
to help in the orderly process of the corporate mission. The problem
of course is that the policies can, and are, subject to interpretation
and are not applied evenly across organizational divisions. EDR
helps to minimize interpretation differences and align an organization's
culture in a vertical hierarchy by publishing case lawî which
can be relied upon by management to ensure an orderly interpretation
of policy.
We believe that increasing wages and benefits is simply
not enough - and that, over time, the work force will again become
dissatisfied and disgruntled if they think that management is
not listening or being responsive. EDR seeks to provide
this necessary forum, provide organizational guidance, and help
retain key employees without disposable benefits or options.
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