[Excerpt] A newsletter on workplace issues and research from the School of Industrial and Labor Relations at Cornell University

Edid, Editor, Maralyn

English

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Policy & Issue Briefs ILR Collection 
January 2001 
IWS briefing, Summer 2001 Volume 1 Issue 2 
Maralyn Edid, Editor 
Institute for Workplace Studies 
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IWS briefing, Summer 2001 Volume 1 Issue 2 
Abstract 
[Excerpt] A newsletter on workplace issues and research from the School of Industrial and Labor 
Relations at Cornell University. 
Keywords 
ILR, Institute for Workplace Studies, IWS, labor, market, employee, manager, job, union, challenge, career, 
law, Katherine V.W. Stone, boundaryless, Quinetta Roberson, diversity, Bruce S. Raynor, Clete Daniel, UNITE 
Comments 
Suggested Citation 
IWS briefing (Summer 2001) [Electronic version]. New York, NY: Cornell University, School of Industrial and 
Labor Relations, Institute for Workplace Studies. 
http://digitalcommons.ilr.cornell.edu/briefs/17/ 
This article is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/briefs/17 
Summer 2001
Volume 1 Issue 2
 IN THIS ISSUE
A newsletter on
workplace issues
and research from
the School of
Industrial and
Labor Relations at
Cornell University
from the  School of Industr ial & Labor Relat ions
1
1 Boundaryless
Careers
1 ILR Faculty Write
2 Psychological
Contract
3 Diversity and the
Bottom Line
3 Textile Workers’
History
Boundaryless Careers
Challenge Unions and the Law
THE DAYS OF LONG-TERM EMPLOYMENT at one firm, with internallabor markets and hierarchical job ladders, have disappeared.In their wake have come job hopping across firms, contingent
work, personal responsibility for career planning and skill acquisition,
and the disintegration of mutual expectations between employer
and employee about commitment in exchange for security (see sidebar
‘Sign Here’, page 2). Welcome to the “boundaryless” world of work.
The realities of a more competitive and fluid workplace are challenging
many of the legal theories and institutional structures that dominated
the 20th century, according to Katherine V.W. Stone, the Anne Evans
Estabrook Professor of Dispute Resolution at ILR and professor of law
at Cornell Law School. Existing labor and employment statutes are
predicated on workforce stability and strong attachments between
employers and employees. But the advent of “boundaryless” careers,
where employment identity is derived from skill sets or professional
expertise rather than from the place of employment, suggests the time
has come to rethink and revamp the existing order.
In the realm of employment discrimination law, Prof. Stone told attend-
ees at a recent session of the Institute for Workplace Studies’ Work-
place Colloquium Series, “we need a new theory of substantive liability
and new avenues for redress.” The growing casualization of employ-
ment relations, she continued, likewise demands an overhaul of collec-
tive bargaining laws and revised forms of union representation.
Consider statutes such as the National Labor Relations Act and Title VII
of the Civil Rights Act of 1964. The labor act was conceived against a
backdrop of employer-specific bargaining units, distinct job classifica-
tions, seniority, just-cause termination, and longevity-based wages and
benefits. Anti-discrimination laws were aimed at eliminating bias and
partiality within a hierarchically organized workplace. Even New Deal
programs, such as Social Security and unemployment insurance, were
devised to encourage and reinforce long-term bonds between employer
and employee.
The modern “boundaryless” workplace, however, presents an altered
reality. For one thing, the rate of unionization has declined dramatically
and many workplace changes are occurring in nonunion settings, leav-
ing employees without the protections afforded by collective represen-
tation. Moreover, Prof. Stone noted, labor laws do not ensure pension
and health insurance portability for workers who change jobs fre-
quently or address work arrangements that conflict with the legal defi-
nition of a bargaining unit.
continued on page 2
ILR Faculty Write About…
Economic growth has long been
perceived as the magic elixir that
would lift a nation and its people out
of poverty. Gary Fields, professor of
labor economics and economics at
ILR, elaborates on that idea in
Distribution and Development: A New
Look at the Developing World (2001.
New York: Russell Sage Foundation,
and Cambridge: The MIT Press. 260
pgs. $35). Prof. Fields uses newly
available panel data that look at
individuals and families over time to
analyze the differential impact of
economic growth on different groups
within an economy. He explores the
interlocking concerns of poverty,
inequality, income mobility, and
economic well being and finds that
the poor do get richer as economies
grow and develop, although half the
time their situation improves faster
than that of wealthier classes and half
the time it improves more slowly.
Relying on theoretical and empirical
techniques, Prof. Fields suggests a
set of variables that can be used to
measure gains in the standard of
living and analyzes the mix of policies
and circumstances that enable some
countries to fare better than others.
Despite its technical base, this book
is accessible to informed lay readers.
Tuition at America’s best colleges and
universities has been rising faster
than the rate of inflation. Ronald G.
Ehrenberg, Irving M. Ives Professor
and professor of labor economics at
ILR, analyzes and explains the phe-
nomenon in Tuition Rising: Why Col-
lege Costs So Much (2000. Cam-
bridge: Harvard University Press. 336
pgs. $39.95). Prof. Ehrenberg con-
cludes that ineffective central control
of costs and competition for students
are the roots of the problem.
2Anti-discrimination laws seem inappro-
priate for workplaces where it is just as
important to fit in as it is to forge
ahead. Individualized skill acquisition,
work teams that mutate into cliques,
vaguely defined performance stan-
dards, and invisible decision-makers
who allocate rewards can all have in-
sidious effects on certain classes of
workers. Women and minority employ-
ees, for example, are less prone to en-
gage in proactive career management
and more likely to be frozen out by co-
workers. “Without clear hierarchies or
opportunities that are specified,” Prof.
Stone said, “it’s hard to complain about
gender and race discrimination or to
isolate and assess blame.”
Alternatives to the status quo are
needed. Labor law doctrine, Prof. Stone
suggested, should jettison its job and
employer focus and embrace an em-
ployee-centered approach. Unions
could recast themselves in any number
of ways, such as mutual benefit asso-
ciations open to all workers, occupa-
tion-specific craft unions, or citizen
unions that advocate for “living
wages,” corporate contributions to the
community, job training, and the like.
And finally, Prof. Stone said, employers
and employees should turn to alterna-
tive dispute resolution (ADR), with the
involvement of outside neutrals, to help
remedy more subtle forms of work-
place discrimination.
To be sure, change has been rippling
through the union movement and some
employers have embraced ADR. The
near-term prospects for reform of labor
and employment laws, however, appear
dimmer. Indeed, there is no doubt the
“boundaryless” workplace will con-
tinue to strain current arrangements.
‘The New Psychological Contract: Impli-
cations of the Changing Workplace for
Labor and Employment Law,’ by Prof.
Stone, appeared in the February 2001
issue of the UCLA Law Review. Prof.
Stone may be reached at (607)255-6692
or kvs4@cornell.edu.  ■
Sign Here: The New Psychological Contract
The emergence of the “boundaryless” workplace affects more than just labor
and employment law and union structure and practice. Traditional human
resource strategies that reflect and reinforce long-term employer-employee
bonds are also in transition. The old psychological contract, which embodied a
set of mutual expectations and obligations between employer and employee,
is being rewritten to accommodate employers’ need for employee commitment
without the promise of job security.
Globalization of trade, a focus on short-term costs, and rapid response to
changing market conditions all mean that workers come and go in response to
forces beyond their control. At the same time, many are quitting in search of
higher pay and status, more challenging assignments, and more participative
environments. Indeed, the Bureau of Labor Statistics reported that job tenure,
particularly among men, fell steeply between 1983 and 1998. Bilateral loyalty
is a thing of the past.
“Employers are left with a paradox,” Prof. Stone noted in her remarks at the
colloquium. “That is, how to motivate and induce efficiency, productivity, qual-
ity outputs, and entrepreneurial behavior in the absence of an implicit pledge
of lifetime employment with well-defined job ladders.” What employers really
want, Prof. Stone explained, is something academic theorists call “organiza-
tional citizenship behavior” (OCB). By this they mean spontaneous and inno-
vative activities above and beyond employees’ specific, mundane roles. OCB
is vital, she said, because it correlates with profitability and effectiveness.
Human resource strategy and practice are beginning to resolve this dilemma.
The new psychological contract, Prof. Stone said, contains a different mix of
inducements. Many employers now offer ongoing skill training, an investment
in human capital that may enhance workers’ employability at other companies.
Employers help employees raise their social capital by providing opportunities
to develop networks of peers, customers, suppliers, and competitors who
could provide employment in the future. In keeping with the twin themes of
individual career paths and individual achievement, new compensation
schemes reward high performers and reflect differential talents and contribu-
tions. Meanwhile, flat hierarchies and the absence of executive perks, such as
restricted dining rooms and parking places, help alleviate status distinctions
and create a sense of egalitarian belonging.
Boundaryless Careers
continued from page 1
Two Views on the Textile Workers’ History
SAME FACTS, different emphasis. Not uncommon when inter-preting history, especially
when those rendering the analysis
happen to be a disinterested scholar
and a committed labor leader.
So it was no surprise when Clete
Daniel, professor of American labor
history at ILR, and Bruce S. Raynor,
secretary-treasurer of UNITE, proffered
distinct perspectives on the history of
the Textile Workers Union of America
at a recent session of the Workplace
Colloquium Series, which is sponsored by
the Institute for Workplace Studies.
According to Prof. Daniel, the textile
workers gained little power within their
broadly diversified industry. The union
successfully organized northern
millhands, he said, but faltered in the
south in the face of fierce anti-unionism
among employers and the failure of
federal courts and the National Labor
Relations Board to enforce workers’
rights. The recession of 1937 and the
loss of Sidney Hillman as the organiz-
ing committee’s visionary and charis-
matic leader further hindered a critical
pre-World War II organizing drive.
continued on page 4
3Finding the Link from Diversity to the Bottom Line
But focusing on the metrics of regula-
tion and appropriate skills and attitudes
obscures a fundamental question: is
diversity good for business? Research-
ers have already shown that diversity
promotes innovation and problem solv-
ing and opens up new markets. A par-
allel stream of research has shown a
direct connection between these factors
and financial performance. Quinetta
Roberson, assistant professor of human
resource studies at ILR, is now trying to
determine whether the seemingly indi-
rect link between diversity and the
bottom line is actually more straightfor-
ward. Prof. Roberson discussed her
research at a recent session of the Insti-
tute for Workplace Studies’ 2000-2001
Workplace Colloquium Series.
The four-part study promises to yield
important practical outcomes. In addi-
tion to pushing the academic literature
towards consideration of the strategic
role of diversity within organizations,
Prof. Roberson also hopes to provide
human resource (HR) and diversity
professionals with a roadmap specify-
ing how certain bundles of diversity
management practices can make the
work environment more inclusive. (For
purposes of this project, “diversity”
refers to the range of human similari-
ties and differences while “inclusion”
refers to organizational systems and
structures that value and make the
most of human differences.)
As Prof. Roberson pointed out, getting
the numbers right is merely a prelude
to fully integrating diversity into a
company’s culture and strategy. That
second step requires commitment from
the top, linking diversity management
to organizational strategy and monitor-
ing its impact, fairness in policies,
MOST  U.S. EMPLOYERS must abide by Title VII of the Civil Rights Act of1964 and other anti-discrimination laws. One intent, of course, is toenhance workforce diversity by affording employment opportunities to
protected classes of workers, such as people of color, women, ethnic and religious
minorities, veterans, individuals with disabilities, and 40-somethings and beyond.
Practically speaking, this means employers spend a lot of time managing compli-
ance issues and training employees to co-exist in a world of differences.
attention to individual needs and
strengths, and implementation of par-
ticipative work systems.
The work environment dictates what
kind of diversity management is impor-
tant, Prof. Roberson explained. Manag-
ers must understand how diversity
affects the work of the business unit
and then use this knowledge to im-
prove results. For example, a factory
with a high proportion of male workers
may need a different gender balance
and/or attention to
sexual harassment
issues. The research
and development
division of this organi-
zation may find that
diverse perspectives
arising from educa-
tional background, tenure, or career
experiences facilitate greater creativity
and innovation. In other words, manag-
ers should create a climate in which all
employees can contribute toward the
achievement of organizational objec-
tives. “One day,” Prof. Roberson said,
“diversity management will be part of
strategic HR management.”
This current study builds on anecdotal
evidence suggesting that workforce
diversity positively affects results. Prof.
Roberson cited Fortune magazine’s list
of 50 best companies for minorities,
whose overall stock performance has
outpaced the Standard & Poor’s 500.
She noted specific cases in which busi-
ness needs prompted more proactive
diversity management, such as efforts
by a large pharmaceutical company to
diversify its sales force by redefining
and focusing on knowledge, skills, and
abilities; this transition enabled the
company to open up new markets and
better serve its customers. In another
instance, one high-tech manufacturer
trained managers in coaching and com-
municating with employees and soon
realized a positive spillover: significant
improvements in the management of its
already diverse workforce.
Prof. Roberson and colleagues Brent
Smith, assistant professor of organiza-
tional behavior at ILR, and Susan
Woods, senior extension associate at
ILR’s Programs for Employment and
Workplace Systems, are gathering data
in three stages from a Web-based sur-
vey of diversity professionals. In the
first phase, they asked respondents to
define ”inclusion” and “diversity” and
to qualitatively describe such environ-
ments within organizations. Next, they
asked respondents to compare the
processes of building
inclusive organiza-
tions with building
diverse organizations
by rating the extent
to which organiza-
tional and HR at-
tributes support each environment. The
current phase involves delving into
leadership qualities; i.e., the skills and
attributes necessary to promote and
sustain inclusion within organizations.
The final piece of the project will at-
tempt to measure the bottom-line im-
pact of workforce diversity. The
research team will draw on the existing
literature in the field of strategic HR to
devise quantitative standards for moni-
toring the impacts of diversity initia-
tives within organizations. The outcomes
of this phase should enable the re-
searchers to make prescriptions for
using diversity to improve organiza-
tional performance. Prof. Roberson and
her colleagues expect to complete the
project later this year.
The study is funded by ILR and the
National Conference for Community
and Justice. Contact Prof. Roberson at
(607)255-4454 or qmr3@cornell.edu
for more information. ■
Diversity management
practices can make the
work environment
more inclusive.
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As the committee’s efforts flagged, Prof. Daniel
said, internal squabbles arose and “a pattern and
culture of self-destructive behavior” emerged. Its
undemocratic organizing structure, coupled with
the campaign’s failure in the south, prompted key
allies to withdraw support. The committee was
dissolved and replaced by a constitutionally-based
but “highly politicized” union, Prof. Daniel ex-
plained. Deep divisions between the new union’s
northern and southern flanks debilitated the na-
scent organization. A strike in 1951, a byproduct of
this internal warfare, destroyed the union’s small
base in the south.
Mr. Raynor countered with a different historical
twist. He agreed that vicious employer opposition
in the south, and not workers’ timidity, as northern
critics had charged, seriously damaged the union.
But focusing more on the recent past, he noted the
union’s economic successes and its role in nurtur-
ing dynamic leaders for a growing labor
movement. Moreover, the textile workers
union, now part of UNITE, is alive and
well today. It is imbued with an ethic of
honesty and hard work, it actively seeks
new members, and it values rank-and-file
empowerment. The textile workers, he
concluded, have persevered through diffi-
cult periods and continued to fight for
equality between labor and management.
Prof. Daniel’s book, Culture of Misfortune:
An Interpretive History of Textile Union-
ism in the United States, will soon be
published by Cornell University Press.
Prof. Daniel may be reached at
ced6@cornell.edu or (607)255-6691.  ■
Textile Workers
continued from page 2
➜GO TO
www.ilr.cornell.edu/iws for updates about
Institute for Workplace Studies events.


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