In the USA, with a strong economy and falling unemployment, a large number of firms are still restructuring the workplace, including laying off workers. Coupled with this is a change in the employment relationship, giving some workers opportunities to use their knowledge and skills, while other workers are experiencing a deterioration in their working conditions. This paper, resulting from a survey carried out by the Sloan School of Management, MIT, in 1997, examines the spread of High Performance Work Systems and shows that managers accept that these innovations lead to higher productivity and quality. The survey also shows that workers welcome the higher levels of responsibility these work systems give. However, it also indicates that the balance of power within these firms is shifting away from employees to managers, resulting in higher possibilities of layoff and higher levels of income inequality.
