Master Thesis in Strategic Human Resource Management and
Labour Relations
The complexity of Labour Market Programmes
A case study in the retail sector
Author: Charlotta Berlin
Department for Sociology/
Department of Business Administration
Thesis: 30 hp
Supervisors: Ola Bergström and Vedran Omanović
Semester: Spring 2016
Abstract
Problematization: Previous studies have mainly focused on the long-term effects of
youth unemployment and the effects of labour market programmes (hereby referred to
as LMP) as well as comparisons between different types of LMPs, predominantly on
macro-economic level. There is therefor a lack of knowledge of the experience of being a
participant of a LMP. Additionally, little has been explored in an organizational context.
Furthermore, there is a need for more knowledge on different solutions to the overall
high rate of youth unemployment in society.
Purpose: The purpose of this study is to explore what factors motivate organizations
and individuals to participate in LMPs. Moreover, the study aims to identify and explore
possible obstacles that might prevent secure developments of LMP implementation in
the retail labour market.
Methodology: The research was performed using a qualitative case study, and data was
conducted through semi-structured interviews and later analysed by using a deductive
content analysis.
Results: The trainees perceive their employment as an alternative for higher education
and as a chance for personal as well as social development, and as an opportunity to
learn specific skills. The supervisors personal preferences for participating was the
willingness to teach, manage and shape the trainee to fit their specific workplace, and an
engagement in the next generation. The main reason for Axfood to participate consists
mainly of the component that the LMP can be seen as a way for the company to attract,
retain and develop talented employees. The main obstacles for poor implementation of
the LMP were found to be the vague employer brand of the retail market and the limited
criteria for participating as a trainee. Further, the results suggest a tendency for the
company to try and find “the right candidate”, although the desired features of that
candidate do not match the existing criteria for participation.
Key words: Youth unemployment, active labour market policies, labour market
programmes, Governmentality, Institutional Isomorphism.
Acknowledgements
First and foremost I would like to thank my supervisors Ola Bergström and Vedran
Omanović for their helpful and much appreciated guidance during challenging as well as
successful times. I am truly grateful for your patience and insightful feedback during this
process. I would also like to thank the participants of this study, for their generosity and
sharing of time and accessibility to their organization and respective workplace. Thank
you.
Charlotta Berlin,
Gothenburg, August 18 2016
Table of content
Abstract……………………………………………………………………………………………………………………-
Acknowledgements…………………………………………………………………………………………………..-
1. Introduction……………………………………………………………………………………………………….…-1-
1.1 Youth unemployment and its consequences for society………………….……….…-1-
1.2 Active Labour Market Policies…………………………………………………………………..-3-
1.3 Active Labour Market Policies in Sweden…………………………………………….…….-4-
2. Previous Research…………………………………………………………………………………………………-6-
2.1 Previous Research in Sweden……………………………………………………………………-6-
2.2 Previous Research in Europe…………………………………………………..……….……….-7-
3. Problematization…………………………………………………………………….………………………..…-11-
3.1 Why study youth unemployment in the retail sector?…………………………………….-11-
3.2 Purpose of study………………………………………………..…………………………………..-13-
4. Theoretical framework……………………………………………………….……………………………….-14-
4.1 Governmentality…………………………………………………………………………………….-14-
4.2 Institutional Isomorphism………………………………………………………………………-15-
5. Methodology……………………………………………………………………………………………………….-18-
5.1 Research Design…………………………………………………………………………………….-18-
5.2 Setting………………………………………………………………………..………………………….-18-
5.3 Data Collection……………………………………………………………………………………….-19-
5.4 Data Analysis………………………………………………………………………………………….-19-
5.5 Delimitations…………………………………………..……………………………………………..-22-
5.6 Validity and Reliability……………………………………………………………………………-22-
5.7 Ethical Considerations……………………………………………………………………..…….-23-
6. Results and Analysis……………………………………………………………………………………………-25-
6.1 Understanding the participants roles in the LMP………………………..……………-25-
6.1.1. Personal development………………………..………..……………………………………..-25-
6.1.2. Human Capital…………………………………………………………………………………….-26-
6.1.3. Communication……………………………………………………………………………..……-28-
6.2 The market…………………………………………………………………………………………….-30-
6.3 The IT-system……………………………………………………………………………………..…-33-
6.4 The criteria for being a trainee…………………….…………………………………………-36-
7. Discussion…………………………………………………………………………………………………………..-39-
7.1 How can participation in LMPs be understood from an organizational and
individual perspective?………………………………………………………………………………………………….-39-
7.1.1. Understanding of employment -Individual understanding…………….……..-39-
7.1.2. What are the reasons for Axfood to engage in an LMP? Organizational
understanding………………………………………………………………………………………….….-40-
7.2 What factors might be possible causes for doubtful implementation of LMPs
in the retail market?……………………………………………………………………………………………………….-41-
7.2.1. Criteria………………………………………………………..……………………………………..-42-
8. Conclusion………………………………………………………………………………………….………………-44-
8.1 Main remarks……………………………………..…………………………………………………-44-
8.2 Contribution to existing research……………………………………………………………-45-
8.3 Contribution to the HRM-research field…………………………………………………..-46-
8.4 Further research……………………………………………………………………………………-46-
References……………………………………………………………………………………………………………..-47-
Appendix 1
1
The complexity of Labour Market Programmes
A case study in the retail sector
1. Introduction
1.1.
Youth unemployment and its consequences for society
In the aftermath of the great recession during the years 2008-2009, the youth
unemployment rate increased tremendously in different European countries, and
among them Sweden (Dietrich & Möller, 2015; Caliendo & Schmidl, 2016; O’Reilly et al,
2015, Jilmstad, 2015). In Sweden, the youth unemployment rate is approximately four
times high the adult unemployment rate. The high rates of youth unemployment are
perceived to have effects decades ahead and to be a burden for the social and economic
future for several member states in Europe (Dietrich & Möller, 2015). Younger
individuals entering the labour market are often considered to be a risk population in
facing a higher risk of unemployment than their older competitors, for example due to
lack of work experience (Caliendo & Schmidl, 2016; Dietrich & Möller, 2015).
Furthermore, the longer an individual stays unemployed, the less he or she is likely to
leave unemployment. One explanation for this is the loss of human capital, both work
specific skills but also for example a decreased feeling of motivation and punctuality
(Bell, 1999).
Furthermore, young people are prone to be more unemployed than older people, which
is often related to the fact that young adults tend to become unemployed, due to for
example short-term contracts and little or no working experience in order to be
retained. However, they also often remain unemployed for a shorter period of time than
older people (Layard, 2005). Previous studies have also shown that young people more
often face higher levels of stress, due to unemployment, than their older competitors on
the labour market. Young people may also experience difficulties later on in life such as
depression and minimum of retirement support, caused by entering to labour market at
2
a higher age (Goldsmith, 1997, Arulampalam 2001, Gregg & Tominey 2005; Kahn, 2010;
Skans, 2004). Accordingly, previous studies show that when an individual is being re-
employed after a separation from the labour market, the recovery from wage-loss is
particularly high (Arulampalam, 2001). Also, when returning to the labour market after
a separation the employee will sometimes receive a lower wage than prior the
separation due to skills deprivation caused by the unemployment. For example, the
employee might loose general skills, but also firm specific skills that might affect the
wages when being re-employed (Gregg & Tominey, 2005).
Not only do unemployment affect individual skills and knowledge, being unemployed
also seems to coerce the individual to manage the experience of being unemployed by
trying to reduce the potential damages the unemployment might have on the individuals
future career. In a study made by Mroz and Savage (2006) the long term-effects of youth
unemployment on later labour market outcomes were examined. The study provided
strong evidence that a lack of employment for a young adult today increases the
probability for the youth to train in the near future, in order to be attractive on the
labour market, rather than doing nothing at all, or taking on low-wage employments.
The researchers call it a human capital catch-up response to unemployment, meaning that
youths seek out training and work activities in order to avoid possible and unwanted
setback in their planned human capital profile, which can be caused by unemployment.
By seeking jobs, engaging in different work activities and train, young adults
experiencing unemployment battle the potential negative outcomes of being terminated
from the labour market for a longer period of time. However, even though the young
adults experiencing unemployment might engage in different work seeking activities
and training, the study also show upon long-term negative effects for the individual, and
the results of the study also support the notion that these youths do not fully recover
from the negative impacts of unemployment, such as for example wage loss (Mroz &
Savage, 2006). However, Cockx and Picchio (2013) suggest that stigmatization rather
than the loss of human capital may be a source of state-dependence in long-term youth
unemployment. Moreover, experience of unemployment in the first years after entering
the labour market tends to increase psychosomatic and psychological symptoms, as well
as usage of alcohol and narcotics, and thereby utilize health care services. Youth
unemployment also tends to decrease the individual’s social activities and in turn, the
3
unemployed individual faces social network losses that might influence later potential
employments in the individual’s working life (Mroz & Savage, 2006; Arulampalam,
2001).
As previously mentioned, the high rates of youth unemployment are of substantial
concern for societies and economies in general, and some youths face higher risk of
getting trapped in unemployment for a longer period of time (Mroz & Savage, 2006).
Accordingly, in a report from the OECD (2013) it is suggested that special, governmental
attention should be given to the groups that face higher risks of becoming marginalized
from the labour market alongside different social problems, such as for example low-
skilled young adults that are neither in education nor in employment (NEET). OECD also
suggest that societies in general need to take on actions to ensure that youths acquire
the right skills and bring those skills to the labour market in order to utilize them
effectively (OECD, 2013). What has then been done in order to decrease youth
unemployment? The following section will present the umbrella concept of active labour
market policies, which includes several different types of governmental polices that are
concerned to increase the ability and willingness of the unemployed to start working
(Layard, 2005).
1.2 Active Labour Market Policies
Several different solutions to decrease the high rates of youth unemployment have been
presented on national level over the years. Such a solution is Active Labour Market
Policies (hereby referred to as ALMP) and, as a part of ALMPs; labour market
programmes (hereby referred to as LMP). ALMPs and LMPs include for example Public
Employment Services, training schemes and employment subsidies. ALMPs intervene
the labour market and help unemployed to enter or re-enter the labour market (Martin,
2015). The overall purpose with LMPs is to prevent long periods of regular
unemployment, and to facilitate for unemployed and economical disadvantaged
individuals to enter the labour force (Sianesi, 2004; Hardoy, 2005). Furthermore,
another purpose of LMPs is to smooth the transition from school to work and to
promote entry into stable employment relationships (Caliendo & Schmidl, 2016).
4
Another purpose of LMPs is to address the youth labour demand. In times of economic
instability but also under normal economic conditions, there can be several explanations
to why rates of youth unemployment are high. Employers might not be willing to let go
of skilled personnel, or more prone to hire a more experienced worker than an
inexperienced. Furthermore, employers might hesitate to employ young persons and
engage in costly training and development if there is a risk of the youth leaving the
company. Hence, the LMPs might be effective tools for creating more integrated labour
markets, since they may work as bridges over the barriers of having little or non-
working experience (Caliendo & Schmidl, 2016).
1.3 Active Labour Market Policies in Sweden
Active labour market policies were developed in Sweden as early as the 1950’s, with the
ambition to meet the then current labour market demand that was increasing through a
rapidly growing economy. This was mostly done through financing of vocational training
programmes (Bonoli, 2012).
As a step to decrease the high rate of youth unemployment in Sweden, and facilitate for
the generation switch due to demographic changes, the Swedish government in
September 2011 invited representatives of the Swedish labour market to discuss and
find solutions to several problems on the current labour market. A problem that is
considered being highly important to solve is the, internationally compared, high
unemployment rate amongst young adults in Sweden (Ds 2013:20; Caliendo, 2016). The
purpose of the three part-discussions between employer organizations as well as trade
unions included finding possible ways to facilitate for young adults to be integrated into
the labour market, to broaden the ways that already exist and to find new ways for the
younger population to get their first labour market experience they need in order to
move forward in their career. The discussions resulted in the regulation for support and
a labour market program (LMP) for work introduction employments. In Sweden
organizations may, with subvention from The Swedish Public Employment Agency, hire
unemployed young adults in two different ways; New start job (nystartsjobb) and work
5
introduction employment (yrkesintroduktionsanställning), with the later as main focus
for this study. Work introduction employment is an employment type that combines
75% work and 25% education for the employee (SFS 2013:1157).
The regulation further states that financial support shall be provided for those
companies and organizations that employ young adults between the ages 15-25, who
are connected to the The Swedish Public Employment Agency. The subvention for
employing a young adult on these premises can rise to up to 55% of the employer costs
(Arbetsförmedlingen, 2015). The regulation entered into force in august 2014 (SFS
2013:1157), and the aim of the regulation was, in the long run, to employ a volume of
30000 young adults (Jilmstad, 2015). Until April 2015, The Swedish Public Employment
Agency has approved only 1133 work introduction employments, with the Volvo Group
as the employer of approximately half the amount of the approved employments
(U2014:07, YA-delegationen, 2015). Currently, there are five on-going employments of
this type within the retail sector (Personal communication, mars 2016).
6
2. Previous research
2.1 Previous research in Sweden
In a study made by Larsson (2003) a comparison was made between three different
strategies available for young unemployed individuals in Sweden. The study aimed to
determine and compare the outcomes from three different employment strategies; to
participate in either youth practice (ungdomspraktik) or labour market training, or to
search for a job as an open unemployed on the same premises as any unemployed. The
study consisted of a sample of 1657 individuals who participated in youth practice and
606 individuals in labour market training. The comparison group of openly unemployed
young adults consisted of 2000 individuals and the total sample of participants was
collected between 1992 and 1993. Youth practice entailed a subsidized programme that
aimed to provide work experience for a young adult with a high school diploma, aged
between 20-24 years. The approximate time spent in the programme was six months,
and could take place in either public or private sector. Participation in the programme
should be preceded by at least four months of active job searching as openly
unemployed (Larsson, 2003). In contrast, labour market training aims to improve the
skills of the youth unemployed, and to enhance the individual’s chances of meeting the
current demands on the labour market. Traditionally, it has been targeted to low
educated and low skilled young people and consists of different courses that are both
vocational and non-vocational (Larsson, 2003). The results of the study showed that
both youth practice and labour market training have negative short-term effect on
incomes and future employments. In the comparison between the two programmes it
was found that youth practice was better or less harmful than labour market training.
Notable is that neither one of the programmes examined seem to have had the
intentional effect for youth unemployment. Accordingly, many OECD countries have
failed in the ALMPs for youth unemployed (Larsson, 2003). This further stresses the
importance of research within this area. What are the reasons for the poor
implementation effects of LMPs?
7
In a study made by Forslund et al (2011) the effects of two ALMPs in Sweden, on the job
training scheme (arbetspraktik) and labour market training, were compared over the
business cycle. Their study aimed at exploring what ALMP works best during recession.
The data consisted of individuals aged 25-55, during 1999-2005, which had entered
unemployment and started the programs within the same year. The study mainly focus
on lock-in effects, since programs with large lock-in effects (such as on the job training
scheme) are most effective in times of recession, due to lower cost of search time
(Forslund et al, 2011). The study showed that it is relatively more useful to use labour
market training scheme in recession than during an economic up rise, and that on the
job-training scheme has a slightly more positive effect in the long run for the labour
market (Forslund et al, 2011).
In a report from the Swedish Public Employment Agency from 2015, a number of 902
work introduction employments were granted during the year of 2014. A total number
of 16 of the granted employments were targeted by the retail market, and the number of
female participants slightly exceeded the number of male participants. The results
further show that males represent 68% of the granted employments. Further, the results
show that 8% are born outside of Sweden. The report further presents external and
internal challenges for the LMP. The external challenging factors includes the quality of
supervision, how different promoters are to be used, how the cooperation between
employers is to be exerted and how employers can make the work introduction
employment a natural part of the organization’s activity. A mentioned internal challenge
is the restrictions in collective agreements. For example the employees are not allowed
to be, or to previously have been, employed by the employer
(Yrkesintroduktionsanställningar, Arbetsförmedlingens återrapportering 2014, 2015).
2.2 Previous research in Europe
Hardoy (2005) presents in a study a structural model that implies that individuals
participate in programmes (LMPs) in order to empower their human capital. By taking
part in the programmes, the individual expects to benefit from the participation by
improving his or her labour market prospects. Hence, the opportunities given by the
programmes might have effect on the choice of participation alongside individual
8
preferences. Opportunities are to some extent partly determined by personal
characteristics. Accordingly, programme administrators and potential employers might
have different preferences regarding the individual and that might affect the availability
and level of participation in LMPs (Hardoy, 2005). The study covered data of Norwegian
young unemployed people during the early 1990’s that participated in LMPs as well as a
comparison group consisting of young unemployed not participating in any programme.
Age spectrum was 16-25 years old. The study’s result showed that those who perceived
to benefit most from participating in the programmes did participate in a higher range.
However, there were no strong indications that participation in fact did improve labour
market prospects. Only participation in employment programmes seemed to have some
positive effect on labour market prospects, and only for females and younger
individuals. The result of the study therefor gives little support to the notion that LMPs,
at this time, improve young adults prospects on the labour market (Hardoy, 2005).
A study made by Caliendo (2011) uses Germany as a case study to examine the
effectiveness of active labour market programs. Germany has often been considered a
role model in terms of youth labour market integration and labour market incentives,
and participation in active labour market programmes has increased during the past
years. However, a notable share of young adults still face structural difficulties when
about to enter the labour market. The sample in Caliendo’s (2011) study consisted of a
representative number of young unemployment entries at 2002, aged 25 and younger. A
comparison group of non-participators in ALMP was added. The study investigated the
effectiveness of participating in an active labour market program versus non-
participation in such a programme, and a comparison between different programmes
was later presented. The results show, contradictory to the studies made by Hardoy
(2005) and Larsson (2003), an overall positive effect of participating in a LMP,
especially wage-subsidies have a positive long-term effect on employment probability.
Public sector job creating schemes were found to have negative impact on employment
prospects in the short-run and to be ineffective in the long run. Participation in such a
programme may hence be harmful for the individual (Caliendo, 2011). The study’s
results show that participation in LMPs has a stronger positive effect on future
employment prospects if the individuals have had high level of pre-treatment schooling
than if the individuals have had low pre-treatment schooling. None of the programmes
9
studied increase the education participation among youths. The researchers suggest
adjustments in existing programmes in order to integrate low-educated youths into the
labour market in a more sustainable way (Caliendo, 2011; Caliendo, 2016).
During 1998, a new active labour market programme was introduced throughout Great
Britain. The programme called “The new deal for young people” (NDYP) aimed to help
young unemployed into work as well as increasing their employability (Bell, 1999;
Dorsett, 2006). The programme is targeted at unemployed individuals, aged 18-24,
having requested for unemployment benefits during at least 6 months. The individuals
in this programme first undergo a period (up to four months) of intensive job search
before they enter one of four options; subsided employment, education and training on
full time, environmental task force or voluntary sector. After this, they enter a stage of
follow-through, including further job search (Dorsett, 2006). In a study made by Bell
(1999), the likely effects of NDYP are examined and the researchers argue that the
effects of NDYP are more modest than expected. They also present different ways that
could help NDYP to meet its goals. The results of the study showed that the productivity
effects of the programme were relatively modest, in relation to expected subsidy needed
in order to get the targeted group into work. Furthermore, the researcher could see
tendencies for the overall effects of the NDYP policy to be more modest than anticipated
(Bell, 1999). However, it is important to consider that this study was made only a year
after the implementation of the programme. Therefor it is important to view the results
with a critical eye since the long-term effects of the programme are not evaluated.
In 2006, Dorsett (2006) explored in a study among young men the implementation and
the relative effectiveness of the different options of NDYP in reducing unemployment
and increasing employment. As one of the first evaluation studies of a labour market
programme in UK, the study focuses on which option and element in NDYP that has the
strongest effect for reducing unemployment and increasing employment. Further it
discusses which option is most effective, and which elements need to be changed for
reaching better effectiveness of the policy (Dorsett, 2006). The analysis is build upon
administrative data over all men entering NDYP in 1998, and consists of four NDYP
options mentioned above; subsided full-time employment, full-time education/training
(for those lacking basic qualifications), work placement in a voluntary sector for the
10
cause of gaining experience (often placed in retail sector or other service sectors) and
lastly, the Environmental Task Force which means that the individual work for an
organization with an explicit environment focused responsibility (Dorsett, 2006). The
results of the study show that subsided employment increases the chances of getting out
of unemployment, and into employment that is not subsided, to a greater extent than the
other options. Participation in full-time education and participation in work placement
in a voluntary sector increases the chances of employment slightly more than engaging
in Environmental Task Force; however, the differences between these options are less
marked. This suggests, similar to the study made by Caliendo (2011), that the option of
subsided employment dominates the other options in relation to future employment
effects (Dorsett, 2006).
11
3. Problematization
3.1 Why study youth unemployment in the retail sector?
Considering youth unemployment as an issue that affects the society, the economy and
growth of industries and the individual itself, it seems as an issue considered being
important to solve. Yet Sweden still has a large number of unemployed young adults
(Caliendo & Schmidl, 2016). Despite the alarmingly high rate of youth unemployment in
Sweden and Europe, and the well-known awareness of individual as well as societal
consequences that comes along with unemployment, the participation rate in LMPs in
the retail sector is particularly low. Interestingly, the retail market employs the highest
proportion of part-time workers, and has traditionally been viewed as a sector where
many young adults get their first working experience, for example by working part- time
alongside school. This raises the question why the implementation of LMPs in retail has
far from fully reached it’s goal of employing a larger number of young adults, and the
aim to facilitate for safe ways in to the labour market for these young, unemployed
adults.
Additionally, the retail sector faces further challenges, for example a higher than average
rate of personnel turnover. Furthermore, the retail labour market has a poor image as a
final career destination, particularly for high-qualified employees. Even though the retail
market has expanded over the past years, there are difficulties in employing suitable
employees with the right specific skills (Hart et al., 2007). This further stresses the
anticipation that LMPs would be a quite arguable employment alternative for employers
in the retail sector to engage in.
As mentioned above, there are several consequences that come along with youth
unemployment, for example economical and health related problems that are important
to take into consideration for any part involved. Especially youth unemployment is
considered being a highly important issue to be solved, since it has an unarguable effect
on a nation’s economical future growth and wellness. Several studies have been made
concerning youth unemployment and ALMPs in general (See for example Caliendo,
2011; Hardoy, 2005; Larsson, 2003; Dorsett, 2006; Calmfors & Forslund, 2002).
12
However, while there are several studies on youth unemployment and its effects on
society, little is known about the experiences of being a participant of ALMP
programmes (LMP).
Previous studies have mainly focused on the long-term effects of youth unemployment
and the effects of LMPs in general, as well as comparisons between different types of
LMPs on macro-economic level. Further, previous micro-economic studies have
generally had a focus to compare the outcomes or supposed benefits for those in the
programme compared to individuals who are not targeted by the LMPs (Jackman, 1996).
Additionally, little has been explored in an individual and organizational context. Since
the retail market traditionally has been viewed as a market strongly targeted at young
people, why are there only five on-going employments at this point today? This creates a
curiosity to explore what reasons might complicate the implementation of LMPs in the
retail sector. Even though the government encourages engagement in LMPs, the
participation by organizations is voluntarily. Still some organizations do participate,
although the underlying reasons for participation might vary. Are there any specific
intentions for organizations to engage in LMPs? How does the individual view this kind
of employment, and why?
From a Human Resource Management (hereby referred to as HRM) perspective, it is of
importance to study the different ambitions of LMPs as well as the actual outcomes for
participants. LMPs target concepts such as retention, employment, knowledge
development and professionalization, and are therefor strongly linked to HRM practices
(Bratton & Gold, 2012). It is also of importance for managers to gain knowledge about
employees’ perception of their employment and the organization they work for, in order
to optimize HR processes within the organization.
Why using a case study as research strategy?
The chosen research strategy for this study is a case study. By using a case study as
research strategy, this study aims at recognizing plausible reoccurring themes
surrounding the implementation of LMPs, and potential difficulties that might hinder the
implementation of LMPs. The study aims to investigate a certain phenomena
13
(implementation of LMPs) in a specific context (an organization within the retail sector),
and thereby, hopefully, offer some light to different processes that might have an impact
on the displayed theoretical issues.
Furthermore, it is the chosen strategy since a case study of an organization provides
information from a point of view that can be applied to a broader set back (e.g. the retail
sector) (Kohlbacher, 2006; Hartley, 2004). Additionally, from an individual’s perspective
a case study provides information that can be useful within the organizational
environment and for the organization’s further development of its work with LMPs.
3.2 Purpose of study
Stepping off from existing literature and previous research, the purpose of this study is
to explore what factors motivate organizations and individuals to participate in LMPs.
Moreover, the study aims to identify and explore possible obstacles that might prevent
secure developments of LMP implementation in the retail labour market. By using a case
study as research strategy, this study further aspires to offer a clear depiction of how
organizations and their individuals manage new types of employments, and how the
implementation of LMP is adapted and developed. By this, the study aims to contribute
to existing literature by offering a possible understanding of how organizations and
individuals perceive LMPs. Further, this study aspires to contribute to the predominant
societal and sociological oriented existing research field by offering an illustrative
organizational case example.
Research questions:
How can participation in LMPs in the retail sector be understood from an
organizational and individual perspective and what motivates individuals and
organizations to participate in an LMP?
o What factors might be possible causes for doubtful implementation of LMPs in
the retail sector?
14
4. Theoretical framework
In this section, the framework used when analysing the results is presented. The two
theories that were used in this study were chosen using a top-down approach. By
looking from a societal perspective on ALMPs and LMPs, governmentality offers
viewpoints on societal incentives for engaging in LMPs. Additionally, Institutional
Isomporhism presents equitable aspects for organizations to participate in LMPs.
4.1 Governmentality
As previously stated, a number of different solutions to youth unemployment have been
presented in several OECD countries (Caliendo, 2016). This raises the question of what
factors drive societies to develop LMPs and engage in the population. The theoretical
perspective of governmentality stems from Michel Foucault and his lectures at the
Collége de France 1983-1984 (Foucault, 2012), and has become a theoretical tool that
has been utilized to make sense and understand different political arenas as well as
changes in the economical landscape (Walters, 2012; Dean, 2010; Boland, 2015).
Foucault (1982; in Dean, 2010) defines government as “conduct of conduct”. To conduct
means to lead, to direct or to guide, and implies further some sort of management or
estimation as to how this is to be done. Those who seek to govern hence perceive human
conduct, or behaviour, as something that can be regulated, controlled, shaped and
turned into specific ends (Dean, 2010).
Governmentality brings the idea that governmental intervention, for example social
policies as LMPs, shape individual subjects (Boland, 2015). It emerges gradually in pace
with the modern state’s development, and seek to optimize and manage the productivity
of the population. Governmental interventions often target specific groups, for example
unemployed, and take form in different ways of managing the unemployed, for example
certain ways of management at employment agencies and in what ways media speak of
unemployed. The governmental interventions in turn leads to a certain and dominant
perspective of the group targeted by the interventions. Thus, this can then be translated
to the perspective of young unemployed adults as being a complex and problematic
population that needs to be monitored and facilitated (Boland, 2015). Further, the term
15
“unemployed” states a socioeconomic condition. This in turn allows for the idea that
unemployment is a “rate” or “level” that can be managed and monitored through
different matrixes (Walters, 2012). Accordingly, Cockx and Picchio (2013) argue that
one reason for young adults to remain unemployed is the stigmatization of being
unemployed, rather than the decrease of human capital.
Correspondingly, the government of for example the economy and of the unemployed
entails to effect and in some ways shape who and what individuals and collectives are
and should be. This in turn directs the perspective of how societies view certain
populations. The unemployed might often be regarded as a person with low self-esteem,
which is in need of encouraging, self-help and as a person in risk of becoming dependent
on welfare policies. Moreover, the national population as a whole is often regarded as
lacking the capabilities of innovativeness and entrepreneurship that is required to be
internationally competitive (Dean, 2010). This means that the collective perspectives of
some groups also legitimate some of the policies and national programmes that are
created in order to help certain groups in society (Walters, 2012; Boland, 2015).
4.2 Institutional Isomorphism
This study’s theoretical approach has previously focused on what reasons there might
be for societies to conduct different social policies, and the subtle yet strong influencers
that might have an impact on how societies treat collectives as well as individuals.
However, there is no demand for organizations in Sweden to participate in LMPs. In
order to contribute with a broader perspective, and for the analysis to be solid, some
light will be shed on the organizational perspective, and the reasons for why some
organizations engage in helping young adults on their way in to the labour market. As a
theoretical framework for why organizations tend to create trainee-programs and
promote educational development, the concept of institutional isomorphism will be
used in this study.
Isomorphism can be described as a “constraining process that forces one unit in a
population to resemble other units that face the same set of environmental conditions”
(Hawley, 1968 in DiMaggio & Powell, 1983, p 149). Following Meyer and Rowans’ work
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(1977), DiMaggio and Powell (1983) identify three mechanisms of institutional
isomorphic change, namely coercive isomorphism, mimetic isomorphism and normative
isomorphism.
Coercive isomorphism
Coercive isomorphism results from political influences, and both formal and informal
pressures on organizations from other similar organizations, or organizations that they
depend on. Some organizational changes and decision-making are direct influences from
society and governmental mandates, and pressures from a shared legal environment
(DiMaggio & Powell, 1983). It has also been argued that organizational structures reflect
the rules institutionalized and legitimated by and within the state (Meyer & Rowan,
1977). The external pressures on organizations to adapt the practices and rules that are
considered important in an industry also therefor tend to make organizations more
similar to each other. It is the threat of not accomplishing a certain level of required and
desired standard in the business that is an implicit force for organizations to act and
develop new systems, often designed in a certain way (Nicolaou, 1999). This contributes
to the reasons why organizations act homogeneously in societies and in their business
environment.
Mimetic isomorphism or mimetic processes
DiMaggio and Powell (1983) argue that uncertainty has a strong influence on why
organizations tend to imitate one another. Uncertainty in this sense could be, for
example, environmental uncertainty, when organizations face ambiguous problems with
unclear solutions or when the pathways to certain goals are in disguise. When
uncertainty strikes, organizations tend to “model” other organizations. Their behaviour
is therefor mimetic, they borrow practices that seems legit and usable from the
organization being modelled and imitate them. The companies imitating the
organization that acts as a role model tend to do so to be able to claim and demonstrate
that they in fact are doing something to improve for example working condition or
solutions to understaffed work places. Innovation is a common phenomenon for
organizational modelling. Organizations imitate innovative companies in order to
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legitimize themselves. The more personnel an organization employ or the greater the
spread of its customers is, the stronger the pressure on other organizations to follow its
lead and provide the same programmes and services as the organization being imitated.
Thus, the stronger the labour force, more customers or the better innovation prospect,
the greater the possibilities for mimetic isomorphism amongst organizations (DiMaggio
& Powell, 1983).
Normative isomorphic processes
Normative isomorphism stems from the professionalization. Professionalization can be
understood as the shared struggle amongst members of a certain occupation to define
the condition and methods of their work. Over the latest decades, the largest growth in
professions has particularly been concentrated to specialized staff of large organizations
(DiMaggio & Powell, 1983). Professionals can be described as the persons in
organizations with specialized formal education who have expertise in offering some
knowledge-based service to their respective organization (Teodoro, 2014; Abbott,
1988). Both associations and mechanisms of formal education that professional’s share,
as well ass socialization and similar recruitment processes, contribute to the production
of a common cognitive base and a joint legitimization of occupational autonomy, which
leads to similar organizational structures between one organization and another
(Radaelli, 2000). Thus, when occupations cause individuals in organizations to conform
to the dominant behaviour of their professional community, by for example different
social rewards or opportunities in employment, normative isomorphism occurs
(Radaelli, 2000; Teodoro, 2014; DiMaggio & Powell, 1983).
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5. Method
5.1 Research design
The research for this thesis was performed through a qualitative approach, using semi-
structured interviews, annual reports and further documents such as organizational
newsletters as primary data. Since the study focuses on exploring LMP implementation
through the perspective of individuals, as well as from an organizational perspective, a
qualitative method is an appropriate method of choice. The study further strives to
investigate underlying reasons for uncertain implementation and thus, a case study is a
suitable choice of research design (Alvesson & Sköldberg, 2009).
5.2 Setting
The company investigated in this thesis is a large corporation, Axfood, which conducts
food retail and wholesales in Sweden and consists of 376 stores. Their strategy relies
upon five cornerstones: profitability, growth, customers, sustainable development,
and employees and organization. Profitability means that the company strives to be the
most profitable company within food retail in Sweden by improving effectiveness of
assortment, increasing efficiency in logistics and at stores, and by having a good cost
control. The company also plans to increase its market share by for example growth in
digital business. Furthermore, the company also have clear sustainability goals, which
includes being an active and responsible societal actor. The company also strives to have
proud and committed employees. To achieve this, the company focuses on attracting,
retaining and developing its employees. They also stress the importance for the
company to have value based leader- as well as employeeship, and to have a clear
organizational culture that inspires. They also strive to be a customer focused
organization and emphasises the importance of having an entrepreneurial spirit. The
company further emphasises the importance of having purposeful, user friendly, cost-
effective and secure HR-processes. (Axfood, annual report 2015).
