ACADEMY ASSOCIATION OF ECONOMICS CERTIFIED CHARTERED ECONOMISTS CHE CEPA

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In the 1980s and 1990s, many employers developed new ways to organize their work forces. In some companies, employees were grouped into small teams and given considerable autonomy to accomplish tasks assigned them. While management set the goals for the work teams and monitored their progress and results, team members decided among themselves how to do their work and how to adjust strategies as customer needs and conditions changed. Many other employers balked at abandoning traditional management-directed work, however, and others found the transition difficult. Rulings by the National Labor Relations Board that many work teams used by nonunion employers were illegal management-dominated "unions" were often a deterrent to change. Employers also had to manage increasingly diverse work forces in the 1980s and 1990s. New ethnic groups -- especially Hispanics and immigrants from various Asian countries -- joined the labor force in growing numbers, and more and more women entered traditionally male-dominated jobs. A growing number of employees filed lawsuits charging that employers discriminated against them on the basis of race, gender, age, or physical disability. The caseload at the federal Equal Employment Opportunity Commission, where such allegations are first lodged, climbed to more than 16,000 in 1998 from some 6,900 in 1991, and lawsuits clogged the courts. The legal actions had a mixed track record in court. Many cases were rebuffed as frivolous, but courts also recognized a wide range of legal protections against hiring, promotion, demotion, and firing abuses. In 1998, for example, U.S. Supreme Court rulings held that employers must ensure 101

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Friedrich August von Hayek, 1974 Nobel Prize Winner

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