chap 10 - employee satisfaction (2)

8/9/2019 Chap 10 - Employee Satisfaction (2)

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2010 Cengage Learning

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Employee Satisfaction andCommitment


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Exercise 10.1Think of a job in which you were really unhappy?

Why was it so bad?

Now think of a job in which you were very happy

and satisfied. Why was it so good?


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Why Worry About

Employee Attitudes?Outcome Satisfaction Commitment

Absenteeism -.23 -.23

Turnover -.22 -.23

Lateness -.11 -.29

Organizational citizenship .24 .25

Counterproductive behavior -.37 -.36Performance .30

Commitment .59

Note: Numbers in table are corrected correlations


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Individual Differences in

Employee Satisfaction Important Findings Consistency across jobs

Consistency across time

Relationship between life

satisfaction and job satisfaction

Why?

Genetic predispositions

Core self-evaluations

self-esteem

self-efficacy

internal locus of control

optimism/positive affectivity


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Types of Organizational

Commitment Affective commitment

Continuance commitment

Normative commitment


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Core Self-Evaluation

Judge and Bono (2001) Meta-Analysis

Corrected Correlations With

Core-Evaluation Trait Satisfaction Performance

Self-esteem .26 .26

Self-efficacy .45 .23

Internal locus of control .32 .22

Emotional stability .24 .19


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Personality

Meta-Analysis Results

Corrected Correlations With

Personality Trait Satisfaction Performance Turnover

Openness .02 .06 .10

Conscientiousness .26 .24 -.22

Extraversion .25 .09 -.04

Agreeableness .17 .12 -.27

Stability .29 .15 -.20


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What is Your Predisposition for Satisfaction?

Exercises 10.2, 10.3, 10.4


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Your Predisposition to be Satisfied

Interest Inventory

Life Satisfaction Measure

Core Self-Evaluation

self-esteem

locus of control

affectivity

Job Satisfaction History


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International Differences in Job SatisfactionSousa-Poza and Sousa-Poza (2000)

5.69 Denmark

5.66 Cyprus

5.47 Switzerland

5.45 Israel

5.43 Netherlands

5.40 Spain

5.34 United States

5.27 New Zealand 5.24 Sweden

5.22 Norway

5.18 Italy

5.17 Germany

5.17 Portugal

5.13 Great Britain

5.13 Czech Republic 5.09 France

5.05 Bulgaria

4.95 Slovenia

4.87 Japan

4.86 Russia

4.82 Hungary


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Dirty Jobs


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Discrepancy Theories

Have the employees expectations beenmet?

Realistic job previews (RJPs)

Is the employee a good fit?

Vocation

Job

Organization

Coworkers and supervisor

Have the employees needs, values and

wants been met? Maslows Needs Hierarchy

ERG Theory

Two-factor Theory


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Person-Organization Fit

Kristof-Brown et al. (2005) Meta-Analysis

Employee fit with

Attitude or Behavior Organization Group Supervisor Job

Satisfaction .44 .31 .44 .56

Commitment .51 .19 .09 .47

Performance .07 .19 .18 .20

Turnover - .14 - .08Turnover intent - .35 - .46

Absenteeism - .05


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Basic Biological Needs

Maslows Need Hierarchy

Safety Needs

Social Needs

Ego Needs

Self-Actualization

Needs


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ERG Theory

Growth

Relatedness

Existence


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Two-Factor Theory Motivators

responsibility

challenge

job control

Hygiene factors

paybenefits

coworkers


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Job Facets

Are the tasks enjoyable?

Do the employees enjoy

working with theirsupervisors and

coworkers?

Are coworkers outwardly

unhappy


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Are Rewards And Resources

Given Equitably? Equity Theory

Components

inputs

outputs

input/output ratio

Possible Situations

underpayment

overpayment

equal payment


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Organizational Justice

Distributive justice

Procedural justice Interactional justice


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Correlations with Perceptions of JusticeColquitt, Conlon, Wesson, Porter, and Ng (2001)

Outcome Procedural

Justice

Distributive

Justice

Job satisfaction .62 .56

Organizational commitment .57 .51

Trust .61 .51

Withdrawal - .46 - .50Performance .36 .15

Negative employee reactions - .31 - .30


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Is There a Chance for Growth

and Challenge?

Enriched jobs

Variety of skills needed

Employee completes entire task

Tasks have meaning

Employee has input/control

employee receives feedback

Methods

Job rotation

Job enlargement

Job enrichment


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Increasing Job Satisfaction

Hire SatisfiedEmployees

Eliminate Dissatisfiers

Express appreciation and provide proper feedback

Increase opportunities to socialize

Hold special events and friendly competitions

Increase humor

Have surprises Assign the right tasks to the right people


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Hire Satisfied Employees

Test for Satisfaction Potential

Interest inventory

Core self-evaluation

Satisfaction history

Provide a realistic job preview

Look for person-organization fit


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Eliminate Dissatisfiers

Interpersonal conflict

Peers

Supervisors

Customers

Inequity

Low pay

Job security

Poor working conditions

Work schedule issues


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Hold Special Events and

Friendly Competitions Casual or spirit days

Increase socialization

through parties, picnics,and socials

Hold fun contests

Celebrate birthdays and

special occasions

Encourage humor


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Express Appreciation and

Provide Proper Feedback

Liberal use of praise and

thanks

Positive feedback Service and performance

awards

_________________ _________________

_________________


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Increase Opportunities to

Socialize Picnics

Lunches

_______________ _______________

_______________

_______________ _______________


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Hold Special Events and Friendly

Competitions

Casual days

Company logo day

________________

________________

________________

________________


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Increase Humor

Bulletin boards with humor

Attach cartoons to boring

memos

________________

________________

________________


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Have Surprises

Order lunch for everyone

Let everyone leave an

hour early

__________________

__________________

__________________ __________________


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Assign the Right Tasks to

the Right People

People have different

interests

People have different

skills


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Dream Jobs


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Measuring Job Satisfaction

Faces Scale

Job Descriptive Index (JDI)

Minnesota SatisfactionQuestionnaire

Job in General Scale

Nagy Satisfaction Scale Custom designed inventories


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Measuring Commitment

Allen and Myer Survey

Organizational Commitment Questionnaire

Organizational Commitment Scale


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Exercise 10.5

Case Study


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Year Cost ofAbsenteeism

U. S. Absenteeism Rate

CCH Survey BNA Survey

2007 2.30

2006 2.50

2005 $660 2.30

2004 $610 2.40 1.402003 $645 1.90 1.60

2002 $789 2.10 1.60

2001 $755 2.20 1.70

2000 $610 2.10 1.70

1998 $757 3.25 1.60

1996 $603 2.80 1.60


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International Differences Nutreco (2000)

Country Absenteeism Rate (%)

Canada 1.6

Ireland 1.9

Poland 2.3Chile 2.7

United Kingdom 3.2

Spain 3.8

France 4.0

Belgium 6.3

Norway 7.2

Netherlands 7.8


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Reason for Missing Work (CCH Survey)

Year Illness Stress PersonalNeeds FamilyIssues Sense ofEntitlement

2007 34 13 18 22 13

2006 35 12 18 24 11

2005 35 12 18 21 14

2004 38 11 18 23 10

2003 36 11 18 22 13

2002 33 12 21 24 10

2000 40 5 20 21 14

1998 20 16 24 21 19

1996 28 11 20 26 15


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Actual Employee Excuses for Missing Work

I was sprayed by a skunk. I tripped over my dog and was knocked unconscious. My bus broke down and was held up by robbers.

I was arrested as a result of mistaken identity.

I forgot to come back to work after lunch. I couldnt find my shoes.

I hurt myself bowling. I was spit on by a venomous snake.

I totaled my wifes jeep in a collision with a cow.

A hitman was looking for me. My curlers burned my hair and I had to go to the hairdresser

I eloped.

My cat unplugged my alarm clock.

I had to be there for my husbands grand jury trial.

I had to ship my grandmothers bones to India. (note: she had passed away 20years ago)

Source: 2004 CareerBuilder.Com Survey


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Why Employees Are Absent

No consequences for

attending or missing work

Illness and personalproblems

Individual differences

Unique events


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Increasing Attendance by Having

Consequences for Missing Work

Rewards for Attending

Financial incentives

Well pay

Games

Financial bonuses

Paid Time-off Programs

Recognition programs

Discipline for Not Attending

Clear Policy and Record Keeping


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Increasing Attendance by

Reducing Employee Stress

Overload

Conflictpeers

supervisors

Boredom

Safety Issues


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Increasing Attendance by

Reducing Illness


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Types of Wellness Programs

SHRM 2008 SurveyWellness Program % Offering

Some form of wellness program 58

24-hour nurse line 50

Health screening programs 41

Smoking cessation program 40

Weight loss program 31

On-site fitness center 21Stress reduction programs 14

On-site medical care 12


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Effect of Absence Control Methods

Meta-Analysis ResultsAbsence Control Method # of Studies Effect Size

Well pay 4 .86

Flextime 10 .59Compressed work schedules 5 .44

Wellness programs 10 .37

Feedback 3 .37

Discipline 9 .36

Recognition 6 .30

Financial incentives 7 .17

Games 6 .08


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CCH Absence Control Surveys

Absence Control

Method

Percent Using Effectiveness Rating

2003 2005 2007 2003 2005 2007

Disciplinary action 96 90 89 3.3 3.4 3.4

Performance appraisal 84 79 82 2.9 3.0 2.9Verification of illness 75 76 74 2.9 3.2 3.2

Paid leave bank 59 67 60 3.6 3.5 3.6

Personal recognition 62 66 57 2.5 2.6 2.6

No-fault systems 62 63 59 3.0 3.0 2.9

Bonus programs 52 57 51 3.1 3.3 3.3

Buy-back programs 548 58 53 3.3 3.5 3.4

2010 C L i


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Exercise 10.6 Case Study

2010 C L i


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Why Do Employees Leave?

Unavoidable Reasons

school ends

job transfer

illness

family issues

Advancement

more responsibility

better pay

Unmet Needs

Escape From

people

management

coworkers

customers

working conditions

stress

Unmet Expectations

organization

job

career



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Why Are Your Employees

Leaving?

Exit Interviews

Attitude Surveys

Salary Surveys

pay

benefits

time off



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The Cost of Turnover

Visible Costs Per Hire

Advertising charges

Agency fees

Referral bonuses

Staff time & benefits

processing applications

interviewing

Overhead

Travel Costs

staff

applicants

Relocation Costs

Miscellaneous Costs



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The Cost of Turnover

Hidden Costs Loss of Productivity

employee leaving

other employees vacant position

new employee (1 year)

Inefficiency

Overtime

Training Costs



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Estimating the Cost of Turnover

Industry Norms

rate is 1.4% per month

cost is 1.5 times salary

Custom Statistics

www.advantagehiring.com/calculators/calc_turnover.shtml

www.uwex.edu/ces/cced/publicat/turn.html



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Financial Savings From

Turnover Reduction

Last Year

5 employees leave each

month (60 per year)

Average salary is

$20,000

Cost of turnover is 60

* $20,000 * 1.5 =$1,800,000

This Year

4 employees leave each

month (48 per year)

Average salary is

$20,000

Cost of turnover is 48

* $20,000 * 1.5 =$1,440,000

$360,000 saved through

reduced turnover



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Reducing Turnover

Compensation Issues

Match the market

Use job evaluation to

ensure internal equity

Offer retention/tenurebonuses (stay for pay)



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Increasing Salary and Benefits

Will only work if:

Employees are leaving due to

low compensation or benefits The turnover rate is high

The salary increase will be a

meaningful amount



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Reducing Turnover

Selection Issues Conduct realistic job previews

Look for person-organization fit

Study predictors of people who leave



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Reducing Turnover

Organizational Issues Provide training

Show appreciation

Mediate conflicts Meet employee needs

safety

social

growth



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Strategic Use of Benefits to

Attract and Retain Applicants

By Providing

Health care for

domestic partners Daycare benefits

Meal benefits

Paid time-off

Flexible schedules

Tuition/books

You Can Attract/Retain

Gay employees

Dual career families and

parents on public assistance

Students and retirees

Young people

Homemakers/parents

Students



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Applied Case Study: Reducing

Turnover at Bubba Gump Shrimp



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Focus on Ethics

Organizational Commitment



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What Do You Think?

Do you think that incentives are a form of bribery? If so,do you think its unethical for companies to do this?

What would keep you at a company for a longer period?Would incentives such as an Attendance Reward Program

or end of the year bonuses make a difference in whetheryou left a job?

Do you think that using such incentives is a way forleaders to ignore what they should be doing to make things

better for the employees?

What are some other ethical dilemmas that might occur byoffering incentives to increase commitment or jobsatisfaction?

chap 10 - employee satisfaction (2)

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