engaging and empowering ethical employees chapter ten

ENGAGING AND EMPOWERING ETHICAL EMPLOYEESChapter Ten

Chapter 10Learning ObjectivesDescribe how to engage employees at work

Manage three types of employees: go-getters, fence-sitters, and adversarials

Facilitate an Appreciative Inquiry workshop

Implement Open Book Management and a Scanlon-type gainsharing plan

Distribute financial improvements to all employees through profit sharing, stock options, employee stock ownership plans, and cooperativesChapter 10: Collins, Business Ethics

Extent of Employee EngagementOrganizations need talented employees committed to task performance, organizational goals, and the organization itself

Employee engagement is an emotional bond or attachment an employee has to the work task, organization, and its membersChapter 10: Collins, Business Ethics

Engaging EmployeesHuman NeedsAbraham Maslow differentiated five categories of needs every individual has: physiological, safety, social, self-esteem, and self-actualizationChapter 10: Collins, Business Ethics

Engaging EmployeesInsert Exhibit 10.1Chapter 10: Collins, Business Ethics

Engaging EmployeesJob SatisfactionFrederick Herzberg and his colleagues interviewed 203 accountants and engineers employed at various companies about their job satisfactions and dissatisfactions

Herzberg concludes that job satisfaction is not a linear conceptChapter 10: Collins, Business Ethics

Engaging EmployeesInsert Exhibit 10.2Chapter 10: Collins, Business Ethics

Engaging EmployeesOrganizational JusticeScholars distinguish among four forms of organizational justice: procedural, informational, interactional, and distributive justiceChapter 10: Collins, Business Ethics

Engaging EmployeesUnethical BulliesBullying is defined as repeated verbal abuse or abusive conduct that is threatening, humiliating, and intimidating and interferes with workChapter 10: Collins, Business Ethics

Engaging EmployeesMeaningful WorkMeaningful work is typically defined as spending time at work to achieve something that is personally desirable

Meaningfulness occurs when an employee exhibits passion for daily work activities and pride in accomplishmentsChapter 10: Collins, Business Ethics

Engaging EmployeesInsert Exhibit 10.3Chapter 10: Collins, Business Ethics

Engaging EmployeesMeasuring Employee EngagementAccording to Buckingham and Coffmans analysis of Gallup interviews, excellent front-line managers had engaged their employees and these engaged employees had provided the foundation for top performanceChapter 10: Collins, Business Ethics

Engaging EmployeesInsert Exhibit 10.4Chapter 10: Collins, Business Ethics

Engaging EmployeesInsert Exhibit 10.4Chapter 10: Collins, Business Ethics

Employee EmpowermentEmpowerment refers to giving employees decision-making authority, which can be further solidified with an ownership stake in the organizationChapter 10: Collins, Business Ethics

Employee EmpowermentWho to Empower?Many organizations have three types of employees in terms of workplace attitudes and behaviors:Go-getters, who are fully engaged with the work experienceFence-sitters, who put in a good days work for a good days payAdversarials, who have an unfavorable attitude to both the nature of work and authorityChapter 10: Collins, Business Ethics

Employee EmpowermentInsert Exhibit 10.5Chapter 10: Collins, Business Ethics

Employee EmpowermentMeasuring a Managers Empowerment BehaviorsEmpowered employees develop the mindset of a manager by taking on some managerial responsibilities and accountabilitiesChapter 10: Collins, Business Ethics

Employee EmpowermentInsert exhibit 10.6Chapter 10: Collins, Business Ethics

Empowering Through TeamsEmpowering Effective TeamsPatrick Lencioni: Ineffective teams suffer from five dysfunctions: absence of trust, fear of conflict, lack of commitment, avoidance of accountability, and inattention to collective results

The most effective teams consist of members who trust one another, engage in constructive conflict, personally commit to goal accomplishment, are accountable for their behaviors, and focus on collectively achieving their assigned tasksChapter 10: Collins, Business Ethics

Empowering Through TeamsThe Team Problem-solving ProcessPresent the problemDefine individual solutionsPresent individual solutionsClarify individual solutionsBrainstormGroup and prioritize solutionsPlay devils advocateImplement and monitorChapter 10: Collins, Business Ethics

Empowering Through TeamsOpen Book ManagementTransparency is an essential element of trust building

The information shared could include balance sheets, revenue, profit, cost of goods, customer returns, on-time shipmentsChapter 10: Collins, Business Ethics

Empowering Through TeamsInsert Tips and Techniques Open Book ManagementChapter 10: Collins, Business Ethics

Empowering Through TeamsAppreciative Inquiry: Team-based management technique that focuses on the strengths of both the employee and the organizationChapter 10: Collins, Business Ethics

Empowering Through TeamsAppreciative Inquiry is a four-phase processDiscoverDreamDesignDestiny Chapter 10: Collins, Business Ethics

Empowering Through TeamsDaily Performance ReflectionsSet aside 10 to 15 minutes at the end of every day for teams to process the events that occurred during the day and make preparations for managing any ongoing problems the following dayChapter 10: Collins, Business Ethics

Empowering Through Group-Based Financial IncentivesScanlon-Type Gainsharing PlansThe five elements of a Scanlon-type gainsharing plan are a gainsharing coordinator, suggestion system, gainsharing team, review board, and group-based financial bonusChapter 10: Collins, Business Ethics

Empowering Through Group-Based Financial IncentivesProfit SharingProviding employees with a share of company profits is also ethical, motivating, and empowering

When the company does well, the employees benefit financiallyChapter 10: Collins, Business Ethics

Empowering Through Group-Based Financial IncentivesStock Option and Stock Purchase PlansStock options give an employee the right to purchase a specific number of company shares at a fixed price by a particular future date, typically 10 yearsChapter 10: Collins, Business Ethics

Empowering Through Group-Based Financial IncentivesEmployee Stock Option Plans (ESOPs)The company gives all full-time employees over the age of 21 a significant equity stake in the company

ESOPs are complex financial vehicles requiring legal assistanceChapter 10: Collins, Business Ethics

Empowering Through Group-Based Financial IncentivesCooperativesProducer, consumer, and employee cooperatives are an alternative communal way to govern a business and raise capitalChapter 10: Collins, Business Ethics

Strong linkage exists between ethical organizations and employee engagement

Engaged employees are more likely to report ethical misconduct

2009 Gallup Organization reported that only 30% of American workers are engaged in their jobs. Approximately 52% were not engaged, and 18% were actively disengaged

2008 Kelly Services surveyed 100,000 people in 34 countries about work-related issues. Approximately half of the survey respondents replied that they would be willing to sacrifice status and pay for more meaningful work*Individuals first seek to fulfill lower-level needs beginning with physiological needs

An engaged employee is typically fulfilling the three highest=level needs-social, self-esteem, and self-actualization-at work*

*Factors contributing to job satisfaction are separate and distinct from factors contributing to job dissatisfaction

motivation factors, are related to what people do at work

Job dissatisfaction factors, which Herzberg called hygiene factors, are related to a bad working environment*Procedural Justice: decision-making procedures are fair. Employees can provide input

Informational Justice: information is conveyed fairly. Employees receive relevant and accurate information in a timely manner

Interactional Justice: Employees treat each other fairly. Employees are treated with dignity by supervisors, peers, and subordinates

Distributive Justice: The distribution of outcomes is fair. Pay, benefits, promotions, and workloads reflect individual capabilities and efforts

Unjust managers inspire deviant and retaliatory behaviors from employees, including production disruptions, theft, and violence*Workplace Bullying Institute: 37% of the respondents had been bullied at work and 13% were being bullied at the time of the survey

Immediate supervisors were the most predominant group of bullies

Bullying behaviors often go unreported because bullies tend to be formal (if boss) or informal (if peer) leader

Workplace bullying legislation has been proposed in nearly one-third of all states*The job fits the employees concept of self, and interpersonal work relationships are rewarding*Four sources of meaningful work:Serving othersUnity with othersDeveloping and becoming selfExpressing ones full potential*Empower go-getters and groom them for managerial positions

Empower fence-sitters only under restricted conditions. Challenge fence-sitters by continually increasing performance expectations

Do not empower adversarial employees. Instead, confront and discipline them*Trust serves as the foundation for effective team performance

Trust building begins with the work units manager

Employees who trust one another are psychological