chap 10 - employee satisfaction (2)
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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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Discrepancy Theories
ERG Theory
Growth
Relatedness
Existence
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Discrepancy Theories
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
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Exercise 10.6 Case Study
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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?
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