Chapter 7.docx

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Western University
Management and Organizational Studies
Management and Organizational Studies 4485F/G
Linda Eligh

Chapter 7Managing Employee Engagement and Performance IntroductionNot every executive understands the need to generate the satisfaction and loyalty among employees o Retention rates among employees are related to retention rates among customers o Direct link between retention rate and sales growth o Routinely outperform their competition o Job satisfaction and retention are also related to organizational performanceFocus on avoiding voluntary turnover o Turnover initiated by employees often whom the company would prefer to keepIdentifying and retaining key performersWillingness to pursue involuntary turnover o Turnover initiated by the organization often among people who would prefer to stay o One of the key ways of retaining productive workers is making sure they are not being made miserable by coworkers who are unproductive or disruptive Driving Engagement Preventing Voluntary TurnoverAT organizational level turnover results in lowered work unit performance in turn harms the firms financial performance o Especially when organization is losing its top performers o In organizations that rely on teams or longterm customer contacts the loss of workers who are central to employee teams or customer networks can be especially disruptiveReplacing workers is an expensive undertaking o Costs 50000 for professional 2500 for clerical or manufacturing employees o Replacement costs are tip of the iceburg Process of Job WithdrawalEmployee engagement as the degree to which employees are fully involved in their work and the strength of their job and company commitmentJob withdrawal is a set of behaviours that dissatisfied individuals enact to avoid the work situationProgression of Withdrawal o Theory that dissatisfied individuals enact a set of behaviours in succession to avoid their work situation o Causes of job dissatisfactionjob dissatisfactionJob WithdrawalManiestationsWhen employees are unionized it can lead to an increased number of grievances being filedIf job conditions cannot be changed dissatisfied workers may attempt to solve the problem through physical withdrawalleaving the jobIf source of dissatisfaction relates to organizationwide policies lack of job security or belowmarket pay levels then turnover is likelyWhen unable to change their situation or quit they may psychologically disengage themselves from their jobs until a better opportunity comes alongIf primary dissatisfaction has to do with job itself may display a very low level of job involvement o If with organization may display a very low level of organizational commitment Job Satisfaction and Job WithdrawalJob Satisfaction A pleasurable feeling that results from the perception that ones job fulfills or allows for the fulfillment of ones important job values o Is a function of values o Emphasizes that different employees have different views of which values are importantOne might value pay most another may value opportunity to travel o Important aspect of job satisfaction is perceptionMay not be accurate of realityEach uses their own frame of reference Sources of Job DissatisfactionRecognition career opportunities compensation and benefitsRight to safe working conditions o Perception and reaction of the organizations own employees to the safety of their working conditions has implications for satisfaction retention and competitive advantage o These programs pay for themselves over timePay and Benefits o Pay is not only a source of income but an indicator of statusRelative to others in the organization or outside the organization o Reflection of selfworth o Satisfaction with benefits is another important dimension of overall pay satisfactionLink to organizations strategic directionSupervisors and Coworkers o Can be derived simply from congruence among supervisors and subordinates at one levelHow much they have in common o Social support is a strong predictor of job satisfaction and lower employee turnover o Employees can make it easier for employees to interactClose friends at work results in low turnoverTasks and roles of employees o Complexity of the task amount of flexibility value of employee puts on the task o Strong positive relationship between task complexity and job satisfactionRepetitive jobs are not challenging o Job EnrichmentThe process of enriching jobs that are boring repetitive or low in scope through interventions such as ensuring workers have opportunities for input into important organizational decisions involving their workIncreases job complexity or increases job scopeRoutinely found to reduce role conflict and ambiguity
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