COMMERCE 2BC3 Chapter Notes - Chapter 7: Specific Performance, Interactional Justice, Procedural Justice
4 Jul 2018
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Chapter 7
Driving Engagement: Preventing Voluntary Turnover
-Replacing worker is very expensive: 50K for managerial workers and 25k for clerical
-Voluntary Turnover: turnover initiated by employees (often whom the company would prefer to keep)
-Involuntary Turnover: turnover initiated by the organization (often among people who would prefer to stay)
-Process of Job Withdrawal
oProgression of Withdrawal: the theory that dissatisfied individuals enact a set of behaviours in succession to avoid
their work situation
oLack of work engagement begins when employees become dissatisfied with something and begin to withdraw
from the job in one way or another
oJob withdrawal is a set of behaviors that dissatisfied individuals enact to avoid the work situation
oDifferent manifestations of job withdrawal: behavior change, physical job withdrawal, and psychological job
withdrawal
oIt occurs as a progression of withdrawal: theory that dissatisfied individuals enact a set of behaviors in succession
to avoid their work situation
oOne might expect that an employee’s first response to dissatisfaction would be to try to change the conditions that
generate the dissatisfaction which can lead to, or cause change in, their behavior
oHowever if conditions cannot be changed, a dissatisfied worker may attempt to solve the problem through physical
withdrawal – leaving the job
oWhen dissatisfied are unable to change their situation or remove themselves physically from their jobs, they may
psychologically disengage themselves from their jobs until a better opportunity comes along
oIf the dissatisfaction is with the employer as a whole, the employee will display a low level of org commitment
-Job Satisfaction and Job Withdrawal
oJob satisfaction: a pleasurable feeling that results from the perception that one’s job fulfills or allows for the
fulfillment of one’s important job values
-Sources of Job Dissatisfaction
oSafe working conditions → if employees or applicants feel that their health or lives are at risk because of the job,
attracting and retaining will be impossible
oPay and Benefits
oSupervision and coworkers
oTasks and roles
▪There is strong positive relationship between task complexity and job satisfaction
▪Boredom is generated from simple repetitive tasks that don’t mentally challenge the worker leads to
dissatisfaction
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●One thing to reduce dissatisfaction is job enrichment, which increases job complexity
●Job Enrichment: the 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 work
●Another task based intervention is job rotation
▪Second critical aspect of work that affects satisfaction is the degree to which scheduling is flexible
▪Finally, the most important aspect of work in terms of generating satisfaction is the degree to which work is
meaningfully related to core values of the worker
●The term prosocial motivation is often used to explicitly to capture the degree to which people are motivated to
help other people
oWhen people believe that their work has an impact on other people, they are much more willing to work extra
hours
-Employee Engagement Survey
oAn ongoing program of employee survey research should be a prominent part of any HR strategy for a number of
reasons:
▪It allows a company to monitor trends over time and thus prevent problems in the area of voluntary turnover
before they happen
▪They provide a means of empirically assessing the impact of changes in policy or personnel on worker attitudes
▪When surveys incorporate standardized scales, they often allow the company to compare itself with others in the
same industry along these dimentions
oYou also have to survey ex employees to retain current employees → exit interviews can reveal the reasons people
are leaving and perhaps even set the stage for their later return when situation changes
Managing Performance
-Performance appraisal is now an annual ritual
-Some have argued that PA systems are flawed to the point that they are manipulative, abusive, autocratic, and
counterproductive
-An important part of PA is to establish employee goals which should be tied to the company’s strategic goals
-PA is only one part of the broader process of performance mgmt.
oPerformance mgmt.: the process through which managers ensure that employees’ activities and outputs are
congruent with the org’s goals
-Effective performance mgmt. system will have 3 parts: defining performance, measuring performance, and feeding
back performance info
oFirst, a performance mgmt. system specifies which aspects of performance are relevant to the org, primarily
thought job analysis
oSecond, it measures those aspects of performance through PA
oThird, it provides feedback to employees through performance feedback sessions so they can adjust their
performance to the org’s goals
An org model of performance mgmt.
-Performance Management: the means through which managers ensure that employees’ activities and outputs are
congruent with the organization’s goals
-For many years, the goal of PA systems was to measure individual employee performance reliably and validly
-This perspective however, tended to ignore some important influences on the PM process
-Individual’s attributes are the raw materials of performance, which can be transformed into objective results
through the employee’s behavior → employees can exhibit the right behaviors only if they have the necessary
KSAO
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-Another important component in our org model of the performance mgmt. system is the org’s strategy
oThe link between pm and the org’s strategy is often neglected
oDivisions departments work groups and individuals must align their activities with these strategies and goals. If
they aren’t aligned, likelihood of achieving goals becomes small
▪How is this link made in orgs? Primarily by specifying what needs to be accomplished and what behaviors must be
exhibited for the company’s strategy to be implemented
▪This link is being recognized as necessary more and more often through the increasing popularity of performance
planning and evaluation systems
●Seek to tie the formal PA process to the company’s strategies by specifying at the beginning of the evaluation
period the types and levels of performance that must be accomplished to achieve the strategy Then at the end
individuals are evaluated based on how closely their actual performance met the performance plan
-Our model also notes that situational constraints are always at work within the performance mgmt. system
oSometimes the org culture discourages the employee from doing effective things
▪Workgroup norms often dictate what the group members do and the results they produce
-Performance Feedback: the process of providing employees with information regarding their performance
effectiveness
Purposes of Performance mgmt.
-There are 3 purposes of PM systems: strategic, administrative, and developmental
-Firstly, the PM should link employee activities with the org’s goals
-Secondly, orgs use PM info in many administrative decisions: salary administration, promotions,
retention/termination, layoffs, and recognition of individual performance
-Thirdly, to develop those who are ineffective at their jobs
oFeedback given during Performance evaluation process often pinpoints the employees’ weaknesses and even the
causes of the deficiencies
The Practice of Performance Management
-Several recent surveys of human resource professionals suggest that most companies’ performance management
practices require annual paper-driven reviews that include both behaviours and business goals
-Less than 25% use PM to help manage talent through identifying training needs and developing leadership talent
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Document Summary
Replacing worker is very expensive: 50k for managerial workers and 25k for clerical. Voluntary turnover: turnover initiated by employees (often whom the company would prefer to keep) Involuntary turnover: turnover initiated by the organization (often among people who would prefer to stay) Job satisfaction and job withdrawal: job satisfaction: a pleasurable feeling that results from the perception that one"s job fulfills or allows for the fulfillment of one"s important job values. There is strong positive relationship between task complexity and job satisfaction. Boredom is generated from simple repetitive tasks that don"t mentally challenge the worker leads to dissatisfaction. One thing to reduce dissatisfaction is job enrichment, which increases job complexity. Job enrichment: the 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 work. Another task based intervention is job rotation.
