COMM 292 Chapter Notes -Job Satisfaction, Organizational Commitment, Employee Engagement

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20 Nov 2012
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Chapter 3 OB: Values, attitudes and, diversity
Concepts or beliefs that guide how we make decisions about, and evaluations of, behaviours
and events.
Basic convictions that a specific mode of conduct or end-state of existence is personally or
socially preferable to an opposite or converse mode of conduct or end-state of existence.
Two frameworks for understanding values
Milton Rokeach’s value survey
Kent Hodgson’s general moral principles
Types of values
Terminal: goals that individuals would like to achieve during their lifetime
Instrumental: preferable ways of behaving
Importance of values
Values generally influence attitudes and behaviour.
The study of moral values or principles that guide our behaviour, and inform us whether our
actions are right or wrong.
Ethical values are related to moral judgments about right and wrong.
Hofstede’s Framework for Assessing Culture:
Power Distance: extent to which society accepts unequal distribution of power.
Individualism vs. Collectivism: degree to which ppl act as invdividuals vs. members of a
Masculinity vs. Femininity: degree to which cultures favour traditional masculine roles vs. a
culture that treats women as equals (high femininity rating)
Uncertainty Avoidance: extent to which culture feels threatened by ambiguity/uncertainty
Long Term vs. Short Term Orientation: valuing behaviours that give future rewards vs.
current rewards.
South American nations tend to be higher on uncertainty avoidance and asian countries ten to
have long term orientation
GLOBE framework for assessing cultures – GLOBE dimensions are as follows: Assertiveness,
Future orientation, Gender differentiation, Uncertainty avoidance, Power distance,
Individualism/Collectivism, In-group collectivism (collectivism in small groups like family etc.
rather than a general societal collectivism), Performance orientation, Humane orientation.
GLOBE added dimensions such as humane orientation and performance orientation to
Hofstede’s dimensions
Values in the Canadian Workplace: Generational Differences (reflect societal values of the period
in which they grew up), Cultural Differences
Attitudes: Positive or negative feelings concerning objects, people, or events; Attitudes are less
stable than values; they are responses to situations and are thus not values(which are concrete
regardless of situation)
Three important attitudes affect organizational performance:
Job satisfaction: general attitude toward job
Organizational commitment: A state in which an employee identifies with a particular
organization and its goals, and wishes to maintain membership in the organization
Employee engagement
Key sources of Job Satisfaction:
Work itself, pay, advancement opportunities, supervision, co-workers
Enjoying the work itself is almost always most strongly correlated with high levels of job
Once a person reaches the level of comfortable living the relationship between pay and
satisfaction virtually disappears.
People with positive core self-evaluations , believe in their inner worth and basic competence,
and are more satisfied with their work.
Satisfaction affects: Individual productivity, Organizational productivity, Organizational citizenship
behaviour (OCB = discretionary behaviour that is not part of an employee’s formal job requirements,
but that nevertheless promotes the effective functioning of the organization), Job satisfaction and
customer satisfaction Employee satisfaction is related to positive customer outcomes.
Many managers are not concerned with job satisfaction measures. Many other managers overestimate
the job satisfaction of their employees
Organizational Commitment:
Affective commitment: An individual’s relationship to the organization.
Normative commitment: The obligation an individual feels to staying with an organization.
Continuance commitment: An individual’s calculation that it is in his or her best interest to
stay with the organization based on the perceived costs of leaving it.
Employee Engagement
An individual’s involvement with, satisfaction with, and enthusiasm for work he or she does.
Highly engaged employees have a passion for their work and feel a deep connection to the
Firms that have employees with a higher level of engagement tend to see positive results:
Higher customer satisfaction, More productive employees, Higher profits, Lower levels of
turnover and accidents
Managing Diversity in the workplace: there is little research showing that values can be changed
successfully thus workplaces try to address diversity through education aimed at changing attitudes;
due to generational differences in the workforce tensions over diversity initiatives in the workplace
might last a long time
Cultural Intelligence: The ability to understand someone’s unfamiliar and ambiguous gestures in the
same way as would people from his or her culture.
Individuals with high cognitive CQ look for clues to help them identify a culture’s norms
Individuals with high physical CQ learn the customs, mannerisms and gestures of those from
other cultures and act like them
Individuals with high emotional/motivational CQ believe they are capable of understanding
other culture and will continue to try to do so regardless of obstacles
Chapter 5 OB: Motivation in Action
Creating Effective Reward Systems – Employee Recognition: Employee recognition programs use
multiple sources and recognize both individual and group accomplishments; recognizing an
employee’s superior performance often costs little or no money
What to Pay: Establishing a Pay Structure:
Setting pay levels requires a balance between external and internal equity:Internal Equity: the
worth of the job to the organization (job evaluation). External Equity: the competitiveness of
an organization’s pay relative to industry standards
Setting pay levels (above, at, or below market rates) is a key strategic decision with important
Many firms are moving towards Variable-Pay Programs: A portion of an employee’s pay is based on
some individual and/or organizational measure of performance.
Individual-based: Piece-rate wages, merit-based pay, bonuses (One-time rewards for defined
work rather than ongoing entitlements), skill-based pay
Group-based: Gainsharing (Focus on productivity gains; Improvements in group productivity
determine the rewards to be shared.)
Organizational-based: Profit sharing, Employee stock ownership plans (ESOPs)
More common among non-unionized companies
It turns part of the organization’s fixed labour costs into variable cost thus reducing expenses
when performance declines.
Sometimes the pay-raise pool/fund fluctuates based on economis conditions or other factors
that have little to do with performance – limitation of merit pay
What constitutes performance and how is it measured?
Other barriers to performance-based pay:
Rate of inflation raises
Salary scales keyed to competitors
Traditional compensation systems
Appraisal practices that inflate evaluations and expectations
Skill-based pay helps to increase workforce flexibility
Filling staffing needs is easier when employee skills are interchangeable
Communication can also be improved
On the other hand skill-based pay can lead to problems
Does not address the level of performance
Employees may acquire skills for which there is no immediate need.
A Flexible Benefits plan permits each employee to create a package to suit their individual needs