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Engagement and Culture 1 Engagement Surveys & Culture Assessment Models and Measurement Michael J. Walk.

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1 Engagement and Culture 1 Engagement Surveys & Culture Assessment Models and Measurement Michael J. Walk

2 2Engagement and Culture Learning Objectives Define and give examples of employee engagement Define and give examples of employee engagement Define and give examples of organizational culture Define and give examples of organizational culture Explain some of the business outcomes of engagement and culture Explain some of the business outcomes of engagement and culture Explain at least one model of engagement and culture Explain at least one model of engagement and culture Explain the typical methods used to measure engagement and culture Explain the typical methods used to measure engagement and culture

3 Engagement and Culture 3 Employee Engagement

4 4Engagement and Culture Definitions Scholarly background: Scholarly background: Kahn (1990): “the simultaneous employment and expression of a person’s ‘preferred self’ in task behaviors that promote connections to work and to others, personal presence,…and active, full performances ” Kahn (1990): “the simultaneous employment and expression of a person’s ‘preferred self’ in task behaviors that promote connections to work and to others, personal presence,…and active, full performances ”

5 5Engagement and Culture Definitions Current Definitions Current Definitions “A positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption.” (Encyclopedia of Industrial/Organizational Psychology) “A positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption.” (Encyclopedia of Industrial/Organizational Psychology) “The level of commitment and involvement an employee has toward their organization and its values.” (AlphaMeasure) “The level of commitment and involvement an employee has toward their organization and its values.” (AlphaMeasure) “Engagement is the state of emotional and intellectual involvement that employees demonstrate at work.” (Hewitt Associates) “Engagement is the state of emotional and intellectual involvement that employees demonstrate at work.” (Hewitt Associates)

6 6Engagement and Culture What Engagement ISN’T Employee Satisfaction: Employee Satisfaction: only deals with how employees feel about their current environments only deals with how employees feel about their current environments Organizational Commitment: Organizational Commitment: only deals with employees’ desires to stay only deals with employees’ desires to stay

7 7Engagement and Culture Behaviors & Outcomes of Engagement Increased performance More likely to treat customers in ways that positively influence customer satisfaction Willing to give extra effort when needed Improves customer loyalty through improving the service climate (Agut & Peiró, 2005)

8 8Engagement and Culture Bottom-Line Outcomes Source: Towers Perrin

9 9Engagement and Culture More Outcomes High job-satisfaction High job-satisfaction Low absenteeism Low absenteeism Increased loyalty Increased loyalty Lower costs of recruiting, hiring, training, developing Lower costs of recruiting, hiring, training, developing

10 10Engagement and Culture Consequences of Disengagement Disengaged employees Disengaged employees Miss an average of 3.5 more days per year Miss an average of 3.5 more days per year Less productive / Diminished performance Less productive / Diminished performance Lower morale Lower morale High turnover = Training dollars lost High turnover = Training dollars lost Cost the US economy $292 to $355 billion per year (Financial News, March 2001) Cost the US economy $292 to $355 billion per year (Financial News, March 2001)

11 11Engagement and Culture Current Levels of Engagement (2003) Gallup conducted international survey measuring employee engagement (2003) Gallup conducted international survey measuring employee engagement

12 12Engagement and Culture Current Levels of Engagement (2) France: France: Disengaged workforce (31%) costs between 79 – 104 billion Euros annually! Disengaged workforce (31%) costs between 79 – 104 billion Euros annually! At today’s exchange: $109 - $144 billion At today’s exchange: $109 - $144 billion USA: 27% are actively engaged, 17% disengaged USA: 27% are actively engaged, 17% disengaged

13 13Engagement and Culture Models of Engagement No Universal Model of Engagement No Universal Model of Engagement Some plausible options include: Some plausible options include: 3-Behaviors 3-Behaviors 3-Modes 3-Modes 3-Needs 3-Needs 3-Concepts 3-Concepts

14 14Engagement and Culture Models of Engagement (1) 3 Behaviors (Hewitt Associates, AlphaMeasure) 3 Behaviors (Hewitt Associates, AlphaMeasure) Say: Consistently speak positively about the organization to coworkers, potential employees, and customers Say: Consistently speak positively about the organization to coworkers, potential employees, and customers Stay: Have an intense desire to be part of the organization Stay: Have an intense desire to be part of the organization Strive: Exert extra effort and engage in behaviors that contribute to business success Strive: Exert extra effort and engage in behaviors that contribute to business success

15 15Engagement and Culture Models of Engagement (2) 3 Modes (Towers Perrin) 3 Modes (Towers Perrin) Cognitive (think): Logical evaluation of the company’s goals and values. Cognitive (think): Logical evaluation of the company’s goals and values. Affective (feel): Whether employees have a sense of belong and pride in the company. Affective (feel): Whether employees have a sense of belong and pride in the company. Behavioral (act): Retention, willingness to “go the extra distance.” Behavioral (act): Retention, willingness to “go the extra distance.”

16 16Engagement and Culture Models of Engagement (3) 3-Tiered Structure of Needs (Accord Management) 3-Tiered Structure of Needs (Accord Management) Basic: fundamental to job Basic: fundamental to job safety, team, competent supervisor, tools/equip, basic skills, valued, respected, fair, enjoy work safety, team, competent supervisor, tools/equip, basic skills, valued, respected, fair, enjoy work Intermediate: growth and development needs Intermediate: growth and development needs development, encouragement, sense of belonging, personal fulfillment, adequate compensation development, encouragement, sense of belonging, personal fulfillment, adequate compensation Advanced: org commitment needs Advanced: org commitment needs customer focus, org growth and success, value diversity, belief in compete strategy customer focus, org growth and success, value diversity, belief in compete strategy

17 17Engagement and Culture Models of Engagement (4) 3-Part Conceptual Model (Schaufeli, Salanova, Gonza´lez-Roma´, & Bakker, 2002) 3-Part Conceptual Model (Schaufeli, Salanova, Gonza´lez-Roma´, & Bakker, 2002) Vigor refers to high levels of energy and mental resilience while working, the willingness to invest effort in one’s work, and persistence even in the face of difficulties. Vigor refers to high levels of energy and mental resilience while working, the willingness to invest effort in one’s work, and persistence even in the face of difficulties. Dedication is characterized by a sense of significance, enthusiasm, inspiration, pride, and challenge at work. Dedication is characterized by a sense of significance, enthusiasm, inspiration, pride, and challenge at work. Absorption consists of being fully concentrated, happy, and deeply engrossed in one’s work whereby time passes quickly, and one has difficulty detaching oneself from work. Absorption consists of being fully concentrated, happy, and deeply engrossed in one’s work whereby time passes quickly, and one has difficulty detaching oneself from work.

18 18Engagement and Culture Measuring Engagement Model-contingencies Model-contingencies Measurement will vary depending on subscribed model. Measurement will vary depending on subscribed model. Most (if not all) measures are surveys/questionnaires Most (if not all) measures are surveys/questionnaires

19 19Engagement and Culture Examples of Measures Gallup’s Q 12 Gallup’s Q items 12 items Found to be predictive of business outcomes Found to be predictive of business outcomes Hewitt Associates Hewitt Associates 6 items 6 items Several other organization-specific instruments Several other organization-specific instruments Often accessible online Often accessible online

20 20Engagement and Culture Using the 3-Concept Model Work Engagement Scale Work Engagement Scale (Schaufeli, Salanova, Gonza´lez-Roma´, & Bakker, 2002) (Schaufeli, Salanova, Gonza´lez-Roma´, & Bakker, 2002) 17 items 17 items 6 items for Vigor 6 items for Vigor 5 items for Dedication 5 items for Dedication 6 items for Absorption 6 items for Absorption

21 21Engagement and Culture Let’s Try It for Ourselves Get into groups Get into groups Chose one of the models Chose one of the models Create 3 – 5 items Create 3 – 5 items You have 5 minutes You have 5 minutes 3-Behavior (say, stay, strive) 3-Behavior (say, stay, strive) 3-Mode (act, feel, think) 3-Mode (act, feel, think) 3-Needs (basic…advanced) 3-Needs (basic…advanced) 3-Concepts (vigor, dedication, absorption) 3-Concepts (vigor, dedication, absorption)

22 22Engagement and Culture Engagement Summary Many definitions – enjoyment of and attachment to work and organization Many definitions – enjoyment of and attachment to work and organization Valid construct – research links engagement to important business outcomes Valid construct – research links engagement to important business outcomes Many models – apply to different contexts and organizations Many models – apply to different contexts and organizations Measurement – done through surveys; multiple instruments Measurement – done through surveys; multiple instruments

23 Engagement and Culture 23 Culture Assessment

24 24Engagement and Culture Definitions  “Refers to the shared meaning, interpretations, and understanding of various organizational events among organizational members.  Serves as a guide to members to behave in ways shown to be effective over time;  adds a sense of predictability and order to uncertainties in the environment;  and provides a general understanding of how, when, and why members behave in certain ways.”  (Encyclopedia of I/O Psychology)

25 25Engagement and Culture routinized activities that build coordination logos, layouts, etc. provide predictability among members and identify acceptable and unacceptable behavior Models of Culture Denise Rousseau Denise Rousseau Multi-layered concept ranging from most accessible to least accessible. Multi-layered concept ranging from most accessible to least accessible. Assumptions Values / Beliefs Behavioral Norms Behavioral Patterns Material Artifacts the basic, fundamental assumptions that typically exist outside of conscious awareness preferences for various outcomes or behaviors and are generally conscious or espoused by organizational members

26 26Engagement and Culture Assumptions? Edgar Schein (1992) Edgar Schein (1992) A pattern of basic, largely unconscious assumptions that organizational members share. A pattern of basic, largely unconscious assumptions that organizational members share. These assumptions are learned over time as those behaviors effective at solving organizational issues with adapting to the external environment or with resolving internal conflict that have become to be internalized as the right way to do things here. These assumptions are learned over time as those behaviors effective at solving organizational issues with adapting to the external environment or with resolving internal conflict that have become to be internalized as the right way to do things here.

27 27Engagement and Culture Models of Culture (2) VIT Industrial Systems (Finland) VIT Industrial Systems (Finland) Culture: “a solution created by an organization for the demands set by the core task,” (Reiman, 2001; Reiman, & Norros, 2002). Culture: “a solution created by an organization for the demands set by the core task,” (Reiman, 2001; Reiman, & Norros, 2002). Core Task: “the essential content of some job or duty” Core Task: “the essential content of some job or duty”

28 Engagement and Culture 28 Models of Culture (2) VIT Industrial Systems

29 29Engagement and Culture Measuring Culture Model-contingencies Model-contingencies Measurement will vary depending on subscribed model. Measurement will vary depending on subscribed model. Surveys / Questionnaires Surveys / Questionnaires Qualitative Methods Qualitative Methods

30 30Engagement and Culture Culture Instruments Classified Into Two Types Classified Into Two Types Typing Surveys: classify organizations into mutually exclusive taxonomies (similar to MBTI), provide examples of typical cultures that match scores. Typing Surveys: classify organizations into mutually exclusive taxonomies (similar to MBTI), provide examples of typical cultures that match scores. Profile Surveys: assess organization on predetermined cultural dimensions. Profile Surveys: assess organization on predetermined cultural dimensions.

31 31Engagement and Culture Exercise on Types Academy: Academy: Baseball Team: Baseball Team: Club Culture: Club Culture: Fortress: Fortress: highly skilled, tend to stay, work up ranks, stable environment (e.g., universities, hospitals) highly skilled, tend to stay, work up ranks, stable environment (e.g., universities, hospitals) free agents—highly prized skills, high demand; fast-paced, high-risk (e.g., investment banking, advertising)free agents—highly prized skills, high demand; fast-paced, high-risk (e.g., investment banking, advertising) fit into the group; start at bottom and stay; promote from within (e.g., military, law firms)fit into the group; start at bottom and stay; promote from within (e.g., military, law firms) uncertain job security, massive reorganizations, opportunities for those with specialized skills (e.g., savings and loans, car companies, etc.)uncertain job security, massive reorganizations, opportunities for those with specialized skills (e.g., savings and loans, car companies, etc.) Source: Carter McNamara

32 32Engagement and Culture Instruments – Typing Surveys Organizational Culture Assessment Instrument (OCAI) Cameron & Quinn (1999) Dimensions of Culture: Dominant Characteristics Organizational Leadership Management of Employees Organizational Glue Strategic Emphasis Criteria for (judging) Success Types of Culture: Types of Culture: Hierarchy Culture Hierarchy Culture Market Culture Market Culture Clan Culture Clan Culture Adhocracy Culture Adhocracy Culture

33 33Engagement and Culture Instruments – Typing Surveys Organizational Culture Inventory (OCI) (Cooke & Lafferty, 1983) – published by Human Synergistics Types of Culture: Constructive Constructive Passive-Defensive Passive-Defensive Aggressive-Defensive Aggressive-Defensive 12 Normative Beliefs: Humanistic-Encouraging Humanistic-Encouraging Affiliative Affiliative Approval Approval Conventional Conventional Dependent Dependent Avoidance Avoidance Oppositional Oppositional Power Power Competitive Competitive Perfectionistic Perfectionistic Achievement Achievement Self-Actualizing Self-Actualizing

34 34Engagement and Culture Research with OCI Found that Constructive cultures have higher: Found that Constructive cultures have higher: member satisfaction, commitment, motivation, role clarity, intent to stay member satisfaction, commitment, motivation, role clarity, intent to stay group teamwork, unit-level quality group teamwork, unit-level quality organizational quality of service, safety and reliability, customer satisfaction, voluntary turnover, sales, profitability organizational quality of service, safety and reliability, customer satisfaction, voluntary turnover, sales, profitability

35 35Engagement and Culture Instruments – Other Resources Organizational Culture Instrument (van de Post & de Coning, et al., nd) Organizational Culture Instrument (van de Post & de Coning, et al., nd) 15 dimensions of culture (e.g., customer orientation, task structure, goal clarity, etc.) 15 dimensions of culture (e.g., customer orientation, task structure, goal clarity, etc.) Organizational Culture Survey (Glaser, Zamanou, & Hacker, 1987) Organizational Culture Survey (Glaser, Zamanou, & Hacker, 1987) 6 components (e.g., teamwork-conflict, information flow, etc.) 6 components (e.g., teamwork-conflict, information flow, etc.) Schweiger-Larkey Organizational Culture Index (SLOCI©) Schweiger-Larkey Organizational Culture Index (SLOCI©) 15 dimensions of culture (e.g., centralized vs. decentralized, conflict avoidance vs. conflict confrontation, etc.) 15 dimensions of culture (e.g., centralized vs. decentralized, conflict avoidance vs. conflict confrontation, etc.)

36 36Engagement and Culture Qualitative Methods Document Analysis Document Analysis Critical Incidents Critical Incidents Interviews / Focus Groups Interviews / Focus Groups (e.g., Yauch & Steudel, 2003) (e.g., Yauch & Steudel, 2003) Observations Observations Seminars / Workshops Seminars / Workshops

37 37Engagement and Culture Mixed Methods (VIT Industrial) Contextual Assessment of Organizational Culture Contextual Assessment of Organizational Culture The development of an organization’s operations requires an understanding of the overall dynamics (culture) of the organization’s activities, but also an assessment of the impact of culture on operational efficiency, which must be assessed on a case-by-case basis. The development of an organization’s operations requires an understanding of the overall dynamics (culture) of the organization’s activities, but also an assessment of the impact of culture on operational efficiency, which must be assessed on a case-by-case basis. Core-Task Analysis Core-Task Analysis studies and assesses work’s essential content and its critical demands studies and assesses work’s essential content and its critical demands how the demands manifest themselves in daily work how the demands manifest themselves in daily work what effect new content (e.g., pressures for change from environment) has on core task what effect new content (e.g., pressures for change from environment) has on core task

38 38Engagement and Culture Mixed Methods - Triangulation Best to combine quantitative instruments with qualitative methods Best to combine quantitative instruments with qualitative methods For example, Yauch & Steudel (2003) did all of the following: For example, Yauch & Steudel (2003) did all of the following: 1. Document review 2. Observation of meetings and workplaces 3. Group interviews with several levels 4. Administered OCI 5. Member checks to insure findings met member’s impressions 6. Third-party audit

39 39Engagement and Culture Culture Summary Many definitions – the beliefs, values, and norms generated out of an organization’s specific environment and context Many definitions – the beliefs, values, and norms generated out of an organization’s specific environment and context Theoretical concept – gaining new place in scholarly research Theoretical concept – gaining new place in scholarly research Many models – apply to different contexts and organizations Many models – apply to different contexts and organizations Measurement – done through surveys and qualitative methods Measurement – done through surveys and qualitative methods

40 40Engagement and Culture What are your questions?


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