Employee Attitudes and Their Effects Chapter Nine Employee Attitudes and Their Effects ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Introduction Negative attitudes are: A symptom of underlying problems A contributing cause of forthcoming difficulties Linked to reduced organizational competitiveness A key challenge is dealing with employees who have developed an attitude of entitlement ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

The Nature of Employee Attitudes Attitudes affect perceptions Perceptions affect attitudes Employee predispositions Positive affectivity Negative affectivity ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Job Satisfaction Elements Feelings, thoughts, and intentions Individual Focus Job satisfaction is an individual’s attitude Moral is group satisfaction Elements of Job Satisfaction Overall attitude or can apply to various parts of an individual’s job Job-related attitudes predispose an employee to behave in certain ways ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Job Satisfaction Stability of Job Satisfaction Attitudes are acquired over time Satisfaction can vary and can decline more quickly than it is developed Environmental Impact (spillover effect) Off-the-job environment indirectly influences feelings on the job Job satisfaction influences general life satisfaction ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Job Involvement The degree to which employees: Immerse themselves in their jobs Invest time and energy in them View work as a central part of their overall lives ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Organizational Commitment Employees can choose to be involved, committed, and positive Commitment is stronger among: Longer-term employees Those with personal success in the organization Those working within a committed group Organizationally committed employees: Have good attendance Adhere to company policies Have lower turnover rates ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Organizational Commitment Inhibiting Factors Excessive blaming Insincere gratitude Failure to follow through Inconsistencies and incongruities Inflated egos and bullying ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Organizational Commitment Stimulating Factors Clarity of rules and policies Investments in employees Respect and appreciation for efforts Employee participation and autonomy Making employees feel valued ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Work Moods Variable, highly dynamic attitudes toward a job Positive moods produce energy, passion, vitality, and enthusiasm Results in better customer service, lower absenteeism, greater creativity, and interpersonal cooperation Work moods are directly affected by managerial actions Praise, fun atmosphere, pleasant surroundings, social interaction ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Effects of Employee Attitudes Dissatisfied employees engage in: Psychological withdrawal Physical withdrawal Aggression Satisfied employees: Go beyond the call of duty Have good work records Actively pursue excellence ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Employee Performance High satisfaction does not guarantee high performance ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Turnover Negative effects of turnover: Separation costs Training costs Vacancy and replacement costs Morale effects Functional effects of turnover: More opportunities for internal promotion Removal of disruptive employees Infusion of expertise from new employees Satisfied employees are less likely to quit ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Products of Employee-Organization Attitudes ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Absences and Tardiness Employees with low job satisfaction are absent more often Tardiness is short-term absenteeism A pattern of tardiness is often a symptom of negative attitudes Presenteeism Working when you shouldn’t be Reduces productivity by 33 percent or more ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Theft Acts of Theft Using company services without authorization Fraud Unauthorized removal of company resources Causes Reestablishing lost equity Revenge for ill treatment Severe dissatisfaction ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Bending the Rules Intentionally interpreting organizational policies to obtain personal gain Often committed by dissatisfied employees ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Violence One of the most extreme consequences of employee dissatisfaction Millions of workers are victims annually Many more live under the direct or perceived threat of harm Cost to U.S. businesses is $36 billion per year Work stress can be both a cause of violence and the aftermath of it ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Other Effects of Attitudes Negative Effects Low productivity, turnover, absenteeism, tardiness, theft, and violence Positive Effects Organizational citizenship behaviors “Good Soldier” Motivation Personality traits Desire for special recognition or rewards Image enhancement ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Studying Job Satisfaction A job satisfaction survey can: Identify broad employee problems Indicate levels of satisfaction Pinpoint problem areas in jobs or groups Improve the flow of communication Serve as an emotional release Identify training needs Help managers plan and monitor new programs ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Ideal Survey Conditions Desired Prerequisites Top management support Employees are involved in survey planning Past surveys produced noticeable changes A clear objective exists Study standards are consistent with sound research Management is willing/able to follow-up Both the results and action plans are communicated to employees ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Other Job Satisfaction Information Daily Contacts and Existing Data ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Survey Design and Follow-Up ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Types of Survey Questions Closed-end Questions Easy to administers Does not give employees a full opportunity to express themselves Open-end Questions Permits employees to express feelings, thoughts, and intentions fully Makes stronger impression on management Can be directed or undirected ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Critical Issues Reliability Capacity to produce consistent results, regardless of who administers it Validity The capacity to measure what they claim to measure Response Rates Improve with short time period, periodic reminders, keeping form short and easy-to-understand, offering incentive ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Using Survey Information Communicate the results Use comparative data to spur competition Set up committee to do review and follow-up Feed results back to employees Take action on results ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Changing Employee Attitudes Tie rewards to performance Set challenging goals Define clear expectations Use active listening skills Provide frequent feedback regarding performance Show concern for employee feelings Allow employees to participate in decision making Show appreciation for effort and citizenship Provide new data Have co-workers share their attitudes ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Issues Between Organizations and Individuals Chapter Ten Issues Between Organizations and Individuals ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Legitimate Organizational Influence Every organization develops policies and requirements for performance If the organization and an individual define the boundaries of legitimate influence differently, conflict is likely Areas of Organizational Influence Job conduct (high legitimacy) Personal activities off the job (low legitimacy) ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Legitimacy of Organizational Influence Model ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Off-the-Job Conduct The power of business to regulate employee conduct off the job is limited The more job-related the conduct is, the more support there is for organizational influence Current Issues Surveillance Substance abuse Genetic screening Office romances Feelings of territoriality Assessments of ethical values ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Rights of Privacy Areas that employees, customers, and others believe should be off limits: Religious, political, and social beliefs Personal acts and conversations Non-business locations Personal-use locations in a business, such as rest rooms ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Conditions Defining Invasion of Privacy Personality (versus performance) No permission obtained before disclosure Unfavorable consequences External disclosure ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Honesty Testing Employee theft is a major problem Costs employers over $40 billion per year Up to 3/4ths of employees have stolen Polygraph Detects physiological changes Is largely prohibited as a screening tool Validity is questionable Paper-and-Pencil Tests Overt Personality-based ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Treatment of Alcoholism Alcoholism presents medical and job problems Costs employers more than $10 billion annually Absence rates are two to four times that of other employees Alcoholics are in all industries, occupations, and job levels The job environment can contribute to the problem, as can personal habits and problems ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Drug Abuse Can cause serious problems for: The employee The employer Other employees Customers and the general public Costs Related to Drug Abuse Employee theft to support habits costs billions Absentee rates can be up to 16 times higher Accident rates are 4 times higher Lost productivity and additional health costs are as high as $70 billion annually ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Genetic Testing Genetic testing is a more aggressive tool than genetic monitoring Positive uses of genetic testing information: Moving susceptible employees to safer areas Health warnings Development of protective measures Negatives Discrimination based on results Impacts individual privacy and opportunity ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Discrimination EEO issues related to privacy: Sexual harassment AIDs ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Discipline Types of Discipline Preventive Corrective Objectives Reforming the offender Deterring others from similar actions Maintaining consistent, effective group standards Progressive Discipline Stronger penalties for repeated offenses ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Quality of Work Life The favorableness or unfavorableness of a total job environment for people Open communications Equitable reward systems Concern for employee job security and careers A caring supervisor Participation in decision making Development of employee skills Reduction of occupational stress More cooperative labor-management relations ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Job Enlargement versus Enrichment ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Job Enrichment Benefits ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Core Job Characteristics and Work Outcomes ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Enrichment Increases Motivation Enriched jobs increase motivation provided that employees: Have adequate job knowledge and skills Desire to learn, grow, and develop Are satisfied with their work environment Most enrichment attempts have been conducted in manufacturing operations ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Social Cues Affect Perceptions ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Contingency Factors Affecting Enrichment Job enrichment does not apply to all types of jobs The costs may be too great in relation to rewards Some workers may not want an enriched job It may upset pay relationships Expensive equipment may not be adaptable The program may unbalance the production system Supervisory or staff roles may be reduced Union opposition ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

The Individual’s Responsibilities Individual responsibilities to the organization: Honest and ethical behavior Acting productively and creatively Organizational citizenship Whistle-blowing ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Dues-Paying “Costs” that an individual pays for group acceptance and continuing membership Minimum qualifications Willingness to work without complaint Showing respect to others Not acting superior to others Performing at an above-average level Spending the appropriate amount of time on the job ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Dues-Paying Key characteristics: A perceptual phenomenon Judged by many observers Situation-specific Group’s memory of dues paid may fade Idiosyncrasy credits ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Forms of Whistle-Blowing ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

Most Likely Whistle-Blowers Workers who have observed wrongdoing Who believe it to be a serious problem Who feel that it directly affects them Conscientious people Professionals with long service Those previously recognized as good performers Those perceived to be responsive to complaints ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Mutual Trust Whistle-blowing often occurs because mutual trust has deteriorated or been broken Results in a breakdown of the psychological contract Mutual trust: Occurs over time Requires mutual understanding, emotional bonds, and trustworthy behaviors Can be broken in an instant ©2007 The McGraw-Hill Companies, Inc., All Rights Reserved