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 Satisfaction Importance Apply knowledge of organizational behavior to build better organizations Both individuals and society benefit Level of Job Satisfaction Was historically high and stable in the U.S. Only 50 percent of those currently in the workforce report job satisfaction Variables revolve around age, occupational level, and organizational size ©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

Forces For and Against Rule Bending ©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